Bharat on

the Move

Artha School Of Entrepreneurship

artha.org.in
Why read this report?
At Artha, we believe that entrepreneurship is about solving
customer problems in uniquely different ways. Hence, it involves
building companies of various sizes and shapes catering to both
customer and entrepreneur ambitions.
Beyond the headlines, what often gets missed is the invisible hard
work that goes into building a business that solves a real problem,
provides value to its customers and does so consistently and
profitably over time.
One critical component of that is choosing the right market to
play in.
successfully addressed and solved for this market. The first wave of
solutions addressing these markets looked at domains from FMCG
goods to microfinance, digital vernacular content, digital payment,
rural e-commerce, tech-enabled agricultural solutions, direct access for
farmers to the end customer etc.
So, what’s new now? Why does it matter? And what could be the
playbook for success?
That is what we try to delve into through this report.

And that’s where our report comes in.

Many of the current generation of tech-led startups are solving

problems that are first and foremost of convenience; they are
addressing issues for people in urban centres/ metro cities. Think
of fast delivery. Think of mobility. Some of these models have
worked successfully in countries such as the USA and are now
being replicated in the large market that is India. The consumers
for these services are often upwardly mobile, urban citizens.

There is also an underserved market in our country. This market

consists of citizens with growing ambitions, people with access to
the digital world more than ever before and people with a specific
set of problems that innovative entrepreneurs can solve.

If the entrepreneurial ecosystem expands across every state and

district, the revolution that Nobel Prize winner Edmund Phelps
calls ‘mass entrepreneurship’ can actually occur, propelling India’s
economic growth.

It is a dual change, both from the entrepreneurial locations and

ambitions that are being seen today and from the markets/
problems they are choosing to solve. Indeed, the market is
not new. There have been companies in the past who have
Table of Contents

01 03 05
Executive Bharat: A Snapshot The Growth Drivers
Summary Propelling Bharat

09 18 21
Lessons from specific Learnings from Key Risks
sectors Investors

24
Emerging Bharat
Playbook
 Summary
Executive
Executive summary

A Snapshot
Cricket works as a pan-India analogy; we are, after all, a cricket-crazy Since the reforms in 1991, educated and upper-middle-class Indians

nation.
In the first forty years post- Independence, teams from Mumbai (then
Bombay) and Delhi won the Ranji trophy 80% of the time, which
Bharat:
have undergone a massive shift in their standard of living. This has
been supported by private sector jobs across various industries,
especially India’s IT outsourcing which has been the ‘poster child’
for the prosperity of those at the top of the pyramid. However, for

Drivers Propelling
reduced to 40% over the next 30 years. In the last few years, the India to develop as a prosperous nation, opportunities and benefits

The Growth
winning teams have been from Gujarat, Vidharbha, and Saurashtra, must be available to the millions of Indians across the country.

Bharat
among others. Many of the Indian Premier League (IPL)’s popular
players today are from smaller towns of India. Not all of them use
English as their first language or are the nattiest dressers, but they are
definitely self-assured!

Specific Sectors
Lessons From
Not just in cricket, this attitude and opportunity shift is reflected
across social structures and businesses in India.

India and Indian consumers are at the cusp of a momentous shift.

From Investors
Learnings
Key Risks
Bharat Playbook
Emerging
Bharat on the Move | 1
 Summary
Executive
A Snapshot
Bharat:
A decade ago, Delhi NCR, Bangalore, Mumbai, Hyderabad and a
few other major cities were considered the major playground for
entrepreneurs in India or the startup clusters. However, since 2015
there has been a steady rise of entrepreneurs who are focusing

Drivers Propelling
on the Indian hinterland, harnessing technology to tackle the

The Growth
complex challenges. There has been a steady shift where a large

Bharat
number of new-age businesses are not only being ideated but, in
some cases, are also being run from or catering specifically to the
consumers of Tier 2/3/4 cities. It is estimated that nearly 50% of
Indian startups are now in non-metros. Kanpur, Kochi, Trivandrum,
Udupi, Jaipur, Ahmedabad – they are all birthing and nurturing

Specific Sectors
Lessons From
aspiring entrepreneurs with disruptive ideas.

Not all of them would call themselves startups. Not all of them
would raise institutional capital. This mass entrepreneurship
and transformation would be more inclusive- with individual
changemakers, SMEs and startups.

From Investors
Learnings
We believe that young Indians from all over the country, especially
from the smaller towns, will fuel innovation in the upcoming
decade with their passion, intellect, imagination and aspirations
and collectively design India’s new growth story.

The Bharat story.

Key Risks
Bharat Playbook
Emerging
Bharat on the Move | 2
 Summary
Executive
Snapshots from Bharat

A Snapshot
Bharat:
Recently at Amazon’s
Chefjunction, whose Insta bio Located an hour’s drive
facility in Pune, a computer
has #gharseghartak as their from Nagpur in Vidarbha
science hackathon was

Drivers Propelling
hashtag was launched in 2020 by (Maharashtra) is the town of
hosted where students

The Growth
collegemates Suryanshu Panda Umred. Spread over 26,000

Bharat
from various zilla parishad
and Epari Pritam. It allows users sq ft with 42 micro units,
schools from Maharashtra
to order hygienic home cooked Umred is Bharat’s first
participated. They mostly
meals prepared by home chefs Agarbatti (incense stick) park
used Scratch, a coding
who can earn a living via this entirely managed and run
language designed for
by women. Big players like

Specific Sectors
platform. Chef junction is based

Lessons From
children. Amazon, Reliance
out of Bhubaneswar. ITC and Rangarao & sons
Foundation, Wipro,
are procuring the entire
Thought Works, Morgan
Then there is CusKart (Bokaro) coated stock from this MIDC
Stanley, BNP Paribas, UPS
a merchandise start up, Felicity cluster. This park will provide
and The Nudge are helping
(Jaipur) a start up providing employment to at least a
provide computer literacy
mental health therapy and 1000 in the future and will be

From Investors
to zilla parishad students.
online counselling at affordable a boon for farmers growing

Learnings
cost, DeHaat (Patna) an bamboos since it is an
Coding has now reached
agritech startup, The Earth important ingredient.
India’s hinterland or
Store (Dharamshala) offering
Bharat.
environment friendly products
and many more across Bharat.

