Cloudtail Wheels Away Its Cart From Amazon

Photo by David Clarke on Unsplash

Cloudtail, one of the largest sellers on Amazon India, is all set to cease operations. Amazon will discontinue Cloudtail’s operations by the next month as the e-commerce giant has successfully bid to fully acquire the parent Prione Business Services. Cloudtail, which was a joint venture between Amazon and Infosys founder, Narayana Murthy’s investment office Catamaran Ventures, will shut its doors by May 19 as the contract comes to an end.

After eight years of corporate marriage with Amazon, Cloudtail has already started transferring its mammoth inventory and business rights to other entities ahead of its closure. A major part of the electronic inventory is going to VRP Telematics, an existing seller on Amazon India. VRP also handles Amazon’s private labels-Solimo and AmazonBasics. Cocoblu Retail will take over the fashion, apparel and accessories from Cloudtail.

Cloudtail played a huge role in the success of Amazon in India. As a Good Samaritan does, Amazon will come to the rescue of the 400+ employees who will lose their jobs as a result of this wind-up. “Amazon will place the job offers to the employees at Cloudtail and they will be free to decide whether to continue or not,” said one of the spokesperson.  

Vendors who catered to Cloudtail by supplying electronics, health and personal care and other categories are being sent new contracts for the transfer of the business.

Too long? Here’s a one-liner: Amazon’s biggest seller, Cloudtail, to shut doors from May 19 as Amazon bids to acquire its parent company, inventory contracts to other sellers are already on their way.

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