High Interest Rates, Decline In Funding Key Near-Term Challenges For D2C Space: HDFC Securities

High Interest Rates, Decline In Funding Key Near-Term Challenges For D2C Space: HDFC Securities

SUMMARY

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.

No results were found for "".
  • «
  • 1
  • »
modal lock

Continue Reading With A Free Inc42 Account

Get the most out of your Inc42 experience by creating a free account. Enjoy personalized recommendations, ad-lite browsing, and access to our exclusive newsletters.