Amazon may spin off India unit, looking at IPO, says report

Amazon India

American e-commerce giant Amazon is planning to spin off its Indian unit and list the the company here, YourStory has reported. The ecommerce giant is in early stages of discussions for the same.

Amazon discussed the IPO plan with its Wall Street banker JP Morgan and has begun talks with investment banks in India, the report said. The biggest reasons for Amazon's likely decision are data localization and easy inventory, a person familiar with the matter told YourStory.

Indian regulations only allow domestic firms to adopt the inventory model in ecommerce. This enables businesses to complete faster deliveries and enjoy lower shipping costs. Foreign entities must operate a marketplace model, serving as an intermediary between buyers and sellers.

Amazon last week had invited 8 to 10 investment banks for a call with their management. Although these were preliminary talks, top officials from India and the US were present, the report cited a source as saying.

The move comes as Amazon continues to lag Walmart-backed Flipkart in market share. Flipkart's reach and focus on non-metro cities gives it a wider set of customers, making it the market leader. Flipkart has already begun its process of shifting its domicile back to India. It is also planning an IPO in late 2025 or early 2026, reports have said.

Amazon recently launched quick commerce service Amazon Now in Bengaluru, and plans to use it to sell consumer electronics.

"We had a good quarter and are quite happy with how the year started for us. Consumer electronics, including mobiles, PCs, audio devices, and major appliances, have seen strong double-digit growth, and we are pleased with this momentum," Zeba Khan, Director of Consumer Electronics at Amazon India, recently told Moneycontrol.