Amazon India Reports Loss For The Second Year

Cloudtail India Pvt. Ltd, a joint venture between Amazon.com Inc. and N.R. Narayana Murthy’s Catamaran Ventures, has generated a total loss of worth INR 31.7 Cr for the year ended March 31, 2015.

The company’s current year’s loss was more than last year. It had incurred loss of INR 14 Cr. last year.

In the documents filed with the registrar of companies Cloudtail’s total revenue for FY15 was INR 1,145 Cr, wherein INR 1,139 Cr was generated from daily operations and remaining INR 6.4 Cr from other sources.

Cloudtail’s operating revenues include revenues from the sale of traded goods worth INR 1,027 Cr, income from promotional services worth INR 110.7 Cr and scrap sales of INR 1.5 Cr. Under its expenses, Cloudtail purchased goods worth INR 1,387.5 Cr which took its total expenses to INR 1,176.5 Cr.

According to media reports, Cloudtail is said to generate 40% of the total sales for Amazon.in.

It boarded the Amazon.in, in July 2014, as Foreign Direct Investment regulations in India do not allow foreign players to sell goods to Indian consumer directly.

Therefore, ecommerce players – Flipkart and Amazon operate on a marketplace model that connects sellers to buyers. For Flipkart, WS Retail works as the largest seller.

Welcome to Flash Feed, your essential source for breaking news and innovation from around the web – bite-sized and updated all day.