Bertelsmann Leads $40 Million Investment in Rozana to Expand Rural Commerce Network

Rozana Raises Rs 290 Crore in Series B Funding Round

Rural commerce startup Rozana has secured Rs 290 crore in a Series B funding round led by Bertelsmann India Investments, with participation from Fireside Ventures, US-based Spark Growth Ventures, Bikaji Family Office, FE Securities, and other family offices.

Key Use of Funds

The capital will be utilized to expand Rozana's footprint, deepen product assortment, build private label offerings, and strengthen its technology and supply-chain infrastructure. The company aims to expand its geography to the Gangetic belt beyond its current operating areas in Uttar Pradesh and Haryana.

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Business Overview

Rozana operates in 21,000 villages across Uttar Pradesh and Haryana, serving over 1 million households. The company has a network of over 35,000 local delivery entrepreneurs who support its rural-first commerce model. Rozana operates in gram panchayat-level markets where organised retail and ecommerce penetration remains limited.

Supply Chain Efficiency

Rozana relies on a network of local entrepreneurs, called peer partners, to deliver orders within villages and often help customers place orders online. The company aggregates multiple village orders into a single shipment to improve delivery economics, resulting in an average order delivery value of Rs 2,500 or higher.

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Product Assortment

Rozana sells around 2,300 products, up from roughly 700 SKUs a year ago, across categories including groceries, FMCG, apparel, footwear, cosmetics, and household goods. The company plans to develop in-house brands in select categories, betting that brand loyalty in rural markets remains relatively low compared with urban consumers.

Company History

Rozana was founded in 2021 by Ankur Dahiya, Adwait Vikram Singh, and Mukesh Christopher. The company previously raised $22.5 million in funding in March 2024 led by Bertelsmann India Investments.