Roti, Kapda, Makaan aur Dukaan đ
All things noteworthy in the D2C space
Heyđ
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The festive season is around the corner and fireworks seem to already be going off in the D2C worldâs biggest behemoth. Amazon is making clear its chagrin with 600 Chinese brands who have been permanently banned from its platform for violating Amazonâs policies around review abuse. Never a dull moment at Amazon!
Speaking of conglomerates, letâs start with news from the wannabe conglomerates of the D2C worldâŚ
Whatâs in the news?
đ§ Indian Thrasios have started scouting already!
Indian Thrasios have been ravenously scouting profitable D2C brands to acquire, like paparazzis waiting to pap celebrities. Up until now these Thrasios have been in the news for grabbing sizable funding, but now we are finally seeing some action on the acquisition front. 10Club, one such Thrasio-style startup in India has made its first acquisition with D2C brand My Newborn that sells baby care products. We covered the trending USD 26.35 bn Indian baby care products market in our previous newsletter. Do check it out!
Acquisition announcements from other roll-up companies include GlobalBeesâs acquisition of The Better Home, a sustainable homecare brand and Evenflowâs acquisition of BabyPro, a baby-proofing business. Rumour has it these companies have 10-15 more acquisitions in the pipeline but they are keeping their lips sealed until the deal is sealed! Stay tuned for more updates.
đ Design Cafeâs decor gets swankier
Most people these days buy everything online, ranging from a hot cup of coffee, right to the table to keep it on! This is a good news for the USD 20 bn unorganised home decor market in India which can expect entry of new age companies and VC monies.
Bengaluru-based Design Cafe was a traditional home design company until 2015. Eager to join the e-commerce bandwagon, it pivoted to a vertically integrated online platform soon after. Design Cafe creates custom design homes for its customers within a budget in a time span of less than 100 days, with its end-to-end design to delivery model. They have now raised USD 25 mn from Sixth Sense Ventures to increase their pan India presence. Assam based home decor company KraftInn also recently raised an undisclosed amount from NEDFi Venture Capital Ltd. KraftInn differentiates itself by creating sustainable decor items using materials like bamboo, water hyacinth & cane.
With close to 40 deals, a total amount of USD 409.8 mn has been raised in this sector in the last 5 years, including MS Dhoni-backed Homelane, Pepperfry and Urban Ladder.
đ˝ď¸ A quick opportunity for food based D2C brands!
As the pandemic restrictions ease, food lovers are thronging to restaurants once again. Two of the most popular Asian cuisine chains in India, Wow Momo Foods and Auntieâs Fung were generously served up funds last week to fuel their retail presence. Itâs time food based D2C brands get a retail presence.
Imagine if you could you could enjoy a warm croissant with The Butternut Companyâs hazelnut spread in a restaurant, or Nutty Gritties snacks while enjoying a pint of beer in your favourite club! And while we salivate at the thought, many brands have already jumped on this opportunity to gain more visibility and cater to a wider audience - Blue Tokaiâs cafe, Gooddotâs quick-service restaurants. One more such brand is Hatti Kaapi that recently got funding of INR 10 cr. to expand its retail coffee outlet presence.
đ E-Commerce platforms are gearing up for the festive season!
As per a recent Redseer report, e-comm platforms are expected to clock over USD 9 bn during the festive season this year. Furthermore, nearly 80% of the sellers surveyed believe that festive sales will play a key role in the recovery from pandemic losses. Major e-comm players are all set for the rush of traffic and purchases ahead of the season sales:
Flipkart-owned Myntra has received fresh capital infusion of INR 492 Cr from its parent.Â
Amazon has infused INR 450 Cr into Amazon Pay India, its payments arm.
Flipkart launches 'Flipkart Xtra' for faster delivery of shipments to consumers across India.
Brands that caught our eye!
đ Travel the world with Mokobara
Trendy suitcases and sleek briefcases - Mokobara backed by Sauce.vc, is making hauling travel luggage super easy and extremely stylish. Founded in 2020, this startup designs utility-driven personalised travel bags with that oomph factor for the folks who like #GoingPlaces and #OOTD. These ergonomically designed bags are perfect for the modern traveller!Â
𧾠Unbutton new fashion with Button Masala
With an objective to make fashion eco-friendly and fabulous, Anuj Sharma, an Ahmedabad-based designer has introduced a very unique form of sustainable clothing. Button Masala uses only buttons and rubber bands to re-purpose the clothes. According to the startup, the method is one of the fastest, cheapest, and most sustainable ways of producing fabrics. Their aim is to minimise waste and build eco-friendly fashion.
Trend of the week: Say Hey to Healthy!đ
A 2019 report by Research & Markets says that 45% of Indians born between 1982 and 2000 aspire to a healthy lifestyle, use fitness apps on their phones and are willing to pay a premium for good health. Healthy foods market in India is forecasted to reach nearly USD 8.5 bn by 2023.
India is already home to many startups which satiate hunger pangs with healthy and organic food!đ
Reads & Recommendations
Shein: The TikTok of e-commerce. Check out the podcast here.
Understand the tools used by major D2C players here.
Lastly, check out an awesome ad campaigns.
Thatâs all for this week!
Stay tuned for more insights about the D2C start-ups in India. Do share your feedback.
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