Gettin' over the Permacrisis 🚨
Comfort Tech Offerings, Mama's growth, Mythological art and CCPA strikes again!
Hello! 👋
D2C Pulse is a newsletter written by the team at GlobalBees, curating happenings in the direct-to-consumer ecosystem of India.
As nations across the globe face a plethora of ongoing crises, the Collins English Dictionary revealed its 2022 word of the year to be "permacrisis," an extended period of instability and insecurity, especially one resulting from a series of catastrophic events.
For our e-comm buddies, it’s like the all-time high PPC in a category with big sellers’ predatory pricing steamrolling the smaller players and manufacturers not supplying on time! What a nightmare…
What’s sizzling hot? 🔥
Rise & Shine 🌞
A stalwart of ‘ComfortTech”, The Sleep Company raised Rs. 177 crore in a funding round from Premji Invest Opportunity Fund, Fireside Ventures & Ors.
With 3 exclusive brand outlets already, the company plans to use the funding to further strengthen its offline and international expansion at the back of its patented smart-grid technology. If you don’t know what that means, watch this mini explainer by the Jakhaaaaaas superstar.
The brand has recently forayed into other ‘comfort-focused’ categories like recliner beds and chairs. The brand competes with D2C brands viz. Wakefit, Sleepy Cat, Sleepyhead, Duroflex and SleepX. These brands have revolutionized the Mattress industry the way Lenskart did with Spectacles!
Yo Mama so big 👩🍼
A year-old Unicorn, Mamaearth has continued its momentum in terms of scale and neared the Rs 950 crore mark in FY22 from Rs 460 crore in FY21. The cash flow from operations remained positive at Rs 44.6 crore.
The brand splurges on marketing making it the largest cost center with 41.5% of total costs. Its growth story is expected to stay strong in the ongoing fiscal year as the company aims to raise $300 million via an IPO sometime in 2023, as per Entrackr report. Its parent company Honasa, is a house of D2C brands with brands like The Derma Co, Aqualogica, Ayuga, BBLUNT & Dr. Sheths.
🗞️Marketplace Updates
🍕Foodtech Unicorn Rebel Foods, operating 45 cloud kitchens including Faasos, Behrouz Biryani, The Good Bowl, Sweet Truth, and Mandarin Oak, among others, has raised $12.5 Mn (INR 100 Cr) in a debt funding round from InnoVen Capital and Trifecta Capital, to be able to add more food categories on its plate.
🐖 The meat supply chain platform The Meat Chop has raised Rs. 7 crores in seed funding. It enables local butcher shops to compete with large retail chains by procuring, marketing, and merchandising for the local butcher stores, using data-driven and technology-backed systems.
🆓Coupons and cashback platform, CashKaro has raised Rs 130 crore in a funding round led by Affle Global Pte. Ltd (AGPL).
❎Amazon plans to delist large seller Appario Retail, in which it maintains a stake, from the marketplace. This comes a year after ending ties with (Cloudtail)
🌶️In an attempt to modernize the MDH business model, Spice Story, a D2C spices brand has partnered with Jayanti Herbs and Spice for its offline expansion. At present, Spice Story operates largely through an online network and 1200 stores in the physical space; With this partnership, it will leverage Jayanti Herbs & Spice’s 23,000-strong distribution channel.
💄Cosmetics and beauty products maker Lotus Herbals has acquired a 20% stake in D2C nutraceuticals and health supplement startup Yogic Secrets Healthcare. Other D2C investments for Lotus Herbals include Conscious Chemist, Fixderma, Soultree.
💰CCPA fines Cloudtail with Rs 1 Lakh for selling pressure cookers not complying with BIS standards. The company has also been asked for the price reimbursement of 1,033 cookers to the consumers. CCPA also issued notices to sellers on other platforms including Amazon, Flipkart, Paytm Mall, and Snapdeal.
Earlier this year Myntra got master distribution rights for women's fashion brand Bebe in India. Myntra is launching a campaign for Bebe, urging women to experiment with their fashion choices. Check it out here!
📢Leader Speak
Get the latest on what D2C Founders and Leaders had to say this week!
“What we’ve decided as a company is that in the next one to two years, we will make sure that these big investments we make see a lot of customer adoption and then we will go to the next set of M&As.” - Kalyan Krishnamurthy, CEO Flipkart
“If you are an early-stage company, focus on getting to unquestionable, extraordinary product market fit. If you don’t know what it means, please find a mentor who can help you determine that. Late-stage companies should make sure you build a very powerful economic engine,” - Rajan Anandan, Managing Director at Sequoia Capital
❤️Brands of the Week
These 2 home decor brands are trying to bridge the gap between traditional and contemporary by making them relevant to today's context. Kalakaari Haath and No-Mad 97% India are focusing on giving traditional handcrafted art space in your home with designs such as printed floral, mythological, traditional and vinyl decals. They offer wallpapers, fabrics, wall decals, wall art sets and more!
Reads and Recommendations 📚
You are horribly wrong in studying your market if you are doing this…
Shark Tank’s new promo is awesome
☕What's Common to Coffee, Tea and Rasam?
They're all enjoyed hot! Check out the awesome Insulated Coffee Mugs, Bamboo Towels, Cast Iron and Non-Stick Cookware, Silicon Spatulas and other products from The Better Home.
Exclusive Offer for all D2C Pulse Readers
An additional 35% off on all products listed on this link https://amzn.to/3Nvmc2i. Use Code: BETTER35. Offer valid till November 15th
That’s all for this week! Bye!
