Walmart-owned Flipkart invested US$ 35M in Indian fashion brand Arvind Fashions Ltd.’s subsidiary Arvind Youth Brands on 9 July. Flipkart is looking to strengthen its online fashion portfolio.
The Flipkart already has a great dominance over India’s fashion e-commerce market as it had earlier acquired Myntra and Jabong as well. Flipkart and Arvind Fashions wish to serve the demands of the “fashion-conscious youth”. Arvind Fashions selling its products on Flipkart for 6 years now.
Flipkart was founded in 2017 by Sachin Bansal and Binny Bansal. It also owns the mobile payments service company PhonePe. U.S.-based retail chain Walmart acquired 77% controlling stake in Flipkart for US$ 16B in August 2018, after which Flipkart’s value increased to US$ 20B.
Arvind Youth Brands owns the denim brand Flying Machine. It also manufactures and carries apparel of some of the international brands like U.S. Polo Assn., Arrow, GAP, Tommy Hilfiger, Calvin Klein, and Aeropostale among other local and international firms.
Arvind Fashions was established in 1931. It has over 27 leading global brands in India. Sanjay S. Lalbhai is the Chairman of the company and J. Suresh is the Managing Director and CEO. It is the flagship company of the Lalbhai Group. With more than 25,000 employees, the company headquartered in Ahmedabad, Gujarat, India. Arvind Ltd runs three clothing and accessories retail chains – The Arvind Store, Unlimited, and Megamart, which stocks company brands. Due to the pandemic, online shopping has become the only option for buyers across India. It is also one of India’s largest producers of fire protection fabrics. “The partnership with the Flipkart Group is aimed at helping Arvind Fashions accelerate its online growth strategy”, said J. Suresh.
Flipkart invests in Arvind Fashions
Flipkart’s subsidiary Myntra has been working closely with a number of brands to help them in online sales, especially at a time when there is a huge demand slump.
“Through this investment, we look forward to partnering with the team at Arvind Youth Brands to continue to grow the market for its portfolio of products and enhance the strong brand equity that has built over the last few decades,” said Kalyan Krishnamurthy, CEO of Flipkart.
In addition, Arvind Fashion looking to take advantage of Flipkart’s strong online presence in the Fashion Industry. Through this acquisition, Flipkart and Myntra, the company’s preferred online partner for the Flying Machine brand. Along with online sales, they look forward to continuing to grow their offline sales through department stores and multi-brand stores.
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