Bengaluru: Flipkart has entered into a multi-year partnership with Google Cloud to help improve its overall customer service using Google's data centres and services.
The deal will help the Indian ecommerce marketplace take more load during peak purchase seasons and advance the pace of new product development to expand more into tier-2 and tier-3 cities, Flipkart said in a statement on Tuesday.
Google Cloud will also improve Flipkart's data analytics, which can help the company better analyse traffic and transactional data, get better real-time insights into customer purchasing and shopping behaviour, identify trends and patterns with increased demand, and create more personalised recommendations to shoppers.
Cloud helps companies build products and services without having to maintain servers and data centres of their own.
“Our strategic alliance with Google Cloud will enable us to accelerate our digital transformation, power productivity and advance our innovation agenda,” said Jeyandran Venugopal, chief product and technology officer of Flipkart “We are excited by Google Cloud’s unique strengths and experience in AI/ML and its proven scalability and security, all of which will be critical in our next phase of growth.”
The partnership will also help Flipkart work better in the hybrid work model, the company said.
“Flipkart’s growth in India has been powered by its digital-first strategy and forward thinking approach to cloud technology,” said Bikram Singh Bedi, managing director of Google Cloud. “As the company continues to scale and grow its ecommerce platform, we will work together to drive technological innovations and help Flipkart drive breakthrough businesses in the future.”
This is not an exclusive deal as Flipkart had signed a similar deal with Microsoft Azure in 2017.
“We will have a hybrid cloud strategy,” a company insider said on condition of anonymity. “We will be across data centres and one or multiple cloud providers.”
The partnership comes at a time when Flipkart is scaling up many of its businesses this year.
Flipkart group CEO Kalyan Krishnamurthy in an interview with ET on January 4 had said the group would scale up verticals like grocery and hyperlocal deliveries along with its value-focused platform Shopsy, after having invested in these verticals over the past year or so. The company is estimated to have spent $400-500 million on mergers and acquisitions (M&As) over the last 12-18 months as it bought out travel booking site Cleartrip, online pharmacy SastaSundar, and, along with Walmart, invested $145 million in Ninjacart, a supply chain startup for fresh produce.
Its closest rival Amazon India uses its own cloud service called Amazon Web Services, or AWS. The service was born out of Amazon’s ecommerce business as the company had excess capacity in its servers after the peak purchase season. The excess capacity was then sold as service to many tech companies around the world. The AWS business has become one of the most lucrative businesses for Amazon, contributing $62 billion to Amazon's total revenue for FY21.