Entrepreneurs
Ajaita Shah: Empowering Rural Women and Revolutionizing Commerce
In the heartlands of rural India, where challenges are manifold, Ajaita Shah, the founder of Frontier Markets, has been a catalyst for change. Her journey, which began in 2011, has not only transformed the way villages buy products and services but has also created a thriving sales force of digitally empowered rural women influencers. Frontier Markets, initially focused on providing solar energy products, has evolved over the years to cater to the diverse needs of rural consumers.
Last year’s lockdown in rural India brought about a peculiar demand that caught Ajaita Shah by surprise. The sahelis, a dedicated group of women in Frontier Markets’ sales force, insisted on selling washing machines during the wedding season. Shah, initially skeptical due to the need for water supply and electricity, eventually embraced the idea. The outcome? Washing machines became a best-selling consumer durable, emphasizing the aspirational nature of rural India.
Frontier Markets‘ evolution from selling solar energy products to a diverse array of goods reflects the changing dynamics of rural commerce. The company, which began with a focus on plugging gaps in awareness, access, trust, product-fitment, and local livelihoods, has significantly broadened its portfolio. Over the last three years, Frontier Markets has sold over 15,000 smartphones, 2 lakh consumer durable appliances, 2.5 lakh agricultural products and tools, 8.15 lakh clean energy products, and 25,000 digital financial services.
One of the pivotal moments in Frontier Markets’ journey was the realization that women played a crucial role in rural purchasing decisions. In 2015, the concept of sahelis was born, marking a significant pivot for the organization. The sahelis, a women salesforce armed with smartphones, became the driving force behind Frontier Markets’ success. Their ability to leverage social capital, provide real-time data on consumption, and sell effectively has not only empowered them but has also proven to be a lucrative business model.
Another insightful initiative emerged during the lockdown, with sahelis suggesting doorstep delivery of cattle feed. With men confined to fields due to lockdowns, women took on the responsibility of caring for cattle. The convenience of doorstep delivery addressed a critical need, resulting in the sale of over 6.3 lakh bags of cattle feed, amounting to Rs 72 crore in value.
Despite the challenges posed by the pandemic, Frontier Markets has experienced significant growth. The company’s gross revenue nearly tripled from Rs 5.5 crore in FY15 to Rs 16.3 crore in FY21. The gross merchandise value during the same period touched Rs 94 crore, showcasing the increasing buying power and changing consumption patterns in rural India.
Teja Ventures, a venture capital fund investing in women-led and women-owned ventures, recognizes the unique strength of Frontier Markets’ all-women rural sales force. Virginia Tan, the founder of Teja Ventures, emphasizes that leveraging social capital and digital empowerment enables these micro-entrepreneurs to sell effectively to village households.
In conclusion, Ajaita Shah’s entrepreneurial journey with Frontier Markets is a testament to the transformative power of empowering rural women and leveraging digital solutions in the heart of Bharat. The sahelis, armed with smartphones and rich consumer insights, are not just influencers but key drivers of change in rural commerce. Frontier Markets’ success story mirrors the aspirations and dynamism of rural India, redefining the contours of social business and impact-driven entrepreneurship.