Rural India the next frontier for digital entrepreneurship, says 1BRIDGE CEO

"In entrepreneurship, the thrill comes from tackling seemingly impossible, self-destructive tasks," said, Madan Padaki, Founder and CEO, 1BRIDGE.

Padaki discussed his journey into rural India at TechSparks 2024, highlighting its untapped potential and challenges, and promoting entrepreneurship to galvanise the digital district economy.

Padaki introduced the audience to Mandya, a district near Bengaluru, to illustrate the often-overlooked economic potential of rural areas. He asked, "How many of you can guess the GDP of a district like Mandya?" To everyone's surprise, he revealed that Mandya's GDP in 2022 was Rs 48,000 crores ($6 billion), double its GDP of Rs 24,000 crores in 2016.

He continued, "Mandya is not an anomaly; there are 700 districts like it across India, each with the potential to contribute significantly to the national economy."

The reality of rural financial transactions

While the rise of digital payments in India, particularly UPI, has been widely celebrated, Padaki emphasised the gap in rural financial inclusion. In May 2022 alone, India saw over 14,000 million UPI transactions. However, in rural areas, UPI usage is minimal.

According to Padaki, only 10% of rural respondents actively use UPI, with many others relying on cash. Instead, the Aadhaar-enabled payment system (AEPS), lesser-known but widely used in rural regions, recorded 542 million transactions in the same period. "While UPI grabs the headlines, AEPS is the backbone of rural financial transactions," Padaki remarked.

Furthermore, Padaki shared insights from a survey conducted by 1Bridge in villages, where 55% of respondents had purchased electronic gadgets, 38% home appliances, and 20% kitchen appliances in recent months. "People are buying everything," he said, highlighting the growing consumption power in rural areas.

However, accessibility remains a significant barrier, with limited delivery infrastructure and digital literacy hindering rural consumers. "In rural India, the density is one ATM for 10 villages," he pointed out, underscoring the infrastructure challenges.

Padaki described rural India as a "natural gig economy," where people have historically juggled multiple roles to sustain themselves. "In rural areas, people run a farm, have cows, operate a small store, and sell insurance on the side," he explained.

This gig-style economy, combined with government support programs like MNREGA, provides sustenance, but the aspirations for education, housing, and technology-driven livelihoods are growing. "Rural India realises that to earn more, they need to be skilled and tech-savvy, but they often don't know how to get there," he noted.

Opportunities for growth

Padaki firmly believes in the untapped talent in rural India. Through his foundation, Head Held High Foundation, he has witnessed the transformation of rural youth. "We have trained rural youth from zero to hero in less than six months," he proudly shared. This, coupled with the rapid digital leapfrog in rural areas, presents a massive opportunity for growth.

He recounted an innovative experiment where 1Bridge introduced a Metaverse experience in a village in Mandya, which led to the sale of 40 electric vehicles. "If you want to take something to rural, take it now, not later," he advised.

Padaki concluded his talk by outlining the vision of 1Bridge, a platform designed to empower rural entrepreneurs and bridge the gap between urban solutions and rural needs. "We have built a network of 20,000 entrepreneurs, 4,000 delivery associates, and a last-mile delivery network in 70 districts," he said.

1Bridge, founded by Madan Padaki in 2016, is a rural tech platform that bridges the urban-rural gap by connecting rural consumers with businesses through local micro-entrepreneurs called 1Bridge Advisors. The platform empowers rural entrepreneurs, enhances livelihoods, and promotes economic inclusion by linking rural markets with mainstream services.

Through 1Bridge, Padaki aims to generate an additional Rs 1 lakh in annual income for rural entrepreneurs, targeting 300,000 entrepreneurs across 300 districts.

"Every district in India has the potential to build Rs 500 crore to Rs 1,000 crore profitable businesses. Rural India is the next frontier, and we must all work together to unlock its full potential," he said.