Amazon and Patni Group’s joint venture Appario Retail, has registered a total income of ₹759 crores in the financial year 2017-2018. It also emerged among one of the top sellers for Amazon India, during the first year of operation.
The total expenditure for the Amazon seller was ₹767 crores, with the loss after tax standing at ₹7 crores, according to the regulatory filings sourced from paper.vc.
The filings also show that it started the business during the year ended March 31, 2018, and is primarliy engaged in trading activities on ecommerce website Amazon.in.
Frontizo is the holding company for Appario Retail, formed as a joint venture between Patni Group holding the majority 51% share, while, Amazon Asia Pacific Holdings holding 48% stake. The company started its operations in Bengaluru last year, with an initial investment of ₹197 crores, followed by subsequent capital infusions.
The company acquired the equity shares of Appario on August 8, 2017, “for a sum of ₹1 lakh and infused additional capital in Appario,” thereby Appario became the wholly owned subsidiary of the Company.
Frontizo’s consolidated income was stood at ₹771 crores, with a loss of ₹12 crores, as per the filings.
As the regulations have capped the sales at 25% for one seller, Amazon is looking to channel other entities, apart from its major seller Cloudtail, in order to boost sales.
With the festive season sales merely weeks away, Amazon is set to enhance sales and bring in more customers. Also, its Indian rival Walmart-owned Flipkart is all set to further expand its market share, during the festive season sales.
Recently, Amazon slashed the storage charges and seller fees across five categories, in order to bring more sellers on its platform to increase the range and quantity of products to its customers.
Last month, Flipkart lowered commission on low prices categories, to bring more sellers, to cater to the anticipated growing demand, during the festive season sale.