Flipkart Group and ABFRL enter into a strategic partnership
Desk Correspondent, abptakmaa, Kolkata, 25th Oct 2020 : 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.
Through this partnership, the Flipkart Group will strengthen the range of brands offered on its e-commerce platforms Flipkart and Myntra, deepening its relationship with ABFRL, and enhancing the range of premium international and Indian brands on offer. Flipkart’s technology prowess will enhance ABFRL’s omni-channel capabilities, enriching customer experiences while continuing to provide access to premium loyalty programs and affordability constructs for which Flipkart is known.
Speaking on this development, Kalyan Krishnamurthy, CEO, Flipkart Group, said, “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 partnership with ABFRL, we will work towards making available a wide range of products for fashion-conscious consumers across different retail formats across the country. We look forward to working with ABFRL and its well established and comprehensive fashion and retail infrastructure as we address the promising opportunity of the apparel industry in India.”
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. Publicity : Edelman.
