Highlights
- Amazon India’s Head of Consumer Electronics and former CEO of Cloudtail has resigned.
- The company is entering the quick commerce sector by January.
- Amazon Seller Services in India reported a 14% increase in operating revenue to ₹25,406 crore for the last financial year.
Amazon India’s Head of Consumer Electronics and Former CEO of its largest seller Cloudtail, Ranjit Babu has stepped down in a major leadership churn. Babu’s resignation follows a string of senior-level departures including that of former India head Manish Tiwary.
Babu has been a key figure at Amazon India for over a decade and has held key roles in top-performing categories. His stint at Cloudtail played a vital role in shaping Amazon’s success in India.
In December 2022, Babu took on additional responsibilities after senior executive Noor Patel moved to Amazon US. By July 2023, he was promoted to head the consumer electronics division and was overseeing high-revenue categories like smartphones.
“He has resigned and is moving on,” a source was quoted in the Economic Times report.
Amazon declined to comment on his departure.
Babu’s resignation comes amid a broader restructuring effort. A company veteran Samir Kumar has stepped into the role of India head after Tiwary’s exit. Other senior executives including Gaurav Arora and Suresh John have also left the organisation recently.
Tiwary’s departure came when analysts suggested Amazon India has been losing market share in key categories to competitor Flipkart. In response, Amazon is working to mark its position in core e-commerce and enter the fast-growing quick-commerce sector as well.
The company is expected to launch its quick commerce platform codenamed Tez by January.
Despite leadership changes, Amazon Seller Services the Indian marketplace arm reported a 14% increase in operating revenue to ₹25,406 crore for the last financial year. Net losses were reduced by 28% to ₹3,469 crore.
However, the revenue growth of 3% in FY23 lags behind the 32% and 49% seen during FY22 and FY21, respectively.
The bulk of Amazon’s revenue in India comes from third-party seller services subscriptions like Amazon Prime and advertising. The company also earns royalties from licensing digital content. In FY24, Amazon Seller Services received a ₹830 crore fund infusion from its parent company, followed by an additional ₹1,660 crore in FY25.
Meanwhile, Amazon India’s logistics, payments and wholesale divisions posted moderate revenue growth of 7-11% in FY24 along with slight reductions in losses.
With senior leadership shifts and intensified competition, Amazon India’s future strategies including its upcoming quick commerce launch will be crucial in maintaining its position in the market.
FAQs
Q1. Why did Ranjit Babu resign from Amazon India?
Answer. Ranjit Babu, Amazon India’s Head of Consumer Electronics and former CEO of Cloudtail, has stepped down amid a broader restructuring effort, following other senior-level departures.
Q2. How did Amazon Seller Services in India perform financially in the last financial year?
Answer. Amazon Seller Services reported a 14% increase in operating revenue to ₹25,406 crore for the last financial year. Net losses were reduced by 28% to ₹3,469 crore but revenue growth slowed to 3% in FY23.
Q3. What future strategies is Amazon India planning to maintain its market position?
Answer. Amazon India is focusing on strengthening its core e-commerce position and entering the quick commerce sector, with plans to launch its quick commerce platform codenamed Tez by January.