Tier 2 & 3 Cities Drive 66% of India’s D2C Growth Surge in FY26

The direct-to-consumer (D2C) market in India is undergoing significant change, with Tier 2 and Tier 3 cities becoming important development engines. These smaller areas accounted for almost 66% of new orders in FY26, according to a Unicommerce research, demonstrating the quick spread of online shopping outside of major cities.
Additionally, consumers from these areas contributed about 60% of the additional Gross Merchandise Value (GMV), which is indicative of increased digital usage and deeper market penetration. In comparison to the prior fiscal year, the D2C segment saw a 32% increase in GMV and a 33% increase in order volumes.
According to the survey, the D2C business in India is presently valued at $10–12 billion and is expected to expand to $60 billion by 2030. This growth has been aided by improved logistical performance; by February 2026, return-to-origin (RTO) rates had dropped from about 39% during the holiday season in November 2025 to roughly 21%.
Technology is also very important because chat-based tools and AI-driven recommendations improve consumer engagement and customisation. Data from more than 400 million order items handled via Unicommerce’s Uniware platform served as the basis for the conclusions.
Source – The Economic Times

