Welcome to the 39th edition of The Growth Loop, a weekly newsletter by me, Saurabh, with a focus on startups, strategy, and revenue growth

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Edible oils in India have always been a commodity. They have been run by giants and priced according to the industry macros. It has been a market where brand mattered far less than margins, and wins were defined by distribution muscle, not storytelling.

But as far as I recall, Saffola was an exception.

They positioned themselves as the “heart-healthy” oil, backed by clinical claims and doctor endorsements. Saffola became the shortcut for health-conscious oil buyers in metros. And for years, that was enough.

But now, it’s not.

Today, consumers are no longer convinced by a claim. They want proof.

They want to see the oil being made, know who made it, and where it came from.

Classic Show, Don’t Tell.

This shift isn’t happening in isolation. As Nikhil Kamath recently noted, “India’s trade is going to get more inward-looking.” 

That shift in expectation has cracked open the door for a new breed of brands. One that doesn’t need a large network of warehouses or a celebrity ad budget. Startups like Anveshan and Two Brothers are pressing their advantage, turning a ₹100 commodity into a ₹600 habit. And in a ₹40,000 crore market, that’s very powerful. 

Let’s unpack what’s changed and where D2C brands are quietly winning.

What’s Changed?

1. Evolving Consumer Awareness 

The pandemic brought the kitchen back to the center of the household. Families started reading ingredient labels. Conversations about gut health, inflammation, and cooking fats moved from wellness blogs to everyday whatsapp forwards.

In case of oils, kacchi ghani and cold-pressed oils, which were once dismissed as old-school, suddenly became aspirational.

2. Content-led Commerce

Consumers now discover oil on Instagram and YouTube first. They are sold on “how” it’s made and “why” it matters.

Before a consumer ever buys a ₹425 bottle of groundnut oil from Two Brothers, they’ve likely watched 3 reels, seen a founder talk about sourcing, and maybe even saved a post explaining how cold pressing works.

Education is the new acquisition.

And it’s something large players can’t replicate at scale, because they don’t own the story.

3. Direct-to-Consumer Infrastructure now exists

Ten years ago, you couldn’t build a serious oil brand without a distributor, warehouse, and serious working capital.

Today, with Shopify + Delhivery + Razorpay, you can reach a niche, premium audience directly.

A founder with a strong story, origin story, and a decent camera can build a profitable microbrand in 6 months.

4. Commodities Are Getting Personal

Just like atta and honey have seen unbundling, oil too is fragmenting:

• By type: Groundnut, sesame, coconut, mustard

• By method: Cold-pressed vs wood-pressed vs refined

• By source: Region-specific origin stories (Maratha groundnut, Tamil sesame)

Consumers today look for traceability, the story behind what they consume.

What’s the startup’s Right to Win?

1. They Own the Narrative

With one-tenth the effort, D2C brands can go beyond saying “natural”. They can show how their seeds are cleaned. They can show the farmer and give you a tour of the overall journey. If you’ve been following my articles, you would recall The Akshayakalpa Growth Story where I went in detail on how D2C founders are doing this right.

2. They’re Built for Agility

This is true for the whole startup ecosystem. But to put it in context, when large FMCG players test a product, it’s a six-month cycle. For D2C brands, when safflower is in harvest season, they can drop a batch next week.

3. Premiumization pays

Cold-pressed oil sells at a 2–4x markup over refined oil. The premium funds:

• Storytelling

• Sampling

• Subscriptions and

• Last mile costs (if any)

High-margin, low-volume makes perfect sense for disruption in niche categories

4. Founder Branding

In a category like oil, where trust is everything, a founder explaining how the product is made often matters more than a celebrity saying why they use it.

Two Brothers built a cult following by showing up on camera on their farms.
Anveshan did it by documenting their sourcing and extraction process.

The face behind the oil matters, and startups can do this faster and do it right.

Oil has always been essential. But today, it’s also personal. 

As India transitions from unbranded to premium journey, startups can pour trust, ritual, and heritage into their oil bottles and build their moat. 

Until next time! 👋

Saurabh