Despite the fall in revenue, Appario Retail’s net profit rose marginally to INR 84.4 Cr in FY23 from INR 82.5 Cr in the previous fiscal year
In line with its revenue, Appario’s total expenses declined 8.3% to INR 14,497 Cr in FY23 from INR 15,807.1 Cr in the previous year
In October last year, Amazon Amazon announced plans to shut down Appario within the next 12 months
Amazon seller Appario Retail reported a decline of 8.2% in its sales revenue to INR 14,604.2 Cr in the financial year 2022-23 (FY23) from INR 15,915.6 Cr in the previous fiscal year.
It is pertinent to note that in October last year, Amazon announced plans to shut down Appario, within the next 12 months. However, it was not clear from the regulatory filing if this had any impact on Appario’s business in FY23.
As a seller on the ecommerce platform, Appario primarily earns revenue from the sale of traded goods, including damaged goods.
The company attributed INR 14.5 Cr of its total sales income in FY23 to the sale of damaged goods, a decline of 29.6% year-on-year (YoY).
Including its revenue from administrative support services and interest income, Appario’s total revenue declined to INR 14,611.1 Cr during the year under review from INR 15,917.5 Cr in FY22.
Despite this, Appario’s net profit rose marginally to INR 84.4 Cr in FY23 from INR 82.5 Cr in the previous fiscal year.
Where Did Appario Spend?
In line with its revenue, Appario’s total expenses declined 8.3% to INR 14,497 Cr in FY23 from INR 15,807.1 Cr in the previous year.
Purchase Of Stock-in-Trade The Biggest Cost: The company spent INR 13,126.1 Cr towards buying finished goods for its business as against INR 14,471 Cr in FY22. This bucket comprised the largest portion of Appario’s expenses. In FY23, it alone contributed 90.5% to the total expenditure.
Platform Selling Fees Decline: Appario spent INR 1,083 Cr towards net platform selling fees in FY23, which was an over 26% decline compared to FY22.
Including platform selling fees, software subscription fees, foreign exchange loss, and other miscellaneous expenses, Appario’s miscellaneous expenditure stood at INR 1,089.7 Cr in the reported year.
Employee Benefit Expense Rise: Appario’s employee costs increased almost 48% to INR 60.5 Cr in FY23 from INR 40.9 Cr in the prior fiscal. In that, INR 56.9 Cr went towards salaries, wages, and bonuses.
It is pertinent to note Appario Retail, along with Cloudtail, was entangled in legal troubles in the past for alleged violations of competition laws. Months before announcing its decision to shut Appario, which was a joint venture of Amazon with Patni Group-owned Zodiac Wealth Management, the ecommerce giant shut Cloudtail, which was operated by Prione Business Services Ltd.
Cloudtail’s revenue plunged 84% YoY to INR 3,093.2 Cr in FY23, while loss narrowed to INR 98 Cr.
Meanwhile, Amazon India’s marketplace business saw its standalone net loss widen 33% to INR 4,854.1 Cr in FY23 while operating revenue increased merely 3.4% YoY, indicating a slowdown in sales growth.