Key Risks
These are not isolated stories. From inspirational and catchy Shark Tank pitches to

Bharat Playbook
emerging innovation stories, this trend is becoming deeper and broader. Let’s first look

Emerging
at understanding this new “Bharat.”

Bharat on the Move | 3

 Summary
Executive
So, who is Bharat?

A Snapshot
Bharat:
Let’s characterise to understand a composite picture of Bharat.

Is a graduate or diploma holder + interested in specific courses to upskill (online or offline).

Lives in one of the Tier 2/3/4 cities.

Drivers Propelling
The Growth
Has one or more than one sibling; multiple relatives live either in the same city or close

Bharat
ones.
Owns a two-wheeler. Sometimes the family has a car too.
For long-distance travel, uses public transport - trains and buses. Also uses flights
depending on need.

Specific Sectors
Lessons From
Uses multiple white goods/gadgets like TV, refrigerator, geyser, mixer-grinder, and audio
equipment.
Proficient in the mother tongue. Can speak enough English to get the job done.
Uses lower price range smartphones. Consumes OTT content. Sometimes, shares the OTT
account with friends to distribute the charges.

From Investors
Learnings
Likes visiting malls when visiting bigger cities.
Once a year or two, takes a trip with friends and family.
Likes to be physically presentable; follows TikTok, Insta, and FB trends.
Looks for opportunities beyond ‘sarkari naukri’ to earn a respectable livelihood.
Strongly believes their hometown needs more employment opportunities.

Key Risks
Even if working in another city, always visits home for important festivals/ celebrations/
family crises.
Bharat represents the consumer for some of the emerging innovations. And it is also home to
some of the innovators. But how did this trend develop over time?

Bharat Playbook
Emerging
Bharat on the Move | 4
 Summary
Executive
A Snapshot
Bharat:
The Growth Drivers
for Bharat

Drivers Propelling
The Growth
Bharat
By 2030, India may add nearly 90 million new households headed
by millennials born in liberalised India. This large and growing
domestic consumer market wants education, health, housing,
entertainment, jobs, convenience and more. However, the mere

Specific Sectors
Lessons From
presence of a large and young consumer population does not
automatically translate to a consistent rise in demand and, thus,
economic growth.

In terms of earnings, people with over Rs. 5 lakhs in annual

income have risen to 31% of the population in 2020 compared to

From Investors
14% in 2004-05. But an increase in earning capacity alone again

Learnings
cannot define an emerging market. Customer need and adoption
of solutions play a key role.

Key Risks
Bharat Playbook
Emerging
Bharat on the Move | 5
 Summary
Executive
If we dig deeper, there are a few important enablers for this journey:

A Snapshot
Rise of the digital natives: Usage of digital time:

By 2026, India will have 1 billion smartphone users.
By 2020, India had more internet users in rural areas than in
bigger cities.
Bharat:
Internet usage in urban and rural areas is mostly for
communication, entertainment and surfing social media.
The rise in demand for internet services in non-urban markets

Drivers Propelling
of India has been propelled by online E-learning/education,

The Growth
Young people between the ages of 15 - 24 comprise the

largest group of internet users in India, accounting for 34% of
the total number of users (IAMAI).
Indians, on average, consume 19.5GB of data/month on
their smartphones. This is 4GB more than the average
Bharat
banking/ fintech and E-health platforms/ products.
Most of this usage is on the phone. Smartphone demand
in rural Indian markets will increase at a compound annual
growth rate (CAGR) of 6% till 2026, compared to a 2.5% CAGR
for urban circles.

Specific Sectors
Lessons From
consumption in China and nearly 7GB more than the global
average. Internet usage devices in the rural market will also get a push
with the government’s plan to fiberise most villages by 2025
What this means: India has a huge number of young people on under the BharatNet program.
their phones, consuming more data than before. The question
is, how are they using this?

From Investors
Learnings
What this means: The use cases emerging are more functional,
apart from entertainment. And mobiles are leading the way for
digital usage.

Key Risks
Bharat Playbook
Emerging
Bharat on the Move | 6
 Summary
Executive
Flow of money during these digital Emerging consumer class:
moments:
Consumer spending in India is expected to reach $6 trillion

A Snapshot
Digital transaction volume has risen from INR 2,071 by 2030 (WEF-Bain). Online shoppers in India are expected

crore in FY 2017-18 to INR 8,840 cr in FY 2021-22.
The UPI transaction volume increased from INR 4.38
million in Feb 2017 to INR 7,534.76 million in Feb 2023.
Bharat:
to reach ~500 Mn in 2030 from +150 Mn in 2020. Rural per
capita consumption will grow 4.3 times by 2030, compared
to 3.5 times in urban areas.
This consumer class is highly aspirational and values quality

Drivers Propelling
What this means: : Not only are more people online, it’s and convenience when it comes to products and services.

