Cloudtail India posts 27% rise in sales in 2017-18
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.
Prior to the Walmart-Flipkart deal, Amazon had been steadily pumping in money into its India operations. Mint had reported in November that Amazon India had nearly doubled its authorised capital to ₹31,000 crore.
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.
In 2017, Amazon India’s marketplace arm, Amazon Seller Services, had nearly doubled growth and reported revenue of ₹3,129 crore, compared to ₹2,217 crore in the year before. Amazon has also infused capital into its marketplace arm several times in the past 12 months.
- Fortis says SC order does not impact 31.1% stake sale to IHH
- NGT clears way for reopening Sterlite copper smelter; Tamil Nadu govt to move SC
- Petrol prices hiked, diesel prices slashed. Check today’s rates
- Apple to roll out new Snoopy, Peanuts cartoon series
- Pokémon Go maker is seeking a $3.9 billion valuation
Editor's Picks »
- Markets yet to warm up to KEC International’s record order book
- Indraprastha Gas and Mahanagar Gas shares are low on fuel
- Overhang of capacity constraints lifts for ACC, Ambuja Cements
- Stock market traders fall for the ‘buy rural’ narrative, once again
- Continuing volume momentum puts Indian ports in a good position