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Amazon Cuts India Deal to Return Products to Website

  • The e-commerce giant inked pact to comply with new regulations
  • The rules have upended Amazon’s and Walmart’s India plans
A worker uses a forklift to remove a pallet of goods from a storage rack in an aisle at the Amazon Inc. fulfillment center in Bengaluru, India.
Photographer: Ruhani Kaur/Bloomberg Inc. resurrected thousands of suspended product listings in India by selling much of its stake in top local venture partner Cloudtail, a hastily arranged deal intended to comply with stringent new e-commerce regulations that upended the market.

With the transaction, Cloudtail resumed selling products as of midnight, people familiar with the matter said. The Amazon entity sold 25 percent of its shares to Prione Business Services Pvt, a company run by billionaire Narayana Murthy’s Catamaran Advisors LLP. Prione now owns 76 percent of the venture from 51 percent previously, they said. The remaining 24 percent is now owned by a non-Indian arm of the U.S. retailer’s called Amazon Asia-Pacific Resources Ltd, they said, asking not to be identified talking about a private matter.