Indian D2C Brands Hike Prices Amid Supply Chain Crisis

The Indian direct-to-consumer (D2C) market is currently undergoing a significant repricing phase, driven by a confluence of global geopolitical events and their subsequent economic repercussions. The ongoing conflict in West Asia has triggered substantial crude oil price spikes and exacerbated packaging material shortages, leading to severely squeezed profit margins for numerous brands. This challenging environment is compelling D2C companies across India to fundamentally re-evaluate their pricing models and sourcing strategies to maintain market relevance and operational viability.

This widespread strain is particularly evident across the entire supply chain, especially impacting sectors heavily reliant on imported inputs and petrochemical-derived packaging. Founders within the D2C ecosystem have indicated that while consumer demand largely remains intact, the economic pressure on backend operations has intensified dramatically, with nearly all cost components escalating simultaneously. This scenario is creating an urgent need for adaptive strategies to navigate the broken supply chain economics.

D2C Brands Face Unprecedented Supply Chain and Pricing Pressures

The operational landscape for Indian D2C brands has become increasingly complex, characterized by soaring packaging costs and impending logistics hikes. Factories are struggling under the weight of higher operating expenses, primarily due to increased fuel prices and disrupted supply lines, which collectively make production more expensive and reduce output efficiency. Packaging, in particular, has emerged as a critical pain point, with crude-linked components such as bottles, caps, and dispensers rapidly driving up input costs. This directly impacts brands across various categories, including packaged food, which faces similar pressures from laminate cost spikes and severe disruptions in imported raw materials.

The economic pressure is not confined to manufacturing inputs alone; rising fuel prices are anticipated to soon affect distribution costs significantly. This development poses a greater threat to smaller D2C brands that typically operate with single manufacturing units and less efficient freight networks. In contrast, larger industry players possess the capacity to distribute these rising costs across a more extensive supply base, affording them greater resilience. Many brands are currently attempting to mitigate the impact without abruptly passing on costs to consumers, opting for strategies such as trimming grammage, reducing promotional discounts, or implementing minor price adjustments to safeguard their market share. The ongoing conflict in West Asia has fundamentally disrupted the D2C economic model, necessitating these strategic recalibrations.

Aequs Reports Significant Q4 Loss Amidst Expansion into Consumer Electronics

In a notable financial development, contract manufacturing firm Aequs reported a substantial net loss of ₹53.7 crore in the fourth quarter of FY26, a sharp decline from a profit of ₹8.9 crore in the corresponding period of the previous year. This significant downturn in profitability occurred despite a robust 47% year-over-year increase in operating revenue, which reached ₹367.1 crore. The primary factor contributing to the bottom-line pressure was the considerably high operating costs associated with the company’s strategic foray into the consumer electronics manufacturing sector.

Aequs’s financial performance also saw its EBITDA decline by 23% year-over-year to ₹32 crore, with the EBITDA margin nearly halving to 9%. For the full fiscal year 26, the company’s net loss expanded by 11% year-over-year to ₹113.3 crore, even as its top line surged by 33% year-over-year to ₹1,230.4 crore. These figures underscore the challenges Aequs faces in achieving profitability during its expansion into new, capital-intensive markets, highlighting the substantial investments and operational adjustments required for growth in the competitive manufacturing landscape.

slice Achieves First Full-Year Profitability in FY26, Posts ₹48.4 Cr Net Profit

Fintech platform slice has marked a significant milestone, reporting its first full-year net profit of ₹48.4 crore in FY26, a substantial turnaround from a net loss of ₹216.7 crore in FY25. This impressive financial performance was underpinned by a remarkable 132% year-over-year growth in total income, which reached ₹1,402.7 crore during the fiscal year under review. The company’s net worth also stood strong at ₹875.3 crore as of March 2026, demonstrating enhanced financial stability.

