India’s urban population is rapidly shifting from traditional mom-and-pop stores to quick commerce platforms, but its rural side, home to over 800 million people, still heavily relies on offline businesses for daily consumption. Wheelocity, a Chennai-headquartered startup founded in September 2021, aims to transform this untapped market by providing e-commerce access to people living beyond the top 200 cities of the country.
The Unexplored Market
For a long time, e-commerce giants Amazon and Walmart-owned Flipkart have attempted to tap rural India to gain deeper insights into the world’s second-largest internet market after China. The region has also attracted several startups, including Meesho and Rozana, but none of them could crack this space due to the access problem. According to Wheelocity’s founder and CEO, Selvam VMS, "Our approach to solving this problem is extremely unique. We are focused on building a 100x better alternative for our consumers."
Pivoting from B2B Supply Chain Business
Wheelocity initially started as a B2B supply chain business for quick commerce platforms but pivoted to build a platform that solves e-commerce access for people living in semi-urban and rural areas, commonly referred to as ‘Bharat.’ The startup has begun its shift by providing freshly produced goods, including vegetables, fruits, and groceries through its app. However, unlike traditional e-commerce platforms that sell products online, Wheelocity has taken a ‘phygital’ approach.
Phygital Approach: Combining Physical and Digital
Wheelocity uses electric three-wheelers to take its products into villages physically daily, helping to gain the trust of consumers. These vehicles allow consumers to place orders using Wheelocity’s app and receive deliveries on their doorstep. Once they get used to it, consumers will start using the Wheelocity app from home, predicts VMS. The executive added that, unlike Wheelocity, which offers doorstep deliveries daily, other e-commerce platforms use their services for as long as a week to get products delivered in the same region, making it challenging to deliver fresh consumable items and groceries.
Existing Supply Chain and Daily Deliveries
Wheelocity uses its existing supply chain, built for the earlier B2B business, to offer customers freshly produced goods and groceries faster. After procuring them from third parties, including farmers, the products reach consumers with Wheelocity’s branding. VMS sees the shift as a $1 trillion-plus opportunity.
Expansion Plans
The startup currently offers its e-commerce platform in 3,500 villages in central Tamil Nadu and owns 1,000 electric vehicles to allow physical order-placing and deliveries. It has already established an operations office in Tamil Nadu’s tier-II city of Trichy to understand consumers’ buying behavior better and gather their feedback. Next, it plans to scale the business to 10,000 villages within the next two years.
Funding and Future Plans
Wheelocity has raised $1 million in seed funding from investors, including a prominent venture capital firm. The startup plans to use this funding to expand its operations and build a strong team of professionals who can help it achieve its goals. VMS is optimistic about the future and believes that Wheelocity will revolutionize e-commerce in rural India.
Conclusion
Wheelocity’s innovative approach to solving e-commerce access for people living in semi-urban and rural areas has the potential to transform the market in India. With its phygital approach, existing supply chain, and daily deliveries, the startup is poised to become a leader in the e-commerce industry in rural India. As Wheelocity continues to grow and expand its operations, it will be exciting to see how it shapes the future of e-commerce in the country.
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About Wheelocity
Wheelocity is a Chennai-headquartered startup that aims to provide e-commerce access to people living beyond the top 200 cities of the country. The startup has developed a unique phygital approach, combining physical and digital, to solve the access problem in rural India.
Contact Us
For more information about Wheelocity or its innovative approach to e-commerce in rural India, please feel free to contact us at info@wheelocity.com. We would be happy to hear from you and answer any questions you may have.