Bengaluru: India secured the second spot globally in terms of funding raised by the direct-to-consumer (D2C) sector in 2024, a new report said on Wednesday. The country ranks just behind the United States and ahead of China, the UK, and Italy, according to a Tracxn’s report. The report shows that the total funding in India’s D2C space stood at $757 million in the previous year.
India is home to more than 11,000 D2C companies, out of which around 800 have managed to secure funding so far. The early-stage and seed-stage funding saw growth. Early-stage investments rose by 25 per cent to $355 million in 2024 compared to 2023, while seed-stage funding climbed 18 per cent to $141 million.
“India’s D2C sector is evolving with investors prioritising profitability and sustainable growth. The rise in early-stage investments signals continued confidence in the long-term potential of India’s D2C sector,” said Neha Singh, Co-Founder of Tracxn. Among the most funded segments in 2024 were D2C organic beauty brands, online jewellery brands, and D2C beauty brands.
Organic beauty brands saw a major rise in funding, receiving $105 million -- a 79 per cent increase from 2023. The biggest funding round in 2024 was by BlueStone, which raised $71 million in Series D funding at a valuation of $964 million, the report said. Bengaluru led the way in funding, attracting $253 million, followed by Gurugram with $164 million and Mumbai with $99.
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