Myntra’s Creator-Led Pivot, Paytm vs WinZO, and SEDEMAC Mechatronics’ IPO Dreams

Indian e-commerce is trying to solve a simple yet expensive problem: CAC keeps rising and attention keeps shrinking. For a decade, the growth playbook was Google-Meta ads and discounting. That math is now broken. So the platforms are turning into media companies - recording shows, hiring creators, pushing shoppable video, and asking content to do what ad budgets no longer can. Myntra is the loudest signal: creator-led commerce already drives ~10% of its revenue and it wants that to hit 20% by 2026.

The pitch is elegant: stop renting clicks, and build trust. Myntra says users who engage with creator content convert 25–28% better than non-engagers, and it has built a small army to make that happen - 3.5 million “shopper-creators,” 350,000 monthly active creators, 160,000 external influencers pushing 9 billion impressions, and 3,000+ hours of interactive programming on Glamstream. If content is the new ATC button, Myntra wants to own the whole pipeline from scroll to buy.

There’s logic under the hype. Traditional performance ads have inflated to ₹1,500-₹2,000 CACs for many categories, while micro/nano influencer pathways often land between ₹50 and ₹300 per conversion. A shift from fixed ad spend to variable, conversion-tied payouts protects margins and reduces the risk of burning cash for “awareness.” In fashion, the most video-friendly category, 15-minute explainers and try-ons beat static catalogues because they solve fit, drape, and doubt in one shot. That’s why creator commerce has momentum in apparel and beauty first.

But momentum isn’t a moat. India is trying to copy a China playbook without China’s plumbing. Douyin and Kuaishou run closed, vertically integrated systems where discovery, payments, logistics, and creators live in one loop; live commerce there converts at 10-15%. In India, the pipes are fragmented across Instagram, YouTube, WhatsApp, and the marketplaces; live conversion sits at 2-3%. Even Douyin is rebalancing and targeting ~50% “shelf” (search/catalogue) GMV because pure content-led discovery is expensive to sustain at scale. That’s a warning: content can ignite demand, but the shelf must carry repeat buys profitably.

The arms race is already raising costs. Creator fees are inflating 15-20% YoY in crowded categories, while only 10-15% of creators drive meaningful sales. D2C brands with 60%+ gross margins are poaching the best creators with higher commissions (often ₹200-₹500/order or ~10%), forcing marketplaces to bid up payouts just to stay relevant. If creator-led GMV grows to double digits, the bargaining power shifts to talent, and variable costs creep into the red. Meanwhile, only 12% of India’s D2C brands are profitable - proof that “influence → conversion” doesn’t automatically fix unit economics.

Trust is the other leak in the bucket. ASCI flagged that 76% of top Indian influencers violate disclosure norms. When ad is fuzzy, authenticity erodes. Add fashion’s 25-40% return rates, and you’re staring at a costly loop: subsidised influence triggers impulse buys, returns spike, reverse logistics eat margins, and the platform pays creators regardless. If compliance tightens (as it should), the “compliance-adjusted CAC” rises further.

Everyone’s picking a lane. Flipkart is stitching a media halo - buying Pinkvilla, standing up Creator Cities, and streaming live shopping to widen top-of-funnel reach in Tier-II/III. Amazon is leaning on its storefront-style Influencer/Associates programs and the trust moat of reviews, letting creators curate but keeping the transaction rails conservative. The real outside threat is Meta: eight in ten Indians discover via social, most of them on Instagram/Facebook. If discovery stays off-platform, marketplaces bleed intent - and pay for it. That’s why Myntra is pulling content inside the app; it wants first-party data, attribution, and habit, not hand-offs.

So is creator commerce the future or a bubble? Both, depending on execution. It’s the future because content is the only scalable defence against CAC inflation and ad fatigue. It’s a bubble when platforms confuse “more creators” with “more profit,” overpay the top 10% for decaying attention, and under-invest in compliance and shelf economics. The winners will look boring on spreadsheets and beautiful on repeat purchase: lower blended CAC, stable contribution margins after returns, and rising LTV from content-engaged cohorts.