The Growth
Bharat
easier to pay online through multiple digital means. But They are also more open to trying out new products and
people serving the market need to understand more brands.
about what people are ready to pay the price for.
According to Amazon’s Great Indian Shopping Festival
figures in 2022, 70% + customers are from Tier 2&3 cities.

Specific Sectors
More than 1.5 million new customers shopped for fashion

Lessons From
and beauty products, of which more than 85 per cent were
from Tier II cities and beyond.

What this means: Fashion, beauty and lifestyle might be the

From Investors
more easily accessible online products. But where’s the deeper

Learnings
change emerging in terms of unmet needs in the market?

Key Risks
Bharat Playbook
Emerging
Bharat on the Move | 7
 Summary
Executive
Job growth and investments

A Snapshot
India added over 17 million jobs in 2021, indicating a path to recovery

Bharat:
in the labour market with the fading of the COVID-19 pandemic.

However, given the global market considerations, questions

about having enough formal jobs are emerging despite strong

Drivers Propelling
growth estimates. The vibrant startup ecosystem, with over 92K+

The Growth
startups as of 2023, is also emerging as an option to consider for

Bharat
many enterprising Indians. But recent funding winter and market
conditions have not been easy to navigate.

India’s growing consumer market, with a population of over 1.3

billion people, presents significant investment opportunities in

Specific Sectors
Lessons From
sectors such as e-commerce, retail, and consumer goods.

The government of India has launched several initiatives to promote

investment in the country, namely, InvestIndia, Make-in-India and
Digital India promoting manufacturing and offering seamless
digital infrastructure and connectivity.

From Investors
Learnings
India is also one of the world’s largest renewable energy markets,
with significant investment opportunities in the solar, wind, and
hydropower sectors. The government of India has set ambitious
targets for renewable energy capacity and is providing several
incentives and support measures to encourage investment in the
sector.

Key Risks
What this means: : Beyond just providing jobs, focusing on
building more job-creators with the right incentives for innovation
and growth can be a game-changer in the story.

Bharat Playbook
Emerging
Bharat on the Move | 8
 Summary
Executive
Let us look at the key learnings from a few companies that are already operating
from/for this emerging Bharat market.

Sector 1 : Learning the

A Snapshot
Bharat:
language of Bharat Content creators have understood that Bharat
Language is a means to express ourselves to the world, likes to ‘think local, act local’; thus, narratives

Drivers Propelling
To convey and communicate ideas, information and keep small-town India as the main protagonist.

The Growth
messages The success of web series like Panchayat, Gullak,

Bharat
, not only for the present generation but for the future. Tabbar, Aranyak etc. brings the point home.

In the 1990s, MTV introduced Indians to international According to a study on ‘Audio OTT market size
One of the biggest drivers
music and music videos wherein Indians got forecast in India FY 2021-2030’ (Statista, 2021), the
for the rise of audio OTT is
used to a channel playing music non-stop. With

Specific Sectors
forecast size of the audio OTT market in India

Lessons From
regional content.
the advent of the iPod and smartphones, people is expected to grow up to $1.1 billion in the next
started getting hooked to an unlimited supply of four years and up to $2.5 billion by the end of the
“Regional content is the
tunes while going about their daily activities. Once financial year 2030.
big thing already. It’s
the behaviour pattern started falling in place, other
the fastest-growing sub-
forms of infotainment - podcasts, audiobooks, and India ranks third in podcasts (post-USA and
segment, recording over 70
OTT started claiming their share of the pie.

From Investors
per cent growth in streams China) with 50 million + listeners. A large part of

Learnings
for Wynk. The consumer, that growth took place during the pandemic.
Digital has emerged as a significant contributor India’s podcast landscape comprises 40+
after solving for access and
to this shift towards on-demand content. Content multilingual podcast companies across various
quality, has started opting
creators, brands and companies understand that languages catering to nearly 200 million active
for local language and
while a certain section of Indians may consume monthly users.
content in English (which 10-12% of the population
regional artists,”
thinks in), Bharat, with nearly 120 languages and

Key Risks
according to If you connect the dots, the audio ecosystem
dialects, demands vernacular content, which is (phone, smart speaker, smart cars, AirPods) is
a large market. Not only does regional language
Adarsh Nair
CEO, Airtel Digital. already there. This decade could be for audio.
involve nuances that a particular audience loves/ But can it make business sense and provide
(Business Today. August 7, 2022).
relates to, but a chunk of Indians also prefer voice business value? Let’s look at a couple of
search to traditional googling. Brands have started

Bharat Playbook
examples from companies that are building for
collaborating with local content creators.

Emerging
this market.

Bharat on the Move | 9

 Summary
Executive
Kuku FM

A Snapshot
Bharat:
An audio podcast company, they are redefining traditional radio by allowing
listeners to discover new, diverse audio content in various Indian languages.
Through specially curated content via audiobooks, audio stories, podcasts and

Drivers Propelling
The Growth
courses, it augments the lives of millions of listeners.

Bharat
Their subscription-based platform, available on Androids, Jio store, and iOS,
allows listeners a wide variety of genres like sports, politics, spirituality and more.
Users can search for broadcasting titles based on the keywords.

Specific Sectors
Lessons From
They started with Hindi language content but now provide audio content across
seven languages - Hindi, Kannada, Tamil, Bengali, Malayalam, Telugu, and
Bengali. to reach 10 million paid subscribers by 2023.

