India's D2C segment sees funding decline to $757 million in 2024

The decline in funding can be attributed to investor caution amid global economic slowdown, oversaturation of similar brands, and fluctuating unit economics driven by high customer acquisition costs

India’s direct-to-consumer (D2C) segment, which raised $757 million in 2024, witnessed a drop of 18 per cent and 54 per cent compared to $930 million and $1.6 billion in 2023 and 2022, respectively, according to a latest report. The decline in funding can be attributed to investor caution amid the global economic slowdown, oversaturation of similar brands, and fluctuating unit economics driven by high customer acquisition costs, as per the 2024 Tracxn Geo Annual Funding Report on India’s D2C sector. The report also pointed out that D2C brands are reeling under challenges including costly offline expansion and pressure to shift towards profitability.

 

D2C SNAPSHOT 2024

 

Funding Raised	$757 Mn
Funding Rounds	251
First-time Funded Cos	70
Unicorns	0
Acquisitions	13
IPOs	3

 

 

D2C FUNDING 

2024: Least Funded Year for D2C

 

Calendar Year	Funding Amount	Funding Rounds
2021	$1.7 Bn	304
2022	$1.6 Bn	374
2023	$929.7 Mn	327
2024	$756.6 Mn	251

 

 

TOP 5 FUNDING ROUNDS

 

Company (D2C)	Funding Amount (In $ Mn)	Round
BlueStone	72	Series D
Bella Vita Organic	49	Angel
WoodenStreet	43	Series C
Lal Sweets	39	PE
Nat Habit	37	Series B

 

 

TOP 5 D2C EXITS

 

Company

Acquisition Price/IPO Mcap

Type

VCare Products

$60 Mn

Acquisition

Max Protein

$46.4 Mn

Acquisition

Earth Rhythm

$5.3 Mn

Acquisition

Interiors & More

$19.2 Mn

IPO

Signoria

$3.7 Mn

IPO

 

 

TOP 5 FUNDED CITIES

 

City	Funding Amount (In $ Mn)	Funding Rounds
Bengaluru	253	43
Gurugram	164	29
Mumbai	99.8	59
Delhi	74.1	36
Jaipur	45.1	6

 

 

STAGE-WISE FUNDING TRENDS

 

	Seed Stage	Early Stage	Late Stage
2020	$50.4 Mn	$294 Mn	$80.3 Mn
2021	$140 Mn	$413 Mn	$1.1 Bn
2022	$183 Mn	$540 Mn	$912 Mn