(Saturday Deep Dive) - Emergence of D2C Startups in India: Part II

India’s D2C landscape is marked by remarkable growth stories, as brands like MamaEarth, Lenskart, boAt, Sugar Cosmetics, Bewakoof, BlissClub, and Melorra redefine retail with unique, customer-centric approaches. These brands tap into niche needs—be it toxin-free personal care, affordable eyewear, or stylish audio products—using direct consumer engagement and leveraging social media, influencer partnerships, and e-commerce platforms.

Investor interest has surged with substantial funding rounds fueling rapid scaling, international expansion, and product innovation. Future trends indicate increased omnichannel presence, personalization, sustainable practices, and market penetration into smaller cities, making D2C a vibrant, evolving segment in India’s consumer market.

Read this deep dive to understand their growth stories. Enjoy!

Growth Story of Major D2C Brands in India

1. MamaEarth

In the vibrant landscape of India's D2C sector, MamaEarth stands out as a remarkable success story, exemplifying how a brand can grow from a nascent idea into a household name. Founded in 2016 by Honasa Consumer Pvt Ltd, the brand was the brainchild of Varun Alagh and Ghazal Alagh, who envisioned a range of toxin-free and natural personal care products tailored for the needs of Indian consumers. The couple's personal experiences, particularly with their child’s sensitive skin, ignited their passion for creating safe, effective solutions in an industry often filled with chemical-laden options.

The Beginnings

MamaEarth's journey began with the launch of its first product, a range of baby care items free from harmful chemicals. The founders were acutely aware of the rising awareness among parents regarding the ingredients in baby products. By tapping into this growing concern, MamaEarth positioned itself as a brand synonymous with safety and quality, targeting eco-conscious consumers who sought effective, natural alternatives.

Scaling Up

The brand quickly garnered attention for its innovative marketing strategies. Leveraging social media, MamaEarth built a strong online community, fostering trust and engagement with its audience. Influencer partnerships played a pivotal role, as the brand enlisted popular figures to share their positive experiences with MamaEarth products. This organic reach helped the brand cultivate a loyal customer base, propelling its growth in a relatively short time.

By 2019, MamaEarth had expanded its product line to include skincare and haircare products, catering to a broader demographic. T

Funding and Expansion

MamaEarth's impressive growth caught the eye of investors, leading to significant funding rounds. In 2021, MamaEarth raised $50 million in a Series D round, solidifying its position in the market. This funding was instrumental in scaling operations, expanding into international markets, and launching new products.

Business Model and Success Factors

MamaEarth operates on a D2C business model, allowing the brand to sell directly to consumers through its website and various e-commerce platforms. This approach not only maximizes profit margins but also enables MamaEarth to establish a direct relationship with its customers, fostering loyalty and trust. The brand's emphasis on transparency, evident in its commitment to using natural ingredients, resonates with consumers who are increasingly conscious of their purchasing decisions.

Several factors contributed to MamaEarth's success. The brand's focus on consumer education, coupled with its commitment to sustainability and eco-friendliness, positioned it favorably in the eyes of a discerning audience. Additionally, its innovative marketing tactics, strategic use of e-commerce, and responsiveness to customer feedback created a compelling value proposition.

As of now, MamaEarth continues to thrive, with a diverse range of products that cater to various customer needs. The brand's mission to provide safe, toxin-free products resonates with an expanding demographic, setting the stage for future growth in the ever-evolving D2C landscape in India.

2. Lenskart

Lenskart is a pioneer in the eyewear industry in India, disrupting the traditional retail model and becoming a leader in the D2C segment. Founded in 2010 by Peyush Bansal, Lenskart began as an online retailer offering affordable eyeglasses, addressing a gap in the Indian market where high-quality eyewear was often expensive and difficult to access. What started as a simple online venture quickly grew into one of India's most successful omnichannel eyewear brands.

The Beginnings

Lenskart's story started when Peyush Bansal, a graduate of McGill University and a former employee of Microsoft, decided to return to India with the goal of addressing the unorganized nature of the eyewear industry. Bansal realized that millions of Indians needed prescription glasses but either couldn’t afford them or had limited access to quality eyewear. Lenskart aimed to change this by offering a vast range of stylish, affordable eyewear through an online platform.

