BACK
The Next Half Billion
The Next Half Billion or the NHB are the core of our work. They represent the second big wave of internet users in India hence the term “Next”. We define them as the cohort of 500 million first-time internet users that have come online via their mobile phones in the five years between 2018 to 2022.
The NHB differs in many ways from the first wave of internet users that came pre-2018. Being “mobile first” is only one of them. Unlike the first wave of internet users who were mostly upper and upper-middle income , the NHB are less affluent, coming predominantly from the bottom 60% of India’s income distribution and earning less than Rs. ~21,000 per household per month. From a demographic standpoint, they are small business owners like beauty salons and kirana shops, blue collar workers, domestic help, security guards etc. They are building greater comfort with tech and represent the hustle and ambition of an aspiring India.
The NHB differs in many ways from the first wave of internet users that came pre-2018. Being “mobile first” is only one of them. Unlike the first wave of internet users who were mostly upper and upper-middle income , the NHB are less affluent, coming predominantly from the bottom 60% of India’s income distribution and earning less than Rs. ~21,000 per household per month. From a demographic standpoint, they are small business owners like beauty salons and kirana shops, blue collar workers, domestic help, security guards etc. They are building greater comfort with tech and represent the hustle and ambition of an aspiring India.
The Next Half Billion: Creating Holistic Impact
Our investment theses
Our investment approach is to create a holistic impact on the NHB by supporting entrepreneurs. Towards this end, we invest in start-ups that serve the NHB. Read more about our investment thesis here. But for a more meaningful and large-scale impact, we also need to support a much wider range of efforts. Such as: research efforts that provide insights to entrepreneurs and policy makers, lighthouse projects with demonstration effects, orgs partnering governments in pioneering initiatives, communications and awareness building, and digital infrastructure. Read more about approach to supporting these initiatives here.
VIEW ARTICLE
From a small elite to the Next Half Billion: The evolution of the Indian entrepreneur
Roopa Kudva is Managing Director, Omidyar Network India. Writing in ET Evoke, she traces how the Indian tech-based entrepreneur evolved from serving a small urban elite to solving crucial issues for millions in aspirational India:
VIEW ARTICLE
The next frontiers for India’s next half billion
India’s Next Half Billion (NHB) is represented by people like factory workers, security guards, domestic help, and gig economy workers. These Indians either have or will come online for the first time via their mobile phones between 2017 and 2022. They represent the lower 60 percent of India’s income distribution and have traditionally been underserved, excluded and disempowered. Not surprisingly, their experience of using and engaging with technology is fundamentally different to that of most readers of this piece.
VIEW ARTICLE
Getting more women to be part of India’s growth journey
Businesses can help by bridging the digital divide and looking at diversity, equity and inclusion as a ‘strategic lever’Over the last decade we have seen the potential of the internet and mobile phones to improve lives by providing greater opportunities and choices. Tech-led solutions are fostering meaningful lives in many ways — providing access to aspirational products and services; facilitating employment and productivity; promoting individual agency; and enabling responsive institutions for citizens.
VIEW ARTICLE
Building trust in technology
Adoption of responsible tech practices — inclusion, privacy, security, transparency and good governance -- is essential to create trust in technology, and a thriving and well-governed digital society. Trust is the backbone of the digital economy. When individuals trust the internet, they participate more freely. Building trust requires sustained efforts and is complex but can create immense value. Fostering trust, in the Indian context, has three key dimensions.
VIEW ARTICLE
Our Grantmaking Thesis
The core of our grantmaking thesis is that driving social impact at scale requires taking a holistic approach ” one that includes all the key elements that a constitute a meaningful life for the NHB ” and fostering a supportive ecosystem in each of these elements. This focus on ecosystem development is a unique feature of our approach. Our grantmaking thesis combines this focus with a multidimensional grantmaking toolkit and nuanced tech-led sector level strategies that identify the next frontiers for change.
VIEW REPORT
Our Investment Thesis
Our investment thesis postulated that internet and mobile phones could unlock greater incomes, opportunities and choices for the NHB through new tech-led business models. Five years since we began focusing on this segment, this paper takes stock of how our thesis is playing out and how NHB-focused business models have evolved. It also anticipates the next frontiers in the NHB’s digital journey and the opportunities for entrepreneurs serving them.
VIEW REPORT
Our Grantmaking Thesis
The core of our grantmaking thesis is that driving social impact at scale requires taking a holistic approach ” one that includes all the key elements that a constitute a meaningful life for the NHB ” and fostering a supportive ecosystem in each of these elements. This focus on ecosystem development is a unique feature of our approach. Our grantmaking thesis combines this focus with a multidimensional grantmaking toolkit and nuanced tech-led sector level strategies that identify the next frontiers for change.
