₹1 Lakh Store
⌘K
GETTING STARTED
FIND — Get an Idea
VALIDATE — Hit PMF (Phase 3)
UNIT ECONOMICS — First (Phase 4)
SCALE — Build to ₹1L/mo
AI & AUTOMATION
ANALYTICS & DATA
FINANCE
    • Cash Flow Projection
    • Working Capital Needs
    • COD Float Management
    • GST Filing SOP
    • TDS on Payments Guide
    • MSME Loan Options
    • Revenue-Based Financing
    • P&L Template (Monthly)
TOOLS & CALCULATORS
RESOURCES
  1. FINANCE
  3. Working Capital Needs

Finance

Working Capital Needs

Working capital is the money you need to keep operations running — inventory, ads, shipping, and salaries. Know exactly how much you need before you run out.
₹30-50K Minimum2-3 Weeks COD Float20% Emergency BufferInventory + Ops + Ads

₹30-50K

Minimum Working Capital

Even for the smallest D2C brand

2-3 Wks

COD Float

Cash stuck in transit

20%

Emergency Buffer

Above your operating needs

Inv+Ops+Ads

Core Components

Three pillars of working capital

Working Capital Breakdown

ComponentMonthly Estimate% of TotalNotes
Inventory Purchase₹1,00,000-3,00,00040-50%Order 4-6 weeks ahead of projected sales
Ad Spend₹50,000-2,00,00025-35%Meta + Google ads — your biggest variable cost
Shipping & Packaging₹20,000-60,00010-15%Includes courier charges, packaging material, returns
Platform & Tools₹10,000-30,0005-8%Shopify, analytics, apps, payment gateway fees
Salaries & Operations₹30,000-1,00,00015-20%Fulfillment staff, customer support, VA
Emergency Buffer20% of total20%Cash reserve for unexpected costs, delayed payments, returns spike

Bootstrap vs Funded

Bootstrap Path

Working Capital: ₹50K-2L to start

Strategy:

  • Start with limited inventory — restock based on actual demand
  • Reinvest every rupee of profit back into inventory and ads
  • Use COD carefully — 60%+ COD means 2-3 weeks of float
  • Keep fixed costs minimal — no office, use freelancers

Risk: Slow growth, stockouts during demand spikes

Timeline to profitability: 6-12 months

Funded Path

Working Capital: ₹5L-20L to start

Strategy:

  • Invest in adequate inventory upfront for faster fulfillment
  • Spend aggressively on ads to find winning creatives faster
  • Build team earlier — hire for fulfillment, marketing, support
  • COD float is less stressful with cushion capital

Risk: Burn rate pressure, must hit growth targets

Timeline to profitability: 12-24 months

Working Capital Checklist