Leading e-commerce retailer Flipkart has won the race against Amazon, as it will invest Rs. 1,500 crore for a 7.8 per cent stake in Aditya Birla Fashion and Retail Limited (ABFRL).
Both the online giants had recently approached ABFRL for a minority stake in the fashion retailer, three individuals directly aware of the discussions had revealed on the request of anonymity.
The sources further shared that the two companies wished to win this battle, especially at a time when offline retailers, particularly in fashion and apparel segment, have been badly impacted by the global pandemic of COVID-19 and the subsequent lockdowns.
The sources had also stated that Flipkart had higher chances of grabbing this opportunity.
“Through this transaction with ABFRL, we will work towards making available a wide range of products for fashion-conscious consumers across different retail formats across the country,” shared Kalyan Krishnamurthy, CEO, Flipkart Group.
ABFRL said that with this transaction, the company would have executed a capital raise of Rs. 2,500 crore since 1 April 2020.
ABFRL owns brands including Allen Solly, Pantaloons and Peter England.