State of Ecommerce in India Q3 2022 

State of Ecommerce in India

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State of Ecommerce in India Q3 2022

Table Of Contents

India’s Digital Economy In A Nutshell

4

India’s Startup Economy: A Snapshot

5

Indian Ecommerce Market: A Snapshot

6

Ecommerce Market Opportunity In India

9

Ecommerce Startups: The Funding Funnel

The State Of Ecommerce Unicorns & Soonicorns
The List
Revenue Analysis

34

Ecommerce Startups On The IPO Ladder
Listed IPOs
Upcoming IPOs

Indian Ecommerce Market: Key Statistics

7

10

25

37

Most Active Ecommerce Investors In Q2 2022

38

Infocus: D2C
Indian D2C Startups: Key Statistics

India’s Ecommerce Landscape: Key Segments & Startups

India’s D2C Landscape: Key Segments

11

India’s Ecommerce Ecosystem Q2 2022: Key Highlights

13

Ecommerce Startups that Bagged Biggest Funding Rounds In Q2 2022

15

Notable acquisitions in India’s Ecommerce Space In Q2 2022

16

India’s Ecommerce Ecosystem: Funding Trends

Funding Trends

MoM Funding

Financial Performance Analysis

Evolution Of D2C In India (Lifecycle graph)
Category Deep Dive In D2C
India’s D2C Startup Landscape

Average Ticket Size

61

Early Stage D2C Startups Making Waves

Sectors With Maximum Funding

70

Survey: India’s D2C Founders

90

Key Challenges For D2C Brands In India

91

Ecommerce Trends To Watch Out For

Stagewise Analysis
Top Hubs For Ecommerce Funding (Tier-1 andTier 2 & Above)
Mergers & Acquisitions

3

State Of Indian Digital Economy

1,343

1,310

1,273

1,132

1,186

1,134

1,075

1,008

932

1,000
846

Internet Users (Mn)

1,500

1.3 Bn+

61%

44%

Internet Users
By 2030

Internet Penetration
In India

Increase In Internet
Users From 2022 To
2030

$0.68

4.7 Hours

305 Mn+

Per GB Internet
Cost In India

Average Hours Spent
On Mobile Per Day
Per User

Users Doing Online
Transactions In
India

110 Bn+

$2.3 Tn+

373 Mn+

Total No. Of UPI
Transaction As On
July 2022

Total Value Of UPI
Transactions As
On July 2022

Estimated Rural
Internet Users In
2022

500

0

2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Source: Statista, NPCI, Bain & Company, App Annie

4

Indian Startup Economy: A Snapshot
57K

5K+

1,088

Startup
Launches

Funded Startups
In India

M&A Deals Recorded
Between 2014 And
H1 2022

$131 Bn

Funding Raised By
Startups Between 2014
And H1 2022

1,245

Investors Participated In
Startup Funding Between
2015 and H1 2022

18

Indian Internet Companies
Listed To Date

106

$450 Bn+

Indian Startups In The
Unicorn Club

Combined Valuation Of
Indian Startups

5

India’s Ecommerce Market: A Landscape
Venture Capital

Market Size And Growth

$400 Bn

18.9%

5,127

Estimated Market
Opportunity By 2030

Estimated CAGR
(2022-2030)

Number Of Active
Startups In India

$30 Bn

Funding Raised
Between 2014 And
H1 2022

682

Number Of Funded
Startups In India

170

Number Of M&As
During H1 2022

Unicorns & Soonicorns

23

Number Of
Unicorns In India

16

Number Of
Soonicorns In India

Marketplace

Ecommerce Subsector
With The Highest
Number Of Unicorns

6

Indian Ecommerce Market: Key Statistics
932 Mn+

Number Of Internet Users,
2022

128 Mn+

Number Of Online Shoppers,
FY2022

61%

17 GB

Smartphone Penetration,
2022

Average Monthly Mobile Data
Consumption Per User, 2021

9th

World Rank In Cross Border Ecommerce
Growth, 2020

100%

FDI In B2B Ecommerce & Marketplace
Model Of Ecommerce Under The
Automatic Route

23%

Increase In The GMV (Gross Merchandise
Value) Of Generated Sales During Festive
Season 2021 (Worth $9.2 Bn) Compared
To 2020

7

India’s Ecommerce Market To Surpass $400 Bn By 2030
The country’s ecommerce market is estimated to grow at a CAGR of 19% during 2022-2030

Ecommerce Market Size (In $ Bn)

400.0

300.0

200.0

100.0

0.0
Source: Deloitte, Inc42

2022F

2023F

2024F

2025F

2026F

2027F

2028F

2029F

2030F

8

Online Shoppers Are Projected To Reach 350 Mn By 2025
Online shoppers will be growing at a CAGR of 28.5% during FY 2020- FY 2025

Number Of Online Shoppers (In Mn)

400

300

200

100

0

FY2020

Source: Bain and Flipkart Report 2020

FY2021

FY2022

FY2023

FY2024

FY2025

9

Ecommerce Startups: The Funding Pyramid
77

Late Stage Ecommerce
Startups In India

197

Growth Stage
Ecommerce Startups
In India

433

Seed Stage Ecommerce Startups
In India

682

Funded Ecommerce Startups In India

5,127

Active Ecommerce Startups In India

Note: This is on the basis of number of startups funded during 2014- Q1 2022
Source: Inc42

10

$17.1 Bn

Horizontal

Total Funding Amount

Vertical

D2C

Total Funding Amount

Total Funded Startups

$939.8 Mn

Content Commerce

Total Funded Startups

Classifieds

$2.7 Bn

Automotive

Total Funded Startups

Electronic Gadgets

50+

Note: Funding is for the period 2014 to H1 2022

Total Funded Startups

Consumer Electronics

Home Decor
Others

Logistics

$810.7 Mn

Marketing

Total Funded Startups

SaaS

50+

25+

Total Funding Amount

Fashion

Total Funding Amount

Enabler

Total Funding Amount

Live Commerce

FMCG

$4.2 Bn
180+

200+

B2B Ecommerce

Recommerce

Social Commerce

Marketplace

India’s Ecommerce Landscape: Key Segments

Total Funding Amount

$4.2 Bn

Total Funded Startups

75+

Payment Gateway
Roll Ups

Industrial Goods
FMCG
Marketplace

11

India’s Ecommerce Startup Landscape
D2C

Social
Commerce

Marketplace

Ecommerce
Enabler

Recommerce

B2B
Ecommerce

12

Ecommerce Funding Trends in Q2 2022: A Snapshot
$1.2 Bn+

73

Total Funding Raised

Number Of Unique Funded Startups

38.3%

79

YoY Decline In Total Funding

$19 Mn
Average Ticket Size For Ecommerce
Deals

272%
YoY Surge In Seed Stage Funding
Note: The error in top startup hub was updated from Bengaluru to Delhi NCR, on 7 September 2022.

