By Abhay Ray 
Introduction
VilCart, a Bengaluru-based Rural commerce startup has raised USD 10 million in bridge funding to accelerate its growth and revolutionise rural retail in India. The funding round saw participation from AI-X B.V., Spark Capital, and existing investor Nabventures. This milestone reinforces VilCart’s commitment to digitizing rural retail and expanding its presence across the country. VilCart will utilise the funds to boost expansion. The company said it has plans to upgrade technology, and hire new talent.
VilCart Revolutionizing Rural Commerce
VilCart, which has already established a strong presence in South India since 2018, is revolutionizing rural commerce by connecting Rural Families through Kirana Stores and linking directly to Farmer Producer Organizations (FPOs), brands and rural SME manufacturers,.
These small, local retail stores serve as crucial points of access for essential goods in rural communities. By partnering with these stores, VilCart is able to provide a wide range of products to rural families, enhancing their access to quality goods that were previously difficult to obtain. This network plays a vital role in bridging the gap between urban supply chains and rural demand, empowering local businesses while ensuring rural consumers have access to affordable, high-quality products.
The startup said that this model ensures that essential goods in groceries, FMCG, personal care, and electronics are more accessible to every family in rural areas, turning traditional Kirana shops into efficient “Grameen Super Markets.” It claims to have reaching around 16% of Rural populations of South India through its 1 lakh kirana stores network across 30,000 Villages in South India.
Purpose of Fundraising
The startup plans to use the raised capital to strengthen the reach of Own Brands by making every rural families to have hygienically packed groceries and edible oil at par with urban households. Prasanna Kumar C, CEO of VilCart, said, “This funding validates VilCart’s growth and the opportunity in rural commerce in India. It will help us grow faster and turn Kirana stores into Grameen Super Markets. As we scale, our focus remains on strengthening rural supply chains, enhancing technology, and creating sustainable opportunities for rural businesses.”
Major Investors to Drive Expansion
VilCart has secured $10 million in bridge funding from prominent investors including AI-X B.V., Spark Capital, and Nabventures. This investment will fuel the company’s expansion and help it enhance its rural commerce platform, aiming to strengthen its supply chain and technology infrastructure. With this backing, VilCart plans to scale up its operations and increase its presence across rural India, bringing more quality products to underserved regions. The financial support further underscores the growing confidence in the potential of rural markets and VilCart’s ability to transform the sector.
Build “Grameen Super Markets” in Rural Areas
VilCart’s vision is to transform traditional Kirana stores into “Grameen Super Markets,” a new concept aimed at modernizing rural retail. These super markets will offer a broader range of products, including hygienically packaged groceries and other essential items that meet urban standards. By upgrading these local stores, VilCart aims to provide rural communities with access to the same quality of goods that urban areas enjoy, while also improving the efficiency of the supply chain. This initiative is designed to elevate the shopping experience in rural India and make high-quality products more accessible and affordable for rural households.
Focus on Hygienically Packaged Groceries
VilCart is prioritizing the delivery of hygienically packaged groceries to rural households, ensuring that products meet high standards of quality and safety. This focus addresses a key challenge in rural India, where access to clean and safe food can sometimes be limited. By offering neatly packaged and fresh groceries, including essential items like edible oils and other staples, VilCart aims to improve health standards and provide peace of mind to consumers. This initiative not only meets the growing demand for quality food but also aligns with the company’s mission to modernize rural retail and uplift the shopping experience for rural families.
VilCart’s Plan for Own Brands
VilCart is strategically expanding its own range of products to cater to the needs of rural consumers. By introducing its own brands, the company aims to provide high-quality, affordable goods that meet the specific needs of rural households. This move will help ensure consistent product availability, enhance control over quality, and build customer loyalty. The focus on in-house brands also supports the company’s vision of strengthening the rural supply chain and increasing its market presence. With the new funding, VilCart plans to scale up production, improve distribution, and increase brand recognition, making its products an integral part of everyday life in rural India.
VilCard Revenue
The startup has been making impressive strides on the business front. In April 2024, private labels accounted for 7 percent of total revenue, which grew to 21 percent by January 2025. VilCart also reported a topline revenue of ₹ 883 crore for FY 2024, with an ambitious projection of ₹ 1,200 crore for the current fiscal year.
The newly acquired funds will boost the company’s private label expansion, making hygienically packed groceries and edible oils available to every rural household at par with urban standards. This initiative will further enhance VilCart’s rural commerce capabilities and accelerate its growth strategies.
Conclusion
VilCart’s successful securing of $10 million in funding marks a significant step toward transforming rural commerce in India. With this capital, the company plans to expand its network of Kirana stores, introduce its own brands, and provide hygienically packaged groceries to rural households. By focusing on creating “Grameen Super Markets,” VilCart aims to bridge the gap between urban and rural retail standards, improving accessibility to quality products.
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