Clicktech, a major seller on Amazon India, is set to acquire its counterpart Appario as Amazon aims to reduce its ownership in sellers on its platform.
VCCircle was the first to break the news of the development.
After the closure of Cloudtail, Appario has become the largest seller on Amazon India, handling a substantial volume of orders for the platform.
This marks the second instance of Amazon reducing its stake in a seller entity to adhere to local ecommerce regulations.
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Amazon will take full control of Frontizo Business Services, the holding company of Appario, from its joint venture partner, Patni Group.
As a result, Appario will become the exclusive property of Clicktech, while Frontizo will become a fully-owned subsidiary of Amazon.
“Clicktech plans to grow by expanding its range of goods in the market. As a result, the board chose to acquire Appario’s firm in order to broaden their product offerings,” according to Raj Jain, the company’s executive director.
Backed by the Vinod Poddar group, Clicktech is recognized for its involvement in steel and coal processing, real estate, and plastics.
Appario was the last major seller in which Amazon had an ownership stake.
In October 2022, Amazon announced plans to delist Appario from the platform, facing opposition from smaller sellers and regulatory pressures. In November of the same year, Amazon and Patni Group were exploring different avenues for Appario Retail to continue its presence on the marketplace.
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As a seller on the ecommerce platform, Appario generates most of its revenue from the sale of traded goods, which includes damaged items.
Several companies, including Clicktech and Cocoblu Retail, purchased Cloudtail’s inventory. Additionally, many of Cloudtail’s employees and management transitioned to these new entities, which later became prominent sellers on Amazon.