Total Deal Count

Delhi NCR
Top Startup Hub

Most Active Ecommerce Investors

13

Ecommerce Startups That Bagged Biggest Funding Rounds In Q2 2022
Company Name

Sub-Sector

Funding Stage

Funding Amount

Notable Participating Investors

D2C

Late Stage

$108 Mn

Venturi Partners, Trifecta Capital, IIFL Asset Management, Elevation Capital, Orios Ventures

D2C

Late Stage

$100 Mn

Alpha Wave Global

Ecommerce Enabler

Seed Stage

$100 Mn

KKR, SoftBank, Alpha Wave Global, Temasek

B2B Ecommerce

Growth Stage

$100 Mn

Prosus Ventures, WestBridge Capital, Accel, Elevation Capital, DisruptAD

Recommerce

Late Stage

$90 Mn

NewQuest, Prosus Ventures, Bessemer, Blume Ventures, Olympus Capital

B2B Ecommerce

Late Stage

$65 Mn

Lighthouse India, Creaegis, Health Quad, Ackermans & Van Haaren, British International Investment

D2C

Late Stage

$50 Mn

L Catterton, A91 Partners, Elevation Capital, India Quotient

14

Company Name

Funding Stage

Funding Amount

Notable Participating Investors

B2B Ecommerce

Undisclosed

$50 Mn

Liquidity Group’s MARS Unicorn Fund

Ecommerce Enabler

Growth Stage

$50 Mn

Winter Capital, 9Unicorns, Venture Catalysts, Vivriti Capital, Oxyzo

D2C

Undisclosed

$48 Mn

GIC

D2C

Late Stage

$45 Mn

Alpha Wave Global, Tiger Global Management, Elevation Capital, Think Investments

B2B Ecommerce

Growth Stage

$40 Mn

Tiger Global Management, Alpha Wave Global, Sparrow Capital, Stride Ventures

D2C

Late Stage

$33 Mn

Paramak Ventures, Premji Invest, Blume Ventures, Kedaara

D2C

Growth Stage

$30 Mn

WestBridge Capital

B2B Ecommerce

Growth Stage

$28 Mn

Tiger Global Management, Info Edge

Sub-Sector

15

Notable Acquisitions In India’s Ecommerce Space In Q2 2022
Company Name

Source: Inc42
Note: N/A stands for not available

Company Stage

Acquired By

Notable Investors

Seed Stage

Government Of Karnataka, Department Of Science & Technology, Qualcomm

Bootstrapped

N/A

Growth Stage

Accel, Vertex Ventures, CDH Investments, Korea Investment Partners

Seed Stage

Mumbai Angels

Bootstrapped

N/A

Bootstrapped

N/A

16

Ecommerce Funding Dropped Drastically In 2022 After A 12X Jump In 2021
On a YoY level, ecommerce startups are likely to see decline in total funding in 2022 compared to 2021
12.0

300

8.0

200

6.0
4.0

100

2.0
0.0

2014

2015

2016

2017

2018

Funding Amount (In $ Bn)
Note: The funding data in 2022 is only considered till 30th June, 2022
Source: Inc42

2019
Deal Count

2020

2021

H1 2022

0

Deal Count

Funding Amount (In $ Bn)

10.0

17

Ecommerce Funding Continues To Decline On A QoQ Basis
6.0

125

4.0
75

50
2.0
25

0.0

Q1-2021

Q2-2021

Q3-2021
Funding Amount (In $ Bn)

Note: The funding data in 2022 is only considered till 30th June, 2022
Source: Inc42

Q4-2021
Deal Count

Q1-2022

Q2-2022

0

Deal Count

Funding Amount (In $ Bn)

100

18

Average Ticket Size For Ecommerce Funding Drops To $19 Mn In Q2 2022
From its highest value i.e., $132.9 Mn in Q4 2021, the average ticket size decline by 86% in Q2 2022

Average Ticket Size (In $ Mn)

150.0

100.0

50.0

Source: Inc42

2

Q2

-2

02

2

Q1

-2

02

1

Q4

-2

02

1

Q3

-2

02

1

Q2

-2

02

1

Q1

-2

02

0

Q4

-2

02

0

Q3

-2

02

0

Q2

-2

02

0

Q1

-2

02

9

Q4

-2

01

9

Q3

-2

01

9

Q2

-2

01

9

Q1

-2

01

8

Q4

-2

01

8

Q3

-2

01

8
01
-2

Q2

Q1

-2

01

8

0.0

19

Ecommerce Funding Showed 63% Jump In Q2 2022 On A YoY Basis
D2C turned out to be the most-funded ecommerce sub-sector in Q2 2022

Recommerce
10.0%

Marketplace
3.1%

D2C

51.0%

Others

Ecommerce Enabler

1.7%

10.5%

$0.7 Bn
Ecommerce
Funding In Q2
2021
D2C
26.0%

Source: Inc42
Note: Others in Q2 2022 includes funding raised by social commerce and marketplace startups

B2B Ecommerce

50.4%

Recommerce
7.7%

$1.2 Bn
Ecommerce
Funding In Q2
2022

Ecommerce Enabler
13.8%

B2B Ecommerce

25.8%

20

Ecommerce Funding Deals Showed 84% Jump In Q2 2022 On A YoY Basis
D2C bagged maximum funding deals among ecommerce sub-sectors in Q2 2022

Others
7.0%

Others

Marketplace

5.1%

9.3%

Ecommerce Enabler
Ecommerce Enabler
11.6%

6.3%

43
Funding
Deals
In Q2 2021

Marketplace
D2C

10.1%

58.1%

D2C

65.8%

B2B Ecommerce
14.0%

B2B Ecommerce
12.7%

Source: Inc42
Note: Others in Q2 2022 includes funding raised by social commerce and marketplace startups

79
Funding
Deals
In Q2 2022

21

Ecommerce Startups Raised $3.1 Bn In The First Six Months Of 2022
Q2 2022 witnessed a decline of 38.3% in the ecommerce funding as compared to the previous quarter
1.0

Funding Amount (In $ Bn)

0.8

0.5

0.3

0.0
Source: Inc42

January

February

March

April

May

June

22

Funding At Bridge Stage Showed Highest YoY Surge For Ecommerce Startups
1250.0

Funding Amount (In $ Mn)

1000.0

+1574% (Bridge Funding)
+272% (Seed Stage)

750.0

+119% (Growth Stage)
500.0

+25% (Late Stage)

250.0

0.0

Q2 2021
Bridge Funding

Source: Inc42

Q2 2022
Seed Stage

Growth Stage

Late Stage

23

Seed Stage Saw The Highest YoY Surge In Funding Deals For Ecommerce
Startups In India
Q2 2022 witnessed a decline of 38.3% in the ecommerce funding as compared to the previous quarter
80

+129% (Seed Stage)
+100% (Bridge Funding)

Deal Count

60

+56% (Late Stage)
+46% (Growth Stage)

40

20

0

Q2 2019
Bridge Funding

Source: Inc42

Q2 2020
Seed Stage

Q2 2021
Growth Stage

Q2 2022
Late Stage

24

Top 5 Startup Hubs In Ecommerce Space (Q2 2022)

Top 5 Startup Hubs In Ecommerce Space (Q2 2022)

Delhi NCR Remains Top Destination For Ecommerce Startup Funding
Delhi NCR

Mumbai

Bengaluru

Thane

Jaipur
0.00

0.20

0.40

0.60

Funding Amount (In $ Bn)

0.80

Delhi NCR

Bengaluru

Mumbai

Jaipur

Thane
0

10

20
Deal Count

30

25

16 Soonicorns

$86 Bn Combined Valuation

$5.3 Bn Combined Valuation

$28.6 Bn Total Capital Raised

$2.1 Bn Total Capital Raised

Top Subsectors

23 Unicorns

10 Marketplace
04 B2B Ecommerce
03 D2C
07 Mumbai

07 Bengaluru
04 Mumbai

TopHubs

11 Delhi NCR
Top Hubs

Top Subsectors

The State Of Ecommerce Unicorns & Soonicorns In India

05 Bengaluru
04 Delhi NCR

08 D2C
04 B2B Ecommerce
03 Marketplace

26

Ecommerce Startup Landscape: Unicorns, Soonicorns & Growth Stage
Companies
Unicorns (Valued $1 Bn+)

