Amazon.in sells much of its stake in the local Venture Cloudtail to bring back thousands of products on its online platform which earlier had to be removed to comply with the new regulations imposed by the government.
Thousand of products were not available for sale since February 1 cause the new guidelines barred the e-commerce biggies to sell the products from a merchant in which it has itself invested. Thus to comply with this rule Amazon sold much of its stake to Prione Business Services, a business entity owned by Narayan Murthy‘s Catamaran services.
The hastily finished deal, allowed Amazon to bring back thousand of its products back on the virtual shelf for selling which earlier had to be removed in the wake of new FDI policy implemented by the BJP government, ahead of the 2019 general election.
The deal brings relief to Amazon cause the new regulations disrupted its business very badly and now after the deal Amazon, to some extent is able to resume its business like it did earlier. Amazon and Walmart has been investing heavily in the Indian E-commerce market which is mushrooming very rapidly and has potential of expanding much more in the coming years, as India being such a large and diverse market where a lot of potential is still untapped.