Amazon India has announced a significant investment of $120 million from its Smbhav Venture Fund. This funding aims to support Indian startups in the fields of manufacturing and artificial intelligence (AI). This move is part of India’s goal to become a global manufacturing powerhouse while also creating jobs.
Details of the Investment
The announcement was made during the Smbhav summit held in New Delhi, showcasing Amazon’s dedication to India’s growth. The theme of the summit was Naye India ki Nayi Raftaar, which translates to “New India’s New Speed.”
The Smbhav Venture Fund was launched in 2021, initially focusing on sectors like agriculture and healthcare. Over time, it has expanded to support startups in various fields, including direct-to-consumer brands, fintech, gaming, and now, manufacturing.
With this latest funding boost, the total amount in the Smbhav Fund has reached $350 million. The fund’s goal is to help modernize consumer goods manufacturing for both domestic and international markets. Previous beneficiaries, like The Good Glamm Group and FreshToHome, have shown incredible growth thanks to technological support from this initiative.
Supporting the Government’s Vision
In close cooperation with the Department for Promotion of Industry and Internal Trade (DPIIT), the fund is aligned with the government’s vision called Viksit Bharat. This vision aims to elevate India to a developed economy status by 2047.
During the summit, Amazon shared its broader ambitions for India, which include:
- Digitizing 10 million small businesses
- Generating 2 million new jobs
- Achieving $20 billion in e-commerce exports by 2025
Amazon’s History in India
Amazon’s commitment to India began in January 2020 when founder Jeff Bezos announced a $1 billion investment at the first Smbhav event. He emphasized plans to:
- Digitize 10 million small and medium-sized businesses (SMBs)
- Facilitate $10 billion in exports
- Create 2 million jobs by 2025
Focus on AI Startups
In addition to manufacturing, Amazon is also making strides in AI. Recently, AWS (Amazon Web Services) selected seven Indian generative AI startups for its accelerator program. These startups, like Convrse and Neural Garage, received $1 million in AWS credits to help further their innovative work.
The 10-week accelerator program connects these startups with mentors in business and technology from AWS and NVIDIA. This support helps startups develop, train, and scale their AI solutions effectively.
Other major tech companies, like Google and Microsoft, are also investing in similar programs to boost AI startups in India.
Conclusion
Amazon’s $120 million investment in Indian manufacturing and AI startups shows a strong commitment to the country’s growth. This funding not only aims to boost local businesses but also aligns perfectly with India’s broader development goals. As India works towards becoming a global manufacturing hub and leader in technology, these initiatives could pave the way for significant advancements and job creation in the coming years.