The Retail Digitization & Distribution Innovation Challenge invites startups to build technology-driven solutions for retail digitization, smart supply chains, digital payments, and merchant credit. The challenge aims to empower kirana and small retailers, reduce inefficiencies, and strengthen India’s retail and distribution ecosystem.
Open to Indian startups, MSMEs, and innovators working in retail technology, supply chain, digital payments, merchant credit, or distribution solutions.
Applicants must be incorporated or registered in India (DPIIT/Startup India recognition preferred but not mandatory at the time of application).
Startups at any stage—idea, prototype, MVP, pilot, or early commercialization—are eligible to apply.
Solutions should demonstrate innovation, scalability, and relevance to retail and distribution challenges.
Individual innovators may apply and may be required to register an entity if selected for incentives.
Low Digital Adoption in Kirana & Small Retail
A large number of kirana and small retail businesses still operate without digital tools for billing, inventory, payments, and customer management. There is a need for affordable, easy-to-use solutions that enable digital adoption and improve daily retail operations.
Stock Mismanagement, Wastage & Inefficient Inventory
Poor inventory planning and lack of real-time visibility lead to overstocking, stockouts, and product wastage. Startups are invited to develop smart inventory and demand forecasting solutions that reduce losses and improve retail efficiency.
Supply Chain & Logistics Inefficiencies
Fragmented supply chains and inefficient logistics increase costs and delay product availability, especially for small retailers. Innovative solutions are needed to optimize supply chain coordination, last-mile delivery, and distribution networks.
Limited Access to Digital Payments & Merchant Credit
Despite the growth of UPI and digital payments, many small merchants lack access to formal credit and financial services. This problem statement seeks solutions that enable seamless digital payments, credit access, and financial inclusion for retailers.
Awards:-
Grant / Cash Support – Up to ₹5 Lakh
Non-Fiscal Incentives
