Amazon India Unifies E-Commerce and Logistics Arms Amid Strategic Overhaul

According to Amazon's regulatory filing with the Registrar of Companies (RoC), the merger was given temporary clearance by the Bengaluru bench of the National Company Law Tribunal (NCLT) on February 5, 2025.

 In a second filing with the NCLT, the e-commerce giant stated that the action will assist Amazon in streamlining the business operations of the two companies and lowering legal and tax compliance.

It added that the proposed merger would enable the transferor company's assets and reserves to be consolidated with the Transferee Company (Amazon Seller Services), strengthening the latter's finances and enabling it to make more significant business-related investments.

A representative for Amazon India responded to a question from the media by stating that the merger will streamline the organisation's structure.

 Amazon has several subsidiaries worldwide, just like the majority of international corporations, and we frequently assess our organisational structure. According to the spokeswoman, the goal of this transaction is to streamline our organisational structure.

Financial Outlook of Amazon Transportation Services (ATS) and Amazon Seller Services

ATS was founded in 2012 and offers courier services, cargo transportation, logistics, and associated services, such as the pickup, delivery, and transportation of commodities, papers, goods, retail, and household items both domestically and abroad.

Although Amazon continues to generate the majority of its revenue, it also provides logistics services to third-party clients. In the fiscal year 2023-24 (FY24), ATS recorded a net loss of INR 80.3 Cr, a 6.3% decrease from the INR 85.7 Cr loss it recorded the previous year.

From INR 4,543.3 Cr in FY23 to INR 4,888.9 Cr in the year under review, operating revenue increased by about 8%.

However, Amazon Seller Services' net loss decreased by 29% from INR 4,854.1 Cr in FY23 to INR 3,469.5 Cr in FY24. During the year, operating revenue increased by 11% to INR 25,406 Cr from INR 22,198 Cr.

Other Services Offered by Amazon

In addition to Amazon Seller Services and ATS, the internet giant provides Amazon Pay Wallet and Pay Later services in India via a different company. Additionally, it runs its B2B wholesale platform, Amazon Wholesale.

According to a media report published in March 2025, Amazon plans to spin off its Indian business with an eye towards going public here. However, the e-commerce giant has no intentions to go public in India, as per various media reports.

Flipkart, Amazon's rival, is reportedly working on plans for its highly anticipated initial public offering (IPO) and has received board approval to move its headquarters from Singapore to India.

Meesho is also preparing to go public. With an anticipated $1 billion IPO by year's end, Meesho has hired bankers to provide advice.