On July 9, Arvind Fashions announced that Flipkart has acquired a minority stake in its recently-formed subsidiary, Arvind Youth Brands by making an investment of Rs 260 crore.
In a regulatory filing, Arvind Fashions Limited (AFL) said, “The Flipkart Group and Arvind Fashions (AFL) strengthened their partnership, through an investment of Rs 260 crore by Flipkart Group to purchase a significant minority stake in Arvind Youth Brands which will own the Flying Machine brand”.
The company said, “Flying Machine has been retailing on the group’s platforms of Flipkart and Myntra for more than six years”.
And added, “Through this investment, 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”.
Kalyan Krishnamurthy, Chief Executive Officer of Flipkart Group said, “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.”
The transaction involved in the deal is subject to customary conditions precedent. Metta Capital Advisors has been hired as the financial advisors to AFL for this transaction.
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.”