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AI Artwork, Great Resignation Fraud & RBI Raps

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Dec 20, 2022

D2C Pulse is a newsletter written by the team at GlobalBees, curating happenings in the direct-to-consumer ecosystem of India.

So it's settled. Messi is the G.O.A.T. and we missed publishing the newsletter courtesy the greatest final ever. Meanwhile, the D2C ecosystem got into a frenzy in the past couple of weeks with HUL getting in on the action, multiple fundings and RBI’s diktats to some ecom enablers Let’s dive right in.

🗞️Marketplace Updates

Myntra recorded 1.3 lakh first-time shoppers from non-metros on the first day of its flagship End of Reason Sale (EORS). Day 1 of the 7-day event witnessed 75 per cent growth in demand for sports shoes, over EORS-15 held last December and a whopping 800% spike in demand for smartwatches over BAU days.
Amazon is bullish about its wholesale B2B marketplace in India. Amazon Business saw around 50% jump in its customer base and over a 100 per cent growth in orders. It registered 200% jump in sales over the last year along with a two-fold growth in customers placing bulk orders.
- According to Redseer Strategy Consultants, India’s b2b e-commerce market, led by players like Udaan, Jiomart and Amazon Business, will reach $90-100 billion in gross merchandise value by 2030.
Govt. is wooing Amazon and Flipkart to join ONDC. DPIIT secretary Anurag Jain said,” We have initiated conversations with all of them and initial indications are that they will join. The conversations with the top four are in various stages, and by and large they seem interested”. Since September, multiple other buyers, seller and logistics applications have gone live, with ITC, Meesho, Grab, Delhivery, Shiprocket and others, and over 70 participants are in advanced stages of integration.
On the D2C enablers front…
- RBI asks Razorpay, Cashfree to pause onboarding of new customers. The embargo will be in effect only until the three companies submit an audit report to the RBI showing they have complied with its rules and regulations for the payment aggregator/payment gateway (PA/PG) licences.
- Wix decides to ramp up in India and has appointed Vargab Bakshi as India’s country head in a bid to capture a bigger market share in the country. Currently, India accounts for about 6.5% of the company’s global user base.

🍕D2C Bites

Big Daddy HUL acquired majority stake in OZiva and 19.8% in Wellbeing Nutrition, making an entry into the health and wellness market in India.
- OZiva was launched in 2016 and has annual revenue run rate of over Rs 100 crore. It is a leading plant-based consumer wellness brand with products across lifestyle protein, hair and beauty supplements and women’s health.
- Wellbeing Nutrition was launched in 2019 and has annual revenue run rate of over Rs 50 crore. Its product range includes Marine Collagen powder focused on need spaces such as beauty, everyday health, gut health and sleep.
FMCG companies have been courting D2C brands in recent months. Marico has acquired over 50% stake in D2C brands like Just Herbs, True Elements, ITC has made investments into ayurvedic and natural personal care startup Mother Sparsh. No more swimming in your own lane.
- Then there’s Dabur foray into feminine personal hygiene market with the launch of Fem ultra care sanitary. This e-commerce exclusive launch is being launched on Flipkart.
Fashion platform Virgio has raised $10 million or Rs 81.5 crore in an extension of its Series A round from Prosus Ventures. Founded by former Myntra chief executive Amar Nagaram in February 2022, Virgio will connect designers and manufacturers to create a fashion ecosystem. The business aims to provide fast-paced fashion trends for Gen Z and new-age shoppers.
Ahmedabad-based makeup brand Renee Cosmetics has raised $25 million in Series B funding round. The funding will enhance RENEE’s Indian and international growth by allowing the company to develop more products, marketing initiatives, and grow its team. RENÉE has already proven to be one of the fastest beauty brands to breach Rs 100 crore ARR mark.
Deepika Padukone’s D2C Startup 82°E Raises $7.5 Mn Funding to launch new products. The personal care startup has launched two products so far and plans to launch more in the future. On the trivia front here’s a bit more about 82°E

📢Leader Speak

Get the latest on what D2C Founders and Leaders had to say this week!

“Great resignation was a fraud; not sure about a great layoff trend either! Digitisation super cycle just started”- Manish Sabharwal, Vice-Chairman, Teamlease.

“I think it is an important moment in time. India will also be a big export economy. It will benefit from an open and connected internet and getting that balance right will be important," - Sundar Pichai, CEO, Google