“D2C businesses start to mature only at the Rs 600-1,000 crore level”. “Any founder saying they’re selling for synergy purposes at the Rs 50-100 crore level does not make sense”

“While scaling revenues from Rs 2 crore to Rs 20 crore is a 10X jump, the potential of the business cannot be gauged based on an increase that sharp”

One of the reasons why VCs are cherry picking D2C startup in the post-Covid world.

But the existing FMCG players are interested in the tech capabilities and customer database of these D2C brands and end up shelling 4-7x of revenue during the acquisition.

It’s a win-win for both D2C as well as FMCG.

D2C founders end up making more money than the CEOs of these FMCG companies make in a lifetime, and FMCG companies have the trendy products in their portfolio.

D2C consolidation: Value creation for FMCG majors, wealth creation for founders – https://www.moneycontrol.com/news/business/d2c-consolidation-value-creation-for-fmcg-majors-wealth-creation-for-founders-11137551.html


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Categories: Quick Reads