Founded: 2018

From Investors
Learnings
Founders: Lal Chand Bisu (CEO), Vikas Goel (Co-founder) and Vinod Kumar
Meena (Co-Founder)
Stage: Series B
Funding: Total funding of $47.3M over five rounds. Their latest funding round
was a Series B round on August 29, 2022, for $21.8M. Main investors across

Key Risks
rounds - Fundamentum, Paramark Ventures, Krafton, KB Investment
Key competitors: Spotify, PocketFM, Storytel

Bharat Playbook
Emerging
Bharat on the Move | 10
 Summary
Executive
Pratilipi

A Snapshot
As one of India’s largest digital storytelling platforms, Pratilipi enables users to

Bharat:
publish and read stories, poetry, essays and articles in multiple Indian languages
- Hindi, Bengali, Gujarati, Kannada, Malayalam, Marathi, Tamil, Telugu, Urdu,
Punjabi and Odia. They can also rate content posted by members. The app is
available on both Android and iOS platforms.

Drivers Propelling
The Growth
Pratilipi has over 7 lakh writers and has published over 9 million stories in twelve

Bharat
Indian languages. In addition, the platform has over 25 million active readers (as
of 2022). Over the years, the company has launched various sub-categories and
sub-products - Pratilipi literature, Pratilipi comics and Pratilipi FM. The comics
and FM categories have over 8 lakh and 3 lakh active users, respectively (2021).
Daily active users currently spend 90 minutes per day, and premium subscribers

Specific Sectors
Lessons From
spend around 3 hours/day.

Pratilipi has acquired IVM podcasts, The Write Order and Westland Books.

Founded: 2014

From Investors
Founders: Founders: Ranjeet Pratap Singh, Rahul Ranjan, Sankarnarayan

Learnings
Devarajan, Sahradayi Modi and Prashant Gupta
Company stage: Series D
Main competitors: Sutradhar, Storymirror
Funding: raised a total funding of $80.7M over eight rounds. Their latest funding
round was a Series D round on June 08, 2021, for $50.2M. Krafton Inc, Omidyar

Key Risks
Network India.

The key learning: As more companies such as Kuku FM and Pratilipi find growth and
investments, what is clear is that companies operating in this market have to really

Bharat Playbook
understand regional market nuances and expectations. Pricing and go-to-market

Emerging
strategies would play a key role in enabling success.

Bharat on the Move | 11


Sector 2 : Personalising and
localising e-commerce
Consumer behaviour in India is undergoing a massive shift.
The Indian e-commerce market is expected to grow to $350 billion by 2030, and social
commerce is poised to grow to $16-20 billion in FY25. After getting urban India hooked
on online shopping and doorstep delivery, the Indian e-commerce sector is shifting its
focus towards the non-urban Tier 2/3/4 markets.
Leading social commerce platforms are bringing
aspirational brands to non-metro Indian towns via
a content-driven approach. Rather than follow only
what paid advertising mentions, Indian consumers
“The market
have started paying attention to people they relate
opportunity for rural
to/ influencers at local levels. The non-metro-living
commerce is huge;
Indians are getting more assertive about how they
the largest customer
live, work, shop and entertain. It has been noticed that
base still resides in
close connection with small-town/ local social media the remotest village.
influencers helps in seamless acceptance within the
Identifying this
community. Social commerce has paved the way for
correct pain point of
a power shift from large organisations and brands to
e-commerce business
content creators and D2C brands.
in rural India, business
models will thrive,”
There is increasing acceptance of user-friendly apps and
interfaces which support voice-assisted navigation in
according to
Indian languages and focuses on resolving consumer
complaints. The introduction of EMIs, Buy-Now-Pay-
Mitesh Shah
Later, and reward programs, besides widely used digital Co-founder,
payment methods, UPI and co-branded credit cards
Inflection Point Ventures
apart from cash on delivery are multiple factors resulting
as said in an interview on
in Bharat’s wide acceptance of e-comm and social
Entrepreneur.com.
commerce. Today, nearly all PIN codes are served by
e-commerce, bridging geographic and linguistic divides
Summary
Executive
and offering a wide selection of products (local as well
as global). Seller growth in India has outpaced e-retail
A Snapshot
growth, with approximately 40% of new sellers coming
Bharat:
from tier-2 or smaller cities.
Multiple government initiatives need to be
acknowledged behind the e-commerce boost in
Bharat - Digital India, Skill India, Startup India, Make
Drivers Propelling
The Growth
in India, and JAM (Jan Dhan, Aadhaar and mobile).
Bharat
The government has also proposed a plan to develop
modern warehousing zones through a public-private-
partnership model, which will include cold-storage
facilities – an indispensable element in the supply chain
of e-commerce platforms. The Open Digital Network of
Specific Sectors
Lessons From
Commerce (ONDC) is another ongoing innovation that
can help in large-scale innovation and democratisation
of the world of e-commerce, notwithstanding the
player’s size.
E-commerce models, both B2B and B2C that are
From Investors
resilient and meet the need gap of the market will
Learnings
continue to gain market share in Bharat. The Kirana
model, too, continues to show potential when it comes
to first-mile pickup and last-mile delivery. Micro-
entrepreneurship and trust are two sustainable ways to
make inroads in the e-comm space in Bharat. Digital
platforms, especially B2B aggregators and traditional
Key Risks
FMCG and FMCD, provide access to these markets.
This will significantly increase the efficiency of the
non-metro supply chain helping companies make a
profit.
Bharat Playbook
Emerging
Bharat on the Move | 12
 Summary
Executive
Meesho

A Snapshot
Bharat:
An online marketplace and reselling platform for multi-category products,
Meesho allows users to browse, share, buy & sell products at discounts via social
media platforms like WhatsApp, Facebook and Instagram across categories like

Drivers Propelling
fashion, home & kitchen essentials, beauty & health essentials among others. The

The Growth
Meesho app is available at both - Google and Apple Play stores.

