Amazon unveils $250 mn venture fund to invest in Indian tech startups

April 15, 2021: In the opening session of its event Smbhav, Amazon India today announced a $250 million Amazon Smbhav Venture Fund to invest in startups and entrepreneurs focusing on technology innovations in SMB digitization, agriculture and healthcare.

“The venture fund will invest in technology-led startups that are passionate about unlocking possibilities of a digital India. The venture fund will specifically focus on encouraging the best ideas to digitize SMBs (small & medium businesses), drive technology-led innovation in agriculture to improve farmer productivity and enable them to bring the best of India’s farms to consumers, and enable universal and quality healthcare access for all using technology,” reads the release.

Two additional focus areas for the fund will be agriculture and healthcare. Towards this objective and as part of the venture fund, Amazon announced an investment in M1xchange– a startup focusing on invoice discounting marketplace exchange for MSMEs (Micro Small and Medium Enterprises) established under the TReDS license (Trade Receivables Discounting System license).

Amazon also announced plans to digitally empower and bring 1 million offline retailers and neighbourhood stores online, on the Amazon India marketplace, by 2025 through the Local Shops on Amazon programme. At the same event, Amazon also launched the ‘Spotlight North East’ initiative to bring 50,000 artisans, weavers and small businesses online from the 8 states in the North East region of India by 2025 and to boost exports of key commodities like tea, spices and honey from the region.

Amit Agarwal, global senior VP and country head, Amazon India said, “In 2020, we pledged to digitize 10 million SMBs, enable $10 billion in exports, and create 1million jobs by 2025. The launch of the Amazon Smbhav Venture Fund aims to attract the best ideas and empower entrepreneurs in the country to partner in this vision. Additionally, our initiatives to onboard 1million offline shops on Amazon.in and digitally empower the North East region will accelerate the progress towards a digital and self-reliant India.”