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Cloudtail, Prione Business Services are Transitioning to Amazon India

CIO Insider Team | Monday, 25 April, 2022
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All 1,000-1,200 employees of Cloudtail and its parent company, Prione Business Services, are being transferred to Amazon India, with the process expected to be finished by the end of May.

The transition plan of the employees was announced by Pankaj Jathar, CEO, Prione at a town hall meeting earlier this month.

Cloudtail, a joint venture between Amazon and Infosys founder NR Narayana Murthy's Catamaran Ventures that launched in 2014, is one of Amazon India's top sellers.

To comply with India's foreign direct investment (FDI) requirements for the e-commerce sector, the ecommerce marketplace was obliged to reduce its ownership from 49 percent to 24 percent in 2019.

It has since been shut down as new regulations prohibit a business administering an online marketplace and its group firms from owning equity in any of the platform's merchants or having influence over their goods.

Prione has a business-to-business (B2B) division that helps small and medium-sized businesses sell online by categorizing their listings

The onboarding process for Prione employees has begun, and Amazon has hired First Advantage, a third-party agency, to undertake background checks on the staff.

Prione has assured its staff that its Bengaluru office in Langford Town will remain open.

Cloudtail has also written contract termination warnings to its vendors, stating that it is in the process of suspending the listing and selling of products on the Amazon marketplace in the ‘near future’ and that it would stop receiving purchase orders on April 18.

Aside from Cloudtail, Prione has a business-to-business (B2B) division that helps small and medium-sized businesses sell online by categorizing their listings. Prione offers teams dedicated to onboarding local businesses and new sellers on Amazon Food, Amazon Pay, and other platforms.

Cloudtail was instrumental in Amazon's early success in India. Its financial statements reveal its size. Cloudtail's revenue grew by more than 45 percent to Rs 16,639 crore in FY21, with a profit of over Rs 182 crore.

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