D2C startups in big FMCG bag, but still shy of gains

Direct-to-consumer (D2C) startups leapfrogged the scale of their businesses after getting acquired by India’s top consumer goods companies, but profits remain elusive, showed an analysis of these startups’ financials by ET.

Over the past five years, Hindustan Unilever (HUL), ITC, Marico, and Emami, among others have either acquired or taken controlling stakes in at least a dozen digital-first brands as these fast-moving consumer goods firms moved to exploit the ecommerce boom. The partnerships helped the brands significantly scale up distribution…