In a bid to revolutionize rural distribution in India, Vilcart, a rural economy-focused technology startup, is setting ambitious goals for 2024. Under the leadership of Prasanna Kumar C, Founder & CEO, the company plans to deepen its reach into villages and achieve a revenue target of INR 1600 crore this year.
A Rural-to-Rural Supply Chain
Vilcart is working to solve a longstanding issue: the lack of a robust distribution network in rural India. “70% of the population resides in rural India, yet these areas often lack direct access to essential goods,” says Prasanna Kumar. Vilcart aims to address this gap by creating a rural-to-rural supply chain, ensuring that products reach even the smallest villages without detouring through urban centers.
Prasanna emphasizes the uniqueness of their model: “We are creating a distribution network which didn’t exist before, reaching out to every village, even those with just 150 to 200 people. We pick products directly from farmers and local producers and deliver them to the consuming villages.”
One of Vilcart’s core strategies is to eliminate the traditional intermediaries that rural Kirana stores depend on for their supplies. “Every Kirana store in rural areas typically relies on nearby towns to source products, often making weekly trips to procure essentials,” Prasanna explains. By offering a direct supply chain, Vilcart reduces costs and ensures that Kirana stores can get what they need more efficiently.
Financial Strategy and Growth
With a customer base of over one lakh active Kirana stores across 30,000 villages, Vilcart’s growth trajectory is impressive. “Our order frequency is about 3.8 to 4.5 orders per month per Rural Kirana Store, with an average order size of INR 4,500 to INR 5,000,” says Prasanna. The company operates on a cash-on-delivery model, with about 28-30% of payments now being digital, a significant shift in rural India.
Continue Exploring: VilCart surpasses INR 100 Crore revenue milestone in March, eyes further growth
Focus On Expansion
Vilcart’s ambitious plans are supported by the evolving landscape in rural India, where aspirations and access to information are growing. “Post-COVID, we’ve seen a lot of movement from urban to rural India, creating economic changes and new opportunities,” Prasanna observes.
Last year, the company expanded its scope to 66 districts and generated over INR 881 crore in revenue. This year, Vilcart is focusing on deepening its market penetration with aim to double its turnover.
“We have several key strategies in sales, starting with expanding our village coverage to reach as many villages as possible and engaging more customers,” says Prasanna Kumar, speaking about the next six months’ plans.
“For the financial year 2024, we closed at INR 881 crore. For the current financial year 2025, we’re targeting a significant increase to INR 1600 crore, with a strong focus on approaching profitability,” he adds.
According to Prasanna, the monsoon season is vital for the company’s expansion aspirations. Last year was difficult owing to little rainfall, but this year, with rains back on track, the company expects increased revenue from rural areas after August. Rural customers are more likely to spend freely since they do not have big real estate bills, freeing up more of their cash for other purchases, he feels.