VIEW REPORT
Our Investment Thesis
Our investment thesis postulated that internet and mobile phones could unlock greater incomes, opportunities and choices for the NHB through new tech-led business models. Five years since we began focusing on this segment, this paper takes stock of how our thesis is playing out and how NHB-focused business models have evolved. It also anticipates the next frontiers in the NHB’s digital journey and the opportunities for entrepreneurs serving them.
VIEW REPORT
The Next Half Billion: Creating Holistic Impact
Our investment theses
Our investment approach is to create a holistic impact on the NHB by supporting entrepreneurs. Towards this end, we invest in start-ups that serve the NHB. Read more about our investment thesis here. But for a more meaningful and large-scale impact, we also need to support a much wider range of efforts. Such as: research efforts that provide insights to entrepreneurs and policy makers, lighthouse projects with demonstration effects, orgs partnering governments in pioneering initiatives, communications and awareness building, and digital infrastructure. Read more about approach to supporting these initiatives here.
VIEW ARTICLE
From a small elite to the Next Half Billion: The evolution of the Indian entrepreneur
Roopa Kudva is Managing Director, Omidyar Network India. Writing in ET Evoke, she traces how the Indian tech-based entrepreneur evolved from serving a small urban elite to solving crucial issues for millions in aspirational India:
VIEW ARTICLE
The next frontiers for India’s next half billion
India’s Next Half Billion (NHB) is represented by people like factory workers, security guards, domestic help, and gig economy workers. These Indians either have or will come online for the first time via their mobile phones between 2017 and 2022. They represent the lower 60 percent of India’s income distribution and have traditionally been underserved, excluded and disempowered. Not surprisingly, their experience of using and engaging with technology is fundamentally different to that of most readers of this piece.
VIEW ARTICLE
Getting more women to be part of India’s growth journey
Businesses can help by bridging the digital divide and looking at diversity, equity and inclusion as a ‘strategic lever’Over the last decade we have seen the potential of the internet and mobile phones to improve lives by providing greater opportunities and choices. Tech-led solutions are fostering meaningful lives in many ways — providing access to aspirational products and services; facilitating employment and productivity; promoting individual agency; and enabling responsive institutions for citizens.
VIEW ARTICLE
Building trust in technology
Adoption of responsible tech practices — inclusion, privacy, security, transparency and good governance -- is essential to create trust in technology, and a thriving and well-governed digital society. Trust is the backbone of the digital economy. When individuals trust the internet, they participate more freely. Building trust requires sustained efforts and is complex but can create immense value. Fostering trust, in the Indian context, has three key dimensions.
VIEW ARTICLE
Our Grantmaking Thesis
The core of our grantmaking thesis is that driving social impact at scale requires taking a holistic approach ” one that includes all the key elements that a constitute a meaningful life for the NHB ” and fostering a supportive ecosystem in each of these elements. This focus on ecosystem development is a unique feature of our approach. Our grantmaking thesis combines this focus with a multidimensional grantmaking toolkit and nuanced tech-led sector level strategies that identify the next frontiers for change.
VIEW REPORT
Our Investment Thesis
Our investment thesis postulated that internet and mobile phones could unlock greater incomes, opportunities and choices for the NHB through new tech-led business models. Five years since we began focusing on this segment, this paper takes stock of how our thesis is playing out and how NHB-focused business models have evolved. It also anticipates the next frontiers in the NHB’s digital journey and the opportunities for entrepreneurs serving them.
VIEW REPORT
Our Grantmaking Thesis
The core of our grantmaking thesis is that driving social impact at scale requires taking a holistic approach ” one that includes all the key elements that a constitute a meaningful life for the NHB ” and fostering a supportive ecosystem in each of these elements. This focus on ecosystem development is a unique feature of our approach. Our grantmaking thesis combines this focus with a multidimensional grantmaking toolkit and nuanced tech-led sector level strategies that identify the next frontiers for change.
VIEW REPORT
Our Investment Thesis
Our investment thesis postulated that internet and mobile phones could unlock greater incomes, opportunities and choices for the NHB through new tech-led business models. Five years since we began focusing on this segment, this paper takes stock of how our thesis is playing out and how NHB-focused business models have evolved. It also anticipates the next frontiers in the NHB’s digital journey and the opportunities for entrepreneurs serving them.
