“If you cross Rs 150 crore in revenue and the growth is decent and burn not high, you can raise venture funding easily. If not, you need to start weighing options.”

This statement by one of India’s top venture-capital managers captures a familiar reality of direct-to-consumer brands, which must shape up or ship out.

Men’s grooming brand Beardo sold its business to FMCG major Marico when it had revenues of about Rs 60 crore. MyGlamm acquired The Moms Co for Rs 500 crore last year. Moms Co closed FY21 with a topline of Rs 48 crore. Haircare player BBlunt, which made Rs 50 crore in FY21, was bought by Mamaearth.

It is getting even harder for D2C startups to raise capital because the market dynamics have made venture funds more discerning while backing players.