Scale Without Burn

Hey there,

In our latest Field Notes, we unpack the capital efficiency tactics of three Indian consumer brands that have scaled significantly while maintaining financial discipline.

For B2C companies, growth and profitability are no longer mutually exclusive goals—and for good reason. The most resilient consumer brands have discovered that capital efficiency actually builds momentum rather than hindering it.

For this Field Notes article, we spoke with founders and operators from three companies that exemplify capital-efficient growth at different revenue stages:

• Dhruv Bhasin and Dhruv Madhok , co-founders of Arata – a haircare D2C brand doing ₹60–65 crore in revenue with 75% gross margins.

• Vikram Kankaria , co-founder of FASHOR – a women’s ethnic wear brand with a ₹100 crore topline, app-led D2C engine and a Blume Fund IV portco.

• Arindam Paul , Chief Business Officer at Atomberg Technologies – a consumer durables company that crossed ₹1000 crore in revenue with strong margin profile.

Here are some earned secrets you won't find in typical startup advice:

📊 Arata's "ASP Reality Check": They calculate margins on actual selling prices, not MRP. "The delusion of making money at MRP never happens," says co-founder Dhruv Bhasin. This simple shift in perspective transformed their unit economics.

🧪 Fashor's Testing-at-Scale Model: Instead of betting big on seasonal collections, they test up to 400 designs monthly in small batches, then scale only proven winners. This approach minimizes both inventory and design risk while maximizing variety.

🔬 Atomberg's R&D as Margin Expander: Counter to conventional wisdom, they've improved gross margins while scaling by investing heavily in R&D that simultaneously enhances product performance and reduces manufacturing costs.

🔄 The Channel-SKU Revelation: Arata discovered that bestsellers vary dramatically across channels. "My top products on quick commerce aren't the same as on Amazon. Amazon's top products aren't my website's top ones." This insight led to channel-specific marketing strategies.

🔮 Destination Margin Planning: Before entering any category, Atomberg models what their unit economics will look like at scale. "If my destination gross margin doesn't support my current pricing, I should change it now."

⚖️ The Marketplace Trade-off: Fashor grew from ₹12 crore to ₹90 crore in 3 years through marketplaces, spending "hardly a crore or two" on ads. The trade-off? "It ate into our D2C sales when customers found our products cheaper during marketplace sales events."

Curious how these brands made these frameworks work in practice? Read our full article with detailed case studies on each company.

Read the Full Article → https://blume.vc/commentaries/the-insiders-guide-to-capital-efficient-scaling-ft-arata-fashor-and-atomberg

Until next time,

Blume Team

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