Bad News By Amazon Amazon India is going to discontinue the services of its top seller Cloudtail within the next month, as India\u2019s regulatory watchdog FDI approves the Amazon\u2019s bid to fully acquire Catamaran\u2019s parent company Prione Business Services which will end the contract between the American company and Infosys founder NR Narayana Murthy\u2019s investment office. The contract was to expire by May 19, 2022 but Cloudtail is likely to shut down sooner, according to sources.\r\n\r\nPrione and Amazon\u2019s stake in Catamaran\r\nCatamaran owns 76% in Prione and the rest is owned by Amazon. Earlier, the Jeff Bezos-owned company held 49% but the e-commerce giant was forced to trim its stake in the year 2019 to 24% to be in compliance with the new foreign direct investment (FDI) regulations for ecommerce.\r\nThe price at which Catamaran is selling its stake to Amazon could not be determined immediately.\r\nAmazon is probably not going to set up another joint venture to have a seller similar to Cloudtail, those aware of the thinking within the American company said.\r\nPrione\u2019s existing business of onboarding sellers to the Amazon India marketplace through its fleet on-street team is going to continue normally, sources said.\r\n\r\n\r\n\r\n\r\n\r\n\r\nCloudtail is Amazon India\u2019s largest seller\r\nThe current inventory held by Cloudtail which is one of the largest sellers on Amazon India will need to be distributed to other vendors and sellers. This exercise is likely to begin when the Amazon Catamaran transaction closing is near, according to people aware of plans.\r\nAmazon India has been trying to reduce its own dependency on Cloudtail after the FDI rules tightened in ecommerce but it still remains one of Amazon\u2019s largest sellers. Cloudtail\u2019s closure is likely to have a huge impact, given its crucial role in allowing Amazon India to service a bulk of consumer orders in a speedy manner.\r\n\r\nWhat will happen to Cloudtail\u2019s employees?\r\nCloudtail\u2019s current has approximately 1,200 employees, and they are going to be treated as Amazon\u2019s employees once the transaction closes. \u201cCloudtail and Prione will be Amazon\u2019s assets and liabilities,\u201d sources said. However, it is not yet confirmed if Amazon is going to take in all the staff.