Flipkart picks up minority stake in Arvind Fashions subsidiary for Rs 260 crore

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Published: July 10, 2020 7:53 AM

Through this investment, the Flipkart group and Arvind Fashions will collectively work to identify opportunities to develop products at attractive price points, the companies said in a joint statement on Thursday.

Flipkart, Arvind Fashions subsidiary, AFL, Arvind Youth Brands, Myntra platforms, Flying Machine brand, latest news on flipkartFlipkart said it will work with Arvind Youth Brands to continue to grow the market for its portfolio of products.

The Flipkart group has invested Rs 260 crore to acquire a minority stake in Arvind Youth Brands – a recently formed subsidiary of Arvind Fashions (AFL). Flipkart did not comment on the quantum of stake it acquired but said it is “significant”.

Through this investment, the Flipkart group and Arvind Fashions will collectively work to identify opportunities to develop products at attractive price points, the companies said in a joint statement on Thursday.

Arvind Youth Brands-owned Flying Machine brand has been retailing on Flipkart and Myntra platforms for over six years. Flipkart said it will work with Arvind Youth Brands to continue to grow the market for its portfolio of products.

“The partnership with the Flipkart group will help us accelerate our online growth strategy as we focus our efforts on developing an omni-channel retail approach for Arvind Youth Brands and Flying Machine,” J Suresh, MD & CEO at Arvind Fashions, said.

The transaction is subject to customary approvals and processes. Metta Capital Advisors acted as the financial advisers to AFL for this transaction.

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