Bharat
Not every reseller across Bharat had the same access. Small businesses that
function from different parts of the country cannot always trust each other
enough to offer cash-on-delivery (CoD) options or ensure a return policy for the

Specific Sectors
end customer. With 2.6 million+ resellers and 20,000+ suppliers from more than

Lessons From
500 towns, Meesho became this bridge between supplier and reseller. However,
it is not an easy market to operate in. And as innovations such as the ONDC take
shape, the broader market shifts will keep evolving.

From Investors
Founded: 2015

Learnings
Founders: Vidit Aatrey (Co-Founder & CEO), Bhaumik Gondaliya (Co-Founder),
Sanjeev Barnwal (Co-Founder).
Stage: Series F
Competitors: Glowroad, Shop101, BizzTM, Wooplr

Key Risks
Funding: Meesho has raised a total of $1.1 billion via 11 rounds of financing.
Meesho had earlier said that it was looking forward to an IPO in early 2023,
depending on internal growth and market conditions. (Source: Tracxn)

Bharat Playbook
Emerging
Bharat on the Move | 13
 Summary
Executive
Coutloot

A Snapshot
Bharat:
India’s largest offline-to-online social commerce platform that connects local
sellers with buyers who can bargain and shop online. It offers a wide range of

Drivers Propelling
products across electronics, fashion, home décor and other categories catering

The Growth
to value-conscious consumers. It also provides end-to-end solutions such as

Bharat
listing, logistics, marketing and design for the sellers. It works with over 3.2
million registered stores serving 500 million+ buyers in 33k+ PIN codes. Coutloot
has several initiatives to support local businesses and women’s empowerment,
including partnering with Facebook Marketplace and WhatsApp Business to
expand its reach and scale.

Specific Sectors
Lessons From
Founded: 2016
Founders: Jasmeet Thind and Mahima Kaul
Stage: Pre-Series B

From Investors
Learnings
Main competitors: Meesho, Glowroad, Shop101, Bikayi investors.
Funding: raised a total funding of $41.5M over 13 rounds. Their latest funding
round was a Pre-Series B round on September 14, 2021, for $8M. Ameba Capital,
SOSV, 9Unicorns, Artha India Ventures and Venture Catalysts are some of their
investors.

Key Risks
The key learning: Knowledge about the local festivals when maximum
purchases happen, direct communication with the consumers, education on

Bharat Playbook
concepts such as refunds, exchange and other benefits to build trust and higher

Emerging
adoption of/collaboration with ONDC could be key drivers for this segment.

Bharat on the Move | 14


Sector 3 : Bringing predictability
to farming income and yield
India has a long history of agriculture providing
livelihood to over 40% of the population and
contributing to a significant share of the GDP.
India’s agriculture sector suffered due to multiple
factors like colonial exploitation, the zamindari
system, frequent famines and droughts. India
relied on food imports from other countries to
meet its domestic demand. Post Independence,
India initiated various reforms and policies
to improve its agriculture sector, such as
land reforms, the green revolution, the white
revolution, irrigation projects, minimum support
prices, public distribution system and more.
These measures helped India achieve self-
sufficiency in food production and increase its
agricultural output.
Despite these initiatives, India’s agriculture sector
needs to improve yield, quality and efficiency
with less dependence on monsoons, climate
variability and water scarcity.
Technological interventions were needed to
overcome these challenges and improve farming
efficiency and profitability. With the increasing
internet penetration and smartphone adoption
among the rural population, digital technologies
such as drones, satellite imagery, sensors, IoT,
AI, ML, blockchain, e-commerce, fintech and
more started to emerge as potential solutions
for various aspects of farming such as crop
monitoring, soil testing, irrigation management,
India is home to more
than 1,000 agritech
startups. A report by
AgFunder and Omnivore
stated India’s agrifood
tech startups had raised
approx $4.6 billion in 230
deals in the fiscal year
2022, up 119% from FY21.
Summary
Executive
pest control, weather forecasting, crop
insurance, market linkages and more. These
A Snapshot
technologies enabled farmers to access
Bharat:
real-time information, data-driven insights,
customised advisory services and online
platforms for selling their produce.
Drivers Propelling
Bharat is an important market for agritech
The Growth
startups catering to the needs and
Bharat
aspirations of farmers while also creating
new opportunities for employment,
entrepreneurship and innovation in the rural
economy. India has seen a surge in agritech
adoption during the COVID-19 pandemic
Specific Sectors
Lessons From
as farmers faced disruptions in supply
chains, logistics and markets. Agritech, one
of the fastest growing sectors in India’s
startup ecosystem, has helped farmers
cope with the pandemic crisis by providing
online platforms for selling their produce,
From Investors
delivering inputs at their doorstep, offering
Learnings
digital payments and insurance options and
providing timely information and advisory.
By leveraging technology, agritech can help
farmers increase their productivity, income
and resilience while reducing their costs,
risks and environmental impact.
Key Risks
Agritech is not only a business opportunity
but also a social responsibility to create a
more sustainable and inclusive food system
for India.
Bharat Playbook
Emerging
Bharat on the Move | 15
 Summary
Executive
A Snapshot
Ninjacart

Bharat:
India’s largest B2B fresh produce supply chain platform connecting farmers
to retailers and restaurants is operational in 20+ cities across India, working

Drivers Propelling
with 60k+ farmers and 30k+ customers. It provides end-to-end solutions such

The Growth
as procurement, logistics, quality control and traceability for fresh fruits and

Bharat
vegetables. It has partnered with Flipkart and BigBasket to expand its reach and
scale. It leverages technology, data and AI to optimise operations and reduce
wastage. Ninjacart has also launched several initiatives to support farmers and
customers during the COVID-19 pandemic, such as Farmer Connect, Harvest the

Specific Sectors
Farms and Safe to Eat.

