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Ecommerce giant Amazon’s board has greenlit a proposal to merge its Indian logistics arm, Amazon Transportation Services (ATS), with its primary marketplace entity, Amazon Seller Services.
The Bengaluru bench of the National Company Law Tribunal (NCLT) granted interim approval to the merger on February 5, 2025, as per Amazon’s regulatory filing with the Registrar of Companies (RoC).
The move will help Amazon streamline the business operations of the two companies and reduce legal and tax compliance, the ecommerce major said in a separate filing with the NCLT.
“The proposed amalgamation would allow consolidation of assets and reserves of the Transferor (ATS). Company with the Transferee Company (Amazon Seller Services), thereby increasing the financial strength and the ability of the Transferee Company to make larger investments in relation to its business,” it added.
Amazon did not respond to Inc42’s request for a comment on the development till the time of publishing. The development was first reported by ET.
Incorporated in 2012, ATS provides courier services, cargo transportation, logistics and related services, including the collection, delivery and transportation of goods, merchandise, documents, parcels, household items and commodities across India and internationally.
While it still earns a major chunk of its revenue from Amazon, it also offers logistics services to third-party clients.
ATS reported a 6.3% decline in its net loss to INR 80.3 Cr in the fiscal year 2023-24 (FY24) from INR 85.7 Cr loss it logged a year ago. Operating revenue surged nearly 8% to INR 4,888.9 Cr during the year under review from INR 4,543.3 Cr in FY23.
On the other hand, Amazon Seller Services’ net loss stood at INR 3,469.5 Cr in FY24, marking a 29% decline from INR 4,854.1 Cr in FY23. Operating revenue came in at INR 25,406 Cr during the year, an 11% jump from INR 22,198 Cr.
Besides ATS and Amazon Seller Services, the ecommerce giant also offers Amazon Pay WalLet and Pay Later services in India through a separate entity. It also operates Amazon Wholesale, its B2B wholesale marketplace.
The development comes at a time when Amazon is reportedly looking to spin off its Indian entity to launch an initial public offering (IPO). However, it’s unclear if the merger is related to the move.
Amazon’s rival Flipkart is drawing up plans for its much-anticipated IPO and is said to have obtained approval from its board to shift its base to India from Singapore. Meesho is also gearing up for a public listing. Meesho has enlisted bankers to advise it on its potential $1 Bn IPO, which is expected to be launched by year-end.
Both Flipkart and Meesho have their own in-house logistics firms, Ekart and Valmo, respectively.
The post Amazon Gets Board Nod To Merge Logistics Arm With Marketplace Entity appeared first on Inc42 Media.
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