Imagine walking past your favourite street-side store and seeing it buzz with activity again—like the old days. That's the future a group of Malayali entrepreneurs behind the startup Nearwala say they’re working towards.
Set up under NearPay Innovations Private Limited, Nearwala was launched in 2024 to help small and medium businesses (SMEs) stay competitive in an increasingly digital retail world. With online giants eating up market share, the startup claims it is giving local shops a fighting chance—by plugging them into artificial intelligence.
The company says it helps shops reach new customers, offer real-time discounts, and provide personalised recommendations to users. Essentially, the idea is to combine the convenience of online shopping with the familiarity of local stores.
So far, Nearwala is said to be active in five cities—Bengaluru, Hyderabad, Kochi, Coimbatore and Kozhikode. According to the company, it serves around 2,00,000 customers and works with over 2,000 merchants.
Co-founder Rajiv believes Kerala could be a key market. “With its high literacy rate and tech-savvy population, the state is primed for digital solutions in retail,” he said.
He pointed to Kerala’s mixed retail ecosystem—where large shopping malls like Lulu Mall in Kochi and Thiruvananthapuram, HiLITE Mall in Kozhikode, and Sobha City Mall in Thrissur coexist with traditional family-run shops. According to him, Nearwala could fit right into this blend.
He also said that initiatives like Supplyco reflect a government focus on accessible and affordable retail, which Nearwala hopes to complement by supporting smaller merchants through digital tools.
While the company is based in Bangalore and registered under Kerala Startup Mission, its roots go back to Kozhikode, where the founding team hails from.
The tech engine is run by a 15-member team led by Arun Ravindranath, a product manager and Google community organiser. The operations, marketing, and outreach are handled by a broader team of 50 professionals spread across three states.
According to the company, Nearwala uses artificial intelligence to predict shopping trends, personalise user experiences, and run targeted marketing. It also claims to have developed a dynamic discounting system that tailors offers to specific locations based on local shopping patterns.
The team is said to be working on business forecasting tools as well—helping merchants anticipate demand in their current or potential locations.
Most discounts are funded by the shops themselves, as part of their marketing strategy. Nearwala may chip in additional discounts too, depending on the campaign.
Regarding the shops on-boarding, the startup follows a multi-channel onboarding strategy. Field executives reach out to local shops directly, while affiliate marketing and user referrals help build the network further. Shops can also sign up online on their own
The platform, as described by the company, generates revenue from transaction fees, user subscriptions, premium services for merchants, and lead generation charges. It positions itself as a tech-powered customer acquisition platform for local retailers.
Nearwala said it recently completed a post-seed funding round of ₹2.5 crore, backed by angel investors and high-net-worth individuals from Dubai and Hyderabad.
This year, the company plans to raise $3 million in pre-Series A funding. The bigger bet is a $12 million (roughly ₹100 crore) Series A round targeted for fiscal year 2025–26.
The startup has outlined its plan to expand to 50 more cities by FY 2025–26. It claims to be facilitating business worth ₹20 million each month at present.
If all goes according to plan, Nearwala could soon become a familiar name for shopkeepers looking to adapt to a changing marketplace—without losing their local touch.