VIEW REPORT
Investing for Holistic Impact on the NHB
Our investment approach is to create a holistic impact on the NHB by supporting entrepreneurs. Towards this end, we invest in start-ups that serve the NHB. Read more about this in ‘Next Half Billion - The Next Frontiers: Innovating for the Next Half Billion’.
But for a more meaningful and large-scale impact, we also need to support a much wider range of efforts. Such as: research efforts that provide insights to entrepreneurs and policy makers, lighthouse projects with demonstration effects, orgs partnering governments in pioneering initiatives, communications and awareness building, and digital infrastructure. Read more about this in ‘Next Half Billion - The Next Frontiers: Helping create a meaningful life for the NHB’.
But for a more meaningful and large-scale impact, we also need to support a much wider range of efforts. Such as: research efforts that provide insights to entrepreneurs and policy makers, lighthouse projects with demonstration effects, orgs partnering governments in pioneering initiatives, communications and awareness building, and digital infrastructure. Read more about this in ‘Next Half Billion - The Next Frontiers: Helping create a meaningful life for the NHB’.
Startups
Click to read:
‘Next Half Billion - The Next Frontiers:
The Next Frontiers: Innovating for the NHB’
‘Next Half Billion - The Next Frontiers:
The Next Frontiers: Innovating for the NHB’
Research & Insights for
entrepreneurs & policy makers
entrepreneurs & policy makers
Click to read:
‘Next Half Billion - The Next Frontiers:
Helping create a meaningful life for the NHB’
‘Next Half Billion - The Next Frontiers:
Helping create a meaningful life for the NHB’
Lighthouse projects with
demonstration effects
demonstration effects
Click to read:
‘Next Half Billion - The Next Frontiers:
Helping create a meaningful life for the NHB’
‘Next Half Billion - The Next Frontiers:
Helping create a meaningful life for the NHB’
Holistic
Impact on
the NHB
Impact on
the NHB
Communications & awareness
building
building
Click to read:
‘Next Half Billion - The Next Frontiers:
Helping create a meaningful life for the NHB’
‘Next Half Billion - The Next Frontiers:
Helping create a meaningful life for the NHB’
Orgs partnering governments in
pioneering initiatives
pioneering initiatives
Click to read:
‘Next Half Billion - The Next Frontiers:
Helping create a meaningful life for the NHB’
‘Next Half Billion - The Next Frontiers:
Helping create a meaningful life for the NHB’
Digital infrastructure
Click to read:
‘Next Half Billion - The Next Frontiers:
Helping create a meaningful life for the NHB’
‘Next Half Billion - The Next Frontiers:
Helping create a meaningful life for the NHB’
Grassroots orgs with
last-mile reach
last-mile reach
Click to read:
‘Next Half Billion - The Next Frontiers:
Helping create a meaningful life for the NHB’
‘Next Half Billion - The Next Frontiers:
Helping create a meaningful life for the NHB’
Startups
Click to read:
‘Next Half Billion - The Next Frontiers:
The Next Frontiers: Innovating for the NHB’
‘Next Half Billion - The Next Frontiers:
The Next Frontiers: Innovating for the NHB’
Research & Insights for
entrepreneurs & policy makers
entrepreneurs & policy makers
Click to read:
‘Next Half Billion - The Next Frontiers:
Helping create a meaningful life for the NHB’
‘Next Half Billion - The Next Frontiers:
Helping create a meaningful life for the NHB’
Lighthouse projects with
demonstration effects
demonstration effects
Click to read:
‘Next Half Billion - The Next Frontiers:
Helping create a meaningful life for the NHB’
‘Next Half Billion - The Next Frontiers:
Helping create a meaningful life for the NHB’
Holistic
Impact on
the NHB
Impact on
the NHB
Click to read:
‘Next Half Billion - The Next Frontiers:
The Next Frontiers: Innovating for the NHB’
‘Next Half Billion - The Next Frontiers:
The Next Frontiers: Innovating for the NHB’
Communications & awareness
building
building
Click to read:
‘Next Half Billion - The Next Frontiers:
Helping create a meaningful life for the NHB’
‘Next Half Billion - The Next Frontiers:
Helping create a meaningful life for the NHB’
Orgs partnering governments in
pioneering initiatives
pioneering initiatives
Click to read:
‘Next Half Billion - The Next Frontiers:
Helping create a meaningful life for the NHB’
‘Next Half Billion - The Next Frontiers:
Helping create a meaningful life for the NHB’
Digital infrastructure
Click to read:
‘Next Half Billion - The Next Frontiers:
Helping create a meaningful life for the NHB’
‘Next Half Billion - The Next Frontiers:
Helping create a meaningful life for the NHB’
Grassroots orgs with
last-mile reach
last-mile reach
Click to read:
‘Next Half Billion - The Next Frontiers:
Helping create a meaningful life for the NHB’
‘Next Half Billion - The Next Frontiers:
Helping create a meaningful life for the NHB’
How our investees address the digital barriers faced by the Next Half Billion
Several segments within the Next Half Billion
Providers
174 million
“ I just want stability in my life. This means a better job, education for my children and savings if there are funds left over” Suman, Muxarffapur, Bihar
- Predominantly older men in rural locations.
