Google is making a significant investment of nearly $350 million in Flipkart, the Indian e-commerce powerhouse owned by Walmart.

This move marks Google as the latest high-profile backer of the Bengaluru-headquartered startup. Along with the financial investment, Google will provide Flipkart with cloud services as part of the deal, according to a brief statement from Flipkart on Friday.

This investment by Google is part of a larger funding round initiated by Flipkart in 2023, which aims to raise nearly $1 billion. Walmart has been leading this round, having already invested $600 million late last year. Microsoft is also among the notable investors in Flipkart.

With this new investment, Flipkart's valuation has reached $36 billion. The company dominates the Indian e-commerce market, serving hundreds of millions of consumers, especially in smaller cities and towns. Flipkart also owns Myntra, a prominent fashion e-commerce platform, and holds approximately 48% of the Indian e-commerce market, as reported by Bernstein.

Flipkart faces competition from several key players, including Reliance Retail, Amazon, and SoftBank-backed Meesho, as well as various quick-commerce apps. Reliance Retail, operated by Mukesh Ambani, Asia’s richest man, runs the largest retail chain in India and is steadily building its own e-commerce presence. Last year, Reliance Retail was valued at $100 billion following a nearly $2 billion investment from QIA, ADIA, and KKR.

India's e-commerce market is projected to be worth $133 billion by next year, according to Bernstein. The market is witnessing the rise of challengers across different segments such as quick, social, and vertical commerce. Despite Amazon and Flipkart remaining dominant due to their strengths in categories like mobiles, consumer electronics, and appliances, India’s e-commerce landscape is expected to see the growth of specialized category winners like Blinkit (quick commerce), Meesho (tier 2+ markets), and Nykaa (vertical commerce).

Google, which reaches over half a billion people in India, considers the South Asian nation a crucial market. The tech giant announced plans to invest $10 billion in Indian businesses back in 2020. Since then, Google has invested $4.5 billion in Jio Platforms, a major telecom operator, and another $1 billion in Airtel, further solidifying its commitment to the Indian market.