Learning to Scale D2C Brands With Someone Who's Done It 50 Times

Most D2C founders think they have a marketing problem. They're burning money on ads, barely breaking even, wondering why growth feels so hard.

Kapil Khanna has scaled 50+ D2C brands. He'll tell you it's not a marketing problem. It's a unit economics problem, a customer experience problem, a product-market fit problem disguised as a marketing problem.

As cofounder of Wizon, he's seen the patterns that separate brands that scale from brands that flame out after two years of burning cash. The difference isn't some secret growth hack. It's understanding the fundamentals that most people skip because they're too busy chasing the next viral campaign.

This is what actually matters when you're building a D2C brand.

Key Takeaways

• Unit economics determine everything: If your customer acquisition cost is higher than your customer lifetime value, no amount of growth will save you—fix the fundamentals first
• Customer experience is your moat: Performance marketing gets easier when customers become repeat buyers—focus on retention, not just acquisition
• Quick commerce changed the game: The rise of 10-minute delivery platforms has fundamentally altered how D2C brands need to think about distribution and customer expectations
• Most brands die in years 1-2: The brands that survive aren't necessarily the ones with the best products—they're the ones with the best business fundamentals
• Performance marketing is table stakes: Every D2C brand knows how to run Facebook ads now—the differentiator is what happens after the click
• Build for portfolio, not unicorns: Not every brand needs to be a $100M company—sometimes a profitable $5M brand is a better business

The Full Conversation

You've worked with 50+ D2C brands. When a founder comes to you wanting to scale, what's the first thing you look at?

Unit economics. Always.

I don't care how cool your brand story is or how viral your Instagram is. If you're spending $50 to acquire a customer who buys one $40 product and never comes back, you don't have a business.

Most founders want to talk about growth tactics. But if your fundamentals are broken, growth just means losing money faster.

So we start with: What does it cost you to acquire a customer? What's their average order value? How often do they come back? What's your margin?

If those numbers work, then we can talk about scaling. If they don't, we fix them first.

Hot take: Most D2C brands that fail don't fail because of bad marketing. They fail because they tried to scale a business model that didn't work at small scale either.

What's a realistic customer acquisition cost for a D2C brand today?

It depends entirely on your product and lifetime value, but generally, you want your CAC to be no more than 30-40% of your customer lifetime value.

If you're selling a product with a $1,000 lifetime value, you can afford to spend $300-400 acquiring that customer. If your product has a $100 lifetime value and you're spending $80 on acquisition, you're in trouble.

The challenge is that CAC keeps going up. Facebook and Google ads get more expensive every year. So the brands that win are the ones who figure out how to increase lifetime value—getting customers to come back more often, increasing average order values, building subscription models.

You can't fight the rising CAC. You have to make your customers more valuable.

You mentioned that quick commerce platforms like Blinkit and Zepto have changed the game. How?

They've completely reshaped customer expectations, especially in India.

When customers can get products delivered in 10 minutes through quick commerce, your D2C brand's 3-5 day delivery suddenly feels slow. And if your product is available on Blinkit at the same price, why would they order from your website and wait?

So D2C brands have to make a choice: Either get on these quick commerce platforms and accept lower margins, or differentiate so strongly that customers are willing to wait for your product specifically.

The brands that are winning are the ones treating quick commerce as another channel, not as competition. Use it for customer acquisition, use it to build brand awareness, but keep your own channels strong for higher-margin sales.

Hot take: The "own your customer relationship" purity test is dead. Smart D2C brands in 2026 are omnichannel by necessity—they're on marketplaces, in quick commerce, in retail, and on their own site.

When you look at a D2C brand's marketing, what are the most common mistakes?

They obsess over top-of-funnel and ignore everything else.

Everyone wants more traffic, more clicks, more impressions. But they're not looking at what happens after someone lands on their site.

Is your site fast? Is the product page clear? Is checkout smooth? Do you have social proof? Are you capturing emails before people bounce? Do you have a retargeting strategy?

I've seen brands double their conversion rate just by fixing their site experience. That's equivalent to cutting your CAC in half, which is way easier and cheaper than trying to double your ad budget.

The other big mistake is not investing in retention. They're so focused on acquiring new customers that they ignore the customers they already have. Email marketing, loyalty programs, subscription options—these aren't flashy, but they're what make the unit economics actually work.

