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Home / Companies / Start-ups /  Rural tech startup Hesa raises $2 million in seed funding

Bengaluru: Rural tech startup, Hesa, on Thursday said it has raised $2 million as part of its seed funding round led by Venture Catalysts.

Startup accelerator fund, 9Unicorns, also participated as a part of the round.

Founded in 2019, Hesa unifies value chains in rural India by enabling local brands and businesses to come together as a community. It provides these businesses a tech-led platform that empowers businesses to reach, showcase, demonstrate, and transact with their customer base across remote and rural regions in the country.

“The fund-raising is a great validation that Hesa’s model resonates with so many. I look forward to every Indian village being powered by our innovative model as we work towards realising our vision to be rural India’s largest integrated marketplace that enables ease of commerce and enables livelihoods at scale," said Vamsi Udayagiri, founder and chief executive, Hesa.

The company claims that transactions on Hesa's platform generate revenue. Apart from brand sales, the platform also enables marketing and service-based income from rural promotions and activations, for village-level entrepreneurs. It also helps with rural contract staffing, among other activities.

"Hesa is reinventing the wheel for rural commerce in India. Their last-mile marketplace coupled with a hybrid Physical-Digital model makes Hesa a company to watch for over the next few years. As they attempt to populate the vast majority of India's villages with their network of 'Hesaathis,' Vamsi and Hema have an impressive long-term vision. They have combined it with a human touch that promises to make Hesa a responsible company, high growth, and impactful," said Manish Modi, managing partner Mastermind Capital and lead investor, Venture Catalysts.

Commencing its operations from April 2020, Hesa claims to have accrued gross revenue of $4 million to date, while witnessing a 15% average monthly growth and a 65% retention rate.

The startup has already connected 65 brands to 600,000 rural customers through its network of 8000 village-level entrepreneurs, around 5000 Indian villages.

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