The new entity is taking over Cloudtail‘s home and kitchen business from sellers and suppliers, the sources said.
RetailEZ is among many new sellers that are taking over Cloudtail’s business following Amazon’s acquisition of the latter’s parent company Prione.
Cloudtail was the biggest seller on Amazon and the etailer shut it after acquiring a 100% stake in Prione, as existing norms do not allow an entity running an online marketplace or its group companies to own equity in any seller on the platform or control its inventory.
Rupa and Co chief financial officer (CFO) Ramesh Agarwal confirmed the development to ET.
He, however, clarified that RetailEZ was a separate entity that would not be associated with the publicly listed company.
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“RetailEZ is a new initiative from the Rupa Promoters Group – designed to leverage the digital boom in India and the mass access to smartphones and internet,” according to its profile on professional networking platform LinkedIn.
Besides home and kitchen, RetailEZ will also sell sports-related products like gym equipment, Agarwal said.
Multiple brands are in the process of inking new deals with RetailEZ.
“They (RetailEZ) have been referred to us for transferring the Cloudtail business for the segment. We are in the process of transitioning,” one seller in talks with the firm told ET.
RetailEZ did not respond to queries sent by ET as of press time.
ET has reported previously that
Cloudtail would move its business to several new and existing seller firms after Amazon’s acquisition.
The transition has, however, not been smooth.
ET reported on July 8 that
sales of fast-moving consumer goods have fallen significantly on Amazon India after brands including
, , and found it difficult to issue credit to the new sellers over a lack of history in dealing with large business volumes and not having in place the required processes and technologies.
Amazon is assisting these new sellers in the transition by asking former Cloudtail employees to work with them temporarily.
In March, a part of the
electronics business of Cloudtail was transferred to VRP Telematics and Dawntech Electronics. Its health and personal care business is being moved to Rocket Kommerce, while the fashion and apparel category has been taken over by Cocoblu Retail.
These new sellers are backed by various old economy companies.
Dawntech is owned by South India’s leading real estate company, Salarpuria-Sattva Group. Cocoblu Retail is a newly floated ecommerce seller incorporated last October and is a wholly owned subsidiary of Delhi-based
, which in January received a Rs 350 crore fund infusion by the promoters.
RocketKommerce has been backed by RK World Tech, which has been a seller of OnePlus phones on Amazon before taking up personal care and FMCG business.
VRP Telematics has also been an existing seller on Amazon India and also works for the ecommerce company’s private labels like Solimo and AmazonBasics.
Before the acquisition, Cloudtail was majority-owned by
cofounder Narayana Murthy’s family investment arm Catamaran Ventures.
Amazon also set up Frontizo Business Services in joint venture with Patni group in 2017.
While Frontizo offers customer support services to Amazon India, its subsidiary Appario Retail is a key seller on the Amazon India marketplace.
