Melorra, the D2C jewellery brand that secured INR 35 Cr in a seed-funding round in 2016 – one of the largest in India, hit rock bottom with zero revenue during the pandemic – yes, zero!
At this time, 150+ investors did not see the potential for recovery and turned down the pitch of founder Saroja Yeramilli. But the gritty Saroja didn’t give up.
“I wanted to build the Zara of the jewellery industry!”
So, Saroja raised INR 70 Cr in debt and kept scaling!
Cut to today, Melorra is thriving with:
In this edition, we’ve taken a dig at how Melorra’s USP of speed in design innovation is one of its primary growth drivers!
It’s interesting how Saroja thinks. In an edition of Inc42’s D2C Summit, she said, “Never look at competition. Always look at consumers and what they want, and you’ll find all the right cues to scale your brand!”
Saroja wisely pointed out, “Who wears heavy jewellery to the office? No one! Heavy jewellery is made to be kept in bank lockers.”
So, Melorra carved a niche – in a sea of brands like BlueStone, CaratLane, and GIVA, which cater to traditional high-end jewellery buyers, Melorra zeroed in on the pulse of the millennial and GenZ target groups with affordable, lightweight, everyday jewellery—pieces that look chic and are practical for daily wear.
Melorra launches 75+ new designs every Friday – that’s 300+ new designs on the website every month – all at par with global fashion trends. No other jeweller in India comes close!
They even send some folks from their design team to Paris and Milan fashion week to draw inspiration and keep up with what’s trending in the fashion world! Now, that’s one way to lead the industry!
If you’re thinking – ‘how do they manage inventory?’, you’re asking all the right questions! And, before we answer that question, why don’t you explore D2CX – a 12-week live and hybrid program that helps D2C founders with:
🔹 A personalised growth playbook to unlock 10X scale for their brand
🔹 Access to a community of 100+ emerging D2C founders
Dead stock proves to be a nightmare for D2C companies. And, Melorra solved it by eliminating physical inventory altogether!
But this meant Melorra had to solve for Responsiveness To Consumer Demand.
The standard TAT for custom jewellery (design to manufacture) is typically a month. And, this number surges to 3 months during the festive season.
But, Mellora slashed the TAT of jewellery production to just five days, all the while ensuring precision and quality—something unheard of in the industry.
How? By leveraging CAD (Computer Aided Design) and 3D printing!
Melorra’s Jewellery Production Process:
Step 1: Design team creates detailed technical drawings of each piece
Step 2: Using the latest CAD technology, these technical drawings are translated into computer sketches
Step 3: These sketches are listed on the Melorra website
Step 4: Once an order is received, CAD-based computer sketches are converted into virtual 3D models, which are then rendered with real material input.
3D modelling facilitates quick TAT of custom orders.
Melorra’s revolutionary no-inventory model allows them to operate with agility, lowering risk and keeping operations flexible and scalable.
How? Let’s break it down.
Each piece of jewellery is made on-demand. This model enables personalised products without the waste that comes with overproduction.
Melorra avoids the massive costs associated with physical inventory. Less space, less risk, and way fewer headaches when managing logistics.
Melorra introduces new designs at lightning speed without worrying about surplus stock. Fashion trends change fast, and Melorra stays ahead by constantly rolling out fresh, trendy pieces.
Saroja said in an ValueQuest event, “By having a no-inventory model, we only make what a customer requires, which leads to a huge reduction in carbon footprint and being sustainable. Why make it if somebody is not willing to buy it?”.
Speed isn’t the only pillar of Melorra’s success. The brand combines its fast product cycles with trust levers like hallmarking for gold and SGL or IGI certifications for diamonds.
Targeting an internet-first generation, Saroja was clear she had to tap into their mindset and make buying a delightful experience for them.
Innovate, and when you do, ensure you’re turning heads. That’s exactly what Melorra did when they launched their gender-neutral jewellery collection in 2021. What was just an experiment turned out to be an actual hit! And since then Melorra has been extremely bullish when it comes to innovations and launching bold collections.
Their featured collections include Frosted Sparkle, Office Siren, Boho Fusion, and Chainmail, amongst 200+ others.
To enhance customer experience, Melorra has opened 26 experience centres all across India. Consumers can scroll through and shortlist designs online (on Melorra’s website or mobile application) and then visit an experience centre to check for quality before making the purchase.
They have optimised their supply chain to produce and ship directly to consumers within 10-12 days of order placement. Also, they cater to customers across 26,000+ pin codes in India, even allowing COD on select locations.
Melorra is indeed on a fast track to exponential growth, but like any scaling brand, rising expenses are part of the game. In FY22, Melorra’s total revenue surged by 4.6X to INR 364.5 Cr, up from INR 79 Cr in FY21. Impressive, right?
But, here’s the kicker: its expenses also ballooned, jumping to INR 471.3 Cr from INR 140.4 Cr the previous year.
Where’s the money going? Primarily to marketing and customer acquisition costs (CAC). With Bollywood star Shraddha Kapoor on board as the brand ambassador, Melorra’s advertising budget skyrocketed. In FY22 alone, they spent a whopping INR 120 Cr on advertising—a massive 175% jump from INR 43.7 Cr in FY21.
Sure, marketing is expensive, but at the rate Melorra is growing, we wouldn’t be surprised if they reach breakeven soon.
We’ll be keeping a close watch on this fast-moving jewellery disruptor!
When you need fresh milk delivered at 7 AM, what’s your go-to? Well, Country Delight!
But did you know, Country Delight started as a part-time project in 2011 and is now a business worth INR 6800 Cr!
