Flipkart to Exit Flying Machine Parent After Selling 31% Stake to Arvind Fashion

Ecommerce giant Flipkart continues its divestment drive and is set to exit Arvind Youth Brands Pvt Ltd, the parent of apparel label Flying Machine, by selling its entire stake to Arvind Fashion. 

The company, in an exchange filing, announced that it will acquire Flipkart’s shareholding in the subsidiary, 31.25% to be precise, comprising of 1 equity share of ₹10 each and 58.96 Compulsory Convertible Preference Shares (CCPS) of ₹100 for an aggregate of ₹135 crore. 

Once the deal is finalised, Arvind Youth Brands Pvt Ltd (AYBPL) will become a fully owned subsidiary of Arvind Fashion. 

"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," said Arvind Fashions Ltd (AFL) Managing Director & CEO Amisha Jain.

Notably, the Walmart-backed ecommerce giant had first invested in Flying Machine in 2020, acquiring a minority stake for ₹260 crore to strengthen its presence on online platforms.

On the financial front, Flying Machine’s revenue has shown a consistent downward trend over the past three fiscal years, falling from ₹472.4 crore in FY23 to ₹432.2 crore in FY25, a decline of roughly 10%.

Flipkart’s Selling Spree

This move comes amid Flipkart’s broader restructuring ahead of its IPO. In recent months, the ecommerce giant has also sold its entire stake in listed logistics tech firm BlackBuck and offloaded its 6% holding in Aditya Birla Fashion & Retail for ₹998 crore. 

Flipkart had invested in BlackBuck in  2015, and had a 13.2% stake before the logistics firm listed in November 2024. The company counted early investors such as Accel and Tiger Global, who earned four- to five-fold returns on their IPO investments. During the offer-for-sale (OFS), Flipkart sold shares worth ₹151 crore while retaining a stake valued at ₹416 crore.

While Flipkart aims for a public listing in 2026, its IPO preparations are still in the early stages. Recently, it secured NCLT approval to merge eight Singapore-based entities into its Bengaluru operations, a step toward “reverse-flipping” its domicile to India. 

The company has also appointed Meta executive Dan Neary to its board to support the upcoming transition to the stock market.

On the financial side, Flipkart Internet reported a 14% increase in operating revenue to ₹20,493 crore in FY25, up from ₹17,907 crore in FY24. Concurrently, net losses narrowed by 37% to ₹1,494 crore, compared with ₹2,359 crore in the previous fiscal year.