D2C funding shifts to early stage as exits widen for India’s consumer brands

Seed and early-stage funding accounted for 70 per cent of total funding value in 2025

India’s direct-to-consumer (D2C) companies raised about $6 billion across nearly 2,000 funding rounds between 2021 and 2026 YTD, with deal activity remaining relatively steady even as funding values fluctuated, according to a Tracxn report.The sector recorded between 307 and 380 funding rounds every full year during the period. Funding peaked at $1.6 billion in 2022 before declining to $824 million in 2024. It recovered 9 per cent in 2025 to $898 million, with the recovery being driven largely by seed and early-stage capital.Seed and early-stage funding accounted for 70 per cent of total funding value in 2025, compared with 38 per cent in 2021. In contrast, late-stage funding fell 69 per cent in value between 2022 and 2025, although the number of late-stage rounds returned to 15 in 2025, the same level recorded in 2021.Widening MarketThe report also points to a widening exit market for D2C companies, with 15 IPOs and 105 acquisitions recorded between 2021 and 2026 YTD.Among the sector’s most funded companies, Lenskart, Licious, FreshToHome, BlueStone and Country Delight have collectively raised $2.3 billion. Lenskart alone accounts for about 43 per cent of this funding, having raised $981 million before listing in November 2025.The IPO market has also opened up to companies with very different funding histories. Credo Brands, which owns Mufti, listed in 2023 after operating for more than two decades without institutional funding. In contrast, Lenskart went public after raising nearly $1 billion from institutional investors.AcquisitionsEstablished consumer companies are also emerging as key buyers of D2C brands. The report recorded acquisitions by Hindustan Unilever, Wipro Consumer Care, Reliance Retail, TMRW and USV India. HUL’s $350 million acquisition of skincare brand Minimalist in January 2025 was the largest disclosed transaction among the report’s notable deals.The acquisition activity indicates that strategic buyers are increasingly becoming an exit route for digital-first consumer brands, alongside public markets.Published on August 26, 2026