Soonicorns (Valued $200 Mn+)

Growth Stage (Series A & B)

27

Inside India’s Ecommerce Unicorns
Company Name

Years To
Unicorn

Valuation
(In $ Bn)

Funding
(In $ Bn)

Notable Investors

Segment

Headquarters

Became
Unicorn In

Recommerce

Delhi NCR

2020

5

1.8

1.3

DST Global, Falcon Edge Capital, Sequoia Capital India, SoftBank

Social Commerce

Bengaluru

2022

4

1.6

0.6

Matrix Partners, Omidyar Network, InnoVen Capital, DST Global

Marketplace

Delhi NCR

2021

7

1.2

0.3

BEENEXT, Digital Garage, Lightbox Ventures, Toyota Tsusho Corporation

Marketplace

Pune

2020

10

2.0

0.7

IDG Capital, Elevation Capital,Chiratae Ventures, SoftBank, PremjiInvest

Marketplace

Bengaluru

2012

5

37.6

12.6

Accel, Axis Bank, DST Global, eBay, Flipkart, GIC, Naspers, SoftBank

Ecommerce Enabler

Delhi NCR

2021

0

1.1

0.3

Chiratae Ventures, Chrys Capital, FirstCry, Lightspeed India Partners

Marketplace

Mumbai

2021

6

1.2

0.3

Accel, Amazon, Ascent Capital, Bessemer Venture Partners

B2B Ecommerce

Mumbai

2021

5

2.5

0.4

Accel,InnoVen Capital, Nexus Venture Partners, Tiger Global Management

28

Company Name

Years To
Unicorn

Valuation
(In $ Bn)

Funding
(In $ Bn)

Notable Investors

Segment

Headquarters

Became
Unicorn In

D2C

Delhi NCR

2019

8

2.5

0.8

Chiratae Ventures,PremjiInvest, SoftBank, Temasek Holdings, TPG

D2C

Bengaluru

2021

9

1.0

0.5

3One4 Capital, Bertelsmann, IIFL Asset Management,Temasek Holdings

Marketplace

Bengaluru

2022

8

1.2

0.4

Kohlberg Kravis Roberts, Trifecta Capital, Tahoe Investment Group

D2C

Delhi NCR

2021

5

1.1

0.1

Fireside Ventures, Sequoia Capital India, Shilpa Setty, Sofina

Social Commerce

Bengaluru

2021

6

4.9

1.1

B Capital Group, DST Partners, Facebook, Investopad, Prosus & Naspers

Ecommerce Enabler

Bengaluru

2021

0

1.0

0.2

Accel, Alpha Wave Incubation, Alteria Capital, Falcon Edge Capital

B2B Ecommerce

Delhi NCR

2021

6

1.0

0.5

Accel,Bessemer Venture Partners, Tiger Global Management

Marketplace

Mumbai

2020

8

14.0

0.1

Fidelity Management and Research Company, Lighthouse Funds

29

Company Name

Years To
Unicorn

Valuation
(In $ Bn)

Funding
(In $ Bn)

Notable Investors

Segment

Headquarters

Became
Unicorn In

B2B Ecommerce

Delhi NCR

2021

6

3.0

0.9

FalconEdge Capital, InnoVen Capital, Kotak Mahindra Bank, Matrix Partners

Marketplace

Delhi NCR

2018

2

2.0

3.0

SoftBank, Alibaba Group, eBay

Marketplace

Mumbai

2022

11

1.1

0.3

Goldman Sachs, Sequoia Capital, PremjiInvest, IvyCap Ventures

Marketplace

Delhi NCR

2016

5

0.1

0.3

Helion Venture Partners, Nexus Venture Partners, GIC,InnoVen Capital

Marketplace

Delhi NCR

2014

4

N/A

1.8

SoftBank, Alibaba Group, Kalaari Capital, BlackRock, Intel Capital

Recommerce

Delhi NCR

2021

6

1.0

0.5

Abu Dhabi Growth Fund, Accel, Blume Ventures, Elevation Capital

B2B Ecommerce

Bengaluru

2018

2

3.1

1.5

BlackSoil Capital, DST Global, InnoVen Capital,Lightspeed Venture Partners

30

Inside India’s Ecommerce Soonicorns
Company Name

Segment

Headquarters

Founded In

Funding Amount (In $ Mn)

Notable Investors

B2B Ecommerce

Delhi NCR

1996

41

Elevation Capital, Intel Capital, Amadeus Capital Partners

Marketplace

Mumbai

2009

307

Canaan Partners, Epiphany Ventures, Canaan Partners, Tiger Global Management

D2C

Bengaluru

2011

100

Accel, Kalaari Capital, IvyCap Ventures, Dragoneer Investment Group

Marketplace

Mumbai

2011

53

Rise Capital, LionRock Capital, Velos Partners, LionRock Capital, Jabbar Internet Group

Marketplace

Mumbai

2011

285

Bertelsmann, Goldman Sachs, InnoVen Capital, Norwest Venture Partners, Pidlite Industries

D2C

Bengaluru

2012

229

InnoVen Capital, Trifecta Capital, Lightbox, BlackSoil

D2C

Mumbai

2012

36

Elevation Capital, Stride Ventures, India Quotient, Anicut Capital, RB Investments

31

Company Name

Segment

Headquarters

Founded In

Funding Amount (In $ Mn)

Notable Investors

D2C

Bengaluru

2014

61

Sequoia Capital, SIG, Verlinvest

B2B Ecommerce

Bengaluru

2015

151

Nexus Venture Partners, Kalaari Capital, Alteria Capital, Invus,Heron Rock Fund

B2B Ecommerce

Mumbai

2015

240

Accel, Addventures, B Capital Group, CDC Group, Chiratae Ventures, Tiger Global Management

B2B Ecommerce

Mumbai

2015

177

Lighthouse Funds, CDC Group, Toppan Printing

D2C

Delhi NCR

2016

116

Qualcomm ventures, Warburg Pincus, InnoVen Capital,Fireside Ventures,Navi Technologies

D2C

Mumbai

2016

38

Paragon Partners India, RPSG Capital Ventures, Sharrp Ventures

Social Commerce

Delhi NCR

2019

112

Elevation Capital, Accel, WaterBridge Ventures, General Catalyst Partners, Jungle Ventures

D2C

Bengaluru

2014

173

GIC, Chrys Capital

D2C

Delhi NCR

2012

86

Tiger Global Management, Innoven Capital, Elevation Capital, Think Investments

32

Revenue Analysis: Ecommerce Unicorns In India
Company Name

Sales FY20 (In $ Mn)

Sales FY21 (In $ Mn)

YoY Growth

402

364

-9%

8

32

312%

23

17

-27%

107

175

63%

4,556

5,726

26%

6.0

5.9

2%

47

142

205%

119

117

-2%

18

56

219%

53

43

-19%

15

61

320%

41

106

158%

50

104

107%

2

3

38%

93

184

97%

61

25

-59%

12

17

39%

12

15

29%

109

57

-47%

2

3

121%

$7.4 Bn Aggregate revenue clocked by ecommerce
unicorns in FY21 compared to $5.8 Bn in FY20.

$7.9 Bn Aggregate expenditure clocked by ecommerce
unicorns in FY21 compared to $6.6 Bn the previous year.

