If you want to be a successful start-up in countries like India, you need to solve a social problem, they say. The Indian Angel Network (IAN) has just invested an undisclosed sum in a start-up Inthree that serves the ‘unmet’ needs of rural and semi-urban areas using limited resources.

Floated by R Ramanathan and N Karthik, the firm is utilising the local agencies such as non-governmental organisations and micro-finance organisations to reduce cost overheads, while delivering the products to the consumers.

“Aspirations of people in rural and semi-urban areas have gone up significantly. They would like to possess gadgets and appliances that you use,” Ramanathan told Business Line over phone after getting the IAN investments.

With extensive presence in Tamil Nadu and Karnataka reaching about five lakh households, the company now is trying to move to Andhra Pradesh and Telangana.

“The reach of FMCGs is by and large limited to urban areas and their rural reach is not great. People from these are even travelling to distances of up to 100 km to buy gadgets, appliances, kitchenware and health and hygiene products,” Ramanathan said.

The company has created a network of 500 touch points for consumers by tying up with NGOs and MFIs. Ashvin Chaddha, an IAN member and investor in the company, said that the social enterprise was able to address a significant need by utilising limited resources and using a technology platform to take care of the back-end operations and maintaining a database.

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