[Funding alert] Flipkart invests Rs 260 crore in Arvind Fashion subsidiary to pick up minority stake
India’s leading ecommerce marketplacehas announced an investment of Rs 260 crore into the subsidiary of one of the country’s leading apparel brand Arvind Fashion Limited (AFL) to pick up a minority stake.
In a statement on Thursday, Flipkart said it would purchase a significant minority stake in Arvind Youth Brands, a subsidiary of AFL and which owns the Flying Machine brand.
“This investment builds on the long-standing engagement between the two organisations that have been working together for several years to address the demands and needs of the fashion-conscious youth in India,” the statement said.
Flying Machine is one of the leading denim brands in country and falls in the value purchase category. This product has been retailing on the Flipkart and its fashion apparel arm – Myntra for more than six years.
Speaking on the investment, Kalyan Krishnamurthy, Chief Executive Officer, Flipkart Group, said, "Flying Machine is a brand that is known in households across India, popular with the youth and synonymous with value and style. Through this investment, we look forward to partnering with the team at Arvind Youth Brands to continue to grow the market for its portfolio of products and enhance the strong brand equity that has been built over the last few decades."
According to the press statement, the Flipkart Group and Arvind Fashions will work collaboratively to identify opportunities and synergies to innovate and develop products with strong value propositions at attractive price points.
J Suresh, Managing Director and Chief Executive Officer of Arvind Fashions, said, "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.”
The investment by Flipkart reveals the importance of apparel in the Indian ecommerce market which is estimated to be second largest selling category after mobile phones. Flipkart has made couple of investments in the apparel segment which includes the acquisitions of Myntra and Jabong brands.
Edited by Javed Gaihlot