Startups, investors bet big on rural commerce

Internet penetration, UPI major factors to push this trend

- S SHANTHI

AS INTERNET PENETRATION deepens across rural India, consumerism in these regions is surging, drawing the attention of startups and venture capitalists eager to tap into this expanding market.

From online marketplaces and direct-to-consumer (D2C) brands to logistics providers and retail software-as-a-service (SaaS) platforms, a growing number of companies are targeting rural commerce as the next big growth frontier.

New and innovative business models have emerged to cater to the distinct needs of rural India. One such approach is assisted e-commerce, where local entrepreneurs, known as "Hesaathis," help villagers order products online, bridging the digital divide.

"This model makes online shopping accessible to those unfamiliar with technology," said Somdutta Singh, founder and CEO of Assiduus Global and investor at Karma Holdings.

Venture capitalists have taken note of the opportunity. This month, rural commerce startup Rozana secured $22.5 million in a funding round led by Bertelsmann India Investments (BII), with participation from Fireside Ventures and existing investors, including 3one4 Capital.