D2C brands raise funds to boost sales through quick-commerce platforms

The growing trend of rapid deliveries in India is driving direct-to-consumer (D2C) brands to secure funds specifically aimed at expanding their presence and increasing sales through quick-commerce (qcom) platforms like Blinkit, Zepto, and Swiggy Instamart. These brands are allocating substantial portions of their marketing budgets to qcom, which has become a preferred avenue for growth.

Beauté Secrets, a Gurugram-based beauty tools brand, recently raised Rs 1.6 crore from Velocity, a financing platform backed by Peter Thiel’s Valar Ventures, to expand its operations on qcom platforms and introduce new products to its lineup. Beauté Secrets specialises in daily care items, making qcom an ideal fit for the company.

“We have just begun leveraging qcom, and we are already seeing remarkable results in such a short time,” said Harika Aneja, co-founder of Beauté Secrets. “Currently, qcom accounts for 20-25 per cent of our online sales. However, we expect this share to grow, with projections indicating that up to 50 per cent of our sales will soon come from these channels,” she added.

The qcom sector in India is currently valued at around $5.5 billion and is projected to grow at a compound annual growth rate of 45 per cent, reaching $30 billion by 2029-2030, according to industry estimates.

Qcom’s secret sauce for success

“There is a strategic shift across the D2C landscape, with more brands allocating dedicated budgets for qcom. It’s no longer just an emerging trend but a necessity to engage consumers at the moment of need,” said Ninad Karpe, founder and partner of 100X.VC, an early-stage venture capital firm that has invested in D2C firms like Beyond Snack Kerala Banana Chips, abCoffee, Little Farm, and The Naturik Co.

According to Karpe, qcom provides D2C brands a distinct competitive advantage that traditional channels cannot offer.

“Beyond rapid delivery, it enables hyper-targeted marketing, allowing brands to focus on specific geographies and demographics with precision, maximising their return on investment,” he said. “Qcom is poised to become the preferred channel for D2C brands in the near future,” he added.

Electronics in turbocharged mode

D2C brands are rapidly scaling through qcom, with growth in this channel outpacing traditional e-commerce for many companies, reported by Business Standard.

While grocery and daily essentials remain a staple in qcom, many platforms are swiftly expanding into higher-margin categories, including electronics.

Platforms like Blinkit, Zepto, and BigBasket are already witnessing unprecedented demand for smartphones — particularly the Apple iPhone. Now, personal computer (PC) manufacturers are also looking to join the trend, as previously reported by Business Standard.

Although it is still early days for smartphones and PCs, qcom is proving to be a high-growth channel for wearable brands like Boult and Noise.

“Boult is channelling a larger proportion of its marketing spend toward qcom platforms compared to the current revenue contribution from these channels,” said Varun Gupta, co-founder of Boult.

According to Gupta, one of the main challenges with qcom is raising awareness about the availability of electronics, as these platforms are primarily associated with grocery products.

“However, the qcom platforms themselves are making substantial investments to change this perception, and we are strategically supporting these efforts. As demand for fast, efficient deliveries increases, this channel is becoming a prominent growth opportunity for Boult,” he added.

Similarly, qcom is aiding Noise in boosting its online sales. “At Noise, we are strategically investing in marketing to enhance our presence on qcom platforms. Qcom has emerged as a crucial driver of our online sales, with its contribution steadily increasing,” said a spokesperson for Noise.

As of the second quarter of the calendar year 2024, Noise and Boult rank as the second and third largest players in the Indian wearables market, respectively, according to data from the International Data Corporation.

D2C brands seize the speed edge

Recognising the value of qcom, D2C brands are also investing in building infrastructure and logistics to establish their own quick-delivery services, independent of existing qcom platforms.

Beauty and personal care giant Nykaa recently piloted its 10-minute delivery service in select areas of Mumbai, covering 5 per cent of its stock-keeping unit base.

Similarly, gifting platform FNP has announced the launch of its new 30-minute delivery service across 36 cities nationwide.

“Qcom is a natural extension of FNP’s ability to meet customer needs with speed and precision, and we’re optimistic about its potential. It complements our existing capabilities and serves as a valuable growth driver,” said Avi Kumar, chief marketing officer of FNP.

According to industry observers, qcom can be a viable growth driver for D2C brands if leveraged effectively.

“In the medium to long term, it offers a sustainable growth channel for D2C brands if approached strategically. The key lies in leveraging qcom not just for short-term sales spikes but as a core component of the brand’s customer experience and loyalty-building efforts,” said 100X.VC’s Karpe.