Wheelocity raises $15M from Lightspeed as it refocuses on fresh produce in Tier III+ towns
The funding comes a year after Wheelocity decided to phase out its B2B operation and is now focused solely on fresh commerce and produce for Tier III towns and beyond.
Semi-urban commerce platform Wheelocity has raised $15 million in a round led by existing investor Lightspeed Ventures, along with participation from Alteria Capital, Anicut Capital, and the company’s founder.
The new funding will support the company’s expansion into 20,000 towns and villages over the next year, with a goal of reaching 10 million consumers.
Over the next 12 months, Wheelocity plans to expand its presence beyond central Tamil Nadu and in Karnataka, Andhra Pradesh, Telangana, and Kerala, Selvam VMS, Founder and CEO of Wheelocity, told YourStory.
Wheelocity, which earlier procured fresh produce for major quick commerce and ecommerce channels, phased out its B2B arm a year ago and now completely focuses on B2C operations in Tier III towns and beyond.
“We found a much larger opportunity, a much more profitable avenue, a much more value-creating possibility in servicing and building the rails for semi-urban and rural and hence the pivot out,” noted Selvam.
Wheelocity offers fresh produce, groceries and categories under daily or high-frequency purchases. It taps into a fleet of over 1,500 vehicles, mostly three-wheelers, and more than 2,000 gig workers to offer these products to customers at their homes.
In rural areas and semi-urban areas, consumers have sometimes to wait for as long as seven days to get access to something as basic as fresh produce, daily essentials, groceries, and FMCG products, says Selvam.
"The next wave of India's commerce growth will come from beyond the top 200 cities. Wheelocity's deep understanding of semi-urban markets, combined with their technology-first approach, positions them uniquely to capture this massive opportunity," noted Rahul Taneja, Partner at Lightspeed.
Wheelocity had earlier raised $12 million, including $2 million in debt, in its Series A round led by Lightspeed Venture Partners in July 2022.
Edited by Kanishk Singh