VCs crowd deal street on quick commerce, D2C success
quick commerce and aggressive demand for newer direct-to-consumer (D2C) brands aided by speedy deliveries on platforms like Blinkit, Zepto and Instamart are fuelling dealmaking in early-to-mid-stage D2C brands, several executives and investors told ET.
New brands have scaled much faster than anticipated due to the quick-commerce channel and that is attracting investor interest.
Kids gift brand Tuco Intelligent is in talks to raise new capital from Fireside Ventures, while Peak XV Partners is likely to pick a stake in healthy bread maker The Health Factory, sources said. Gourmet Garden, a specialised organic fresh supplies brand, has started talks to raise around $10 million from a mix of investors.
Healthy snack company The Whole Truth too has begun early conversations for a new round with its sales doubling to Rs 13-15 crore per month, with a boost from its recently launched protein-powder products, people briefed on the matter said. Venture fund Tanglin Venture Partners has made an investment in noodles brand Master Chow.
Several smaller brands in sectors including personal intimate care are also seeing investor interest as quick commerce becomes a mainstay in D2C brands, people tracking the deals said, adding that the ultra-fast delivery segment has given a major boost to certain categories and SKUs (stock keeping units) on platforms like Zepto and Isntamart.
Executives aware of the plans said new-age brands are in talks to onboard the just-launched Flipkart quick-commerce service, Minutes, too, while also
