India is a country of contrasts, where urban areas are rapidly embracing online shopping while rural regions still rely heavily on offline businesses for daily needs. In an effort to bridge this gap, Wheelocity, a startup based in Chennai, has shifted its focus to providing e-commerce access to people living in semi-urban and rural areas, also known as “Bharat.”
Founded in September 2021, Wheelocity has taken a unique approach to tap into the untapped market of rural India. The startup offers a platform that allows consumers living beyond the top 200 cities of the country to easily shop online for a variety of products, including freshly produced goods, vegetables, fruits, and groceries.
Unlike traditional e-commerce platforms, Wheelocity has adopted a “phygital” approach by using electric three-wheelers to physically deliver products to villages daily. This not only helps in building trust with consumers but also ensures faster delivery of fresh consumable items. By leveraging its existing supply chain built for B2B business, Wheelocity is able to provide customers with high-quality products sourced directly from farmers.
The startup’s CEO, Selvam VMS, believes that this shift towards rural expansion represents a massive opportunity, estimating it to be a $1 trillion-plus market. Wheelocity currently operates in 3,500 villages in central Tamil Nadu and plans to scale its business to 20,000 towns and villages across all five southern states of India within the next 12 months.
To support its expansion plans, Wheelocity recently raised $15 million in its Series A2 round led by Lightspeed, the startup’s existing investor. Other participants in the funding round included Alteria Capital, Anicut Capital, and VMS. The investment will primarily be used to finance the growth of Wheelocity’s electric fleet, enabling the startup to reach more consumers in rural areas.
Lightspeed partner Rahul Taneja expressed confidence in Wheelocity’s business model and the founder’s vision, emphasizing the significant market potential in untapped regions of India. The VC fund believes that Wheelocity’s unique approach to rural e-commerce could lead to profitable growth and sustainable coverage of areas that were previously underserved.
As the trend of focusing on smaller towns and villages gains momentum in the VC market, startups like Wheelocity are well-positioned to capitalize on the growing consumer demand in these regions. With strategic investments and a commitment to innovative solutions, Wheelocity is paving the way for inclusive e-commerce access in rural India, transforming the way people shop and access essential products in underserved communities.
