India secured 2nd position globally in D2C funding: Report

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According to data by market intelligence platform Tracxn, India secured the second position globally in terms of funding raised for the D2C sector in 2024, following the United States and ahead of China, the UK and Italy.

The sector raised a total funding of $757 million in 2024, marking a significant decline of 18 per cent from the $930 million raised in 2023 and a sharp 54% drop compared to $1.6 billion raised in 2022. 

With over 11,000 companies, India is home to some of the largest D2C brands. However, only around 800 of these have secured funding so far. The D2C space witnessed its peak funding in 2021 and 2022, after which the funds began to decline steadily, making 2024 the least funded year since 2021.

Early-stage funding witnessed a total of $355 million in 2024, reflecting a 25 per cent increase from the $284 million raised in 2023. Meanwhile, 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 highest drop witnessed in both total funding and the number of funding rounds in 2024 compared to the previous two years.

Investor Caution

The decline in funding can be attributed to heightened investor caution amid a global economic slowdown, the oversaturation of similar brands, and fluctuating unit economics driven by high customer acquisition costs. Additionally, D2C brands are facing challenges such as expensive offline expansion and pressure to be profitable, leading many to seek acquisitions as viable exit strategies.

 Speaking at the launch of their report, Neha Singh, Co-Founder of Tracxn, said, “India’s D2C sector is evolving with investors prioritising profitability and sustainable growth. While overall funding has declined due to investor caution and broader economic tailwinds, the rise in early-stage investments signals continued confidence in the long-term potential of India’s D2C sector. Government support through initiatives like ONDC and Startup India is also helping create a more resilient and scalable ecosystem.”

Top segments

The top-funded segments in the D2C sector in 2024 were D2C Organic Beauty Brands, Online Jewellery Brands, and D2C Beauty Brands.

BlueStone, an online brand offering subscription-based precious jewellery, secured $71 million in its Series D funding round at a valuation of $964 million, making it the largest funding round in the Indian D2C space in 2024.

Bella Vita Organic, a multi-category beauty products brand, raised $48.5 million in its angel funding round, while WoodenStreet, an Internet-first brand for customised furniture for homes, raised $43M in a series C funding round.

No unicorns were created in 2024 and 2023, compared to 1 in 2022. Notably, India’s D2C space has created only 4 unicorns so far. These are Lenskart, MyGlamm, boAT and Licious.

2024 witnessed 13 acquisitions, reflecting a 13 per cent and 58 per cent decline compared to those of 15 and 31 acquisitions in 2023 and 2022, respectively.

Three companies went public in 2024 compared to 6 companies in 2023. The companies that attained IPO status in 2024 were Interiors & More, Signoria, and KIZI Apparels.

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

Fireside Ventures, Angel List, and DSG Consumer Partners were the overall top Investors in 2024. Thapar Vision, Fireside Ventures, and Z Nation Lab were the top seed-stage investors. Saama Capital, Unilever Ventures, and Alteria Capital were the top early-stage investors, while Think Investments was one of the top late-stage investors.

Published on April 16, 2025