Cloudtail is a company formed as a partnership between Catamaran and Amazon India back in 2014. Its main objective is to provide training and support to merchants looking to join and sell products on Amazon’s e-commerce platform.
Between 2022 and March 2023, Cloudtail’s revenue surged to Rs 3,100 crore (approximately $370 million). Additionally, Catamaran has diversified its investment portfolio over the last ten years, backing various startups such as Paper Boat, Acko, Udaan, Dailyhunt, Reddit, SpaceX, Log 9, and Udaan. Catamaran typically opts for small minority stakes in these ventures, usually less than 5-10%.
Cloudtail, initially formed as a collaboration between Catamaran and Amazon India in 2014, aimed to facilitate the training and integration of merchants onto Amazon’s e-commerce platform. As it expanded, it emerged as Amazon’s most significant merchant. However, shifts in e-commerce regulations imposed limitations on marketplaces holding direct interests in their merchants. Consequently, Amazon scaled down its ownership in Cloudtail from 49% to 24%. This adjustment presented an opening for Catamaran to elevate its investment in Cloudtail.
Cloudtail’s profitability between FY19 and FY21 enabled it to secure a substantial loan of Rs 1,750 crore ($211 million) from HSBC in FY22. Despite its initial success, Cloudtail encountered challenges, leading to the announcement of ceasing its operations as a merchant starting in 2022. This strategic shift resulted in a significant decline in Cloudtail’s sales, dropping from over Rs 19,000 crore ($2.3 billion) in March 2022 to Rs 3,100 crore ($370 million) by March 2023.Alongside its involvement in Cloudtail, Catamaran has diversified its investment portfolio by supporting various startups over the past decade. These include ventures such as Paper Boat, Acko, Udaan, Dailyhunt, Reddit, SpaceX, Log 9, and Udaan. Catamaran typically opts for small minority stakes, usually less than 5-10%, in these investments.