You are here: Home » Companies » News
Nikhil Kamath tops Hurun's under 40 rich list, Ola CEO in 2nd spot
Hindustan Copper shareholders approve 23.2% dividend for FY22
Business Standard

Cloudtail reports net loss of Rs 522 cr in FY22, revenue rises 15%

The e-commerce firm's revenue grew 15% to Rs 19,090 cr in FY22

Topics
cloudtail india | E-commerce firms

BS Reporter  |  Bengaluru 



e commerce
The company’s total expenses for the fiscal were reported as Rs 19,573 crore.

Private Limited, an e-commerce firm, reported its revenues for the financial year 2021-22 as Rs 19,090 crore, a 15 per cent jump since the last financial year. The company further reported a net loss of Rs 522 crore during the same fiscal, according to data sourced from business intelligence platform Tofler. The company’s total expenses for the fiscal were reported as Rs 19,573 crore.

The firm had reported a net profit of Rs 183 crore during financial year 2020-21. This was 171 per cent increase from the previous financial year, according to Tofler data released in November 2021. The company’s total expenses for the fiscal were reported as Rs 16,395 crore. The firm had reported its revenues for financial year 2020-21 as Rs 16,639 crore, a 46 per cent jump since the previous financial year.

Cloudtail’s parent, Prione Business Services, was jointly owned by Catamaran, led by Infosys founder N R Narayana Murthy and e-commerce giant Amazon. Cloudtail was one of the largest retailers on the e-commerce firm’s Indian platform. But Cloudtail shut operations on Amazon as a seller amid regulatory pressure.

Indian regulations don’t allow foreign-owned entity running running an online marketplace and its group to own stakes in any seller on the platform, or to have control over their inventory. Local traders have alleged that online retail were promoting their preferred sellers on the platforms.

Last year in August, Amazon and Catamaran Ventures “mutually decided” to not continue their joint venture (JV) beyond the end of its current term. The JV, Prione Business Services, which had been running successfully for the past seven years, was coming up for renewal on May 19, 2022.

“On July 1, 2022 and May 31, 2022, the Board of Directors the Company and Prione Business Services Private Limited (the Holding Company) respectively have passed resolution for in principle proposal to merge /amalgamate the Company with its Holding Company with appointed date of April 1, 2022,” according to Tofler document. “Subsequent to the year-end, the Company decided to cease trading activities on online marketplace and to engage in the B2B business. The merged entity will evaluate and conduct such business as may be decided by its Management. The Company is dependent upon its holding company for financial support and has received confirmation of such support based on which these financial statements have been prepared on a going concern basis.”

Cloudtail doesn’t sell on Amazon India anymore after Amazon reportedly bought a 100 per cent stake in Prione.Amazon’s move to remove Cloudtail as a seller on its platform had started in March this year after it sent termination notices to merchants and their businesses were transferred to new entities.

In March this year, the Competition Commission of India (CCI) cleared Amazon’s proposal to acquire Catamaran Ventures’ entire stake in Prione Business Services Pvt. Ltd.

In June this year, Cloudtail, reportedly accused the country’s antitrust agency Competition Commission of India (CCI), of illegally detaining its employees during a raid over suspected competition law violations.Cloudtail, among a handful of online sellers raided in an investigation of Amazon and Walmart's Flipkart over suspected preferential treatment on e-commerce platforms, argued in a court filing the detentions were cause for disallowing materials taken during the raid.


Subscribe to Business Standard Premium

Exclusive Stories, Curated Newsletters, 26 years of Archives, E-paper, and more!

Insightful news, sharp views, newsletters, e-paper, and more! Unlock incisive commentary only on Business Standard.

Download the Business Standard App for latest Business News and Market News .

First Published: Wed, September 28 2022. 23:36 IST

RECOMMENDED FOR YOU

.