It all kicked off with a simple but powerful pledge—fresh, unadulterated milk delivered straight from farm to home! Country Delight’s founders, Chakradhar Gade and Nitin Kaushal, were on a mission to provide high-quality milk directly to consumers’ doorsteps through a subscription-based model.
And believe it or not, they started with just 50 4-legged milk-givers, cattle of course!
Fast forward to today, and it’s not just milk they’re delivering! Country Delight clocked INR 1380 Cr in FY24, marking a stellar 46% rise in revenue compared to FY23. Clearly, their full-stack farm-to-doorstep model has been nothing short of a game-changer.
Let’s dive in!
With freshly infused capital at their disposal, Chakradhar and Nitin took the challenge head on!
The biggest challenges in the initial days were:
🔹 Procurement of milk
🔹 Fixing last-mile delivery
🔹 Cracking customer acquisition
🔹 Building scalability
By 2015, after burning through a whopping 70% of their bootstrapped funds, the Country Delight founders were at a crossroads. Despite their best efforts, they couldn’t crack the “one-size-fits-all” solution to their operational challenges. Things were looking dicey.
But just when it seemed like they were on the verge of collapse, Chakradhar and Nitin did what all great entrepreneurs do—they bet big! They turned to family and friends for extra cash and then diluted 10% equity to raise a seed round of INR 3 Cr from Rehan Yar Khan of Orios Ventures. With fresh capital in hand, they went all in!
Borrowing Chakradhar’s words from an interview, “Procurement was killing us. We had to optimise the supply chain to increase our margins, and the only way was to leverage tech!”
With freshly infused capital at their disposal, Chakradhar and Nitin took the challenge head on!
Initially, Country Delight was bad at managing the cattle. As a result, milk production dipped and they weren’t able to keep up with the subscription-based demand!
Country Delight has taken farm-to-home delivery to a whole new level by partnering with over 250 small and medium-sized dairy farms across India. This close-knit collaboration allows them to monitor the entire milk production process like a hawk—from ensuring the cows are munching on top-quality feed to overseeing strict hygienic milking practices. And the best part? They cut out the middlemen, saving a solid 15-20% in distributor margins!
This smart move doesn’t just cut costs—it also ensures every packet of milk is traceable right back to the farm it came from.
You can’t just pour raw milk into a carton and call it a day—there’s a whole process to ensure quality and safety! At Country Delight, every drop of milk goes through a stringent journey. It starts with milk separation, then moves on to pasteurisation and homogenisation, followed by the culture stage, and finally, packaging. They don’t take shortcuts!
To make sure the milk remains top-notch, Country Delight developed an in-house app called Nectar, which keeps track of milk temperature throughout the entire supply chain. Paired with IoT devices, this tech infusion ensures the milk you receive is not only fresh but consistently high quality.
This precision and attention to detail are what keep Country Delight at the top of its game. By diving deep into customer data, the company optimises everything from delivery routes to logistics efficiency, making sure fresh milk reaches your doorstep by 7 AM. The key? They cleverly group customer cohorts based on geographical locations to streamline deliveries, thus reducing delivery times, costs, and wastage.
When your business runs on a subscription-based model, the game is all about retention! And boy, does Country Delight know how to play it. With a three-year revenue retention rate of 65%, they’ve clearly built a fiercely loyal customer base. It’s no longer about winning new customers—it’s about keeping them coming back for more.
But how?
Country Delight walks the walk! They go beyond testing their milk for quality; they make sure you know exactly what you’re consuming. Every customer has access to detailed lab reports through their mobile app, allowing them to see the specific test results for the exact milk batch they receive.
But that’s not all. They send you a milk testing kit on your first order!
When scanned, this QR code gives you a virtual tour of the very farm where your milk originated! Not only does this offer a firsthand look at the source of your milk, but it also strengthens the trust between the brand and its consumers.
This transparency builds confidence in customers who can now see the process, from how the cows are raised to how the milk is handled before it reaches their doorstep. It’s not just fresh milk—it’s milk with a story!
By FY18, Country Delight was catering to Delhi NCR, Mumbai, and Pune, supplying a whopping 15,000 litres of milk daily. But, the brand had bigger ambitions.
With the supply chain running smoothly and their direct-to-home model proving successful, the founders decided it was time to expand their product line—because why not? They first ventured into dairy products like paneer and later, in 2021, boldly expanded into fruits and vegetables.
Here’s the kicker: they leveraged the same supply chain and procurement process! This smart expansion did wonders for their revenue. In fact, the company expects to break even by Q1 FY25, with a significant portion of revenue now coming from these new product categories.
Fast forward to today, 40% of business comes from non-milk products like fruits and vegetables, and they’re aiming to push this to 60-70% over the next few years! It’s clear that diversifying the product range while maintaining the efficiency of their supply chain was the growth strategy that set the brand apart.
Although Country Delight seems to have cracked the code for delivering fresh, unadulterated natural foods, their journey isn’t without its bumps. The two biggest challenges they face? CAC (Customer Acquisition Cost) and LTV (Lifetime Value).
Here’s the deal: acquiring a customer isn’t cheap, and for Country Delight, this cost is only recouped once the customer sticks around long enough to become a repeat buyer. That’s why retention is the secret sauce. The moment customers drop off, the company has to reinvest the same amount to bring in new ones—talk about a cycle!
And while they’ve nailed freshness and trust in their products, managing the balance between CAC and LTV is like walking a tightrope.
It’ll be interesting to see how Country Delight navigates these challenges!
Until the next one!
