D2C brands see Tier-2, Tier-3 cities drive marketplace growth

The shift is visible in the growing contribution of marketplaces to individual brands

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 Center-Center-Delhi

India’s D2C brands are increasingly using marketplaces to expand beyond their traditional customer base, with smaller cities emerging as an important source of sales for beauty, wellness and food brands, according to data shared by Flipkart, Plum, Kapiva and Open Secret.

The shift is visible in the growing contribution of marketplaces to individual brands. Open Secret’s business on Flipkart has tripled in four years, with the platform now accounting for around 30% of the brand’s overall revenue. Plum, which began selling on Flipkart 12 years ago, has grown more than 60% on the platform over the past two years. Open Secret Growth Datapoints Plum Growth Datapoints

The growth is also moving beyond large cities. About 66% of Kapiva’s sales on Flipkart come from Tier-3 cities, while more than 70% of its Gen Z buyers across major products are from Tier-2 and Tier-3 cities. Plum said two in three beauty searches on Flipkart come from non-metro cities, with more than half of beauty demand coming from these markets. Kapiva Growth datapoints Kapiva Growth datapoints Plum Growth Datapoints

Flipkart said it has scaled more than 150 D2C brands, while orders for D2C brands in its Beauty and General Merchandise category grew nearly 40% year-on-year in July-August 2026. Tier-2 and Tier-3 markets recorded 60% growth, according to the company. Flipkart Growth datapoints Flipkart Growth datapoints

The products being bought are also moving beyond traditional online shopping categories. Kapiva said consumers are buying wellness products for needs such as energy, digestion, fitness and everyday nutrition. Open Secret said healthy snacking is moving from an occasional purchase to an everyday habit, with dry fruits leading its festive demand. Kapiva Growth datapoints Open Secret Growth Datapoints

Quick commerce is adding another route for these purchases. Flipkart Minutes’ Beauty and General Merchandise category grew 5.2 times year-on-year, while Open Secret said Flipkart, Supermart and Minutes allow it to cater to planned purchases, everyday snacking and immediate needs. Flipkart Growth datapoints Open Secret Growth Datapoints.