Rupa and Company, a Kolkata-based garment manufacturer's third-generation promoters - Siddhant Agarwal and Aparesh Agarwal - have started a new seller business called RetailEZ on Amazon India, according to sources.

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.

The promoters, clarified that RetailEZ was a separate entity that would not be associated with the publicly listed company.

“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.

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 RattanIndia Enterprises, 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 Infosys 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.