Edition 16 already and we haven’t covered any D2C startup in Modern Ayurveda–an industry that’s worth INR 57,450 Cr in India, growing at a CAGR of 15%.
So, we picked the industry-leader – Kapiva – a D2C brand in Modern Ayurveda that
✔️ Has presence in 8500+ retail stores
✔️ Was offline-first, but making 85% sales from online channels today
✔️ Clocked INR 116.5 Cr in FY23, an 86% jump compared to FY22
We’ll dive into Kapiva’s growth levers in a bit.
How about a brain-teaser, first? We promise it’s fun!
Imagine your D2C brand relies on high-quality herbs sourced directly from farmers, but as you scale, your current suppliers can’t meet the demand without compromising quality.
Teaser: How would you scale production without diluting the quality of ingredients?
Did you find an answer?
In a similar situation, Kapiva came up with a bold solution!
If sourcing high-quality herbs isn’t feasible, why not grow your own?
Kapiva is in talks to acquire 1,000 acres of land on the Maharashtra-Madhya Pradesh border to cultivate ingredients themselves.
Talk about gutsy! Ameve Sharma and Shrey Badhani have been scaling Kapiva with this mindset ever since they launched in 2016
Kapiva is answering a huge consumer demand—traditional Ayurveda backed by modern science. And they’re not holding back! From herbal supplements and juices to oils and skincare essentials, they’ve launched a wide range of products rooted in this winning combination.
With 100+ SKUs, Kapiva ensures that every product is sourced with precision, focusing on purity and authenticity. Take their Aloe Vera Gel, for example—it’s extracted within 4 hours of harvest! That’s commitment to freshness!
The results speak for themselves. Kapiva products boast an average rating of 4.5+ on Amazon, Flipkart, and JustDial. Not bad, considering most of these products are perishable! Now that’s the kind of number that gets people talking!
Before 2019, Kapiva wasn’t exactly bullish with its packaging—simple, minimal, and honestly, not the most creative. There wasn’t a standout design philosophy, so their products kind of blended in on the shelves. Here’s an example:
But 2019 changed everything! Kapiva went through a total design overhaul, complete with a fresh logo and a revamped design philosophy.
They made a genius move by prominently featuring natural ingredients on packaging. And the introduction of the human hand holding those ingredients?
Absolutely poetic! It perfectly captured the essence of Modern Ayurveda, connecting customers more deeply with the products.
The result? Customers started to relate to Kapiva on a whole new level, and their revenue surged YoY! That’s what happens when you pair traditional Ayurveda with a fresh, modern twist.
We’ll get to the financials of Kapiva in the final section of this newsletter.
Kapiva has really mastered the art of performance marketing to push its products! Take their launch of Skin Foods – Glow Mix, for instance. Kapiva went all out with a rock-solid strategy. They didn’t just bring on board Malaika Arora as the face of the campaign—they also meticulously fine-tuned their marketing funnel to precisely target the right audience.
✔️ Ran ads on the channels where their TG (women) were most active – Youtube, Instagram, and Facebook
✔️ Targeted the right ICPs using custom keywords, affinities, and in-market segments related to skincare
✔️ Leveraged optimised frequency for video ad sequencing for all potential customers
✔️ Set video action campaigns to tap into deep funnel audiences
✔️ Gauged overall branding impact on D2C website and marketplaces, and optimised whenever necessary
While many D2C brands stick to influencers or affiliate marketing to sell their hero products, Kapiva went all in on performance marketing—and the results? Absolutely stellar!
Kapiva witnessed:
🔥 33% jump in brand awareness
🔥 840% search lift for the brand
🔥 2X surge in product revenue contribution
Performance marketing, when done right, is an asset for D2C founders. Aman Patial, one of our alums of D2CX, is the Founder of K9Vitality, a pet supplements brand. Before joining D2CX, his brand was clocking INR 2.5L a month. But in his 12 weeks at D2CX, he mastered performance marketing and implemented his learnings in his business. By the end of the cohort, he was making INR 15.5L a month.
Retention is key to a successful D2C brand, and Kapiva is absolutely crushing it with a mind-blowing 70-80% retention rate! How do they pull it off? Simple—by making each customer feel like a VIP with a completely personalised experience.
Here’s a screenshot from their website!
Here’s how they do it: The Kapiva website lets customers either get a customised solution or book a free 15-minute consultation with a doctor. During these calls, customers get expert advice on their dietary and nutrition needs, ensuring they pick the right Kapiva product tailored just for them.
The magic happens when you combine the right product with top-notch quality—customers just keep coming back for more! It’s no wonder their retention is off the charts.
Both in terms of revenue and funds raised, Kapiva tops the leaderboard in the Modern Ayurveda space.
As Shrey shared in an interview, Kapiva is eyeing 5X growth, with plans to hit INR 1,200 Cr in revenue and solidify itself as a household name within the next 3 to 5 years. Their mission? To provide better health outcomes to 281 million Indian households—a bold goal.
To fuel this ambition, Kapiva is gearing up to raise INR 250 Cr this fiscal year. That’s no small feat, but with their growth track record, we’re sure they’ll make it happen.
We’ll definitely be keeping a close eye on Kapiva as they continue this exciting journey. What about you?
This edition is about a beauty and wellness D2C brand launched by someone who flunked the 7th grade!
Any guesses?
Let’s drop in another cue – the brand’s flagship apple cider vinegar shampoo topped all charts on Amazon for a record 5 years, even beating the mighty Unilever to the punch! Still no?
In the spotlight today is Manish Chowdhary and his INR 2800 Cr empire – WOW Skin Science!
But before we get to the growth playbook of WOW, let’s traverse back to the time when it all started.
