Indian direct-to-consumer (D2C) startups are increasingly exploring international markets, but exporting products globally often involves complex operational challenges.
Managing customs paperwork, tariffs, international shipping, and tax compliance across multiple countries can quickly become overwhelming for smaller brands attempting to scale globally.
This is where Distacart is positioning itself as an export infrastructure platform for India’s fast-growing D2C ecosystem, apart from being a global marketplace itself.
The company provides a technology and logistics backbone that allows Indian brands to sell internationally without worrying about tariffs, regulatory compliance, or global fulfilment operations.
Founded by Kiran Kotla, Vamsi Krishna Kothuri and Rajesh Angara, Distacart initially grew as a bootstrapped startup and built a business generating around ₹60–70 crore in annual revenue before raising external capital. In October 2024, the company raised its first $2.5 million pre-seed funding round, primarily from U.S.-based investors including micro venture capital firms and high-net-worth individuals from Silicon Valley.
Today, the platform offers more than 500,000 products from Indian manufacturers, ships to customers in over 40 countries, and works with more than 2,000 Indian brands.
According to co-founder Kiran Kotla, the platform has already processed over 1 million global orders and serves more than 500,000 customers worldwide, reflecting rising international demand for Indian products.
Kiran’s experience, having previously worked in engineering roles at unicorn startups like Insieme Networks (acquired by Cisco) and Innovium (acquired by Marvell Technology), shaped his understanding of how technology platforms scale globally.
The company’s broader ambition is to build a global marketplace for Indian products similar to Chinese cross-border commerce platforms such as Temu, Shein, and AliExpress.
Bridging the Gap in India’s Global Exports
China currently dominates direct-to-consumer global exports through large e-commerce platforms that ship products directly from factories to international customers.
China’s cross-border D2C export market is estimated to be around $300 billion annually, while India’s share remains significantly smaller at roughly $10 billion.
Kotla believes this gap is largely due to infrastructure and regulatory barriers rather than lack of demand for Indian products.
Distacart aims to narrow that gap by enabling Indian brands to reach global customers through simplified cross-border e-commerce infrastructure.
“The opportunity is enormous,” Kotla said, noting that if logistics, tariffs, and regulatory bottlenecks are addressed, India’s direct-to-consumer exports could eventually reach tens of billions of dollars annually, with some estimates suggesting the sector could approach $100 billion in the long term.
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Removing Operational Barriers for Indian D2C Startups
For most startups, international expansion involves a long list of operational hurdles including:
- Customs documentation
- Import duties and tariffs
- Global shipping logistics
- Cross-border payment compliance
- Regulatory eligibility checks for different countries
Distacart manages these operational layers on behalf of brands.
“Sellers only need to deliver their products to Distacart fulfilment centres in India,” Kotla explained. “From there, we manage the entire export process, including international shipping, customs clearance, and documentation.”
The company operates fulfilment hubs in cities such as Delhi, Bengaluru, and Hyderabad, enabling sellers across the country to participate in global trade without setting up their own export infrastructure.
In many cases, Distacart purchases products from brands at a transfer price, after which it manages international marketing, logistics, payments, and customer support on behalf of the seller.
Using AI to Automate Export Compliance
One of the biggest challenges in international commerce is correctly classifying products under global customs and taxation systems. Every product shipped internationally must be assigned a specific customs declaration code that determines whether it can be exported and what duties apply. Distacart uses artificial intelligence to automate much of this process.
The company’s AI systems classify products under the correct customs codes, generate export documentation, and determine whether a product can legally be exported to specific countries.
The system can also analyse product ingredients and regulatory requirements across markets, helping determine whether certain Ayurvedic or herbal products meet regulatory standards in different countries.
AI also helps manage taxation compliance. For example, products sold in the United States must be classified under different sales tax categories depending on the state. Automating these processes allows startups to scale global operations without navigating complex regulatory frameworks themselves.
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Tariff Changes and Regulatory Challenges
Global trade rules are constantly evolving, creating new challenges for exporters.
In August 2025, the United States removed the “de minimis” rule, which previously allowed shipments valued under $800 to enter duty-free. The change significantly increased duties for many exporters shipping small-value packages.
For Indian exporters, the effective tariff impact can reach up to 68% when combining base tariffs and penalty duties, making cross-border commerce significantly more expensive.