Lessons From
Founded: 2015
Founders: Thirukumaran Nagarajan, Kartheeswaran Karandipalayam
Kandasamy, Ashutosh Vikram, Sharath Loganathan and Vasudevan

From Investors
Learnings
Chinnathambi
Stage: Series D
Main competitors: WayCool, Arya, Tridge, Bijak
Funding: raised a total funding of $377M over 17 rounds. Their latest
funding round was a Series D round on May 17, 2022, for $9.67M. Tiger Global

Key Risks
Management, Flipkart, Accel and Syngenta Ventures are some of their investors.

Bharat Playbook
Emerging
Bharat on the Move | 16
 Summary
Executive
AgroStar
A direct-to-farmer platform providing agronomy advice, quality agri inputs

A Snapshot
Bharat:
and market linkages for farmers operational in 10+ states across India, working
with two million+ farmers and 200 brands. It enables farmers to access a wide
range of agri products such as seeds, fertilisers, pesticides, farm equipment and
animal feed through its mobile app and call centre. It also provides personalised
crop advisory, weather information, pest and disease alerts and crop insurance

Drivers Propelling
services. It leverages technology, data and AI to provide real-time insights,

The Growth
recommendations and solutions for various crops and geographies. Agrostar has

Bharat
built India’s largest Agri Advisory Center, a digital farmer network on the AgroStar
app, which has five million+ users and a retail network of 3500+ stores selling 1K+
products, employing more than 500 agri graduates/postgraduates.

Specific Sectors
AgroStar enables retail businesses to sell under its brand name, leading to

Lessons From
end-to-end solutions for farmers. AgroStar has also launched several initiatives
to support farmers and customers during the COVID-19 pandemic, such as
AgroStar Gold Club, AgroStar Krishi Gyaan and AgroStar AgriPay.

From Investors
Founded: 2008

Learnings
Founders: Shardul Sheth and Sitanshu Sheth
Company stage: Series F
Main competitors: RBigHaat, DeHaat, Helicrofter
Funding: raised a total funding of $124M over seven rounds. Their latest funding

Key Risks
round was a Series E round on October 14, 2022, for $6.67M. Aavishkaar Venture
Capital, HeroMotoCorp, Accel and Chiratae Ventures are some of their investors.

The key learning: Pre-harvest, during harvest and post-harvest - argitech solutions
need to address all elements of the agriculture value chain and to show improved

Bharat Playbook
productivity and farmer income. And the importance of the last mile delivery

Emerging
network and job creation at rural levels is really critical to bring lasting change.

Bharat on the Move | 17

 Summary
Executive
A Snapshot
Bharat:
The innovation stories we shared above are just a small

Drivers Propelling
section of the actual work that is happening today across

The Growth
states, across towns, and across villages. But, as more

Bharat
entrepreneurs take up Bharat facing solutions, one
requirement for some of them is capital.

So, let’s look at the story now from the investors’ side.

Specific Sectors
Lessons From
Investor’s perspective
Not all companies solving for Bharat will require the same kind of capital.
From self-funded models to benefits applicable to government schemes,
or grants, debt funding or equity funding, it is imperative for founders to

From Investors
assess the right kind of capital suitable for their growth plans.

Learnings
Key Risks
Bharat Playbook
Emerging
Bharat on the Move | 18

Meanwhile, startups solving the problems and meeting the needs of the large and underserved population of
Bharat by leveraging technology, innovation, and local insights are also becoming a key thesis for many investors
today. Some of the emerging trends for investment in this space are as follows:
Agri-fintech
This segment combines agriculture
and financial technology to provide
solutions such as credit, insurance,
payments, and market linkages to
farmers and agri-businesses. Some
startups in this segment include
Jai Kisan, which enables farmers
to purchase farming equipment at
affordable interest rates; Samunnati,
which offers loans and advisory services
to smallholder farmers and agri-
enterprises; Bijak, which connects
farmers with traders and wholesalers
through a transparent platform. These
startups have raised funding from
investors such as Sequoia Capital India,
Blume Ventures, Omnivore Partners,
Accel Partners, and others.
Rural e-commerce
This segment enables rural consumers
to access online shopping and delivery
of goods and services, such as groceries,
food, entertainment, education, and
healthcare. Some of the startups in this
segment include Hesa, which connects
rural consumers with brands and local
entrepreneurs through a physical plus
digital platform; DealShare, which
offers social commerce and group
buying for low-income households and
Gramophone, which provides farm
inputs and advisory services to farmers
through an app. These startups have
raised funding from investors such as
Omidyar Network India, Matrix Partners
India, Falcon Edge Capital, Info Edge
Ventures, and others.
Summary
Executive
A Snapshot
Bharat:
Drivers Propelling
Rural tech
The Growth
Bharat
This segment leverages emerging
technologies such as Artificial
Intelligence (AI), the Internet of Things
(IoT), blockchain, and cloud computing
Specific Sectors
Lessons From
to create solutions for various sectors
such as education, health care, energy,
and logistics in rural areas. Some of
the startups in this segment include
Intello Labs, which uses AI to assess
the quality of crops; Niramai, which
From Investors
uses AI to detect breast cancer; Oorjan
Learnings
Cleantech, which provides solar energy
solutions; and LogiNext, which offers
logistics optimisation and tracking
solutions. These startups have raised
funding from investors such as Nexus
Venture Partners, pi Ventures, Axilor
Key Risks
Ventures, Tiger Global Management,
Steadview Capital, and others.
Bharat Playbook
Emerging
Bharat on the Move | 19
 Summary
Executive
Here is a sample of some of the Bharat facing investments from some of the leading investors:

