Who owns Cloudtail India private limited?
Who is the owner of Cloudtail?
Who is the master stake holder in Cloudtail?
How Amazon used the loopholes in law and become the largest online retailer in India where as FDI is ban in India in case of retailer business.
How Amazon is making fool???
Cloudtail is the major seller who sell products on Amazon.
Cloudtail is the joint venture between Amazon India parent and N.R. Narayana Murthy’s Catamaran Ventures contributes at least 40% of sales Amazon India.
As India bans FDI in online retail, e-commerce firms Amazon operate as marketplace platform that connect small merchants with buyers.
Amazon has used loopholes in the law to deploy a mix of the marketplace and the direct-selling business model in India.
Cloudtail has become the biggest seller or merchant on Amazon India’s platform. Amazon is not the major stake holder in Cloudtail but it has operational control in Cloudtail.
Cloudtail is now the key growth driver for Amazon India, generating at least 50% of the company’s sales in some months. Cloudtail is particularly dominant in electronics and fashion sales, two of the three largest categories for Amazon India (promoted by Amazon Seller Services Pvt. Ltd).
Since it launched as a seller on Amazon in July 2014, Cloudtail has expanded aggressively. Its capital was increased to Rs.500 crore last month from justRs.500,000 last July, according to documents available with the Registrar of Companies (RoC). The equity capital has been pumped in jointly by Amazon Asia and Catamaran through an entity called Prione Business Services Pvt. Ltd.
Apart from the Rs.500 crore in equity capital, Cloudtail has access to secured loans totalling Rs.300 crore, RoC documents show.
As India bans foreign direct investment (FDI) in online retail, Amazon and Flipkart, the country’s biggest e-commerce firm, operate as marketplace platforms that connect small merchants with buyers. Amazon and Flipkart aren’t allowed to sell directly to shoppers.
India’s industry department is yet to define the term marketplace and also elaborate on just what constitutes retail and wholesale trading on such platforms. Many traditional retailers allege that most online marketplaces are actually involved in the retail business.
Marketplaces are defined as websites that connect buyers to sellers, offering services such as warehousing, logistics, and payments. This falls under the definition of so-called B2B or business-to-business e-commerce. India allows foreign investments in firms engaged in this business, but not in retail firms.
Like Amazon, others have tried to get around this problem too. Flipkart India, for instance, has devised a complicated maze of many inter-connected and some purportedly independent entities.
WS Retail is one of the most important entities in this structure. To get around FDI rules, Flipkart created WS Retail in 2009 as a seller on its site. As part of a complex arrangement, WS Retail bought goods from Flipkart India Pvt. Ltd, the B2B (business-to-business) arm of the main group holding company, and sold the same goods to customers on Flipkart’s site. WS Retail also owned and ran Flipkart’s key logistics business called e-kart that delivered products to cuscountry.
In Amazon’s case, the company prefers to deploy a mix of marketplace and direct sales in most of its international markets because this allows the company to expand sales rapidly as well as maintain consistency in customer experience. To achieve this preferred mix of market place and direct sales, Amazon set up Cloudtail as a seller on its platform with the help of Catamaran Ventures, the family office of Infosys Ltd co-founder Murthy.
Cloudtail brings significant benefits to Amazon India.
After Cloudtail’s aggressive expansion, Amazon India is no longer solely dependent on other third-party sellers to drive sales. The e-commerce giant has stopped giving guaranteed returns to some sellers on the inventory they commit to Amazon, the people cited above said.
For other sellers, too, Amazon has reduced the amount of guarantee it gives on their goods, the people said. These measures have helped Amazon save tens of crores of rupees. Earlier, Amazon promised a monthly return of 1-3% on the value of goods sent by some sellers to its warehouses. This helped Amazon obtain significant product commitments from sellers even before customers placed orders. The easy availability of inventory then helped the company deliver goods faster than rivals and differentiate itself in a market where it is desperate to succeed.
The timing of Cloudtail’s launch as well as its frenetic expansion are also partly connected to the tax troubles faced by Amazon in Karnataka.
In July-August last year, tax authorities in that state cancelled the licences of many of the third-party merchants that worked with Amazon India, bringing the company’s operations to a near halt in the state, one of the largest markets in the country. The tax dispute, which revolves around whether Amazon or its sellers should pay sales tax, is still unresolved.
Among other things, the dispute showed Amazon the degree to which it was reliant on third-party sellers. With Cloudtail’s expansion, that dependence is much lower.
Amazon India country head Amit Agarwal and finance director Raghava Rao joined Cloudtail’s board of directors last July.
The money that Amazon Asia is pumping into Cloudtail is separate from the thousands of crores of rupees received by Amazon Seller Services, the wholly-owned Indian unit of Amazon. In July 2014, Amazon.com Inc’s chief executive officer Jeff Bezos promised to pump in as much as $2 billion into the company’s India business over time, as it seeks to become the dominant e-commerce firm in the country
Cloudtail India Private Limited is a Private Company incorporated on 04 October 2011. It is classified as Indian Non-Government Company and is registered at Registrar of Companies, Delhi. Its authorized share capital is Rs. 5,000,000,000 and its paid up capital is Rs. 5,000,000,000.It is inolved in Other wholesale [Includes specialized wholesale not covered in any one of the previous categories and wholesale in a variety of goods without any particular specialization.]
Cloudtail India Private Limited’s Annual General Meeting (AGM) was last held on 29 September 2015 and as per records from Ministry of Corporate Affairs (MCA), its balance sheet was last filed on 31 March 2015.
Directors of Cloudtail India Private Limited are Abishek Laxminarayan, Nithyanandan Radhakrishnan, .
Cloudtail India Private Limited’s Corporate Identification Number is (CIN) U51909DL2011PTC225840 and its registration number is 225840.Its Email address is CSlegal@cloudtail.in and its registered address is S – 405 (LGF) GREATER KAILASH – II, NEW DELHI – 110048, Delhi INDIA.