Manish was bankrupt with a debt of INR 7 Cr. His previous entrepreneurial stint – an electronics retail business – had hit rock bottom, and he was looking to bounce back!
Manish knew it was impossible to pay the debt back moving boxes in retail. The margins were in fact marginal. So, he thought – why not build a brand, his own legacy?
So, he dedicated a year to research at this critical juncture. And, the beauty and wellness segment became an eye-candy for him. This was 2014. This INR 1040 Cr market was majorly unorganised and was ripe for a player to come in and take a major chunk.
Manish rolled his sleeves and launched WOW with just 5 SKUs.
WOW eventually proved its mettle as a leading beauty and wellness brand. And customers absolutely loved the brand – after all the USP was natural, wholesome, and no-added chemical products!
This incredible success of WOW can be attributed to multiple factors. Without further ado, let’s decode their growth playbook!
Just like violet stands out, WOW products do too in any retail store. The unique brown bottle and golden aesthetics is a visual treat to the eyes and has that ‘WOW’ factor. This unique packaging strategy not only eludes a premium vibe but also acts as a distinct differentiator in the crowded beauty and wellness space!
Also, WOW has trademarked the design, making it impossible for copycats to replicate the same.
We’ll give an example here. Back in 2015, influencer marketing was an alien strategy to brands, WOW embraced the same with open arms.
Here’s a screenshot of Ranveer Allahbadia promoting a WOW product back in 2015!
This viral marketing approach wasn’t a one-time campaign—it became a consistent growth lever. The influencers ranged from beauty gurus to fitness influencers, each showcasing how Wow’s natural and toxin-free products fit into their daily lives. Their partnership with influencers, coupled with targeted performance marketing, helped Wow skyrocket brand awareness in just a few years.
As of today, WOW is a heavyweight in the influencer marketing game and has engaged with more than 300 influencers across YouTube and Instagram, achieving over 400 Mn views across platforms and touching over 50 Mn potential customers!
WOW didn’t just push products into the market—they listened, learned, and adapted based on consumer feedback. Their data-driven approach revealed consumer needs for toxin-free, natural beauty solutions, leading them to expand their product line from just 10 SKUs in 2016 to over 500 SKUs by 2021.
Key products like their Apple Cider Vinegar Shampoo, Onion Black Seed Hair Oil, Activated Charcoal Face Wash, and Aloevera Gel didn’t just happen by chance. Wow analysed online reviews, ratings, and consumer behaviour to fine-tune their formulations. As a result, WOW’s flagship products captured a 15% market share in the natural shampoo category.
WOW introduced a subscription model for repeat buyers. This move secured 20% of their monthly revenue from recurring customers and reduced dependence on constant customer acquisition. It also helped them lock in customer loyalty, as subscribers enjoyed discounts and prioritised delivery. This model further drove higher LTV.
To compete, WOW had to offer more than just good products—they had to be competitively priced. By moving manufacturing in-house and taking control of their supply chain, they slashed costs and passed those savings on to the customer.
What these big brands sold for INR 1000, WOW was able to sell for INR 350, and they had a net margin.
While WOW initially focused on urban, tech-savvy consumers, they soon saw an opportunity in India’s Tier-2 and Tier-3 markets. By expanding into these regions and expanding presence to 41,000 retail stores across India, WOW tapped into a massive, underserved market and added 30% to their overall revenue. Their growth in these areas was also supported by partnerships with certain modern trade and e-commerce platforms like Nykaa and Amazon India.
While WOW has been growing steadily over the last 10 years, there has been a minute drop in profitability!
Manish is looking for ways to address the drop in overall profitability after the pandemic. Although they are focused on innovation, distribution, and marketing, competition from new players is putting WOW on the hot seat. Today, more than 5500 companies are striving for the top position on Amazon India in the beauty space itself.
It will be interesting to see how WOW navigates through this maze of competitors!
This edition is exciting!
🔥 INR 770 Cr revenue in FY23
🔥 INR 900 Cr raised in Pre-IPO round
🔥 INR 8100 Cr valuation
🔥 200+ retail stores
BlueStone—the D2C brand that succeeded in making Indians purchase fine jewellery online!
When Gaurav Singh Kushwaha launched BlueStone in 2011, he knew that consumer willingness to pay wasn’t a hurdle, and the market was massive. The Indian jewellery market was worth a whopping INR 1,467 Bn!
The real challenge was to solve the trust deficit in online jewellery shopping.
With BlueStone, Gaurav fused cutting-edge tech with traditional craftsmanship and focused on customer-centric innovation. And the rest? Well, that’s pure gold!
Without further ado, let’s dive into BlueStone’s incredible growth playbook!
That’s the mindset Gaurav brought to the table when launching BlueStone, and it worked! The big question—do they have clear differentiators? You bet!
Yes, Caratlane was around in 2011, but they were only dealing in solitaires. BlueStone? They were diving headfirst into the fine jewellery game, bringing it all online—something no one else had dared to do at the time!
BlueStone quickly figured out that customers weren’t exactly jumping at the idea of buying jewellery online. So, they eased them in. The first year was all about understanding consumer behaviour. BlueStone allowed customers to browse designs, save their favourites, and purchase later—breaking the mould of traditional in-store shopping. A true game-changer! In 2016 itself, BlueStone had 45% repeat customers
Gaurav knew he couldn’t go toe-to-toe with big retail jewellers on their turf unless he made pricing a key part of the strategy. So, BlueStone brought manufacturing in-house. They have 3 manufacturing units – 2 in Mumbai and 1 in Jaipur. This gave them complete control over design and quality, letting them offer competitive prices and giving customers the freedom to choose the gold purity they wanted. Any carat? Done!
