Synopsis
In 2024, India's direct-to-consumer (D2C) sector secured the second highest funding globally, with a total of $757 million. Major growth was noted in early-stage investments, particularly in organic beauty brands, reflecting the sector's evolving landscape and potential.Key Takeaways
- India ranks second globally in D2C funding.
- Funding reached $757 million in 2024.
- Over 11,000 D2C companies exist in India.
- Early-stage funding increased by 25% to $355 million.
- Government initiatives support D2C growth.
Bengaluru, April 16 (NationPress) India has attained the second position globally regarding the funds raised by the direct-to-consumer (D2C) industry in 2024, as reported on Wednesday.
It stands just behind the United States and ahead of China, the UK, and Italy, according to findings from Tracxn.
The report highlights that the total funding within India’s D2C ecosystem reached $757 million in the previous year.
India boasts over 11,000 D2C companies, with approximately 800 successfully securing funding to date.
There was notable growth in early-stage and seed-stage funding, with early-stage investments increasing by 25 percent to $355 million in 2024 compared to 2023, while seed-stage funding rose by 18 percent to $141 million.
“India’s D2C sector is progressing with a focus on profitability and sustainable growth. The uptick in early-stage investments reflects ongoing confidence in the long-term prospects of India’s D2C landscape,” stated Neha Singh, Co-Founder of Tracxn.
Among the top-funded categories in 2024 were D2C organic beauty brands, online jewelry brands, and D2C beauty brands.
Organic beauty brands experienced a significant surge in funding, attracting $105 million — a 79 percent increase from 2023.
The largest funding round in 2024 was secured by BlueStone, which raised $71 million in Series D funding, achieving a valuation of $964 million, as per the report.
Bengaluru emerged as the leading city for funding, drawing $253 million, followed by Gurugram with $164 million and Mumbai with $99.8 million.
Combined, Bengaluru and Gurugram represented over half of all funds raised in the sector, according to the report.
In order to bolster the D2C ecosystem, the Indian government has rolled out various initiatives, including Digital India, Startup India, and the Open Network for Digital Commerce (ONDC).
Additional initiatives like the Export Promotion Mission, Government e-Marketplace (GeM), and the Green Credit Programme are assisting D2C brands in expanding globally and embracing sustainable practices.
