Amazon plans IPO for its India unit, competing with Flipkart

Amazon is working on an initial public offering (IPO) for its India unit. The company has started early discussions with investment banks, including JP Morgan from Wall Street. This IPO move comes as Amazon tries to catch up with Flipkart, which plans its own IPO by 2026. Reports say that these discussions are still in the initial stages. Amazon's goal is to get listed in India to improve its operations. Indian regulations only allow domestic firms to use certain inventory models. This rule helps companies like Flipkart deliver products faster and lower shipping costs. In contrast, foreign companies like Amazon must use a different marketplace model, only acting as middlemen. Last week, Amazon met with around 8 to 10 investment banks to discuss the IPO plan. High-ranking officials from both the US and India attended these meetings. Amazon is currently behind Flipkart in market share, particularly in non-metro cities where Flipkart has a strong following. Flipkart is also taking steps to re-establish its base in India and aims to launch its IPO soon.