Flipkart — Aditya Birla Fashion Partners, Former Invests Rs 1,500 Crore in ABFR
26 October, 2020
Flipkart has invested a whooping ₹1,500 crore for a minority stake of 7.8 percent in Aditya Birla Fashion and Retail Ltd (ABFRL) at Rs 205 per share. The investment comes at a time when the online fashion retail market in India has big players like Amazon, Mukesh Ambani-led Reliance Industries competing for market position.
Kumar Mangalam Birla, Chairman of Aditya Birla Group said that the partnership shows the company’s determination to expand in the apparel industry. The company will use this money to leverage its balance sheet and scale-up its business.
The strategic deal offers Flipkart a network of pan India stores and a range of powerful brands. While ABFRL walked away with fresh capital at a premium price and now the brand’s products will get better margin and visibility on the e-commerce platform Flipkart and Myntra.
Hence, the win-win deal promises to benefit both parties in a competitive market. The fashion retail market is expecting to see more strategic partnerships being forged in the next few months.
