A significant portion of India’s 1.4 billion population resides in rural areas.
The small villages of Haryana state in rural northwestern India are experiencing a surprising surge in popularity.
Farmers’ homes near the industrial town of Rohtak are increasingly being transformed into movie sets.
Among the sounds of livestock, the commands of directors can often be heard.
A new start-up is establishing a burgeoning film industry in this region.
“Batta,” a gripping drama centered on themes of power and justice, is one of several films currently in production, according to the founder of the start-up.
“Before our presence, there were only a handful of Haryanvi films made in India’s history. Since 2019, we have produced over 200 films,” the founder noted.
This start-up focuses on creating content tailored to under-served regional audiences, while respecting local dialects and cultural nuances.
India is home to 19,500 unique dialects, and the company has identified 18 that possess a significant enough population to support a distinct film industry.
The platform currently offers content in Rajasthani and Haryanvi, boasting three million subscribers. Plans for expansion include additional dialects like Maithili and Konkani.
“We’re nearing a funding agreement with a venture capital firm to facilitate our expansion into these markets,” the founder revealed.
Farmers’ homes around Rohtak in Haryana state are serving as movie sets, driven by innovative start-ups.
This start-up is part of a growing trend among Indian firms recognizing the potential of the rural market.
Despite India’s 1.4 billion population living predominantly in 650,000 villages, this demographic has largely been overlooked by the thriving tech start-up scene.
While India has become a leader in innovation and has produced several unicorns, the majority of these ventures focus on urban consumers.
Notable exceptions exist, but the start-up boom traditionally ignored rural areas.
That landscape is now shifting as more entrepreneurs find ways to cater to rural consumers and secure funding.
“Investors are more receptive now,” the founder stated.
“Five years ago, securing funding was a significant challenge. I had to rely on personal resources to build the business.”
Accelerators are increasingly focusing on rural start-ups, with plans to invest significant resources in these ventures.
There’s evidence that investments are increasingly directed towards start-ups located in tier 2 and tier 3 cities.
The growing smartphone usage is notable among middle-income rural households.
What factors are contributing to this transformation?
The recognition of the vast untapped market potential is at the forefront, highlighting that rural areas are not synonymous with poverty.
Approximately two-thirds of India’s population lives in rural regions, contributing roughly $500 billion annually to the economy.
Analysis suggests that this demographic’s high spenders often outpace urban dwellers.
As the economy grows, a significant portion of this expansion will derive from rural sectors.
The rise in smartphone usage among middle-income families is also a key driver, with rural user numbers surpassing that of the U.S. population.
Innovative financial solutions have simplified the transaction process, presenting companies with new growth avenues.
“The present circumstances are more favorable for start-ups targeting this demographic,” a market analyst noted.
The entrepreneurial ecosystem has evolved, with more innovators emerging from smaller towns, driven by lower overhead costs and supportive government programs.
Challenges remain, with small-town consumers being price-sensitive and widely dispersed.
However, penetrating rural markets comes with complexities.
Consumers in smaller towns tend to be reluctant spenders and are spread out over vast areas, complicating marketing efforts.
Additionally, infrastructural inadequacies pose significant distribution challenges, making operational costs high.
Businesses attempting to superimpose urban strategies onto rural contexts are likely to encounter difficulties.
Effective strategies are emerging, including partnerships with local entrepreneurs to establish trust and credibility.
Such innovative approaches and long-term commitments will be critical in seizing the burgeoning rural market opportunities.
