Flipkart To Buy 8% Stake In Aditya Birla’s Fashion Unit For ₹ 1,500 Crore

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Walmart Inc’s Flipkart will buy a 7.8 per cent stake in Aditya Birla Fashion and Retail Ltd for ₹ 1,500 crore ($204 million), the fashion retail company said, sending its shares up 6 per cent on Friday.

The investment comes at a time when Amazon.com Inc, billionaire Mukesh Ambani-led Reliance Industries and Flipkart are in a race to gain market share in India’s fast-growing online market for food and groceries.

“Fashion retail in India is set for robust long-term growth due to strong fundamentals of a large and growing middle class… Rapid growth of technology infrastructure will further accelerate this process,” Aditya Birla Group Chairman Kumar Mangalam Birla said.

With the COVID-19 pandemic keeping most people indoors, Indians are turning to online platforms for all purchases from bread to phones to clothes.

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