‘The environment is evolving, creating significant room for disruption’

At the e4m D2C Revolution 3.0 conference, in a fireside chat with Nawal Ahuja, Co-Founder of exchange4media, VS Kannan Sitaram, Co-founder and Partner from Fireside Ventures, delved into the transformative world of digital commerce. The conversation explored the evolving landscape of digital commerce and how emerging consumer brands are transforming the market.

Sitaram shared his perspective on how consumer brands are adapting to a rapidly changing landscape characterized by increasing affluence and the rise of quick commerce. With a portfolio that includes standout brands like Mamaearth and Boat, he illustrated the key factors driving success in the D2C space.

Sitaram’s experience at Hindustan Unilever (HUL) provided a backdrop for discussing leadership development and talent acquisition. He articulated HUL’s rigorous approach to identifying and nurturing talent, which has produced many successful leaders in various sectors. He said, “There is always this constant challenge of having to reinvent how you create value and I think all of this together is what creates outstanding leadership.”

When discussing the future of D2C brands, he noted that the rise of quick commerce is a significant game-changer, as companies like Zepto and Blinkit redefine consumer expectations for speed and convenience. “We started Fireside back in 2017, marking about seven years into our journey. We came in with the belief that the Indian consumer is changing and that the Indian environment is evolving, creating significant room for disruption. We felt that India was becoming more affluent, and the last seven years have confirmed this. We believe that affluence will continue to rise in the coming years, and as people become more affluent, they will seek products that better meet their needs. This indicates there will be more opportunities for new brands.”

He further added, “The way digital commerce is morphing—with the emergence of not just Flipkart and Amazon, but also various vertical e-commerce players, alongside the rise of quick commerce—creates numerous opportunities. A significant advantage for startups is that they don't have to compete on the same playing field as larger companies. They can leverage these changes in the digital commerce landscape to their advantage. We view these factors—demographics and the shaping of the digital economy—as fundamental. From our perspective at Fireside Ventures, we are very excited about the future of startups and believe there is tremendous potential for creating or participating in the development of many wonderful new brands in this country."

While discussing the rise of quick commerce from an investor's perspective, Sitaram highlighted that this sector presents both opportunities and challenges for D2C brands. He noted, “The quick commerce journey is relatively young—about two to three years old—and our understanding of its implications is still developing. Initially, quick commerce focused on convenience, emphasizing 10-minute deliveries and addressing urgent household needs. This model has allowed many food brands that struggled on platforms like Amazon and Flipkart to thrive on quick commerce platforms.” For instance, he said, their investments in companies like Sweet Karam Coffee, Slough Farm, and Yoga Bar have seen success through these channels.

According to him, as quick commerce evolves, it is shifting from being solely a convenience service to a comprehensive shopping platform. “Consumers are increasingly visiting apps like Blinkit, Swiggy Instamart, and Zepto not just for quick purchases, but as regular shopping destinations. This transformation is reshaping the digital commerce landscape, marking a fundamental shift in how people engage with e-commerce. For D2C brands, this translates into new avenues for growth, particularly in food and other fast-moving categories. However, they must also navigate increased competition and changing consumer expectations. As quick commerce becomes a staple shopping method, brands need to adapt to this evolving landscape to capitalize on the opportunities it presents. The whole world of digital commerce is being reshaped and it just started with quick commerce, but it's all about now, where do you want to shop? And I think that's a fundamental change.”

In the conversation, he also spoke about Mamaearth and attributed its rapid growth to a keen understanding of consumer insights and a commitment to brand building. He outlined critical lessons for entrepreneurs, emphasizing the importance of product-market fit, financial sustainability, and a strong brand identity. He also underscored the necessity for companies to balance performance marketing with long-term brand development, cautioning against over-reliance on customer acquisition tactics that don’t foster lasting brand loyalty.

As the discussion shifted toward omnichannel strategies, Sitaram highlighted the challenges D2C brands face when transitioning from digital-first models to retail presence. He advised on the need for careful selection of retail channels, understanding local market dynamics, and ensuring that the right product assortments are available to enhance consumer discovery.

Sitaram expressed optimism about the future of the D2C landscape, encouraging entrepreneurs to seek strong consumer insights, prioritize problem-solving, and build differentiated, scalable solutions. He affirmed Fireside Ventures' commitment to nurturing businesses that prioritize genuine partnerships and long-term success over mere valuation.

Concluding that chat, Sitaram said, “We are not focused on whether they are looking to build great valuations because we believe that if you're building a great business, those valuations will come. Lastly, we consider whether they want a partnership or just money. We offer a partnership. We are willing to roll up our sleeves and work closely with companies to develop an ecosystem that supports them. If that's the kind of relationship founders are interested in, we would be very, very happy to invest."