The growth in online shopping driven by Covid pushed the net profit of Cloudtail, one of the best sellers on Amazon, by 171% year-on-year to Rs 183 crore in fiscal year 21, according to data accessible from of the business intelligence platform, Tofler said.
Cloudtail India, which is a joint venture of Amazon India and the Catamaran businesses of Infosys founder Narayan Murthy, had earlier announced that it would cease operations from May 2022. The company’s net profits over the period ’20 year amounted to Rs 68 crore.
Cloudtail, in which Amazon has a 24% stake, reported FY21 revenue of Rs 16,639 crore, a 46% jump from the previous year. The company’s expenses soared to Rs 16,295 crore from Rs 11,303 crore in FY20, due to increased share purchases in the trade, employee benefits, financial costs, depreciation and amortization.
Cloudtail has the head of Amazon India, Amit Agarwal, as its board of directors. He had earlier announced that the seven-year partnership between Narayan Murthy’s office and the e-trader would cease as of May 19, 2022. This came after the Ministry of Consumer Affairs released draft guidelines on e-commerce. , which noted that online marketplaces couldn’t own equity / stakes in selling companies. The guidelines also stated that markets cannot influence their market leadership to favor a particular seller on the platform.
In addition, the Competition Commission of India (ICC) is also investigating Amazon and Flipkart for violating various provisions of the Competition Commission Act after Delhi Vyapar Mahasangh, an affiliate of the Confederation of All Indian Traders (CAIT ), accused them of steep discounts, and preferential treatment to sellers.
Traders also alleged that Cloudtail controls the majority of inventory on Amazon, accounting for over 90% of sales on the platform.
Also read: CAIT Alleges 1000kg of Marijuana Sold “Via Amazon”; requests an investigation by the NCB; Amazon says probe on
Also read: Amazon’s disclosures to CCI contradict its internal communications: future independent retail directors