Cloudtail’s biggest expenditure was related to purchase of inventory, which rose around 6% to Rs 15,492 crore.
Employee costs, however, shrank 45% to Rs 105 crore, indicating that its workers were already in transition before the company shut down in May after Amazon acquired 100% in its parent firm Prione Business Services.
ET reported in August that Cloudtail’s various businesses had been moved to new and existing external sellers where former Amazon and Cloudtail executives were running the show.
RK Group, Cocoblu Ventures, and Clicktech Retail are among the sellers that have taken over Cloudtail’s business.
Cloudtail was a joint venture between Infosys founder NR Narayana Murthy’s investment office Catamaran Ventures and Amazon.
Discover the stories of your interest
It used to sell multiple products in various categories, including fashion, home, groceries, books, and Amazon’s private label products.
The shutdown was prompted by regulatory changes that prohibit a foreign entity running a marketplace as well as group companies from equity participation in any of its sellers or having control over their inventory.
The transition from Cloudtail to new sellers has not been smooth for brands as well as Amazon itself.
Multiple sellers told ET that the new sellers had faced operational issues soon after the transition.
ET reported on July 2 that sales of fast-moving consumer goods fell on Amazon as brands found it difficult to extend credit transactions to new entities.
Meanwhile, Amazon Seller Services, which runs the Amazon India marketplace, reported a 32% jump in overall revenue to Rs 21,633 crore on a standalone basis, from Rs 16,378 crore a year ago. It also managed to cut net losses by almost 23% to Rs 3,649 crore in FY22 from a loss of Rs 4,748 crore in FY21.
Its logistics business, Amazon Transportation, and fintech arm, Amazon Pay India, also managed to increase revenue in FY22, but both reported increased losses.
For all the latest Technology News Click Here
