Rural commerce startup Rozana has raised ₹290 crore in a new funding round led by Bertelsmann India Investments. The company plans to use the funds to expand its business in villages and small towns across northern India.
The funding round also saw participation from existing and new investors, including Fireside Ventures, Spark Growth Ventures and a few family offices. With the new investment, Rozana’s valuation has reportedly moved closer to $200 million.
Founded in 2021, Rozana focuses on building a commerce network for rural areas where access to organised retail and online shopping is still limited. The company connects villages with suppliers through a mix of digital platforms, local retail stores and delivery partners.
Rozana currently serves more than one million households across around 21,000 villages, mainly in Uttar Pradesh and Haryana. It works with thousands of local delivery partners who help bring products directly to rural customers.
The startup plans to use the fresh funds to expand its network into more states in the northern region, especially across the Gangetic belt. It also plans to improve its technology systems and strengthen its supply chain so that products can reach villages faster and more efficiently.
Rozana’s platform offers a range of daily-use items such as groceries and household products. By connecting local retailers with suppliers, the company aims to make essential goods more easily available to rural consumers.
The startup also plans to increase the number of retail centres that support its network. In the future, Rozana may introduce its own private-label products as it expands its presence in rural markets.
India’s rural market is increasingly attracting startups and investors as internet use and smartphone adoption continue to grow in villages. However, many rural areas still face challenges such as limited product availability and weak supply chains.