India’s D2C Sector Raised USD 6B Since 2021: Tracxn Report
Tracxn report: India’s D2C sector raised USD 6B since 2021, with 15 IPOs and 105 acquisitions reshaping the exit landscape.
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Market intelligence platform Tracxn has released a report on India’s direct-to-consumer sector, tracking approximately USD 6 billion in equity funding across nearly 2,000 rounds between January 2021 and August 2026, alongside 15 IPOs and 105 acquisitions.
Annual funding peaked at USD 1.6 billion in 2022, fell to USD 824 million by 2024, and recovered to USD 898 million in 2025, up 9% year-on-year. Deal-making pace stayed consistent throughout, with every year recording between 307 and 380 rounds; 2024 posted the highest round count even as funding value hit its lowest point.
Seed and early-stage capital accounted for 70% of 2025’s funding value, up from 38% in 2021, with early-stage funding rising 66% from its 2023 trough. Late-stage funding value fell 69% between 2022 and 2025, though its round count returned to 2021 levels.
Five companies – Lenskart, Licious, FreshToHome, BlueStone, and Country Delight — lead India’s D2C funding table, together holding USD 2.3 billion raised over their lifetimes. They span eyewear, meat and seafood, jewellery, and dairy. Lenskart’s USD 981 million accounts for about 43% of the group’s total; Lenskart and Licious together hold roughly 65%. Lenskart and BlueStone have listed publicly, while Licious has said it plans to reach profitability ahead of an IPO targeted for 2027–28.
Among the five most notable D2C IPOs, institutional backing varied widely. Lenskart listed in November 2025 after raising USD 981 million from investors including SoftBank Vision Fund, Temasek, KKR, and ADIA. Credo Brands, owner of menswear brand Mufti and operating since 1998, went public in December 2023 without any institutional funding, taking 25 years to reach listing.
The four funded companies among the five reached IPO in 7 to 17 years, with Honasa Consumer’s USD 126 million raise behind the fastest path.
All five of the most notable D2C acquisitions were made by established consumer conglomerates rather than financial investors, including Hindustan Unilever, Wipro Consumer Care, Reliance Retail, Aditya Birla Group’s TMRW, and USV India. Hindustan Unilever’s USD 350 million acquisition of skincare brand Minimalist in January 2025 is the largest disclosed deal among them. With Wipro Consumer Care and USV India completing acquisitions in the first half of 2026, conglomerate acquisitions of D2C brands are expected to continue.
Market intelligence platform Tracxn has released a report on India’s direct-to-consumer sector, tracking approximately USD 6 billion in equity funding across nearly 2,000 rounds between January 2021 and August 2026, alongside 15 IPOs and 105 acquisitions.
Annual funding peaked at USD 1.6 billion in 2022, fell to USD 824 million by 2024, and recovered to USD 898 million in 2025, up 9% year-on-year. Deal-making pace stayed consistent throughout, with every year recording between 307 and 380 rounds; 2024 posted the highest round count even as funding value hit its lowest point.
Seed and early-stage capital accounted for 70% of 2025’s funding value, up from 38% in 2021, with early-stage funding rising 66% from its 2023 trough. Late-stage funding value fell 69% between 2022 and 2025, though its round count returned to 2021 levels.
Entrepreneur Staff • Editor
Entrepreneur Staff
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