Amazon declares acquisition of Prione to strengthen e-commerce biz

Amazon has recently announced its plans to acquire Prione Business Services, which is a joint venture between the Ecommerce conglomerate and Narayan Murthy-run Catamaran.

As per credible reports, Prione is a completely owned subsidiary of Cloudtail India which is the biggest seller on Amazon. Moreover, Cloudtail has a strong presence in the Amazon marketplace in India amongst categories like electronics, fashion and smartphones.

Amazon and Catamaran have issued a statement in which they have assured the continuation of the joint venture business under the governance of present management and on the receipt of the regulatory agreement.

Reportedly, Prione and Cloudtail board will aim for measures to complete the business in agreement with the applicable laws.

Catamaran and Amazon have decided to call off their joint venture after May 2022. The decision has been made after Supreme Court ruled out allowance of antitrust watchdog- Competition Commission of India (CII)- to carry out investigation in the anti-competitive practices of Amazon and its equivalent Flipkart.

As per the Indian foreign direct investment (FDI) norms made in the Press Note 2 amendment, foreign-owned ecommerce products have been forbidden to be given privileged treatment to the seller. Additionally, they have also been barred from selling commodities of sellers or firms they have a stake in.

Furthermore, following Press Note 2, Catamaran Venture increased its stake in the Prione Business Services from 51% to 76%. However, Amazon on the other place reduced its shareholdings to 24%.

About Catamaran

Catamaran is a catalyst for developing advanced and innovative businesses across India which manages almost $1 billion across asset classes. Following the principles of Mr. Narayan Murthy, Founder of Infosys and Catamaran, the profile of the conglomerate represents firms with great ambition, honor and grit required to convert bold ideas into successful enterprises.

Source credit:- https://www.businessinsider.in/business/startups/news/amazon-acquires-its-largest-seller-cloudtails-subsidiary/articleshow/88433863.cms