Rural entrepreneurs – Dutch Uncles

Rural Entrepreneurship Incubation Programme

Vaishali Das — Tue, 27 Jul 2021 10:35:09 +0000

Every dream, passion or an innovative idea to start a business initially needs a little support and faith. Incubation programmes are designed to support early stage startups and business ideas. It provides startups, which are in their nascent stage, with mentoring and management. Along with this, these programmes also provide entrepreneurs an access to market resources, giving them networking opportunities and work on their business skill training.

What is Rural Entrepreneurship Incubation Programme?

Nadathur S. Raghavan Centre for Entrepreneurial Learning (NSRCEL), the innovation and entrepreneurship hub of the Indian Institute of Management (IIM) Bangalore in collaboration with Buddha Fellowship Program (BFP) launched an incubation programme, Rural entrepreneurship Incubation Programme. The idea behind this incubation programme is to enhance the entrepreneurship and startup ecosystem of rural India.

The programme aims to engage, enrich and foster young emerging entrepreneurial minds to help in the upliftment of rural India and real time gaps in supply chain management of corporates using an enterprise approach. This will help create a sustainable livelihood and will also create self-employment opportunities.

Who Does It Benefit?

The programme is for young graduates from leading universities who have a passion to work for the country’s upliftment. It is also for those who are wishing to work in the development sector, even if they’re from corporate backgrounds, or early stage entrepreneurs, all are welcome for this programme. The programme will be focusing on three sectors

Rural Livelihoods (Farm, non-farm, off-farm)
Health and Nutrition
Education

With the mission to back entrepreneurs to build ‘Atmanirbhar Bharat’, the programme will benefit the rural and home-grown entrepreneurs. It will transform the development sector by providing knowledge and awareness on scaling, branding, marketing and will support rural professionals to pursue their aspirations to become development entrepreneurs.

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The programme aims to engage, enrich and foster young emerging entrepreneurial minds to help in the upliftment of rural India.

Programme Highlights

Some of the major highlights of the Rural Entrepreneurship Incubation Programme are:

It will be having top-notch mentors from industry, government, academics and development sector to extend help to the young talents.
It will provide a wide rich ecosystem and networks of NSRCEL and BFP for strategic business technology based partnerships with leading universities like IITs and IIMs. Even the Ministry of Rural Development (MoRD), Rapid Rural Community Response to COVID-19 (RCRC), Tribal Co-operative Marketing Development Federation of India (TRIFED), and Principal Scientific Advisory will also be a part of the extended help.
It will also provide an opportunity to pitch for incubation. This includes 1 month of rural immersion followed by a 9-month incubation period, handholding support aided by quarterly entrepreneurship clinics and one-on-one mentoring.
It will also help in funding and 6 months post incubation support.

What Does it Aim to Achieve?

It aims to back rural entrepreneurs who aspire to build a successful business and in turn build a futuristic India which is inclusive for its less privileged and marginalised communities. The programme also wants to strengthen the business model. The outcomes of this programme will be:

Learning marketing for B2B, B2C, sourcing, grading and packaging
Stabilised and sustainable business with strong team and financial systems.
It will teach entrepreneurs how to pitch to investors and work with the government to avail subsidy.
It will also work on networking and communication skills.

Suggested Plan of Action For Aspiring Entrepreneurs

Startups or entrepreneurs who have a registered enterprise should apply for the programme. This is the best opportunity for those entrepreneurs working in solving the rural problems like agriculture, nutrition, livelihood enhancement, healthcare, education, etc. and who are operational for a minimum of 1 year. Entrepreneurs who have a clear understanding of micro and macro level business should submit their forms.

Applicants with a viable solution to the current problems and potential social or financial impact on rural communities will be shortlisted for the incubation programme.

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Start-ups Supporting the Digital India Campaign

Aakash Sharma — Wed, 09 Jun 2021 10:35:04 +0000

In September 2014, Prime Minister Modi presented ‘Make in India’, one of the key major projects to build the country’s economy. With the subsequent launch of ‘Digital India’, the government intended to become a global technology center and a leader in the digital economy. Today, India has the third-largest start-up ecosystem globally, and many start-ups are using technology to make people’s lives easier.

Along with making life easier for people, technology start-ups in India are also evolving, creating jobs and opportunities in third and fourth level markets across the nation. They are impacting the lives of rural people and customers with their new, innovative, and easy to use solutions.

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Connecting rural India with excellent solutions and assistance marking grassroots level challenges, start-ups are developing innovative programmes under the banner of Digital India.

Changed Start-up Ecosystem with Campaigns like “Make In India” and “Digital India”

Unemployment due to the COVID-19 pandemic has made life extremely difficult for everyone, especially in rural areas. But in these uncertain times, companies of all sizes and industries are coming together to help people get back on track. Many start-ups are creating job opportunities in India’s tier-2 and beyond cities by using the large scale agricultural industry and technology as a support system.