Initially, Lenskart only sold contact lenses but soon expanded to prescription glasses and sunglasses. Bansal’s focus was on making eyewear not just a necessity but a fashion statement, and his brand combined affordability with quality to appeal to the masses.

Scaling Up

Lenskart's growth was driven by its innovative approach to customer experience. The brand introduced a virtual “try-on” feature, allowing customers to see how they would look with different frames before making a purchase. This technology, along with Lenskart’s home eye-checkup service, enhanced the convenience factor for customers.

Additionally, Lenskart adopted an omnichannel strategy by opening physical stores across India. This hybrid model of online and offline retail was crucial to the brand's success, as it allowed customers to experience the products in person while still benefiting from the ease of online shopping. By 2019, Lenskart had opened over 500 stores, covering major cities and towns, making it more accessible to a wider audience.

Funding and Expansion

Lenskart's growth attracted several rounds of funding. The company raised its first significant investment of $4.05 million in 2011 from Chiratae Ventures, and others. By 2016, Lenskart had secured a Series D funding round of $60 million, led by IFC (a member of the World Bank Group), which was instrumental in scaling its physical store network and upgrading its manufacturing capabilities.

By the end of 2019, Lenskart became one of India’s most highly valued startups, securing a $231 million investment from SoftBank Vision Fund, which brought its valuation close to $1.41 billion, cementing its unicorn status. The capital infusion allowed the company to expand internationally and strengthen its supply chain, ensuring high-quality manufacturing and delivery.

Business Model and Success Factors

Lenskart’s business model operates as an omnichannel retailer, combining the best of both worlds: an extensive online catalog and a wide network of offline stores. This D2C approach helps the brand reach consumers directly, cutting out the middlemen, and offering products at lower prices. Its strong in-house manufacturing capabilities ensure that it can maintain control over quality and costs, which is key to its value proposition.

Key success factors include its innovative use of technology (like virtual try-ons), robust supply chain, and a deep understanding of customer needs. Lenskart also focuses heavily on customer service, offering home eye-checkups and free trials to make eyewear purchasing more accessible and convenient.

3. boAt

Boat has become one of the most recognized and successful D2C brands in India, particularly in the audio and lifestyle electronics space. Founded in 2016 by Aman Gupta and Sameer Mehta, Boat started with a simple mission: to provide affordable, durable, and stylish audio products for India’s increasingly tech-savvy youth. What began as a small venture selling affordable earphones quickly evolved into a market leader, capturing the attention of millions of consumers across the country.

The Beginnings

The idea behind Boat was born from a gap that the founders identified in the Indian consumer electronics market. Premium audio products from brands like JBL, Sony, and Bose were often too expensive for the average consumer, while lower-priced alternatives lacked the durability and style that younger consumers desired. Gupta and Mehta saw an opportunity to create a brand that would deliver high-quality products at affordable prices, appealing to India's growing middle class.

Boat’s first product, an indestructible charging cable, gained popularity quickly due to its durability and affordable pricing. Building on this early success, the brand soon expanded into the personal audio space, launching earphones, headphones, and Bluetooth speakers, which became instant hits with the youth.

Scaling Up

Boat's growth was largely fueled by its ability to tap into the pulse of the Indian millennial market. The brand adopted an aggressive digital marketing strategy, leveraging social media, influencer partnerships, and celebrity endorsements. Boat was one of the first D2C brands in India to understand the power of influencer marketing. The company collaborated with famous Indian personalities, including cricketers like Hardik Pandya and musicians like Neha Kakkar, to increase brand visibility and establish itself as a youth-centric brand.

The affordability and stylish design of its products, combined with a focus on customer experience, helped Boat quickly become a household name. Within no time boAt had become the fifth-largest wearable brand globally, according to research firm IDC.

Funding and Expansion

Boat’s growth story attracted significant attention from investors. In December 2020, the brand raised $100 million in a funding round led by Warburg Pincus, a global private equity firm. This investment marked a major milestone for Boat, which aimed to expand its product offerings beyond audio and enter new categories like smartwatches and gaming accessories. The funding was also used to enhance the company's R&D capabilities, scale manufacturing, and expand distribution channels.

With its sights set on further growth, Boat ventured into the international market, selling its products in countries across Asia, Europe, and the Middle East.

