Amazon announces $250 million fund to digitise small and medium businesses in India

E-commerce giant Amazon announced a USD 250 million (about Rs 1,873 crore) fund on Thursday that will focus on digitising small and medium businesses. It will be also be used for innovation in India's agriculture technology and healthcare technology sectors.

Building brand new businesses

Andy Jassy, who is set to succeed Jeff Bezos as Amazon's chief executive officer later this year said that small and medium-sized enterprises play a significant role in the economy of the country. He unveiled a $250 million investment that would be spent on startups working on businesses and healthcare solutions. He mentioned that Amazon aims to help small and medium-sized businesses.

"Small and medium-sized enterprises are often the driver and lifeblood of economies, and I believe this is also true in India. And we're very enthusiastic about assisting SMBs in accelerating innovation and the economy in India," he said.

Amit Agarwal, Amazon India Global SVP and Country Head India, said that the fund is aimed at inspiring the best ideas and attracting entrepreneurs. He said that the focus is on three sectors—SME digitisation, agriculture technology and health care technology. Amazon has announced an investment in Mixchange, a startup whose priority is to invoice discounting market place exchange for MSMEs established under the TReDS license (Trade Receivables Discounting System license). Mixchange connects MSMEs with banks and financiers and vice-versa through a marketplace exchange. Amit Agarwal said under the local shops' programme, they aim to bring one million local shops online on amazon by 2025.

Smbhav Virtual Summit

Amit Agarwal said under the local shops' programme, they aim to bring one million local shops online on Amazon by 2025. Meanwhile, starting from April 15, Amazon is organising a virtual summit in the country named "Smbhav” (possible), to showcase opportunities offered by the US firm to allow small businesses to sell online. However, thousands of small Indian businesses are opposing the government's decision. Thousands of small Indian businesses are set to organise an event this week in protest against the business practices of foreign e-tailers such as Amazon, by taking a dig at the company’s virtual summit with their own event.

(Image Credit: AP)