The National Company Law Tribunal (NCLT) has approved the merger of Amazon Transportation Services Pvt Ltd (ATSPL) with Amazon Seller Services Pvt Ltd (ASSPL), enabling the US-based ecommerce giant to integrate its logistics operations directly into its primary marketplace entity in India.
Under the approved amalgamation scheme, shareholders of ATSPL will receive 38 new equity shares of ASSPL for every 10 fully paid-up equity shares held. Following the merger, ATSPL will be dissolved without winding up, with all its assets, liabilities and ongoing legal proceedings transferring to ASSPL.
In submissions to the tribunal, the companies said the merger would unlock operational synergies and efficiencies, as both entities operate in complementary segments of ecommerce and logistics. The consolidation is also expected to enhance shareholder value by streamlining operations under a single corporate structure.
The merger comes amid heightened regulatory scrutiny of foreign-owned ecommerce marketplaces, slower growth in online retail and intensifying competition from quick-commerce platforms. It also aligns with Amazon’s broader effort to simplify its India operations while retaining control over fulfilment and delivery, without violating India’s foreign direct investment rules that prohibit inventory ownership by marketplace operators.
Earlier this month, Amazon announced plans to invest $30 billion in India by 2030 to expand its business, including its fulfilment and delivery network, which supports allied sectors such as packaging, manufacturing and transportation.
The NCLT observed that both ATSPL and ASSPL are currently loss-making, though ASSPL reported a turnover exceeding ₹25,406 crore in FY24, while ATSPL recorded operating revenue of ₹4,889 crore. The tribunal clarified that its approval does not exempt the merged entity from payment of stamp duty, taxes or other statutory charges, nor from compliance with any applicable laws.
The division bench comprising judicial member Sunil Kumar Aggarwal and technical member Radhakrishna Sreepada also noted that the shareholders of both companies are incorporated in Singapore and Mauritius, and the transferee company must comply with the laws of those jurisdictions as well.
Founded in 2013, ATSPL was established as Amazon’s in-house logistics arm and derives more than 95% of its revenue from Amazon, though it began offering services to third-party clients in 2023. The merger mirrors a broader industry trend, with rivals such as Flipkart’s Ekart Logistics and Meesho’s Valmo strengthening their in-house logistics capabilities.
Amazon did not respond to queries on the development at the time of publication.
