Introduction
One could hardly have imagined that in ten years, the meteoric rise of Direct to Consumer (D2C) brands would break the monolithic structure of Indian retail. These brands have heralded a new beginning by shifting away from the security blanket of popular eCommerce platforms and retail distribution networks.
But what sort of future do D2C brands have in India? Let’s explore this question in detail. We present to ardent readers like you a list of 15 D2C brands that are currently disrupting the Indian consumer market. We will look at the present state of D2C markets in India and the success stories of our 15 D2C maestros. Let’s read ahead then.
Exploring D2C Brands: Definition and Characteristics
A D2C brand is one that diverges from the traditional retail formula where manufactured products reach the customer via intermediaries like distributors, wholesalers, and retailers. In eliminating third-party middlemen, D2C brands secure a way to sell directly to customers.
The primary characteristic of the D2C brand is channelizing its resources to create a platform for customers to interact directly with. A D2C company can remain wholly digital, creating online communities and investing in social media to thrive.
However, over the years, many of them have decided to blend in an omnichannel methodology. They prefer to either have offline retail outlets or consider eCommerce marketplaces as alternate sales channels.
D2C brands almost always take recourse with social media marketing and digital advertising to rope in contemporariness and raise brand identity. For example, brands like Rage Coffee are backed by cricketer Virat Kohli or Mokobara, approved by actress Deepika Padukone.
D2C companies capture and combine customer data to create a holistic customer experience, otherwise not replicated by B2C or B2B brands. Take the example of wellness brand Wow Skin Science and jewellery brand Caratlane actively using live streaming and trying at-home services to appeal to their customer base.
The Rise of the D2C Business in the Indian Retail Sector
The rise of D2C businesses marks an overall transition of India’s macroeconomic variables and growing consumer purchasing power. India is regarded as the third largest consumer market in the world, with a 190+ online consumer base. It is well poised to be the second largest in the world after toppling the United States.
With consumers ready in the market and a burgeoning demand for products designed with innovation and sustainability, D2C businesses found reasons to be. Not to mention, India has developed a robust digital infrastructure and fundamentals to support the boom in e-retail.
Bain and Company estimate that India’s retail is set to reach $150-$170 billion by 2027. And a significant proportion of this growth comes from D2C brands that are quickly gaining the status of unicorns. In the D2C segment, fashion and beauty, followed by grocery, takes the lead.
The rise of D2C brands also gains its impetus from focusing on tier-II and tier-III cities for sourcing its materials and meeting the underserved markets of these cities. These brands benefit from the extensive and deep logistics network and SaaS tools that are available today to optimize their supply chain operations.
Top 15 D2C Brands Disrupting the Indian Consumer Market
1) DaMENSCH
Literally meaning “The Man,” DaMESNCH threaded innovation with sustainability, creating a comfort zone for menswear that’s hard to come by. Since its inception on 3rd May 2018, this D2C company has bagged an Annual Recurring Revenue (ARR) of 100 crores in just three years.
Its founders, Anurag Saboo and Gaurav Pushkar, started the brand by targeting the least sought after segment in men’s apparel- innerwear. Now the brand has expanded its collection with a wide range of products: hoodies, joggers, polo t-shirts, shirts, statement t-shirts, vests, and more.
DaMENSCH’s secret to its exponentially growing popularity lies in combining sustainable fabric practices. Take, for example, its “The Constant Collection,” popularly known as 500 Day Collection contains curated apparel that lasts for 17 months.
It has introduced new technologies molded to sustain fabric quality, durability, and color, such as micro-modal and bacteriostatic fabrics. As such its iconic collection includes odor preventing inners and bamboo or cotton vests. The company primarily operates on its website but maintains a presence on Amazon, Nykaa, and TataCliq.
Owing to its customer centric policies, sizable apparel collection, and sustainable designs, DaMENSCH could secure $16.4 million in Series B funding. The brand also pays heed to local upliftment by sourcing materials from Tamil Nadu, Punjab, and Karnataka.
