E-commerce firm Amazon announced the acquisition of joint venture, Prione Business Services with Cataraman subject to mandatory regulatory approvals.

In August Amazon and NR Narayana Murthy said, they are not going to continue the partnership with Prione Business services beyond 2022.

Amazon says, “Prione Business Services Pvt Ltd - the joint venture between Catamaran and Amazon will be acquired by Amazon subject to requisite regulatory approvals. Amazon will acquire Catamaran’s shareholding in Prione in compliance with applicable laws including all assets and liabilities.”

Amazon holds 24 per cent stake in Cloudtail, along with Narayan Murthy’s Catamaran Ventures (76 per cent), which saw net profit rise by 171 percent year on year to Rs. 183 crore in FY21.

Prione Business Services was formed in 2014 and is coming up for renewal on May 19, 2022. Amazon and Catamaran had not disclosed the reason behind the decision.

In 2018, the Government had introduced stricter norms for e-commerce marketplaces with foreign investments, mandating that they do not sell products of their group companies on their platforms. Subsequently, Prione Business Services was restructured. While the companies did not disclose details, it is said that Amazon’s holding came down from 49 percent to 24 percent stake post the restructuring.

The company has Amazon India head, Amit Agarwal as board member. After the scrutiny from regulators and the government, Amazon and Catamaran Ventures announced that Cloudtail India will cease operations from May 2022.

The business runs under present partnership with current management and on receipt of regulatory approvals. The board of Prione and Cloudtail will monitor steps to complete the transaction in compliance with applicable laws.