26.1% YoY surge in aggregate revenue as opposed to
20.7% in total expenditure.

Source: Inc42, MCA
Note: The analysis presented in this section is based on the sample set of 20 ecommerce unicorns. GlobalBees, Mensa Brands, and Udaan are not included.,
Note: Sales is derived from the revenue from operations

33

Profitability Analysis: Ecommerce Unicorns In India
Company Name

EBITDA FY20 (In $ Mn)

EBITDA FY21 (In $ Mn)

YoY Growth

-34.4

-19.9

42.1%

-3.9

-8.5

119.7%

-10.5

-7.5

28.8%

-16.8

30.7

282.6%

-411.1

-314.6

23.5%

-9.3

-5.3

43.2%

1.8

7.8

332.2%

5.6

11.5

105.6%

-17.5

-25.1

43.6%

-42.8

-31.4

26.7%

-0.7

4.0

642.3%

-39.8

-65.3

64.3%

-9.9

-10.1

1.8%

12.0

23.6

95.9%

4.2

6.1

43.7%

-53.6

-55.6

3.6%

-2.6

-5.7

120.1%

-5.8

-7.0

21.3%

-33.8

-10.4

69.3%

-9.1

-12.2

33.9%

30% Ecommerce unicorns in India were EBIDTA
positive in FY21.

$6.4 Mn Median monthly burn rate of Indian ecommerce
unicorns in FY21 as compared to $3.1 Mn in FY20.

-$7.0 Mn Median EBITDA of Indian unicorns in FY21, a 22%
increase from negative $9.1 Mn in FY20 indicating that
profitability still remains a question among ecommerce
unicorns although the aggregate value of losses has reduced

Source:Inc42
Note: The analysis presented in this section is based on the sample set of 20 ecommerce unicorns. GlobalBees, Mensa Brands, and Udaan are not included.

34

Indian Ecommerce Startups: Listed Companies
Company Name

Last Private Valuation

Valuation At IPO Price

Current Market Cap

$525 Mn

$1 Bn

$376 Mn

$1.2 Bn

$12 Bn

$8 Bn

N/A

$0.5 Bn

$2 Bn

Note: N/A stands for Not Available
Note: The market capitalisation of CarTrade, Nykaa, and IndiaMart indicates data recorded on 30th August, 2022
Source: Inc42

35

Indian Ecommerce Startups: Expected IPOs
Company Name

Note: N/A stands for Not Available
Source: Inc42

Headquarters

Last Private Equity Valuation

Targeted IPO Valuation

Bengaluru

$37.6 Bn

$60 Bn

Delhi-NCR

N/A

$1.5 Bn

Delhi-NCR

$1.4 Bn

$2 Bn

Pune

$2.7- $3 Bn

$6-7 Bn

Mumbai

N/A

N/A

Delhi-NCR

$1 Bn

$2 Bn

36

IndiaMART’s Share Price Hit The Peak Since Its IPO
400.0%
353.1%

Company Name

IPO Price
(In INR)

Last Traded Price
(LTP) (In INR)

% Change In Share
Price Since IPO

1,618

640.7

-60.4%

1,125

1,346.4

19.7%

973

4,408.9

353.1%

% Change In Share Price Since IPO

300.0%

200.0%

100.0%

19.7%

0.0%
-60.4%
-100.0%

CarTrade

Nykaa

Source: Inc42 Plus, NSE
Note: Last traded price is the stock closing price on August 29, 2022.

IndiaMART

37

Most Active Indian Ecommerce Investors In Q2 2022
Investor’s Name

Deal Count

Notable Startups Funded

5
5
3
3
3
3
3
3
2
2
Source: Inc42
Note: Deal count has been collated from announcement made by the startups, funds

38

In Focus
D2C (Direct To Consumer)

39

Indian D2C Startups: Key Statistics

D2C Market Opportunity By 2030

Funded D2C Brands In India

No. Of Soonicorns

$300 Bn

346

08

Digital First Brands In India

No. Of Unicorns

Total Funding

50K

03

$4.4 Bn

40

India’s D2C Landscape: Key Segments
FMCG Decor
Home

FMCG

Total Funding Amount

$2.1 Bn

Packaged Food
Soft Drinks
Hot Drinks

Total Funding Amount

$2.1 Bn
$563
Mn

250+
192+

Tissue & Hygiene
Consumer Health

Soft Drinks
Mattress
Hot Drinks
Health & Wellness

Health & Wellness

Total Funded Startups

Packaged Food
Furniture

Total Funded Startups

250+
19+

Tissue & Hygiene
Consumer Health
Beauty & Personal Care

Beauty & Personal Care

Consumer Electronics

Fashion

Total Funding Amount

$1.5 Bn

Total Funded Startups

103+

Note: Funding is for the period 2014-H1 2022

Apparel & Footwear
Eyewear
Personal Accessories

Total Funding Amount

$139 Mn

Total Funded Startups

6+

Home Appliances
Electronics

41

Evolution Of D2C In India

Emergence Of
Pure-Play D2C
(Only Own Online
Website)

Omnichannel D2C
(Presence On Own
Website &
Marketplaces)

Omnichannel
Ecommerce
(Presence On Own
Website,
Marketplace &
Offline Retail Stores)

42

Indian D2C Total Addressable Market Opportunity Is Poised To Cross $302 Bn
By 2030
The country’s D2C market is estimated to grow at a CAGR of 24% during 2021-2030

D2C Addressable Market (In $ Bn)

