“Don’t Start a Skincare Biz; You Will Get Stuck at ₹25L Sales,” Says Shark Tank Judge Shaily Mehrotra, Who Runs a 1500 Cr Skincare Brand

In a country witnessing a D2C explosion, launching a skincare brand seems to be the ‘cool’ thing to do, but the founder of Fixderma and Shark Tank India judge, Shaily Mehrotra, has a blunt message for aspiring beauty skincare entrepreneurs: don’t do it.

In a recent episode of the Startup Pedia podcast, the Fixderma boss advised young graduates and aspiring founders to stay away from the skincare industry, citing market saturation and brutal competition. 

When Jameel Akhter, co-founder of Startup Pedia and podcast host, asked how a young graduate or someone in their early twenties should enter the skincare industry, she responded by advising them not to pursue that path.

"Pehli baat to (First of all)... koi zarurat nahi hai skincare company banane ki (there is no need to start a skincare company). There is too much clutter, too much chaos in the market right now," Shaily Mehrotra told Jameel Akhtar.

‘Go Check Amazon and Nykaa First’

Shaily Mehrotra advised aspiring founders to first understand the ground reality before entering the skincare industry. She pointed out that the market today is heavily crowded, and many entrepreneurs underestimate the level of competition they are stepping into.

She also urged founders to do a simple check by exploring major marketplaces. According to her, thousands of brands are already competing in the same categories, leaving very little room for newcomers who believe they are bringing something unique.

Mehrotra further challenged the common belief among new founders that their idea is different or disruptive. Highlighting the importance of strong differentiation, capital, and long-term vision before entering the skincare space, Shaily emphasised that most products already exist in some form, and standing out requires far more than just launching another brand.

“Go and check on Amazon and Nykaa yourself. Type ‘sunscreen’ or ‘moisturiser’ and see how many companies show up. Do you think you are bringing something unique? That is not the case at all. Everything is already out there,” Mehrotra explained on the Startup Pedia podcast.

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The ‘Rs 25 Lakh Revenue’ Trap

Mehrotra warned that early traction in the skincare business can be misleading. She explained that launching a brand and achieving initial online sales is relatively easy today, especially with the help of digital ads and marketplaces. However, many founders mistake this early momentum for long-term success.

According to her, the real challenge begins after this stage. Scaling beyond the initial revenue ceiling requires significantly higher capital, stronger brand trust, and a differentiated product. Many startups fail at this point because customer acquisition costs rise sharply while repeat trust remains weak.

“By online selling, you will reach a certain level of sales very quickly. Maybe you will start doing Rs 20–25 lakh in sales, but scaling after that is very difficult. It is very, very difficult,” Mehrotra said on the Startup Pedia podcast, cautioning founders not to confuse early sales with sustainable growth.

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The Foreign Competition Challenge

Mehrotra highlighted another major hurdle for new skincare founders: the rapid entry of global brands into the Indian market. 

She pointed out that Korean and American companies are expanding aggressively, backed by strong capital, advanced formulations, and powerful marketing strategies.

“There are so many foreign companies coming to India. The way Korean companies do their PR, they are way ahead of us,” Mehrotra said, noting that competing with such players is extremely difficult for small or new startups.

According to her, these global brands understand branding, storytelling, and consumer psychology at a much deeper level. Their ability to build viral demand and long-term brand trust gives them a strong advantage over early-stage Indian startups that often operate with limited resources.

The Minimalist Exception

When asked about the success of brands like Minimalist, which scaled rapidly in recent years, Mehrotra clarified that they were not newbies. She pointed out that the founders had prior exit experience and, crucially, had backing from Unilever Ventures from day one.

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