One of the largest seller on Amazon 'Cloudtail' profits come on the back of a 45.8% rise in its revenue to Rs 16,639.04 Cr in FY21 compared to FY20 Rs 11,412.75 Cr., where the total expenditure for the period under review increased 45% to INR 16,395.03 Cr.
Cloudtail India is a wholly-owned subsidiary of Prione Business Services. Prione is a joint venture between N.R. Narayana Murthy-owned Catamaran and Amazon.
In August, the company announced to stop its operations with effect from May 19, 2022. The announcement came on the backdrop of several controversies surrounding the company with Amazon as a shareholder. Both Amazon and the company faced criticism over alleged preferential treatment towards the joint venture.
Further, the draft ecommerce rules floated by the Ministry of Consumer Affairs also propose that online marketplaces would not be allowed to own stake in seller firms. However, the draft norms have been criticized by several forums, industry bodies and arms of the government and the Centre is reportedly considering changes to the proposed guidelines.
These norms will lay the foundation to the much awaited e-commerce policy which also is in the draft stage.