Flipkart acquires minority stake in Arvind Fashion subsidiary for Rs 260 crore
By Retail4Growth Team | July 22, 2020
Flipkart has invested Rs 260 crore to pick a minority stake in Arvind Fashions’ recently-formed subsidiary Arvind Youth Brands.
Arvind Fashions (AFL) recently announced that its subsidiary Arvind Lifestyle Brands has received Rs 260 crore from Flipkart India to pick a minority stake in another group firm Arvind Youth Brands. Arvind Youth Brands is Arvind Fashions’ recently-formed subsidiary which will own the Flying Machine brand.
After completion of the customary conditions precedent, Arvind Lifestyle Brands Ltd, a subsidiary of the company, received Rs 260 crore from Flipkart India as consideration for the sale of a significant minority stake in Arvind Youth Brands, another subsidiary of the company,” Arvind Fashions said in a BSE filing.
According to a PTI report; Earlier this month, Arvind Fashions had informed exchanges that Flipkart Group had invested Rs 260 crore to pick a minority stake in its subsidiary Arvind Youth Brands.
Flying Machine has been retailing on the group’s platforms of Flipkart and Myntra for more than six years.
India is considered to be the world’s second largest internet market with a range of players in the online category. Over the years Flipkart has managed to stay ahead of the game through various acquisitions in terms of Myntra and Jabong and now through its investment in Arvind Fashion’s ‘Arvind Youth Brands’.