India secured 2nd position globally in D2C funding: Report

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In line with knowledge by market intelligence platform Tracxn, India secured the second position globally in phrases of funding raised for the D2C sector in 2024, following america and forward of China, the UK and Italy.

The sector raised a complete funding of $757 million in 2024, marking a major decline of 18 per cent from the $930 million raised in 2023 and a pointy 54% drop in comparison with $1.6 billion raised in 2022. 

With over 11,000 corporations, India is residence to among the largest D2C manufacturers. Nevertheless, solely round 800 of those have secured funding to date. The D2C area witnessed its peak funding in 2021 and 2022, after which the funds started to say no steadily, making 2024 the least funded 12 months since 2021.

Early-stage funding witnessed a complete of $355 million in 2024, reflecting a 25 per cent enhance from the $284 million raised in 2023. In the meantime, seed-stage funding climbed to $141 million in 2024, marking an 18 per cent rise from the $119 million secured in 2023.

Late-stage funding stood at $261 million in 2024, reflecting a 50 per cent decline from the $526 million recorded in 2023. This was the best drop witnessed in each whole funding and the variety of funding rounds in 2024 in comparison with the earlier two years.

Investor Warning

The decline in funding could be attributed to heightened investor warning amid a worldwide financial slowdown, the oversaturation of comparable manufacturers, and fluctuating unit economics pushed by excessive buyer acquisition prices. Moreover, D2C manufacturers are dealing with challenges similar to costly offline enlargement and strain to be worthwhile, main many to hunt acquisitions as viable exit methods.

 Talking on the launch of their report, Neha Singh, Co-Founding father of Tracxn, mentioned, “India’s D2C sector is evolving with traders prioritising profitability and sustainable progress. Whereas general funding has declined because of investor warning and broader financial tailwinds, the rise in early-stage investments indicators continued confidence in the long-term potential of India’s D2C sector. Authorities help by means of initiatives like ONDC and Startup India can also be serving to create a extra resilient and scalable ecosystem.”

High segments

The highest-funded segments in the D2C sector in 2024 have been D2C Natural Magnificence Manufacturers, On-line Jewelry Manufacturers, and D2C Magnificence Manufacturers.

BlueStone, an internet model providing subscription-based valuable jewelry, secured $71 million in its Sequence D funding spherical at a valuation of $964 million, making it the biggest funding spherical in the Indian D2C area in 2024.

Bella Vita Natural, a multi-category magnificence merchandise model, raised $48.5 million in its angel funding spherical, whereas WoodenStreet, an Web-first model for customised furnishings for houses, raised $43M in a collection C funding spherical.

No unicorns have been created in 2024 and 2023, in comparison with 1 in 2022. Notably, India’s D2C area has created solely 4 unicorns to date. These are Lenskart, MyGlamm, boAT and Licious.

2024 witnessed 13 acquisitions, reflecting a 13 per cent and 58 per cent decline in comparison with these of 15 and 31 acquisitions in 2023 and 2022, respectively.

Three corporations went public in 2024 in comparison with 6 corporations in 2023. The businesses that attained IPO standing in 2024 have been Interiors & Extra, Signoria, and KIZI Apparels.

Bengaluru led the Indian D2C funding sector in 2024 with a complete funding of $253 million, adopted by Gurugram with $164 million and Mumbai with $99.8 million. Bengaluru and Gurugram accounted for 55 per cent of the entire funds raised in this area.

Hearth Ventures, Angel Record, and DSG Shopper Companions have been the general prime Traders in 2024. Thapar Imaginative and prescient, Hearth Ventures, and Z Nation Lab have been the highest seed-stage traders. Saama Capital, Unilever Ventures, and Alteria Capital have been the highest early-stage traders, whereas Suppose Investments was one of many prime late-stage traders.

Revealed on April 16, 2025