Appario Retail, the seller entity under the recently formed joint venture between Amazon and Patni Group, has received a capital infusion of $15.69 Mn (INR 100 Cr).
As per latest filings with the Registrar of Companies (RoC), Appario Retail has increased its paid up capital to $22 Mn (INR140 Cr) from $6.27 Mn (INR 40 Cr).
Amazon had formed a JV (joint venture) with Ashok Patni Group to strengthen its customer service unit or call centre in September this year. The step was aimed at elevating its brand presence amidst Indian customers by supporting the growing number of local-language customers.
Patni Group holds 51% ownership in the JV, and also helped Amazon in setting up a subsidiary Frontizo Business Services, that acts as a seller on the Amazon India platform. Frontizo Business Services started operations in Bengaluru In June this year with an investment of $30.4 Mn (INR 197 Cr) from Amazon Asia Pacific Holdings and Patni’s Zodiac Wealth Advisors LLP, according to Ministry of Corporate Affairs (MCA) filings.
Appario Retail is the wholly owned subsidiary of Frontizo Business. Prior to this, Appario had received about $6.27 Mn (INR 40 Cr) in capital.
Frontizo is much like Amazon’s similar JV which was formed three years ago between Amazon and Infosys founder N R Narayana Murthy’s family office Catamaran Ventures Cloudtail India. Amazon has been trying to reduce its dependence on Cloudtail ever since the Indian government put forth new DIPP guidelines last year which said that a single seller should not clock more than 25% of overall sales for an ecommerce player.