Tech majors Microsoft and Flipkart announced on Monday that they were entering a strategic partnership. As part of the tie-up, the Indian e-commerce company will get on Microsoft’s Azure cloud computing platform and also use its Artificial Intelligence technology in an effort to build on its sales. Microsoft Chief Executive Officer Satya Nadella and Flipkart head Binny Bansal made the announcement at an event in Bengaluru.
Nadella said he has “always been an admirer of what Flipkart has done, in not only starting e-commerce, but now in payments and logistics,” according to Mint. He also suggested there would be greater collaboration between the two companies in the future. Bansal added that it would be fruitful for the two to combine their “strength and knowledge of technology”.
The tie-up is being seen as an effort by Flipkart to boost its brand in the face of repeated devaluations. After a few years of phenomenal growth, Flipkart has struggled against competition after Amazon entered the Indian market. In 2016, it posted a loss of Rs 2,306 crore, though it’s revenue grew by 140%. In March 2016, investor Morgan Stanley cut Flipkart’s valuation by 27% to $11 billion. The company is also believed to have struggled to raise more funds in fresh rounds.