D2C’s Toughest Test Yet, Kissht IPO Day 2 & More

D2C’s Manufacturing Dilemma

Indian D2C brands are facing a new brutal reality. Manufacturers are rewriting contracts and moving to the ‘cash and carry’ model as the fallout from the conflict in West Asia hits production. So, why are manufacturers and D2C brands suddenly at odds?

Supply Under Strain: From Morbi to Bahadurgarh, production has slowed at manufacturing hubs. Worker protests, wage hikes and migration are forcing manufacturers to raise pay or lose labour, which is adding another 15% or so to operating costs in some cases. The conflict in West Asia has only worsened matters.

Costs Keep Climbing: Due to geopolitical tensions, raw materials, packaging and freight are all getting pricier. Dollar-denominated inputs have become more expensive as the rupee weakens, while shipping costs have surged due to the West Asia conflict. In many factories, fluctuating power supply and reliance on diesel generators are making production even less predictable.

Simultaneously, tighter supply and rising cylinder prices have constrained LPG-dependent production lines. 

The New Normal: The relationship between D2C brands and manufacturers seems to have gone awry. Standard 45-60 day credit lines are being replaced by a cash and carry model, which is drying up the working capital of smaller startups. In a desperate bid to protect thin margins, D2C founders are now personally stepping into procurement meetings, bypassing agents to vet vendors like high-stakes investors.

The Brand Question: For now, many D2C brands are trying to absorb the pain by trimming discounts, padding inventory, cutting marketing spend and renegotiating with suppliers. But that cushion may not last long. If commodity and fuel prices stay elevated, the industry may have little choice but to pass the higher costs on to consumers. 

With stressed manufacturers grappling with their own issues, why is the math not adding up for an average D2C brand? Let’s find out…

From The Editor’s Desk

Kissht IPO Day 2

• The lending tech startup’s public issue was subscribed 60% on the second day, receiving bids for 2.38 Cr shares against 3.97 Cr shares on offer. QIBs lead the pack with 1.45X oversubscription, followed by NIIs and retail investors with 0.5X and 0.16X, respectively. 
• Kissht’s public issue comprises a fresh issue of shares worth up to ₹850 Cr and an OFS of up to 44.4 Lakh shares. It set an IPO price band of ₹162-171 for the public issue, valuing the company at about ₹2,881 Cr at the upper end of the spectrum.
• Founded in 2015, Kissht is a lending tech platform that offers digital personal and business loans. It also offers health-related insurance products and secured loans through loans against property. 

Ather’s Mixed Q4 Show 

• The EV maker company managed to trim its net loss by 57.2% YoY to ₹100.2 Cr in Q4 FY26, even as losses rose sequentially by 18.4%. However, operating revenue surged 73.7% YoY and 23% QoQ to ₹1,174.7 Cr.
• Ather also claimed that it sold a record 83,418 units sold in the March 2026 quarter. The company attributed the growth to its expanding retail footprint and the strong performance of its family scooter Rizta. However, expenses also rose 42.2% YoY to ₹1,314 Cr. 
• In the full FY26, Ather’s loss declined 36.3% YoY to ₹517.2 Cr, while the top line rose sharply 62.8% YoY to ₹3,671.8 Cr. While it sold 2.63 Lakh units during the fiscal, its retail network doubled YoY to 700 experience centres.

Epigamia Rejigs Top Brass

• The D2C brand has roped in former Mars executive Ritesh Gauba as its CEO. In addition, the company also announced the elevation of COO Ankur Goel to the role of cofounder. 
• Founded in 2015, Epigamia began by selling Greek yoghurt, but has since expanded to products like artisanal curd, snack packs, mishti doi, and smoothies. It claims to be present at 25,000+ retail touch points and has raised $60 Mn to date.
• Epigamia operates in the broader Indian D2C segment, which is witnessing rapid growth on the back of growing disposable incomes, consumer demand for niche products and convenience. The space is projected to become a $300 Bn opportunity by 2030.

Sarvam, Pixxel Bound For Space

• The AI juggernaut has partnered with the spacetech startup to launch India’s first orbital data centre satellite, called Pathfinder, by Q4 2026. 
• The 200-kg satellite will be designed, launched and operated by Pixxel, while Sarvam will handle its AI-based training and inference directly in orbit. The partnership will target companies that may benefit from orbital data centre deployment.
• This follows NeevCloud and Agnikul signing an MoU to deploy inference infrastructure in low-earth orbit, roughly 300 km above the planet. Just a day ago, Pixxel rival GalaxEye also launched the world’s first OptoSAR satellite from California.

CHOSEN Bags $5 Mn

• The D2C skin and hair care brand has raised nearly ₹48 Cr in its Series A round led by Fireside Ventures to expand its pipeline of products, scaling its centre of excellence and expanding its team.
• Founded in 2020, CHOSEN offers IoT-powered products across categories like skincare, haircare, and wellness. It claims to have over 55 SKUs under its belt. With the latest round, the brand has raised more than $6 Mn to date.
• The funding comes at a time when the beauty and personal care sector is seeing healthy growth, buoyed by strong demand, evolving consumer preferences and the rise of well-funded D2C brands. The BPC market is expected to cross $28 Bn+ by 2030.

Inc42 Markets

Inc42 Startup Spotlight

How Coratia Is Building Undersea Robots 

Critical underwater infrastructure is hard to inspect, even harder to protect, and often impossible to repair quickly with human divers alone. Coratia is tackling this gap with its indigenous underwater robots built for surveillance and inspection.

Charting The Seas: Founded in 2021, Coratia Technologies is a deeptech startup focused on marine robotics. Its portfolio includes Jaladuta, Jalasimha, Oceanaus and Navya. Jaladuta is built for civilian and industrial inspection, while Jalasimha is a remotely operated vehicle with 300-metre diving capability. Oceanaus is a compact modular robot, and Navya is an autonomous surface vehicle for hydrographic survey and bathymetry.

Defending Subsea Assets: As geopolitical tensions draw attention to undersea cables and other critical infrastructure. Coratia claims that its robots can inspect bridges, dams, docks, pipelines and cables. It also claims that its robots support mine-detection and intrusion assessment missions that go beyond the limits of human divers.

Built For Scale: Backed by the defence ministry’s iDEX scheme, the startup has already received a ₹66 Cr contract from the Indian Navy. It also works with defence agencies as well as private and public-sector clients such as Indian Railways, SAIL, IOCL, Tata Steel, and Hindalco. With the Indian undersea robotics market projected to cross $310 Mn by 2032, can Coratia become India’s robotic layer for protecting the ocean floor?

Infographic Of The Day

A good chunk of Indian AI talent is moving abroad in search of greener pastures. But what if just 10% of them stayed and built in India? Homegrown Bharat1, India’s first AI Superpark, is creating the infrastructure to anchor this AI talent at home…

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