D2C's easy growth is raising the bar for startup funding
New Delhi, Aug. 20 -- India's direct-to-consumer (D2C) ecosystem is maturing-and investors are raising the revenue thresholds they expect from brands seeking funding.
The shift is visible from the seed stage through later funding rounds and is partly a consequence of how easy it has become to launch a brand and scale its reach across multiple channels, including e-commerce and quick commerce.
At the seed stage, investors are increasingly looking for Rs.2-3 crore in annual revenue, up from roughly Rs.1 crore earlier, according to industry experts. At Series A and beyond, the revenue bar has also moved higher, with investors increasingly wary of companies unless the growth and economics justify the next round.
The paradox is that easier ...
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