Could India become the fastest growing D2C market in the world?

Hey there, shopaholics and trendsetters!

We took you into the stratospheric heights of outer space and brought you back to Earth in our past editions.

🛍️ This week, we’ve got you insights by the cartful! We're unravelling the colourful tapestry of India's D2C scene, where innovation meets consumer cravings in the most unexpected ways.

💡 The Indian D2C Dynamo

India's D2C market is on a rocket-fueled trajectory, slated to hit a whopping USD 100 billion by 2025, with a staggering 40% annual growth rate. With over 800 million internet users and a skyrocketing 60% population engaged in online shopping, the stage is set for an e-commerce explosion! And while it may not yet be the fastest growing D2C market in the world yet, it does have the world sitting up and paying attention.

So buckle up as we delve into the hottest trends, impressive statistics and of course, the captivating stories of some standout Indian D2C startups that are making waves across various sectors.

🛒 ONDC adds 5 million retail orders to its cart

In India, more than 12 million sellers earn their livelihood by selling or reselling products and services. However, only 15,000 of these sellers (0.125% of the total) have enabled e-commerce. E‑retail has been out of reach for the majority of sellers, especially from small towns and rural areas.

Enter ONDC, the game-changer! 

With a mission to democratise e-commerce for every seller, big or small, they're not just hitting peaks, they're summiting Mount Retail with 5 million retail-category orders in May 2023 alone.

And guess what? Unicorns like EaseMyTrip.com, OfBusiness, Zerodha, PW (PhysicsWallah), and more are hopping on board faster than you can say "shop till you drop"!

These unicorns will explore groundbreaking use-cases for their products and platforms on Open Network For Digital Commerce (ONDC). Plus, over 125 other startup ecosystem stakeholders have also joined this revolutionary digital commerce network!

🦈 Survivors of the Shark Tank

Of course we can’t talk about the D2C landscape without a deep dive into the brands that swam with the sharks and surfaced with a great deal. Here are a few:

👕 BEWAKOOF® - Founded in 2012 by Prabhkiran Singh and Siddharth Munot, Bewakoof is the kingpin of quirky prints and jaw-dropping collabs with Marvel and Disney. With over 10 million app downloads, 1 million monthly active users, and a revenue of INR 200 crore in FY 2021-22, they're swimming laps around the competition. 

💇 HairOriginals - Founded by Jitendra Sharma, Piyush Wadhwani, and Ashish Tiwari, HairOriginals dives deep into the world of wigs and hair extensions sourced from real human hair, straight from South Indian temples. With a cool INR 60 lakhs from sharks Ashneer Grover, Anupam Mittal, and Peyush Bansal, they're riding the waves of global demand for premium locks. 

🎧 Hammer Lifestyle - Rohit Nandwani's Hammer Lifestyle scored a sweet deal, reeling in INR 1 crore for a 40% stake from Aman Gupta. Their TWS audio gadgets and smartwatches are making waves, aiming to flood the market and dominate with a diverse product lineup. 

🧼 Koparo - Simran Khara 's Koparo is cleaning up with natural and sustainable home care products. With INR 70 lakhs from Aman Gupta and Vineeta Singh, they're scrubbing away at expanding their distribution and making sure every home is squeaky clean, projecting a revenue surge from INR 5 crore to INR 12 crore this fiscal year. 

🌱 Wakao Foods - Sairaj Gaurish Dhond's Wakao Foods is on a vegan voyage, backed by INR 75 lakhs from Vineeta Singh, Namita Thapar, and Ghazal Alagh. Their jackfruit meat alternatives are set to plant a flag in sustainable dietary choices, aiming to grow big and green. 

🧴 CosIQ - Kanika Talwar and Angad Talwar 's CosIQ is the brainiac of skincare, scoring INR 50 lakhs on Shark Tank India to revolutionise skincare with smarts. They're cooking up innovations to pamper Indian skin with intelligence, making sure every face feels like a million bucks. 

🍪 The Cinnamon Kitchen - Founded by Priyasha Saluja, The Cinnamon Kitchen is stirring up a storm with 100% gluten-free and plant-based goodies. With a generous ₹60 lakhs from Shark Aman Gupta, they're baking up a health-conscious frenzy, offering treats that tickle taste buds and conscience alike. 

🌿 Mintree Cosmetics Pvt. Ltd. - Kanikka Dewanii's Mintree is the green guardian of personal care, dishing out vegan, organic, and chemical-free goodness. With a splash of INR 90 lakhs from sharks Anupam Mittal and Ritesh Agarwal, they're spreading the gospel of guilt-free grooming, ensuring every body feels naturally fabulous. 

🏡 The Honest Home Company - Mayank Sisodia's The Honest Home Company is the eco-warrior of the household, backed by a hefty INR 1 crore investment from Shark Amit Jain. Their eco-friendly products are rewriting the rules of home care, making sustainability the new standard for conscientious consumers everywhere.

💡Tips to make a big splash on Shark Tank

Diving into the Shark Tank? Here's a distilled guide to making a splash, straight from the jaws of the sharks themselves:

1. Sharpen Your Pitch: Make it sharper than a chef's knife on MasterChef. Your pitch should be so refined, it could cut through steel.

2. Show, Don't Just Tell: Think less PowerPoint, more show-and-tell. Show them the product, let them touch it, taste it, smell it if it's edible (just make sure it's not fishy!).