Start-ups have been on an upward trajectory with seven years of government support behind them. Now, they are coming in full swing to help in various aspects, from solving the oxygen crisis and hospital’s availability to bringing the country back to economic normalcy, at-work vaccination programs and increasing employment opportunities in the nation again.

These 5 start-ups are providing jobs in rural India and supporting the Digital India Campaign

EezyNaukari

The start-up EezyNaukari was launched in 2016 in Kanpur for employing job seekers in rural India. EezyNaukari operates in more than 500 villages in four Indian states. As a technical support platform, it aims to completely change the recruitment process for unorganised jobs and the entry-level jobs sector.

Rural Odyssey

As a social enterprise, start-up Rural Odyssey aims to bridge the gap between urban and rural areas and connect travelers with real-world experiences in unconventional rural Indian places. The start-up chooses ecstatic villages across India to promote their culture, music, art, unique art forms and more amongst travelers. It helps the villagers generate income and provides an authentic cultural experience to the curious travelers who want to explore the diverse rural communities of India.

Udaan

Udaan is a web-focused B2B trading platform designed for small and medium-sized businesses in India. It integrates Indian distributors, wholesalers, retailers, manufacturers and brands in one platform. Udaan is a platform that allows customers to expand their network with future businesses and support small businesses by securing the power of technology and the advantages of the Internet.

Frontier Markets

It is one of the leading social enterprise platforms for rural women. It helps rural businesswomen deliver end-to-end products and services to the consumer’s doorstep in remote areas. This is done through an assisted commerce model run by rural women entrepreneurs called Saral Jeevan Sahelis, which is boosting rural women’s commerce.

Hesa

This is a rural tech start-up connecting, redefining rural commerce by providing Last-Mile Physical and Digital Connect to rural India. Its integrated B2B marketplace connects the two ends and makes buying and selling easier for all parties involved with doorstep delivery. Hesa provides rural residents with vitality, skills and employment. Farm buyers can buy or sell various products, access banks and other financial services, and pay their bills in convenient villages.

Why is it Important for Start-ups to Support the Digital India Campaign?

In recent years, one of the pillars of the growth of India’s digital economy has been the high demand for smartphones and mobile devices. India has become the fastest-growing smartphone market globally, surpassing the United States as the second-largest market globally in January 2020.

India has matured as the next big destination for international electronics manufacturers after China’s fall from grace for various reasons, including the COVID-19 pandemic. The government has stressed that the Indian industry should become an export hub in this regard. To grow themselves and promote their business via Digital India, start-ups need to capitalise on this change.

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Fintech Start-Up Jai Kisan is Disrupting the Rural Financing Industry

Anju Nambiar — Thu, 03 Jun 2021 08:35:04 +0000

Jai Kisan, a Mumbai-based Fintech start-up recently raised $30 M in a Series A funding round backed by new investors including Mirae Asset, Syngenta Ventures, alongside their existing investors including Blume, Arkam Ventures, NABVentures, Prophetic Ventures, and Better Capital.

What’s the market like?

The rural financial services market is riddled with commercial banks and lenders with single digital penetration that can’t even attempt to cover the population in millions, mostly comprising of farming communities. The existing players charge exorbitant interest which is not feasible for farmers. The consumers in the rural market neither have a credit score nor a documented credit history.

The financial services rural market is crucial for the Indian economy and the lack of credit for the Indian farming consumer speaks volumes on the poor state of affairs in the rural and farming ecosystem.

Jai Kisan received the maiden investment of NABARD’s investment arm.

NABARD, the National Bank for Agriculture & Rural Development was created to oversee agricultural credit in India and is also responsible for supervising rural and co-operative banks. NABARD extends financial support to state governments for the development of agriculture and its allied sectors. It’s also tasked with rural infrastructure development, financing Rural Financial Institutions (RFIs) and MSMEs. NABARD is relevant here because it made its maiden investment to Jain Kisan through its investment arm NABVENTURES Fund I, last year in June. Jai Kisan comes under Rural Financial Institutions (RFIs) and was hence eligible for the investment.

The Bharat Khata system

The ‘Bharat Khata System’ is Jai Kisan’s brainchild. It’s a unique financing system which facilitates access for cheap financing whether for individuals (mostly farmers) or rural MSMEs. It also solves a crucial problem pertaining to farmer credit. Farmers who manage to avail credit and loans whether from banks or through traditional money lending, fall into the debt trap. Mostly because these financial products are not tailored to the needs of farmers and come with high interest rates.

The consumers are also unaware of the right usage of credit, and it often gets wasted on non-agricultural pursuits. This leads to further deterioration of the consumer’s ability to payback which finally culminates in endless loan defaults.

