The Indian ecommerce landscape went parched with the funds tap running dry for around two years until green shoots of revival began showing up late last year, yet direct-to-customers (D2C) brands remained verdant, thanks to a booming digital economy.

Despite a 42% slump in investments to $1.5 Bn in 2024, the D2C brands cornered $840 Mn, or 55% of the pie, staying the course to reach $300 Bn by 2030 on the back of rising internet penetration, evolving consumer preferences, and expanding digital infrastructure.

But scaling a consumer brand in today’s climate is far from a straightforward approach. Founders need to navigate capital constraints, rising marketing costs, shifting consumer behaviours and a crowded digital landscape. This is where the role of strategic partners becomes critical – not just to raise funds but also to build sustainable and enduring businesses.

“India’s D2C ecosystem is an endless market that can be disrupted by a brand or an innovator emerging from your very own neighborhood any day,” says Keshav Agarwal. The investment banker founded Daylight Capital to go beyond the spreadsheets to help founders think holistically about products, positioning, operations and scale.

“Our vision is to redefine the role of financial advisors in India’s startup ecosystem and, accordingly, we have positioned Daylight as a long-term partner to D2C founders to help them make smarter decisions not just during fundraisers, but along the way.”

In an interaction with Inc42, Agarwal spoke about his journey, shared insight on the shifting dynamics of India’s D2C market, and argued why Tier II and III cities are coming up as the next frontiers. He also outlined his vision for the future of Indian consumer brands and what it will take to build the next generation of household names.

Here are the edited excerpts from the conversation…

Inc42: Let’s start with your journey. What led you to set up Daylight Capital? What was the vision behind a financial advisory firm focussed on consumer brands?

Keshav Agarwal: I have always been fascinated by startups, their ambitions and the way capital shapes their journeys. After completing my CA in 2021, I stepped into investment banking only to experience the market turn on its head. Within months, the funding winter set in, just as I was preparing the ground to establish myself.

The market wasn’t simply going through a slump, in fact,........

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