3. Crunch Those Numbers: Sharks love numbers more than accountants love spreadsheets. Be armed with figures that scream success louder than a Bollywood blockbuster.

4. Don't Be a Fish Out of Water: Fumbling will sink your ship faster than a Titanic sequel. Know your business inside-out, upside-down, and in every dimension possible.

5. Haggle Harder Than a Fish Market Vendor: Channel your inner negotiator and haggle harder than your grandma at a street bazaar. The sharks smell blood in the water, so don't let them take a bite out of your deal.

6. Let Your Humanity Shine: Sharks may be apex predators, but they've got hearts too (we think). Show them the human side of your business, and you might just hook them like a big fish on a line.

7. Prepare for Battle: It's a shark-eat-shark world in the Tank. Prepare to attack with your pitch and defend your turf like a warrior in the Colosseum.

So, if you're ready to swim with the big fish, follow these tips and you might just emerge from the Shark Tank with a deal that's bigger than Moby Dick.

👀 Emerging D2C challenger brands we have our eyes on 

Keeping up with the Indian D2C revolution, these brands are like the Bollywood blockbusters of commerce, stealing the limelight from established mainstream brands with their swag and style:

MyMuse India: the brand in business of pleasure

Making moves faster than a Bollywood dance number, MyMuse's revenue growth in FY23 hit the charts at a jaw-dropping 6.6x! 

82°E: The eco-warrior of beauty D2C

Co-founded by Deepika Padukone and Jigar K Shah , 82°E is the eco-friendly superhero of D2C, leading the charge with sustainable products.

Hopscotch: Turning doorsteps into catwalks

Hopscotch is the fashion fairy godmother you never knew you needed with a collection curated straight out of a fashionista's dreams at prices that won't give you nightmares.

The Souled Store: If pop culture had a wardrobe

The Souled Store is a pop culture paradise with funky tees and quirky accessories, making fandom fun and fashionable.

Beco: The sustainability warrior we all need

Beco is the eco-warrior of packaging, building a community dedicated to saving the planet one green package at a time.

Bombay Hemp Company Private Limited: Reinventing Cannabis from farm to future

Caught between cannabis’ medicinal and contraband narratives, Avnish Pandya, Chirag Tekchandaney , Delzaad Deolaliwala , Jahan Peston Jamas, Sumit Shah, and Yash Kotak came together to make cannabis cool again. They state that they "can make apparel, beauty products, building material, and much more” out of the most misunderstood product.

GIVA : A jewel of an economical brand

GIVA has redefined fine jewellery with budget-friendly pieces (INR 1,000 - INR 20,000), driving 90% of revenue online. With 100% FY22 growth and 1.2M customers, it operates 40+ outlets and plans 100 more by FY24, aiming to enhance jewellery accessibility.

mCaffeine: The espresso shot to skincare

mCaffeine's caffeinated products are the shot of energy your skin craves. With a brand identity stronger than a cup of filter coffee and a fanbase as loyal as SRK's, they're the buzz in every skincare routine. 

Noise: Making sound waves in the tech scene

Noise is the DJ of tech with sleek smartwatches and wireless earphones that make everyone dance to their tune.

Dogsee Chew:  A paws-itively delicious treat

This Bengaluru-based pet food startup Founded by Bhupendra Khanal and Sneh Sharma, has secured $67.29 million in funding, becoming India's fourth-largest pet food exporter, operating in over 30 countries worldwide.

Jimmy’s Cocktails: Shaking up the scene 

Founded in 2019 by Ankur Bhatia and Nitin Bhardwaj, Jimmy’s Cocktails offers premium cocktail mixers and barware, backed by $4.81 million in funding 

Neeman's: The shoe brand treading lightly on the planet

Neeman’s revolutionises the shoe industry with eco-friendly materials, minimising environmental impact while staying stylish.

Sweet Karam Coffee: Savour the south

Sweet Karam Coffee, founded by Anand Bharadwaj, Nalini Parthiban , Srivatsan Sundararaman, and Veera Raghavan, offers preservative-free South Indian sweets, snacks, and filter coffee, reaching customers worldwide through its online platform. 

10 Game-Changing Trends Defining the D2C Landscape of 2024:

1. AI Unleashed: Anticipating Needs, Crafting Desires 

2. Omnichannel Mastery: Crafting a Symphony of Shopping 

3. Sustainability Beyond Talk: A Pledge to the Planet 

4. Social Commerce: Communities, Not Just Platforms 

5. ONDC Revolution: Government-Backed Disruption 

6. Instant Support: Brands at Your Beck and Call 

7. Payment Flexibility: Empowering Every Purchase 

8. One-Click Wonder: Simplifying the Shopping Spree 

9. Return Revolution: Crushing RTO Challenges 

10. Chatbot Efficiency: Digitally Empowered Assistance

🌟 The Indian D2C startup ecosystem is vibrant and growing, driven by innovative entrepreneurs who understand the pulse of modern consumers. As these brands continue to evolve and expand, they are poised to redefine the future of retail in India.

That’s a wrap. 

Happy weekending folks!

Stay tuned for more insights and updates on the exciting world of Indian startups! 💬📰

Writers: Ryan Frantz, Reeta Jose

Edited by: Surya Kannoth