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