Whalesbook
The capital infusion is a direct result of a fundamental repositioning of the product category. Once a niche segment, shapewear is rapidly integrating into the daily wardrobes of Indian consumers, fueled by a narrative of body positivity rather than concealment. This strategic shift has unlocked significant market potential, attracting investors who see a scalable opportunity beyond the legacy innerwear market.
### The D2C Disruption Playbook
New entrants are successfully challenging established innerwear brands by leveraging a D2C model fine-tuned for the Indian market. Brands like Invogue and Krvvy are focusing on unmet local needs, offering breathable fabrics suited for India's climate and designs that accommodate diverse Indian body types—a critical differentiator from global competitors. This localized approach is resonating with consumers, particularly the 18-34 age group, which accounts for nearly 60% of sales for some new brands. This demographic pivot is happening within the wider context of India's booming D2C e-commerce market, which is projected to grow from USD 108.76 billion in 2026 to USD 322.1 billion by 2031. The strategy mirrors the disruption seen in the U.S. market by brands like Skims, which achieved a $4 billion valuation by championing inclusivity and redefining shapewear as solution-focused apparel.
### Competitive Pressure on Incumbents
The rapid ascent of these specialized startups puts pressure on legacy players. Major retailers like Reliance Retail have already made strategic moves to strengthen their position by acquiring established innerwear brands Clovia and Zivame. While these incumbents have broad distribution, the D2C newcomers are proving more agile in product innovation and marketing, using social media and influencer collaborations to build brand loyalty. The success of Underneat, which reportedly crossed a ₹150 crore annual recurring revenue (ARR) while remaining EBITDA positive within eight months of launch, highlights the effectiveness of this modern playbook.
### Market Outlook and Growth Projections
Analysts project the Indian shapewear market to expand significantly, with one report forecasting growth from USD 65.7 million in 2020 to USD 131.2 million by 2028 at a CAGR of 9%. This growth is part of a larger trend in the Indian apparel market, which was valued at approximately USD 100 billion in 2023. As the D2C sector matures in 2026, the focus is shifting from aggressive scaling to sustainable, margin-focused growth. For the shapewear segment, this means the brands that can successfully convert the current momentum into long-term customer retention will likely emerge as market leaders or become prime acquisition targets for larger retail conglomerates looking to capture this evolving consumer base.