True independence and economic growth will come only with growth of rural India. So let me share my learnings of an interesting model that is scaling fast in Indian hinterlands.
A thread on CSC Grameen e-store - India's biggest rural eCommerce revolution.
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A thread on CSC Grameen e-store - India's biggest rural eCommerce revolution.
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It's the desi, rural version of Flipkart & Amazon, promoted by GoI and started in April '20 as a post-Covid model when supplies had stopped.
And it's working - Turnover jumped over 100% yoy in FY22, from 259 to 581 crores! If there was a VC, this would be a unicorn already..
It's the desi, rural version of Flipkart & Amazon, promoted by GoI and started in April '20 as a post-Covid model when supplies had stopped.
And it's working - Turnover jumped over 100% yoy in FY22, from 259 to 581 crores! If there was a VC, this would be a unicorn already..
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The growth is even more impressive given rural spending budget grew only ~4% last year. Rural models have been the most difficult to crack in India, so what's different about CSC model? Let's see.
But what's CSC?
Common Service Centres: Key enablers of Digital India program.
The growth is even more impressive given rural spending budget grew only ~4% last year. Rural models have been the most difficult to crack in India, so what's different about CSC model? Let's see.
But what's CSC?
Common Service Centres: Key enablers of Digital India program.
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GoI, through DeitY (Dept. of Electronics & IT), set up a network of CSCs which are run by VLEs (Village Level Entrepreneurs) whom they skill to run e-stores. These CSCs are used for delivery of essentials, banking services, utilities & consumer goods.
And there are 5L+ CSCs.
GoI, through DeitY (Dept. of Electronics & IT), set up a network of CSCs which are run by VLEs (Village Level Entrepreneurs) whom they skill to run e-stores. These CSCs are used for delivery of essentials, banking services, utilities & consumer goods.
And there are 5L+ CSCs.
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Before we go deeper, note that a successful e-com model needs to address 4 key pillars:
📲 Online demand aggregation
🛒 Fulfillment (supply, inventory, warehousing)
🚛 Logistics
💰 Payment/credit
Often cos. struggle with logistics (last mile network) and credit (no records)
Before we go deeper, note that a successful e-com model needs to address 4 key pillars:
📲 Online demand aggregation
🛒 Fulfillment (supply, inventory, warehousing)
🚛 Logistics
💰 Payment/credit
Often cos. struggle with logistics (last mile network) and credit (no records)
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CSC Grameen e-store model has focused on addressing all of these. It operates via a 3 app framework:
1⃣A customer app to place order
2⃣App for VLEs to collate & place a bulk order to companies
3⃣B2B app at CSC level for tracking last mile delivery and manage all deliveries.
CSC Grameen e-store model has focused on addressing all of these. It operates via a 3 app framework:
1⃣A customer app to place order
2⃣App for VLEs to collate & place a bulk order to companies
3⃣B2B app at CSC level for tracking last mile delivery and manage all deliveries.
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Also a rural customer can also walk into a CSC center for any need. A hybrid model is a pre-requisite in rural hubs as they also aid in education.
This is how a sample CSC center looks. A Multi Brand Auto e-store, a.k.a MBAs😀 And there are 5L+ such stores pan India.
Also a rural customer can also walk into a CSC center for any need. A hybrid model is a pre-requisite in rural hubs as they also aid in education.
This is how a sample CSC center looks. A Multi Brand Auto e-store, a.k.a MBAs😀 And there are 5L+ such stores pan India.
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The CSC model was started to deliver Govt services. But now many companies have partnered with CSC to get last mile reach and delivery in rural India:
Mahindra & Mahindra
Tata Motors
Tata Consumer
Croma
Nokia
Pepsi
Royal Enfield
Crompton
Symphony
Whirlpool
Announcements:
The CSC model was started to deliver Govt services. But now many companies have partnered with CSC to get last mile reach and delivery in rural India:
Mahindra & Mahindra
Tata Motors
Tata Consumer
Croma
Nokia
Pepsi
Royal Enfield
Crompton
Symphony
Whirlpool
Announcements:
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Notable success so far is seen in automotive sales. Example - CSC VLEs act as last mile M&M (or TaMo) touchpoints in 7 lakh + villages. This reduces friction as buyers don't have to make multiple trips to dealerships to buy a vehicle (Company centres are far outside town).
Notable success so far is seen in automotive sales. Example - CSC VLEs act as last mile M&M (or TaMo) touchpoints in 7 lakh + villages. This reduces friction as buyers don't have to make multiple trips to dealerships to buy a vehicle (Company centres are far outside town).
