Shopsy intensifies efforts to tap millions of shoppers in rural India

Flipkart’s hyper-value e-commerce platform Shopsy is intensifying efforts to tap over half of the 821 million internet users (about 442 million) in rural India.

These efforts are being led by Prathyusha Agarwal, who recently joined as business head at Shopsy. The aim is to become the go-to destination for consumers seeking entry-level products across various categories.

“I end up gravitating towards stuff which appeals to doing something for the small-town world. This ranges from my very first role in Unilever to my last few roles. That has been a passion area,” said Agarwal.

“The Bharat shopper is possibly today doing a couple of transactions on e-commerce but is not completely like the metro consumer who is possibly now an e-commerce native. We are looking at such consumers and asking can we be the hyper-value horizontal platform for all their needs,” said Agarwal.

The primary focus is on the Bharat consumer, particularly households with an annual income of less than Rs 10 lakh.

These consumers are found in Tier-II and lower-tier markets. Shopsy said it is dedicated to meeting their needs effectively with the right price point and product range. 

For instance, the platform has expanded into multiple categories, including kids wear, budget mobiles and large appliances. These are helping it cater to the Bharat consumer’s entry-level needs. It is also expanding into large appliances and electronics. 

“We are opening a bunch of categories almost every quarter. We have noticed that entry-level price points and models are gaining immediate traction, reflecting the preferences of our Shopsy consumers,” said Agarwal.

Indeed, India's e-tailing sector is poised to experience a fivefold growth, surging from $59 billion in 2022 to an estimated $300 billion by 2030. This will be fuelled by value-seeking 'mass' consumers, states a report by Redseer Strategy Consultants. Shopsy competes with SoftBank-backed Meesho and Amazon Bazaar to tap this market.

“I am not focused on what the competition is going on behind. I think we have a good value proposition and we deliver it to the consumer,” said Agarwal. 

“There is a Bharat across every state. My previous experiences have been looking at every Bharat and saying what is the unmet need that the consumer is looking for and then going ahead to deliver it. I think there is enough opportunity.”

Nearly 70 per cent of Shopsy’s customers are from Tier-II and III cities such as Bhagalpur, Bankura, Kurnool, Nagaon, and Dhule. And 90 per cent of its new customers are millennials and Gen Z.

In 2024, Shopsy’s highest orders came from UP, West Bengal, Maharashtra, and Bihar, with over 60 per cent of customers from Tier-III cities.

Promotion and facilitation agency, Invest India underscores the growing prominence of rural-centric e-commerce, anticipating a significant portion of demand to originate from Tier II-IV cities and rural areas by 2026.

Since its launch in 2021, Shopsy has achieved over 330 million downloads. It is leveraging Flipkart’s extensive supply chain and diverse product range to build strong customer confidence. 

This has helped it provide affordable products across 1,300 categories, expanding its reach to more than 19,000 pin codes.

It has a seller community of 1.4 million (including Flipkart) from cities and towns across India. Its product portfolio spans over 160 million, across categories.

Agarwal said Shopsy is committed to technology-driven enhancements, making the platform accessible, efficient and tailored to the needs of its diverse customers.

For instance, Shopsy is focused on providing a seamless shopping experience on budget-friendly devices by continuously enhancing its app to be more efficient and light.

This enables customers to easily locate and buy products, even in areas with limited internet access.

The platform optimised its app size last year by 15 per cent.

The focus is also on an intuitive user interface and strong support for vernacular languages to meet the diverse needs of customers.

By using artificial intelligence and machine learning, Shopsy offers customised product suggestions for Bharat consumers.