As closure is near, Amazon may absorb 400 Cloudtail India employees
Cloudtail India employees – Amazon India is expected to make employment offers to roughly 400 Cloudtail India employees, as the e-commerce behemoth’s top seller is set to shut down soon. Cloudtail India’s transition of services has begun, according to sources close to the company, with inventory shifting to other merchants. According to its official LinkedIn page, Cloudtail India employs 445 people in India and was founded in 2014 as a joint venture between Catamaran Ventures, N.R. Narayana Murthy’s family office, and Amazon India.
“Amazon will make job offers to Cloudtail staff, and they will have the option of continuing or not,” one of the insiders added. Amazon India has acquired 76 percent of Catamaran Venture’s share in Cloudtail for an undisclosed sum, making Cloudtail India a wholly-owned subsidiary of the e-commerce giant.
According to sources, Amazon’s plan to shut down Cloudtail India is motivated by India’s proposed e-commerce regulations, which prevent online marketplaces from owning any direct investment in seller companies. Amazon’s senior leadership in India has attended a series of meetings with government officials, during which foreign e-tailers have expressed dissatisfaction with several of the planned laws, which they believe will suffocate the industry.
Business Today emailed detailed questions to Amazon India and Catamaran Ventures, but received no answer. According to consultancy firm RedSeer, Amazon and Walmart-owned Flipkart dominate India’s e-commerce business, with a combined market share of more than 80%. Homegrown business behemoths like Reliance and Tata Group, on the other hand, are actively making inroads into the $50 billion internet shopping industry.
Amazon might absorb Cloudtail India employees
The joint venture, which was up for renewal on May 19, 2022, will cease to exist, according to a joint statement made by Amazon India and Catamaran Ventures last year. Cloudtail India, according to the firms, has helped over 300,000 sellers and entrepreneurs to get online, and the top seller has also enabled 4 million merchants to accept digital payments.
However, numerous retail trade associations have claimed that Cloudtail India was responsible for more than 90% of all Amazon sales, putting other vendors at a disadvantage.
Amazon, for its side, has insisted that it was following the rules, which specify that no single vendor on an online marketplace can account for more than 25% of total sales.
Cloudtail India’s net earnings increased 171% year on year (YOY) to Rs 183 crore in FY21, according to regulatory filings.
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