Names of VC funds
Startups working Latest Amount
investing in Reason of investing Date of Funding
for Bharat Funded
Bharat

A Snapshot
Bharat:
Meesho (social To tap into the growing potential of online resellers in rural
Fidelity Investments $570M Sep 29, 2021
commerce) and semi-urban areas

Tiger Global DealShare To leverage the power of social media and group buying to

Drivers Propelling
$45M Feb 10, 2022
Management (social commerce) reach customers in non-metro cities

The Growth
Bharat
FabAlley
To cater to the fashion needs of young women in Tier 2/ 3
Nueva Capital (fashion $5.31M May 06, 2022
cities
ecommerce)

Inflection Point Milkbasket To offer convenient and hassle-free grocery

Specific Sectors
$5.58M Mar 11, 2020

Lessons From
Ventures (grocery delivery) delivery services to customers in Tier 2 / 3 cities

PharmEasy To improve access to affordable and quality

Zeal Global (healthtech) healthcare services for patients in India /To offer audio $14.3M Sep 30, 2021
KukuFM content in regional languages

Entrust Family
RailYatri

From Investors
Office (NRJN Family To support and simplify travel for millions of Indians $1.75M May 12, 2022
(Travel)

Learnings
Services)

KreditBee
Advent International To provide an online marketplace for easy personal loans $120M Jan 06, 2023
(Fintech)

Animall
Nexus Venture To connect cattle buyers and sellers across India through da-
(Food and $13.8M Jul 13, 2021

Key Risks
Partners ta-driven tech
Agriculture)

Jumbotail To provide a platform to connect Kirana stores with brands

Alteria Capital $9.13M Mar 14, 2023
(Retail) and traders

Bharat Playbook
Note: this list is indicative only and not exhaustive

Emerging
Bharat on the Move | 20
 Summary
Executive
A Snapshot
Bharat:
The key risks

Drivers Propelling
While it has been encouraging to see more investors take note of the Bharat

The Growth
market and start allocating capital to it, building a profitable and sustainable

Bharat
business is not easy.

Mass entrepreneurs, as Edmund Phelps had spoken about, could choose to

solve a local problem and develop their businesses into sustainable ventures
in the mould of what we call today as small and medium enterprises without

Specific Sectors
Lessons From
humongous rounds of capital investment. Indeed, for India to flourish, we
need more such businesses. Capital, especially equity capital, may not play a
significant role for some of them.

For some Bharat-focused businesses and entrepreneurs who figure out

tech-led/driven investment models to scale further, investment is critical. And

From Investors
it is important to approach the market carefully. From identifying the right

Learnings
customer segment to winning trust with the customers to enabling low-cost
customer acquisition, including easy onboarding and driving high retention
and doing all of that at a price that can scale and drive profitability, is no
easy task. And overestimating the addressable market size just because the
market numbers are large can be a costly mistake.

Key Risks
Investors looking at this market must think long-term and be patient with
their thesis as entrepreneurs build their innovations to scale.

Bharat Playbook
Emerging
Bharat on the Move | 21

Mainstreaming of the Bharat narrative:
The investors investing in the Bharat thesis have expanded
over time. CK Prahlad’s “Fortune at the Bottom of the
Pyramid” spoke about the market-based approach to
solving problems even when consumer incomes were low.
Investments to solve such large, social impact problems
were, for the longest time, driven by philanthropists and
foundations. The goal was to ensure better reach and equality
for people regarding access to goods and services. There was
a pioneering role played by Impact Investors, who believed in
investing for social good. Indeed, the investments in and for
Bharat have been spearheaded by people with social impact at
the core, with profits emerging as the double bottom line.
However, the most significant shift we see today is the
mainstreaming of that focus, with large and mainstream
investors developing their Bharat investment thesis.
Scale plays a key role in equalising impact, along with the
democratising impact of simple technology.
COVID-19 has also played a significant role in enabling this
shift. We see four such shifts post-COVID.
Summary
Executive
Migration of workers
A Snapshot
Bharat:
The lockdown imposed by the government in March 2020
forced many migrant workers to return to their hometowns
and villages, leaving behind their jobs and incomes in
the cities. This created a huge demand for employment
Drivers Propelling
and income generation in rural areas, as well as a supply
The Growth
gap for labour-intensive sectors in urban areas. Some of
Bharat
these workers have started their own small businesses
or joined local enterprises, while others have sought skill
development and training programs to enhance their
employability.
Specific Sectors
Lessons From
Digital adoption
The pandemic has accelerated the adoption of digital
technologies and platforms by small-town businesses,
especially in sectors like education, health care,
From Investors
e-commerce, and financial services. Many small-town
Learnings
entrepreneurs have leveraged online platforms to sell their
products and services to customers across the country and
even abroad, overcoming the physical and logistical barriers
imposed by the pandemic. Some have also used digital
tools to improve the productivity, efficiency, and quality of
their operations. For example, Wagle Sports, a 155-year-
Key Risks
old sports shop in Mumbai, started using WhatsApp
to communicate with customers and offer contactless
delivery of its products. TutAR, a startup based in Kochi,
Kerala, developed augmented reality education tools to
make online learning more engaging.
Bharat Playbook
Emerging
Bharat on the Move | 22

