Bengaluru: Cloudtail, one of the largest sellers on Amazon India, reported a 25% increase in its revenues to Rs 8,945 crore, while also swinging back to a profit of Rs 29 crore in FY19, according to MCA filings obtained from Tofler.Cloudtail had reported a loss of Rs 4 crore in FY18 after posting a profit of Rs 1.6 crore in FY17.
The surge in revenues is close to the previous year, when the increase was 27%, despite changes in India’s online marketplace regulations earlier this year which had disrupted business.
Under the revised policy, e-tailers can’t hold a majority stake in entities that sell on their platform, causing Amazon India to delist lakhs of products overnight in February.
The US-based retail giant Amazon had then brought down its shareholding in Cloudtail to 24% from 49%, with Infosys co-founder Narayana Murthy’s Catamaran increasing its holding to 76%. Cloudtail had stopped selling products for a few days, but was back on the platform after Amazon lowered its shareholding.
As Cloudtail has come mostly under Murthy’s Catamaran, it has also started negotiating higher margins from brands, according to reports. Cloudtail has also been changing its product mix over the last few years from smartphones and electronics to home and kitchen products besides private labels, including Amazon Basics products.
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