D2C brands grow in Tier II cities and beyond; Tagbin’s bet on gov-tech
India’s D2C sector saw order volumes increasing by 33% and GMV growing by 32% year-on-year, based on an analysis of over 400 million order items processed through Unicommerce’s Uniware platform between April 2024 and February 2026.
Hello,
The closure of Strait of Hormuz has shown the critical chokepoint in international trade. On Monday and Tuesday, finance ministers from the Group of Seven developed economies are expected to meet in Paris amid speculations that the closure could lead to further crisis in the region.
“Opening the Strait of Hormuz and bringing the conflict to a lasting end are of the utmost importance in mitigating the impact on the economy,” said Eurogroup President Kyriakos Pierrakakis, according to a statement.
The Strait of Hormuz hasn’t just choked oil and gas supplies but has also revealed the critical nature of the fibre optic network that powers the world’s internet infrastructure.
Current conflict in Iran has spurred governments and companies to consider alternate routes, including one going across the North Pole, according to The Verge.
With the 2026 World Cup starting off in a few weeks, BBC Future speaks to the scientists that are involved in the installation and care of grass pitches at the football stadiums.
This year, the pitches are spread across a wide geographical area– from the humid Mexico City to the cool Boston. Scientists have to ensure that the grass quality remains consistent throughout.
In today’s newsletter, we will talk about
- D2C brands grow in Tier II cities and beyond
- Tagbin’s bet on gov-tech
Here’s your trivia for today: Katniss Everdeen is a character from which series of novels?
Ecommerce
D2C brands grow in Tier II cities and beyond
India’s smaller cities are rapidly emerging as the growth engine for direct-to-consumer (D2C) brands, accounting for nearly two-thirds of new online orders in the last financial year, recent data from Unicommerce showed.
The report found that 66% of new D2C orders in FY2026 originated from Tier II and Tier III cities, a significant shift away from metro-led ecommerce demand.
Key takeaways:
- India’s D2C sector saw order volumes increasing by 33% and GMV growing by 32% year-on-year, based on an analysis of over 400 million order items processed through Unicommerce’s Uniware platform between April 2024 and February 2026.
- Return-to-origin rates dropped from nearly 39% during the November 2025 festive season to about 21% by February 2026, indicating better order verification and execution.
- India’s D2C market, currently valued at $10–12 billion, is projected to expand to $60 billion by 2030, as brands focus on operational efficiency, customer retention, and consistent service quality in an increasingly competitive landscape.
Startup
Tagbin’s bet on gov-tech
Tagbin, founded in 2013 by three IIT Roorkee graduates, uses AI and immersive technology like AR, VR, and holograms to help governments make smarter decisions and create engaging experiences for museums, exhibitions, and public spaces.
Key takeaways:
- Tagbin’s flagship AI offering is the Strategy Lab, first built for NITI Aayog in 2021. The platform pulls data from multiple government sources and connects disparate datasets to surface patterns that humans might miss.
- It helps identify duplicate spending across departments, predict potential problems, and generate policy insights. The system is currently deployed in Bihar, Telangana, Rajasthan, and Maharashtra.
- For private enterprises, Tagbin offers BoardRoom AI, which integrates tools like Slack, Asana, and Tally, along with industry reports.
News & updates
- Outbreak: An Ebola outbreak in the Democratic Republic of Congo and Uganda has been declared a public health emergency of international concern by the World Health Organisation, after 80 suspected deaths.
- Explosion: Authorities in Abu Dhabi responded to a fire caused by a drone strike on an electrical generator outside the Barakah Nuclear Power Plant in the Al Dhafra Region, the Abu Dhabi Media Office said on Sunday.
What you should watch out for
- Russian President Vladimir Putin is expected to travel to China on May 19 for a two-day visit, the Kremlin said on Saturday. His visit comes days after US President Donald Trump's trip to Beijing.
- An organisation representing over 12 lakh chemists and drug distributors has called for a nationwide shutdown on May 20 over online drugs sales. The body, All India Organisation of Chemists and Druggists, said it aims to draw the government’s attention to what it described as the “unregulated functioning” of e-pharmacies.
Katniss Everdeen is a character from which series of novels?
Answer: The Hunger Games
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