Shankar Prasad (Plum Goodness): Why Bootstrapping Built a Better Beauty Brand
The Indian startup ecosystem is buzzing. Dreams are taking flight, fueled by ambition and increasingly, by capital. But what does it truly take to build a lasting consumer brand from the ground up in India? Forget the overnight success myths; the real stories are often decades in the making, forged through discipline, resilience, and an unwavering focus on fundamentals.
One such compelling journey is that of Shankar Prasad, the founder of Plum Goodness. Starting from a humble Chennai childhood to helming a beloved D2C beauty brand aiming for a ₹500 crore annual run rate, his story is a masterclass in principled entrepreneurship. It’s packed with real numbers, hard-earned lessons, and actionable insights for anyone building or dreaming of building in India.
Check out the video of the conversation here or read on for insights.
💡 The Seeds: Early Life & Lessons in Scarcity
Shankar grew up in Chennai in the pre-liberalization era – a time starkly different from today's consumption-driven India.
Humble Beginnings: His family lived on a household income of roughly ₹5,000 a month back then.
Supply-Constrained India: It wasn't just about money; access was limited. He vividly recalls needing a pre-paid 'milk card' just to ensure the daily supply, and struggling to get extra milk for guests.
"It was phenomenally supply constrained... very few brands... very few avenues for availability... It was as well supply constrained as it was income constrained."
This upbringing instilled a deep sense of frugality and resourcefulness – traits that would become foundational to Plum's DNA decades later.
🏭 The Foundation: IIT Bombay, Unilever & The Makings of a Product Guy
A strong academic foundation led Shankar to IIT Bombay for Chemical Engineering, followed by nearly eight years at Hindustan Unilever (HUL). This wasn't just a job; it was formative.
Deep Manufacturing & R&D: He worked in hardcore manufacturing and then product development, primarily in soaps and detergents – HUL's largest business then. He learned the intricacies of large-scale production, dealing with complexities like an 80,000 tons-per-annum soap line.
Process & Discipline: HUL taught him the importance of robust processes, quality control, and scaling replicably.
"What I'm finding is many of the principles [from HUL] are still applicable. Terms of being able to scale up properly, in terms of doing it first time right, solving for robustness of the formulation..."
Even then, the allure of consumer connection was strong. He recalls being drawn to HUL by a colorful brochure featuring an ice cream production line – it just looked "fun."
💼 The Transition: ISB, McKinsey, Private Equity & Learning the Business End
Seeking broader business acumen, Shankar pursued an MBA from ISB, followed by a stint at McKinsey. Even there, his focus remained on consumer goods. His next move into private equity with Everstone Group proved pivotal.
Operational Experience: Everstone acquired a majority stake in cosmetics brand Faces Canada, and Shankar stepped in to manage and scale the India operations for several years.
Learning the Front-End: This was his crash course in the retail side – managing assisted sales environments, training beauty advisors, handling inventory complexities, and understanding the nuanced world of color cosmetics.
"[At Faces] I learned the front end of the business... to be selling a ₹500 product... via a sales advisor who needs to be trained, motivated... managed... that is the first time I learned all of that."
He realized the Indian beauty market had unique demands. Simply importing Canadian shades wouldn't work.
"She said, 'Shankar, none of these [100 imported lipstick] shades will work here'... That's when they realized that this world of makeup and color cosmetics is extremely nuanced..."
This experience, combining his R&D background with front-end retail knowledge, unknowingly prepared him for his own entrepreneurial leap.
🌱 Planting Plum: The Why, The How & The Bootstrapped Grind (2013-2018)
At 38, Shankar decided to start Plum. The core idea wasn't just products; it was purpose.
The "Why": Adding Goodness. Inspired by Guy Kawasaki's "Art of the Start," the mission was clear from day one:
"We aim to add goodness to this world. Our product... this is almost incidental to why we exist... the reason the brand exists is to add goodness to this world. And that's why Plum Goodness is the second name of this brand."
Funding the Dream: He bootstrapped using his Provident Fund savings.
Extreme Frugality: The first four years were run from a 2-room apartment. Shankar took no salary for over three years. The "least count" principle (initially ₹1000) governed spending.
Product First: He chose skincare – a category driven by consideration and loyalty, allowing his product obsession to shine. He personally oversaw formulations.
Digital Native Beginnings: He taught himself digital marketing ("Eureka moment" discovering Facebook ads with a ₹100 budget) and launched on Shopify.
First Order: July 14th, 2014 – a date still celebrated as Plum's birthday. Hilariously, it was a Cash-on-Delivery order he couldn't collect payment for as his COD contract wasn't finalized!
