Flipkart has picked up the 7.

8% stake for an aggregate of Rs 1,500 crore of

aditya birla fashion, which adds to the Rs 1,000 crore that Aditya Birla
Fashion raised through a rights issue earlier this year
According to the company, the deal will result in Aditya Birla Fashion
“aggressively accelerating” its omni-channel strategy through which it will
expand the reach of its portfolio brands. Flipkart’s investment will also bring
its technological know-how – through its various platforms like digital money
app PhonePe, and e-commerce platforms Flipkart and Myntra – which
according to sector experts will be crucial for a company like Aditya Birla
particularly given the transformation in the physical to online retailing
equation in the after the Covid-19. “Fashion retail in India is set for robust
long-term growth due to strong fundamentals of a large and growing middle
class, favorable demographics, rising disposable incomes and aspiration for
brands. Rapid growth of technology infrastructure will further accelerate this
process,” said Birla.
The deal will strengthen the range of brands offered on the e-commerce
company’s platforms Flipkart and Myntra and will enhance the range of
premium international and Indian brands on offer. For Flipkart the deal also
means having a strong offline partner in Aditya Birla Group to raise the stakes
in its battle with Amazon, which had invested in Future Group last year.
Currently, Aditya Birla Fashion has a network of 3,004 stores, presence across
approximately 23,700 multi-brand outlets in addition to over 6,700 point of
sales in department stores across India. Both Aditya Birla Fashion and
Flipkart will have to enter into an arrangement with a third-party seller to
expand presence of the former’s portfolio on the e-commerce platform.