MICROCAPITAL BRIEF: Amazon Opening “Digital Kendra” Storefronts to Support MSME Growth, Digitization in India

US-based retailer and technology company Amazon recently launched its first Digital Kendra customer service location to assist micro-, small and medium-sized enterprises (MSMEs) in India in making more digital sales. The firm plans to open more Digital Kendras to deliver assistance with education regarding e-commerce, digital marketing services, logistics, shipping and taxation. Digital Kendras also will help MSMEs with registering as “sellers on Amazon.in or engaging with other Amazon programs.” Amazon plans to hire local firms to manage and establish the locations. The word kendra means center in Hindi.

The Head of Amazon India, Amit Agarwal, stated, “Last year at [our conference titled] Smbhav, we had announced that Amazon will invest USD 1 billion in India to help digitize 10 million Indian MSMEs by 2025. And today, we take one more important step towards that goal as we open our first Amazon Digital Kendra in Surat, Gujarat. This is an earnest endeavor to bring the right tools, support and services infrastructure closer to where MSMEs are based and help them benefit from e-commerce.”

As of June 2020, Amazon reported quarterly net income of USD 5.2 billion on net sales of USD 89 billion.

By Harriet Ritchie, Research Associate

Sources and Additional Resources

Amazon press release
https://press.aboutamazon.in/news-releases/news-release-details/shri-vijay-rupani-honble-chief-minister-gujarat-inaugurates

Amazon homepage
https://www.amazon.com/

Amazon June 2020 financials
https://s2.q4cdn.com/299287126/files/doc_financials/2020/q2/Q2-2020-Amazon-Earnings-Release.pdf

Smbhav Summit homepage
https://www.smbhav.com/

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