Wheelocity pivots from B2B supply chain to B2C fresh commerce delivery with new funding

Wheelocity founder Selvam VMS

Wheelocity, a logistics and supply chain firm, is making a significant pivot in its business strategy. The company is moving from a B2B model to a B2C approach, focusing on fresh commerce delivery to India’s underserved semi-urban and rural markets.

“In our earlier avatar, we were basically a B2B operator and building supply chain network for quick commerce and ecommerce business. We completely pivoted in October 2023 and for the last one year we had been building this new B2C network,” said Wheelocity founder Selvam VMS.

To fuel this shift, Wheelocity has secured $15 million in a  mix of debt and equity funding, led by Lightspeed, with contributions from Alteria Capital, Anicut Capital, and from Selvam.

The move is part of the company’s larger plan to tap into the massive yet largely ignored market of over 800 million people, where access to reliable commerce platforms remains limited, Selvam added.

“We are building India’s largest Bharat Commerce Network. The current model, we are building access rails into Bharat. This is completely broken today and we want to tap into this opportunity,” he said.

In July 2022, the firm raised around $12 million from Lightspeed, Anicut and other investors.

"Wheelocity's deep understanding of semi-urban markets, combined with their technology-first approach, positions them uniquely to capture this massive opportunity. We're excited to continue to partner with them in this journey,” said Rahul Taneja, Partner at Lightspeed.

The pivot journey

Launched in 2022 by Selvam VMS and Senthil Kumar, Wheelocity used to supply fresh fruits and vegetables to quick commerce companies like Swiggy Instamart, Dunzo, Blinkit, and Zepto.

The company used to act as an intermediary collecting supplies from smaller merchants and farmers and supply it to largest ecommerce players. However, the company will now compete with the likes of Swiggy and Zepto while keeping its focus on semi-urban and rural areas.

The firm is now adopting a ‘phygital approach,’ shifting away from being a purely digital application player. Phygital refers to the use of technology to seamlessly connect the digital and physical worlds, creating unique and interactive experiences for users.

The company has a three-wheeler EV fleet which acts like a cart and used to deliver and carry vegetables and fruits to sell to consumers across semi-urban and rural areas of central Tamil Nadu.

“We are now delivering and selling fresh commerce goods across towns and villages in our three-wheeler EV cart and we have built a unique phygital model. We use data and technology to map newer areas and consumers and use physical model to gain the trust of our consumers,” Selvam said.

The gig workers or the drivers don’t just deliver the orders but, also spread awareness about the app, and digital usage and collect consumer data. The firm plans to continue with the ‘phygital’ model and slowly increase digital adoption.

The firm has more than 60 dark stores or pit stops across central Tamil Nadu where the firm stores its goods and facilitates commerce.

Future of Wheelocity

Wheelocity has marked its presence in over 3,500 towns and villages, serving one million consumers presently.

The fresh funding will power the company’s expansion to 20,000 towns and villages over the next 12 months, targeting a user base of 10 million consumers, Selvam added.

“Large part of our fundraise will be utilised for our future product and team expansion. Right now we are a team of 120-140 people, we are looking to hire more in the coming days, across functions,” he said.