400.0

300.0

200.0

100.0

0.0

2021

Note: F stands for Forecasted value
Source: Inc42

2022F

2023F

2024F

2025F

2026F

2027F

2028F

2029F

2030F

43

FMCG
$2.1 Bn

192

~400%

276

Total Funding
Raised

Number Of Unique
Funded Startups

YoY Surge In Total
Funding In Q2 2022

Total Deal
Count

The Online FMCG Market Is Poised To Cross $21 Bn By 2025

Addressable Market In $ Bn

25.0

Key Trends
Subscription & Personalisation models

20.0

Natural & Toxic-Free Product Offering

15.0

Tech-enabled buying experience

10.0

Transparency in product offering

5.0

Attractive & Wide Product Portfolio
0.0

2015

2016

2017

2018

2019

2020 2021F 2022F 2023F 2024F 2025F

44

FMCG D2C Brands Landscape
Personal Care
Beauty And
Wellness

Cosmetics

TM

45

Meat
Food And
Beverage

Dairy Products
Health Supplements
Snacks

Beverages

Meals

46

Fashion
$1.5 Bn

103

70%

180

Total Funding
Raised

Number Of Unique
Funded Startups

YoY Surge In Total
Funding In Q2 2022

Total Deal
Count

Addressable Market In $ Bn

The Online Fashion Market Is Poised To Cross $43 Bn By 2025

Key Trends

50.0

Celebrity inspired or endorsed D2C brands

40.0

Customized Offering

30.0

Tech enabled and advanced products

20.0

Quirky & Fashionable Designs

10.0
0.0

2015

2016

2017

2018

2019

2020 2021F 2022F 2023F 2024F 2025F

47

Fashion D2C Brands Landscape
Western Wear

Ethnic Wear
Eyewear
Activewear
Innerwear
Footwear
Accessories

48

Home Decor
$563 Mn

19

195%

44

Total Funding
Raised

Number Of Unique
Funded Startups

YoY Surge In Total
Funding In Q2 2022

Total Deal
Count

The Online Home Decor Market Is Poised To Cross $5.4 Bn By 2025

Market Potential In $ Bn

6.0

Key Trends
Focus On Sustainability
Wider Product Offerings

4.0

Increased Demand Due To WFH Flexibility
2.0

0.0

More Focus On Health Based & Ergonomic Preferences

2015

2016

2017

2018

2019

2020 2021F 2022F 2023F 2024F 2025F

49

Home Decor D2C Brands Landscape
Home Decor

50

Consumer Electronics
$139 Mn

06

12

Total Funding
Raised

Number Of Unique
Funded Startups

Total Deal Count

Addressable Market In $ Bn

The Online Consumer Electronics Is Poised To Cross $31 Bn By 2025

Key Trends

50.0

Increased Affordability Of Devices

40.0

Appealing Aesthetics & Design

30.0

Increased Health Awareness

20.0

Varied Used Cases

10.0
0.0

Rising Demand In Tier 2 & More Markets
2015

2016

2017

2018

2019

2020

2021F 2022F 2023F 2024F 2025F

51

Consumer Electronics D2C Brands Landscape
Consumer Electronics

52

D2C Startups Continue To Bag Investor Interest, $1.3 Bn Raised In H1 2022
200

150
1.0
100
0.5
50

0.0

2014

2015

2016

2017

2018

Funding Amount (In $ Bn)
Note: The funding data in 2022 is only considered till 30th June, 2022
Source: Inc42

2019
Deal Count

2020

2021

H1 2022

0

Deal Count

Funding Amount (In $ Bn)

1.5

53

0.8

80

0.6

60

0.4

40

0.2

20

0.0

0

Q1-2021

Q2-2021

Q3-2021
Funding Amount (In $ Bn)

Source: Inc42

Q4-2021
Deal Count

Q1-2022

Q2-2022

Deal Count

Funding Amount (In $ Bn)

Funding For D2C Brands Recorded 10% Decline In Q2 2022 Compared To
Q1 2022

54

$15 Mn Average Ticket Size Of D2C Funding In Q2 2022
The average ticket size for D2C startups grew by 12.3% in Q2 2022 as compared to previous quarter

Average Ticket Size (In $ Mn)

20.0

15.0

10.0

5.0

Source: Inc42

2
02

Q2

-2

2

Q1

-2

02

1

Q4

-2

02

1

Q3

-2

02

1

Q2

-2

02

1

Q1

-2

02

0

Q4

-2

02

0

Q3

-2

02

0

Q2

-2

02

0

Q1

-2

02

9

Q4

-2

01

9

Q3

-2

01

9

Q2

-2

01

9

Q1

-2

01

8

Q4

-2

01

8

Q3

-2

01

8
01
-2

Q2

Q1

-2

01

8

0.0

55

Average Ticket Size For D2C Brands Grew By 12.3% In Q2 2022 Compared
To Q1 2022

Average Ticket Size (In $ Mn)

20.0

15.0

10.0

5.0

0.0
Q1-2021
Source: Inc42

Q2-2021

Q3-2021

Q4-2021

Q1-2022

Q2-2022

56

Around 195% Growth In D2C Funding In Q2 2022 Compared To Q2 2021
FMCG turned out to be the most-funded D2C sub-sector in Q2 2022

FMCG

Others

59.7%

3.3%

Others

Consumer Electronics

2.7%

4.8%

FMCG

$202 Mn
D2C Funding
In Q2 2021

Home Decor
5.0%

Fashion
56.6%

35.3%

Fashion
32.5%

Source: Inc42
Note: Others includes funding raised by startups in home and lifestyle, kitchenware, handicrafts, plants, bakery and more categories.

$597 Mn
D2C Funding
In Q2 2022

57

Growth Stage Saw The Highest YoY Surge For D2C Startups In India

Funding Amount (In $ Mn)

600.0

400.0

+219% (Growth Stage)
+204% (Late Stage)
+92% (Bridge Funding)

200.0

0.0

+119% (Seed Stage)

Q2 2021
Bridge Funding

Source: Inc42

Seed Stage

Q2 2022
Growth Stage

Late Stage

58

Only Bridge Stage D2C Startups Saw Positive Growth In Q2 2022 Compared
To Q1 2022
800.0

Funding Amount (In $ Mn)

+101% (Bridge Funding)
-10% (Late Stage)

600.0

-20% (Growth Stage)
-27% (Seed Stage)

400.0

200.0

0.0

Q4-2021
Bridge Funding

Source: Inc42

Q1-2022
Seed Stage

Q2-2022
Growth Stage

Late Stage

59

Late Stage Saw The Highest YoY Surge In Deal Count For D2C Startups
In India
60
+150% (Late Stage)
+46% (Seed Stage)
+40% (Growth Stage)

Deal Count

40

20

0

Q2 2019

Q2 2020
Bridge Funding

Source: Inc42

Q2 2021
Seed Stage

Growth Stage

Q2 2022
Late Stage

60

D2C Brands Witnessed Drastic Decline In Seed Funding In Q2 2022
80
-7% (Growth Stage)
60

-20% (Bridge Funding)

