Understanding the Reality of the Influencer-Turned-Entrepreneur Wave

India is witnessing a digital revolution, with one of its most exciting trends being the rise of the influencer-turned-entrepreneur, popularly known as Creatorpreneurs. Once solely focused on brand deals and sponsored content, social media influencers are now launching their own businesses, leveraging their digital fame to build brands. This shift marks a new chapter in India's booming creator economy, where online popularity is morphing into entrepreneurial power. As influencers move from content creation to business ownership, they're tapping into a growing demand for authentic, influencer-driven products. However, the path to success is far from simple. While these creators have built loyal followings, turning that influence into a sustainable business involves significant challenges—especially when it comes to scaling, product quality, and customer acquisition. The question is selling your brand as simple as branded content? 

But despite the hurdles, this trend is reshaping how businesses are built and run in India. Influencers are no longer just promoting brands; they’re becoming brands themselves, creating products that resonate with their audiences. This entrepreneurial wave represents a broader cultural and economic shift, opening up exciting new opportunities in India’s rapidly evolving business landscape. The fact is that creators and influencers know that Social Media fame is fickle and so is the guarantee of it lasting for a while. This has been the driving force for a majority of these influencers-turned-entreprenuers/ Creatorpreneurs.

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The Rise of the Creator Economy in India

The growth of the influencer economy in India has been staggering. A recent report from Kalaari Capital estimates that there are over 80 million online content creators in India, with 200,000 of them being full-time professional creators. As of 2023, the influencer marketing industry is expected to grow at a compound annual growth rate (CAGR) of 5%, reaching an estimated Rs. 2,200 crore by 2025. This growth reflects the immense earning potential for social media influencers, many of whom are no longer content with simply promoting other brands but are now launching their own businesses.

According to the same report, influencers with a following between 10,000 and 1 million earn anywhere from Rs. 16,000 to Rs. 2 lakh per month, while those with more than 1 million followers can rake in up to Rs. 52 lakh per month. These substantial earnings from brand deals and content monetisation have provided influencers with the financial leverage needed to start their own ventures.

Influencers as Entrepreneurs: A Natural Evolution

The transition from influencer to entrepreneur often begins when creators, having established a solid online following, look for new revenue streams. Traditionally, social media influencers have relied on brand collaborations as their primary income source. But as the influencer landscape becomes more saturated, many influencers are now exploring avenues such as direct-to-consumer (D2C) brands, e-commerce, and subscription services.

One notable example is Aanam Chashmawala, a beauty and fashion influencer, who started her own beauty line, Wearifed after recognising the lack of diversity in the Indian beauty industry. Similarly, Arabellaa, founded in 2015 by fashion content creator Juhi Godambe, is a brand for women who love experimenting with trends while staying true to their personal, chic, and sexy style. Beauty content creator Malvika Sitlani launched her beauty and skincare brand MASIC on Myntra in 2022. All of these influencers leveraged their vast following to launch successful businesses, demonstrating the symbiotic relationship between influencer fame and entrepreneurship.

Another creator-turned-entrepreneur is Harshita Gupta, whom Local Samosa interviewed recently. Chikankari Hues, founded by Harshita Gupta and Shrey Chhabra in 2024, modernises Lucknow’s traditional Chikankari embroidery by blending it with bold, contemporary styles. The brand empowers women to feel confident in Indian wear, pairing intricate designs with edgy accessories like leather boots. Committed to preserving Chikankari’s heritage, the brand also advocates for better wages and working conditions for the artisans behind the craft.

Challenges of Being an Influencer-Entrepreneur

While the influencer-turned-entrepreneur trend seems promising, it comes with its own set of challenges. The most obvious hurdle is the lack of experience in business management. While influencers excel in content creation, many find the operational complexities of running a business—such as product development, customer acquisition, and financial planning—daunting. For example, Ranveer Allahbadia, better known as BeerBiceps, started his entrepreneurial journey with his fitness brand, BeerBiceps Fitness, and later launched Monk Entertainment to handle his business ventures. Despite his success as a YouTube personality and podcaster, he acknowledges that managing a business requires different skills than those needed to produce content. He leveraged the success of his podcast and started a podcast training course called Beerbiceps Skillhouse. 

