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Lightspeed Backs Wheelocity’s Pivot to Rural Commerce in India

An illustration featuring the 'Wheelocity' logo at the top, with creative elements incorporated into the text, such as a shopping cart and map pin. Below, a delivery person on a red scooter carries a bag filled with vegetables, marked with the Wheelocity branding. The scene includes green grass in the foreground and a traditional thatched-roof hut on the right, set against a light, gradient background.
By
Anurag Trivedi
2 min read

Wheelocity, a Chennai-based startup founded in September 2021 by Selvam VMS, has shifted its focus from B2B supply chain services to building an e-commerce platform targeting semi-urban and rural areas of India, often referred to as “Bharat.” The startup aims to address the e-commerce access gap for the 800 million people living beyond India’s top 200 cities.

Unique “Phygital” Approach

Wheelocity offers fresh produce and groceries through its app, employing a “phygital” model. This includes a fleet of 1,000 electric three-wheelers that physically deliver products to villages and enable residents to place orders directly. The goal is to gain consumer trust and gradually transition them to online ordering via the app.

Unlike traditional e-commerce platforms, Wheelocity provides daily doorstep deliveries, a significant improvement over the week-long delivery times often seen in rural areas, especially for perishable items.

Current Operations and Expansion Plans

The startup currently operates in 3,500 villages across central Tamil Nadu and has set up an operations office in Trichy to gather consumer insights and feedback. Within the next 12 months, Wheelocity plans to scale to 20,000 villages and reach 10 million consumers across all five southern Indian states.

Funding and Investor Confidence

Wheelocity raised $15 million in a Series A2 round led by Lightspeed, with participation from Alteria Capital, Anicut Capital, and founder Selvam VMS. The round includes an undisclosed debt component to finance its electric vehicle fleet.

Rahul Taneja, Partner at Lightspeed, highlighted the large, untapped market and Wheelocity’s innovative, profit-focused business model as key reasons for reinvesting.

Market Opportunity

The rural e-commerce market represents a $1 trillion+ opportunity, according to VMS. With disposable incomes and growing purchasing intent in smaller towns and villages, Wheelocity aims to bridge the gap between rural consumers and modern e-commerce, creating a scalable and sustainable business.

Source: TechCrunch