Consumption powers India’s $4 trillion economy, accounting for about 60% of its gross domestic product (GDP). But as cracks appear in the country’s growth story—India’s GDP is expected to hit a four-year low of 6.4% this fiscal—startups in this sector face challenges, though some are stepping up.
One promising segment is direct-to-consumer (D2C). Valued at $12 billion in 2022, the D2C market is projected to exceed $60 billion by 2027, growing at a compound annual rate of 40%, according to consultancy KPMG. D2C brands leverage multiple channels, offering abundant consumer choices yet complicating decision-making.
Meanwhile, millennials remain India’s largest consumer base and are more likely to share data for personalized engagement.
Here is a look at some startups making waves in the D2C space:
Beco
Founders: Aditya Ruia, Akshay Varma, and Anuj Ruia
Incorporated in 2019, Beco offers sustainable kitchen, home, and personal care products, including biodegradable and combustible items such as tissue rolls, bamboo facial tissues, dishwashing liquid, toothbrushes, and garbage bags.
In September 2022, the brand raised $3 million in an early funding round from Rukam Capital, Easymytrip co-founder Prashant Pittie, Titan Capital, Priyavrata Mafatlal, and Better Capital, with plans to open 10,000 retail stores across the country. Prior to this round, it had secured about ₹4 crore from Climate Angels Fund, Rukam Capital, Sequoia Sprout, and Zivame founder Richa Kar, among others.
Curefoods
Founder: Ankit Nagori
Founded in 2020, Curefoods operates as a cloud kitchen aggregator, managing over 150 cloud kitchens across 15 Indian cities and housing brands such as EatFit, Sharief Bhai, Aligarh House Biryani, and CakeZone.
In 2023, it secured $37 million from Binny Bansal’s Three State Ventures and Bollywood actor Nora Fatehi, who also became the brand ambassador for CakeZone. According to Tofler, the company reported FY22 revenues of ₹1.3 crore and a consolidated loss of ₹7.4 crore.
FableStreet
Founder: Ayushi Gudwani
Launched in 2016, FableStreet offers bespoke clothing tailored to female professionals using a unique three-body measurement algorithm.
The brand raised $2.95 million in its 2019 Series A round, following an undisclosed seed funding in 2017. Its main backers include Fireside Ventures, Pradeep Parameswaran of Uber India and South Asia, Dilip Khandelwal from Deutsche Bank, Suhail Sameer from RP-Sanjiv Goenka Group, and Fusiontech Ventures, among others.
Good Health Co. (GHC)
Founders: Samarth Sindhi and Saurav Panda
Founded in 2021 as a subsidiary of Raksha Health, GHC specializes in men-focused wellness and personal care products such as anti-hair thinning and hair regrowth kits, beard care, and glowing skin kits.
To date, the company has raised $20.7 million from investors including Left Lane Capital, Khosla Ventures, Quiet Capital, and Weekend Fund.
iD Fresh Food
Founders: P.C. Musthafa, Abdul Nazer, Shamsudeen T.K., Jafar and Noushad T.A.
Since its inception in 2005, iD Fresh Food has been offering ready-to-make food products such as dosa and idli batter across India and internationally.
In January 2022, the Bengaluru-based direct-to-customer startup raised $68 million in a funding round (Series D), bringing its total funding till then to $104 million.
iD Fresh Food operates in more than 45 cities worldwide, with investors including NewQuest Capital Partners, Premji Invest, Sequoia Capital, Helion Ventures, and Azim Premji.
Pluckk
Founder: Pratik Gupta
Founded in 2021, Pluckk is a direct-to-customer brand offering a wide array of fruits and vegetables across more than 15 categories.
The company caters to customers in major cities such as Mumbai, Delhi, Bengaluru, and Pune, with plans to expand further.
Products are available via its app, website, and platforms such as Amazon and Swiggy.
Early in 2023, Pluckk secured $5 million in a seed round from Exponential Ventures and received an undisclosed investment from actor Kareena Kapoor.
Power Gummies
Founder: Divij Bajaj
Power Gummies, launched in March 2018, sells flavored chewable vitamins targeting hair, nail, and skin health.
The brand, which is gluten-free and certified by Indian food safety regulator FSSAI, reported a sixfold increase in revenue to ₹54 crore in FY22, up from ₹8.8 crore in FY21.
