New-age Indian Consumer brands to capture Domestic and International markets as Indian ConsumerTech scales to USD 300Bn, says a report by Chiratae Ventures, 1Lattice & Google
FEB 7, 2025
Bangalore, February 7, 2025 – Chiratae Ventures, in collaboration with Google and 1Lattice, has unveiled its ConsumerTech report titled “From Local to Global: The Evolution of Indian Brands’ Distribution”. The Indian ConsumerTech industry is set to rise as the total addressable market will reach ~USD 300Bn by 2027, growing at a CAGR of ~25%, and the report examines the evolving landscape of Indian brands, offering a supply-side perspective on opportunities for entrepreneurs to build and scale both domestically and internationally.
In ConsumerTech, we see significant opportunities to create impactful brands that address unmet consumer needs while leveraging innovative business models. This report is designed to help founders navigate the complexities of supply chains, operational models, and strategic levers essential for scaling in key sectors.
Supply chain and distribution in India have been considered for years, as a well-oiled machine, sourcing, manufacturing and distributing products to the remote corners of the country. But with the onset of insurgent brands innovating in an agile and proactive manner to capture early signals before they become dominant trends – a deeper understanding of the margins that exist at each stage of the value would help the entrepreneurs building in the space understand the value they can capture and scale profitably.
Strategic Levers for Success
The report lays out a framework of 12 Right-to-win strategies that have been observed by both legacy and emerging brands. Some of the key levers are highlighted below:
- Craft a compelling brand narrative to build trust and establish a strong emotional connection with consumers.
- Develop standout hero products that anchor the brand’s identity and create lasting consumer recall.
- Foster community engagement to drive customer loyalty and advocacy.
- Pursue vertical integration to control costs, ensure quality, and streamline operations.
- Offer a diverse SKU portfolio to cater to a broad range of consumer preferences.
- Drive innovation to stay ahead of the competition and anticipate evolving consumer needs.
- Adopt an omnichannel approach for seamless, integrated customer experiences across platforms.
Each category requires a tailored strategy for success at different stages of their growth. By addressing the distinct challenges and opportunities within these sectors, founders can position themselves to scale efficiently and establish resilient brands with a lasting global impact.
Anoop Menon, ConsumerTech lead for Chiratae Ventures, on the launch of the report, shared, “Chiratae has been at the forefront of ConsumerTech investing since 2006 and have partnered with stellar founders who have built Myntra, Firstcry, Lenskart, Cult.fit, Curefoods to name a few. India has seen close to 5-6 years of the recent wave of new-age brands, and we have created a clear framework of right-to-win in specific categories. The report is our perspective on capturing the value-chain in building new-age brands and capturing domestic and international markets.”
Emerging Consumer Categories
This report highlights high-potential categories in the domestic market, such as health foods, pet care and athleisure and provides deep insights into supply chain dynamics and go-to-market strategies. Health foods, with a CAGR of 20%, and Pet care, with a 17% CAGR have been observed as fast-growth subsegments in the emerging brand’s segment, and Athleisure can potentially reach USD 7Bn by 2028 – opening exciting opportunities for new startups to build.
For the above categories, key success factors highlighted for winning in the Domestic markets include Innovating around Hero Ingredients in Health and pet foods, Community building around themes and passion – be it fitness enthusiasts or pet parents. Common theme to win also include Omnichannel reach across GT and MT to win offline markets.
The report also highlights categories such as Lab-grown diamonds, Millet-based foods and Ayurveda; for these, there is a large export market seen, right-to-win emerges from Technology innovation and R&D as well as Brand building and communication to appeal to the global markets.
Abhilasha Jaju, Director – Financial Investors, 1Lattice, shared, “With rising customer expectations and the changing dynamics of how brands reach customers, distribution in India is no longer a one-size-fits-all model. D2C brands today are redefining industry standards by paving the way for more agile and efficient models. This report provides a sector-wide lens to founders on domestic and export-oriented distribution models, highlighting key operational levers and directional margins at each step. Understanding these nuances will be crucial for brands looking to scale sustainably and build future-ready, customer-centric supply-chains – an approach that aligns with 1Lattice’s mission to empower businesses with strategic intelligence and actionable solutions.”
The discerning voice of Indian consumers is driving category creation, consumption trends and business models in ConsumerTech. New and emerging categories and distribution models to serve the USD 300 Bn market by 2027-28 will be led by aspiring entrepreneurs building in the white spaces as India’s consumption-led growth continues.
Access the report here – https://www.chiratae.com/consumertech-report-2025/
About Chiratae Ventures:
Chiratae Ventures India is an 18-year-old Indian technology venture capital fund advisor, having advised funds that collectively (across seven funds) have $1.3 Bn AUM, 130+ investments, 56 exits, eight Unicorns, four IPOs and a track record of having returned approximately $900 million capital to LPs in the last 13 years. The funds advised by Chiratae Ventures India have investments across sectors such as ConsumerTech, SaaS, FinTech, and HealthTech and have been early backers of companies such as Curefoods, Cult.fit, Fibe, FirstCry, Flipkart, Lenskart, Myntra, Pixis, PolicyBazaar and Uniphore, among many others.
For more details or interviews regarding the report, reach out to:
Tanvi Dubey, Head Marketing, Chiratae Ventures
tanvi@chiratae.com |8792059986
About 1Lattice:
1Lattice is a technology-enabled decision support organization. Our mission is to disrupt business decisions through AI/ML and produce meaningful insights that can be trusted by decision-makers. With a holistic approach focusing on the ‘What and Why’, 1Lattice stands for the ‘one-ness’ of data and the people network. 1Lattice is your 360-degree business decision support partner with a tech-enabled service stack of consulting, advisory, and research. Powered by advanced tech tools and unique data-gathering approaches, it’s your one-stop shop for streamlining all your key business practices.https://www.1lattice.com/
For any media queries, reach out to:
Urbashree Bayan, Associate Manager – Corporate Communications, 1Lattice
urbashree.bayan@1lattice.com |7838566416