CCI approves Google's investment in Walmart-backed Flipkart
Google joined Flipkart's captable as a minority investor in May earlier this year with an infusion of $350 million to expand its cloud collaboration.
The Competition Commission of India (CCI) on Tuesday cleared Google's investment in Walmart-backed Flipkart.
"Commission approves transaction involving subscription of shares of Flipkart Private Limited by Shoreline International Holdings LLC," stated the order.
Shoreline International is a wholly-owned subsidiary of the Wall Street-listed Alphabet, which does not own or operate any Google products and services.
Earlier in May, Google joined Flipkart's extended funding round as a minority stakeholder along with Walmart with an infusion of $350 million. In total, the domestic marketplace raised $950 million, taking its valuation to $36 billion.
Google's infusion was to aid Flipkart focus on existing key categories like Cleartrip and Shopsy, as well as new avenues in fintech and quick commerce.
“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,” Flipkart had said in a statement.
US-based retailer Walmart has been banking on Flipkart as a strong bet. According to Tracxn, it currently owns an 80.8% stake in the company.
In its latest quarterly earnings, Walmart reported 50% YoY growth in its international advertising vertical, mainly driven by Flipkart. Its Q3 earnings were positively impacted by Flipkart's flagship Big Billion Days sale event, and it expects to see the same momentum in the last quarter.
Last week, Flipkart appointed Walmart executive Dan Bartlett to the company's Board.
Edited by Suman Singh