Rozana launched in the pandemic to provide mainstream consumer goods and grocery delivery to India’s rural households. The Delhi-based startup ordering and distribution model depends on a network of more than 35,000 female agents in the thousands of villages it serves. Rozana serves more than a million households in the northern states of Uttar Pradesh and Haryana, and has expanded its product range to include clothing, electronics, toys and books.
It raised 2.9 billion rupees ($31.4 million) in Series B equity financing, led by Bertelsmann India Investments. Fireside Ventures, Spark Growth Ventures, the Bikaji family office, FE Securities and other investors participated.
Bertelsmann’s argument for investing in India’s rural consumers: Nearly 200 million rural households spend on average about 20,000 rupees ($200) per month on staple products; rural consumption in the country is growing faster than urban consumption.
“The rural commerce opportunity is massive and underserved,” Bertelsmann’s Rohit Sood wrote in a post. “Rozana’s model is unique in the way it embeds women entrepreneurs at the center of the supply chain, and builds consumer trust in [India’s] heartland, where traditional e-commerce has struggled.” The equity round will support Rozana’s expansion into at least two other states.
