Delhi NCR Emerges As India’s Top D2C Hub

Delhi NCR emerged as India’s leading startup hub for the D2C ecosystem, topping the charts in both deal count and funding, according to data from Inc42 Datalabs’ D2C 3.0 Report 2026. 

Between 2015 and Q1 2026, D2C startups in Delhi NCR attracted over $3.5 Bn in funding across 434 deals.

Some of the recent key deals involving D2C brands from the national capital region include Bombay Shaving Company’s $16.3 Mn round, Wingreens Farms’ $12.6 Mn Series D round, and Moxie Beauty’s $15 Mn Series A round. 

Notably, Delhi NCR also produced some of India’s most successful exits for category-leading D2C brands. For instance, Gurugram-based Lenskart boasts a $9 Bn market cap and is trading at a 35% premium over its listing price. Mamaearth parent Honasa Consumer is also valued at over $1 Bn+ and trades at a 5% premium to its IPO price. 

In terms of funding amount, Delhi NCR was followed by Bengaluru ($3.4 Bn) and Mumbai ($2 Bn). However, Mumbai was second in terms of deal count, with D2C startups based out of the financial capital clocking 362+ deals between 2015 and Q1 2026, while Bengaluru raked in 342 deals.

Anup Jain, founding partner at Bluegreen Ventures, attributed the rise of Delhi NCR and Bengaluru as D2C hubs to the faster growing startup ecosystem in the two cities compared to Mumbai, which is home to several legacy consumer companies such as Hindustan Unilever, Colgate-Palmolive, Marico and Procter & Gamble.

“Over time the consumer brand ecosystem has spread out to Bengaluru and Delhi NCR because the entrepreneurial startup ecosystem has developed away from Mumbai. This is probably why the D2C ecosystem is centering around these two cities,” he said.

According to Apurva Dixit, VP of investments at Blume Ventures, “There’s a growing tide of pre-seed and seed stage investors in consumer brands in the NCR region, and this has contributed to a strong early stage brand ecosystem there.”

Beyond the top three metro cities, Pune was the top emerging startup hub for the D2C segment, with brands based in the city raising $554 Mn raised across 32 deals. 

Mumbai Fastest Growing D2C Hub 

According to the report, D2C startups from Delhi NCR, Mumbai, and Bengaluru collectively raked in 89% of the country’s $10 Bn D2C funding in the past 11 years. 

Within these three, Mumbai was the fastest-growing hub with a 27% funding CAGR during 2020-25, followed by Delhi NCR at 22% and Bengaluru at 8%. 

Notably, India’s Silicon Valley Bengaluru, once regarded as the clear leader in the D2C ecosystem, experienced fluctuations over time due to changes in capital allocation. 

While it dominated the ecosystem in 2020 during the peak of tech-first D2C models, the momentum shifted towards Delhi NCR between 2022 and 2024 as investors prioritised omnichannel capabilities, manufacturing, and supply chain depth. By 2025, Bengaluru regained a slight edge as the industry pivoted towards AI-led retail and quick commerce. 

Today, the ecosystem recognises the unique functional strengths of each of these metro cities. Delhi NCR serves as the powerhouse for manufacturing and scale, Mumbai dominates media and distribution, and Bengaluru remains the epicentre for technology and product innovation.

What’s In Store For India’s D2C Brigade?

The long-term outlook suggests that D2C is all set to becoming the primary engine of India’s digital economy. Between 2026 and 2031, the broader Indian ecommerce market is projected to add $285 Bn in gross merchandise value (GMV), with D2C brands expected to capture nearly 86% of this value, or $245 Bn. 

The D2C segment is projected to grow at a CAGR of 37%, outpacing the broader ecommerce market’s 22% growth rate.

Yet, the meaning of the term D2C itself has also undergone a shift, according to Jain. He believes that the earlier wave concentrated purely on online-only businesses, while the D2C of today has become more omnichannel as both marketplace platforms and offline channels become significant. 

“Earlier, people were trying to build brands purely online, but now all channels have an important role to play in brand development as customers want to touch and feel the product,” Jain added.

However, the market remains highly concentrated. Around 19 Mn “power shoppers”, just 2% of India’s internet users, drive nearly 60-70% of D2C sales. This highlights the importance of retention and increasing customer lifetime value over customer acquisition alone.

Going forward, the spotlight will be on India’s 377 Mn Gen Z consumers, which are expected to influence nearly $2 Tn Bn in consumption by 2035. This is expected to drive demand for convenience, premiumisation, and digital-first brands.

Voice and social commerce will also enable the conversion of over 350 Mn online shopper base, while growing Tier II+ users will expand both demand and supply beyond metros.

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