India’s D2C sector sees $6B in funding and rising exits

India’s direct-to-consumer (D2C) sector has seen approximately $6 billion in equity funding across roughly 2,000 rounds between January 2021 and August 2026, according to a report by market intelligence platform Tracxn.

The report highlights a maturing ecosystem characterized by a widening exit window through public listings and conglomerate acquisitions. Notable activity includes 105 D2C acquisitions and 15 IPOs during this period. Major FMCG and retail players, such as Hindustan Unilever, Wipro Consumer Care, Reliance Retail, and Aditya Birla Group’s TMRW, have been active in acquiring startups. A significant transaction noted was Hindustan Unilever’s $350 million acquisition of the skincare brand Minimalist in January 2025.

Funding trends show a shift toward earlier stages; seed and early-stage capital accounted for 70% of 2025’s funding value, compared to 38% in 2021. The IPO market has also accommodated diverse business models, ranging from institutionally-backed companies like Lenskart to organically grown brands like Credo Brands.