Wheelocity Transitions from B2B Supply Chain to B2C Fresh Commerce Delivery with New Funding

Wheelocity, a logistics and supply chain company, is undergoing a significant strategic shift, moving from a B2B model to a B2C approach that emphasizes fresh commerce delivery to underserved semi-urban and rural markets in India.

"In our previous model, we operated as a B2B provider, building supply chain networks for quick commerce and e-commerce businesses. However, we pivoted in October 2023 and have spent the last year developing this new B2C network," said Wheelocity founder Selvam VMS.

To support this transition, Wheelocity has secured $15 million in a combination of debt and equity funding, led by Lightspeed and supported by Alteria Capital, Anicut Capital, and Selvam himself.

This shift aims to tap into a vast, largely neglected market of over 800 million people with limited access to reliable commerce platforms.

"We are building India’s largest Bharat Commerce Network. Our current model focuses on creating access rails into Bharat, which is currently broken, presenting a significant opportunity," Selvam added.

Founded in 2022 by Selvam VMS and Senthil Kumar, Wheelocity previously supplied fresh fruits and vegetables to quick commerce companies like Swiggy Instamart, Dunzo, Blinkit, and Zepto, acting as an intermediary that connected supplies from smaller merchants and farmers to larger e-commerce players. Now, the company plans to compete directly with these services while concentrating on semi-urban and rural areas.

The company is adopting a "phygital" approach, blending digital and physical elements to create unique user experiences. Wheelocity utilizes a fleet of three-wheeler electric vehicles (EVs) to deliver and sell fresh produce in central Tamil Nadu's towns and villages. "Our delivery model combines technology and data to identify new areas and consumers, while our physical presence helps build trust," said Selvam.

Gig workers not only deliver orders but also educate consumers about the app and digital services, while collecting valuable consumer data. Wheelocity intends to enhance its phygital model, gradually increasing digital adoption among users.

Currently, the company operates over 60 dark stores across central Tamil Nadu to store goods and facilitate commerce. It has reached over 3,500 towns and villages, serving one million consumers.
With the new funding, Wheelocity plans to expand its reach to 20,000 towns and villages within the next 12 months, aiming for a user base of 10 million consumers. "A significant portion of our fundraising will be allocated to product development and team expansion. We currently have a team of 120-140 people and plan to hire more across various functions," Selvam stated.

Rahul Taneja, Partner at Lightspeed, remarked, "Wheelocity's deep understanding of semi-urban markets and its technology-first approach uniquely position them to capture this significant opportunity. We are excited to continue partnering with them on this journey."