Government support
The government has announced various measures
and schemes to support small businesses and the rural
economy during the pandemic, such as collateral-free
loans, credit guarantees, moratoriums, subsidies, cash
transfers, and rural infrastructure development. These
initiatives have helped some small-town businesses
to survive the crisis and access finance, markets, and
resources. However, many small businesses still face
challenges in availing these benefits due to a lack of
awareness, documentation, or eligibility.
Social responsibility
The pandemic has also increased the awareness and
responsibility of small-town businesses towards their
communities and environment. These entrepreneurs
have contributed to the relief efforts by donating
money, food, masks, sanitisers, or other essentials
to those in need. Some have also adopted green
practices such as using renewable energy sources,
reducing waste generation, or promoting organic
farming. For example, Prakriti Herbals, a herbal
cosmetics company based in Bengaluru, Karnataka,
distributed free hand sanitisers and soaps to
low-income families and frontline workers. Qure.
ai, a Mumbai-based startup that uses artificial
intelligence to interpret radiology images, helped
with COVID-19 assessment in remote areas.
Summary
Executive
What’s critical to differentiate is the temporary
A Snapshot
and permanent shifts among these changes.
Bharat:
While temporary shifts can create sudden
spurts of demand and investments, permanent
shifts will move the market forward.
Drivers Propelling
Bharat has always been the focus of many
The Growth
large companies. Think FMCG and consumer
Bharat
companies developing sachet versions of their
products like shampoo and enabling a strong
rural distribution. Products like Parle G have
shown the power of such an approach.
Specific Sectors
Lessons From
What’s changing today is the slew of new
tech-based solutions being offered for Bharat
coupled with innovations emerging directly
from Bharat and the enabling impact that dual
change can bring.
From Investors
For entrepreneurs looking at entering/solving
Learnings
for this market, let’s look at some of the key
emerging learnings.
Key Risks
Bharat Playbook
Emerging
Bharat on the Move | 23
 Summary
Executive
Lessons to learn
The Emerging Bharat Playbook

A Snapshot
Bharat:
While there is increased interest in building for and from Bharat,
it is by no means an easy journey. Learnings from the existing
companies show a few emerging trends:

Drivers Propelling
Distribution: Bharat consumers are largely segmented into

The Growth
micro and nano markets which prove to be a significant

Bharat
challenge for companies to distribute their products/services
without spending a lot of money.

Pricing Models: Consumers in Bharat may lack the cash

flow to make outright big purchases. Also, entrepreneurs

Specific Sectors
Lessons From
may have less access to capital and look for cost-effective
ways to market their products and scale operations. The
pricing of products/services or products themselves needs to
be adjusted according to the requirements of this segment.
Purchasing patterns vary geographically.

Marketing: Given the unique dynamics, an “urban-centric”

From Investors
Learnings
communications approach will not hold well in non-metro/
big-city markets. Pre-established practices and strategies
that work with urban consumers need an overhaul. New and
innovative ways are required to connect to Bharat.

Ease of Use: Even though we’ve seen mass adoption of the

internet throughout the country, most of the users are not

Key Risks
very tech-savvy. Hence, an extremely user-friendly interface
is needed to get users on board. Platforms which require
minimal time for the user to find value on the platform are
likely to succeed more in this segment.

Bharat Playbook
Emerging
Bharat on the Move | 24
 Summary
Executive
A Snapshot
The rules of engagement followed by marketing communications today in

Bharat:
Bharat can be addressed by the following five ‘As’:

Affordability: Pricing the product sensibly and keeping it affordable is the

key to deepening one’s customer base in Bharat

Drivers Propelling
Accessibility: Making products accessible to small-town buyers remains a

The Growth
pertinent issue and needs a good distribution strategy.

Bharat
Awareness: Generating awareness about products is important. There’s
nothing like a live demonstration to win customer confidence.

Acceptance: Getting people to accept your product takes time and patience.

Specific Sectors
Lessons From
Association: Joining hands with the local institution and partnering with
them guarantees more success in the rural market.

Over the next few years, we will see more people solving for and from Bharat.

While that indicates exciting times for innovation, there will also be learnings and

From Investors
hard lessons along the way. The market is humungous but not homogenous.

Learnings
That means the solutions have to be customised based on deep customer
understanding. Patience will remain key. And while earlier impact investors were
the ones who were investing for this market, and today mainstream investors
are also considering investments in some of the most promising sectors, capital
needs to be thought through carefully, and only if needed. The road to scale is
not the same as a tried and tested high-value consumer product. It might take

Key Risks
time and effort to find the right solution. And given the real and underlying need,
for mass entrepreneurs choosing to solve for and in this market, there can be no
shortcuts to the route to Bharat.

Bharat Playbook
Note: We have used secondary data in the entire report and taken help of information available via multiple credible sources from the internet.

Emerging
Bharat on the Move | 25
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