Flipkart Group and ABFRL enter into a strategic partnership
Aim to strengthen omni-channel capabilities and enhance the consumer fashion experience
The Flipkart Group and Aditya Birla Fashion and Retail Limited (“ABFRL”) today announced a new strategic partnership aimed at enhancing the consumer fashion experience. Through an investment of INR1,500 crores, Flipkart Investments will acquire a ~7.8% stake in ABFRL, as the companies partner to leverage synergies in the fashion segment.
ABFRL will use this capital to strengthen its balance sheet and propel its growth ambition with renewed vigour. The company plans to scale-up its play in emerging high-growth fashion categories viz. innerwear/ athleisure, casual wear and ethnic wear, establishing these as the new engines of growth for the company. Furthermore, ABFRL will accelerate the execution of its large-scale digital transformation strategy that will deepen its consumer connect and augment its backend capabilities; positioning it amongst the most comprehensive omni-channel fashion players in the country.
Commenting on the deal, Mr. Ashish Dikshit, MD of ABFRL, said, “We look forward to this partnership with Flipkart Group, and our collective journey to delight customers of a young and aspirational India. Given the complementary strengths of ABFRL and Flipkart Group, this partnership has the potential to dramatically accelerate the growth of the apparel industry in India and reshape apparel commerce. This deal also provides a tremendous opportunity to build scale of existing brands and expand its brand portfolio into emerging consumer segments.”
The Transaction is subject to regulatory approvals.