Business Model and Success Factors

Boat’s success lies in its D2C model, which allows the brand to maintain control over its pricing, customer experience, and distribution. By cutting out the middlemen, Boat is able to offer high-quality products at prices significantly lower than premium global brands. The company sells its products primarily through its website and major e-commerce platforms like Amazon, Flipkart, and Myntra, giving it wide reach across the country.

The key factors behind Boat’s success include its deep understanding of Indian consumers, its affordable yet premium-looking products, and its ability to continuously innovate with new features. Moreover, Boat's robust after-sales service has helped it build strong customer loyalty.

4. SUGAR Cosmetics

Sugar Cosmetics is one of India’s most prominent beauty and skincare brands, emerging as a disruptor in the D2C space with its bold, high-quality products tailored for the Indian market. Launched in 2015 by Kaushik Mukherjee and Vineeta Singh, Sugar has become a favorite among millennial women, challenging established beauty brands by offering makeup that suits Indian skin tones and lifestyles. Its growth story is a testament to the power of understanding consumer needs, leveraging digital platforms, and building a brand that resonates with modern women.

The Beginnings

Sugar’s founders, Vineeta Singh and Kaushik Mukherjee, initially ventured into the subscription box business through their company Fab Bag, which offered curated beauty products. However, they soon realized there was a significant gap in the Indian market for high-quality, long-lasting makeup products that were designed specifically for Indian skin tones. With this insight, they decided to launch their own beauty brand—Sugar Cosmetics—focusing on products that would cater to the specific needs of Indian women.

Their first product, a smudge-proof matte lipstick, immediately struck a chord with consumers. The brand’s bold and vibrant packaging, coupled with its commitment to cruelty-free and vegan ingredients, helped it stand out in a crowded market.

Scaling Up

Sugar’s rise was driven by its direct-to-consumer model, which leveraged digital channels like Instagram, YouTube, and influencer marketing. The brand created engaging content that resonated with millennial and Gen Z audiences, showcasing real women using Sugar products in authentic settings. This digital-first strategy allowed Sugar to build a loyal customer base without relying on traditional brick-and-mortar retail models.

Sugar Cosmetics also stood out by offering products that addressed local needs, such as makeup that could withstand the hot, humid Indian climate. This focus on practicality and long-lasting formulations gave Sugar an edge over international brands that weren’t always designed with Indian weather conditions in mind.

Soon the company expanded beyond lipsticks, introducing eyeliners, foundations, and other cosmetics, all while maintaining its distinct branding. The company’s affordable luxury positioning resonated well with consumers looking for premium-quality products at competitive prices.

Funding and Expansion

Sugar’s early success attracted investors, and in 2021, in a significant fundraising Sugar raised $21 million in a Series C round led by Elevation Capital, further accelerating its growth.

While the brand initially operated with a D2C focus, it gradually expanded into offline retail, opening exclusive brand outlets and partnering with major retail chains such as Shoppers Stop and Lifestyle. Today, Sugar products are available in more than 40,000 retail outlets along with 200 of its own branded stores across India, supplementing its thriving online presence.

Business Model and Success Factors

Sugar Cosmetics follows an omnichannel approach, combining its strong digital presence with offline retail stores. This business model has allowed Sugar to reach a wider audience while maintaining its direct relationship with consumers through its online channels. The brand’s emphasis on understanding Indian consumers and creating products tailored to their needs has been a key driver of its success.

Sugar’s innovative use of digital marketing, particularly influencer partnerships, has also played a critical role in its growth. The brand’s vibrant, millennial-focused aesthetic, combined with effective storytelling, has helped Sugar build a loyal customer base. Moreover, its commitment to cruelty-free and vegan products resonates with socially conscious consumers, adding another layer to its appeal.

5. Bewakoof

Bewakoof, one of India’s rising D2C fashion brands, has captured the hearts of young, urban consumers with its quirky and affordable apparel. Founded in 2012 by Prabhkiran Singh and Siddharth Munot, Bewakoof emerged as a brand that challenged conventional fashion by offering fun, relatable designs. The brand’s name, "Bewakoof," meaning "foolish" in Hindi, was an indication of its tongue-in-cheek approach, appealing to the youth with its bold and unconventional brand persona.

