ETBWS 2025: Building bonds, one gift at a time: The story of IGP's D2C success

Time of India

08-07-2025

HighlightsTarun Joshi, founder and chief executive officer of IGP, articulated the company's core philosophy of being in 'the business of relationships,' emphasizing the emotional connection fostered through gifting. The initial target audience for IGP was identified as the 31 million non-resident Indians, particularly focusing on women wanting to send Rakhis, which provided valuable insights into customer expectations. IGP established its own dark stores in 2018 to meet consumer demand for rapid delivery, recognizing that 89 percent of customer inquiries were about receiving products within four hours.
In a spotlight session at ETBrandEquity's Brand World Summit 2025,
Tarun Joshi
, founder and chief executive officer of IGP, shared the entrepreneurial journey of India's gifting platform. Offering profound insights into building a successful direct-to-consumer (D2C) brand, Joshi articulated IGP's core philosophy, established early in 2016: to be in "the business of relationships."
Beyond products: The power of connection
"We started thinking about a larger purpose, which is beyond what we are going to sell," Joshi explained. He emphasised that every customer interaction, whether buying flowers or cakes, inherently aims at enhancing relationships. "Every time that you give a product, there's a sense of pride that you feel when you're giving out and someone who's receiving it starts feeling much more emotionally connected. So it basically helps enhance social capital." This foundational understanding became the North Star, guiding every pivot and brand enhancement at IGP.
Identifying the right cohort: The NRI advantage
Achieving product-market fit was paramount. The team strategically identified their initial target audience. "We picked up the first cohort, which was at that time Amazon was growing at a fast pace. We had vertical players like Nykaa, Myntra, all of them coming and we are a platform as a brand," Joshi stated. Their focus landed on the 31 million
non-resident Indians
(NRIs), a demographic already comfortable with online purchases and less dependent on cash-on-delivery.
Within this large cohort, they honed in on a smaller, emotionally resonant niche: women wanting to send
Rakhis
. This specific focus provided invaluable insights into customer expectations around product variety and price points, revealing a wide variance. "Single cohort helps us a lot, and then you can keep announcing cohorts," Joshi advised. This success led to expanding to other migrant Indians facing similar challenges of missing family occasions.
The imperative of team building and capital
Post-product-market fit, securing capital became crucial. For a platform business like IGP, this meant investing heavily in technology. However, a non-negotiable factor was building a robust core team. "It's important to have at least about six to eight core members right from the start; it will cost a lot more," Joshi emphasised, recalling the significant investment in their first highly-paid, experienced employee. "The journey is an ever-growing journey, so let's not compromise on something that has been extremely important for us."
Marketing in a D2C world: Proximity and policy
In the D2C landscape, traditional distribution channels are limited, making direct customer engagement vital. "For us, it's like 90 per cent [traffic from our own platform] because we have platforms," Joshi noted. This direct interaction is crucial for gathering feedback and refining the product. Lessons learned were practical: "Chocolates cannot be couriered in it but sweets can."
Recognising the rapid growth of third-party logistics in India, the IGP team understood the importance of seamless delivery. Consumers expect products to arrive in perfect condition, mirroring a retail experience. The platform's defining differentiator came from a tough decision: establishing their own dark stores in 2018, even before quick commerce boomed. "We realised that 89 per cent of our consumers were basically when they were calling us for their feedback, they were asking only one question, that, 'Can I get this product in the next four hours?'" This proactive move addressed an immediate consumer need, fostering "brand love" through superior product delivery.
Growing digital channels: Time, effort and quality
For D2C brands heavily reliant on digital-first channels, Joshi advised against expecting quick, cheap returns. "Every single channel will require time, effort, energy, quality of content, quality of pictures," he stated. Digital platforms, optimising for clicks and revenue, favor brands that invest in high-quality engagement. As these channels mature, strategic partnerships further amplify reach.
From humble beginnings with a few dozen consumers nine years ago, IGP now attracts about 60 million visitors to its platform. They travel approximately 400,000 kilometers daily, delivering gifts across the country. This continuous evolution, marked by constant pivots and expansions, remains the core DNA of the brand, stated Joshi.