"The vision at Spice Money is clear: to empower India’s rural communities by providing equitable access to essential financial services and fostering local entrepreneurship,” said Dilip Modi, CEO and Founder, Spice Money. With over 14 lakh Adhikaris covering 95 per cent of India’s pincodes, Modi believes Spice Money is uniquely positioned to address the specific financial needs of rural markets.
In an interview with BW Businessworld, Modi shares his insights on how Spice Money is leveraging technology and local partnerships to bridge the digital divide, create employment opportunities, and drive financial inclusion in rural India.
What is the vision behind Spice Money's future roadmap, and how do you plan to expand your services beyond banking and financial solutions?
Our vision at Spice Money is to empower rural communities across India by providing equitable access to essential financial services. With a network of over 14 lakh Adhikaris, covering 95 per cent of India’s pincodes, Spice Money has built a tech-led model that caters to the specific needs of emerging markets.
According to NPCI data, Spice Money operates the largest assisted bill payments network in rural India, simplifying financial accessibility for underserved communities. The Bharat Connect platform, which has enabled over 21.7 lakh transactions worth Rs 450 crore in just three months, exemplifies our focus on bridging financial gaps and enhancing income potential for rural entrepreneurs.
As we move forward, our focus is to drive UPI adoption for the next billion users in rural India by leveraging our Prepaid Payment Instrument (PPI) licence. This allows Adhikaris and their customers to use cashless, secure digital transactions, particularly benefiting those with inactive or limited bank access. Our goal is to develop a comprehensive financial ecosystem, expanding into areas like investments, savings, insurance, and credit for rural communities. Through our Adhikari centres, we aim to build self-reliant, economically resilient rural communities.
Can you elaborate on your focus on credit and UPI-based solutions, and how these initiatives bridge the digital divide in rural India?
Bridging the digital divide in rural India is central to our mission. By disbursing over 107,000 loans, we address the demand for micro-financing that drives local entrepreneurship, Modi said, noting that flexible repayment options empower small businesses to expand and create jobs.
With a vast network of nearly 4 lakh Adhikaris and a customer base of 2.5 crore users transacting monthly, our platform is uniquely positioned to introduce this segment to credit opportunities that support business growth and income expansion. Our extensive UPI-enabled network supports cashless, real-time transactions, even in areas with limited banking infrastructure, familiarising rural communities with digital finance. This approach strengthens local economies, fostering consistent digital engagement and financial empowerment across rural India.
What challenges have you faced in implementing digital solutions in rural areas, and how have you overcome these obstacles?
Implementing digital solutions in rural India comes with unique challenges, including low digital literacy and limited infrastructure. Our vast network of Adhikaris—acting as local ambassadors—is crucial in overcoming these hurdles. Through Spice Money Academy, Adhikaris receive training on digital skills, compliance, and financial literacy, enabling them to educate their communities effectively.
Products like Aadhaar Enabled Payment System (AePS) are essential in rural banking and Spice Money facilitates over 1.75 crore AePS transactions monthly. This combination of training, local engagement, and rural-specific products helps break down barriers to digital adoption and drive financial inclusion.
As competition grows in the digital finance sector, how does Spice Money differentiate itself?
Our focus is clear: rural and semi-urban India, regions often overlooked by mainstream financial services. With a network of over 14 lakh Adhikaris and an 18 per cent market share in AePS transactions, Spice Money prioritises inclusive finance for underserved areas.
Spice Money stands out with a zero-investment model for Adhikaris, fast onboarding, and a strong regulatory foundation, holding licences like BBPS and PPI for UPI wallets. This empowers us to offer a broad range of services, including utility payments, insurance, and micro-loans, all tailored to rural users' needs.
How is Spice Money creating employment and entrepreneurship opportunities in rural India?
Spice Money is dedicated to empowering rural nanopreneurs who act as essential providers of financial services. Each Adhikari centre offers bill payments, cash withdrawals, micro-ATM facilities, UPI and Bharat connect bill payment solutions, creating reliable income sources in remote areas like Chitkul and Komic.
Our model allows Adhikaris to earn commissions on transactions, making up to Rs 6 lakh annually. Beyond payments, our Adhikaris are also helping to drive credit access, insurance, and savings products, which are critical to economic growth in rural settings. This community-driven approach supports economic resilience by building a foundation of financial literacy, savings, and investment in rural India.
What specific steps is Spice Money taking to address the compliance issues highlighted by the RBI’s Rs 1 crore fine, and how will these actions impact your commitment to regulatory standards moving forward?
In light of the Reserve Bank of India’s compliance requirements, at Spice Money, we continuously prioritise regulatory standards through robust internal auditing and risk management protocols. The RBI fine, issued three years ago in 2021, reinforced our commitment to maintaining transparent operations aligned with industry best practices, ensuring a secure and compliant ecosystem for all our stakeholders.
Spice Money reported an 80 per cent growth in service-fee revenue recently. What factors contributed to this, and how do you plan to sustain it?
Our 80 per cent growth in service-fee revenue from FY’21 to FY’22 was largely due to increased demand for AePS cash withdrawals during the pandemic," Modi stated. Going forward, we expect steady annual growth of 20-25 per cent as we expand our offerings to include CMS, CASA, and credit services, ensuring our products meet the evolving needs of rural communities.
What is Spice Money’s vision for the next decade?
Over the next ten years, Spice Money aims to be rural India's most trusted digital financial services provider. With plans to grow the Adhikari network to 3 million and expand services in credit, health, and education, our vision is to create a sustainable rural ecosystem where local entrepreneurs can thrive. We aim to drive long-term prosperity and inclusive growth across rural India by bridging the urban-rural divide.
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