The Beginnings

The idea for Bewakoof was conceived while Prabhkiran Singh was pursuing his engineering degree at IIT Bombay. He had initially started a couple of ventures before deciding to enter the apparel industry. Singh noticed a gap in the market for affordable, casual wear with designs that reflected the voice of India’s youth—be it through funny slogans, quirky graphics, or memes. Together with his co-founder, Siddharth Munot, Singh launched Bewakoof with the aim of creating a fashion brand that was fun, youthful, and reflective of contemporary pop culture.

Bewakoof began its journey with simple, bold-printed T-shirts sold directly through its website. The idea was to bypass traditional retail and establish a strong online presence, which allowed the brand to directly interact with customers and keep prices affordable by eliminating middlemen.

Scaling Up

Bewakoof’s strategy of targeting the youth with pop culture-inspired designs resonated well with millennials and Gen Z. The brand’s products were affordable, stylish, and had a unique personality that set them apart from other fast fashion brands. Bewakoof grew quickly, expanding its product line from T-shirts to include sweatshirts, joggers, mobile covers, and accessories.

One of the key drivers of Bewakoof’s early success was its clever use of social media and meme marketing. Bewakoof leveraged platforms like Instagram and Facebook to create a vibrant community of followers, engaging them with humorous posts, relatable memes, and campaigns that reflected everyday situations. This content-first strategy allowed the brand to grow its online presence organically without heavy reliance on traditional advertising.

Funding and Expansion

Bewakoof’s early success attracted investor interest, the company started receiving seed funding after six months of operations. Prabhkiran also raised angel funding via Snapdeal founders, Kunal Bahl and Rohit Bansal, and Former IDFC Securities MD, Nikhil Vora.

With this infusion of capital, Bewakoof was able to scale its operations, enhance its product portfolio, and invest in technology to improve its online shopping experience.

In subsequent years, Bewakoof continued to raise funds from various investors, securing a total of $8.09 million in 2021 in a Series B round led by Investcorp. This allowed the brand to expand its product range to include ethnic wear and collaborate with popular Bollywood films, adding more variety to its catalog while maintaining its youthful and quirky design ethos.

Business Model and Success Factors

Bewakoof’s D2C business model enabled the company to keep its prices competitive while maintaining full control over its branding, customer experience, and product quality. The brand’s approach to using in-house design and manufacturing allowed it to deliver unique products that were not easily available elsewhere, giving it a distinct advantage in the fast-fashion market.

The success of Bewakoof can also be attributed to its deep understanding of its target audience. By constantly tapping into the latest trends in pop culture, internet humor, and youth interests, the brand has been able to remain relevant and keep its audience engaged. The use of meme marketing and collaborations with influencers has further amplified its reach.

6. BlissClub

BlissClub, a rapidly growing Indian activewear brand, has become a prominent name in the direct-to-consumer (D2C) space by catering specifically to women’s fitness needs. Founded by Minu Margeret in 2020, the brand focuses on creating comfortable and functional activewear, empowering women to feel confident and at ease during workouts. What sets BlissClub apart from other fitness brands is its emphasis on building a community-driven, women-centric approach, addressing gaps in the market for size-inclusive, comfortable activewear for Indian women.

The Beginnings

Minu Margeret, an IIM Bangalore graduate and a fitness enthusiast, realized the lack of activewear options tailored for Indian women’s body types. After struggling to find comfortable and functional workout clothes herself, she saw an opportunity to create a brand that would fill this void. Minu’s experience in the startup ecosystem and her personal fitness journey inspired her to establish BlissClub with a mission to provide high-quality activewear that caters to real women’s needs.

BlissClub started with its first product—the “Ultimate Leggings”—a pair of high-performance workout leggings designed to provide comfort, functionality, and style. Unlike many other brands that focused on aesthetics, BlissClub’s leggings were built with features like deep pockets, moisture-wicking fabric, and high-waist designs that supported women during intense physical activities.

Scaling Up

BlissClub’s rapid rise was fueled by its focus on building a community of women who resonated with the brand’s ethos. Margeret positioned BlissClub not just as a product-based company but as a community that celebrates women’s fitness journeys. This community-driven approach was reinforced through social media engagement, fitness challenges, and user-generated content, where customers shared their workout experiences while wearing BlissClub products.

One of the key factors in BlissClub’s growth was its direct engagement with customers, listening to feedback, and continuously improving its products based on user needs. By solving real problems women faced during workouts, such as discomfort or lack of functionality in activewear, the brand earned a loyal customer base.