Deal Count

-42% (Seed Stage)
40

20

0

Q1-2021

Q2-2021
Bridge Funding

Q3-2021
Seed Stage

Q4-2021
Growth Stage

Q1-2022
Late Stage

Q2-2022

61

Early Stage D2C Startups Making Waves

62

30 Early Stage Indian D2C Startups Making Waves
Allegra

Alpino Health Foods

It is a D2C women apparel brand

It is a D2C peanut butter brand

SUBSECTOR

TOTAL FUNDING

FOUNDING YEAR

HQ

SUBSECTOR

TOTAL FUNDING

FOUNDING YEAR

HQ

Fashion

N/A

2021

Delhi NCR

FMCG

$0.65 Mn

2016

Surat

NOTABLE INVESTORS

NOTABLE INVESTORS

Bootstrapped

RBF

Avni

BabyAmore

It is a D2C feminine hygiene brand

It is a Babycare marketplace

SUBSECTOR

TOTAL FUNDING

FOUNDING YEAR

HQ

SUBSECTOR

TOTAL FUNDING

FOUNDING YEAR

HQ

FMCG

$0.6 Mn

2021

Mumbai

Fashion

Undisclosed

2019

Chennai

NOTABLE INVESTORS

NOTABLE INVESTORS

Dr C Srirani, Nimish Parekh, WeFounders Circle

Get Vantage, Velocity, Klub

63

Bartisans

Bombay Island Coffee

It is a D2C cocktail mixers brand

It is a D2C artisnal coffee brand

SUBSECTOR

TOTAL FUNDING

FOUNDING YEAR

HQ

SUBSECTOR

TOTAL FUNDING

FOUNDING YEAR

HQ

FMCG

Undisclosed

2020

Mumbai

FMCG

Undisclosed

2018

Mumbai

FOUNDING YEAR

HQ

2018

Delhi NCR

NOTABLE INVESTORS

NOTABLE INVESTORS

RPSG Capital Ventures, Iluminar Media Private Limited

Bootstrapped

CURRYiT

Deciwood

It is a D2C ready to cook curry pastes

It is a D2C bluetooth speaker brand

SUBSECTOR

TOTAL FUNDING

FOUNDING YEAR

HQ

SUBSECTOR

FMCG

$0.14 Mn

2020

Delhi NCR

Consumer Electronics $0.25 Mn

TOTAL FUNDING

NOTABLE INVESTORS

NOTABLE INVESTORS

RPSG Capital Ventures, IIMU Incubation Centre, Others

Let’s Venture, Ankit Kedia,Sunil Kamath, Rohit Raj, Arun Gupta, Neeraj Saxena

64

Fitspire

Flexnest

It is a D2C wellness startup

It is a D2C home workout and connected wear brand

SUBSECTOR

TOTAL FUNDING

FOUNDING YEAR

HQ

SUBSECTOR

FMCG

$1 Mn

2020

Delhi NCR

Consumer Electronics N/A

TOTAL FUNDING

NOTABLE INVESTORS

NOTABLE INVESTORS

Sukhbir Singh, Startup Buddy, Sheel Oils, Sesa Oils

Bootstrapped

Floryo

FOUNDING YEAR

HQ

2021

Delhi NCR

Lauriko

It is a D2C made-to-order staples brand

It is a D2C health & wellness brand

SUBSECTOR

TOTAL FUNDING

FOUNDING YEAR

HQ

SUBSECTOR

TOTAL FUNDING

FOUNDING YEAR

HQ

FMCG

$2 Mn

2022

Bengaluru

FMCG

$0.4 Mn

2021

Hyderabad

NOTABLE INVESTORS

NOTABLE INVESTORS

3one4 Capital, Vivek Gupta, Abhay Hanjura, Kunal Shah, Aman Gupta, Varun Alagh, Rishi Vasudev,
Vijay Arisetti, Sameer Mehta, Alteria Capital

Undisclosed

65

Lemme Be

Paradyes

It is a D2C menstrual hygiene brand

It is a D2C semi permanent hair color brand

SUBSECTOR

TOTAL FUNDING

FOUNDING YEAR

HQ

SUBSECTOR

TOTAL FUNDING

FOUNDING YEAR

HQ

FMCG

$2.5 Mn

2020

Hyderabad

FMCG

N/A

2020

Ahmedabad

NOTABLE INVESTORS

NOTABLE INVESTORS

Wami Capital, Multiply Ventures

Bootstrapped

Pawrulz

Plow Foods

It is a D2C petcare brand

It is a D2C packaged protein foods

SUBSECTOR

TOTAL FUNDING

FOUNDING YEAR

HQ

SUBSECTOR

TOTAL FUNDING

FOUNDING YEAR

HQ

FMCG

N/A

2019

Delhi NCR

FMCG

Undisclosed

2021

Delhi NCR

NOTABLE INVESTORS

NOTABLE INVESTORS

Bootstrapped

Undisclosed

66

Qua

Raskik

It is a D2C women’s westernwear brand

It is a D2C ready to drink beverages

SUBSECTOR

TOTAL FUNDING

FOUNDING YEAR

HQ

SUBSECTOR

TOTAL FUNDING

FOUNDING YEAR

HQ

Fashion

N/A

2019

Delhi NCR

FMCG

Undisclosed

2019

Delhi NCR

NOTABLE INVESTORS

NOTABLE INVESTORS

Bootstrapped

Fluid VC

Snitch

Something’s Brewing

It is a D2C men’s apparel brand

It is a D2C artisnal coffee marketplace

SUBSECTOR

TOTAL FUNDING

FOUNDING YEAR

HQ

SUBSECTOR

TOTAL FUNDING

FOUNDING YEAR

HQ

Fashion

Undisclosed

2018

Bengaluru

FMCG

N/A

2020

Bengaluru

NOTABLE INVESTORS

NOTABLE INVESTORS

Undisclosed

Bootstrapped

67

Spice Story

SVISH On The Go

It is a D2C ready-to-eat spices, condiments, sauces and chutneys brand

It is a D2C personal hygiene brand

SUBSECTOR

TOTAL FUNDING

FOUNDING YEAR

HQ

SUBSECTOR

TOTAL FUNDING

FOUNDING YEAR

HQ

FMCG

$0.5 Mn

2019

Mumbai

FMCG

$1.7 Mn

2020

Delhi NCR

NOTABLE INVESTORS

NOTABLE INVESTORS

VCATS, Agility Partners, Lets Venture, VLA, Angels

LC Nueva AIF, Wami Capital

The Health Factory

The June Shop

It is a D2C protein bread startup

It is a D2C home décor brand

SUBSECTOR

TOTAL FUNDING

FOUNDING YEAR

HQ

SUBSECTOR

TOTAL FUNDING

FOUNDING YEAR

HQ

FMCG

$0.25 Mn

2021

Mumbai

Home Decor

Undisclosed

2019

Kolkata

NOTABLE INVESTORS

NOTABLE INVESTORS

Venture Garage, Vikas Nahar, Happilo

Vijay Subramaniam, Pratik Nahata, Sreekumar Krishnan

68

The Minimal Co

Toqn

It is a D2C mulberry silk-based skin and haicare brand

It is a D2C modular and interchangeable gold jewellery brand

SUBSECTOR

TOTAL FUNDING

FOUNDING YEAR

HQ

SUBSECTOR

TOTAL FUNDING

FOUNDING YEAR

HQ

FMCG

N/A

2020

Delhi NCR

Fashion

$0.225 Mn

2019

Bengaluru

NOTABLE INVESTORS

NOTABLE INVESTORS

Bootstrapped

Undisclosed

uppercase

Urvann

It is a D2C travel accessories brand

It is a D2C gardening startup

SUBSECTOR

TOTAL FUNDING

FOUNDING YEAR

HQ

SUBSECTOR

TOTAL FUNDING

FOUNDING YEAR

HQ

Fashion

$8.5 Mn

2022

Mumbai

Home Decor

$0.45 Mn

2021

Delhi NCR

NOTABLE INVESTORS

NOTABLE INVESTORS

Sixth Sense Ventures, Volorado Venture Partners

Inflection Point Ventures

69

Wildermart

What’s Up Wellness

It is a D2C everyday essentials startup

It is a D2C health and wellness startup

SUBSECTOR

TOTAL FUNDING

FOUNDING YEAR

HQ

SUBSECTOR

TOTAL FUNDING

FOUNDING YEAR

HQ

FMCG

N/A

2020

Kolkata

FMCG

$3 Mn

2019

Bengaluru

NOTABLE INVESTORS

NOTABLE INVESTORS

Bootstrapped

Sairee Chahal, Sreenivasan Ramakrishnan, Anand Rangaswamy, Dr Rohit Bhardwaj

70

Financial Analysis Of Indian D2C Brands
$1.03 Bn+ in total sales clocked by Indian D2C brands in FY21
39% year-on-year increased in total sales between FY20 & FY21
WOW Skin Science witnessed the highest sales growth (FY20 & FY21) among the sample set
1 out of 4 funded D2C brands in India were operationally profitable in FY21
$157 Mn+ spent by Indian D2C brands on advertising in FY21
$2.6 Mn median advertising budget of Indian D2C brands in FY21
$40 Mn spent on logistics by Indian D2C brands in FY21
42% year-on-year surge in aggregate logistics expenditure between FY20 & FY21
$873K median expenditure on logistics by Indian D2C brands in FY21
Note: The aggregate revenue for both financial years is based on the sample set of top 35 funded D2C startups in India who had revenue over
INR 20Cr in FY21 and make 80% of total venture capital inflow in Indian D2C brands to date.