Profitability: Discipline paid off. Plum achieved profitability by 2016, while still small and bootstrapped.
🚀 Scaling Up: Strategic Funding & Channel Expansion
After five years of profitable bootstrapping, Plum reached an inflection point around late 2018, doing roughly ₹10 Cr ($1-1.2M) in ARR. The market was heating up. A mentor's advice was crucial: staying bootstrapped might be "choking its potential."
Strategic Capital: Plum raised its Series A from Unilever Ventures (a homecoming of sorts), followed by Series B (Faering Capital) in late 2020 and Series C (A91 Partners) in early 2022, totaling "just less than" $50 Million.
"I look at capital as an input into the business rather than an end in itself... It's what you do with the money that's more important."
Immediate Use: The initial funding primarily addressed working capital needs fueled by growth and the cash cycle demands of entering offline retail.
Fueling Growth & Experiments: Funding enabled:
Category Expansion: Moving beyond skincare into Haircare (required iterations to get sensorials right), a dedicated Body Lovin' sub-brand, and Makeup.
Channel Expansion: Building an omni-channel presence. Today, Plum is roughly 50% online (D2C site + Marketplaces like Amazon, Nykaa, Flipkart) and 50% offline. Offline includes modern trade, general trade, and around 32 exclusive Plum outlets.
Maintaining Frugality: Despite funding, the bootstrapped ethos remains. Shankar emphasizes vigilance against unnecessary spending, using a vivid analogy:
Shankar: "When you buy toothpaste and the tube is full... How much toothpaste you squeeze out? And when you're down to the last... How much are you trying to actually squeeze out?... Just because you have a full tube doesn't mean you squeeze out whatever you want. You squeeze out what you need."
❤️ The Plum Philosophy: Product, People, Purpose
Underlying Plum's growth trajectory (now aiming for ~₹400 Cr ARR) are core principles Shankar consistently emphasizes:
Product Obsession: A relentless focus on quality and efficacy.
"It is relatively easy to get up to a 90 [out of 100]... somewhat difficult to get to a 95, very difficult to get to a 99... We are in this journey... to get from a 95 to 99 and beyond... Consumers appreciate the difference between a 99 and a 95."
Customer Delight: This is Plum's #1 value. Shankar still reads customer reviews daily and personally follows up on escalations.Shankar: "Somebody is taking a 500 rupee note out of their wallet... They have a hundred thousand million other uses for that... It is up to you to make sure that you absolutely delight them... Get them to say, 'Okay, here, take another 500 rupees...'"
Shankar: "Customer view is the only view that matters. My view doesn't matter... Their view is what matters."Purpose Over Scale Alone: While growth is pursued aggressively (Shankar calls himself "the most aggressive" in sales meetings), the ultimate goal isn't just being the biggest.
"Biggest is not necessarily the best... You get to being bigger by doing better things. You don't necessarily do things just to get bigger."
Building the Organisation: Scaling involves structure (Plum is now ~5 tiers deep) and talent (~140 field force), but also making conscious choices (like outsourcing tech development).
✨ The Vision: Touching a Billion Lives
What's next for Plum? Shankar's vision isn't just about market share; it's about impact.
"Our vision is to touch a billion lives every day... and every time we touch them, this message [of goodness] reaches them and there's a smile... let me sort of spread that word."
He believes Plum will remain an India-focused brand, given the depth and nuance of the domestic market. The goal is to build something "very special, very unique, very valuable," rooted in authenticity.
🏁 Takeaways for Indian Founders
Shankar Prasad's journey building Plum offers a wealth of lessons:
Experience Compounds: Seemingly unrelated experiences (chemical engineering, large-scale manufacturing, retail operations) build a unique founder skillset.
Frugality is a Superpower: Especially early on, discipline in spending builds resilience and focuses resources.
Product is Paramount: In crowded markets, exceptional product quality and customer experience create lasting loyalty.
Purpose Drives: A clear "why" beyond just profits can guide decisions and build a stronger brand connection.
Funding is a Tool, Not the Goal: Use capital strategically to solve specific problems or unlock specific growth opportunities, not just for vanity.
Obsess Over Your Customer: Truly understanding and delighting them is the ultimate growth hack.
Culture Needs Nurturing: As you scale, consciously work to preserve the core values that defined your early success.
Building a significant company in India takes time, dedication, and often, a non-linear path. Shankar Prasad's decade-plus journey with Plum exemplifies how combining deep operational expertise with unwavering values and strategic adaptability can create something truly special and successful.
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