The company has appointed ex-Facebook and Bain executive, Prashanth Aluru, as the CEO and co-founder to lead the build-out of this new venture.
“This venture has the potential to become a significant growth engine by tapping into the new wave of entrepreneurial energy in India. With the launch of this venture, we intend to double down on our ongoing program of strategically attracting new pools of capital that are seeking investment in high-growth businesses,” Ashish Dikshit, MD of ABFRL said.
In February, ABFRL announced it will set up a dedicated company to enter the direct to consumer (D2C) business, part of its strategy to build a portfolio of new-age, digital brands across categories in fashion, beauty and lifestyle segments. D2C brands refer to businesses that have most of their revenue or customer acquisition from direct-to-consumer online channels or those started with an online-first distribution before going omni-channel.
Nearly 590 new D2C companies have entered the Indian market in the past three years, and they have raised Rs 6,700 crore altogether, according to Tracxn, a market intelligence provider of private company data. The D2C market opportunity in India is expected to be $100 billion by 2025, said ABFRL.