Flipkart To Exit Flying Machine Parent In INR 135 Cr Deal

SUMMARY

Once the transaction is complete, Flying Machine will become a wholly owned subsidiary of Arvind Fashion

Ecommerce major Flipkart invested in Flying Machine in 2020, when it bought a minority stake for INR 260 Cr

This adds on to Flipkart’s recent restructuring exercises in the run up to its IPO

Adding to its selling spree in recent months, ecommerce major Flipkart will now be selling its entire stake in clothing brand Flying Machine’s parent Arvind Youth Brands Pvt Ltd (AYBPL) to Arvind Fashion.

In an exchange filing today, Arvind Fashion said that it will acquire Flipkart’s shareholding in the subsidiary, 31.25% to be precise, comprising of 1 equity share of INR 10 each and 58.96 Compulsory Convertible Preference Shares (CCPS) of INR 100 for an aggregate of INR 135 Cr.

Once the transaction is complete, AYBPL will become a wholly owned subsidiary of Arvind Fashion. Important to highlight that the Walmart-owned ecommerce major invested in Flying Machine in 2020, when it bought a minority stake for INR 260 Cr to increase its presence on ecommerce platforms.

However, over the past three fiscal years, Flying Machine’s turnover has been steadily declining. From INR 472.4 Cr in FY23, the brand’s FY25 turnover has diminished by about 10% to INR 432.2 Cr.

“Our relationship with the Flipkart group will continue ensuring consumers can still shop Flying Machine on its platforms. The brand will also be available to consumers on other digital channels and portals,” Arvind Fashions’ managing director and CEO Amisha Jain said.

This adds on to Flipkart’s recent restructuring exercises in the run up to its IPO. Over the past few months, Flipkart has divested its entire stake in listed logistics new-age tech company Black Buck along with offloading its 6% holding in Aditya Birla LifeStyle Brands for INR 998 Cr. The divestments are the group’s efforts to streamline its operations and strengthen its balance sheet ahead of its public listing attempts in India.

While the ecommerce giant is targeting a public listing for 2026, its IPO plans are still at a very nascent stage. Most recently, it received NCLT approval to merge eight Singapore-incorporated entities into its Bengaluru-headquartered operational arm to eventually “reverse-flip” its domicile to India. It has also roped in Meta executive Dan Neary to its board of directors to aid in the transition to the bourses.

On the financial front, Flipkart’s ecommerce arm, Flipkart Internet’s operating revenue rose 14% to INR 20,493 Cr in FY25 from INR 17,907 Cr in FY24. At the same time, its net losses declined 37% to INR 1,494 Cr in the fiscal under review compared to INR 2,359 Cr in the year ago period.