Brandless Inc., a startup that set out to challenge household names like Crest and Kraft with a one-price-for-all online store, has shut down, becoming the first venture backed by SoftBank Group Inc.’s 9984 $100 billion Vision Fund to fold, the Wall Street Journal reported. Brandless launched in 2017, selling generic consumer staples attuned to personal health and the environment, all for $3. The idea: cut out supermarkets and traditional marketing, and funnel the money toward making products to compete with pricier name brands. But it appears American shoppers need more than a $3 price tag to part with brand-name peanut butter and hand soap. In pulling the plug this week, Brandless’s investor-led board said the market for selling goods online directly to consumers is “fiercely competitive and ultimately proved unsustainable” for the company’s business model. Brandless had a high-profile backer in SoftBank, which promised the Silicon Valley startup $240 million but delivered only $100 million, people familiar with the matter said. Investors grew frustrated with losses at Brandless, and pushed for a quicker path to profitability, before ultimately deciding to close the company.
