“We’re raising ₹3 crore” is one of the first things investors hear. The next question is always “why that number?” A strong answer comes from your plan, not a round figure.
Start with milestones, not money
Ask what you need to achieve before your next raise. Investors commonly expect a round to fund about 18-24 months of runway. Your milestones might be revenue targets, a new channel, a new category, or reaching positive contribution margin.
A worked example
Numbers in this example are illustrative.
A brand at ₹25 lakh monthly revenue plans to reach ₹75 lakh within 18 months.
| Use of funds | Amount | Milestone it supports |
|---|---|---|
| Marketing and customer acquisition | ₹1.2 crore | Grow monthly revenue 3x |
| Inventory and working capital | ₹60 lakh | Support higher order volume |
| Team (ops, growth, finance) | ₹50 lakh | Build capacity to scale |
| Tech and systems | ₹20 lakh | Improve conversion and retention |
| Buffer | ₹20 lakh | Handle delays and surprises |
| Total | ₹2.7 crore |
This brand can confidently raise ₹2.5-3 crore, because every rupee connects to a milestone.
Match the ask to your financial model
Your model shows the month when your cash would be lowest if you kept growing without new funds. Your funding ask should cover that shortfall, plus a buffer. If your ask and your model don’t match, investors will notice.
Common mistakes
- Picking a round number first and working backwards.
- No buffer, so any delay forces an emergency raise.
- Vague categories like “growth” or “operations.”
- Ignoring working capital, which D2C brands often need more of as they grow.
FAQs
How much should a D2C brand raise?
Enough to reach meaningful milestones that support your next round, typically 18-24 months of runway, plus a buffer.
Should I show use of funds in my pitch deck?
Yes. A simple breakdown with milestones is expected in most investor decks.
What if investors offer less than I asked for?
Your model should show a scaled-down plan, so you know which milestones are still achievable with a smaller round.
Download The D2C Founder’s Cash Flow Checklist to review your burn and runway before you raise.
Get the free checklist →Preparing your raise? The Financial Arc helps D2C brands build their funding ask, financial model, and pitch deck as one connected story.
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