Kotla said Distacart’s technology helps brands navigate these changes by optimising tariff classification and compliance. While many exporters reportedly saw sales drop by 70–80% following the rule change, Distacart merchants experienced only about a 10% decline in U.S. sales, highlighting the role of automation and compliance tools in managing trade disruptions.
Reducing Shipping Costs with AI-Driven Logistics
International logistics costs are another major barrier for Indian exporters.
According to Kotla, shipping a 100-gram parcel from India through traditional courier networks can cost around $20. By comparison, Chinese exporters often ship similar packages to the United States for $2–$3 due to highly optimized logistics networks.
Distacart uses AI-powered logistics optimisation to reduce this gap by aggregating thousands of orders and identifying the most efficient shipping routes across multiple carriers.
This system has already reduced the cost of shipping a 100-gram parcel to around $8, with a long-term goal of bringing the cost down to below $5.
Achieving that level would make Indian products far more competitive in global markets.
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Distacart also pre-pays import duties and taxes on behalf of customers, ensuring buyers do not face unexpected charges at delivery – a common friction point in cross-border e-commerce transactions. In some markets, optimized routing allows delivery in as little as three business days, depending on destination and carrier availability.
Unlocking Global Markets for Everyday Products
Lower logistics costs are especially important for everyday consumer products with relatively low price points.
These include:
- Ayurvedic wellness products
- Homeopathy medicines
- Beauty and skincare products
- Packaged consumer goods
Without affordable shipping infrastructure, exporting such products becomes economically unfeasible. Distacart’s logistics optimisation is designed to make it viable for Indian startups to sell even low-cost items globally.
Interestingly, more than 30% of Distacart’s customers are non-Indian, indicating that Indian products are increasingly gaining traction among international consumers beyond diaspora communities.
The platform’s average order value is about $60 in major markets such as the United States, Canada, the United Kingdom, and Europe, while orders in the Middle East average around $35 due to different consumer spending patterns.
Marketplace and Export Infrastructure
Distacart operates both as a global marketplace and as an export infrastructure provider. Brands can sell products directly on the Dista marketplace or use the company’s technology to sell through other international platforms.
The platform enables sellers to integrate with global marketplaces including Amazon, Walmart, eBay, and Etsy, while also supporting the creation of independent international D2C websites.
The company’s catalogue now includes more than 500,000 products, serving customers across North America, Europe, the Middle East, and Asia-Pacific markets.
Distacart primarily targets high-income markets with large Indian diaspora populations, including the United States, Canada, the United Kingdom, Australia, Europe, Singapore, the Middle East, and New Zealand.
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Distacart: Revenue Split and Brand Partnerships
Distacart generates revenue from multiple channels:
- 75% from distribution
- 20% from marketplace sales
- 10% from D2C enablement
The company has partnered with more than 2,000 Indian brands, including names such as Honasa Consumer, Miduty, and Krishna Ayurveda.
While the D2C enablement channel currently represents a smaller share of revenue, it generates higher revenue per brand, indicating strong long-term potential as more companies build their own international storefronts.
AI-Powered Product Discovery
With hundreds of thousands of products on the platform, helping customers discover relevant brands is another challenge.
Distacart uses artificial intelligence to personalise the shopping experience by recommending products based on user behaviour and purchase history.
AI systems also support operational workflows such as automated order confirmation calls and verification checks for cash-on-delivery purchases, reducing cancellations and improving overall customer experience.
Growth, Funding and Future Plans
Distacart currently employs around 250 people across India, along with a smaller technology team in Mountain View, California supporting global operations.
Following its $2.5 million pre-seed round in October 2024, the company says its revenue has nearly tripled, signalling strong traction in cross-border e-commerce.
The company is now preparing to raise a larger funding round to accelerate growth. In the near term, Distacart is targeting ₹1,000–2,000 crore in gross merchandise value (GMV) within the next 12 months.
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Ambition to Build a Global Export Platform
Looking ahead, Distacart has ambitious plans to scale its platform and expand international demand for Indian products. Kotla believes that upcoming trade agreements could further accelerate growth.
The proposed India–European Union Free Trade Agreement is expected to simplify duties and regulatory processes for Indian exports, potentially allowing Indian brands to expand rapidly across European markets. “If implemented effectively, Indian product sales in Europe could increase five to ten times,” Kotla said.
Distacart’s long-term goal is to build a business generating ₹15,000–20,000 crore in annual revenue within the next four years. If successful, the company could emerge as a major global distribution platform for Indian brands, helping the country’s rapidly growing D2C ecosystem reach customers around the world.
