In a strategic move to strengthen its foothold in the direct-to-consumer (D2C) business in India, Pepperfry is doubling down on omnichannel expansion, franchise growth, and the B2B segment. As part of its evolving D2C business model in India, the company aims to boost topline growth and optimize margins over the next 12–18 months.
As per the latest D2C startup news, the homegrown D2C brand plans to significantly increase its studio footprint across tier 2 and tier 3 cities, offering a seamless blend of online and offline experiences. The omnichannel D2C strategy, paired with integration into quick commerce platforms like Zepto and Instamart, positions Pepperfry to gain from high-frequency, convenience-driven shopping.
To enhance operational capabilities, Pepperfry raised INR 43.3 Cr in fresh funding in June 2025 from existing investors—adding to its lifetime funding of INR 1,200+ Cr from marquee names like Norwest, Goldman Sachs, and Pidilite Ventures. The fresh capital supports House Brands innovation, mass-market expansion through Mintwud, and tech investments such as AI, AR/VR, and CRM integration for a more personalized customer journey.
Despite a 31% revenue drop to INR 187 Cr in FY24, the company narrowed losses by 37% (INR 118 Cr), largely by cutting costs—showcasing how even VC-backed D2C brands are focusing on sustainable growth. Pepperfry now expects GMV growth to be driven by enhanced D2C supply chain innovation and stronger customer engagement.
As the D2C ecosystem in India evolves, Pepperfry’s strategic pivot aligns with broader D2C market trends for 2025, targeting underserved segments through B2B outreach and mass customization. It reinforces the brand’s place among the fastest-growing D2C startups in India with a well-rounded go-to-market strategy for both retail and online channels.