Amazon India forges alliance with Ashok patni Group for customer service unit

Amazon has been doubling down its efforts to improve customer experience. The online marketplace has collaborated with Ashok Patni Group to establish customer service unit - Frontizo Business Services - to assist shoppers in local languages.

As per report, Patni Group holds 51% stake in the joint venture while remaining 49% owned by Amazon. The joint venture could also set-up a seller subsidiary similar to Cloudtail.

Frontizo Business Services has begun operations in Bengaluru with an investment of Rs 197 crore from both entities. The joint entity offers multi-channel customer support services, including email assistance, customer outreach and contact on the phone and chats.

Frontizo has five directors on the board including three representatives of Patni and two of Amazon.

"It is estimated that there are more than 450 million customers with Internet access in India. Only a handful of them shop today through ecommerce sites. Majority of these new customers will come from small towns and rural areas and will have different needs like vernacular language support and alternate operating models to serve them," said the spokesperson of Frontizo to ET.

Eyeing to build largest merchant entities on the lines of Cloudtail, Amazon India had approached prominent business families in the country including Burman family and Infosys co-founder Kris Gopalakrishnan.

Lately, Amazon has been trying to forge joint ventures with Indian partners as the government may bring the regulation on how much a single seller can contribute to a marketplace.

According to The Department of Industrial Policy and Promotion (DIPP), a single seller can’t contribute more than 25% volume of overall sales on a particular marketplace.

Last week, Dabur had launched an online marketplace with Amazon to sell ayurveda brands along with relevant insights into the medicinal properties of ayurvedic products for treating various ailments.

Meanwhile, Amazon also picked-up a 5 per cent stake in Shoppers Stop for Rs 179.26 crore. Following the investment, both will leverage each other’s space to promote brands offline and online.