Flipkart To Invest 1500 Cr For 7.8 Per Cent Stake In Aditya Birla Fashion And Retail Limited (ABFRL)

 Flipkart to invest 1500 Cr for 7.8 per cent stake in Aditya Birla Fashion and Retail Limited (ABFRL)

Leading e-commerce retailer Flipkart is surpassing their competitor Amazon, as it will invest Rs. 1,500 crore for 7.8 per cent stake in Aditya Birla Fashion and Retail Limited (ABFRL).

Both the e-commerce giants had recently approached ABFRL for a minority stake in the fashion retailer. ABFRL owns clothing brands like Louis Philippe, Van Heusen, Allen Solly, Peter England, Pantaloons, etc. having network of 3004 stores.

Sources also shared that the two companies wanted to win the battle, especially at a time when offline retailers, mainly in the fashion and clothing industry, had a negative impact by the global COVID-19 epidemic and its subsequent lockdown. In this situation Flipkart had gained the higher chances of grabbing this opportunity.

“At the Flipkart Group, we are focused on building new partnerships that will help us meet the demands of the discerning Indian consumer who seek quality and value. Through this transaction with ABFRL, we will work towards making available a wide range of products for fashion-conscious consumers across different retail formats across the country." says Kalyan Krishnamurthy, CEO, Flipkart Group.

ABFRL said that with this transaction, the company would have executed a capital raise of Rs. 2,500 crore since 1 April 2020.

In July, Flipkart Group invested Rs 260 crores to buy a minority share of Arvind Fashion’s subsidiary Arvind Youth Brands for about 27% stake.

Source - https://m.economictimes.com