Google Cloud joins Flipkart with $350M investment, ending Azure exclusivity
Microsoft and Azure signed an exclusive cloud partnership deal in 2017
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Key notes
- Flipkart ended its exclusive cloud deal with Azure and signed a $350 million deal with Google Cloud.
- This is part of a $1 billion funding round led by Walmart, which invested $600 million.
- Flipkart remains a top Indian e-commerce player, valued over $33 billion, despite fierce competition.
Microsoft Azure and Walmart-owned Flipkart, an Indian e-commerce startup, seem to have ended their exclusive cloud partnership. The latter has now signed a deal with Microsoft’s rival, Google Cloud, in an investment agreement reportedly worth $350 million.
TechCrunch reported, via Berstein analysts, that as part of a nearly $1 billion funding round led by Walmart, Google will provide Flipkart with cloud services. Walmart has poured at least $600 million since the funding started last year.
“Amazon and Flipkart remain leaders driven by category strengths in mobiles, consumer electronics and appliances. However, unlike large horizontal winners in global e-commerce market, India is likely to see category winners like Blinkit (quick commerce), Meesho (tier 2+ markets) and Nykaa (vertical commerce) as they scale up,” said the analysts.
The Indian e-commerce startup has had a strong presence in the country since 2007, and it is now valued at over $33 billion. Though, it faces fierce competition from other companies like Reliance Retail, Meesho, and Amazon.
In 2017, Microsoft and Flipkart announced a strategic partnership where Flipkart will use Microsoft Azure as its “exclusive public cloud platform.” At that time, Flipkart used Azure’s AI and analytics tools to enhance merchandising, marketing, and customer service, offering more personalized customer experiences.
“At Microsoft, we aim to empower every Indian and every Indian organization with technology and key to this is forging strategic partnerships with innovative companies like Flipkart,” Microsoft’s boss, Satya Nadella, said at that time.