71

Indian D2C Brands Sales Crossed $1 Bn Mark In FY21
1.25

+39% YoY Surge

Aggregate Revenue ($ Bn)

1.00

Despite 2 out of every 5
Indian D2C brands
recording a decrease in
sales from FY20 to FY21,
the combined revenues of
these brands showed a
39% YoY surge in revenue
from sales

0.75

0.50

0.25

0.00

FY20

FY21

Source: Inc42 Calculations, Company Filings
Note: The aggregate revenue for both financial years is based on the sample set of top 35 funded D2C startups in India who had revenue over INR 20Cr in FY21 and make 80% of total venture capital inflow in Indian D2C brands to date.
INR to USD exchange rate is 80

72

Indian D2C Brands Which Recorded The Highest Annual Growth In Sales
Between FY20 & FY21
Top 10: D2C Brands With Highest Sales Growth

WOW Skin Science
Mamaearth
Minimalist

Top three Indian D2C
brands which witnessed
the highest YoY sales
growth between FY20 & ‘21
are from the beauty &
personal care segment.

Licious
Vahdam Teas
DaMENSCH
Happilo
boAt
Bombay Shaving
Company
Wakefit
0.00

5.00

10.00

15.00

20.00

YoY Sales Surge (In x times)
Source: Inc42 Calculations, Company Filings
Note: The aggregate revenue for both financial years is based on the sample set of top 35 funded D2C startups in India who had revenue over INR 20Cr in FY21 and make 80% of total venture capital inflow in Indian D2C brands to date.
INR to USD exchange rate is 80

73

Top 10 Indian D2C Brands With The Highest Sales Growth Between FY20 & ‘21
Company Name

Sales (FY20)

Sales (FY21)

YoY Surge

$0.8 Mn

$12 Mn

15.4x

$14 Mn

$58 Mn

4x

$0.8 Mn

$3 Mn

3.4x

$16 Mn

$53 Mn

3.2x

$4 Mn

$10 Mn

2.6x

$1.1 Mn

$3 Mn

2.5x

$7 Mn

$17 Mn

2.4x

$88 Mn

$189 Mn

2.2x

$2 Mn

$5 Mn

2.1x

$25 Mn

$51 Mn

2.1x

Source: Inc42 Calculations, Company Filings
Note: The aggregate revenue for both financial years is based on the sample set of top 35 funded D2C startups in India who have revenue over INR 20Cr in FY21.
INR to USD exchange rate is 80

74

Only 1 Out 4 Funded D2C Brands In India Are Operationally Profitable

Profitable Operationally
25.7%

Top Indian
D2C Brands

The supply and consumer
demand shock infused by the
pandemic in FY22 & ’23, clubbed
with growing competition. We
expect more Indian D2C brands to
close their annual accounts in
loss for the financial year 2022

Loss Making
74.3%

Source: Inc42 Calculations, Company Filings
Note: The aggregate revenue for both financial years is based on the sample set of top 35 funded D2C startups in India who had revenue over INR 20Cr in FY21 and make 80% of total venture capital inflow in Indian D2C brands to date.
INR to USD exchange rate is 80

75

Notable Indian D2C Brands Which Are Operationally Profitable
Company Name

Total Revenue (FY21)

Total Expenditure (FY21)

Operating Income

$180 Mn

$161 Mn

$20 Mn

$191 Mn

$178 Mn

$14 Mn

$126 Mn

$119 Mn

$6.9 Mn

$26 Mn

$20 Mn

$5.6 Mn

$58 Mn

$54 Mn

$3.8 Mn

$18 Mn

$16 Mn

$1.9 Mn

$11 Mn

$8.9 Mn

$1.8 Mn

$2.8 Mn

$2 Mn

$0.8 Mn

$9.0 Mn

$8.7 Mn

$0.3 Mn

Source: Inc42 Calculations, Company Filings
Note: The aggregate revenue for both financial years is based on the sample set of top 35 funded D2C startups in India who have revenue over INR 20Cr in FY21.
INR to USD exchange rate is 80

76

$157 Mn Spent By Indian D2C Brands On Advertising In FY21
200

+12% YoY Surge

Aggregate Advertising Expenditure

150

The median advertising
budget for a top funded D2C
brand in India was $2.6 Mn in
FY21. Unchanged on YoY
basis compared to the
previous year.

100

50

0

FY20

FY21

Source: Inc42 Calculations, Company Filings
Note: The aggregate revenue for both financial years is based on the sample set of top 35 funded D2C startups in India who had revenue over INR 20Cr in FY21 and make 80% of total venture capital inflow in Indian D2C brands to date.
INR to USD exchange rate is 80

77

Indian D2C Brands With Highest Market Spends
Company Name

Sales (FY20)

Sales (FY21)

YoY Surge

$5.7 Mn

$22 Mn

3.9x

$6.4 Mn

$18 Mn

2.9x

$14 Mn

$16 Mn

1.1x

$21 Mn

$13 Mn

-39%

$14 Mn

$8.9 Mn

-36%

$6.2 Mn

$8.2 Mn

1.3

$4.6 Mn

$7.0 Mn

1.5

$9.2 Mn

$5.8 Mn

-37%

$2.6 Mn

$5.5 Mn

2.1

$0.3 Mn

$5.5 Mn

17.5

Source: Inc42 Calculations, Company Filings
Note: The aggregate revenue for both financial years is based on the sample set of top 35 funded D2C startups in India who have revenue over INR 20Cr in FY21.
INR to USD exchange rate is 80

78

Indian D2C Founder Survey, 2022
50% D2C brands in India have an omnichannel presence
Brands Awareness the most significant challenge for D2C brands in India
63% Indian D2C brands leverage influencer marketing
Up to 20% marketing budget allocation on social media influencers in FY23
Instagram the preferred social media platform for engagement and conversions
75% D2C brands in India prefer third-party logistics
66% D2C brands in India do not sell their products overseas
Shiprocket the most popular choice for logistics

Note: The above-mentioned insights are based on survey analysis of 50 Indian D2C brands

79

50% Indian D2C Brands Have Omnichannel Presence
No
21.1%

Indian
D2C
Brands
Planning on it
28.9%

Source: Inc42’s Indian D2C Founder Survey 2022
Note: This analysis is based on the survey of 50 D2C brands in India
Questions asked: Do you have an omnichannel presence (both online and offline)?

Yes
50.0%

87% of Indian D2C brands
give high importance to
having an omnichannel
(online + offline)
presence.

80

Brand Awareness Is The Most Significant Challenge For D2C Brands In India
Brand awareness (marketing)
Commision of third-party digital
marketplace

Growing competition,
presence of legacy brands
and rising CAC, can hinder
the marketing effectiveness
of Indian D2C brands

Growing competition
Customer retention
Logistics partner integration
Product distribution
Manufacturing/Production
0%

10%

20%
Number of respondents

Source: Inc42’s Indian D2C Founder Survey 2022
Note: This analysis is based on the survey of 50 D2C brands in India
Questions asked: Which of the following do you believe is the most significant challenge for India’s D2C ecosystem?

30%

40%

81

More Than 60% D2C Brands In India Leverage Influencer Marketing

No
36.8%

Indian
D2C
Brands
Yes
63.2%

Source: Inc42’s Indian D2C Founder Survey 2022
Note: This analysis is based on the survey of 50 D2C brands in India
Questions asked: Do you leverage influencer marketing?

In FY23, Indian D2C brands plan
on spending approximately 5% to
20% of their annual marketing
budget on social media
influencers

82

Indian D2C Brands Expected To Spend Up To 20% Of Their Marketing Budget
On Social Media Influencers In FY23
5% to 20%

84% of Indian D2C
brands plan on allocating
up to 20% of their annual
marketing budget on
social media influencers
this financial year

Less than 5%

21% to 30%

More than 30%

0%

10%

20%

30%

Number of respondents
Source: Inc42’s Indian D2C Founder Survey 2022
Note: This analysis is based on the survey of 50 D2C brands in India
Questions asked: What percentage of your marketing budget will be spent on influencer marketing in FY23?