The Bharat Khata system fixes this problem by ensuring that the credit or loan availed by the rural consumer is utilised exclusively for agri-inputs, equipment, and will lead to returns. The Bharat Khata system captured $380 M and above in annualised GTV (Gross Transaction Value) run rate across 25000+ storefronts at the end of the March 2021 financial year.

New approach to disrupt the rural financing industry

The biggest reason for the shortfall of rural credit and lending by traditional financial firms is a narrow perspective. Farmers form a sizeable portion of the rural population, and the biggest mistake done by these firms is to treat them as risky consumers rather than as business owners.

Jai Kisan is changing this perspective and paving the way for other financial institutions and fintech start-ups attempting to serve this sector. By approaching rural farming professionals as business owners, it becomes easier to offer customized financial services to them that serve both parties well.

This new approach has helped them in disrupting the rural financial industry by differentiating themselves.

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The ‘Bharat Khata System’ is Jai Kisan’s brainchild. It’s a unique financing system which facilitates access for cheap financing whether for individuals (mostly farmers) or rural MSMEs.

What’s in it for me?

For MSMEs and start-ups stepping into rural financing, it’s important to focus on the core customer credit needs. You also need to put capital to the best use taking cue from Jai Kisaan’s success. To disrupt any industry, you need to become a category leader (sell the most products/services for a particular category than competitors).

Fintech start-ups thinking of offering credit and lending products will need to rely on traditional banking and financial institutions and even investors to raise capital. Eventually, if your growth is steady and fast, you will be able to lend from your own pocket.

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Here is How Hyderabad-Based Startup HESA Connecting the Rural Value Chain to the Urban Market

Shalmoli Sarkar — Mon, 10 May 2021 06:35:04 +0000

Rural India has long been eluded in the past from getting access to the long-term market-based knowledge and skills to unlock new business opportunities. However, with the burgeoning startup culture in India, various startups are stepping forward to bridge the digital divide that has been preventing rural entrepreneurs to discern new income opportunities driving the rural markets and economies. By leveraging technology, digital marketing and the approach of going local, social startups like HESA are bridging the divide by offering easy business marketing solutions to connect the rural value chain to the urban market.

Vamsi Udaygiri the founder of the social startup HESA Global is providing last-mile physical and digital connections to rural India. To date, the companies have shown interest in tapping the last mile but are yet to invest in deep doorstep customer access that is currently preventing them from penetrating deeper into this massive rural market.

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According to a report by Bain & Company, India’s social commerce space is estimated to grow by $16-$20 Billion by 2025.

How is HESA bridging the divide?

HESA Global although founded in the year 2019 by Vamsi Udaygiri went alive with its app in 2020. HESA initially began as Rural Yellow Times offering jobs for rural India through its app. The startup aims to create a single destination for the rural marketplace for buying and selling products and services including financial transactions. By enabling technology, HESA acts as an integrated platform for the brands who are willing to buy, sell, promote and deliver their products, services including various banking and financial services in rural markets.

HESA also partners with rural entrepreneurs including farmers to sell their products in the urban market. HESA organises various rural promotions, BTL ( Below the Line) Campaigns and emerged as an independent event management startup organising events independently such as AgriHorti Tech, HealthPlus Asia, Back to Farming & Janatha Expo. HESA’s association in rural projects such as Dodla Dairy has allowed 60,000 dairy farms to strategize their supply and earn a profit is empowering the local milkmen, a means to earn a decent livelihood.

Right from building awareness of a rural entrepreneur or brand through promotions and event marketing to creating a local sales force, HESA ensures last-mile distribution and delivery.

Network of resident village- consultants – Hesaathis assisting rural entrepreneurs

HESA has its physical network of resident village consultants known by the name Hesaathis who are spread across the villages and can he/she can be contacted for any challenge or difficulty that a rural individual counter while buying, selling, and while managing customers. The ‘Hesaathis are well-equipped with digital know-how to enable buying and selling and resolving any hurdles faced by them.

To help farmers with the smooth functioning of the agricultural processes, the platform has features such as microfinance banking, insurance, FMCGs, money withdrawal, cash transfer, Agri inputs, purchasing Agri produce, microloan repayments, etc. Currently, HESA has a customer base of more than 7.5 lakh rural customers in the states of Telangana and Andhra Pradesh with more than 5000 Hesaathis.

What is in it for social commerce startups?

According to a report by Bain & Company, India’s social commerce space is estimated to grow by $16-$20 Billion by 2025. The impact of Covid-19 in India has created impediments in the growth of SME businesses that have created severe poverty and unemployment. In such trying times, such social commerce startups that offer support to the rural entrepreneurs will create avenues for livelihood, creating more rural jobs to tackle the covid impact.

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