Start-Ups Are Making Inroads in India

A few years ago, migrant workers from northern states like Bihar and Uttar Pradesh in India, found it very difficult to send money to their families. A majority of them are illiterate and have no idea about banking procedures. They had to rely on friends traveling to their hometown or opt for agencies that charged them higher commissions. But thanks to a startup this is no longer the case. The migrant workers can simply go to the office, mention the address and money, and a shopkeeper or tea vendor in the worker’s village pays up the money to his family. The Tea vendor is then paid the money. Considering the fact that there are millions of such migrants that toil in cities in Bombay and Delhi, this is indeed a profitable venture for both the company as well as the migrants.

Consider situation 2: Old age pensioners in the remotest villages of India, had to travel for hours together to reach the nearest government office to receive their payments under various government pension scheme. More often than not, manual disbursements led to spelling errors and wrong entries and at the end of the arduous journey, the senior was left disappointed. But thanks to a start-up company that works as a banking correspondent to nationalized banks, it’s easy to reach out to the rural and unbanked customers. The company directly credits the money to the bank account of the government benefit scheme beneficiaries.

Another startup in rural Andhra Pradesh creates electronic records of the millions of farmers who use the Primary Agriculture Cooperative Societies to avail credit, and procure produce.

There are plenty of such stories where technology and a few enterprising young Indians have managed to connect to take technology where it’s most needed (and appreciated) – the rural villages. In fact start ups are said to be a major source of hirers in the country. US returned Indians looking to cash in on the growing market too have fuelled activity in the country.

Post by Content Research and Writer of SubmitINme

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