Ecommerce News

Cloudtail India FY23 revenue plummets 84% as firm stops selling on Amazon marketplace, ET Retail

Cloudtail India, once among the largest sellers on Amazon India online marketplace, reported an 84% year-on-year plunge in operating revenue in FY23 to Rs 2,977.8 crore, as it stopped selling on the platform to fall in line with the regulations, according to filings made with the Ministry of Corporate Affairs, sourced from company intelligence platform Tofler.

“During the financial year ended on March 31, 2023, the board of directors in its meeting held on March 17, 2022, approved the cessation of business-to-consumer (B2C) business of the company on or prior to April 23, 2022, which was followed by shareholders’ approval in its extraordinary general meeting held on March 19, 2022. Accordingly, the company ceased to carry its B2C business with effect from April 23, 2022,” the filing said.

Further, the parent company of Cloudtail India has been renamed — from Prione Business Services to Amazon Smart Commerce Solutions. Last year, Amazon became a full owner of Prione after acquiring a 76% stake from Infosys founder NR Narayana Murthy’s Catamaran Ventures.

Cloudtail India was set up in 2014 as a joint venture between Amazon and Catamaran Ventures.

However, Amazon was forced to trim its stake to 24% from 49% in 2019 to comply with the country’s foreign direct investment (FDI) regulations for the ecommerce sector.

Subsequently, the company announced that Cloudtail would cease to be a seller on the marketplace as the latest norms did not allow an entity running an online marketplace and its group companies to own equity in any of the sellers on the platform or to have control over their inventory.

Cloudtail India continues to provide certain services on the Amazon marketplace such as seller onboarding, and merchandising and cataloguing of products on the platform.

With the fall in revenues, Cloudtail’s net loss also contracted to Rs 97.8 crore in FY23 from Rs 521.8 crore a year earlier.

  • Published On Oct 11, 2023 at 08:51 AM IST

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