In a rapidly evolving consumer market, India- and Southeast Asia-focused consumer venture capital fund DSG Consumer Partners continues to invest in early-stage brands, with an eye on long-term growth and sustainability, says Hariharan Premkumar, Managing Director and head of India office. DSG has invested in tea and cafe chain Chai Point, dairy firm Epigamia, and juice maker Raw Pressery, among other startups.
What is your investment thesis?
DSG Consumer Partners invests in early-stage consumer brands with a strong product-market fit and competitive advantage. We focus on companies that demonstrate a deep understanding of their target customers and have built brands that resonate authentically. We emphasise sustainable growth, profitability, and capital efficiency over aggressive cash-burning models. We seek businesses that can scale up rapidly while maintaining strong unit economics and brand loyalty.
Which sectors are you bullish on?
We are optimistic about the consumer sector, particularly categories such as food and beverage, health and wellness, personal care, and direct-to-consumer brands... we see significant potential for disruption and long-term value creation.
How many exits have you had to date?
We have successfully exited multiple investments, with a preference for strategic acquisitions that allow our portfolio companies to scale up further under the leadership of larger industry players. We evaluate exits based on the best outcome for both founders and investors, whether through strategic sales, secondary transactions, or other liquidity events.
How do you view the current funding scenario?
The funding environment is evolving, with investors placing greater emphasis on profitability and sustainable growth rather than aggressive expansion. While capital is still available for strong businesses, there is a heightened level of scrutiny on financial discipline, market differentiation, and long-term viability. We believe that founders who focus on building fundamentally strong businesses, with clear economic moats, will continue to attract investment.
In what way do you support your portfolio companies beyond capital infusion?
We take a hands-on approach to working with our portfolio companies, providing strategic guidance, industry connections, and operational support. Our team collaborates closely with founders to help them navigate challenges, refine their brand positioning, optimise distribution strategies, and achieve sustainable growth.
What do you look for in founding teams before making an investment?
We place a strong emphasis on the capabilities and vision of the founding team. Ideal founders have a deep understanding of their market, a strong execution track record, and the ability to attract top talent. We also look for resilience, adaptability, and a strategic vision that aligns with our investment philosophy.