Amazon is betting big on India, and the company’s reported talks with investment banks is a proof

Amazon is preparing to spin off its India operations and list the entity on Indian stock exchanges, according to two sources with direct knowledge of the matter. The e-commerce giant has initiated discussions with investment bankers in India while also consulting with JP Morgan, its Wall Street partner.
"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. According to the sources, who requested anonymity due to the private nature of the discussions, Amazon invited 8-10 investment banks last week for preliminary talks with top officials from both India and the US.
When contacted by YourStory, an Amazon spokesperson declined to comment, stating the company does not respond to "rumours and speculations."
The potential listing comes amid Amazon's struggle to maintain market position in India, where it ranks second behind Flipkart, which controls approximately half of the country's e-commerce market. Flipkart is also reportedly considering its own listing in the next 12-15 months, though reports suggest Walmart may prioritize PhonePe's IPO first.
This strategic move could help Amazon navigate India's regulatory framework, which only allows domestic companies to operate under the inventory model. While foreign entities must use a marketplace approach, spinning off and listing locally could eventually lead to majority domestic ownership, potentially enabling Amazon to adopt the inventory model, which offers faster deliveries and better control over branding and quality.