Business
Amazon to absorb 1,000-1,200 employees from Cloudtail: Report
Amazon India is in the process of onboarding all the employees of Cloudtail India, which was formerly a joint venture between the e-commerce behemoth and Catamaran Ventures (N. R. Narayana Murthy’s family office).
According to The Economic Times, around 1,000-1,200 employees of Cloudatil and its parent firm Prione Business Services are likely to be onboarded by the end of May. The report citing its sources said that Prione CEO Pankaj Jathar informed the company employees about the transition plan on April 12.
last month, the Competition Commission of India has approved acquisition of Prione Business Service by Amazon Asia-Pacific Resources.Amazon Asia-Pacific is an indirect wholly owned subsidiary of Amazon.com, the ultimate parent entity of the Amazon group.
Establised in 2014, Cloudtail is engaged in B2C retail business in India, and offers for sale products to customers on www.amazon.in operated by Amazon Seller Services. Cloudtail is also engaged in wholesale (B2B) trading of products through online and offline channels. Cloudtail India is now a wholly-owned subsidiary of Amazon India after the e-commerce giant acquired 76 per cent of Catamaran Venture’s stake in Cloudtail at an undisclosed value.
The ecommerce marketplace was forced to trim its stake to 24% from 49% in 2019 to comply with India’s foreign direct investment (FDI) regulations for the ecommerce sector.
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As per a joint statement issued by Amazon India and Catamaran Ventures last year, the joint venture, which was up for renewal on May 19, 2022, would cease to exist. The companies said that Cloudtail India enabled over 300,000 sellers and entrepreneurs to go online and the top seller also enabled 4 million merchants with digital payment capabilities.
However, the various retail trade bodies have been contending that Cloudtail India was driving more than 90 per cent sales on Amazon platform, leaving other sellers in a disadvantageous position.
