Premiumization Trend in India's Consumer Goods Market, Nestasia's Strategic Expansion and more!
In our Forty-First D2C Insider edition, explore Mosaic Wellness Surpasses Rs 200 Cr Revenue in FY23, Navigating the Funding Drought, The Whole Truth Foods' Commitment to Authenticity 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 Forty-First edition you'll see:
Premiumization Trend in India's Consumer Goods Market
The trend in India's consumer goods industry is shifting towards premium products, with over 70% of new launches by top companies targeting the high-end market. Economic factors and the rise of online platforms have fueled this move, affecting various sectors from smartphones to household brands. Companies are focusing on premium offerings due to better profit margins and consumer willingness to pay for quality and innovation, challenging the traditional market approach that prioritizes mass-market products.
Nestasia's Strategic Expansion: Eyeing Offline Presence and EBITDA Positivity
Nestasia, a home decor and lifestyle brand, is planning a significant offline expansion across India, targeting to become EBITDA positive in the upcoming quarter. The brand intends to grow its current three stores to fifteen by year-end and aims for 300 stores by 2027, with the initial 50 being company-operated. With a previous fiscal year revenue of Rs 35.87 crore, Nestasia looks to derive 20% of its revenue from offline stores, offering a wide product range for an immersive customer experience.
Mosaic Wellness, Parent of Man Matters, Surpasses Rs 200 Cr Revenue in FY23
Mosaic Wellness, a digital health and wellness consultation startup, saw its revenue grow over 18 times to cross the Rs 200 crore mark in FY23 from Rs 11.47 crore in FY21, despite recording Rs 62 crore in losses. The company's revenue from operations increased by 163% to Rs 207 crore in FY23. Mosaic Wellness, which operates brands for men, women, and kids, including its flagship brand ManMatters, focuses on health and wellness products, contributing to its primary source of income.
Sumir Verma, Founder of Merisis Advisors, discusses the pressing concern in the startup and investment community about the end of the funding drought.
He suggests that startups must showcase sustainable business models to regain investor confidence. Verma highlights the current investment trend:
Sumir Verma's observations underscore the importance of adaptability and consumer focus in navigating the current investment landscape.
In the face of a dramatic rise in cocoa prices—over 150% in one year—The Whole Truth Foods faces a challenging decision:
The Whole Truth Foods reaffirms its dedication to real chocolate and ethical practices amidst market pressures.
SuperK, a grocery retail chain focusing on small towns, has secured $6 million in Series A funding. This investment, led by Blume Ventures with contributions from other venture firms and angel investors, will boost technology infrastructure, hiring, and scaling efforts to connect digital native brands with SuperK's customers. Operating in over 80 Tier 3-5 towns in Andhra Pradesh, SuperK's approach aims to modernize trade for India's smaller cities.
🤔 How can brands delight customers and keep them coming back?
1. D2C Insider Bangalore Summit
It's with immense pleasure that we reflect on the incredible journey we experienced at the D2C Insider Bangalore Summit on 29th March 2024.
2. Elevate Super 30
A. Program Update
Sessions conducted of Elevate Super 30 this week: 🚀
B. Elevate Super30 Brand Corner
FflirtyGo, founded by Japjeet Singh Naranga, is a fashion-forward brand that invites individuals to explore their unique sense of style through its vibrant collection of clothing and accessories. Offering bold patterns and quirky designs for every mood and occasion, FflirtyGo ensures top-notch quality and a playful twist in every piece, making it the ultimate destination for fashion adventurers.
C. Be Part of Elevate Super 30 Cohort 2 by joining the waitlist here
3. D2C Insider Super Angels Fund
Introducing the Early Super Angels of D2C Insider Super Angels Fund – India's first operator-led consumer fund backed by top founders from the D2C space in India!
If you are a startup founder seeking relevant and strategic capital, fastrack your success with the D2C Insider Super Angels Fund!
If you are an angel investor looking for exclusive investment opportunities, the D2C Insider Super Angels Fund is for you!
Stay tuned for more updates and future events. Let's keep taking your D2C business to new heights
Until then, keep rocking the D2C world! 🚀