Flipkart, one of India’s leading e-commerce players, is preparing to divest its entire 6.02% stake in Aditya Birla Fashion and Retail Limited (ABFRL) through a block deal expected to fetch approximately ₹600 crore. The move signals a significant step in Flipkart’s ongoing strategy to streamline investments and refocus on its core digital commerce operations.
Industry insiders suggest the block deal could be executed on the stock exchanges in the coming days. This planned exit marks the culmination of a partnership that began in 2020, when Flipkart invested in ABFRL as part of a broader effort to deepen its presence in India’s fashion retail segment.
The divestment comes at a time when Flipkart is intensifying efforts to consolidate its position in the online fashion ecosystem through Myntra, its dedicated fashion subsidiary. While the Flipkart-ABFRL partnership has helped create synergies in fashion merchandising and supply chains, analysts believe the e-commerce major now seeks to unlock capital and realign its financial priorities.
ABFRL, part of the Aditya Birla Group, remains one of the largest fashion retailers in India, managing a strong portfolio that includes brands like Pantaloons, Van Heusen, Allen Solly, and Louis Philippe. The company has also been expanding into newer categories such as ethnic wear and digital-first fashion, backed by robust consumer demand and evolving retail strategies.
Despite Flipkart’s anticipated exit, market confidence in ABFRL remains high. The fashion retailer continues to attract investor interest, including past funding from global players such as TPG and GIC. With retail recovery gaining momentum and the company’s long-term growth plans intact, the impact of the stake sale is expected to be limited in terms of operational continuity.
The ₹600 crore transaction, once completed, will be among the more notable secondary market exits in India’s retail space this year, underlining the dynamic shifts taking place in the country’s investment landscape.