Prepaid Subscription in BHARAT – Are we making SHUNYA sense?

Or is it an Indicator of Economic Shift and a major manifestation of the Potential in the under-served Rural India

In recent years, subscription-based services have gained tremendous popularity in urban India. Everything from entertainment and groceries to fitness and fashion. The growing success of subscription models in cities like Mumbai, Delhi and beyond is a reflection of several key factors that align with the lifestyles, preferences, and economic realities of urban consumers.

1. Convenience and Time-Saving

The appeal of subscription services lies in their convenience, allowing consumers to automate tasks they would otherwise spend time and effort on. From groceries delivered to the doorstep to regular meal kits to curated entertainment, subscription services help city dwellers save time and simplify their lives.

2. Affordability and Budget Management

Subscriptions often break down costs into manageable monthly fees, which helps with predictable small spending while getting the required services

3. Digital Infrastructure and Payment Ease

The availability of digital wallets, UPI, payment gateways and features like pay mandates, autopay, etc has made subscribing to services easier and more secure.

4. Opting for Services Over Ownership

There’s a growing trend where consumers value services over ownership. People would rather subscribe to access a wide range of products or services than invest in single, large purchases. For instance, instead of purchasing expensive fitness equipment, they subscribe to at-home workout platforms.

But while the growth of Subscriptions has been fairly visible now for the past few years, most have not been very bullish about the same phenomenon taking root in Rural India. And this while macros indicators seem to highlight that Rural is outpacing Urban growth in terms of aspiration and the drive to pursue them.

Which begets the question – if there is an issue that plagues our Rural population and there is a service that resolves to help them solve it – will the Rural customer thread the uncharted path including paying money digitally in Advance for a service that supplies them, beyond the goods, with convenience, ease of operating and avoid large investment that they need to make themselves. 

If you were to see what we are witnessing at our Micro-Service-Market around Kohra (in Kanpur Dehat from where we service 32 villages), you may want to rub your eyes with surprise. As you would expect, this MSM is largely agrarian with many of them also involved in dairy farming. While you would still see the cinematic representation of poverty in the village streets – each household is equipped with atleast 1 Smartphone in addition to many other high end gizmos. And while “development” is trickling into Duhroo village, which has moved from 50% electrification till about a decade back to now 100% electrification with a supply of about 16 hours, aspiration growth is at full pace.

This community believes in the incremental benefits of technology – hence most have Smart phone ownership. As per Nielsen in the report titled ‘India Internet Report 2023’, nearly half of rural India was on the internet, with strong growth of 30%, and more headroom for growth in the future. Rural India had more than 425 million internet users, a whopping 44% more than urban India, which had 295 million people using the internet regularly.

And almost all estimate of GDP growth clearly indicate the boom in Rural India as compared to its urban economy. The “Bharat” customers are equally online and hungry for whatever that can enrich their lives. That’s why the boom in agritech with most platforms operating off an app.

So what role does Shunya play in the lives of Dairy Farmers? We are looking to solve for their issues related to availability of fodder. Fodder deficit in the country ranges from 35-50% as per various estimates. And because of this deficit, the diet that is currently fed to the cattle is sub-par in terms of nutrients which impact their productivity and health. So a fodder deficit issue has the long term potential of being a milk deficit issue that will manifest for humans!

Now the core of the problem lies in the fact that land as a resource is stretched and hence Green Fodder in particular is not being grown in our fields.

What is Green Hydroponic Fodder?

Hydroponic is a method of growing green fodder without soil, using water, nutrients, and controlled environments. Typically grown from cereal grains such as maize, wheat, or barley, this fodder is cultivated in a matter of days, providing a nutrient-rich, fresh, and easily digestible feed for livestock. For farmers in rural India, this means year-round access to quality fodder, regardless of weather conditions or land availability.

And the modern farmers who are exposed to the latest in agritech know about the wonders of the technology and its utility with regards to Green Fodder. But as an individual farmer, it’s very difficult to set up and run a hydroponics setup due to the input cost of setting up and the fact that the process needs to be immaculate to get the optimal output availability.

The Subscription Model: Convenience Meets Sustainability

So what if we were to offer services that provides regular deliveries of ready-to-feed hydroponic fodder to farmers’ doorsteps, eliminating the need for farmers to invest in and maintain costly hydroponic systems themselves.

The naysayers would call us crazy and this writeup a joke. But what we did eventually end up offering to this MSM was a subscription service of Green Hydroponically Grown Fodder. For a 30 day fee, paid in advance at absolutely fair price, farmers receive high-quality, eco-friendly fodder without worrying about fluctuations in climate or market availability.

For farmers who know about the wonders of Hydroponics and how it can churn out harvest in 10 days, this was a no brainer. The added credibility about our production setup with a technology sourced from the best companies in this space in the world has further wowed the audience and we have been able to onboard the first 150 subscribers in a couple of weeks.

