Amazon and Flipkart in talks with Aditya Birla Fashion and Retail Ltd. to make an Investment Plan

By Shravan Kanade Published on October 22, 2020, 14:41 IST Last updated October 22, 2020, 22:37 IST

Aditya Birla Fashion and Retail Ltd.(ABFRL) is in talks with E-commerce giants, Amazon, and Flipkart seeking potential investment. The company is suffering from the adverse financial effect of COVID-19 and is been in the market to seek investments either through a hive-off or partnerships, thus the company is looking towards Amazon and Flipkart for potential investment.

“ABRFL has been struggling from the impact of COVID and has been in the market for some time to raise new funds. It has been reaching out to investors as well as brands for a potential investment,” said the company spokesperson aware of the discussions.

ABFRL is a fashion retail company having several offline stores in India but because of the COVID-19 lockdown, the company suffered financial losses and thus it decided to take a step towards E-commerce retail. Last year, ARFL acquired ethnic apparel and lifestyle retailer Jaypore for ₹110 crore. The company is having a good offline network of stores that can help Amazon and Flipkart to provide faster delivery to customers.

“For Flipkart, this will be a part of their strategy to form deep partnerships with offline retailers to come up with new products, basis the shopping trends that they see on their platform, as several new to e-commerce customers are flocking on to online commerce this festival season,” stated a spokesperson from the company.