Amazon and Flipkart are currently eyeing a stake in Aditya Birla Fashion and Retail, which owns brands like Pantaloons, Allen Solly and Peter England.
The ecommerce marketplace giants are said to be separately in talks to acquire a minority stake in the company, which has a network of 3,004 stores and a presence across 23,700 multi-brand outlets, with 6,700 points of sales in department stores across India. Sources aware of the development highlighted that Flipkart may have an edge as talks with Amazon have fallen through. Aditya Birla Fashion and Retail reported INR 8,788 Cr in revenue in the financial year 2020 and has a market cap of around INR 13,000 Cr.
Walmart-owned Flipkart is looking to pick nearly 10-15% stake in the retailer’s fashion portfolio and onboard it as a strategic partner.Flipkart had also announced a House of Brands initiative to bring together Flipkart Fashion Originals, Myntra Fashion Brands and Myntra Brand Accelerators under one umbrella. The business is led by Manohar Kamath, who will report to Myntra CEO Amar Nagaram.