Appario Retail revenue: Amazon seller Appario Retail revenue rises 9% to Rs 15,000 crore, profit rises 53%

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Appario Retail, the biggest seller on Amazon India which the retailer said it would shut down in a year, saw a 9% increase in operating revenue in the last financial year to Rs 15,915.6 crore, or nearly $2 billion, according to its regulatory filings.

The net profit of the company, which is hosted by Frontizo Business, a joint venture between Amazon and Patni Group, jumped 53% to more than Rs 82 crore in the financial year ended March 31, 2022, according to documents from economic intelligence. Tofler platform.

The figures, drawn from the bulk of the order volumes it enjoys on Amazon India’s platform, reveal the scale of Appario Retail in the market. Its main source of income is the sale of goods on the market.

Appario’s parent company, Frontizo Business, which offers customer support services to Amazon India, had self-sustaining operating revenue of nearly Rs 55 crore in FY22 when it posted its first profit of Rs 5.6 crore, according to the documents.

On October 31, in a joint statement, Amazon and Patni Group said that the joint venture had been renewed, but Appario would cease to be a seller on Amazon India and Amazon India Business – the wholesale platform – from a year here.
ET had reported that the Amazon-Patni JV for Frontizo has been renewed for three years
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The existing rules do not allow an entity operating an online marketplace and its group companies to own shares in any of the platform’s sellers or have control over their inventory.

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Appario will be the second largest seller, after Cloudtail, on its platform to be shut down by Amazon. Following tougher foreign investment rules in e-commerce, Amazon had to reduce its stake in parent entities Cloudtail and Appario Retail to 24% from 49%.

Amazon acquired 100% of Prione, Cloudtail’s parent company, earlier this year and then shuttered the business.

Appario Retail’s largest expense was the purchase of inventory, spending Rs 14,470.90 crore in FY22 compared to Rs 13,670.60 crore in the previous year. Employee spending fell by around 30% to nearly Rs 41 crore.

Amazon established the Frontizo joint venture with the Patni Group in 2017. Appario Retail has grown as a seller in the Amazon India marketplace since then and has become one of the largest, dealing with categories ranging from electronics to accessories and working with brands such as Xiaomi. , Noise and Fire-Boltt.

While Frontizo will continue its services, Appario Retail may offer seller onboarding services on Amazon India, ET had reported. This is similar to Prione’s core business.

Before closing its activities as a seller, Appario Retail is likely to transfer its key activities to other seller companies on Amazon India.
ET reported in August that several new retail companies have taken over Cloudtail’s business on Amazon, and they have one thing in common: they’re all led by former Cloudtail and Appario Retail executives.

ET had reported in September that Cloudtail recorded a 15% increase in revenue to Rs 19,076 crore, while its losses widened by 2.8 times to Rs 522 crore in FY22.

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