With over 7,000+ SKUs across 100+ collections, BlueStone wasn’t playing small. They were going head-to-head with industry giants like Tanishq and Kalyan Jewellers. Yep, bringing the fight to the big leagues!
Even your local jeweller isn’t offering this. BlueStone’s no-fuss return policy made online jewellery shopping feel like a breeze.
The trust barrier? Smashed!
BlueStone knew that winning the hearts of Indian consumers meant tackling three big concerns: “I can’t touch and feel the jewellery,” “What happens after I buy it?” and “How easy is it to exchange?”
They didn’t just sit back—they took it step by step and turned those doubts into trust.
Let’s be honest, who in India buys jewellery without trying it on? BlueStone, being an online-first brand till 2018, made a smart move. They let consumers try on their purchases at home! It hit two birds with one stone: customers could inspect the gold’s quality firsthand, and BlueStone positioned itself as a brand that had nothing to hide. Win-win, right?
BlueStone turned online jewellery shopping into a personal experience. Virtual consultations meant customers received tailored advice based on their specific needs. The cherry on top? After the consultation, they could try the pieces at home! Talk about making online shopping feel luxe.
Game changer alert! Customers could exchange their 18kt jewellery from BlueStone for the value of 20kt gold. It wasn’t just about buying; it was about building a long-term relationship.
Every piece from BlueStone is certified by top authorities like BIS Hallmark, SGL, IGI, and GSI. It’s all about that authenticity stamp—so you know you’re getting the real deal.
So, why would anyone hesitate to buy jewellery online now?
Back in 2016, a Times of India article noted that BlueStone was clocking 5,000-7,000 orders a month and drawing in 2 Mn new visitors on its website. Yep, that’s a ton of trust being built—and fast.
Fast forward to today, and that trust is clearly reflected in their skyrocketing revenue growth.
Till 2018, BlueStone was a purely online brand, but then they decided to go omnichannel.
BlueStone’s decision to go omnichannel wasn’t just about following a trend—it was all about making the shopping experience even smoother for their customers.
They opened their first store at Pacific Mall in Delhi, and in just six short years, BlueStone has skyrocketed to 200+ retail stores across India, focusing on Tier 1 and Tier 2 cities.
But here’s where BlueStone truly nailed it:
✔️ Better Customer Service
✔️ More Consumer Touchpoints
✔️ Better Analysis Of Consumer Purchase Patterns
✔️ Physical After-Sales Support
Through these stores, BlueStone doesn’t just sell jewellery—they gather priceless insights. In a recent survey, a whopping 86% of customers said design was the top reason they chose BlueStone, with only 4% caring about price or convenience.
And what did BlueStone do? They doubled down on design! The brand continuously launches exclusive collections available both online and in stores. It’s this seamless integration of their digital and physical presence that’s catapulted them to the top of their game.
Interestingly, while most of their sales now come from their retail stores, the first touchpoint for customers often begins on the website. It’s a perfect mix of online and offline magic that’s made BlueStone a leader in the jewellery space.
Hold on – before you make your next purchase on today’s flashy ecommerce/quick commerce/D2C websites, ask yourself – are you buying the product or the experience?
Because “experience” is what separates Brands from mere products.
This is what prompted 2 meat lovers to change the way India consumes meat.
Having lunch one day and realising that the chicken they’re having isn’t of great quality was the moment of realisation for the duo to create something unique and unparalleled in the world of meat.
The duo – Abhay Hanjura & Vivek Gupta then went to create Licious – India’s First D2C Foodtech Unicorn. And this is their story.
Licious was launched in 2015, with a simple mission statement that it would not sell what the cofounders would not eat themselves.
Before taking the plunge into the world of selling meat the duo deep dived into a preliminary research that included industry statistics, consulting food industry experts and visits to poultry, goat firms and the coastline to understand how the supply chain operated.
They also gained insights into setting up processing centres and building cold chains from evolved meat-eating markets like China, Japan and Korea.
Soon the startup started catering to 100 orders a day.
Licious started out by outsourcing its customer care operations. “Big Mistake” they realised for the outsourced team could never know much about its products and could not respond to customers’ queries for prompt and effective resolution of issues.
So, the company decided to get all its employees on the payroll and train them extensively on meat and seafood.
“Since we do not outsource any of the job roles guarantees greater accountability and a sense of ownership across the organisation. All Licious products undergo more than 150 quality checks at various stages of processing,” – Abhay Hanjura
Licious functions on the farm to fork business model, meaning that the company owns the entire back-end supply chain – procurement, processing, storage – all of it.
This is also the reason why Licious has expanded slowly. Although it started operations in Bengaluru in 2015, it moved on to Hyderabad and Delhi-NCR in 2017.
“We wanted to gain an in-depth understanding of the business before we speeded up expansion. For us, it was more important to do it right than to do it in a hurry,” – Hanjura
With this ownership in place, Licious could also respond swiftly to the changing ground realities in the wake of the Covid-19 pandemic
According to a RedSeer report, the online meat market opportunity is estimated to reach $80-85 Bn by 2024, with the space ripe for disruption by branded players.
The model is of course capex heavy with increased growth YoY which also points at Licious’ consistent fundraises since 2015 and investor confidence.
With the $52 Mn fundraise in 2021, Licious entered the coveted unicorn club and became the first D2C foodtech startup to do so.
“When you look at an opportunity in India, you can get excited by the size of it, but we have to get the fundamentals right to crack that opportunity,” said Vivek Gupta at one of Inc42’s premium D2C Conferences.
