Hyderabad-based rural tech startup, Hesa secured $2 million (over Rs 14 crore) funding as part of its seed round led by Venture Catalysts. Manish Modi of Mastermind Capital led the funding round at Venture Catalysts (VCats) along with Accelerator Fund, 9Unicorns. The round also saw participation from Inflection Point Ventures, We Founder Circle, Keiretsu Forum, Faad Network, Startup Angels Network, and Salil Chakrabarty Innovation Fund, reported Telangana Today.
The investment will support and accelerate Hesa’s plans to scale up operations in Telangana, Andhra Pradesh, and Karnataka and also to scale its technology platform. The team is working towards onboarding 50,000 ‘Hesaathis’ in the next nine months.
Co-founded by Vamsi Udayagiri and Hema Nandiraju in 2019, Hesa unifies value chains in rural India by enabling local brands and businesses to come together as a community. Complemented by the on-ground network on Village Level Entrepreneurs, Hesa’s robust tech-led platform empowers businesses to reach, showcase, demonstrate, convince, and transact with their customer base of more than 850 million across all remote and rural regions in the country.
Further, Hesa’s multidimensional value proposition targets a space that lies at the intersection of India’s fintech sector and agritech sector, projected to be worth $ 84 billion and $ 24 billion, respectively, by 2025.
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“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 realizing 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.
Hesa is already generating high gross merchandise value (GMV) and profitable margins. Every transaction on Hesa’s platform generates revenue, further supplemented by marketing and service-based income from rural promotions and activations, rural contract staffing, promotions on the Hesa app, etc.
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.