₹293 crore saved by Licious – time to take notes on how to cut costs!
In our Seventy-first D2C Insider edition, explore how Yu raises ₹55 crore in Series B funding, Licious reports ₹685 crore revenue in FY24 and more!
Welcome to the D2C Insider Digest!
Here, you'll stay on top of the latest in the D2C space, find exclusive updates from India's largest D2C community, and get key insights and trends from leading brands.
In today’s newsletter, you’ll find:
The direct-to-consumer food brand Yu has just raised ₹55 crore in Series B funding, led by Ashish Kacholia and the Asian Paints Promoter Group. This brings Yu’s total funding to ₹100 crore!
Founder’s Vision: Founded in 2021 by Bharat Bhalla and Varun Kapur, Yu aims to make quick, nutritious meals easy to access. They offer over 25 instant foods and have recently expanded into beverages.
Use of Funds: The new funding will help Yu boost distribution, expand its food lineup, and grow its new fruit juice range.
Expanding Reach: You can now find Yu products in 7,500+ stores across India and 2,000 stores in South Africa.
Strong Market Demand: Yu is seeing great demand, with over 1 million units sold in September 2024 alone.
Licious, the Bengaluru-based D2C meat and seafood brand, reported a revenue of ₹685.05 crore for FY24. This marks an 8% decline from last year due to reduced third-party distribution as the company focuses on its own platform.
Revenue and Losses: Despite the revenue drop, Licious cut its losses by 44%, bringing them down to ₹293.77 crore from ₹524 crore in FY23. This was achieved through cost control and boosting platform-driven sales.
Direct-to-Consumer Focus: Now, 85% of sales come from Licious’ app, which serves 1.2 million monthly customers. They’re also piloting a 30-minute delivery service in Gurugram.
Expansion in Offline Retail: After acquiring My Chicken and More, Licious expanded its retail network to 26 locations, with plans to reach 500 offline stores.
Future Strategy: Co-founders Ajay Hanjura and Vivek Gupta are focused on a balanced omnichannel approach, with an eye on achieving profitability by FY25.
1. Halloween Retail Boom: A Ghoul’s Paradise for Retailers
Halloween is shaping up to be a major retail opportunity this year, with spending projected to hit $11.6 billion—a slight dip from last year’s record of $12.2 billion. Since 2005, Halloween spending has skyrocketed by 250%, showcasing its growing significance for retailers.
Retail Strategies: Major players like Spirit Halloween are going all out, opening 1,525 locations this year and partnering with Uber for costume deliveries. Home Depot is offering seasonal products at affordable prices, while Target has costumes starting at just $15.
Community Engagement: Halloween encourages social gatherings, giving consumers a fun way to transition from fall to holiday decor, especially after the pandemic.
Candy Sales: Nearly every American buys Halloween candy, contributing to $6.4 billion in sales last year. However, rising cocoa prices might push costs up this season.
Emerging Trends: The concept of “Summerween,” inspired by Disney’s Gravity Falls, has retailers stocking Halloween items as early as June to attract younger shoppers.
2. Zara Launches Repair and Resell Services in the USA
Zara is stepping up its sustainability game by launching its circularity initiative in the U.S., marking its first expansion beyond Europe. This platform is now accessible through Zara’s website, app, and physical stores, having already launched in 16 countries like Italy and the U.K.
Service Highlights: The initiative includes repair services for garments, a resell feature that uses AI to provide product details, and a donate option with home pick-up available in New York City.
Community Impact: Zara is teaming up with over 90 local organizations, including the Salvation Army, to manage donations. In 2023, they recovered 20,000 tonnes of clothing, with 67% being reused or resold.
Sustainability Goals: Paula Ampuero, Zara’s Head of Sustainability, emphasized the platform’s role in promoting responsible consumption. Inditex aims for more eco-friendly textiles by 2030 and net-zero emissions by 2040.
Zara is also investing in sustainable tech, partnering with companies like Galy and Circ.
A) D2C Insider CXO Meets Regional Meet - North X D2C Insider Elevate Cohort 2 Demo Day
As we successfully conclude the D2C Insider CXO Meets Regional Meet - North X D2C Insider Elevate Cohort 2 Demo Day, here's a sneak peek into what went down in the amazing D2C evening!
Couldn't make it this time? We've got you.
Next is Mumbai!
B) D2C Insider Prime Member
Founders, here are 5 reasons to become a D2C Insider Prime Member today!
1. Enjoy a curated membership program providing enhanced community benefits to help scale your brand faster than ever!
2. Exclusive access to premium events
3. Discounted rates on community resources
4. Lucrative rewards program from 30+ D2C enablers
5. Promotions including visibility across 3 events, a social media shoutout and Newsletter offers
C) D2C Insider Elevate
Success story: Orimii Skincare founder Anirudh Agarwal mentions that since joining Elevate, their revenue has gone up 3X!
This is one of the many examples of how Elevate can help your brand achieve breakthrough success!
By joining Elevate, you get:
◾ Funding up to ₹1 Cr to give wings to your D2C dream
◾ Over ₹25 Lakhs in enabler credits as a bonus
◾ Platform to pitch to 50+ investors on Demo Day
◾ Expert mentoring from industry veterans
Your brand deserves to shine brighter.
XYXX is working on changing the men's underwear game, bringing comfort, quality, and sustainability to the forefront of everyday essentials.
XYXX is all about making everyday essentials better for you and the planet. With their fun, comfortable designs, they’re changing how men think about their undergarments!
The buzz around our events just keeps growing—and we’re loving every moment of it!
Join us and connect with others who will support you along the way.
Navigating LinkedIn as a D2C Brand Founder
Prasanna Vasanadu, founder and CEO of Tikitoro, shares her thoughts on the challenge of being active on LinkedIn. Here’s what she has to say:
As Prasanna navigates these ups and downs, she emphasizes the importance of balance and is eager to hear any tips from her fellow founders!
D2C Brands Are Working With Malls for Immersive Experiences
D2C brands in India are increasingly setting up in malls to boost customer engagement and create memorable experiences. As online acquisition costs rise, malls are key for connecting with shoppers, even in tier-2 cities!
Experts predict we'll need around 55 million square feet of Grade-A mall space by 2027. Malls are evolving into lifestyle destinations that blend shopping, dining, and entertainment, especially in Gurgaon, where demand for premium experiences is high.
Don't miss out on future D2C knowledge bombs! 💣
Stay tuned for upcoming webinars and industry insights 🌟
Until then, keep rocking the D2C world! 🚀
