By Jyoti Banthia Comments READ LATER Several direct-to-consumer (D2C) brands in food and beverages sector are drawing significant amounts of venture funding. The influx of new start-ups with innovative product ranges has revitalised the sector. Several F&B start-ups including Boba Bhai, Blue Tokai Coffee Roasters, Plix, Pluckk and others have been making waves in the industry, backed by investors’ trust.
The direct-to-consumer (D2C) start-ups raised $635.5 million in 2023 across 174 rounds. In the first five months of this year, the D2C brands have raised $278.
1 million, according to data from intelligence platform Tracxn. When economies grow, consumer spending naturally shifts towards enriching experiences in areas like travel, fashion, lifestyle, and notably, food. This has led to a surge in demand for unique and premium food products, noted industry executives.
The Direct-to-Consumer (D2C) model is thriving because it meets these evolving consumer needs by offering personalised, high-quality food experiences, they added. “Venture capitalists are particularly interested in this space due to its potential for high returns and the opportunity to diversify their portfolios. At Fireside Ventures, we have invested in a few new-age promising F&B brands, such as Frubon, Sweet Karam Coffee, The Baker’s Dozen, Slay Coffee, Yoga Bar, and Samosa Singh.
We’re also particularly interested in the emergence of strong regional opportunities such as Frubon and Sweet Karam Coffee. Th.
