Guess Which D2C Brands VCs Are Falling Hard For?
In our Fifty-First D2C Insider edition, explore how VC funds take a shine to new gen’s D2C brands, High-Income Shoppers Likeliest to Abandon Carts Online and more!
Hello and welcome to the world of D2C Insider, your weekly dose of insights, news, and trends from the direct-to-consumer space in India and beyond. In D2C Insider Digest’s Fifty-First edition you'll see:
VC funds take a shine to new gen’s D2C brands
Several direct-to-consumer (D2C) brands launched by entrepreneurs from business families in similar sectors are attracting significant investments from venture capitalists. These founders have inherent understanding of the business and connections in supply chains, making them well-positioned to launch modern versions of legacy businesses.
Examples include premium fashion brand Rare Rabbit founded by the Poddar textile family, which is raising Rs 500 crore led by A91 Partners. Another is Kapiva, an Ayurvedic products company co-founded by Ameve Sharma from the Baidyanath Ayurved family, backed by Fireside Ventures and Vertex Ventures. Investors believe the founders' family backgrounds give them an edge in their D2C ventures.
High-Income Shoppers Likeliest to Abandon Carts Online
A study surprisingly found that higher-income consumers are more likely to abandon online shopping carts compared to lower-income shoppers. High-income shoppers may have higher expectations for their online shopping experience, including website functionality, customer service, product quality, and payment options. If these expectations are not met, they are more prone to abandoning their carts. Their higher disposable income also makes them less urgent to complete purchases immediately.
For retailers, this situation leads to lost potential sales. Current solutions like emails and ads are ineffective as consumers ignore them. Providing a frictionless checkout experience is key to reducing cart abandonment, as stated by industry experts.
Tapping the Potential - Understanding Millennial Parents' Motivations for Adopting Quick Commerce
The article by Revant Bhate, CEO @ Mosaic Wellness, discusses the potential of quick commerce (delivery within 10 minutes) for Indian parents, particularly millennial mothers. While quick commerce platforms like Blinkit have gained popularity among GenZ users, only 3 million out of their 20 million monthly active users are millennial mothers buying for their kids.
The underlying message is that while quick commerce has gained traction among younger consumers, there is a significant untapped opportunity with millennial parents (estimated at 50 million in urban India). Understanding their preferences and addressing their concerns could be crucial for quick commerce platforms to tap into this lucrative market segment.
The Founder's Journey - Gratitude, Resilience, and the Invaluable Support System
The article reflects on Ahana Gautam's, Founder & CEO @ Open Secret journey as a founder over the past 12 months, which has been a mix of challenges and triumphs. She candidly discusses the "worst" times, marked by disappointment, overwhelm, frustration, exhaustion, and rejections, which often felt unbearable. However, she also acknowledges the "best" times, where these challenges shaped her team into a resilient and tenacious force, turning crises into opportunities through their hustle and determination.
Finally, Ahana expresses her pride in her team at Open Secret, acknowledging their collective effort in overcoming challenges and achieving milestones together, with the confidence that they will continue to reach greater heights.
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Chennai Skincare Startup CHOSEN Secures $1.2 Million in Seed Funding
Chennai-based skincare startup CHOSEN has raised $1.2 million in a seed funding round from friends and family. This follows an equity-free grant of $100,000 from Peak XV Partners through the SPARK program for women entrepreneurs. The funds will be used to expand the team and improve supply chain capabilities. CHOSEN also plans to explore partnerships with B2B sectors such as hospitality, health, travel, and leisure to widen its distribution channels. Founder Dr. Renita Rajan aims to secure pre-series funding of $10 to $20 million later this year.
💡 D2C brands share marketing tips on personifying brands, creating names that lasts
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