D2C In Repricing Mode, Aequs Bleeds In Q4 & More

Indian D2C Brands Rethink Pricing, Margins

The war in West Asia has triggered crude oil spikes, packaging shortages and squeezed margins, forcing brands to rework pricing and sourcing to stay relevant. So, can D2C brands survive this broken supply math?

Supply Chain Strained: The strain is showing up across the supply chain, especially in categories that rely heavily on imported inputs and petrochemical-linked packaging. Founders claim that the demand is still intact, but the pressure has multiplied on backend economics, where everything is becoming more expensive at once.

Packaging Costs Spiral: Factories are under pressure as higher operating costs, due to fuel hikes and disrupted supply lines, are making production more expensive, slowing output and tightening margins. On top of this, packaging is also emerging as a major pain point for D2C brands as crude-linked inputs like bottles, caps and dispensers are quickly feeding into costs. 

Packaged food brands are facing a similar squeeze, battling spikes in laminate costs and severe disruptions in imported raw materials. 

Logistics Cost Hike Looming: The pressure is no longer confined to inputs and manufacturing. Rising fuel prices will soon start to affect distribution costs as well, especially for smaller brands with single manufacturing units and less efficient freight networks. Larger players can spread the pain across a broader supply base, but newer D2C brands have less room to absorb the hit.

Most brands are still trying to soften the blow rather than pass it on abruptly. Some are trimming grammage, while others are reducing discounts. Many players are also increasing prices by small amounts to protect market share. As players mull passing on the costs to end customers, here is how the war in West Asia has broken the D2C economics…

From The Editor’s Desk

slice’s First Profitable Year

• The small finance bank posted a net profit of ₹48.4 Cr in FY26 as against a net loss of ₹216.7 Cr in FY25. Meanwhile, total income grew 132% YoY to ₹1,402.7 Cr during the fiscal under review.
• slice’s net worth stood at ₹875.3 Cr as of March 2026, while its capital to risk-weighted assets ratio stood at 19.1%. The bank’s CASA ratio also stood at 39.8%. Retail term deposits and CASA together accounted for 94% of slice’s deposits in FY26.
• The SFB’s gross NPA ratio improved to 4.81% in FY26 as against 6.25% in the year-ago period. Founded in 2016, slice acquired North East SFB in 2024, after RBI clamped down on its initial business model of offering co-branded credit cards.

Fundamentum’s New AI Fund

• The VC firm has launched a new private investment platform to back deeptech and AI startups. With a total corpus of ₹2,000 Cr, the stage-agnostic fund will be looking to raise the capital from both domestic and foreign LPs. 
• Infosys’ cofounder and the VC firm’s cofounder Nandan Nilekani will be the anchor investor in the fund. Additionally, Debraj Banerjee has joined the new fund as a general partner. 
• Founded in 2017, Fundamentum is a tech-focussed VC firm that has so far invested in startups like Olyv, Whizzo, Spinny and Kuku FM. With the new fund, it will be looking to grab a piece of India’s emerging deeptech economy, which raised $500 Mn last year.

Aequs Slips Into The Red 

• The contract manufacturing company plunged into the red in Q4 FY26, reporting a loss of ₹53.7 Cr against a profit of ₹8.9 Cr in the year-ago quarter. The bottom line was impacted on account of high operating costs due to its foray into consumer electronics.
• This subdued show came despite operating revenue zooming 47% YoY to ₹367.1 Cr. However, Aequs’ EBITDA declined 23% YoY to ₹32 Cr, while EBITDA margin nearly halved YoY to 9%.
• For the full FY26, Aequs’ net loss rose 11% YoY to ₹113.3 Cr, while the top line zoomed 33% YoY to ₹1,230.4 Cr.

Building Data For Training Robots

• The AI startup grabbed the spotlight this week after it raised $8.2 Mn to build, what it calls, the largest human sensorimotor dataset of its kind. Simply put, it is building the training material for physical AI systems that frontier labs are racing to build. 
• Human Archive is betting heavily on India because the country offers both industrial diversity and labour density, letting it collect data across jewellery, textiles, hospitality, construction, restaurants and quick commerce in one geography.
• The startup claims that it already has more than 120 partnerships in India, though not all are active, and it uses rigged camera setups, depth sensors, motion-capture streams and IMUs to record how workers’ hands and bodies perform tasks.

Fairdeal.Market Bags $15 Mn

• The B2B quick commerce platform has raised ₹142 Cr in its Series A round led by Bertelsmann India Investments to scale its dark store count, expand its retailer network to 1 Lakh by FY27-end and strengthen last-mile delivery capabilities. 
• Founded in 2022, Fairdeal.Market is a B2B quick commerce platform that claims to deliver 1,000+ SKUs to small retailers across Delhi NCR within 60 minutes. Having raised $3 Mn last year, it claims to cater to over 20,000 active retailers in Delhi NCR.
• India is home to more than 13 Mn kirana stores, offering a healthy market for players like Fairdeal to formalise the FMCG distributor network. At the heart of all this is the homegrown B2B ecommerce market, projected to cross $200 Mn by 2030.

Inc42 Markets

Inc42 Startup Spotlight

Can Stroom Disrupt India’s Protein Snacking Market?

High-protein snacking is emerging as a fast-growing trend in urban India. Yet, the imported options available in the market are expensive, while many local protein bars taste bland or feel too functional. Stroom is trying to close this gap with its protein-rich everyday snacks.

A Familiar Format: Founded in 2022, the Ahmedabad-based startup is focused on making high-protein snacking more approachable. Instead of treating protein like a compromise, Stroom is packaging it into formats consumers already enjoy, such as bars, wafers and snack boxes.

Taste Comes First: Stroom’s biggest differentiator is its focus on taste and texture. The brand uses clean-label ingredients and aims to deliver 10-20 grams of protein per serving without the usual aftertaste that turns many buyers away from functional foods. This matters in India, where consumers want nutrition, but still expect their snacks to feel indulgent and familiar.

Built For Daily Use: The startup is currently online-first, giving it room to test demand, refine products and build a loyal customer base before expanding more broadly. It is also exploring retail partnerships, which could help the brand reach consumers beyond digital shoppers and into more mainstream shopping habits.

With India’s protein bar market expected to become a $1.3 Bn opportunity by 2030, can Stroom become the go-to protein snacking brand for Indians?

Infographic Of The Day

From D2C specialty brands to home brewing kits, a new coffee culture is quietly brewing beyond India’s metros. So, which D2C brands will define India’s specialty coffee wave?

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