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After Cloudtail Amazon Seeks To Delist Appario Retail

Appario Retail is a unit of Frotinzo Business Service, a venture partnership between Amazon and the Patni Group

After Cloudtail Amazon Seeks To Delist Appario Retail
POSTED ON November 01, 2022 2:13 PM

Amazon is all set to delist one of its largest sellers, Appario Retail, from its platform within one year. This latest development comes as a surprise as both organisations announced renewing their partnership a few days back. Incidentally, the Competition Commision of India (CCI) had recently raided the offices of Appario and Cloudtail, the two top sellers on its platform, in April 2022. 

Appario Retail is a unit of Frotinzo Business Service, a joint venture between Amazon and Patni Group-owned Zodiac Wealth . 

Amazon and India’s Patni group-owned Zodiac Wealth Management LLP have agreed to renew their joint venture, Frontizo Business Services Private Limited. Partners have decided that Appario Retail Private Limited, a wholly owned subsidiary of Frontizo, will cease to be a seller on and within the next 12 months. The partners will continue to explore new business opportunities, including helping businesses across India to scale up their online presence,” both organisations claimed in a joint statement. 

This is the second instance of Amazon shutting down its well-performing sellers, after delisting Cloudtail earlier this year. 

Before delisting, Amazon reduced its shareholding in both of its sellers, Appario Retail and Cloudtail. The move comes as the company attempts to comply with regulatory changes in India's evolving e-commerce domain. These regulations do not allow marketplaces to hold majority stakes in their sellers.

Recently, Walmart-backed Flipkart also reduced its shareholdings in one of its largest sellers, WS Retail.

Amazon Retail India recently reported Rs 1720 crore as revenues in FY 2021-2022. It also witnessed a stellar 8 per cent growth in sales. However, the firm also reported Rs 794 crore as net losses, which suggests a 22 per cent increase from the previous fiscal year. 

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