To interact, expertise, and digitally empower artisan and weaver communities across the country, Amazon is collaborating with government organisations including TRIFED and NEHHDC. Amazon announced a USD 250 million (approximately Rs 1,873 crore) fund on Thursday, in order to concentrate on digitising small and medium enterprises and accelerating innovation in India’s agri-tech and health-tech sectors.
“Small and medium-sized enterprises are often the engine and lifeblood of economies, and I believe this is also true in India. And we’re committed to helping SMBs accelerate their growth and contribute to India’s economy “Andrew Jassy, CEO of Amazon Web Services.
Amazon has announced a new USD 250 million Amazon Smbhav Venture Fund, following up on its announcement from last year. During the second Amazon Smbhav case, Jassy, who will take over as CEO of Amazon Inc later this year, said that Amazon wants to help more SMBs start new businesses.
At the inaugural edition of Amazon Smbhav in January 2020, Amazon CEO Jeff Bezos announced a USD 1 billion investment to digitally empower 10 million Micro, Small, and Medium Enterprises (MSMEs), enable USD 10 billion in e-commerce exports, and build one million new jobs in India by 2025.
Amazon announced earlier this month that it has added more than 2.5 lakh new sellers since the announcement, and that its Global Selling programme has allowed more than USD 3 billion in exports. A total of one million jobs have also been generated by the e-commerce behemoth.
Amit Agarwal, Amazon India’s Global SVP and Country Head, said, “The fund aims to inspire and attract the best ideas”. “The fund will concentrate on three main priorities: SME digitisation, agri-tech advances to increase farmer productivity and scope, and health-tech to provide universal and high-quality health care for people,” he added.
Amazon has announced an investment in ‘M1xchange,’ a start-up that focuses on invoice discounting marketplace exchange for MSMEs, developed under the TReDS licence, as part of the venture fund (Trade Receivables Discounting System license). M1xchange’s marketplace exchange links MSMEs with banks and financiers (and vice versa), allowing an MSME to allocate its invoice dues to a bank or financier, and obtain financing at better rates, thus resolving MSMEs’ payment challenges. According to Agarwal, Amazon is “committing to get one million local shops online on Amazon by 2025” as part of its Local Shops initiative.
The software, which connects local kirana stores to the internet, has expanded tenfold in the last six months, reaching more than 50,000 offline retailers. “Furthermore, we’ve realised that an Aatmanirbhar Bharat is only possible if you invest in empowering India’s various regions. As a result, we’re launching a new initiative called ‘Spotlight Northeast’ today “he said.
Amazon hopes to put 50,000 artisans, weavers, and small businesses from the eight states of India’s North East online by 2025, as well as raise exports of key commodities such as tea, spices, and honey from the area. The company will open a dedicated North East storefront on its website, to showcase exclusive GI items and secret gems such as Chakshesang Shawls from Nagaland, Muga Silk from Assam, various styles of weaves such as Moirang Phee from Manipur, and teas and spices such as the Mizo Chilli, company is collaborating with government organisations including TRIFED and NEHHDC.