40%

50%

83

Instagram A Clear Winner In Terms Of Both Social Media Engagement &
Conversions
Instagram

Backed by the growing
number of influencers
and popularity of “reels”
in India. Instagram can
be termed as the most
popular and effective
social media platform for
D2C brands.

YouTube

Facebook

Others

0

20

40
Best Enagament

60

80

Best Conversions

Source: Inc42’s Indian D2C Founder Survey 2022
Note: This analysis is based on the survey of 50 D2C brands in India
Questions asked: Which of the following social media platform generates the most engagement for you? & Which of the following social media platform generates the most conversions for you?

84

Majority Of Indian D2C Brands Prefer To Sell On More Than Five Online
Ecommerce Marketplace
5-8

Number of marketplace

More than 10
1-3
None
4-5
9-10
0%

10%

20%
% number of respondents

Source: Inc42’s Indian D2C Founder Survey 2022
Note: This analysis is based on the survey of 50 D2C brands in India
Question asked: How many online marketplaces do you sell on?

30%

85

Amazon Is The Most Preferred Ecommerce Marketplace By Indian D2C Brands
Others
13.3%

Myntra
13.3%

Indian
D2C
Brands

Flipkart
16.7%

Source: Inc42’s Indian D2C Founder Survey 2022
Note: This analysis is based on the survey of 50 D2C brands in India
Question asked: Which of these is your favourite ecommerce marketplace?

Amazon India
56.7%

52% of Indian D2C brands
sell their products on more
than five ecommerce
platforms

86

Shiprocket Is The Most Preferred Logistics Partner For Indian D2C Brands
Shiprocket

Bluedart

Shiprocket is also the
latest logistics startup to
attain unicorn status in
August 2022

Delhivery

Pickrr

Others

0%

10%

20%
Preferred Logistics Partner

Source: Inc42’s Indian D2C Founder Survey 2022
Note: This analysis is based on the survey of 50 D2C brands in India
Question asked: Which among these is your preferred logistics partner?

30%

87

More Than 75% D2C Brands In India Prefer To Have Third-Party Logistics
Inhouse Logistics
23.7%

Indian
D2C
Brands

Outsourced
76.3%
Source: Inc42’s Indian D2C Founder Survey 2022
Note: This analysis is based on the survey of 50 D2C brands in India
Question asked: How do you manage your logistics?

88

Importance of selling overseas on scale (1 to 10)

Indian D2C Brands Are Bullish On Selling Their Products Overseas

High Impact (6 to 10)

Moderate (5)

Low Impact (0 to 4)

0%

20%

40%
Number of respondents

Source: Inc42’s Indian D2C Founder Survey 2022
Note: This analysis is based on the survey of 50 D2C brands in India
Questions asked: On a scale of 1 to 10 rate the importance of expanding overseas for modern D2C brands in India

60%

80%

89

Two-Third D2C Brands In India Do Not Sell Their Product Overseas

Yes
34.2%

Indian
D2C
Brands
No
65.8%

Source: Inc42’s Indian D2C Founder Survey 2022
Note: This analysis is based on the survey of 50 D2C brands in India
Questions asked: Do you sell your products overseas?

90

Key Challenges For D2C Brands In India
High Competition From Legacy Players & Marketplaces
High competition from legacy players since they have strong distribution network and are easily accessible especially in semi-urban and rural areas.
Difficult to match price range & discounts offered by marketplaces

Difficulty In Managing Logistics
Difficulty in dealing with multiple third-party delivery partners
High RTO (return-to-origin) rate in case of COD (cash-on-delivery)
Connectivity issues in tier-2 & tier-3 cities due to poor infrastructure

Low Customer Retention & Loyalty
Given the crowded space, customers have shifted to product loyalty than brand loyalty resulting in reduced lifetime value of a customer and high churn rate

High Customer Acquisition Cost
High marketing costs results in costly customer acquisition
High commission charged by ecommerce marketplaces & high dependence on ecommerce platform for brand visibility makes it a compulsion to be present on it

91

Ecommerce: Emerging Trends In India
Rise Of Visual Search
Tech-savvy internet users have been using image searches to buy anything that they like by uploading images on ecommerce platforms and getting products similar to the images
uploaded by them.

Focus On Sustainability
With the rise in awareness among consumers, D2C brands have also started focusing on environmentally-friendly practices, from green packaging to more eco-friendly shipping
methods.

Integration Of Metaverse For Sales
Homegrown consumer electronic brand Leaf Studios is planning to make a launch in metaverse. When consumers make physical purchases of the brand’s headphones, the firm
will also drop the NFT (Non-fungible token) in their metamask wallets which will help them unlock the same headphone in metaverse.

Growing Popularity Of Live Commerce
Live Commerce is a new trend where brands or influencers hired by them do live streams, placing commercial products front-and-center. For instance, Walmart-backed Flipkart
and Meesho also embraced live commerce this year.

92

Updates From ONDC Universe
ONDC prepares to launch in September 2022 and reach 100 cities by the end of the year.
Currently, ten platforms including Reliance owned Grab, Paytm, Digit, PhonePe, eSamudaay, Go Frugal, Dunzo and Loadshare are a part of the
open network.
Microsoft has become the first big tech company to join ONDC
Confederation of All India Traders (CAIT), a representative body of 70 Mn+ small retailers, is likely to join the government-backed ONDC by the
end of 2022.
SoftBank and Sequoia India has advised their portfolio startups in India to join ONDC.
OYO, Zomato and Swiggy are likely to join the network and are in various stages of integration.
National Restaurant Association of India (NRAI) plans to onboard its restaurants to the network.

93

Draft Ecommerce Policy: Key Features
Issued by DPIIT in February 2019, center is once again deliberating on the draft guidelines and pkan to launch it soon in the public domain.

The overall objective of this Policy is to prepare and enable stakeholders to fully benefit from the opportunities that would arise from
progressive digitalization of the domestic digital economy.
Scope and objectives are defined under 6 heads including data, infrastructure development, ecommerce marketplaces, regulatory
issues, stimulating the domestic digital economy and export promotion through ecommerce
Aims to regulate cross-border data flow, while enabling sharing of anonymised community data (data collected by IoT devices
installed in public spaces like traffic signals or automated entry gates)
Development of data-storage facilities/infrastructure to facilitate last mile connectivity across urban and rural India
Provides for integrating Customs, RBI and India Post systems to improve tracking of imports through e-Commerce. All ecommerce
websites and applications available for downloading in India must have a registered business entity in India as the importer on record
or the entity through which all sales in India are transacted.

94

Ecommerce entities are required to publicly share all relevant details of sellers who make their products available on
websites/platforms of these entities. All the sellers/retailers are required to furnish an undertaking of genuineness of products to the
platforms and the same must be made accessible to consumers by the platforms
Recognising the inter-disciplinary Draft Page 8 of 41 nature of ecommerce, the Standing Group of Secretaries on e-Commerce (SGoS)
is recognised as the mainmechanism to tackle inter-departmental issues effectively.
Proposes removal of application fee for claiming export benefits for Indian domestic
manufacturers/MSMEs/start-ups/sellers/retailers
Aims to clearly demarcate what constitutes a marketplace model and what comprises an inventory-based model of sale and
distribution.

 

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