India's insurgent brands generate over $7.5 billion revenue in FY25: Report
New Delhi, June 24
India's insurgent consumer brands collectively generated more than $7.5 billion in revenue in FY25 and have grown 3.75 times over five years, outpacing the market by 3.3 times, a report said on Wednesday.
The report from Bain & Company and DSG Consumer Partners said insurgent consumer brands have evolved from niche challengers into a significant force within India's consumer landscape, increasingly reshaping multiple consumer categories by identifying underserved needs.
The firms analysed over 240 insurgent brands founded after 2007 that raised at least $3 million and found jewellery insurgents grew roughly 10.6 times versus market averages and beauty and personal care about 4.3 times.
"Indian insurgent brands have fundamentally changed how consumer categories are built and scaled in India. They are winning by focusing on emerging or latent consumer needs, building mastery in media and channel deployment, and high velocity innovation," said Rohit Shankar, Partner, Bain & Company.
Opportunity for insurgency exists across consumer categories, with disruption occurring at different rates across sectors. Insurgent brands have continued to materially outpace incumbents over the last five years.
Over the last five years, jewellery insurgents have grown nearly 6.5-fold, followed by beauty and personal care at 6-fold, and home & kitchen as well as electric wearables and devices at 4.5-5 times.
Digital commerce and quick commerce became an important enabler for the next generation of consumer insurgents, Rohit added.
Nearly 45 per cent of insurgent brands are headquartered outside India's top three metros, and while many founders have strong educational credentials, only a small proportion come from traditional top institutions.
The report found that over 50 per cent of the best-selling products on a leading e-commerce platform from the personal care and snacking segment were launched within the last five years.
Less than 1 per cent of consumer companies founded since 2008 have crossed INR 100 crore in revenue. Only 22 per cent of insurgent brands with greater than Rs 100 crore revenue have crossed 500 crores, indicating that sustained breakout growth remains difficult.
— IANS
Reader Comments
Great numbers but let's be practical - 45% brands outside top 3 metros is good, but only 22% cross Rs 500 crore. That's a harsh reality check. Many of these brands are riding on quick commerce hype, but sustaining growth is tough when big players start noticing. Hope the government supports these innovators with better policies instead of just celebrating reports.
As a small business owner in Indore, this gives me hope! 😊 We started a home decor brand in 2019 and saw how digital commerce opened doors. But the report is right - crossing Rs 100 crore is like climbing Everest. The real story here is how these brands identified 'underserved needs' - that's pure Indian jugaad with professional strategy. Proud moment!
Bain's report confirms what I see in my Bengaluru startup ecosystem - these insurgent brands are not just about fancy packaging. They're solving real problems. Notice how many are in jewellery and BPC? They tapped into women-led demand and traditional preferences with modern tech. But scaling from Rs 100 to Rs 500 crore needs more than just e-commerce - it needs supply chain mastery.
I love this trend! 💕 My monthly shopping has completely shifted - from Mamaearth to The Whole Truth Foods, these brands actually listen to Indian consumers. The report saying 'digital and quick commerce enabled growth' is spot on. But please, brands, focus on quality not just hype. We've seen many fizzle out after initial buzz. Consistency is key!
Impressive growth story!
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