Fateh Rural alliance targets India’s rural loyalty gap

Fateh Rural has formed a strategic alliance with Karuyaki Solutions, Grattonz and Five10x around loyalty programmes for rural distributor networks in India.

The companies said the partnership centres on an integrated approach that combines technology, rewards design and on-ground execution. They positioned the model for brands with large rural distribution footprints, which they described as networks of more than 500 distributors.

Fateh Rural described rural distributor loyalty as under-developed compared with urban markets. The group also cited market estimates that put India's loyalty programme market at about USD $3.58 billion in 2025, with annual growth of more than 18 percent. It said rural penetration remained negligible despite rural distributors' role in sales across categories.

Deal structure

The partnership followed the signing of a Memorandum of Understanding in Mumbai by Sarabjit Singh Puri, Chairman, Fateh Rural; Rajeev Ubhe, CEO, Karuyaki; Ashutosh Karnik, Director, Grattonz and Five10x; and Hemang Desai, Promoter, Five10x.

Under the arrangement, Fateh Rural will run field execution and engagement activity. The company said it will use rural marketing teams, a field network and rural call centres. It will also identify and onboard distributors to loyalty platforms and handle ongoing engagement.

Karuyaki will provide the software infrastructure for the loyalty system. Grattonz and Five10x will work on rewards and loyalty frameworks, including points- and miles-based structures.

Rural focus

Companies in fast-moving consumer goods, agri-inputs, consumer durables and building materials feature prominently in the rural distribution landscape in India. The partners framed the alliance as a response to the way many loyalty schemes operate in rural channels.

Fateh Rural said many existing approaches focus on transactional rewards and software dashboards. It also said tracking often relies on spreadsheets. The group positioned its model as an "engagement-led" approach with performance measurement.

Fateh Rural also said the platform can extend beyond distributor populations. It said brands can adapt it for other groups, including employees, sales personnel and professionals such as doctors.

Executive comments

Fateh Rural said it sees a motivation gap in distributor networks and tied it to sales performance. "Today, nearly 80 percent of distributors remain inadequately motivated, with only about 20 percent actively driving performance for brands. This directly impacts sales outcomes. While loyalty programs exist, most are software-led, lack rural marketing understanding and depend heavily on Excel-driven tracking, where real performance often gets missed. This partnership brings together technology, schemes and reach in a highly synergised manner to deliver meaningful engagement. The opportunity is significant - the loyalty market itself is barely at one percent penetration, indicating enormous growth potential," said Sarabjit Singh Puri, Chairman, Fateh Rural Limited.

Karuyaki described a shift from fragmented activity towards unified tracking in rural settings. "From a technology standpoint, Mr. Rajeev Ubhe, CEO, Karuyaki, said the collaboration enables brands to move from fragmented loyalty efforts to a unified, data-driven engagement model that is easy to deploy and track, even in complex rural environments."

Grattonz and Five10x pointed to the role of recognition and rewards as levers in rural markets. "Mr. Ashutosh Karnik, Director, Grattonz and Five10x, highlighted that the partnership brings proven loyalty mechanics into rural markets where aspiration, recognition and rewards can significantly influence distributor behaviour."

International ambitions

Five10x is based in the United States. The alliance said it has plans that go beyond India and tied them to markets with distributor-led sales models.

"Mr. Hemang Desai, Promoter, Five10x (USA), noted that the model developed through this partnership has the potential to scale into other emerging markets where distributor-led growth remains a key lever."

Fateh Rural said it expects to onboard 20-25 brand clients in 2026.