Cloudtail India, one of the largest sellers on Amazon India, reported a marginal drop in its net losses to R30.2 crore for the year ended March 31, 2016, according to the company’s filings with the registrar of companies. The company has reported net losses of R31.6 crore for FY15.
During the period, revenues jumped almost four time to R4,591 crore from R1,145 core, a year ago. Operating revenue of the company rose to R4,587, which the company generates via sales. It sells a variety of products such as consumer electronics, appliances, fashion, sports accessories, furniture and home furnishings, among others. Total expenses rose four times to R4,621 crore from R1,176 crore in the previous fiscal. During FY16, the company purchased inventory worth R4,754 crore against R1,387 crore in the previous year.
Two of the major expenses for Cloudtail to sell its products on an e-commerce marketplace like Amazon include platform selling fee and promotion expenses. Platform selling fee for the company jumped six times to R420 crore and promotion expenses rose eight time to R6.3 crore for the year.
Cloudtail is a joint venture between Amazon.com and Narayana Murthy’s Catamaran Ventures. Prione Business Services is the holding company for Cloudtail India.
It started selling its products on Amazon in 2014 and completed its first full year of operations in FY15.