A Roadmap to DTC Turnaround, with Mehtab Bhogal, Cofounder, Karta Ventures

Live Event: Digital Shelf Summit Europe 2026: Beyond the Digital Shelf Into The Agentic Era

A Roadmap to DTC Turnaround, with Mehtab Bhogal, Cofounder, Karta Ventures

“We like the operational headache.” This quote from the conversation with Mehtab Bhogal, Cofounder of Karta Ventures, perfectly describes the grit and expertise it takes to make a living rescuing and reinvigorating distressed DTC businesses. Mehtab shared his turnaround process, how he evaluates opportunities, and his perspective on the current and future environment for DTC success as headwinds continue.

Key Discussion Points

• Current Challenges in DTC:

  • Issues from supply chain dynamics causing delivery times to fluctuate, driving container prices up.
  • The impact of the iOS update on digital advertising.
  • Tightening credit affecting business operations.

• Investment Focus:

  • Preference for businesses that are predominantly direct-to-consumer through their own websites.
  • Value found in companies with strong operational barriers to entry.

• Turnaround Strategy:

  • Emphasis on quick, actionable insights and operational improvements.
  • The approach towards managing distressed acquisitions effectively.

Interview Excerpts

Peter Crosby: "Mehtab, thank you for discussing your work at Karta Ventures. What insights can you share about the challenges DTC brands are facing?"

Mehtab Bhogal: "The rise in container prices has been a significant challenge. A 30-40% increase in customer acquisition costs following iOS changes has also impacted profitability for many brands."

Importance of Agility in DTC

• Multi-Touch Attribution:
  • Implementing comprehensive attribution methods to understand customer acquisition and adjust strategies accordingly.
• Rationalizing SKUs:
  • Streamlining product offerings to reduce complexity and improve operational efficiency.

Future Outlook

• Continued interest in acquiring distressed brands and transforming them into digitally native operations. Emphasis on obtaining skilled personnel to handle complex operational challenges.