New Delhi, July 23, 2024 — The Competition Commission of India (CCI) has granted approval for the sale of Appario Retail, Amazon India’s largest seller, to Clicktech, another prominent seller on the ecommerce platform. This decision marks a significant step in Amazon’s strategy to divest stakes in sellers operating on its platform.
The CCI confirmed the approval of the “proposed combination involving, inter alia, Amazon Asia-Pacific Holdings, Frontizo Business Services, Appario Retail, Haverl LLC, and Clicktech Retail,” according to a statement quoted by Economic Times.
Appario Retail, operating under the umbrella of Frontizo Business Services, is a major player in Amazon India’s ecosystem. The ecommerce giant’s decision to divest stakes follows its earlier shutdown of Cloudtail, another prominent seller, which was reportedly linked to ongoing CCI scrutiny in 2022.
Following the closure of Cloudtail, Amazon announced plans to wind down operations of Appario Retail within the next 12 months. Clicktech emerged as the proposed buyer for Appario as part of Amazon India’s broader restructuring efforts.
Appario Retail, known for its substantial presence and revenue generation on Amazon India, primarily deals in traded goods, including damaged items. Despite reporting a decline of 8.2% in sales revenue to INR 14,604.2 crore in the financial year 2022-23 from INR 15,915.6 crore the previous year, Appario Retail managed a marginal increase in net profit to INR 84.4 crore in FY23, up from INR 82.5 crore in the preceding fiscal year.
The sale of Appario Retail to Clicktech signifies a pivotal development in the ecommerce landscape, reflecting Amazon’s strategic moves amid regulatory challenges and competitive pressures in the Indian market.
