Shankar Prasad (Plum Goodness): Why Bootstrapping Built a Better Beauty Brand

In a world often obsessed with hypergrowth and unicorn valuations, Shankar Prasad, founder of Plum Goodness, offers a refreshing perspective. His journey building India's first 100% vegan beauty brand is a testament to the power of purpose, customer obsession, and a deeply ingrained sense of frugality.

This isn't just another startup success story; it's a masterclass in building a lasting brand that resonates with meaning and values.

This article delves into the key insights and principles that have propelled Plum Goodness from a bootstrapped startup to a projected ₹500 crore revenue powerhouse.

Check out the video of the conversation here or read on for insights.

🎯 The "Goodness" Imperative: Defining Plum's Core Purpose

Shankar Prasad's elevator pitch for Plum Goodness is disarmingly simple:

"The reason the brand exists is to add goodness to this world."

This wasn't a marketing tagline; it was the result of deep introspection, inspired by Guy Kawasaki's "The Art of the Start." The question "Why is your world a better place when your brand is around?" became the guiding principle. Personal care and beauty products were almost secondary to this overarching mission. He adds that the concept of goodness is intuitive.

"Everybody knows what good is, even less,"

🤝 Living the Values: From Giving Back to Customer Delight

Plum's commitment to "goodness" wasn't just rhetoric. From its inception in 2014, the company pledged 1% of sales to environmental causes, a practice uncommon at the time. They also took a strong stance against fairness creams, a significant category in the Indian beauty market.

"We went on record to say that we will not be making a fairness cream,"

This decision demonstrated a commitment to inclusivity and challenged industry norms. But above all, Plum prioritized customer delight.

"Customer delight remains our number 1 value."

This wasn't lip service. Shankar himself would personally address customer complaints, even with a dedicated customer service team in place, demonstrating that care permeated every level of the organization. He recounts reviewing even 1 and 2 star reviews.

📈 Bootstrapping to ₹500Cr: The Financial Journey

Plum's financial journey is a compelling case study in sustainable growth. Shankar bootstrapped the company for five years, building a solid foundation before seeking external funding. He mentions they were profitable as early as 2016,, even if on a small scale.

The first funding round came in 2018, followed by a Series B round during the pandemic in 2020, and another in 2022. The total funding raised is approximately $50 million, with notable investors including Unilever Ventures and Fairy Capital.

Importantly, the initial capital infusion was used to stabilize working capital, not to fund operational losses.

"We were not burning money; we were simply not solving for the future,"

This highlights a crucial distinction: Plum's growth was driven by genuine demand and operational efficiency, not artificial inflation. The brand is now on track for a ₹400 crore revenue run rate. However, the long-term vision transcends mere financial metrics.

"Our vision is to touch a billion lives every day."

🎓 The Founder's Path: IIT, Unilever, and Faces Canada

Shankar Prasad's background uniquely positioned him for success. He graduated from IIT Bombay with a degree in Chemical Engineering. A colorful brochure from Hindustan Unilever sparked his interest in consumer goods.

"I saw an image of an ice cream production line, and I said, this looks like a fun place to be,"

His time at HUL instilled a deep respect for financial prudence.

"It just teaches you to be very, very respectful of money,"

This discipline would prove invaluable during Plum's bootstrapping phase. Before founding Plum, he also gained crucial experience in the cosmetics industry at Faces Canada, where he learned the importance of adapting products to local market preferences.

"None of these shades will work here,"

This realization underscored the need for deep consumer understanding, a cornerstone of Plum's success.

🧴Product Philosophy: Skincare, Haircare, and the Pursuit of Excellence

Plum's initial focus on skincare was a strategic choice. Shankar believed skincare fostered higher customer loyalty compared to color cosmetics. He adds that the category needed more thought. The aim was to create products that made a tangible difference in people's lives.

The brand later expanded into haircare and makeup, but the commitment to "clean" formulations presented unique challenges, particularly in haircare.

