Wheelocity Secures $15M to Revolutionize Rural E-commerce in India with Electric Delivery Fleet
November 12, 2024Wheelocity, a startup based in Chennai and founded in September 2021, is tackling the e-commerce access gap in rural India, where over 800 million people depend on offline businesses.
Initially focused on B2B operations, Wheelocity has transitioned to a consumer-centric platform, providing online shopping solutions tailored for semi-urban and rural areas, collectively referred to as 'Bharat'.
The startup's app allows consumers to conveniently place orders from home, promising quicker delivery than traditional e-commerce platforms, which can take a week or more.
To enhance the shopping experience, Wheelocity offers a unique 'phygital' model, utilizing electric three-wheelers for daily deliveries of fresh produce and groceries, thereby fostering consumer trust through personal interactions.
Since October 2023, Wheelocity has expanded its reach to 3,500 villages in central Tamil Nadu and operates a fleet of 1,000 electric vehicles for efficient deliveries.
Recently, the startup secured $15 million in Series A2 funding led by Lightspeed, which has previously invested in Wheelocity, citing the vast untapped market and the startup's profitable business model as key motivators for their continued investment.
Looking ahead, Wheelocity plans to scale its operations to reach 20,000 towns and villages across all five southern Indian states within the next year, aiming to serve 10 million consumers.
Investors are increasingly recognizing the potential in India's smaller towns and villages, acknowledging the disposable income and purchasing intent of consumers in these regions.
Wheelocity leverages its existing supply chain, originally designed for B2B operations, to quickly deliver fresh goods sourced directly from farmers.
Despite the efforts of e-commerce giants like Amazon and Flipkart, previous attempts to penetrate rural markets have faced significant challenges, according to Wheelocity's founder and CEO, Selvam VMS.
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TechCrunch • Nov 11, 2024
Lightspeed doubles down on Wheelocity as it pivots to rural India commerce | TechCrunch