- Self-relient heads of the household.
- Use banks and save frequently.
- Use basic phones frequently.
Gender
Openess
Formal Financial Access
Sources in Emergency
Technology and Media Use
Survivors
97 million
“When there was a drought, I didn’t know if I had enough for my family to have one meal a day.”Y Malleshwam, Medak, Telengana
- Rural and mostly farmers
- In constant debt cycle with extreme volatile income
- Very limited use of financial tools
- Low income and pessimistic outlook on life
- Use very little technology and heavily reliant on family
Gender
Openess
Formal Financial Access
Sources in Emergency
Technology and Media Use
Influencers
184 million
“My friends and I saw ads for PayTM in all the shops. now I use it for all my shopping, transfers, utilities and phone recharges.” Arnab, Kolkata, West Bengal
- Predominantly men in urban and rural areas
- Educated and in full-time employment
- Highly independent and self confident
- Embraced digital technologies
- Influencers in their network
Gender
Openess
Formal Financial Access
Sources in Emergency
Technology and Media Use
Followers
174 million
“I don’t know about banking. My husband is here, he takes care of payments.” Sangeetha, Medak, Telengana
- Mostly rural women
- Supported by others or in unstable occupations
- Family-oriented with traditional beliefs in authority
- Do not use financial tools frequently
- Have an appetite for financial risk
Gender
Openess
Formal Financial Access
Sources in Emergency
Technology and Media Use
Independents
155 million
“I want to be the head of the self help groups for my cluster. It is a paid government position and I am already taking inputs from the previous head on how to go about it.”
- Rural and mostly farmers
- In constant debt cycle with extreme volatile income
- Very limited use of financial tools
- Low income and pessimistic outlook on life
- Use very little technology and heavily reliant on family
Gender
Openess
Formal Financial Access
Sources in Emergency
Technology and Media Use
Seekers
155 million
“I have a lot of plans for my education and future jobs. But advice on what todo and the right time to do it would be helpful.” Puja, Murshidabad, West Bengal
- Mostly younger women
- Casually employed or dependent on others
- Seeking out new ideas and open to financial risk-taking
- Do not use financial tools frequently
- Use very little technology
Gender
Openess
Formal Financial Access
Sources in Emergency
Technology and Media Use
Source: Dalberg’s Aspiring Indians Report 2019
The digital adoption journey of the Next Half Billion
For entrepreneurs to serve the NHB effectively and build sustainable businesses, fostering NHB trust and confidence in the internet and online transactions / purchases is essential. Success requires addressing the barriers that this population segment perceives and experiences, as well as being attuned to their cultural contexts and social norms. The first step is simply to get more people online more frequently. The next step is to build their comfort level and trust with using the internet. That will likely follow the same evolution from simple to more sophisticated use cases outlined in the graphic below.
The Covid-19 pandemic has been a game changer in this respect. It has rapidly increased comfort in using the internet and undoubtedly accelerated the digital journey of the NHB by several years. For instance, rural mobile data consumption in India grew nearly 30% in the first three months of the nation-wide lockdown imposed in March 2020, bridging the gap with urban consumption, which grew at 15-20%. Indians on average spent nearly 30 minutes extra per day on their smartphones during the lockdown compared to earlier.
The Covid-19 pandemic has been a game changer in this respect. It has rapidly increased comfort in using the internet and undoubtedly accelerated the digital journey of the NHB by several years. For instance, rural mobile data consumption in India grew nearly 30% in the first three months of the nation-wide lockdown imposed in March 2020, bridging the gap with urban consumption, which grew at 15-20%. Indians on average spent nearly 30 minutes extra per day on their smartphones during the lockdown compared to earlier.
In summary
The NHB are a priority for India – the fortunes of this cohort will define India’s trajectory of growth, well-being and prosperity in the decades to come. In many ways, the progress in the NHB’s digital journey so far has been better than expected. This provides a strong foundation for Indian entrepreneurs to double down on the NHB segment and help create a meaningful life for them.
Know more about the Next Half Billion
Know more about the NHB