The startup has raised $12.9 million from investors such as 9Unicorns and DSG Consumer Partners, and is planning to expand internationally and add more than 40 SKUs, or stock keeping units, in the next five years. Here, SKUs refer to the different types of flavored chewable vitamins that they plan to offer.
Slurrp Farms
Founder: Meghana Narayan and Shauravi Malik
Established in October 2016 by two mothers, Slurrp Farm addresses the challenge of finding healthy snacking options for young children.
This direct-to-customer brand offers a variety of healthy products, including ready-to-mix pancakes, dosas, noodles, and pastas.
It markets these products through its website and e-commerce platforms, serving customers in the UAE, the US, the UK, and India.
Slurrp Farms has raised $9 million from the Investment Corporation of Dubai, Fireside Ventures, and actor Anushka Sharma, aiming to achieve ₹500 crore revenues by 2025.
Sweet Karam Coffee
Founder: Anand Bharadwaj, Nalini Parthiban, Srivatsan Sundararaman and Veera Raghavan
Founded in 2015, Sweet Karam Coffee offers preservative-free South Indian sweets and snacks, including filter coffee and ready-meal mixes, catering to a nationwide audience.
Sold directly to consumers, these products are free from palm oil and can be ordered through the website and app.
The brand serves customers in over 32 countries and competes with startups like iD Fresh Food and Chaayos. It raised $1.5 million from Fireside Ventures in October 2023.
The Whole Truth
Founder: Shashank Mehta
Launched in 2019 by former Unilever marketing executive Shashank Mehta, The Whole Truth offers healthy snacks such as protein bars, peanut butter, and muesli.
Products are sold through its website, e-commerce platforms, and physical stores.
To date, the omnichannel startup has raised $17 million from investors including Peak XV Partners, Trifecta Capital, and Z47 (formerly Matrix Partners India).
The brand is expanding its presence in the competitive healthy snacking market.
Vahdam Teas
Founder: Bala Sarda
Established in 2015, Vahdam Teas is an online brand that sells tea domestically and internationally, including in the US, Canada, and Europe.
Catering to over 4 million consumers across 130 countries, it sources tea from 150 Indian farms.
In September 2021, Vahdam secured ₹74 crore in a Series D round led by IIFL AMC’s PE Fund, bringing its total raised to ₹290 crore.
Despite achieving ₹200 crore in FY22 revenue, up from ₹161 crore the previous year, it reported a loss of ₹16 crore. The brand aimed to hit a net revenue of ₹500 crore by 2024.
Wingreens Farms
Founders: Anju Srivastava and Arun Srivastava
Known for its acquisition of Raw Pressery, Wingreens Farms was founded in 2011 and offers a range of packaged food products, including sauces, spreads, and non-dairy milk.
These products are available via its website and an extensive offline distribution network across over 200 Indian cities.
In May 2022, it acquired Postcard’s parent company, Dharmya Business Ventures, in a deal worth about $2.1 million.
In December 2021, the startup had last raised $17 million in a Series C round led by Bahrain’s Investcorp.
Wooden Street
Founder: Lokendra Ranawat, Dinesh Pratap Singh, Virendra Ranawat and Vikas Baheti
Founded in 2015, the Jaipur-based D2C furniture startup sells a wide range of furniture and home decor products, including modular furniture and lighting, via its website.
It operates over 100 stores and more than 30 warehouses across India. In April 2022, it raised approximately $30 million in a Series B round led by Westbridge Capital, claiming a 100% year-on-year growth over the past three years and aiming for a turnover of ₹600 crore within two years.
Zappfresh
Founders: Deepanshu Manchanda and Shruti Gochhwal
Founded in 2015, Gurugram-based ZappFresh is a meat delivery startup backed by SIDBI Venture Capital, Dabur Family Office, and others, with a total of $7.9 million raised.
The startup expanded its market reach by acquiring Dr. Meat and Mumbai-based Bonsaro, focusing on consolidating its presence in Bengaluru and Western India.
The startup competes with other players like Licious and quick commerce players such as Swiggy Instamart and Blinikit.
Zoff
Founders: Akash and Ashish Agrawal
Established in 2018, Zoff (Zone Of Fresh Food) is a spice brand available through quick commerce platforms and retail stores.
Featured on a popular TV show, Zoff secured ₹1 crore from boat co-founder Aman Gupta.
The brand competes with established FMCG companies like Tata Sampann, MDH Masala, and Patanjali in the spice market.
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