Amazon India Logistics arm to merge with marketplace

Amazon Transportation Services is set to merge with Amazon Seller Services, according to a Board approval document filed by the logistics player with the Registrar of Companies (RoC).

The merger, which is subject to approval by the NCLT in Bengaluru, will merge Amazon's Indian logistics arm, Amazon Transportation unit, with the company's domestic marketplace, Amazon Seller Services.

​"Like most multinational companies, Amazon has a number of subsidiaries around the world, and we regularly evaluate our organizational structure. The purpose of this transaction is to simplify our organizational structure," said an Amazon India spokesperson.

Besides these two, US-listed Amazon also operates Amazon Pay, its fintech business and Amazon Wholesale, its B2B arm.

These developments come as the global ecommerce giant looks to spin-off its Indian unit for a potential public debut.

Amazon Transportation clocked marginal growth in FY24, with just a 7.6% improvement in its revenue to Rs 4888.9 crore from Rs 4,543 crore in FY23. During the same period, its losses narrowed to Rs 80.3 crore from Rs 85.4 crore, mainly helped by lower expenses associated with finance costs and employee benefit expenses.

The company's ecommerce marketplace fared better by clocking a 14.5% growth in its operational revenue and an improvement in its bottomline. It posted a revenue of Rs 25,406 crore for the year ended March 2024, compared with Rs 22,198 crore in the year before. Its loss after tax narrowed by 28% to Rs 3,469 crore.