2) Licious
Licious has carved its unique place in the hearts of thousands of meat and seafood lovers in the country since its inception in 2015. Co-founded by Vivek Gupta and Abhay Hanjura, Licious has disrupted the e-retail market in the most underserved food sections: seafood and meat.
In just five years, the brand has unlocked 300% growth, having served over 3 million customers to date across major metropolises like Bangalore and Mumbai. With an ever exploding popularity, it now offers a premium range of meat and seafood collections to 1 million consumers each month.
The secret to Licious’s consumer satisfaction with its immaculate grasp over cold logistics techniques that keep each product as fresh as it gets. Its diverse product range includes different cuts of fish, chicken, mutton, prawns, ready-to-cook marinated pieces, cold cysts, spreads, and spices.
Currently this animal-protein based brand has earned the reputation of a ‘Unicorn startup’ with an evaluation surpassing $1 billion. It secured a Series F2 funding worth $150 million from leading Singapore based Amansa Capital for stimulating technological innovation.
3) boAT Lifestyle
There are hardly any millennials and GenZ ‘audiophiles’ who haven’t come across at least one boAT product on Amazon or Flipkart. Its co-founder, Aman Gupta has had extensive experience handling sales for companies like JBL. He melded his expertise with the entrepreneurial skill set of Sameer Ashok Mehta in 2014 to form the brand we know today.
boAT tapped into a market that was waiting for “Made in India” wearable audio electronics. The brand quickly rose to fame amongst millennials with its affordable and stylish portfolio of products. Its journey began with indestructible charging cables and quickly incorporated both wired and wireless hearables.
boAT enthusiasts get a wide range of selections, from gaming headphones to neckbands, wireless earbuds to smartwatches, and power banks to speakers. boAt is majorly active in eCommerce marketplaces that supplement 83% of its revenue. Moreover, in 2018-19, it started its offline trajectory with Reliance Digital and Croma Stores.
boAT’s strong presence amongst consumers is a testament to its marketing strategy, whereby it branded itself as an aspirational brand. It has forged a community of ‘boAtheads’, who are young trendsetters, optimistic, and have strong aspirations to achieve their dreams. It solidified its brand presence, bringing perceived value from Indian celebrities like Kiara Advani and Kartik Aryan.
4) Wow Skin Science
In an era with growing climate consciousness and the rapid rise of the vegan movement, Wow Skin Science naturally fits the mold. The company positions itself as a natural and authentic plant-based beauty brand that’s cruelty-free and devoid of harsh chemicals.
Founded by Manish Chowdhary and Karan Chowdhary, the brand is growing at an unprecedented rate, earning nearly 500 crores in 2022. This health and wellness brand gets 90% of its sales from retail outlets in India and the U.S. Only 10% of its customers buy from its website.
What empowers it to compete with behemoth cosmetic brands like Nykaa and Mamaearth is its broad spectrum of the product portfolio. It presents customers with the fun of experimenting with diverse plant ingredients like Vitamin C, apple cider vinegar, and activated charcoal.
It also enables customers to choose products based on their skin concerns and types, climate variations, and scent. Most of its products hit the perfect 5 star ratings, further endorsing its quality for new users. The startup has seen a flurry of funding from Singapore's GIC and venture capital firms like Chrys Capital. Its total funding stands at $124.9 million.
5) BlueStone
Some say India is the land of gold and jewelleries, and not without evidence. According to the World Gold Council, India is the second largest consumer market for gold jewellery in the globe. Pair this with how most of us shop online now and you will understand why BlueStone is so popular.
This jewellery brand was one of the first ones to launch its collections completely online, starting from its foundation in 2011 by Gaurav Kushwaha. It is now a major omnichannel D2C store with 150+ retail stores reaching the furthest corner of the country, like Nagaland.
It has an impressive portfolio suited for all ages, gender, occasions, and price ranges, incorporating gold, diamond, platinum, and gemstones. Staying true to the motto of D2c business, BlueStone has created an incredibly gratifying customer experience.