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There were earlier rural models such as Subhiksha stores that failed due to lack of credit & logistics. Read: bit.ly/SubhikshaFail
What is the CSC Grameen e-store model doing different?
Credit and Logistics.
On Credit, look at shareholders - Adani Capital & HDFC Bank.
There were earlier rural models such as Subhiksha stores that failed due to lack of credit & logistics. Read: bit.ly/SubhikshaFail
What is the CSC Grameen e-store model doing different?
Credit and Logistics.
On Credit, look at shareholders - Adani Capital & HDFC Bank.
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Recently, Adani Capital signed agreement with CSC to provide flexible working capital of up to Rs 5L per month to all 6000 retailers selling on the CSC network. This will enable them to make discounted bulk purchases, improving economics of the model.
economictimes.indiatimes.com/tech/technolog…
Recently, Adani Capital signed agreement with CSC to provide flexible working capital of up to Rs 5L per month to all 6000 retailers selling on the CSC network. This will enable them to make discounted bulk purchases, improving economics of the model.
economictimes.indiatimes.com/tech/technolog…
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Also, CSC has invested in the Open Network for Digital Commerce (ONDC). With the CSC Grameen being integrated with ONDC, companies can look to reaching out to the rural market through the network of over 3 lakh Grameen eStores across the country.
We explained ONDC here:
Also, CSC has invested in the Open Network for Digital Commerce (ONDC). With the CSC Grameen being integrated with ONDC, companies can look to reaching out to the rural market through the network of over 3 lakh Grameen eStores across the country.
We explained ONDC here:
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Solving for credit & last mile logistics can help scale this model manifold.
Global players (Walmart, Amazon) also want a piece of rural India story. But GoI turned it down to protect interest of VLEs:
Walmart wanted to acquire estores
Amazon wanted to improve tech backend
Solving for credit & last mile logistics can help scale this model manifold.
Global players (Walmart, Amazon) also want a piece of rural India story. But GoI turned it down to protect interest of VLEs:
Walmart wanted to acquire estores
Amazon wanted to improve tech backend
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The idea is to create a truly #AatmaNirbharBharat model that also generates rural employment.
The credit for growth and success of CSC model goes to its MD, CEO @dintya15 - who has been educating VLEs on all aspect from credit score, app set-up, LPG benefits and more..
The idea is to create a truly #AatmaNirbharBharat model that also generates rural employment.
The credit for growth and success of CSC model goes to its MD, CEO @dintya15 - who has been educating VLEs on all aspect from credit score, app set-up, LPG benefits and more..
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This was a preliminary attempt to share about this wonderful rural model. Follow @abhymurarka and RT first tweet if you found it interesting. I will share more reading links below:
Apologies if any mistakes. Link to the start of thread:
This was a preliminary attempt to share about this wonderful rural model. Follow @abhymurarka and RT first tweet if you found it interesting. I will share more reading links below:
Apologies if any mistakes. Link to the start of thread:
https://twitter.com/abhymurarka/status/1559125723734249477?s=20&t=r4sKkoN3LFLIMXj9iJHPvQ
Reading links:
Model: the-pulse.in/solving-india-…
Results:
retail.economictimes.indiatimes.com/news/e-commerc…
Mahindra Partnership:
ruralmarketing.in/stories/mm-par…
Adani Capital:
business-standard.com/article/compan…
ONDC tie-up
economictimes.indiatimes.com/tech/technolog…
Model: the-pulse.in/solving-india-…
Results:
retail.economictimes.indiatimes.com/news/e-commerc…
Mahindra Partnership:
ruralmarketing.in/stories/mm-par…
Adani Capital:
business-standard.com/article/compan…
ONDC tie-up
economictimes.indiatimes.com/tech/technolog…
Tagging some folks who might like reading this:
@blitzkreigm @RoshanCariappa @BeingPractical @c_aashish @mehrotra_saket @SahilKapoor @jaganmsna @SandeepParekh @ishmohit1 @pareekhjain @Finstor85 @dishahdadpuri @caswapnilkabra @RahulSanghi1 @Ravisutanjani
@blitzkreigm @RoshanCariappa @BeingPractical @c_aashish @mehrotra_saket @SahilKapoor @jaganmsna @SandeepParekh @ishmohit1 @pareekhjain @Finstor85 @dishahdadpuri @caswapnilkabra @RahulSanghi1 @Ravisutanjani
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