Today Licious stands where it does on the back of 3 pillars:
And the numbers speak for themselves.
Okay, today we’ll travel back in time.
**Time machine noises**
Welcome to 2011! Let’s go and have a look around! But first, how about some coffee?
Now don’t get too excited. You will not be getting your specialty roasts. At least not until a year.
Matt Chitharanjan and Namrata Asthana haven’t started Blue Tokai yet.
See, for the longest period of time, coffee meant regular instant coffee that could never be the main item in the menu.
However, things change when risk takers get in front of the wheel. Challenging the “cafe” culture in India, Matt & Namrata started Blue Tokai and this is the story.
Alright, Back to the future now. (Shameless pun alert!)
In 2012, when cofounder Matt and his partner Namrata moved to Delhi from the US they analysed a dearth in places that served a good cup of coffee.
So like any other hustler, they went on and created a coffee shop of their own that served specialty coffees!
In a market crowded with coffee chains, building a business focused solely on specialty coffee was no easy feat. Yet, Blue Tokai overcame the challenges and now stands as a strong competitor to industry giants.
Big ideas often start from little executions. So did this coffee giant – from a 1kg machine where they roasted beans for twelve to fourteen hours straight on most nights.
The company started sourcing single-estate Arabica coffee beans from premium Indian coffee estates, roasting them on order, and selling them online direct to consumers and offline to leading cafes, restaurants and hotels across the country.
After building a loyal fanbase, Blue Tokai raised its first seed funding round in 2016 led by Snow Leopard Ventures with participation from Bold Ventures.
Around this time, Blue Tokai had recently set up a roastery and cafe in Delhi and the company aimed to use these funds to add more roasteries in other major cities across India, starting with Mumbai in mid-2016.
And the rest is history.
Blue Tokai has more than 80 outlets spread across Kolkata, Delhi, Mumbai and Gurgaon and in Japan too!
Blue Tokai employs 448 individuals and has raised $72 Mn+ in funding in the last decade of its existence.
With the recent fundraise of INR 293 Cr led by Verlinvest pegging its valuation at INR 1500 Crs – Blue Tokai has unlocked the next phase of its journey.
“We will utilise these funds to accelerate our expansion across all channels – from our own cafes to B2B and B2C platforms… Our focus remains to providing exceptional coffee experiences while fostering sustainable growth,” said Blue Tokai cofounder and CEO Matt Chitharanjan.
Meanwhile, cofounder and chief operating officer (COO) Shivam Shahi said that the funds will enable the startup to accelerate expansion plans and “drive profitability” while maintaining product quality.
What’s more?
Last year, Blue Tokai also bagged funding from Deepika Padukone as part of its $30 Mn Series B funding round led by A91 Partners.
This comes at a time when startups in the food and beverage (F&B) sector are witnessing renewed interest from investors on the back of growing disposable income in the country.
“Parabens, Phthalates, Sulphates, Bleach”
You must be thinking, “What The F Chemistry Is That???”
So did the parents of a new born child venturing out to get baby care products and finding these very harmful ingredients in them.
Naturally, they started preferring imported products from the USA. Soon enough, you guessed it correctly, they realised that it was expensive and inconvenient.
“Fair Enough” as one would think. So the couple did the next best *natural* thing that could occur to parents –
The parents in the picture are Ghazal & Varun Alagh and the brand is, of course, Mamaearth. And this is their story.
In 2016, after their son was born, Varun Alagh and Ghazal Alagh struggled with choosing safe and non-toxic products for their baby like many parents.
Looking for safer alternatives, the Alaghs began ordering products from the US, but that naturally turned out to be more expensive and inconvenient.
Soon they realised that this struggle is not unique to them as parents so they did what most parents want – creating a babycare brand themselves!
“We are a generation of Google parents,” said Ghazal in interview with Inc42, adding that parents Google everything before buying it — right from feeding bottles, shampoos to the paediatrician.
After realising a big gap in the demand and supply for toxin-free baby care products, the duo started off with their research to find the right ingredients and vendors.
According to the cofounder Varun, one of the biggest challenges was to find manufacturing partners who were ready to work with their specified set of ingredients.
“We set up a series of meetings with vendors across the country, only to face numerous rejections. But, we didn’t give up until we found the perfect partners, particularly those who were catering to export markets and had strong ISO, WHO and JNB certifications already,” said Varun in a conversation with Inc42 back in 2020
Mamaearth began its journey with its native platform, as well as marketplace presence on Amazon and Flipkart among others.
Realising the potential of their products, founders expanded their brand to large-format retail stores such as Shoppers Stop, Central and standalone retail stories.
“Today, the brand is present in more 2 Lakh retail outlets”
However, standing out was a task of its own!
In India, a lot of D2C brands were competing at the time for the pie in the baby care segment.
BabyChakra, The Moms Co, newly listed D2C brand FirstCry, along with with personal care giants like Johnson & Johnson, Himalaya, Sebamed, Hindustan Unilever, ITC among others – the list goes on.
Seeing the intense competition in this lucrative segment – Mamaearth decided to branch out beyond baby care to meet a larger addressable base.
While the covid-19 pandemic changed the equation completely for a lot of sectors – with runway questions and mass layoffs, D2C brands came out a bit
With growing investor interest, D2C startup funding grew multifold post the pandemic.
The funding came on the back of the changed habits of the Indian consumer who suddenly became more adept at trusting new age FMCG brands.
For Mamaearth, this period was all about going at full speed, despite the challenges.
