India ranked 2nd globally in direct-to-consumer sector funding in 2024: Report

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 $99.8 million.

Together, Bengaluru and Gurugram accounted for more than half of all funds raised in the sector, as per the report.

To support the D2C ecosystem, the Indian government has introduced several initiatives like Digital India, Startup India, and the Open Network for Digital Commerce (ONDC).

Other efforts such as the Export Promotion Mission, Government e-Marketplace (GeM), and the Green Credit Programme are helping D2C brands grow globally and adopt sustainable practices.