How Rural women can lead India’s Fintech Revolution

 

What does it take for a woman from a small village to transform her life and become a successful entrepreneur? Pankhudi Mali’s journey from a job-seeking graduate to a thriving business owner offers some answers. With a blend of determination and support from fintech innovations, women like Pankhudi are reshaping the entrepreneurship landscape in rural India. And now, she’s set to take the stage at the upcoming Global Fintech Festival in Mumbai.

Pankhudi’s story began when she stumbled upon videos on YouTube about making cold-pressed oils from peanuts, mustard seeds, almonds, and various other sources. With a market increasingly interested in healthier alternatives, she saw an opportunity. However, securing a loan seemed impossible without a credit score or financial backing. Undeterred, Kalpana mortgaged her gold and took a loan from Sakhi Mahila Sahakari Bank to start her venture, Sankalp Naturals. She also joined Sakhi’s Chambers of Commerce, which enabled her to obtain an FSSAI license and focus on branding and packaging her products. Her participation in exhibitions and commitment to both B2C and B2B sales began to pay off.

Pankhudi’s business has been growing rapidly, thanks to her ability to leverage digital platforms. Sakhi Foundation’s partnership with ONDC enabled her to register her business online, expanding her reach beyond Maharashtra. Today, Pankhudi receives orders from across India, including Haryana, Jharkhand, Kolkata, Chennai, Lucknow, and Odisha. Over just four months, she received orders for more than 500 litres of cold-pressed oils, generating INR 200,000 in revenue.

UPI has been very successful in India, which is a leader in fintech transactions worldwide. Not only is the mainstream sector using UPI, but the informal economy and rural India are also seeing its adoption. UPI has penetrated Indian villages, and many women are using it. The most crucial aspect now is how these fintech platforms are helping women, not only by providing access to finance but also by giving them control over their finances, enabling them to become successful entrepreneurs.

Similarly, the microcredit industry was empowered by women. Women gained access to capital, and the microcredit industry benefited from the returns on investments made by these women. When the poor receive opportunities, they are empowered, and the economy thrives.

Another way is through e-commerce on digital public infrastructure like Pankhudi has done. DPIs like ONDC support women entrepreneurs like Pankhudi to do business digitally. They also provide women like Pankhudi with a sales and payment trajectory. With this digital history, lenders face reduced risks, making them more willing to offer loans. Even without a credit rating, with transaction history, AI can be leveraged to automatically calculate a pre-credit score, determining the loan appetite of these women. This approach can help women not only secure orders but also create a digital trajectory for their businesses, boosting access to capital.

When women set out to start a business, they often face scepticism from everyone around them – their family, friends, bankers, vendors, and the broader ecosystem. Bankers will doubt their ability to repay loans, while vendors question their capacity to operate machinery. Surrounded by naysayers and rejections, these women receive little encouragement or support, and their courage becomes their most valuable capital.

When women like Pankhudi speak at the Global Fintech Festival – sharing their experiences and challenges – the supply side will learn so much from them. This understanding will help sensitize the ecosystem and bridge the supply-side gaps. We are confident that if fintech companies listen to the voices of women like Pankhudi, who are innovators, disruptors and job and opportunity creators – they will bring about changes that empower women and the economy.

The Global Fintech Festival offers a chance for the fintech community to not only empower women like Pankhudi but also to be empowered by them. By listening to their experiences and insights, fintech innovators can learn to innovate and customize products and services that meet the specific needs of women. This approach will benefit women by providing them with tailored solutions and empower fintech companies by enabling them to reach and include women who have been excluded from the digital economy.

Pankhudi’s journey from a struggling job seeker to a successful entrepreneur is not just a story of individual success but a blueprint for collective growth. Her experiences highlight the crucial role that digital platforms and supportive financial ecosystems play in transforming women’s lives. It’s high time that at such fintech festivals, fintech providers come together to listen to women, innovate for women and empower women.