“While most businesses went into dormant mode, with cost cutting and layoffs, we continued to advertise and sell essentials. The advertising cost was lesser and the competition was much lower, and we did not feel the need of cutting down on marketing spends,” Varun Alagh
Mamaearth’s parent company Honasa has raised $111 Mn+ till date and has backers such as Sequoia India, Stellaris Ventures, Fireside Ventures, Marico’s Rishabh Mariwala, Snapdeal founders Kunal Bahl and Rohit Bansal, and Shilpa Shetty Kundra among others.
In Dec 2021, Sequoia Capital India (Now Peak XV) pumped $38 Mn into the D2C giant, thus making way for Mamaearth to enter the much sought after Unicorn club.
2 years later on October 31, 2023, Mamaearth went public creating huge returns for early investors Kunal Bahl, Rohit Bansal, Shilpa Shetty and Rishabh Mariwala.
Mamaearth has not only embraced this transition from being called a D2C brand to now being called a retail giant. It also led the way for several other D2C brands trying to follow suit.
It’s 2016 and you’re out and about creating a D2C brand when “D2C” as an industry was just taking shape!
Then there’s the unwillingness of the Indian consumer to pay high amounts for a premium product and the biggest challenge on the top of it – to reach the hinterlands of India.
Cut to 2021 –
Sounds quite a task?
Well, The Moms Co. did it!
So how did The Moms Co. achieve such an incredible feat in a mere 5 year span?
Spoiler alert: First hand experiences for the win! But first, let’s start from the beginning.
World’s most populous democracy and the need for mom & baby care products may seem like they go hand in hand but in reality the objects in the mirror do not appear to be close.
The real challenge for new-age D2C brands is reaching the hinterlands of India — the much-vaunted Bharat or Tier 3 and smaller cities — without compromising on the high quality and premium promise of the products.
The eureka moment for The Moms Co. came when founder Malika Sadani struggled to find safe, natural products for her daughter after moving back to India from London. It turns out, other moms faced the same problem.
“In other words, a market was waiting to be disrupted.”
As Malika put it in a D2CX session with Inc42, “No one seemed to be listening to moms and trying to solve our needs.”
The breaking point? A Boston snowstorm that prevented a friend from delivering a stash of baby products to the Sadani family. That was the moment Malika and Mohit decided to dig deeper and ask: Why couldn’t these products be made in India?
Launched out of a mother’s need to find the best baby care products, The Moms Co has created a niche around designing and making toxin-free, natural products for pre and postnatal care, and babies.
From its humble beginnings to a major acquisition by The Good Glamm Group, this homegrown brand has proven that when you craft a D2C brand out of First Hand Experiences, you can create something truly special, in this case, an INR 500 Cr company – in just 6 years!
In 2017, The Moms Co. snagged a $1 Mn in a Series A round of funding by DSG Consumer Partners and Saama Capital.
2 years later, the same investors pumped an additional $5 Mn into the company in a Series B funding round in 2019.
In the midst of this came the physical expansion as part of the brand’s omnichannel strategy that included partnerships with maternity hospitals and retail pharmacies.
And when the world came to a standstill in 2020 – The Moms Co.’s overall business went up 40% as compared to pre-Covid levels led by Tier 2/3/4 markets.
This was fueled by the lockdown experience boosting usage for services and searches for products that were otherwise never sought by the Indian consumer.
And the numbers speak for themselves –
“A conflict arises between a very strong emotional part of you and a very strong rational part of you”
Founder Mallika Sadani made this statement at The D2C Summit 2024 when asked about what goes inside the head of an entrepreneur when the plans of an exit start to take shape.
In 2021, content commerce mammoth Good Glamm Group acquired The Moms Co. to further strengthen its growth across South Asia for INR 500 Cr.
What are the founders’ side of things when it comes to an acquisition?
Founders Mallika and Mohit started to receive inbound for a potential acquisition from FMCG firms they had never met or spoken to before.
At this point, they started to really sit down and think about the future of the company, its employees, their stakeholders and lastly, themselves – the founders.
And that is where they decided to separate the emotional and rational parts of their heart and soul. Needless to say – the rational part took the cake and ate it too.
“To get the best price out of the acquisition, is that you create competition”
In 2023, Good Glamm acquired 90% of The Moms Co. in what is regarded as one of the largest D2C acquisitions in India.
That’s all for this edition!
Disclaimer: This isn’t fiction—keep reading!
Imagine a brand that started in 2014, selling smartphone accessories. By 2017, they pivoted into consumer electronics and hit over INR 2,000 Cr in revenue by FY23—all while staying bootstrapped.
Yes, you read that right! Bootstrapped!
Fast forward to December 2023, and the US giant Bose Corporation invested INR 80 Cr for a 2.4% stake, valuing this brand at INR 38,400 Cr!
Any guesses?
It’s not some Silicon Valley fairytale—this is the journey of Noise—an Indian homegrown brand that’s currently taking the consumer electronics market by storm with, reportedly:
From inception to pivot to being valued at 38,400 Cr! That’s making some noise! (Pun intended)
Let’s now get to the 10X playbook of Noise!
Gaurav and Amit Khatri kicked off “Noise” to ride the smartphone wave that was sweeping India in 2014. For three solid years, they sold smartphone cases and covers—both online and offline—raking in a cool INR 24 Cr in 2017, all while staying profitable!
But as the market flooded with competition, the ASP (Average Selling Price) of cases and covers tanked. 📉
Plus, the Khatri brothers weren’t interested in being just “that accessory brand.”