You've seen brands go from startup to market leader. What separates the ones that make it from the ones that don't?

The ones that make it have founders who understand business fundamentals, not just marketing tactics.

They know their numbers. They make decisions based on data, not gut feelings. They're patient enough to build things properly instead of chasing shortcuts.

The ones that don't make it are usually chasing trends. They see what worked for another brand and try to copy it without understanding why it worked. Or they raise too much money too early and start optimizing for growth metrics instead of building a sustainable business.

I've seen brands with okay products and great fundamentals outlast brands with amazing products and broken economics. Every time.

Hot take: The D2C brands that survive the next few years won't be the ones with the best Instagram aesthetic. They'll be the ones with the best Excel spreadsheets.

Let's talk about Wizon. What problem are you solving?

We're building the infrastructure layer for D2C brands to manage their entire operations—marketing, inventory, customer data, analytics, everything in one place.

Most D2C brands are using 10-15 different tools that don't talk to each other. Shopify for their store, a separate tool for email, another for SMS, another for analytics, another for inventory. It's a mess.

Wizon brings all of that together. So you can see your whole business in one place and make better decisions faster.

The insight is that most D2C tools are built for either enterprises or tiny startups. There's a massive gap in the middle—brands doing $1-50M in revenue who need enterprise-level capabilities but can't afford enterprise-level complexity or pricing.

That's who we're building for.

What's your take on AI in e-commerce? Real impact or mostly hype?

Real impact, but not in the ways people think.

Everyone talks about AI chatbots and personalization engines. That stuff matters, but the real impact is in operations—demand forecasting, inventory optimization, customer segmentation, automated bidding on ads.

The boring operational stuff that can save or make a brand thousands of dollars a day if done right.

We're using AI in Wizon to help brands predict demand better, optimize their ad spend, identify which customers are likely to churn. That's where the actual ROI is.

The flashy customer-facing AI stuff is nice to have. The operational AI stuff is business-critical.

You work with brands at different stages. What's different about scaling from $1M to $10M versus $10M to $50M?

$1M to $10M is about finding channels that work and doubling down on them. You're still figuring out product-market fit, testing different acquisition channels, building your team.

$10M to $50M is about building systems. You can't brute force your way through problems anymore. You need proper operations, proper team structure, proper data infrastructure.

That's where a lot of brands struggle. The founder who was great at hustling from zero to $10M isn't always the person who can build the systems to get to $50M. Different skillsets.

The brands that successfully make that transition usually bring in operational expertise—someone who's done it before and can build the machine that scales.

If you're talking to a founder who's thinking about starting a D2C brand in 2026, what's your advice?

Make sure your product is genuinely differentiated, not just another version of something that already exists.

The days of "same product, better marketing" working are over. There's too much competition, acquisition costs are too high, customers are too sophisticated.

You need a product that's either significantly better, significantly cheaper, or solves a problem that existing solutions don't address.

And before you spend a rupee on marketing, make sure your unit economics work. Run the numbers. Be honest about costs. Account for returns, customer support, everything.

If the math doesn't work at small scale, it won't work at large scale either.

What's been the most surprising lesson from working with so many brands?

How much of success is just persistence and execution, not brilliance.

The brands that win aren't always the ones with the most innovative products or the cleverest marketing. They're the ones that show up every day, optimize 1% at a time, and don't give up when things get hard.

There's no secret formula. It's just fundamentals executed consistently over a long period of time.

Which is actually good news, because it means this is learnable. You don't need to be a genius or have some special insight. You just need to understand the basics and do them well.

Final Thoughts

Kapil's perspective cuts through a lot of the glamour that surrounds D2C brands. No growth hacks, no secret strategies, no shortcuts.

Just fundamentals: Know your numbers, build a product people want, acquire customers efficiently, keep them coming back, and scale when the economics work.

The D2C brands that succeed long-term aren't the ones chasing trends or copying competitors. They're the ones that understand their business deeply enough to make good decisions when things get hard.

For founders building in this space, the playbook is actually pretty simple. It's just not easy.

Build something differentiated. Nail your unit economics. Focus on customer experience. Be patient with growth. And when you do scale, make sure you're scaling something that actually works.

Because in a world where customer acquisition costs keep rising and competition keeps intensifying, the only sustainable advantage is building a genuinely good business.

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