Connecting Indian SMEs to global markets with Bluerickshaw

In our latest edition of the Tech Trailblazer series, we engaged in a conversation with Mr. Akshay Wadhwa, CEO of Bluerickshaw, a pioneering B2B export platform dedicated to bridging the gap between Indian small enterprises and global markets. In this engaging discussion, we explore Mr. Wadhwa’s entrepreneurship journey, delving into the creation and growth of Bluerickshaw during the pandemic.

Mr. Wadhwa’s shared insights into the future of cross-border trade and e-commerce inspire and inform those looking to expand their businesses globally. He elaborates on the platform’s unique services that facilitate SMEs’ entry into international markets and highlights the technological advancements and government initiatives that have supported their mission. We also discuss the challenges SMEs face in global trade, the promising markets for Indian exports, and suggestions for further boosting cross-border trade through improved banking practices and policy support.

IBT: What inspired you to transition from a career in fashion design to entrepreneurship in the tech industry? Can you walk us through the process of founding Bluerickshaw during the COVID-19 lockdown?

Akshay Wadhwa: I’ve been frequently asked about my journey, especially by US clients and SMEs. It all started during COVID, which was a reality check for many. During the first lockdown, I was working with over 300 stores worldwide, including Anthropologie in New York. We had a huge shipment ready, but everything came to a halt. As a businessman and designer, I had to find a way to move those orders. We received cancellation notices, prompting me to take action.

That’s when I conceived Bluerickshaw. I quickly built a website to sell in open markets since buyers were canceling orders. We received various requests, and many in our area were in the same predicament. My dad’s factories in Greater Noida and Delhi NCR were also stuck. This was the birth of the idea, although we didn’t launch Bluerickshaw until 2021. We took our time, working on it slowly due to COVID.

Lockdown, surprisingly, was a blessing. It gave us time to plan a business model. Within eight months, we received our first investment checks and partnered with individuals from the US, officially launching Bluerickshaw. We started with fashion and gradually expanded into multiple categories.

IBT: Bluerickshaw focuses on helping SMEs reach international markets through wholesale import and export. Can you elaborate on the specific services you offer and how they benefit these small businesses?

Akshay Wadhwa: Blue Rickshaw aims to revolutionize the export model for small factories in places like Muradabad and Sarangpur, which typically have limited capital and small workforces. Traditionally, breaking into overseas markets involves significant costs and years of networking.

Blue Rickshaw offers direct access to international buyers with just a few clicks, bypassing these traditional barriers. This allows small Indian factories to sell to customers in places like Wisconsin or Calgary without hefty expenses. Additionally, Blue Rickshaw handles complex compliance requirements, such as IEC and various export certifications.

Currently, Blue Rickshaw supports over 8,000 SMEs in India, with 20% experiencing an 80% business increase in the last two years. This growth is driven by a dedicated team that understands both the Indian market and international demands, supported by local resources in the US. By eliminating middlemen and connecting small factories directly to global markets, Blue Rickshaw empowers SMEs and provides international buyers with unique, quality products.

In our nearly three-year journey, we’ve seen some of these SMEs recognized as brands in the US, highlighting our vision of promoting Indian brands globally. Despite being a startup, we’ve made significant strides and are committed to further empowering SMEs and expanding their global presence.

IBT: How do Bluerickshaw’s B2B export platform and online marketplace for artisans differ from other similar platforms, and what sets it apart in terms of its offerings and approach?

Akshay Wadhwa: At Blue Rickshaw, we stand out as a managed marketplace with a stringent entry process to ensure quality and compliance, unlike conventional platforms. Once onboarded, we provide comprehensive end-to-end support, setting us apart from other players in the industry.

Our unique approach includes resolving FTAs for food brands, handling shipment and logistics challenges, and navigating foreign currency complexities. This holistic support is crucial for SMEs aiming to expand internationally without typical hassles.

What truly distinguishes us is our extensive network and local presence in key markets like the US, Canada, and Europe. This enables unparalleled market access for our partners through a global network of agencies, facilitating swift entry and growth.

Our success-based model ensures we profit only when our partners do, with no subscription fees, creating a win-win scenario. This commitment to quality and our curated approach for buyers build trust and credibility, positioning Blue Rickshaw as a leader in facilitating global trade for Indian SMEs.