The tech-savvy Gaurav never missed a day to read about what’s hot in the tech world. The first-gen earpods by Apple in 2016 and ‘The Samsung Gear’ smartwatch in 2013 had been selling in millions (units) every year – and the space had surely interested him, but he did not have the tech expertise.
Deep down, the Khatri brothers knew they had to jump into the smartwatch game before global giants dominated the space in India.
But how? They didn’t have the tech, right?
Well, Gaurav and Amit did what every Indian does when stuck—pulled off some classic jugaad!
Their big move?
In 2016, they dove into smartwatches, a tricky space where you needed to master operating systems, pack in sensors and algorithms, build solid hardware, and convince people to buy a gadget they’d never used before!
They leaned on their tech partners in Taiwan and China for sensors and design. Slowly but surely, they learned the ropes. Noise started investing heavily in R&D, bringing design and tech in-house. Assembly, UI, and UX were already happening in India.
By 2017, Noise was all in on smartwatches—and by 2018, they’d expanded to TWS too!
Noise’s first smartwatch, the ‘U8,’ launched on Amazon in 2017, was a flop. But Gaurav and Amit didn’t back down. Instead, they listened closely to customer feedback and took it to heart.
By the following year, they made a comeback with the ColorFit and NoiseFit series—absolute game-changers. These smartwatches were a massive hit, and some customers still swear by them, even today!
Some products by Noise still miss the mark, but the insights? Absolutely golden!
In the words of Gaurav Khatri (CoFounder of Noise), “When you get two good feedbacks and five negative ones, it gives you so much motivation to keep trying better and know exactly what to fix.”
The market was buzzing with new players like Xiaomi and GoQi, but they weren’t hitting the sweet spot. They either nailed functionality or pricing—not both.
Noise, with ColorFit and NoiseFit, gave consumers the best of both worlds: top-notch utility without burning a hole in their pocket!
Noise zeroed in on what clicked with the Indian consumer. From designing smartwatches tough enough for the Indian climate to adding a cricket mode (because, well, it’s India!), they didn’t just create products people wanted—they made ones the consumers needed. And it paid off big time!
“If you have a relatable USP, people will pay for it. But if you have a me-too product, you’ll keep fighting on price, and eventually, you kill the market,” Gaurav rightly pointed out in a podcast!
So far, Noise has around 35 SKUs, including smartwatches, TWS earpods (both ANC and gaming), and the flagship ‘Luna Ring!’
When Noise entered the wearables market, they knew they couldn’t just be another player—they had to be the star of the show! So instead of positioning themselves as just another tech brand, they flipped the script, presenting themselves as a lifestyle brand that screamed “cool.”
And what’s the secret sauce for winning over India? Sports and Bollywood, of course!
They didn’t just pick celebrities but timed their collaboration to perfection—like Virat Kohli when he became captain across all formats, Rishabh Pant after his iconic Test win at Lords, and Rohit Sharma when he was named national cricket captain.
The same went for athletes like Neeraj Chopra and Bollywood stars like Taapsee Pannu.
Sure, this strategy wasn’t cheap, but it sent their sales skyrocketing year after year!
Noise didn’t rise to the top overnight. They climbed the ladder quarter by quarter, focusing on small wins and steady gains.
Instead of flooding the market with products, they zeroed in on quality—tweaking and refining until they hit perfection.
The strategy? Simple. Know when to shift gears. Some years were all about maximising profits, while others were dedicated to heavy marketing and winning over new consumers.
Their finances tell the story. In FY22, they made a cool INR 36 Cr in profit, but the next year, PAT dropped to INR 88 lakhs. Why? Because they poured money into marketing and, in return, gained millions of new customers and sold millions of units.
“Winning is addictive,” Gaurav says, and, have they been on a winning streak? – you tell us!
In December 2023, Noise made waves with a funding move that turned heads worldwide. This wasn’t just any partnership—it was a statement! By investing in Noise, Bose Corporation sent a clear message: they weren’t sitting on the sidelines. Instead, they were ready to back the #3 player in the wearables game and take on giants like Apple and Samsung.
For Noise, this was exactly what they needed—global exposure. Suddenly, they weren’t just an Indian success story. They were on the global stage, ready to play with the big leagues!
Noise is a powerhouse today, but their journey has been anything but smooth. The consumer electronics space? It’s no playground—it’s a battlefield. And Noise is going toe-to-toe with some serious heavyweights.
Yet, despite the stiff competition, they’ve managed to carve out a space for themselves. Competing with giants like Apple and Samsung, Noise didn’t just survive—it’s thriving. It’s a testament to their bold moves and relentless focus on what customers really want.
Apple. Samsung. Boat!
These are just a few of the Goliaths in the wearables market. To give you some perspective, Apple and Samsung command the lion’s share with premium offerings, Boat has carved a niche with budget-friendly alternatives.
Let’s talk numbers.
In the past year alone, Noise shipped close to 12 million devices—a staggering leap from the 2 million units they were pushing just a few years ago. To put this in context, they’re now churning out nearly 1 million devices a month. Now, that’s keeping pace, literally and figuratively!
This strategy of incremental growth and relentless improvement has allowed Noise to hold its ground against the giants, even as the stakes get higher.
As they look to the future, Noise isn’t resting on their laurels. They’re exploring new frontiers in audio and beyond. They’re not just playing the same old tune—they’re constantly remixing, innovating, and staying ahead of the trends.
So, all-in-all, if you’re a D2C founder, there’s a lot to learn from Noise’s journey. They’ve shown that with the right mix of consumer obsession, product differentiation, and strategic agility, you can make some serious noise in any industry!
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That’s all for this edition!
Keep your eyes and ears open—you might hear more Noise!
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