Amazon’s Smbhav Venture Fund to invest $120 million in manufacturing and AI startups

The Department for Promotion of Industry and Internal Trade (DPIIT) has signed an MoU with Amazon Smbhav Venture Fund to boost the government’s key priority of establishing India as a global manufacturing hub and creating thousands of jobs.

Recently, DPIIT partnered with Walmart-owned Flipkart to support and empower tech startups in India.

Allocating $120 million to invest in startups

Amazon has earmarked $120 million from its Smbhav Venture Fund to invest in startups that digitise consumer goods manufacturing in India and cater to both domestic and global demand.

The move also marks the expansion of Amazon Smbhav Venture Fund to a $350 million fund.

Launched in 2021, Amazon Smbhav Venture Fund invests in technology startups aimed at unlocking the potential of Digital India. While ASVF began with an initial focus on agriculture and healthcare, in the past few years it has extended its scope to direct-to-consumer (D2C) brands and sectors such as fintech, gaming and now, manufacturing.

ASVF's portfolio startups

Since launch, ASVF has funded several fast-growing startups such as The Good Glamm Group, FreshToHome, XYXX, Hopscotch, Fitterfly, Cashify, Acko Insurance, smallcase, and M1xchange. These companies are leveraging technology as a key growth driver and are creating impact across sectors.

“Amazon has visibility across many businesses like online shopping, media, cloud computing, logistics and transportation, packaging, AI, devices, etc. We offer our investee companies the opportunity to identify synergistic areas across the assets we’ve built where they can create and generate real value,” Abhijeet Muzumdar, Vice President & Head – Amazon Smbhav Venture Fund, told About Amazon India in a 2023 interview.

Committed to Viksit Bharat

The Amazon Smbhav Fund announcement is one of multiple initiatives launched by Amazon at the fifth edition of its annual Smbhav summit in New Delhi, strengthening the company’s commitment to ‘Viksit Bharat’.

"I am incredibly excited about the opportunities that lie ahead for Amazon in India. As one of the world's fastest-growing economies, India is a key market for Amazon and our focus areas align well with the government’s vision and priorities of digitising small businesses, boosting exports and creating jobs," said Amit Agarwal, Senior VP, Emerging Markets at Amazon.

"We are committed to investing in these key sectors and look forward to contributing to India's economic growth and the Hon’ble Prime Minister’s vision of a Viksit Bharat.”

The Smbhav summit is part of Amazon's efforts to support and empower India's small businesses, aiming to accelerate their growth across India and the world.