Amazon India has recently announced a significant investment of $120 million from its Smbhav Venture Fund to support Indian startups in the fields of manufacturing and AI. This move is in line with the Indian government’s goal of establishing the country as a global manufacturing hub and creating employment opportunities. The announcement was made during the fifth edition of Amazon’s annual Smbhav summit in New Delhi, which focused on advancing India’s digital and economic aspirations under the theme “Naye India ki Nayi Raftaar.”
Launched in 2021, the Smbhav Venture Fund initially focused on agriculture and healthcare but has now expanded to include direct-to-consumer brands, fintech, gaming, and manufacturing. With this latest investment, the fund has grown to $350 million and aims to digitize consumer goods manufacturing for both domestic and global markets. Startups such as The Good Glamm Group, FreshToHome, and Acko Insurance, which were previously funded by the initiative, have shown significant growth through the adoption of technology.
In partnership with the Department for Promotion of Industry and Internal Trade (DPIIT), the fund supports the government’s vision of transforming India into a developed economy by 2047. At the summit, Amazon also outlined its broader ambitions for India, including digitizing 10 million small businesses, generating 2 million jobs, and achieving $20 billion in e-commerce exports by 2025.
This is not the first time Amazon has shown its commitment to India’s growth. In January 2020, Amazon founder and former CEO Jeff Bezos announced a $1 billion investment during the inaugural Smbhav event. At the time, Amazon pledged to digitize 10 million SMBs, facilitate $10 billion in exports, and generate 2 million jobs by 2025.
In September, Amazon Web Services (AWS) selected seven Indian generative AI startups for their accelerator program and provided them with $1 million in AWS credits. These startups, including Convrse, House of Models, Neural Garage, Orbo.ai, Phot.ai, Unscript AI, and Zocket, were among the 80 companies selected globally for their use of AI and potential for global growth. The 10-week accelerator program connects startups with business and technical mentors from AWS and NVIDIA, providing them with resources to develop, train, test, and scale their AI solutions efficiently.
Apart from Amazon, other big tech companies like Google, Microsoft, and Reliance have also invested in specific AI cohort programs to support startups working in this space. This investment by Amazon in Indian manufacturing and AI startups is a significant step towards boosting the country’s economy and achieving its digital aspirations.
