Platforms such as Blinkit, Zepto, and Instamart are driving the remarkable expansion of the fast commerce and direct-to-consumer (D2C) brand landscape. Significant investor interest in early-to-mid-stage D2C brand deals is being spurred by this spike.
Rapid Growth in Quick Commerce
Venture capitalists are taking notice of new-age firms that have been able to scale quicker than expected due to the rapid rise of instant commerce. Notable instances include The Health Factory, a healthy bread producer that is expected to get funding from Peak XV Partners, and Tuco Intelligent, a kids’ gift brand that is in talks to raise further capital from Fireside Ventures. Gourmet Garden, a specialised brand of organic fresh supplies, is now in talks with many investors to raise approximately $10 million.
Significant Deals in the D2C Sector
The Whole Truth, a healthy food company, is having preliminary discussions for a new fundraising round. The company’s recently launched protein powder products have helped it double its monthly sales to INR 13–15 crore. Tanglin Venture Partners has made an investment in the noodles company Master Chow, demonstrating the variety of interests in the D2C sector driven by rapid commerce.
Expanding Horizons Beyond Grocery
Aside from basic goods, investors are interested in personal care, undergarments, pet care, and electronics. On sites like Zepto and Instamart, the ultra-fast delivery model has greatly increased sales of specific categories and stock keeping units (SKUs). According to executives, new-age firms are also looking into prospects with Amazon India’s two-hour grocery delivery service and Flipkart’s recently introduced Minutes quick-commerce service.
Growing Influence of Quick Commerce
Some firms state that quick-commerce platforms account for more than half of their monthly revenues. This pattern is noticeable in non-grocery categories as well, supporting the idea that speedy commerce can increase customer demand and brand awareness.
Investor Perspectives
Investors recognise that rapid commerce has a big impact on the market. “There is a notable surge in quick-commerce for a number of businesses, particularly in the food and beverage industry, but it is also present in other categories. Every brand will ride this wave over the next two years, according to an investor engaged in several transactions.
The unexpected success of companies in unconventional categories including clothing, pet care, and electrical appliances inside tier-I markets and the traction in tier-II cities was seen by Anshu Prasher, partner at Whiteboard Capital. Brand founders are reevaluating their operating plans in response to this accomplishment.
Brand Adaptations and Success Stories
Arjun Balaji, the founder of Gourmet Garden, emphasised how their sales approach changed as a result of speedy commerce. In the past, their platform accounted for 80% of revenues, with others providing the remaining 20%. These days, the opposite is true, with speedy trade being essential. Even with high commissions, the sales velocity—which is determined by adding marketing and logistical costs—justifies the expenditures. Due to rapid commerce, Gourmet Garden’s monthly sales have expanded from INR 3.5 crore to approximately INR 10 crore.
Blinkit’s Perspective
The CEO of Blinkit, Albinder Dhindsa, highlighted how well the approach works to supply items that would otherwise be difficult to get. He mentioned that fast commerce may handle incremental demand in the company’s June-quarter performance, especially in the holiday and impulse categories. “Quick-commerce channels have been scaling rapidly and enabling brand discovery,” said Dhindsa.
Fireside Ventures’ Insights
Fireside Ventures partner and co-founder Kannan Sitaram continued, saying, “Differentiated product assortments and new price points have helped our brands leverage the potential of quick commerce.”
Final Thoughts
Quick commerce’s explosive expansion is changing the direct-to-consumer (D2C) market, drawing large investments and allowing companies to expand swiftly. As long as this tendency persists, new-age brands will have a lot of chances to flourish and develop in a competitive market.
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