PROMOTING DIGITAL FINANCIAL SERVICES FOR WOMEN MICRO MERCHANTS IN RURAL BANGLADESH ABOUT BUSINESS INNOVATION MODEL Merchants Development Driving Rural Markets (MDDRM) Project is an EU funded initiative. UNCDF's Shaping Inclusive Finance Transformations (SHIFT) programme in South Asian Association for Regional Cooperation (SAARC) - SHIFT SAARC is a regional market-facilitation initiative aiming to improve livelihoods and reduce poverty in SAARC countries. MDDRM seeks to stimulate the expansion of digital technologies for Micro-merchant segments by encouraging innovation and linkages between retail and nancial services industries. MDDRM primarily focuses its interventions in Sirajganj, Tangail, Jamalpur, and Sherpur districts targeting 10,000 retail Micro-merchants.

SHIFT MDDRM is facilitating 6 pilot innovation models utilizing micro-merchants networks reaching rural low income consumers through retail level value chains. The retail value chains will leverage the creative ideas and commercial instincts of FMCG and DFS providers by stimulating them to test innovative cross-sector business model and end-customer requisition strategies.

Merchants’ Development Driving Rural Markets (MDDRM) aims to stimulate the expansion of digital technologies for Micro-merchant segments by encouraging innovation and linkages between retail and nancial services industries. MDDRM primarily focuses its interventions in Sirajgonj, Tangail, Jamalpur, and Sherpur districts targeting 10,000 retail Micro-merchants.

Nationwide only 94,800 of more than 1.3 million retail micro-merchants in Bangladesh are women. One way to involve women in economic activity is through promoting women entrepreneurship. Women-owned businesses can make a pivotal contribution to household incomes and economic growth, as women generally invest a higher proportion of their earnings in their families and communities than men.

The SHIFT SAARC programme of UNCDF is facilitating market-based intervention to promote women entrepreneurship in this retail segment as micro-merchants through the social enterprise-iSocial. Under this initiative, rural women will be provided with training and other business development services to enter, develop and expand their businesses and serve the bottom of the pyramid consumers, especially to the women and adolescent girls.

Kallyani’s Shop or K’Shop is the idea put forward by ‘iSocial’ and has now been established at different places of Sirajganj and Sherpur. ‘K’Shop’ is a Disclaimer: “This publication has been produced with the assistance of the European Union. technology-based business model under a pilot where various FMCG products, health, The contents of this publication are the sole responsibility of iSocial & UNCDF and can in hygiene, and family planning commodities are available. K’Shop owners are also no way be taken to re ect the views of the European Union.” offering mobile money agents services. BUSINESS MODEL BENEFITS FOR STAKEHOLDERS

FMCG goods and services Utility bills payment Digitally equipped MFS/DFS Value at doorsteps Adolescent health, family entrepreneurs Chain Partners Digital nance services planning and pregnancy Change agents for Direct Agent banking services related information Women Micro- women empowerment FMCG Merchant Establish family business Credit Disbursed Beneciaries Goods (Kallyani) through K’Shops with Information Training on business

Orders Reach products at the Branding with K’Shops Received Received

Payments Payments management bottom of the pyramid Customer data and Sales into the untapped demographics • Order Placed Value Chain market Awareness campaigns • Payment Sent Partners through Kallyanis • Commission

iSocial HQ iSocial Health campaigns for Collected Financial Customer Employment and Lifestyle improvement Kallyani’s Shop Educational students and teachers Services empowerment both for through quality products and other Supply of stationary men and women and necessary services Institutions products Local Social welfare and develop- Community

Orders ment at community level Received Received Van Payments Payments

Delivery Collect primary family, Contribution on 7th Five demographic, customer, year plan of Government sales and product trend data Health Care Data centric information NGO & Services Government supply Likeminded Market activation FMCG Value FMCG Depot Local HUB Organizations Organizations opportunity Chain Partners Ofce KEY OUTPUTS PROJECT KEY Connecting women Prot generation for Kallyani through Digital Transaction LOCATIONS FEATURES micro-merchants for changing sales of mission critical products and throughout the lives of women, children and services including Behavioral Change value chain and adolescents girls Communications supply chain Digital equipped Independent Panchagarh Meeting nancial 200 Offering a basket, Making nancial Lalmonirhat Women interfaces for each Thakurgaon through specialization, inclusion work for Nilphamari Micro-merchants of the value needs of Women Kallyani shops Kurigram which includes women and chain/supply chain Micro-merchants (K-Shop) will be Dinajpur Rangpur adolescent care, maternal adolescent girls at players for business through Digital established in care and many more. the Bottom of the Gaibandha Data-driven management Financial Services selected locations  Pyramid (BoP) Joypurhat Sherpur value chain Naogaon Jamalpur Sunamganj market Bogra Netrokona C Comprehensive data analytics for value Šƒ’ƒ‹ƒ™ƒ„‰ƒŒ  Maulvibazar EXPECTED OUTCOMES Natore Sirajganj Tangail Kishoreganj Habiganj Integration of key chain/ supply chain value chain Pabna Gazipur partners Narsingdi partners Kushtia Manikganj Create and enhance To serve around 300 To reach FMCG products Meherpur Rajbari sustainable income of households on an average by and nance services to the Chuadanga Credit scoring for Jhenaidah Faridpur Munshiganj taka 5300/month for WMM through necessary doorsteps of BoP Magura Shariatpur distributors/dealers Madaripur Chandpur Seamless women micro merchants services and products with consumers by exploring the Narail Khagrachhari and Women Gopalganj transactions for Feni micro-merchants for appropriate BCC and holistic untapped market into the Lakshmipur Rangamati order placement, digital solutions (call center last mile Noakhali business expansion Jhalokati delivery tracking, Pirojpur and digital platform) Satkhira Bagerhat Bhola sales transaction Patuakhali recording E-learning platform Barguna for Women FUTURE STRATEGY Bandarban micro-merchants Payment and Cox's zar savings ƒ management for Women Making BoP market Facilitating corporates, Sherpur & Sirajganj; 4 upazilas in micro-merchants Creating Engaging Inclusion of 5 cost-effective to reach development partners and 2 districts 25,000 Women more value Million Women and for corporates, government agencies micro-merchants chain/ supply adolescent girls development partners reaching 20 Million BoP countrywide chain partners into digital nancial services facilities and government women and adolescents girls agencies as their clients