SUMMARY
This is the second time Amazon is divesting its stake from a seller entity to comply with local ecommerce norms
Amazon is also acquiring Appario’s parent company, Frontizo Business Services, entirely from its joint venture partner, Patni Group
Appario has become the largest seller on Amazon India after the closure of Cloudtail
Clicktech, one of the biggest sellers on Amazon India, is set to acquire its peer Appario as part of the ecommerce giant’s plan to divest stakes in sellers on its platform.
VCCircle was the first to report the development.
Appario has become the largest seller on Amazon India after the closure of Cloudtail. It moves a significant volume of orders for Amazon India.
This is the second time Amazon is divesting its stake from a seller entity to comply with local ecommerce norms.
Amazon is acquiring Appario’s parent company, Frontizo Business Services, entirely from its joint venture partner, Patni Group.
Appario, as a result, will become the sole property of Clicktech, while Frontizo will transition into a wholly-owned subsidiary of Amazon.
“Clicktech believes that it can scale and grow by expanding its selection offering on the marketplace. Hence the board has decided to buy Appario’s business and expand their product offering,” the firm’s executive director Raj Jain told ET in a statement.
Clicktech is backed by the Vinod Poddar group, known for its involvement in steel and coal processing, real estate, and plastics.
Appario was the last remaining major seller in which Amazon itself held a stake.
In October 2022, Amazon announced plans to remove Appario from the platform amid protests from smaller sellers and regulatory pressures. In November last year, Amazon and Patni Group were exploring various options for Appario Retail to be able to continue selling on the marketplace.
As a seller on the ecommerce platform, Appario primarily earns revenue from the sale of traded goods, including damaged goods.
Several firms, including Clicktech and Cocoblu Retail, acquired Cloudtail’s inventory, while many of Cloudtail’s employees and management joined these new entities, which subsequently emerged as significant sellers on Amazon.
