The small villages in Haryana, a rural region of northwest India, are unexpectedly becoming the center of attention as they transform into movie sets. Farmers’ homes in the vicinity of Rohtak have found a new purpose alongside the familiar sounds of mooing cows, with directors often yelling “lights, camera, action.” A start-up named STAGE has emerged, fostering a burgeoning film industry in this area.
Vinay Singhal, the founder of STAGE, recently shared insights on the film set while discussing their latest production, “Batta,” a gripping drama centered on power and injustice. Singhal noted, “Before we arrived, there were only about a dozen Haryanvi films created in India’s history. Since 2019, we’ve produced over 200.” STAGE primarily creates content tailored for underserved provincial audiences, considering local tastes, dialects, and the cultural context of the rural landscape.
India is home to 19,500 distinct dialects, and STAGE has identified 18 that have large enough populations to support their own film industries. Currently, STAGE offers content in two languages—Rajasthani and Haryanvi— and boasts three million paying subscribers. The start-up plans to broaden its offerings to include other dialects, such as Maithili and Konkani, aiming for expansion into new territories with the support of American venture capital funding.
Mr. Singhal reflected on the evolving landscape for rural-focused start-ups. Five years ago, securing funding was a challenge, but now, investors are more open to supporting entrepreneurial ventures targeting rural markets. “Investors don’t show you the door anymore. Five years ago, I didn’t get any money at all. I had to bootstrap the company,” he explained.
The interest in rural markets is growing among Indian start-ups, with others like Agrostar and DeHaat also pursuing this emerging frontier. Despite India’s 1.4 billion population largely dwelling in villages, the tech start-up boom has traditionally focused on urban residents. However, prominent venture capital firms, including Accel Ventures, are recognizing the significant opportunity within these rural demographics.
Anand Daniel, a partner at Accel, highlighted the spending power of rural consumers, noting that two-thirds of India’s population spends approximately $500 billion annually, with the wealthiest 20% spending more than half of what urban residents do. He projected that as India adds $4 trillion to its GDP in the next decade, about 5% of that growth will come from rural, digitally influenced markets—an incremental opportunity valued at around $200 billion.
This shift is facilitated by the increasing use of smartphones among the rural middle class, which now stands at about 450 million users. The rapid adoption of digital payment systems like UPI has drastically improved access for companies eager to expand beyond urban areas.
Yet, challenges remain. Small-town consumers are often price-sensitive and spread across vast geographical areas, making it difficult to reach them. Gautam Malik, the chief revenue officer at Frontier Markets, noted that distribution remains a significant hurdle due to inadequate infrastructure and high operating costs. He explained that many businesses fail when they attempt to apply urban models to rural contexts without considering local nuances.
Malik’s company discovered that establishing trust with villagers was crucial, leading them to collaborate with local women entrepreneurs as sales and delivery agents to bridge the gap. “Building that trust factor is key,” he said, emphasizing the importance of commitment and differentiation to successfully tap into the vast rural market.
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