I wish to prove/disprove that there exists a unique solution to the functional equation $$xyF\left(xy^2, y\right) = F(x, y), \quad x \ne 0, \quad |y| < 1, \quad y \ne 0,$$ where $F(x, y)$ is continuous.
I tried using the standard technique, i.e., assuming $F$ and $G$ both satisfy the above equation, but it did not lead anywhere. I am not an expert in functional equations, so any help would be appreciated.
Edit: It appears that in the degenerate case $y = 0$, the functional equation above does not hold and $F(1, 0) = 1$.