What does a healthy CM1 / CM2 / CM3 actually look like for an Indian D2C brand?
The short answer
Rules of thumb for Indian D2C: aim for CM1 (gross) of 60%+ so there's room to absorb the ecosystem tax, CM2 comfortably positive after shipping, RTO and payment fees, and a CM3 that's positive or at worst a small, deliberate loss you're funding for growth. If CM1 is below ~50% you almost never get to a positive CM3 once ads and logistics pile on. Benchmark yourself at the order level and by SKU, not on a blended P&L that hides your loss-making hero product.
A quick summary to orient you. The real value is below: the resources worth your time, from people who've actually done it, not us.
Here are the resources
Hand-picked from around the web, each with a note on why it earns your time. India-specific ones carry a badge.
Why we picked it
An Indian CA breaking down the exact CM1/CM2/CM3 framing that Indian founders and investors use in board meetings and Shark Tank pitches. Short, rupee-native, and the fastest way to internalise the three-layer stack the rest of this category assumes you know.
Why we picked it
A reference list broader than just CM1/CM2, useful once you've got the basics down and want to know what an actual CFO would track for a scaling Indian D2C brand.
Why we picked it
Ties unit economics directly to Indian D2C cost structures, COD/RTO rates, marketplace commissions, gateway fees, rather than a generic global framework you'd have to adapt yourself.
Why we picked it
Goes one level deeper than a formula: it rebuilds the contribution-margin income statement for a real D2C P&L, so you can structure your own sheet the way a finance-literate operator would. The right reference once you're past the basics and want to model properly.
