Amazon-Backed More Retail Plans To Raise INR 2,000 Cr Via IPO: Report

Supermarket retailer More Retail is reportedly planning to raise around INR 2,000 Cr through its public listing, which is expected to take place next year.

An ET report, citing More Retail’s managing director Vinod Nambiar, said that the anticipated IPO is likely to dilute the promoters’ stake by 10%. He also mentioned that the public listing will majorly consist of fresh issue of shares without any offer-for-sale (OFS) component.

The company is likely to hit the bourses between April and December 2026.

Nambiar further said that the company will utilise the fresh capital to drive its business growth and cut down the debt which currently stands at INR 500 Cr. More Retails plans to expand its store count to 3,000 by 2030.

Currently, the Mumbai-based company has more than 800 stores across India.

It is pertinent to note that the More Retail was initially a part of Aditya Birla Group. Later, the company was sold to investors led by Samara Capital and Amazon in 2019. 

Samara Capital and Amazon hold 51% and 48% stake in the company, respectively. The rest of the stake is owned by family offices. Nambiar also mentioned that both of these promoters are not likely to offload any stake in the company.

Both the promoters have infused INR 900 Cr in the company along with the acquisition cost of INR 4,300 Cr, over the last five years.

More Retail operates as a hybrid model which facilitates offline as we all have online services. The customers can shop via its retail stores and also opt for home delivery via its online app. While its supermarkets focus on a wide selection of groceries and daily essentials, hypermarkets include non-food items like electronics and clothing.

Last month, Nambiar said that the company’s hybrid stores, which serve both as physical outlets and fulfillment centres for Amazon Fresh, have higher margins than standalone retail outlets.

Besides, the company is also looking to bolster its partnership with Amazon’s grocery delivery service and Amazon Fresh.

As per Tofler, More Retail recorded a net loss of INR 532.6 Cr in the financial year ended March 2024 (FY24). This is 3.2% lower than its loss of INR 550.3 Cr in the previous fiscal year.

Besides, its standalone operating revenue declined 8% to INR 4,148.6 Cr in the year under review from INR 4,506.6 Cr in FY23.

Nambiar said that the company is aiming to become EBITDA-positive with Rs 60 crore profit in the ongoing financial year. He further added that it will take around two years to achieve profit after tax (PAT) profitability.

Notably, quick commerce platforms like Zepto, Blinkit and Swiggy’s Instamart have taken over the baton from Indian retail stores by promising faster deliveries. The three giants collectively reported a revenue of more than $1 Bn in FY24.