Flipkart sells entire 31.25% stake in Flying Machine parent to Arvind Fashions for Rs 135 crore

Walmart-owned ecommerce giant Flipkart is exiting its investment in Flying Machine as part of a broader portfolio clean-up ahead of its proposed IPO, with Arvind Fashions set to acquire the ecommerce major’s entire stake in the brand’s parent entity.

Arvind Fashions Ltd said it will acquire Flipkart Group’s 31.25% holding in Arvind Youth Brands Pvt Ltd (AYBPL) for Rs 135 crore, making the company a wholly owned subsidiary.

The acquisition will be executed through a share purchase agreement with Flipkart India Pvt Ltd and is expected to close on December 29, 2025, the company said in a regulatory filing.

The transaction involves the purchase of one equity share of Rs 10 each and 58,95,852 compulsory convertible preference shares (CCPS) of Rs 100 each, representing Flipkart’s entire stake in AYBPL on a fully diluted basis.

AYBPL operates in the wholesale and retail of apparel and accessories under the Flying Machine brand.

Flipkart had invested Rs 260 crore in Arvind Youth Brands in 2020, acquiring a minority stake to strengthen the brand’s presence on ecommerce platforms. Since then, Flying Machine has positioned itself as a digital-first casual wear brand, supported by its partnership with Flipkart. Arvind Fashions said the collaboration helped the brand emerge as one of the leading youth-focused casual wear labels on online platforms.

“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,” Amisha Jain, managing director and CEO of Arvind Fashions, said.

Despite its digital traction, Flying Machine’s financial performance has softened in recent years. The brand’s turnover declined from Rs 472.4 crore in FY23 to Rs 432.2 crore in FY25, a drop of about 8.5% over the period.

For Arvind Fashions, the acquisition consolidates ownership of one of its legacy brands and allows sharper strategic focus on growth across channels. Flying Machine is an Indian denim brand with a history spanning more than four decades and has been present on digital platforms for over a decade, with reach across metros and tier-II towns. Arvind Fashions houses a portfolio of apparel brands including U.S. Polo Assn., Arrow, Tommy Hilfiger, Calvin Klein and Flying Machine.

The stake sale is part of a wider divestment and restructuring exercise underway at Flipkart as it prepares for an eventual initial public offering in India. In recent months, the Walmart-owned ecommerce company has sold its entire stake in listed logistics technology firm BlackBuck and offloaded its 6% holding in Aditya Birla Lifestyle Brands for Rs 998 crore.

Flipkart is targeting a public listing around 2026, though its IPO plans remain at an early stage. As part of its preparation, the company has received approval from the National Company Law Tribunal to merge eight Singapore-incorporated entities into its Bengaluru-headquartered operating arm, a step towards reversing its domicile to India. It has also appointed ex-Meta executive Dan Neary to its board to support the transition.

Financially, Flipkart Internet, the group’s ecommerce arm, reported a 14% increase in operating revenue to Rs 20,493 crore in FY25 from Rs 17,907 crore in FY24. Net losses narrowed 37% year-on-year to Rs 1,494 crore during the same period, compared with Rs 2,359 crore a year earlier.