Google is contributing $350 million to Flipkart as a part of an almost $1 billion funding round.

Flipkart, owned by Walmart, has concluded a funding round of around $1 billion, which includes a $350 million investment from Google. This was announced by Flipkart on Friday, without revealing the deal's size or the company's valuation. However, sources indicate Flipkart's valuation is now between $35-36 billion, up from $33 billion last year after the separation of PhonePe from the group.

Walmart, holding an 85% stake in Flipkart, contributed $600 million to the fundraising, which started last year. This fundraising, reported by ET on December 21, is notable as the largest by a consumer internet firm during the current funding downturn. Unlike many recent deals, which involved secondary share sales, Flipkart's raise is a primary cash infusion, meaning the capital will go directly into the company.

This marks the first significant backing from a major strategic firm since Walmart's acquisition of Flipkart in 2018. Flipkart's move into quick commerce comes as rivals like Zepto, Zomato’s Blinkit, and Swiggy Instamart expand beyond groceries. According to group CEO Kalyan Krishnamurthy, grocery sales grew by 50% in 2023 compared to 2022. Some of the new funds will support Flipkart's travel division Cleartrip and social commerce platform Shopsy. The company’s main revenue drivers remain smartphones, fashion, and large appliances.

In recent months, Flipkart has undergone major restructuring, including senior exits and workforce reductions, to control costs. ET reported on May 13 that Flipkart is considering relocating its domicile from Singapore to India, potentially linked to its future IPO plans. Although an IPO is unlikely this year, Walmart executives mentioned they are assessing the optimal timing due to Flipkart's strong performance.

Krishnamurthy noted in January that the company is nearing profitability, focusing on reducing operating expenses while growing the business, as it competes with Amazon India, Meesho, Tata Neu, and Reliance’s JioMart. While Flipkart has several operational units, its marketplace is the most crucial, demonstrating the company's scale. Flipkart also launched its own Unified Payments Interface (UPI) platform after spinning off PhonePe as a separate Walmart-backed entity in late 2022.