CXOToday conducted an exclusive interview with Prasanna Kumar C, CEO Rural, Virkat.
Can you elaborate on how Vilcart is using modern technology to support rural communities and improve access to goods and services?
Vilcart provides mobile application facility in local language for consumers to get products at affordable prices from rural kirana stores by placing orders. Vilcart provides rural kirana stores with a mobile application in local language, providing access to all essential and premium products. The app helps kirana stores customize Vilcart purchases, expand their store offerings, and plan and allocate funds more efficiently to improve ROI. Vilcart also manages the virtual inventory of store owners, analyzes the data, and informs about stock and SKUs that need to be kept as stock for better storage. Further, Vilcart provides consumer specific applications linked to nearby kirana stores, enabling consumers to easily manage their orders and credits in rural kirana stores.
How does Vilcart overcome logistical and technology-driven challenges, such as transportation and infrastructure limitations, to efficiently deliver products and services to remote communities?
We value relationships over business and hence we personally visit all our kirana stores. The company also provides biweekly doorstep delivery to kiranas from manufacturers and major markets. This makes Vilcart the “one-stop solution” for all your requirements. The motto of the kirana stores is to create new career opportunities in rural areas by improving their living environment. Vilcart has developed mobile applications in local languages with user-friendly features and presentations for its rural kirana customers. These apps help rural users to easily access all essentials and premium products at the household level. Not only does it help them discover brands and make better decisions, but it also helps them manage their orders. Under the umbrella of enhancing rural mobility, Vilcart has introduced a range of electric vehicles for its eco-friendly in-house delivery system across various parts of rural Karnataka. Many more vehicles are expected to come in the future in collaboration with the rural ecosystem.
Can you give some examples of how Vilcart's technology has changed the way rural businesses operate and how it has impacted business development and sustainability?
Vilcart has connected over 30,000 kirana stores and has created large-scale employment opportunities for rural youth and women. New initiatives have also been launched to support women entrepreneurs in rural areas. We are empowering people with disabilities by encouraging them to set up their own kirana stores in rural areas.
What inspired you to start Vilcart? Can you tell us more about your concept of “Be Local Grow Global” and your journey so far?
When I was a student, I used to see local kirana shop owners travelling to the city in the same bus as me to get the goods they needed for their stores. As this involved huge expenses, the owners would either arrange their own transport or would often risk their lives to transport the goods on two-wheelers on the highway. Seeing this inconvenience for kirana shops, I thought of creating something that would solve the problems faced by kiranas in rural areas and generate goodwill. With the philosophy of “Be Local Grow Global”, we employ local youth and women, most of whom are first-time hires. Through this initiative, we currently facilitate 1,500+ local employees, 420+ local women employees, 700+ local logistics operations, 93 local warehouses, and 800+ local SME vendor partners.
However, the growing challenges of drought and climate change have led rural youth to migrate to cities in search of livelihoods. To address this issue and boost the rural labour market, my team and I have implemented extensive skill development and training programs to encourage youth to explore alternative opportunities outside of agriculture and ensure a stable secondary income for their families. Our recruitment is not just about filling existing vacancies; it is also aimed at developing rural India by creating new employment opportunities for the youth.
How does Vilcart intend to bridge the gap between modern e-commerce platforms and traditional rural markets, and what measures are being taken to ensure inclusiveness and accessibility for rural communities?
Our goal is to establish a comprehensive network across Indian villages, irrespective of population size, and ensure that all rural transactions are facilitated through Vilcart's supply chain network. Our relationship with Kirana stores is based on a pre-registration process, where our CRM services proactively visit and register each store. As rural markets are driven more by emotions than reason, it is imperative to understand the unique demands and characteristics of these locations. Hence, we focus on customized market research and solutions specific to each geographical location. Vilcart's mobile app helps manage all issues by providing bi-weekly deliveries from rural areas to Kirana stores. This makes Vilcart a one-stop solution for all your needs.
How are tech startups boosting India's rural economy?
Indian tech startups are revolutionizing the rural economy by bridging the gap between urban and rural markets. Through innovative solutions in agriculture, logistics and fintech, these startups are providing farmers and entrepreneurs with better tools, resources and market opportunities. We have developed an end-to-end supply chain that directly connects farmers as producers with farmers as consumers. We target villages with populations of less than 5,000 to around 150-200 people, making products more affordable and accessible by ensuring delivery of essentials to kirana stores. From a pool of over 200,000 registered customers, we serve a vibrant customer base of over 90,000 who transact with us regularly. To facilitate seamless transactions, we offer an easy-to-use mobile app along with a central phone call system. Ordering at night may not be feasible in rural India. Our phone call feature recognizes the needs of rural areas and allows customers to order conveniently at their own pace. Moreover, our mobile app is designed to be as easy as saving a phone number in your contacts.
How is the growth of e-commerce in rural India empowering local businesses?
The growth of e-commerce in rural India is a game changer for local businesses. It enables companies to gain a wider market reach and sell their products across geographical boundaries. E-commerce platforms provide access to a large customer base, efficient logistics, and secure payment systems. This digitization allows local farmers and small businesses to compete on a national scale, increasing sales and profitability. By reducing middlemen and providing a channel to sell directly to consumers, rural retail companies like Vilcart empower rural entrepreneurs, drive economic development, and improve living standards.
