The businessman embraces the money bags from the Indian rupee. Granting the Financing Project or Education. Commerce, economy. Corruption. Provision of financial loan credit. Bank deposit. Budget, tax collection. Istock photo for bl | Photo credit: Andrii Yalanskyi
According to the data of the Tracxn Market Intelligence Platform, India assured the second position worldwide in terms of financing collected for the D2C sector in 2024, following the United States and ahead of China, the United Kingdom and Italy.
The sector raised total financing of $ 757 million in 2024, marking a significant decrease or 18 percent of the $ 930 million collected in 2023 and a strong 54% drop compared to $ 1.6 billion raised in 2022.
With more than 11000 companies, India is home to some of the largest D2C brands. However, only around 800 of these have obtained funds so far. The D2C space witnessed its maximum funds in 2021 and 2022, after which the funds began to reduce constantly, making 2024 the less financed year since 2021.
Early stage financing witnessed a total of $ 355 million in 2024, reflecting a 25 percent increase in $ 284 million collected in 2023. Meanwhile, the financing of the seed stage increased to $ 141 million by 20 grinding in the increase in increased increase in the increase of 18 percent in the increase in increased increase in the increase.
The late stage financing was $ 261 million in 2024, which reflects a 50 percent decrease in $ 526 million registered in 2023. This was the highest drop witnessed both in total and in the number of funds in 2024.
CAUTION INVESTOR
The decrease in financing can be attributed to the precaution of successful investors in the midst of a global economic slowdown, the oversaturation of similar brands and the economy of fluctuating units driven by high customer acquisition costs. In addition, D2C brands face challenges such as expansion and pressure outside the expense line to be profitable, which leads many to seek acquisitions as viable output strategies.
Speaking at the launch of their report, Neha Singh, Co-Founder of Tracxn, Said, “India’s D2c Sector is evolving with investig INESTOR-STAILS, THE IN INESTOR-IN INESTOR-IN INESTOR-IN INESTOR-IN INESTOR-IN INESTOR-SSTE-IN INESTOR-STALAGE, the signals continue the confidence in the long-term potential of the D2C sector of India.
Higher segments
The best financed segments in the D2C sector in 2024 were brands of organic beauty D2C, online jewelry brands and D2C beauty brands.
Bluestone, an online brand that offers precious subscription jewels, obtained $ 71 million in its financing round of the D Series D to an assessment of $ 964 million, which makes it the largest fund in the Indian space D2C in 2024.
Bella Vita Organic, a brand of beauty products of multiple categories, raised $ 48.5 million in her angel’s round of funds, while Woodensett, an Internet brand for custom furniture for houses, raised $ 43 million in a series round.
Unicorns were not created in 2024 and 2023, compared to 1 in 2022. Notly, the D2C space of India has created only 4 unicorns so far. These are Lenskart, Myglamm, boat and liard.
2024 witnessed 13 acquisitions, reflecting a decrease of 13 percent and 58 percent compared to those of 15 and 31 acquisitions in 2023 and 2022, respectively.
Three companies became public in 2024 compared to 6 companies in 2023. Companies that reached the status of OPI in 2024 were Interiors & More, Signoria and Kizi Apparels.
Bangalore led the D2C Indian financing sector in 2024 with a total financing of $ 253 million, followed by Gurugram with $ 164 million and Mumbai with $ 99.8 million. Bangalore and Gurugram represented 55 percent of the total funds raised in this space.
Firaside Ventures, Angel List and DSG Consumer Partners were the main general investors in 2024. Thapar Vision, Fireside Ventures and Z Nation Lab were the main investors in seed stage. Saama Capital, Unilever Ventures and Alteria Capital were the main investors in the initial stage, while I think that Investments was one of the main investors in late stage.
Posted on April 16, 2025
