Large scale Amazon India seller Clicktech plans to acquire another sizeable seller on the platform Appario. The move is designed to help Clicktech to diversify its product offering.
The move is part of Amazon India’s divestment of its stake in seller entities in line with Indian e-commerce regulations, ET Tech reported. Following the transaction, Clicktech will own Appario and Amazon India will acquire Appario’s parent company Frontizo Business Services.
Clicktech’s executive director Raj Jain told the Economic Times in a statement that the business, “believes that it can scale and grow by expanding its selection offering in the marketplace. Hence, the board has decided to buy Appario’s business and expand their product offering.”
After Amazon India saw the closure of what was its largest seller Cloudtail, Appario became its main seller. A spokesperson for both Frontizo Business Services and Appario confirmed to ET Bureau that the two transactions are set to take place.
Appario was the last remaining large scale seller in which Amazon India still held a stake. The US-owned business was instructed to divest its stakes in local sellers in order to comply with Indian e-commerce and foreign direct investment regulations. The business has seen protests from traders’ bodies including the Confederation of All India Traders regarding its approach to FDI regulations but maintains that it has always acted in a legal manner.
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