Indian D2C Startups Funding in 2024
Indian startups that sell products or services directly to end consumers (D2C) raised a total of $757 million in 2024. This marks an 18% decline from the previous year, where they raised $930 million according to a report by data intelligence platform Tracxn. . A significant decrease is observed compared to 2022, where funding was at $1.6 billion.
Reasons for Decline
- Increased investor caution due to a global economic slowdown.
- Oversaturation of the market with similar brands.
- Fluctuating unit economics caused by high customer acquisition costs.
Top-Funded Segments in 2024
- Organic beauty brands
- Online jewellery platforms
- Beauty and personal care startups
Significant Funding Examples
Omnichannel jewellery retailer Bluestone raised $71 million in August, valued at $964 million, marking the largest funding round in this sector for the year.
Unicorns and Market Evolution
- No new unicorns in the D2C sector last year.
- Current unicorns include:
- Eyewear retail chain Lenskart
- Beauty brand MyGlamm
- Consumer devices maker Boat
- Meat and seafood home-delivery service Licious
Investor Focus and Confidence
Investors are prioritizing profitability and sustainable growth. Despite the decline in overall funding, there is a rise in early-stage investments, reflecting confidence in the potential of India's D2C sector.
Funding Stages
- Early-stage startups secured the highest funding of $355 million in 2024, a 25% increase from $284 million in 2023.
- Seed-stage funding reached $141 million, up 18% from $119 million in the previous year.
