Amazon-backed More Retail Plans India IPO Next Year, Betting on its Hybrid Model

More Retail, the grocery retail chain backed by Amazon and private equity firm Samara Capital, is planning to go public in India next year through an Initial Public Offering (IPO). The company is positioning its innovative hybrid retail model as a key strategic advantage as it prepares for this significant milestone.

More Retail’s IPO Plans and Timeline

More Retail is targeting an IPO in 2026, subject to favorable market conditions. “We are targeting an IPO next year subject to market conditions,” said Vinod Nambiar, Managing Director at More Retail Economic Times. This move marks a significant development in India’s retail landscape, as the company aims to capitalize on its recent growth and innovative business strategy.

The IPO represents a potential exit opportunity for its current investors. Amazon and Samara Capital acquired More Retail from the Aditya Birla Group in 2019 for an enterprise value of ₹42 billion ($580.35 million), with Samara taking a 51% stake and Amazon holding the remaining 49% Reuters.

Understanding More Retail’s Hybrid Model

More Retail’s hybrid model is central to its business strategy and growth plans. This innovative approach integrates physical retail operations with online grocery fulfillment:

1. Dual-Purpose Stores: Each More Retail location functions both as a traditional physical supermarket for walk-in customers and as a fulfillment center for Amazon Fresh online grocery orders. As Vinod Nambiar explained, “The hybrid model is where at the front of the store, you walk in and shop normally, and at the back of the store, we are focusing on serving Amazon Fresh orders” The Hindu Business Line.
2. Enhanced Profitability: This dual functionality significantly improves business economics. “The economic logic behind this is that we can leverage on two pools of revenue streams for the store, bringing in huge efficiencies. We garner a 50 per cent higher gross margin in a hybrid store compared to a non-hybrid store,” Nambiar noted The Hindu Business Line.
3. Online-Offline Integration: The model represents a strategic response to evolving consumer behavior in India, where the lines between online and offline shopping are increasingly blurred. While 36% of More Retail stores are in metros with more than one-third of sales occurring online, the remaining 64% of stores in non-metro areas see online sales in the “low double digits” The Hindu Business Line.

Current Operations and Financial Performance

More Retail has shown improved financial performance, despite earlier challenges:

1. Store Footprint: The company currently operates 775 stores across India Economic Times. This represents significant growth from the 873 supermarkets and 42 hypermarkets it operated in FY23 Economic Times.
2. Recent Financial Results: More Retail reported gross sales of nearly ₹5,000 crore (approximately $580 million) in fiscal year 2025, with an 11% year-over-year increase. Same-store sales showed impressive growth of 23% in FY25 Economic Times.
3. Path to Profitability: The company broke even in October and is targeting to be free cash flow positive by 2027 The Hindu Business Line. This represents a significant turnaround from FY23, when it posted a loss of ₹550 crore with revenues declining 7.4% to ₹4,507 crore Economic Times.
4. Online Business Growth: The company has seen substantial growth in its online segment, with online business growing by 110% in October and a GMV run rate for the online business reaching ₹1,700 crore. Currently, nearly 25% of More Retail’s business comes from the online channel The Hindu Business Line.

Expansion Strategy and Future Plans

More Retail has outlined an aggressive growth strategy:

1. Store Expansion: The company plans to double its store count within five years Economic Times. In the near term, it aims to add 150 stores over the next 15 months, focusing primarily on five states in Southern India, as well as West Bengal and Orissa The Hindu Business Line.
2. Amazon Fresh Partnership: Over the next 18 months, More Retail plans to add more than 500 stores across approximately 160 cities to its collaboration with Amazon Fresh Economic Times.
3. Hybrid Store Proliferation: The company aims to have at least 400 hybrid stores within the next 1.5 years, significantly expanding its current hybrid store footprint The Hindu Business Line.
4. Slotted Deliveries Focus: Unlike some competitors focusing on quick commerce, More Retail is emphasizing slotted deliveries within a two-hour window. Their average order value is reportedly twice that of quick commerce platforms, targeting a different consumer segment focused on affordability and comprehensive shopping needs The Hindu Business Line.

Indian Retail Market Context and Competition

More Retail’s IPO plans come against the backdrop of a rapidly evolving Indian retail landscape:

1. Market Growth Projections: India’s retail industry is projected to grow at a CAGR of 9% from 2019 to 2030, potentially reaching US$ 1.8 trillion by 2030 and US$ 2 trillion by 2032 IBEF. The online retail segment alone is expected to reach US$ 350 billion by 2030 from US$ 70 billion in 2022.
2. Online Grocery Market Explosion: India’s online grocery market was valued at US$ 8.82 billion in 2024 and is projected to grow at a remarkable CAGR of 44.9% from 2025 to 2030, reaching US$ 77.72 billion by 2030 Grand View Research.
3. Competitive Landscape: More Retail faces competition from major players like DMart, Reliance Retail, and other supermarket chains. While Reliance Retail is significantly larger in terms of overall revenue, companies like DMart have established strong positions in the value retail segment. The Amazon backing provides More Retail with a strategic advantage in the increasingly important online grocery space.
4. Omnichannel Trend: There’s a broader shift toward hybrid and omnichannel retail models in India, with even traditional retailers enhancing their digital capabilities. This trend accelerated during the pandemic and continues to shape the competitive landscape.

Challenges and Considerations

Despite its promising growth trajectory, More Retail faces several challenges:

1. Historical Financial Performance: The company has faced financial difficulties in previous years, with FY23 seeing widened losses of ₹550 crore and a 7.4% revenue decline Economic Times.
2. Regional Variability: The company experiences significant disparity between metro areas, where online sales contribute over one-third of revenue, and non-metro regions, where online adoption remains in the low double digits The Hindu Business Line.
3. Quick Commerce Competition: The rapid rise of quick commerce platforms offering 10-30 minute deliveries creates competitive pressure, though More Retail has strategically positioned itself differently with scheduled two-hour deliveries and larger basket sizes The Hindu Business Line.

Conclusion

More Retail’s planned IPO represents a significant milestone in the evolution of India’s retail sector. The company’s hybrid model, integrating physical stores with online fulfillment capabilities, positions it uniquely in the market and appears to be yielding improved financial results. With ambitious expansion plans and the backing of Amazon, More Retail is betting that this hybrid approach will resonate with investors and consumers alike.

The success of the IPO will depend not only on market conditions but also on the company’s ability to demonstrate the scalability and profitability of its hybrid model. If successful, it could serve as a template for other retailers navigating the complex balance between physical and digital retail in India’s rapidly evolving consumer landscape.