Flipkart has invested ₹1,500 crore for a 7.8% share in Aditya Birla Fashion and Retail Limited, the company announced on Friday. Flipkart said this deal will allow it to add more brands on its e-commerce platforms Flipkart and Myntra. Aditya Birla Fashion and Retail owns and operates retail apparel chains like Pantaloons and Forever 21, along with a number of apparel brands such as Allen Solly and Peter England. In a regulatory filing on Friday, Aditya Birla Fashion and Retail said that as part of the deal, it had entered into a commercial agreement with Flipkart to sell its various fashion brands.
Flipkart said the deal will also aid Aditya Birla Fashion and Retail’s omni-channel capabilities. It will use the investment money to strengthen its balance sheet. The company is also planning to scale-up in fashion categories such as innerwear/ athleisure, casual wear, and ethnic wear, among others. TechCrunch pointed out that Aditya Birla Fashion and Retail had ventured into the apparel e-commerce business with its platform Abof, albeit with little success.
It was earlier reported that both Flipkart and rival Amazon were interested in investing in the conglomerate’s retail fashion business.
Earlier this month, Amazon sued the Future Group — which operates Big Bazaar — accusing it of breach of contract after the latter announced it would sell most of its retail, wholesale and logistics businesses to Reliance Retail. In 2019, Amazon had purchased a 49% stake in Future Coupons, the Future Group’s promoter entity, for ₹1,500–2,000 crore.
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