The D2C space is seeing additional pressure as venture funding is drying up with rising interest rates, which have led to selective funding: Report
Growth prospects of D2C brands could likely face challenges from different quarters such as lower liquidity, high customer acquisition cost, and higher inflation: HDFC Securities
D2C channel ‘here to stay’, but firms will have to expand to offline channels to scale up and achieve sustainable growth, the report said
Higher interest rates and decline in venture funding have emerged as the key near-term challenges for the Indian direct-to-consumer (D2C) companies, brokerage HDFC Securities said in a recent report.
“…The D2C space is seeing additional pressure as venture funding is drying up with rising interest rates, which have led to selective funding. Given the D2C space is still nascent, companies need external funding to grow. The funding constraints may cause a slowdown in the near-term,” it said.