BlissClub embraced a digital-first strategy, focusing on e-commerce through its website and social media marketing. The brand’s messaging of inclusivity and body positivity attracted a large audience, especially as it provided sizes ranging from XS to 4XL, ensuring that every woman could find the right fit.

Funding and Expansion

BlissClub’s success quickly caught the attention of investors. In 2022, BlissClub raised a significant capital of $15 million in a Series A round led by Eight Roads Ventures, with participation from Elevation Capital and prominent angel investors. This capital injection enabled the brand to further scale its operations, improve product innovation, and invest in marketing and technology to enhance the online shopping experience.

BlissClub’s growth trajectory also included plans to expand its offline presence by exploring retail stores and pop-up shops, allowing customers to experience the brand firsthand. Additionally, the company began focusing on international expansion, eyeing markets outside India.

Business Model and Success Factors

BlissClub operates on a D2C model, selling its products exclusively through its website and social media channels. This allows the brand to maintain complete control over its customer experience, from product design to delivery, ensuring consistency in quality and service. The direct-to-consumer approach also helps BlissClub stay agile, responding quickly to customer feedback and market trends.

The brand’s success can be attributed to its laser focus on solving real pain points in women’s activewear. BlissClub understood that comfort, functionality, and fit were more important than just appearance for women looking for activewear. This user-first mindset has enabled the company to differentiate itself from other fitness apparel brands.

Furthermore, the community-driven marketing strategy has played a crucial role in BlissClub’s growth. By fostering a sense of belonging among its customers, the brand has created a loyal and engaged following. This organic word-of-mouth marketing, combined with influencer collaborations and fitness challenges, has helped BlissClub expand its reach without relying heavily on traditional advertising.

7. Melorra

Melorra is a rising star in the Indian D2C jewelry market, revolutionizing how Indian consumers approach gold and diamond jewelry. Founded in 2015 by Saroja Yeramilli, the brand was built with the mission to offer trendy, lightweight, and affordable jewelry that fits modern lifestyles. With a focus on contemporary design and everyday wearability, Melorra has grown to become a leader in the online jewelry space, catering to the evolving tastes of millennial women.

The Beginnings

Saroja Yeramilli, a veteran in the jewelry industry with over two decades of experience at global brands like Tanishq, realized a gap in the Indian jewelry market—while traditional, heavy gold jewelry dominated the market, there was a growing demand for fashionable, lightweight, and affordable pieces that could be worn every day. The modern Indian woman, balancing work and personal life, needed jewelry that matched her fast-paced, fashion-conscious lifestyle. This insight led Yeramilli to create Melorra, a brand that would offer trendy, minimalistic designs inspired by global fashion trends.

Melorra started as an online-only brand, leveraging its e-commerce platform to sell gold, diamond, and gemstone jewelry directly to consumers. The goal was to break the traditional mold of heavy gold jewelry and offer pieces that are easy to wear, affordable, and designed for daily use, while still holding investment value in gold.

Scaling Up

Melorra’s success can largely be attributed to its unique approach of blending fashion and fine jewelry. The brand introduces new collections every week, with designs that are based on global fashion trends from runways in Paris, Milan, and New York. This constant refresh of collections ensures that Melorra’s customers always have access to the latest trends, a stark departure from traditional jewelry brands that focus on timeless, heavy pieces.

Melorra also invested heavily in digital marketing and social media to connect with its target audience—working women and millennials who prefer lightweight, everyday jewelry over traditional, ornate pieces. By focusing on trendy designs and positioning itself as a modern, fashion-forward brand, Melorra was able to attract a large customer base.

Another critical factor in Melorra’s growth was its focus on trust and transparency. Since buying gold and diamond jewelry online was still a new concept in India, the brand offered 100% BIS hallmarked gold, certified diamonds, and return policy, ensuring customers felt secure in their purchases.

Funding and Expansion

Melorra’s innovative approach and strong customer base helped the company raise multiple rounds of funding. Melorra has so far raised $88.3 million in 14 fundraising rounds backed by investors like Lightbox and ValueQuest.

With this capital, Melorra expanded its product line to include more collections and increased its marketing efforts. The brand also began eyeing international markets, setting its sights on becoming a global player in the lightweight jewelry space.

