TLDR:
- Accel Partners and Fireside Ventures no longer want to back online-only D2C brands
- Investors are now looking for businesses with an omnichannel strategy
In a recent shift, Accel Partners and Fireside Ventures have decided to stop investing in online-only direct-to-consumer (D2C) brands in India. Instead, they are focusing on businesses that have both online and offline (omnichannel) strategies. The move reflects a broader trend in the industry, where investors are now seeking teams that can go beyond D2C and reach customers through multiple channels.
Until recently, D2C brands were seen as a promising sector, attracting millions of dollars in investments. However, the digital-first approach has not panned out as expected, leading investors to reassess their strategies. Companies like Lenskart, Mamaearth, and Licious, which started as digital-focused brands, have since expanded offline to reach a wider audience.
The report ‘Decoding Omnichannel: Strategies for D2C Brands’ highlights the growing importance of integrating online and offline sales channels. By 2030, offline retail is expected to reach over $2 trillion, while online retail may grow to $150-200 billion in India. The key for brands now is to offer a seamless consumer journey that combines traditional values with modern conveniences.
In conclusion, the focus on omnichannel strategies and the shift away from online-only D2C brands signal a changing landscape in the Indian startup ecosystem. Companies that can adapt and reach customers through multiple channels are more likely to attract investors and succeed in the evolving market.