Three shifts can keep this honest. First, democratise influence: bias toward micro/nano networks and “shopper-creators” where payouts are smaller, authenticity is higher, and churn hurts less. Second, build a creator-to-shelf hybrid: let long-form, high-trust video drive discovery, but push carts to efficient shelf flows for routine reorders. Third, turn compliance into a feature: platform-level auto-disclosure, claim vetting, and penalties for violators. If users trust the label and the refund, they’ll trust the recommendation.

We think creator commerce will reshape Indian e-commerce, but not as a magic wand. It’s a new muscle layered on an old skeleton. Do the hard parts - intentful content, disciplined payouts, ruthless return control, real disclosure - and you get a flywheel that bends CAC down and LTV up.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Hum Bhi Hai Josh Mein”: NCLT Issues Notice To WinZO On Paytm’s Insolvency Plea

The NCLT has issued a notice to WinZO following Paytm’s insolvency plea over unpaid dues of INR 3.6 Cr for promoting WinZO’s gaming products.

WinZO’s counsel argued that the invoices were never validated via email, as required under clause 14 of the purchase order. The company has firmly denied Paytm’s claims, stating that the invoices in question were never approved by its team.

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“Parcham Lehra Do”: A91 Partners, Xponentia-Backed SEDEMAC Files For IPO

Pune-based SEDEMAC Mechatronics has filed papers with SEBI for an IPO that’s purely an offer-for-sale, signaling a partial exit for its early backers.

A91 Partners will offload the largest chunk - over 24 lakh shares - followed by 360 ONE Asset. Known for powering giants like Tata Motors, Mahindra, and TVS, SEDEMAC’s move marks another engineering-led player shifting gears toward the public markets.

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“Jai Jawan, Jai Kisan”: UrbanKisaan reports second consecutive year of profitability

UrbanKisaan reported over Rs 31 crore in revenue for FY25, marking a 67% year-on-year rise, while net profit tripled to Rs 6.4 crore.

The growth was largely driven by Gene Rush, its AI-led seed development platform. The technology has significantly reduced seed development timelines from 7-15 years to just 2-3 years, underscoring a quiet shift toward data-driven agriculture.

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1. Bengaluru-based HRS Navigation has raised $5 Mn in a Pre-Series A round led by GVFL, Physis Capital, and Sathguru Catalysers. The startup, which builds image-guided surgical systems likened to a GPS for surgeons, plans to use the funds to scale manufacturing and expand globally.

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2. Bombay Shaving Company has raised INR 136 Cr in a round led by Sixth Sense Ventures, with participation from CEO Shantanu Deshpande, Rahul Dravid, and others. The men’s grooming brand plans to use the funds to strengthen its retail presence and brand visibility as it readies for a potential IPO.
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3. Haus & Kinder has raised INR 30 Cr in its first funding round led by Sauce.vc to scale operations and expand its product categories. The D2C home and furnishing brand, which doubled its revenue to INR 65.9 Cr in FY24, now aims to hit INR 250 Cr by 2026.
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4. Bengaluru-based Nyayanidhi has raised $2 Mn to advance its AI-driven legal solutions for enterprises. The startup will use the funds to expand its advocate network, enhance its AI tools, and strengthen its presence across new markets.
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5. Ecozen is set to raise $12.6 Mn in debt funding from UTI International and Spark Capital to meet its immediate capital needs. The Pune-based cleantech firm plans to use the funds to scale its solar-powered pumps, cold storage units, and other sustainable energy solutions.

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6. Personal loan platform Finnable has raised INR 500 Cr to expand its lending portfolio and upgrade its technology stack. The fresh capital will also help the startup widen its reach among professionals seeking quick, paperless loans.

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7. Waaree Energy Storage Systems has secured Rs 325 Cr in a round led by Niveshaay, with participation from industry leaders like Vivek Jain and Saket Agarwal. The funds will fuel expansion in cell and pack manufacturing and help scale its battery storage solutions across India and select global markets.

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8. FES Café, known for its eggless desserts, has raised $1 Mn in a pre-Series A round led by 12 Flags, the consumer fund of ex-Reckitt CEO Rakesh Kapoor. Existing investor Wolfpack Labs also doubled down, backing the brand’s next phase of growth in India’s café space.

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