Take, for example, its lifetime exchange offer that allows customers to exchange their old jewellery for newer designs or cash.
It has others tantalizing offers like trying at home service, allowing potential shoppers to book a home appointment to view shortlisted pieces. BlueStone leverages the comfort of online shopping by offering free shipping and 100% return within 30 days of purchase, no questions asked.
6) Neeman’s
Neeman’s just fits the trend where we are heading towards incorporating sustainable practices in our everyday lives. In fact, it is one of the very few shoe brands in India that has completely substituted synthetic fibers with organic ones.
The eco-friendly footwear brand caught the media’s and natural consumers’ attention by recycling PET plastic bottles and rubber into shoes. Today Neeman’s uses a variety of renewable fabrics like Merino Wool, renowned for being featherlight and comfort inducing cotton fabrics.
The brand offers slip-on, casuals, sneakers, loafers, and trainers amongst others. Its footwear ranges from affordable cotton slip-ons to premium Merino wool joggers that come with water resistant soles. Customers buying from Neeman’s positively rate them for their flexible, durable, odorless, and lightweight shoes that obliterate the need to wear socks.
Neeman’s was founded in 2018 by Amar Preet Singh and Taran Chhabra. It is currently valued at nearly $40 million, acquiring a Series B funding of $9.8 million in June 2022.
7) Sugar Cosmetics
Sugar Cosmetics left the country astounded with its estimated valuation of $500 million in May 2022. This D2C brand was started in 2015 by Vineeta Singh and Kaushik Mukherjee, who is the CEO and COO of the company now. It made news again by raising $87.5 million in Series B and Angel funding rounds as of September 2022.
Unlike many of its 100% vegan makeup and beauty counterparts, Sugar focused on developing products that can withstand India’s hot and humid conditions. Its beauty products are geared towards digitally-savvy millennial working women possessing deeper skin tones than Caucasian women.
Vineeta Singh started the company witnessing the lack of compatible products for Indian consumers and the underserved market needs. It commenced its journey with colorful liquid lipstick with a long-lasting impression and blended glossy shine with matte. Today, Sugar has well over 100+ variants of lipsticks, primers, blush, and foundations.
Sugar Cosmetics, too, has been able to achieve its true potential after embracing omnichannel retail but remaining true to its D2C ethos. It currently has over 195+ retail outlets spread across the country. It is not only known for its quality ingredients but more so for its clutter-free and expressive art in packaging.
8) Wakefit
Wakefit goes by the motto of “RightToNap,” steadily marching towards the mission of democratizing sleep for every common person in India. This D2C brand has gained much appreciation from over 5 lakh customers since its founding in 2016 by Chaitanya Ramlingegowda and Ankit Garg.
The brand's prime appeal is its innovation-driven sleep mattresses designed to promote orthopedic comfort, especially relief from back pain. The brand commands an impressive market share of 30-40% in the sleep products market. Its sleep solutions include an orthopedic memory foam mattress, a 7-zone Latex mattress, and dual comfort mattresses.
Though Wakefit began its startup journey with a mattress, today, it boasts a greater selection of products, from pillows to bed frames, sofas to study tables. Currently, the company produces 7500 to 9000 mattresses a month, with machinery imported from Europe and the Middle East.
Owing to its rigorous attention to product quality, Wakefit has earned several certifications of expertise like Certi-PUR and Greenguard. It majorly operates from its website for two-thirds of its total sales; the rest is supplemented by Amazon, Pepperfry, and Flipkart. As of 2022, the company has earned a Series D funding of 320 crores INR.
9) Vahdam Teas
If coffee is the staple drink of sleep-deprived Americans, for 64% of the Indian population, tea is the go-to solution to start their daily routine. Vahdam Teas has achieved its D2C renown as a premium tea brand thanks to its carefully curated herbal and ayurvedic tea ingredients. Currently, it is present in over 103 countries.
