D2C startups raise $6 bln in 5 years as early-stage funding gains ground, IPOs and buyouts widen exits

India’s direct-to-consumer (D2C) companies raised nearly $6 billion across almost 2,000 equity funding rounds between 2021 and August 2026, even as the composition of capital shifted sharply towards younger businesses and exits increasingly moved through public markets and strategic acquisitions, according to a Tracxn report released on Wednesday.

Five companies—Lenskart, Licious, FreshToHome, BlueStone and Country Delight—account for $2.3 billion of lifetime funding. Lenskart's $981 million represents about 43% of this combined amount, while Lenskart and Licious together account for roughly 65%.

D2C exits broaden through IPOs, acquisitions

The funding market remained active despite significant swings in annual capital. Funding peaked at $1.6 billion in 2022, fell to $824 million in 2024 and recovered 9% to $898 million in 2025. However, the number of deals remained relatively steady, with between 307 and 380 rounds recorded in each full year during the period.

Early-stage funding takes larger share

The recovery in 2025 was driven primarily by seed and early-stage investments. These segments accounted for 70% of total funding value in 2025, sharply higher than their 38% share in 2021. Early-stage funding alone increased 66% from its 2023 trough.

Late-stage capital, meanwhile, declined 69% in value between 2022 and 2025, although the number of late-stage rounds returned to 15 in 2025, matching the level recorded in 2021. The shift indicates that investors are spreading capital across a wider pool of emerging consumer companies rather than concentrating funding primarily on mature businesses.

The exit landscape has also expanded, with 15 D2C IPOs and 105 acquisitions recorded between 2021 and 2026 YTD. Lenskart raised $981 million privately before listing in November 2025, while BlueStone has also entered public markets. In contrast, Credo Brands, which owns Mufti, listed in 2023 after operating for more than two decades without institutional funding.

Strategic buyers are also playing a larger role. The report identifies established companies including Hindustan Unilever, Wipro Consumer Care, Reliance Retail, Aditya Birla Group's TMRW and USV India among notable acquirers. HUL's $350 million acquisition of skincare brand Minimalist in January 2025 was the largest disclosed transaction among the highlighted deals.

With Wipro Consumer Care and USV India completing D2C acquisitions in the first half of 2026, the report suggests that established consumer companies are increasingly using acquisitions to add digital-first brands to their portfolios.