Delhi NCR has emerged as India’s largest hub for direct-to-consumer (D2C) brands, accounting for 23% of the country’s D2C startups, according to a new report by Inc42. The region has overtaken Bengaluru, which previously led the sector, and now hosts over 1,200 D2C startups, driven by strong investor interest and a growing consumer base.
The Inc42 report, released on May 15, 2025, highlights that Delhi NCR is home to 23% of India’s D2C startups, followed by Bengaluru at 18% and Mumbai at 15%. The report attributes Delhi NCR’s rise to its robust infrastructure, access to capital, and a dense population of high-spending consumers, which make it an attractive base for D2C brands.
In the past year, Delhi NCR-based D2C startups raised $1.2 billion in funding, representing 30% of the total $4 billion invested in the sector nationwide. Bengaluru, once the undisputed leader, saw its share of funding drop to 25%, while Mumbai accounted for 20%. The report notes that investors are increasingly favoring Delhi NCR due to its lower operational costs and proximity to key supply chain hubs.
The report identifies key sub-sectors driving Delhi NCR’s D2C growth, including fashion, beauty, and home decor. Brands like Mamaearth, boAt, and Wakefit, all headquartered in the region, have achieved unicorn status or significant scale, further cementing Delhi NCR’s reputation as a D2C powerhouse. These brands have leveraged social media and e-commerce platforms to reach millions of consumers nationwide.
Bengaluru, which held the top spot until 2023, has seen a decline in its D2C dominance due to rising operational costs and increased competition for talent. The report states that while Bengaluru remains a strong player, its growth rate has slowed compared to Delhi NCR and Mumbai. Startups in Bengaluru are now focusing more on B2B and SaaS models, diversifying away from D2C.
Mumbai, the third-largest D2C hub, has also seen steady growth, particularly in the beauty and personal care segments. The report notes that Mumbai’s proximity to manufacturing hubs in Gujarat and Maharashtra has given it a logistical advantage. However, high real estate costs and regulatory challenges have limited its ability to surpass Delhi NCR or Bengaluru in startup density.
The Inc42 report also highlights the role of government initiatives in boosting Delhi NCR’s D2C ecosystem. The Delhi government’s ‘Startup Policy 2023’ offers incentives such as subsidies on rent, tax breaks, and easier access to funding for D2C startups. Additionally, the presence of co-working spaces and incubators like T-Hub and 91springboard has provided critical support to early-stage brands.
Consumer behavior has also played a key role in Delhi NCR’s rise. The report cites data showing that Delhi NCR has the highest per capita spending on D2C products among Indian metros, with an average annual spend of Rs 8,500 per consumer. This trend is driven by a young, digitally savvy population with disposable income, making the region a prime market for D2C brands.