The brand’s successful debut in the competitive tea market owes much to its founder, Bala Sada, a fourth generational tea entrepreneur. The brand is completely digitally native, with a strong presence in eCommerce marketplaces like Amazon. According to Tracxn’s native survey, Vahdam bagged first place among 133 competitors.
Though it proudly wears the tag of “Made in India,” Vadham has long transcended India’s boundaries and impressed Hollywood celebrities like Oprah Winfrey, Mariah Carey, and Martha Stewart. Among its many accolades, it also holds the record for being the first Indian tea company with a climate and plastic neutral certification.
Vadham’s most popular teas include cinnamon masala chai, blooming rose black teas, Earl Gray citrus teas and other assortments of spices. Its teas are known for their absolute fresh whole leaf teas, subtle aromas, and zingy aftertaste of spices. The teas freshly picked from gardens are claimed to boost immunity, detoxify bodies, and help with sleep.
10) Caratlane
There are few D2C companies that have continued to maintain its growth momentum like Caratlane has since its establishment in 2008. Founded by Mithun Sacheti and Srinivasa Gopalan, the brand became a subsidiary of Tanishq in 2017. Since then, Caratlane has embraced an omnichannel approach to become India’s largest online jewellery seller.
Caratlane has created its own niche in the jewellery market by designing pieces that are contemporary and ‘en vogue.’ It pays homage to modernity, lightweight, and versatility suited for everyday wear and ever changing fashion styles. Take, for example, its statement collection Shaya, Ombre 2.0, and Bloom.
Recently it launched a collaboration with Wizarding World, much to the delight of the many Potterheads. It even upheld the sorting ceremony with pieces inspired by the famous four Hogwarts houses, patronus, and magic artifacts like the Gryffindor sword.
Caratlane also targets male consumers (who are otherwise not regarded as the most potent consumer segment) with rings, earrings, and bracelets. The brand is estimated to have a value of 20,000 crores INR with a 200% growth rate in 2022. Though it operates primarily from its website, the brand has 165 retail stores in over 66 Indian cities.
11) Heads Up For Tails (HUFT)
HUFT is India’s first online pet store brand that made its debut in the D2C startup market in 2008. As a one it's a kind store, HUFT became popular amongst pet parents early in the day. Interestingly, it was first launched as a kiosk at Select City Mall, South Delhi. With its humble beginnings, the brand has today expanded to 75 stores in 15 Indian cities and 45 pet spas.
HUFT is the dreamchild of its Founder and CEO, Rashi Narang. She was later joined by co-founders Rishima Coelho and Sandeep Atmaram. They designed the brand to become a one-stop destination for everything pet owners would need to care for their furry friends.
Their products have a wide selection of bedding, accessories, wet and dry food, wellness products, and many toys. The total valuation of HUFT is evaluated at $185 million.
In January this year, the company raised funding worth $12.5 million from early venture capitalists Sequoia Capital and Verlinvest. The company had launched its pet accessories products in the U.S. HUFT’s future plans include launching 150 experience centers by 2024 and expanding its retail presence.
12) The Souled Store
The Souled Store has long become synonymous with the pop-culture merchandise storehouse. Since its launch in June 2013 by founders Aditya Sharma, Vedang Patel, and Harsh Lal, the brand has served over 6 million customers who revisit the store.
From cartoon characters to Potterverse, Marvel studio fans to DC followers, and Netflix show bingers to comic lovers; the brand is a go-to destination for millennials and GenZ. The brand is broadly segmented into top wear, bottom wear, shoes, and accessories for men, women, and kids.
The brand majorly operates as a digitally native store, but since 2021, it has made its foray into offline retail. Currently, it has six brick-and-mortar stores located in Mumbai, Pune and Bangalore. The brand further plans to expand its offline footprint with 50+ stores in the upcoming three years.
