ENTRPRENEUR/STARTUP SPECIAL...LESSON NO.2 FROM REAL EXAMPLES
AJAITA SHAH Co-founder, Frontier Markets
Filling in Last-Mile Gap
It was while working at microfinance firm SKS Microfinance and urban microlender Ujjivan that Ajaita Shah struck upon a startup idea of her own. She realised that producers eager to reach the rural consumer often faced a gap in the last mile. Shah, along with co-founder Daniel Tomlinson, decided to set up a rural distribution venture Frontier Markets that would help companies to reach the bottom of the pyramid rural customers. It does this by using microfinance networks, self-help groups, farmers and anganwadi school teachers as channel partners to market products to rural consumers. Shahlaunchedthestart-up in Rajasthan with angelfunding from a networkof friends andbegan by supplying solar lanterns.Later that year Shah andTomlinson began approaching US investors.“In India,theconceptof investing in socially-focusedcommercialenterprisesdid not existthen.IthoughtUS wouldbe a better bet,” says Shah, a TuftsUniversity degree-holder. However, Shah realised that the US funds she met did not understand her target market: rural India. She then approached Indian investors and met Indian Angel Network’s Sadeesh Raghavan, who became their advisor and helped streamline business model. “Around that time we also met Seedfund’s Paula Mariwala who gave us pointers on what we need to do,” says Shah.
It was while working at microfinance firm SKS Microfinance and urban microlender Ujjivan that Ajaita Shah struck upon a startup idea of her own. She realised that producers eager to reach the rural consumer often faced a gap in the last mile. Shah, along with co-founder Daniel Tomlinson, decided to set up a rural distribution venture Frontier Markets that would help companies to reach the bottom of the pyramid rural customers. It does this by using microfinance networks, self-help groups, farmers and anganwadi school teachers as channel partners to market products to rural consumers. Shahlaunchedthestart-up in Rajasthan with angelfunding from a networkof friends andbegan by supplying solar lanterns.Later that year Shah andTomlinson began approaching US investors.“In India,theconceptof investing in socially-focusedcommercialenterprisesdid not existthen.IthoughtUS wouldbe a better bet,” says Shah, a TuftsUniversity degree-holder. However, Shah realised that the US funds she met did not understand her target market: rural India. She then approached Indian investors and met Indian Angel Network’s Sadeesh Raghavan, who became their advisor and helped streamline business model. “Around that time we also met Seedfund’s Paula Mariwala who gave us pointers on what we need to do,” says Shah.
THREE TIPS TO RAISE MONEY
Research the investors interests, check if your
business is the right fi t.
Bootstrap and get stuff done on the ground, so investors get interested.
When meeting investors understand what they think are the important points and focus on that.
Bootstrap and get stuff done on the ground, so investors get interested.
When meeting investors understand what they think are the important points and focus on that.
Radhika P Nair
No comments:
Post a Comment