Cloudtail, the largest seller on Amazon India, reported revenue of 7,149.21 crore in 2017-18, compared to 5,631.33 crore in the year-ago period
Bengaluru: Cloudtail India Pvt. Ltd, a joint venture of Amazon.com, Inc. and Infosys co-founder N.R. Narayana Murthy’s Catamaran Ventures, posted 27% revenue growth for 2017-18, show regulatory filings. Cloudtail, which is the largest seller on Amazon India’s platform, reported revenue of ₹ 7,149.21 crore, compared to ₹ 5,631.33 crore in the year-ago period, according to documents filed with the Registrar of Companies (RoC), which were sourced from business intelligence platform Paper.vc.
The company swung to a net loss (after tax) of ₹ 4.11 crore in the financial year, compared to a net profit of ₹ 1.59 crore in the previous fiscal. For the year ended March 2018, expenses went up by 26.52% to ₹ 7,158.66 crore from ₹ 5,658 crore last year.
Cloudtail had appointed Sumit Sahay as its new chief executive officer during the year.
So far, Amazon has invested close to $4 billion of its total $5-billion commitment towards India.
Amazon has over the past few years reduced its reliance on Cloudtail and gets a bigger share of its overall revenues from other large sellers to comply with existing foreign direct investment rules.
Over the past two years, large e-commerce firms in India have been forced to change their legal structures because of foreign direct investment laws announced in March 2016 by India, which allowed foreign direct investment in online marketplaces, but capped the contribution of a single seller to 25% of the marketplace’s overall business.
Like Amazon, Flipkart has also reduced its reliance on WS Retail over the past two years and currently works with other large sellers.
In 2015, about 40% of Cloudtail’s growth was driven by categories such as electronics and fashion, two of the largest categories for Amazon India. Currently, smartphone sales account for a majority of the company’s sales.