Arvind Fashions (AFL) on Thursday said Flipkart Group has invested Rs 260 crore to pick a minority stake in its subsidiary Arvind Youth Brands. Arvind Youth Brands is Arvind Fashions' recently-formed subsidiary which will own the Flying Machine brand.
"The Flipkart Group and Arvind Fashions (AFL) strengthened their partnership, through an investment of Rs 260 crore by Flipkart Group to purchase a significant minority stake in... Arvind Youth Brands which will own the Flying Machine brand," AFL said in a regulatory filing.
Arvind Fashions said Flying Machine has been retailing on the group's platforms of Flipkart and Myntra for more than six years.
"Through this investment, the Flipkart Group and Arvind Fashions will work collaboratively to identify opportunities and synergies to innovate and develop products with strong value propositions at attractive price points," the company added.
Kalyan Krishnamurthy, Chief Executive Officer, Flipkart Group, said, "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 been built over the last few decades."
The transaction is subject to customary conditions precedent. Metta Capital Advisors acted as the financial advisors to AFL for this transaction.J Suresh, Managing Director and Chief Executive Officer of Arvind Fashions, said, "The partnership with the Flipkart Group will help us accelerate our online growth strategy as we focus our efforts on developing an omni-channel retail approach for Arvind Youth Brands and Flying Machine."