E-commerce marketplace Flipkart has agreed to invest Rs 2.6bn ($34.6m) in Arvind Youth Brands, a subsidiary of India-based fashion group Arvind Fashions.
Arvind Fashions manufactures and carries clothing brands such as Arrow, Tommy Hilfiger, Calvin Klein and Gap, and also owns value fashion retail chain Unlimited.
Arvind Youth Brands is specifically responsible for managing the Flying Machine brand, which consists of mens, womens and childrenswear, as well footwear and accessories such as sunglasses and backpacks.
Flying Machine products have been available through Flipkart’s online marketplaces for six years and the corporate will partner Arvind Youth Brands to jointly explore market opportunities.
The corporate will acquire a minority stake of undisclosed size in the company through the transaction. Metta Capital Advisors was financial adviser for Arvind Fashions on the deal.
Flipkart chief executive Kalyan Krishnamurthy said: “Flying Machine is a brand that is known in households across India, popular with the youth and synonymous with value and style.
“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.”
Image courtesy of Arvind Youth Brands.
