According to Accel partner Anand Daniel, rural areas are not just about poverty; the top 20% to 30% of the population in these regions spend significantly, with an estimated market value of over $250 billion. This untapped market segment spends more per month than half of the urban population. Accel plans to emphasize this new focus in its upcoming early-stage investment program.
Accel’s decision is remarkable in a landscape where most investors target urban startups. Despite having stakes in many successful ventures like Flipkart and Swiggy, Accel believes in the potential of rural India due to improved infrastructure, smartphone adoption, and increased digital services usage.
While some startups have struggled to succeed in smaller cities, Accel believes there are opportunities for innovative players. By understanding the unique characteristics of these markets and focusing on building relationships, startups can thrive in rural India and achieve success comparable to urban ventures.
Accel is confident that emerging startups in rural India will achieve impressive valuations, showcasing the untapped potential of these regions. By adapting business models and strategies to cater to the specific needs of rural customers, startups can pave the way for a new wave of successful ventures in India.