Further reinforcing its robust financial health, slice’s capital to risk-weighted assets ratio (CRAR) was reported at 19.1%, while its Current Account Savings Account (CASA) ratio stood at 39.8%. Retail term deposits and CASA collectively accounted for 94% of slice’s total deposits in FY26, indicating a strong and stable funding base. Additionally, the small finance bank (SFB) saw an improvement in its gross Non-Performing Asset (NPA) ratio, which decreased to 4.81% in FY26 from 6.25% in the previous year. Founded in 2016, slice strategically acquired North East SFB in 2024 following regulatory adjustments to its initial co-branded credit card business model, solidifying its position in the financial services sector.

Fundamentum Launches ₹2,000 Cr AI Deeptech VC Fund; Human Archive Secures $8.2 Mn for Robot Training Data

In a significant move for India’s burgeoning technology investment landscape, Fundamentum cofounder Ashish Kumar has launched a new private investment platform dedicated to backing deeptech and artificial intelligence (AI) startups. This new venture capital fund aims to raise a substantial corpus of ₹2,000 crore from both domestic and foreign Limited Partners (LPs), operating as a stage-agnostic fund. Notably, Infosys cofounder and Fundamentum cofounder Nandan Nilekani will serve as the anchor investor, bringing considerable industry expertise and financial backing to the initiative. Debraj Banerjee has also joined the new fund as a general partner, bolstering its leadership team. Founded in 2017, Fundamentum has previously invested in startups such as Olyv, Whizzo, Spinny, and Kuku FM, and with this new fund, it seeks to capitalize on India’s rapidly growing deeptech economy, which attracted $500 million in investments last year.

Complementing this investment focus on advanced technology, the AI startup Human Archive recently garnered significant attention after securing $8.2 million in funding. The company aims to construct what it describes as the largest human sensorimotor dataset of its kind, serving as critical training material for the physical AI systems that frontier laboratories globally are actively developing. Human Archive is strategically leveraging India’s unique advantages, including its industrial diversity and high labor density, to collect comprehensive data across various sectors such as jewelry, textiles, hospitality, construction, restaurants, and quick commerce within a single geographical region. The startup currently boasts over 120 partnerships in India, employing sophisticated rigged camera setups, depth sensors, motion-capture streams, and Inertial Measurement Units (IMUs) to meticulously record how workers’ hands and bodies perform diverse tasks, laying foundational groundwork for future robotic automation.

Fairdeal.Market Secures $15 Mn for B2B Quick Commerce Expansion; Stroom Targets Protein Snacking Market

The B2B quick commerce platform Fairdeal.Market has successfully raised ₹142 crore ($15 million) in its Series A funding round, led by Bertelsmann India Investments. This capital injection is earmarked for scaling its dark store count, expanding its retailer network to 1 lakh by the end of FY27, and strengthening its last-mile delivery capabilities. Established in 2022, Fairdeal.Market specializes in delivering over 1,000 Stock Keeping Units (SKUs) to small retailers across Delhi NCR within 60 minutes. Having previously raised $3 million last year, the platform currently serves more than 20,000 active retailers in the Delhi NCR region. India’s vast market of over 13 million kirana stores presents a substantial opportunity for platforms like Fairdeal.Market to formalize the Fast-Moving Consumer Goods (FMCG) distributor network, contributing to a homegrown B2B e-commerce market projected to exceed $200 million by 2030.

Simultaneously, the high-protein snacking market in urban India is witnessing rapid growth, attracting innovative players like Stroom. Recognizing the limitations of expensive imported options and often bland local protein bars, the Ahmedabad-based startup, founded in 2022, is focused on making high-protein snacking more accessible and appealing. Stroom differentiates itself by packaging protein into familiar formats that consumers already enjoy, such as bars, wafers, and snack boxes, rather than positioning protein as a compromise. The brand prioritizes taste and texture, utilizing clean-label ingredients to deliver 10-20 grams of protein per serving without the common aftertaste that deters many from functional foods. This approach is particularly relevant in India, where consumers seek nutritional benefits but also expect indulgent and familiar snack experiences. Currently operating as an online-first brand, Stroom is strategically testing demand, refining products, and building a loyal customer base before pursuing broader expansion, including potential retail partnerships to reach a wider consumer base. With India’s protein bar market anticipated to become a $1.3 billion opportunity by 2030, Stroom aims to establish itself as a leading protein snacking brand for Indian consumers.