Market dynamics are in favour of D2C brands: Bhavik Vasa, GetVantage
In this edition of e4m's D2C Revolution series, Vasa, Founder of GetVantage guides entrepreneurs about the different avenues of raising capital and the need to have a financial 'toolkit'
“There could not have been a better time than now, in India, to build a brand,” said Bhavik Vasa, Founder, GetVantage as he engaged in a conversation with exchange4media for its D2C Revolution series.
Vasa shares that in today’s time, a D2C brand in any category can literally be started from the kitchens and garages of homes. “There has been a commoditization around technology, around digital marketing and reach, distribution has become simpler and seamless. It has become a level playing field for an Indian challenger brand, to compete with any global player,” he said.
Market dynamics at the moment are playing in favour of D2C brands, Vasa shared. “I tell the brands under my portfolio that D2C is a channel. It is probably the starting point for emerging brands to get in. The founders need to look at themselves as an insurgent brand, rather than just a D2C brand, which means even if you’re not omnichannel, you at least have to be multichannel,” he added.
Speaking of challenges that the D2C brand founders are facing, Vasa shared that the lack of awareness around raising capital is the one and only challenge facing the founders at the moment.
“The founders need to be aware that there are multiple options to raise capital. They need to have a financial toolkit, which allows them to see that while equity capital may be needed in some cases early on, the growth capital may be raised via different alternatives like revenue-based financing, cash flow-based funding, etc.,” he explained.
Delving deeper into revenue-based financing, Vasa advises that founders need to build a business that is at least revenue-generating. He says that not every business has to be profitable from day 1, but it needs to be able to generate revenue month on month.
Speaking about localisation being a rising trend in the D2C space, Vasa says that there is growth in every direction. “When a brand knows what it stands for, and which segment it is catering to, it will define whether the brand has to go deeper into India, or go on a global level outside India,” he said.
