New Delhi, Feb. 3 -- For years, grocery shopping was an exercise in disappointment for Venkataramanan Reddy, a 58-year-old farmer living near Rayachoty, a town of 1.25 lakh in Andhra Pradesh's Rayalaseema region. At the small neighbourhood stores he relied on, the quality of products, especially staples such as lentils, was poor, even as prices remained high.

Three years ago, that routine broke. Riding his bike into town, Reddy noticed a supermarket and slowed down. He hesitated, but curiosity and need got the better of him. He bought only a couple of items, but was hooked after that first visit.

The store is one of the 140 mostly franchisee-owned grocery outlets run by retail startup SuperK. All the stores are located in small urban ce...