"Clean formulations for hair are much more complex than skincare,"

The sensory expectations for hair products are higher, requiring a delicate balance between clean ingredients and consumer satisfaction.

📊 Conquering the Digital Landscape: From ₹100 Ads to Marketplaces

Shankar's early foray into digital marketing was a testament to his resourcefulness. He started by writing blogs, having little knowledge of social media platforms in their early days in India.

"I had no idea about Facebook; Instagram was still very new in India,"

His first online advertising experiment involved a modest budget of ₹100. This small investment yielded surprising results, laying the groundwork for Plum's future digital strategy. Online marketplaces, particularly Amazon, played a pivotal role in Plum's early growth. Shankar recalls personally delivering the first order to Amazon's warehouse.

"It was a big moment for me,"

"I drove it to that place myself,"

🏬 Channel Strategy: Balancing Online Dominance with Offline Presence

While online sales remain Plum's largest channel, accounting for 60% of revenue, the company has strategically invested in both D2C (direct-to-consumer) and offline expansion. They've enhanced their website's user experience and fulfillment capabilities. Offline, Plum has experimented with various retail formats, including exclusive outlets and shop-in-shop models.

"We currently have thirty-two exclusive outlets, which provide the purest brand experience offline,"

This multi-channel approach reflects a customer-centric philosophy: being present where the customer prefers to buy. Shankar puts it succinctly:

"You can't be offline in an offline store."

⚙️ The Lean Organization: Structure, Technology, and Data

Plum's organizational structure has evolved from a flat hierarchy to a five-tier system, but it remains relatively lean. Shankar emphasizes the importance of open communication. The company is structured around key functions: online sales, offline sales, marketing, technical formulation, finance, and supply chain.

"We don't have a tech team at all... It's a conscious choice."

This decision stems from the challenges of managing tech talent in India. Instead, Plum partners with external technology providers.

Data plays a crucial role in driving business decisions, from product development to marketing investments.

"Where do I invest my marketing dollars? That’s the biggest use of data for us,"

A small team of data scientists ensures data quality and accessibility across various channels.

🚀 No Regrets: The Power of the Bootstrapped Path

When asked if he has any regrets about bootstrapping Plum for five years, Shankar's response is unequivocal:

"Absolutely not."

He emphasizes that his primary focus has always been on building a brand that delights customers, not on achieving rapid scale at any cost. While he acknowledges that other brands might have grown faster, he values the authenticity and customer connection that Plum has cultivated. He believes that:

"Biggest is not necessarily the best."

And that the branded goods space, is not about winner takes all:

"The world of branded goods is not about a winner take all."

💡Customer Obsession: The Heart of Plum's Culture

Customer obsession is the cornerstone of Plum's culture, starting from the initial product concept and extending to every aspect of the business.

"Customer view is the only view that matters."

This principle is reinforced by Shankar's personal commitment to reading and responding to every one-star and two-star customer review. This hands-on approach fosters a culture of accountability and responsiveness throughout the organization.

🌍 A Billion Lives: The Long-Term Vision for Plum Goodness

Shankar Prasad's ultimate vision for Plum Goodness is ambitious yet deeply rooted in the brand's core purpose:

"We aim to touch a billion lives every day."

This vision goes beyond financial success; it's about creating a positive impact on consumers and reinforcing the message of "goodness." He acknowledges that achieving this vision may take time, but he remains optimistic and committed to the journey.

"If all goes well, we'll be something very special and meaningful,"

🔑 Reflections and Learnings from the Founder

Shankar also warns about the dangers of uncontrolled expenses that come with funding.

"When you open one tap, a thousand tabs open."

The Plum Goodness story is a powerful reminder that building a successful brand is about more than just numbers. It's about purpose, values, customer connection, and a commitment to sustainable growth. Shankar Prasad's journey offers valuable lessons for entrepreneurs and business leaders seeking to create something truly meaningful and enduring.

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