The pressure of delivering quality products to an audience that trusts their opinion can also be overwhelming. Influencers who become entrepreneurs have the advantage of a loyal customer base, but this also means that any product or service they launch is immediately scrutinised. As Shivangi Sharma, co-founder of Snacc Cosmetics, pointed out in an interview, "You can't be a credible content creator with a bad product". The couple launched Snacc Cosmetics, a brand focused on affordable makeup tools, after realising the lack of quality products in the market. Despite their growing business, they are mindful of maintaining the credibility they built on social media.

The Role of Direct-to-Consumer (D2C) Brands

One of the most significant trends among influencer-entrepreneurs in India is the rise of D2C brands. These businesses bypass traditional retail channels and sell products directly to consumers, often leveraging social media for marketing. Chef Sanjyot Keer, with 13 million YouTube followers, launched YFL Home but emphasized that building a brand is more time-consuming and challenging than creating content.

Jyotii Sethi, a fashion and lifestyle YouTuber, also recently ventured into entrepreneurship with her saree brand, Aabhaari. Unlike most creators, she chose not to go social-first but instead showcased her collection at exhibitions before launching online. This strategy allowed her to gauge customer interest in real time before building her online presence. "YouTube taught me how to form a company, what a GST number is, and more," she was quoted saying, highlighting the importance of learning the business fundamentals in a hands-on way.

Another content creator who is making waves is Shlok Srivastava, who came into his element on YouTube. He launched his mobile skins brand Layers in September 2022 in partnership with Neel Gogia, co-founder of influencer marketing agency IPLIX media. In 2023, they also launched the official Official Marvel Inspired Designs and have so far sold over 70,000 skins, with an average order value of Rs. 700 each. On November 15, 2024, the brand is set to launch their new Layers smart watch.

The Financial and Operational Realities

While influencer-entrepreneurs have significant advantages, including their established social media presence and loyal fanbase, the financial and operational realities of running a business are still challenging. Customer acquisition costs are often higher for D2C brands, and influencers must compete with established brands that have years of experience in logistics and customer service. Additionally, influencers need to balance their business commitments with content creation, which can lead to burnout.

A key challenge for many influencers is scaling their business. Sanjyot Keer, for example, started his kitchen appliance brand with one product—an innovative mixer grinder. But scaling a business requires significant capital and resources, something that not all influencers can afford. Partnering with established brands or seeking investment from venture capital firms can help influencer-led brands navigate these challenges. 

The Future of Influencer-Entrepreneurs in India

The influencer-entrepreneur wave in India is far from a passing trend. According to experts, the economic impact of the influencer community is expected to exceed $6 billion by 2030. With influencers diversifying into industries ranging from beauty and fashion to fitness, food, and tech, the opportunities are vast.

However, while many creators are achieving significant success, others are struggling to balance the demands of entrepreneurship with the expectations of their audience. The market for influencer-driven products is competitive, and only those who can offer differentiated products and exceptional customer experiences will survive in the long term.

A CEO of an influencer marketing platform suggested in a talk that creator-entrepreneurs are the future of the creator economy. Those who manage to build sustainable businesses, adapt, and scale will succeed. Many believe that it’s not a fad—it's the natural evolution of this ecosystem.

The coming years will likely see more influencers making the leap to entrepreneurship, but for those who succeed, the rewards will go beyond monetary gain. They will have created brands that reflect their personal values and resonate with millions of consumers who trust them. However, these influencer-led brands that do get a cushioned start still rely on the actual product or service exceeding the person's fame and recall value to actually stay afloat. Influencers who are now entrepreneurs are aware that their own following might help their brand get a good launch but to become successful, the venture needs to be accepted, appreciated and valued.