They start off with a 10 day prepaid, subsidized (not free) subscription – which we insist on to drive our priorities like app download & adoption, feed latch on by the cattle (yes Cows & Buffalos are fussy eaters!), the experience of a subscription service where they can experiment with services like setting custom dates, pausing, cancelling etc.

Here are some eye-popping numbers

“Shunya’s HGF is a great product. My cow’s milk yield and fat content are up. I am recommending all my fellow dairy farmers to try it. This subscription is greatly beneficial for us farmers – that’s a no-brainer.” – Chandra Prakash, Kohra Village (Satisfied Customer, Active Influencer)

The subscription model catching on for several reasons:

1. Cost-Efficiency: Hydroponic fodder grows faster and uses less water and space than traditional fodder crops. Hence can be offered at competitive prices. Subscriptions spread the cost, making it accessible to smaller farmers.

2. Time Savings: Farmers can focus on other critical aspects of their operations rather than worrying about producing or procuring consistent, nutritious feed for their animals.

3. Sustainability: In a country facing increasing water scarcity and erratic weather patterns, hydroponics is a resilient and environmentally friendly alternative to traditional farming methods.

Why Hydroponic Fodder Subscriptions are an Economic Indicator

The early acceptance of such a service in rural India reflects broader trends in the Indian economy and offers a peek into what may come in the near future. Here’s why:

1. Digital and Financial Inclusion in Rural Areas

The subscription model thrives on access to digital payments, mobile technology, and basic infrastructure like roads and logistics. The fact that rural farmers are subscribing to these services indicates increased digital literacy, internet penetration, and financial inclusion. It reflects the impact of government initiatives such as Digital India and Pradhan Mantri Jan Dhan Yojana, which aim to bring digital banking and financial services to remote corners of the country. The adoption of digital platforms also points to the rising trust in online transactions in rural India.

2. Modernization of Traditional Agriculture

Agriculture in India has traditionally been labor-intensive and heavily dependent on natural elements like monsoons. However, the subscription model for hydroponic fodder indicates a shift towards a more modern, technology-driven approach to farming. Farmers are increasingly adopting innovative techniques that are not only more sustainable but also reduce dependency on external factors like weather. It potentially shows that rural India is ready for, and capable of, embracing agricultural modernization.

3. Rising Awareness of Sustainability

Hydroponics represents a shift towards more sustainable farming practices, and the subscription model makes it easier for farmers to adopt these without a significant upfront investment. The sign up and repeat rate potentially highlights that farmers are becoming more aware of the need for sustainable practices in the face of climate change and depleting natural resources. A shift towards sustainability also indicates a broader economic and cultural shift toward long-term resource management.

Signs of Big Things to Come

The early adoption trend of Green Hydroponic Fodder subscription services is not just a reflection of the evolving needs of rural farmers but a sign of deeper structural changes in the Indian economy. These changes hint at the following broader trends:

  • Increased Entrepreneurial Activity: The success of subscription models like these opens doors for other innovative startups that target rural consumers. This will have the dual impact of solving for many other understated issues that our Rural populations faces. And it is likely to spur large scale job creation (potentially arresting urban migration) and improving income levels in rural areas.
  • Integration of Sustainable Practices: As more farmers adopt hydroponic and other sustainable farming methods, India is moving closer to achieving food security and environmental sustainability. These practices will likely lead to more significant investments in green technologies and climate-resilient agriculture.
  • Potential for Enhanced Productivity: With consistent access to nutritious fodder, livestock health improves, leading to higher yields in dairy and meat production. This has the potential to boost incomes for farmers and contribute to the rural economy’s overall growth.

And while individual level Hydroponic Fodder setups will continue to be a no-no for most, we foresee many entrepreneurial, resourceful individuals and groups looking to pool in money and resources to set such GLCs for servicing their own communities. We look forward to supporting them and our (work-in-progress) Franchisee model will be a great framework for a win-win-win partnership! We will also be cheering on for many other relevant subscription services being created for BHARAT.

Conclusion: The Future of Rural India

The early acceptance of Green Hydroponic Fodder subscriptions can potentially be the most convincing signal of changing times in rural India. It represents a growing shift toward sustainable, technologically-driven agriculture, an increasing adoption of digital financial services, and a deeper integration of rural communities into the broader economy.

As these subscription models continue to gain traction, they will strengthen the signal that rural India is not just catching up but is poised to be at the forefront of the next wave of economic transformation. The early success of our service gives us immense confidence that big things are on the horizon for the Indian agricultural sector. The stage is being set for a future where technology, sustainability, and economic growth intersect to create a more resilient and prosperous rural economy.