
Why early-stage consumer brands are increasingly foraying abroad in 2025

Summary
- Following the success of Indian brands like Vahdam and Nappa Dori in global lifestyle markets, more premium brands are expanding internationally to overcome the challenges of catering to India's price-sensitive market. But, experts warn against premature overseas expansions.
India's early-stage consumer brands in the premium segment are eyeing international expansion much earlier in their journey this year, targeting global markets where demand for expensive products outpaces purchases back home.
Unlike mass-market brands that have established a strong foothold in India, high-end products across sectors like beauty and personal care, food and packaged goods, and over-the-counter pharmaceuticals often struggle to find enough takers among price-sensitive consumers in India, pushing them to explore global markets, experts told Mint.
Tego Fit, a Mumbai-based brand selling premium fitness products like yoga mats and activewear at prices starting at ₹1,999, has begun conducting tests across marketplaces in the US, Australia, and UAE to gauge product resonance, its co-founder Krishna Chandak said. “While some products have shown stronger traction in certain regions, the US stands out for its potential to scale," he added.
Anicut Capital, an alternative investment firm based in India, is increasingly taking bets on early-stage companies with global aspirations. "We're doing a lot of India-to-abroad kind of opportunities. That's a trend that we are liking where we make an investment in a very small company, but we think it's of high prospect as a design-led D2C brand with the aspirations of the founder now global," said Ashvin Chadha, managing partner and co-founder of Anicut.
HUL-backed nutraceuticals firm Wellbeing Nutrition, which ventured into UAE last year, is gearing up to enter the US through offline retail stores, founder Avnish Chhabria told Mint. The firm’s small team based in New York has helped secure the necessary scientific validation for its products, making the entry smooth, he said.
Wellbeing Nutrition will invest $3-4 million towards international expansion this year, Chhabria said.
“Consumer startups are gaining access to capital and startups which otherwise you would not imagine would get invested, are also raising their series A and series B. The more capital that will be available, the more founders will take these risks," Archana Jahagirdar, managing partner, Rukam Capital, said.
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Early-stage investment activity in India remained steady at $3.16 billion in 2024 compared to the previous year, according to data by market intelligence firm Tracxn. While the total size and number of deals is much lower than 2021-2022 levels, the numbers indicate sustained investor interest.
Thus, brands are charting global expansions much earlier in their journeys on the back of rising competition among the consumer segment in the quick commerce era with the promise of higher margins abroad.
“This year you will see more premium brands going international... Beauty and skincare brands, for example, have taken inspiration from global brands in India and are now moving outside," said Chadha.
A bunch of venture capital-backed consumer brands are already present in global markets. The Ayurveda Experience, an Ayurvedic beauty and personal care company backed by Mariwala Family Office’s Sharrp Ventures, expanded to the US two years ago, and is now entering Europe, the Middle East, and Southeast Asia. Content and entertainment startup PocketFM reached the US in late 2022 and the market now accounts for 70% of its overall revenue.
Wellbeing Nutrition is set to hit $1 million in revenue in UAE this month, founder Chhabria said. Its global business—which includes parts of Europe like the Netherlands as well as the Middle East—is expected to account for 10-15% of its overall topline by the end of the year, Chhabria added.
Balasubramanian Anantha Narayanan, senior vice-president at TeamLease, said that nearly 5 consumer brands have approached the human resource services company in recent months, seeking support in team building for international expansion. According to Narayanan, these brands primarily operate in sectors such as consumer durables and electronics, pharmaceuticals, beauty and personal care (BPC), and food and packaged goods segment.
Challenges at home
Following the success of Indian brands like Vahdam and Nappa Dori in global luxury and lifestyle markets, more premium brands are expanding internationally to overcome the challenges of catering to India’s price-sensitive market. Vahdam saw nearly 70% of its ₹225 crore revenue come from the US in FY24, as per filings available with the ministry of corporate affairs.
In FY23, The Ayurveda Experience’s operational revenue surged to ₹260 crore with a bulk of it coming from North America and Australia.
However, industry experts caution against premature international expansions, emphasizing the importance of achieving substantial local market dominance before venturing abroad.
“What frustrates founders sometimes is the price sensitivity. Some overseas markets can give a brand 2x the price that India offers. The consumer markets in some other countries like the US are deeper because people are willing to spend more," said Jahagirdar.
Wellbeing Nutrition’s products are priced more than double their Indian rates, while margins are also twice as much as the customer acquisition costs are lower, Chhabria said.
According to Chhabria, the high customer acquisition costs as well as choppy regulations surrounding nutraceuticals in India make it difficult to see sustained earnings here.
For such brands, the destination of preference is markets closer to the region, and those with a high population of Indian diaspora. Regions like the Middle East, Southeast Asia followed by Europe, and the US, are seeing many Indian consumer brands rushing in.
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According to Anicut’s Chadha, e-commerce marketplaces have also made such forays easier. “Brands test multiple markets, starting with marketplaces, and gradually expanding with dedicated websites and offline presence."
However, the Indian market is far from saturated.
“If a founder is smart and can understand the Indian consumer well, it’s best to stick to India until you hit ₹500 crore ARR (annualized recurring revenue). It depends on the category and price point as well. There is immense opportunity in India as well. Look at the balance sheets of HUL and P&G in India–they are robust," said Rukam Capital’s Jahagirdar.
“They are always investing dollars to understand the consumer and the pricing distribution. It’s a fallacy that the Indian market is not deep enough. It just means you have to do a lot more work and go deeper."
Tread cautiously
Chadha added that this approach is not without challenges, particularly in the US. "The US market is phenomenal in terms of size but issues like logistics, warehousing, and the need for substantial scale pose significant barriers for smaller brands."
Hariharan Premkumar, managing director and head of India at DSG Consumer Partners (DSGCP), a venture capital firm focusing on early-stage consumer businesses under Everstone, highlighted the pitfalls of premature international expansions among consumer brands.
“Till you (consumer brand) truly dominate your home market and cultivate extraordinary customer love, there’s no point spreading yourself thin just to chase numbers. It’s merely a distraction," Premkumar told Mint.
Premkumar also said that the founder’s mental bandwidth is the most critical resource in the early stages of a business. “The more sharply you focus on your home market, the better your chances of building a really valuable business," he said.
Moreover, with the mass middle-class and lower economic tiers currently constituting the bulk of India’s consumer base favouring brands catering to the masses, the next decade would likely see premium brands achieving significant scale. “If you’re patient, premium brands can build businesses worth thousands of crores in the long term," Premkumar noted.