IBT: What are some of the key trends and developments you’re seeing in the Indian cross-border trade and e-commerce industries? What role do you see technology and innovation playing in shaping the future of cross-border trade?

Akshay Wadhwa: I think this government is doing a fantastic job in implementing technology. The Indian government’s advancements in technology and policy have significantly benefited businesses like ours at Blue Rickshaw. For instance, the digitization of processes like obtaining shipping bills has streamlined exports, making them more efficient. The introduction of GST further enhanced this seamlessness. Additionally, initiatives supported by Invest India have facilitated partnerships and growth opportunities, aligning policies to support trade.

Over the past few years, we’ve witnessed substantial improvements in regulatory frameworks across sectors like e-commerce and banking. These changes have been pivotal in creating a favorable environment for platforms like ours, enabling smoother operations and expansion. While there are still areas to improve, the progress made in such a short time is remarkable and bodes well for the future of Indian exports.

Looking ahead, I’m optimistic that continued government efforts will further accelerate export growth, potentially multiplying it several times over the next five years. Platforms like Blue Rickshaw aim to play a small yet meaningful role in this transformative journey, alongside numerous other innovative platforms emerging in the ecosystem.

IBT: What are some of the biggest challenges SMEs face when trying to expand into international markets through e-commerce, and what advice would you give to help them avoid and solve these challenges?

Akshay Wadhwa: The biggest challenge we face, aside from regulatory issues, is gaining access to international markets. Entering these markets can be costly and success is not guaranteed. It’s a relationship-driven business where trust and reliability are paramount. Even with excellent products, it takes time for international buyers to trust and invest in your brand.

My advice to SMEs is to start small if necessary, but never compromise on quality or consistency. Timeliness is crucial—meeting or exceeding delivery timelines builds trust and credibility. Delays have historically been an issue, but with evolving e-commerce platforms like ours emphasizing regulation and reliability, we’re moving in the right direction.

For SMEs looking to expand into exports, it’s important to embrace this mindset and effort. Exporting isn’t overly complex; it’s about securing better prices and value for your products. Focus on quality, consistency, and meeting regulatory standards. With these foundations, success becomes achievable, positioning SMEs to thrive in international markets.

IBT: In your opinion, what are some of the most promising international markets for Indian SMEs to target through e-commerce, and what factors should they consider when selecting target markets?

Akshay Wadhwa: It entirely depends on the product portfolio. Tailoring your export strategy to each region’s market dynamics is crucial. For instance, while the US offers substantial market size, it also has intense competition from countries like Bangladesh, Vietnam, and China. Thorough market research and understanding consumer preferences are essential.

For handicrafts, North America might offer the best value, whereas commodities like oil may find a stronger market in the Middle East. Each region has its own requirements and market dynamics that influence where your products might succeed.

At Blue Rickshaw, we manage a diverse portfolio of over 600 products for sectors like hotels, restaurants, and retail stores. When SMEs upload their products to our platform, they gain access to markets in North America and Europe. We handle certifications, logistics, and regulatory requirements, ensuring efficient delivery to buyers. This approach allows SMEs to focus on producing high-quality goods while we manage the complexities of international trade, making export opportunities more accessible and viable.

IBT: The government of India is actively promoting cross-border trade through e-commerce. What are your views and suggestions for the government to further boost cross-border trade and support small businesses and MSMEs in their global expansion?

Akshay Wadhwa: I face significant daily challenges with India’s outdated banking system. Despite government efforts, the banking infrastructure remains cumbersome, posing a critical barrier to business success, especially in international transactions where speed and efficiency are crucial.

Accessing funds promptly to fulfill export orders is a core issue. Delays in obtaining loans or processing transactions often result in missed opportunities or delayed deliveries, impacting our credibility and growth. For example, securing a US$ 1 million order with only US$ 300,000 to build the products can be delayed by complex banking processes until after the order is shipped.

Improving banking practices, streamlining loan approvals, and modernizing financial transactions are essential. Government support in reforming these areas would significantly benefit SMEs, enabling smoother operations and enhancing competitiveness in global markets.

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Akshay Wadhwa, CEO and founder of Bluerickshaw, a pioneering B2B export platform aiming to bridge the gap between Indian small enterprises and global markets.