Walmart-owned ecommerce big Flipkart is exiting its funding in Flying Machine as a part of a broader portfolio clean-up forward of its proposed IPO, with Arvind Fashions set to amass the ecommerce main’s complete stake within the model’s mother or father entity.

Arvind Fashions Ltd mentioned it would purchase Flipkart Group’s 31.25% holding in Arvind Youth Manufacturers Pvt Ltd (AYBPL) for Rs 135 crore, making the corporate an entirely owned subsidiary.

The acquisition will probably be executed via a share buy settlement with Flipkart India Pvt Ltd and is predicted to shut on December 29, 2025, the corporate mentioned in a regulatory submitting.

The transaction includes the acquisition of 1 fairness share of Rs 10 every and 58,95,852 obligatory convertible desire shares (CCPS) of Rs 100 every, representing Flipkart’s complete stake in AYBPL on a totally diluted foundation.

AYBPL operates within the wholesale and retail of attire and equipment underneath the Flying Machine model.

Flipkart had invested Rs 260 crore in Arvind Youth Manufacturers in 2020, buying a minority stake to strengthen the model’s presence on ecommerce platforms. Since then, Flying Machine has positioned itself as a digital-first informal put on model, supported by its partnership with Flipkart. Arvind Fashions mentioned the collaboration helped the model emerge as one of many main youth-focused informal put on labels on on-line platforms.

“Our relationship with the Flipkart Group will proceed, making certain customers can nonetheless store Flying Machine on its platforms. The model will even be obtainable to customers on different digital channels and portals,” Amisha Jain, managing director and CEO of Arvind Fashions, mentioned.

Regardless of its digital traction, Flying Machine’s monetary efficiency has softened in recent times. The model’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 interval.

For Arvind Fashions, the acquisition consolidates possession of considered one of its legacy manufacturers and permits sharper strategic give attention to progress throughout channels. Flying Machine is an Indian denim model with a historical past spanning greater than 4 many years and has been current on digital platforms for over a decade, with attain throughout metros and tier-II cities. Arvind Fashions homes a portfolio of attire manufacturers together with U.S. Polo Assn., Arrow, Tommy Hilfiger, Calvin Klein and Flying Machine.

The stake sale is a part of a wider divestment and restructuring train underway at Flipkart because it prepares for an eventual preliminary public providing in India. In current months, the Walmart-owned ecommerce firm has bought its complete stake in listed logistics know-how agency BlackBuck and offloaded its 6% holding in Aditya Birla Life-style Manufacturers for Rs 998 crore.

Flipkart is focusing on a public itemizing round 2026, although its IPO plans stay at an early stage. As a part of its preparation, the corporate has obtained approval from the Nationwide Firm Regulation Tribunal to merge eight Singapore-incorporated entities into its Bengaluru-headquartered working arm, a step in direction of reversing its domicile to India. It has additionally appointed ex-Meta government Dan Neary to its board to help the transition.

Financially, Flipkart Web, the group’s ecommerce arm, reported a 14% enhance in working income to Rs 20,493 crore in FY25 from Rs 17,907 crore in FY24. Internet losses narrowed 37% year-on-year to Rs 1,494 crore throughout the identical interval, in contrast with Rs 2,359 crore a 12 months earlier.