Business Model and Success Factors

Melorra’s D2C business model is centered around providing trendy, affordable, and accessible jewelry directly to consumers through its website and app. This online-first strategy allowed the brand to avoid the overhead costs of physical stores and pass on the savings to customers, making fine jewelry more affordable. The company's fast-fashion approach to jewelry, where designs change frequently and cater to the latest fashion trends, sets it apart in a market dominated by traditional, conservative designs.

A key element of Melorra’s success has been its strong emphasis on technology. The brand uses data analytics to track fashion trends, customer preferences, and buying behavior, which helps it develop new collections that are aligned with current trends. This data-driven approach allows Melorra to be agile, offering new designs quickly and keeping its customers engaged with fresh options.

Melorra has also expanded its reach by offering gold and diamond jewelry in EMI (Equated Monthly Installment) plans, making fine jewelry purchases more accessible to middle-income consumers.

Successful Exits in D2C Brands in India

• FirstCry: The baby products retailer achieved a significant exit by selling a major stake to SoftBank, which fueled its growth into becoming a global player. It conducted IPO in Aug 2024.

• Nykaa: Nykaa went public in 2021 with a highly successful IPO, making its founder Falguni Nayar one of India’s richest self-made women. The IPO provided lucrative exits for its early investors.

• Mamaearth: Known for its natural personal care products, Mamaearth went public in 2023, providing its early investors like Sofina, Kunal Bhal and Fireside Ventures Fund with significant returns.

• Boat: The electronic lifestyle brand achieved a major exit when Warburg Pincus acquired a stake by investing $100 million in the company, valuing BoAt at over $300 million.

• Beardo: Beardo saw a successful exit when Marico acquired a 45 percent stake in the men's grooming brand in 2017 and the remaining 55 percent in 2020, which allowed it to scale operations significantly under Marico’s leadership.

• Zivame: Zivame had a successful exit when Reliance acquired a 96 percent stake in the company in 2020, helping it scale further under the conglomerate's umbrella.

Navigating the Future: Key Trends Shaping the Wave of D2C Brands in India

Looking ahead, the future of direct-to-consumer (D2C) brands in India appears promising, shaped by several key trends and shifts in consumer behavior. Here’s what lies ahead for D2C brands in India:

1. Increased Omnichannel Presence: As consumers continue to seek seamless shopping experiences, D2C brands are expected to adopt omnichannel strategies. This involves integrating online and offline channels to enhance customer experience. Brands like Lenskart and Mamaearth are already exploring physical retail spaces to complement their online presence.

2. Personalization and Consumer Engagement: The demand for personalized shopping experiences will drive D2C brands to leverage data analytics and AI. By understanding customer preferences and behavior, brands can tailor their offerings and marketing strategies to foster stronger connections with consumers.

3. Sustainability and Ethical Practices: With rising consumer awareness about sustainability, D2C brands are increasingly focusing on ethical sourcing, eco-friendly packaging, and sustainable production practices. This trend will likely continue, as brands that prioritize environmental responsibility may gain a competitive edge.

4. Leveraging Technology: The integration of advanced technologies such as augmented reality (AR) and virtual reality (VR) will become more prominent in the D2C landscape. These technologies can enhance product visualization, especially in categories like fashion and beauty, allowing customers to try products virtually before purchase.

5. Expansion into Tier 2 and 3 Cities: As internet penetration increases in smaller cities, D2C brands are expected to target these emerging markets. This demographic shift will provide significant growth opportunities, allowing brands to tap into previously underserved consumer bases.

6. Focus on Customer Loyalty: Building brand loyalty will be crucial as competition intensifies. D2C brands are likely to invest in loyalty programs and community-building initiatives to retain customers and encourage repeat purchases.

These trends indicate that D2C brands in India are poised for significant growth and innovation in the coming years. As they navigate these changes, the ability to adapt to evolving consumer needs will be key to their success in the ever-competitive market landscape.

In conclusion, India's D2C brands are not just transforming the retail landscape but are also setting new standards for customer engagement, innovation, and sustainability. With their direct connection to consumers and agility in adapting to market trends, these brands are well-positioned to thrive amidst growing competition.

With a keen focus on innovation and adaptability, India’s D2C brands are well-positioned to capitalize on the evolving consumer landscape and drive further growth across diverse sectors.