World’s largest e-commerce company Amazon is considering spinning off its India business and listing it on the domestic stock market, YourStory reported. If executed, this move would allow Amazon to solidify its presence in one of the fastest-growing digital marketplaces while navigating India’s strict e-commerce regulations.
The Seattle-based giant, currently the second-largest player in India after Flipkart, has begun discussions with investment banks regarding the potential listing. Amazon has also consulted with its Wall Street banker, JP Morgan, while reaching out to 8-10 investment firms in India, the report quoted sources as saying.
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“Amazon has started discussions with bankers and is looking to spin off and list in India. The biggest reasons are data localisation and, more importantly, it can directly have inventory here,” a source told YourStory.
Why Amazon wants to list in India?
Indian regulations currently restrict foreign entities from operating an inventory-led e-commerce model. Instead, they must function as a marketplace connecting buyers and sellers. However, domestic companies can manage inventory directly, allowing for faster deliveries, improved branding and lower shipping costs, the report explained.
While Amazon may not immediately switch to an inventory-led model, a spin-off could open doors for greater domestic investment, potentially paving the way for local ownership. A legal expert noted that over time, increased domestic shareholder participation could allow Amazon to circumvent existing regulatory limitations, YourStory report further stated.
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Amazon’s move comes amid increasing competition in India’s e-commerce space. Walmart-backed Flipkart leads the market with nearly half of the country’s online retail share. Amazon is also facing stiff competition from rising players like Meesho and fast-growing quick-commerce startups such as Swiggy Instamart, Blinkit and Zepto.
Furthermore, Amazon has been slow to capitalise on India’s booming quick-commerce segment. Although it has started pilot services, it is playing catch-up against well-funded competitors.
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