The Competition Commission of India approved on Tuesday Google parent firm Alphabet Inc's proposed investment of around $350 million to buy a minority stake in Flipkart Pvt.
The fair trade watchdog gave its nod to Shoreline International Holdings LLC, a wholly owned subsidiary of Alphabet, to acquire shares of the Walmart-owned e-commerce major.
Shoreline is a holding company and does not own or operate any Google products or services, according to the notice.
In May, Flipkart had announced it would raise funds from Google as part of its latest funding round, led by Walmart. Google will be coming onboard as a minority investor, subject to the receipt of regulatory and other customary approvals by both parties, according to a statement.
Google will put in about $350 million as part of the $1-billion funding round, at a valuation of roughly $36 billion, according to reports. Walmart has already invested $600 million as part of the round.
"Google's proposed investment and its cloud collaboration will help Flipkart expand its business and advance the modernisation of its digital infrastructure to serve customers across the country," it said.
The funding from Google, as part of a larger round by Walmart, comes at a time when the e-commerce firm is looking to foray into quick-commerce, taking a punt at grabbing market share from incumbents Zepto, Swiggy Instamart and Zomato's Blinkit.
The funding round could also be Flipkart's last before the US retail giant commences the listing process for the Bengaluru-based company. The IPO remains "our long-term ambition, and it will come at the right time", a spokesperson had told NDTV Profit earlier.
Flipkart was valued at $35 billion as of Jan. 31, 2024, based on equity transactions carried out by Walmart.
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