Flipkart Group invested $35 million in Arvind Fashions for a significant minority stake in one the decades-old Indian firm’s subsidiaries as the Walmart -owned firm looks to tighten its grip on fashion apparels in the world’s second largest internet market.
Through acquisition of Myntra and Jabong over the years, Flipkart has already established dominance in India’s fashion e-commerce market. The company is now acquiring a stake in Arvind Youth Brands, which operates Flying Machine brand in India.
The new investment strengthens their partnership as they look to serve demands and needs of the “fashion-conscious youth” in India.The investment comes at a time when both Flipkart and Amazon have been expanding their private labels ecosystem in India. And by courting Arvind Fashions, Flipkart could look to replicate a similar strategy in the fashion space.
The partnership with the Flipkart Group is aimed at helping Arvind Fashions accelerate its online growth strategy, said J. Suresh, managing director and chief executive of Arvind Fashions.