Flipkart fashions new front in Amazon fight

Walmart Inc.’s Flipkart unit on Friday agreed to buy a 7.8% stake in Aditya Birla Fashion and Retail Ltd (ABFRL) for Rs 1,500 crore, a move that will help the online retailer consolidate its position in the apparel business with access to brands such as Allen Solly and Van Heusen, as it battles Amazon for dominance in India.

The deal will help Aditya Birla Fashion cut its debt and expand into new apparel categories. The funds will be raised at Rs 205 per share, the company said in a statement.

Flipkart, which also operates India’s largest online fashion marketplace Myntra, will work closely with Aditya Birla Fashion, for sales and distribution of its brands.