Cloudtail’s FY23 Revenue Plunges 84% To INR 3,093 Cr After It Stops Selling On Amazon

Cloudtail, once a leading seller on Amazon India, saw its total revenue drop 84% to INR 3,093.2 Cr in the financial year 2022-23 (FY23) from INR 19,090.5 Cr in FY22, following the firm’s decision to stop selling on the ecommerce platform.

Cloudtail’s revenue from operations declined 84% to INR 2,977.8 Cr in FY23 from INR 19,076.7 Cr in FY22, as per its filings with the Ministry of Corporate Affairs sourced from market intelligence firm Tofler.

“During the financial year ended on March 31, 2023, the Board of Directors in its meeting held on March 17, 2022, approved the cessation of business to consumer (B2C) business of the company on or prior to April 23, 2022, which was followed by shareholders’ approval in its extra-ordinary general meeting held on March 19, 2022. Accordingly, the company ceased to carry its business to consumer (B2C) business w.e.f. 23 April, 2022,” Cloudtail said in the filing.

Cloudtail said it was engaged in limited business-to-business (B2B) sales till October 2022.

The company’s net loss narrowed to INR 98 Cr in FY23 from INR 522 Cr in FY22 as its expenses fell significantly.

Total expenses stood at INR 3,191 Cr in FY23 as against INR 19,573.2 Cr in FY22.

Cloudtail was initially formed as a joint venture between Amazon and Infosys founder NR Narayana Murthy-owned firm Catamaran. While Amazon initially held 49% stake in Prione Business Services, the parent of Cloudtail, it subsequently trimmed its stake to 24% to adhere to the norms in the country.

Cloudtail also ran into controversies as traders alleged that Amazon was giving it preferential treatment on its platform.

Finally, in August 2021, Amazon India and Catamaran announced that they would not continue their joint venture, Prione Business Services, beyond May 2022.

In April 2022, it sent contract termination notices to its vendors, stating that it would be liquidated, and sell all the previous stocks by May 2022.

Cloudtail, now an ecommerce entity owned by Amazon, has been renamed from Prione Business Services to Amazon Smart Commerce Solutions.

Cloudtail India now offers specific services on the Amazon marketplace, including tasks like seller onboarding and the management of product merchandising and cataloging on the platform.