Amazon-backed grocery chain More Retail is preparing for a major IPO in India, targeting a roughly $300 million (≈ ₹2,000 crore) raise, according to people familiar with the matter.
Here’s what’s driving the move — and what it means:
🔍 Key Highlights & Strategy
- Promoter Backing: More Retail is owned by Samara Capital (51%) and Amazon (48%), showing strong long-term promoter commitment.
- IPO Goals: The funds raised will be used to fuel More’s expansion — the company plans to grow its store network aggressively — and to reduce existing debt (currently around ₹500 crore).
- Retail-Digital Hybrid Model: More operates a hybrid retail model: its physical stores double as fulfillment hubs for Amazon Fresh, giving it a strong omni-channel presence.
- Financial Turnaround Plans: More aims for EBITDA profitability soon — projecting positive EBITDA of ₹60 crore in FY 26 after a loss in FY 24.
- Expansion Ambition: The IPO proceeds could also help scale More’s footprint to 3,000 stores by 2030.
⚠️ Risks & Challenges
- Even after the IPO, Amazon and Samara are unlikely to dilute much — suggesting they remain focused on long-term value.
- Margin pressure could persist given the capital-intensive nature of grocery retail and the need to balance physical and online operations.
- Execution risk is not trivial: growing to thousands of stores requires not just capital but strong supply-chain operations and efficient store economics.
This IPO would mark a significant step for More Retail — bringing in growth capital, reducing debt and enabling expansion. For Amazon, it’s a play on strengthening its grocery-retail partnership; for More, it’s an opportunity to scale aggressively. However, investors should weigh the upside with the execution risk in a competitive retail market.
