Shantanu Deshpande, founder of Bombay Shaving Company, explains the business model expansion needed to scale an Indian hair removal company to 1,000 crore INR in scale.
“I think to build a thousand crore business will require a con, you know, combination of product and service business. So it might involve salons. It might involve clinical treatments. It might involve hair treatments in, in, with dermatologists.”
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More from Shantanu Deshpande
Insight
Deshpande argues keeping early startup teams financially constrained increases burnout risk
“And investors try to keep that, keep founders and early teams in poverty for longer. They feel like that person will put in Jeejaan for their cost. It's a bad idea because your burnout risk is high.”
Shantanu DeshpandeJul 26, 2021▶ 35:29Brand Building, fundraising by the founder of Bombay Shaving Company, Ex- McKinsey, IIM
AssertionNot checkable as stated
Dollar Shave Club's disruption model fails in India against cheap Gillette
“In the U S a Gillette razor cartridge sells for three, three and a half dollars. So Dollar Shave Club could come in at one and a half, two dollars with 80% quality and build out a scalable business. India, a Mark III cartridge you get for 80 bucks is like 1.1 …”
Shantanu DeshpandeJul 26, 2021▶ 14:30Brand Building, fundraising by the founder of Bombay Shaving Company, Ex- McKinsey, IIM
Insight
Consumer brands should raise small capital rounds to build brand, not revenue
“So my belief was always that we should never raise money to buy revenues. You should always raise money to build brands. Which is why you should always raise small amounts of money and not a large.”
Shantanu DeshpandeJul 26, 2021▶ 23:16Brand Building, fundraising by the founder of Bombay Shaving Company, Ex- McKinsey, IIM
Opinion
Deshpande calls financial VCs cheerleaders compared to strategic corporate investors
“So financial investors are in my view, they are cheerleaders, right? They don't add and like Colgate and record can add tangible impact to it.”
Shantanu DeshpandeJul 26, 2021▶ 44:21Brand Building, fundraising by the founder of Bombay Shaving Company, Ex- McKinsey, IIM
Insight
D2C brands compete easier with FMCG giants online than physical offline
“It's easier for me to compete with Gillette and Nivea on Amazon or on Google, as opposed to in Two million stores.”
Shantanu DeshpandeJul 26, 2021▶ 17:04Brand Building, fundraising by the founder of Bombay Shaving Company, Ex- McKinsey, IIM
PredictionNot checkable as stated
Deshpande predicts women's products will reach 50% of revenue within one year
“I think over the next one year, it will be 40 to 50% of our business. It will be women.”
Shantanu DeshpandeJul 26, 2021▶ 18:15Brand Building, fundraising by the founder of Bombay Shaving Company, Ex- McKinsey, IIM
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