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Working Capital for Indian D2C Brands — The Cash Conversion Cycle

An Indian D2C brand's cash conversion cycle spans T-30 (inbound inventory) to T+30 (marketplace settlement). Quick commerce settles in T+15. Many EBITDA-positive brands run out of cash because the working capital math wasn't planned.

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Channel settlement timelines

D2C (Razorpay): T+3–7
Amazon India: T+14–21
Flipkart: T+15–22
Nykaa: T+20–30
Blinkit/Zepto/Instamart: T+15
Myntra: T+25–35
For a multi-channel brand, blended DSO sits at 18–25 days.

The trap

Founders model profitability without modelling cash. A brand growing 80% YoY needs working capital growing 80% YoY too — inventory + marketing spend lead revenue by 30–45 days. The Sylvr UEP cashflow waterfall makes this visible at the store level.

Frequently asked questions

How much working capital does a D2C brand need?

Roughly 75–100 days of revenue tied up at any time across inventory, AR, and pre-paid marketing. Subscription brands need less; quick-commerce-heavy brands need more.

Are receivables-financing solutions worth it?

For brands with >₹10Cr ARR and reliable marketplace receivables, yes. Tata Capital, KredX, and Indifi offer working-capital lines against marketplace receivables at 12–16% annualised.

Does subscription help working capital?

Yes — pre-paid quarterly subscriptions are the cleanest working-capital improvement for repeat-purchase D2C.

Put this into practice

Model this for your store in the Unit Economics Planner.

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