D2C brands attract substantial investments as demand for menswear rises

23 June, Mumbai 2025

Direct-to-consumer (D2C) fashion brands in India have been attracting substantial investments lately. Founded in 2017, men's apparel and accessories brand The Bear House has secured Rs 50 crore in a Series A funding round led by JM Financial India Growth Fund III. The brand aims to generate Rs 300 crore in revenue by FY26, targeting 200 per cent growth, and plans to open about 25 offline stores this fiscal year to enhance its omni-channel presence.

This trend follows other significant investments in the D2C menswear space. In May, Snitch raised Rs 278.9 crore in a Series B round led by 360 One Asset Management Fund. In April, a popular brand known for its quirky pop culture merchandise, The Souled Store acquired Redwolf and is now preparing for an Initial Public Offering (IPO).

As per industry estimates, driven by increasing online adoption among Gen Z consumers and rising demand from Tier-II and Tier-III cities, India's D2C fashion market is set to reach $10 billion by FY28.

Shuchi Pandya, Principal, Fireside Ventures, notes, increased order volumes and robust demand is driving growth in this segment. D2C apparel brands in India secured funds worth $77.1 million in the past year despite a 34 per cent Y-o-Y decline in funding quantum, shows data from Tracxn. Brands demonstrating strong unit economics, capital efficiency, product differentiation, and effective omni-channel strategies are attracting investors, highlights Neha Singh, CEO.

Vedang Patel, Co-founder, The Souled Store, attributes this growth to hyper-personalization via data and AI, coupled with a preference for sustainable, value-driven brands. He emphasizes, a data-driven approach allows for rapid design iterations and better inventory control, boosting profitability.

The rise of quick commerce platforms like Zepto, Slick, Knotgram, and Myntra's M-Now, offering 10-60 minute deliveries, is opening new avenues for D2C brands, says Shivam Tripathi, Co-founder, Newme. He affirms, these ‘new-age’ brands will lead the next wave of apparel market growth, leveraging quick delivery to meet consumer demand for the latest trends. Now expanded to Delhi-NCR and Mumbai, Myntra's M-Now service, has already seen nearly 2x growth in daily orders, indicating a clear consumer shift towards immediacy.

With the apparel category widenening its reach, even traditional industry giants are acquiring D2C brands and embracing omni-channel strategies to cater to the evolving, tech-savvy customer base.

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