Amazon.com Inc. is planning to grow new product categories through Appario Retail, the e-commerce giant's joint venture with India's Patni Group, The Times of India reported, citing people familiar with the matter.
The sources reportedly said Appario will help the e-commerce company execute a marketing plan to boost sales in new categories. The product range will include home, furniture and electronic accessories. Among the third-party sellers are Cloudtail India Pvt. Ltd., Amazon's joint venture with Infosys Ltd. co-founder N.R. Narayana Murthy's private investment firm Catamaran Ventures.
"Third-party sellers are there in these categories but they can't sustain when a company wants high-voltage marketing campaign. It requires a significant investment and that can be executed better with sellers like Appario," a source told the paper.
Appario has already received 2.5 billion Indian rupees in investment in recent months, The Times of India said.
An Amazon spokesperson told the newspaper that it does not comment on speculation about future plans, while an Appario spokesperson declined to comment on the matter.
As of Feb. 19, US$1 was equivalent to 64.51 Indian rupees.