The Souled Store undoubtedly leads the chart when it comes to pop-culture inspired apparel. In March 2023, the company raised funding of 135 crore INR led by Xponentia Capital. At the moment, the brand earns 70% of its revenue from its online website and app, the remaining from marketplaces and retail outlets. It also plans to expand to the UAE and later the GCC region in the next two or three years.
13) Mosaic Wellness
In 2019, Dhyanesh Shah and Revant Bhate created a digital health clinic to bring health and wellness to the tip of our fingers. The brand focuses on creating personalized health solutions for issues specific to men and women. As such it operates in two verticals, "Be Bodywise,” targeting women’s health, and “Man Matters” for men.
Mosaic Wellness started with the men’s health segment in 2020 and gradually opened its counterpart, Bodywise, in 2021. Now, the company has furthered its health outreach for children with its “Little Joys” component.
Mosaic Wellness has over 150+ doctors with 10+ lakh consultations since its inception. The company’s motto is to make health care and nutrition more accessible to Indian men and women. Interested parties can assess themselves on the platform, book a free consultation with doctors and get personalized solutions to their affecting problems.
14) Mokobara
Mokobara has made quite a name in the travel and lifestyle sub-segment of India’s D2C sector. The brand came into existence amid the pandemic in 2020, when the travel ban became the norm. Undeterred by any circumstances, its founders Sangeet Agarwal and Navin Parwal, planned for the future of travel with their functional but trendy products.
Currently, Mokobara is headquartered in Bangalore. It largely offers duffel bags, backpacks, and suitcases with the motto to help its customers reach their destination with ease and style. It also offers sling bags, wallets, and travel kits. Its products have gained a reputation for their sleek design, eye-catching aesthetics, and durability.
Mokobara has taken the omnichannel roadway, with sales accruing from its offline stores, eCommerce marketplaces and its native website. In 2022, the brand raised funding capital of $6.5 million, led by Saama Capital and Sauce VC.
15) Rage Coffee
Rage Coffee earned its place in our list for giving coffee a swoon-worthy makeover gaining the love and trust of India’s 160,000 coffee lovers. This FMCG startup is currently the fifth fastest growing D2C startup company, according to Inc42’s survey.
The popularity of Rage Coffee in the highly competitive and fast transforming FMCG market has owes to its excellence in preserving the freshness, aroma, and natural flavors of coffee beans. Its founder Bharat Sethi started the brand in 2018 to suffuse the market with nutrient-infused and vegan instant coffee.
Since then, Rage Coffee has clocked 23.5 crores INR in 2022 and is currently valued at $20 million. In March 2022, the company raised a funding of $4.2 million in Series A. The brand is set to unlock greater revenue in the upcoming years after diversifying its products with gluten-free cookies and snack bars.
Conclusion
A decade ago, D2C was not a term Indian consumers were familiar with. But today, it’s a different story. Every five out of ten youth consumers today are familiar with at least one of the 800+ D2C brands that operate in India.
D2C brands gain traction owing to their excellent products, smooth customer service, deep customer engagement, and social media presence. Many of these brands are on their way to reaching the 100 crore mark, and others are in the process of securing this trophy. We hope this article will help you understand D2C brands and their unique features clearly.
FAQs
1) Why do Indian Consumers Prefer D2C Brands?
Indian consumers prefer D2C brands for the excellent brand experience they provide. Since these companies eliminate or limit the reach of middlemen like distributors or wholesalers, they can offer price benefits that other customers don’t get. The brands are also hyper-focused on creating a seamless customer journey with fast response time and quality services. Customers also get to be part of VIP membership and loyalty programs with D2C brands.
2) How is Direct-to-consumer different from business-to-consumer brands?
A Direct-to-Consumer channel removes middlemen from their business model and prefers to sell their products directly to customers, either on their digital platform or a retail outlet they own and operate. In contrast, a B2C business model relies on distribution networks like wholesalers, distributors, and retailers to reach a greater customer base in a wider geographic area. It is easier for a B2C business to scale faster than its D2C counterpart.
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