A calibrated approach to growth will go a long way in building a brand sustainably. Do not obsess about becoming a unicorn in defined time frames
‘Enduring brands take time to build.’
This line comes up in our meetings with every consumer founder and it evokes a range of responses such as, ‘that’s the first time I heard a VC talk about patient business building’ and ‘are you out of your mind? How do you make your returns work?’Â
Building brands and businesses sustainably is particularly relevant as India is minting a record number of unicorns, businesses are blitz scaling and raising incredible amounts of capital. Building businesses in a capital efficient manner is a viable alternative.Â
Consumer brands need a different approach. A consumer brand will take longer than a tech business to achieve similar scale. However, if the consumer brand consumes a fraction of the capital as compared to the business, the returns are similar. And most importantly, the consumer brand avoids the high-risk approach of pursuing a ‘billion or bust’ trajectory’. There are two pillars on which our investment strategy rests:
A calibrated approach to growth will go a long way in building a brand sustainably. There is no point in chasing growth for growth’s sake and overcapitalising brands in the pursuit of exponential growth. Do not obsess about achieving unicorn outcomes in defined time frames.