Hey👋!

Both Flipkart and Amazon have announced their respective sales this month starting Aug 6th. The 5-day Flipkart sale is called Big Saving Days, while Amazon calls it The Great Freedom Festival which starts on Aug 6th and is live till the 10th.

Hope all our D2C pals are doing well on the sale front!

This week, the D2C sector was a little dry on funding, Gotts to Giddy-up!! But we have loads of scoops for you from the enabler sector. We look at Insta’s flip flop (yet again) and a win for protecting your Amazon listing!

What’s sizzling hot? 🔥

📚Black Book now in the public

Community fosters consumption: In a bid to strengthen its Content-Community-Commerce play, Nykaa has received its board’s approval to acquire the discovery-based retail platform LBB (Little Black Book). LBB’s curation mindset, and relationship with emerging brands make it an attractive content play for Nykaa.

A little bout LBB: LLB was founded in 2012 as a lifestyle blog. It claims to reach more than 70 Mn users (majorly urban millennials) via its channel and reported a turnover of INR 20 cr. last FY. Moreover, LBB solves the “discovery problem” for brands through features like ‘Aur Dikhao’ and its sampling ‘boxes’ where users can see a box full of category-based goodies.

A few months ago Mensa Brands acquired iDiva and MensXP and Mamaearth acquired woman-focused content platform Mompresso, to strengthen their Content-To-Commerce Play. This content+commerce acquisition spree got kicked off this year by MyGlamm acquiring PopXo. Ok then, which content platform is looking to be acquired now?

♻️The Flip Flop just doesn’t end

Abort-Abort: After rolling back features that opened full-screen photos and images and shutting live shopping, Instagram has now announced that it will shut down its affiliate commerce program on August 31 as it seems to be having a hard time selling on social commerce. The program enabled creators to add product tags to Instagram posts and receive a commission when people tapped and purchased it within IG.

Why though? The program lacked necessity as Creators already have affiliate income through more sophisticated programs like Amazon Associates and IG’s offering was not turnkey in terms of ease of use or benefits.

Instagram is currently experimenting with its new creator marketplace, a hub designed to help brands discover and reach out to creators about partnerships.

❎Latchin’ gets bashing by the Courts

The Courts have officially confirmed in an interim order that e-comm marketplaces cannot permit an unauthorised third-party seller to "latch on" to the name/ mark and product listings of another seller on its platform as it is "nothing but riding piggyback". This practice is known as ‘Passing-off’ in traditional business.

The Court has clarified that authorization of the brand owner and the listing owner would be required before such conduct by any seller is permitted. In this particular case, even though the trademark of the plaintiff was not registered, the Court said the protection ought to be granted.

🗞️International Marketplaces

• Alibaba Group Holding Ltd reported flat quarterly revenue growth for the first time in its history. The company is laying off 10,000 employees amid sluggish sales.

• TikTok rolled out its e-commerce solution, TikTok Shop, in Singapore. To incentivize sellers to join the platform, TikTok Shop is waiving commission fees for all merchants and charging a 1% payment service fee.

🍪 D2C Bites

• B2B packaging startup Bizongo has secured $25 Mn from Mars Growth Capital. Besides packaging solutions, Bizongo also offers supply chain automation, financing, and digital vendor management services.

• Baby food company Bebe Burp raised an undisclosed amount in funding after the last round in March from investors like Lets Venture and 100X.VC.

• Farmley, a full-stack nuts and dry fruits startup, has raised $6 million in Series A funding round led by DSG Consumer Partners and Alkemi Growth Capital.

• D2C enabler, marketing automation platform WebEngage raised $20 million in funding led by Singularity Growth

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Brands that caught our eyes 👀

💊Party Smart

DOTWHAT attacks the silent assassin of every good party - hangover! DOTWHAT offers Hangover Prevention Drink, a formulation specially designed from Curcumin and added with vital essential electrolytes for battling dehydration and the harmful effects of alcohol caused to the liver. Will this brand be the new ‘DOLO’?

🌴All things sustainable and nostalgic 

Ekatra, a venture by mother-daughter duo, offers designer handmade stationery using cloth and recycled paper. They have a journal collection in every size to suit every mood - calming floral, vibrant Indigo, and lots more.

Trend of the week📈: B2B Marketplaces

A plethora of specialized online B2B marketplaces have cropped up over the last 12 months, catering to demands ranging from tools, chemicals, construction materials etc. With a sophisticated tech-enabled system, such platforms not only make it easier for buyers to get a one-stop solution to their needs but also suppliers who can save spending long hours acquiring new buyers, negotiating prices, and sorting out logistics. Few players that caught our eye in this space:

Reads and Recommendations 📚

• Know about Airbrush advertising and why has it disappeared?

• 5 Stats about Millennials Every marketer Should Know.

• Deep dive into brand and website redesign for an arts collective brand, Khoj.

• Business breakdown of Sula Wines.

That’s all for this week!

Stay tuned for more insights about the D2C ecosystem in India.

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