Dabur Launches INR 500 Cr Venture Arm To Back D2C Startups

Consumer goods giant Dabur India has launched a new investment platform, Dabur Ventures, to back high-growth, digital-first businesses. The company’s board approved a capital allocation of up to INR 500 Cr, which will be fully funded through Dabur’s internal reserves.

Via the new venture arm, Dabur plans to invest in emerging D2C businesses across personal care, healthcare, wellness foods, beverages and ayurveda. The investments will primarily target new-age startups that have strong digital roots and display clear potential for growth and scalability.

CEO Mohit Malhotra said during Dabur’s Q2 earnings call that the conglomerate would restrict its new startup investments to existing categories. However, it will also look at adjacent premium categories that resonate with digital-first Gen Z consumers.

For more context, Dabur’s portfolio is categorised into ayurveda (Dabur Chyawanprash), healthcare (Dabur Honey), personal care (Dabur Red Paste), food & beverages (Réal juices) and home care (Odonil).

“We aim to invest in future-forward businesses that are redefining the consumer experience in our key focus areas,” Dabur India CEO Mohit Malhotra said. “This initiative underscores our commitment to innovation-led growth, while accelerating our premiumisation journey and opening doors to emerging consumer spaces that define the future of our industry.”

The move comes at a time when India has seen a sharp rise in several traditional FMCG giants eyeing stakes or complete buyouts of D2C startups to modernise their portfolios or enter new categories. 

In this, Hindustan Unilever recently bought 90.5% stake in D2C startup Minimalist for about INR 2,706 Cr in cash. More recently, Heritage Foods acquired a majority 51% stake in D2C dessert brand Get-A-Way for INR 9 Cr.

Dabur’s entry into this space also mirrors a growing trend among large Indian conglomerates and family offices setting up dedicated investment arms to back consumer-facing startups.

 For instance, Gruhas Collective Consumer Fund (GCCF) has been actively investing in consumer brands and D2C ventures. The D2C focussed investment firm has backed consumer-facing brands like The Fresh Press, BoldCare, Bummer, Emomee, Bebe Burp, Fur Jaden and SuperYou.

Dabur, which has already been experimenting with premium and niche product categories, now seems to be positioning itself for the next wave of consumer demand. 

On the financial front, Dabur reported a 6.5% YoY uptick in its Q2 net profit to INR 453 Cr and a 5.4% YoY increase in its revenue to INR 3,191 Cr.