Cloudtail India is a joint venture between global e-commerce player Amazon.com and Narayana Murthy’s Catamaran Ventures.
By Hita Gupta
Cloudtail India, the largest seller for the Indian arm of e-commerce giant Amazon, generated total losses of Rs 31.7 crore for the year ended March 31, 2015, according to a company filing on registrar of companies. The losses swelled manifold from Rs 14,035 in the previous year.
Total revenues for FY15 were clocked at Rs 1,145 crores where Rs 1,139 crore were generated from daily operations and remaining Rs 6.4 crore from other income for the year. Cloudtail’s operating revenues include revenues from sale of traded goods worth Rs 1,027 crore, income from promotional services worth Rs 110.7 crore and scarp sales of Rs 1.5 crore.
Under its expenses, Cloudtail purchased goods worth Rs 1,387.5 crore which took its total expenses to Rs 1,176.5 crore. The company did not report Employee Benefit Expenses and Depreciation and Amortisation expenses for FY14 which were clocked at Rs 3.5 crore and Rs 27 lakh for FY15, respectively. Other expenses rose to Rs 87.1 crore from Rs 24,720 during FY15.
Cloudtail India is a joint venture between global e-commerce player Amazon.com and Narayana Murthy’s Catamaran Ventures. According to media reports, Cloudtail is said to generate 40% of the total sales for Amazon.in.
Couldtail boarded the Amazon.in ship in July 2014 as Foreign Direct Investment regulations in India do not allow foreign players to sell goods to Indian consumer directly. Therefore, e-commerce barons such as Flipkart and Amazon operate on a marketplace model that connects sellers to buyers.WS Retail works as the largest seller for Flipkart.
The parent company of Indian arm of Amazon is Amazon Seller Services which is yet to release its number for year ended March 31, 2015. Cloudtail’s business being a significant component for Amazon.in is expected to reflected in its balance sheet for the reporting period.