[theme song plays]
[theme song continues]
Did you think that 50 episodes,
190 pitches, an investment of Rs. 80 crores,
and the Sharks roasting founders was everything?
No, there's a lot more left.
Our electrifying entrepreneurs are just getting started.
We received thousands of entries for this special episode
and a few selected have come here
to pitch their business to the Sharks.
Joining the Sharks on today's special episode is a guest Shark.
The founder and CEO of Happilo, Mr. Vikas Nahar.
[theme song fades]
Sharks, do you have the urge to eat something savoury or tangy?
Relishing raw mango with black salt has its own charm.
And just thinking about tangy tamarind makes my mouth water!
Sharks, we love piquant foods.
If you look at the history of packaged foods,
many foreign brands entered the market
and brought with them a variety of products.
For instance, biscuits, chocolate, chewing gum,
energy bars, breakfast cereals and even noodles.
And they overshadowed most of the unique indigenous products.
But not anymore.
We present to you GO DESi.
[pleasant music plays]
Greetings, Sharks. I am Raksha Kothari.
GO DESi is a food brand.
We offer lollipops of unique flavours
like tamarind and raw mango.
We standardise unique flavours like spicy lemon and tangy mango,
We started with DESi POPz.
My work spanned the gamut of FMCG
from sourcing, back-end, and sales to sales and distribution.
Eventually, I worked as a brand manager with Sunfeast.
Hmm.
After which, I headed marketing in a start-up for a year,
and then, GO DESi happened.
- It was into board games. - Yes.
I'm a BTech chemical engineer from RV College, Bengaluru.
Lovely college.
I started my career with KPMG where I worked as an analyst.
Then I took a slight detour in my career
and worked with many NGOs.
I really loved seeing an impact at the ground level.
So, I continued in that direction.
Then Vinay started GO DESi.
It aligned with my vision
to bring an impact at the ground level.
So, I joined Vinay.
This has no relation to what you did so far.
I had gone hiking in the Western ghats.
When I completed the hike,
I ate a jackfruit bar at the tea stall below.
I found it delicious,
and I wondered why such products weren't available in Bengaluru.
He had about 30 kg of a variety of products.
We took them and set up the goods in a flea market.
We had booked a stall for three days
but we got sold out on the first day itself.
Then it struck me
that if regional products got the authenticity
and trust of a brand
along with distribution, the brand could become huge.
Great idea.
Both my kids are huge fans of the tamarind pops.
We always have tangy imli at home. Kaushik loves it too.
Thank you.
- Yes, sure. - Absolutely.
It'll take us back to our childhood.
So, we all take one.
- One? - The orange one is tamarind.
[upbeat music plays]
This is Dry-Fruit Barfi and this is Meetha Paan.
Don't launch dry fruits. It's my category!
- [laughs] - This is barfi.
It contains no refined sugar.
It's blood red. Is it artificial colour?
No, the dates lend it colour.
- Deep red! - Yes.
And the price point at Rs. 5 is also amazing.
No wonder you're able to sell at so many general trade stores
because it's highly affordable.
Good. It's really good.
- Thank you. - Thank you...
Very good.
Vinay, the SKU costs Rs. 5.
Keeping logistics in mind, you must be selling
multipacks or boxes to e-commerce platforms.
Yes, a pack of 50 goes to them.
5 boxes of Rs. 5 a unit. That's Rs. 250 a box.
- Correct. - There's just a knot.
Raksha, how does it last 12 months on a mere knot?
There's a lot of air going and coming out.
The product isn't sealed.
That's a good question.
I'll answer this in two parts.
The product's longevity comes solely from its ingredients.
The tamarind and the other ingredients like chilli and salt
act as natural preservatives.
They give it a shelf-life of 12 months.
It can be easily stored free of any infestation or microbial growth.
Secondly, to solve this problem, we also launched strings,
which you see here, and come in a lollipop format.
- This one. - Yes.
As you can see, the lollipop is completely sealed.
This has increased our distribution.
This is perfect. I think you ought to focus more on this.
This is a good solution.
Give me a break up of your distributor and retailer margins.
We give the retailers a commission of 20%
Who's your competitor?
There is no organised player, just regional brands.
Why not?
I believe that the back end
You do the manufacturing yourself, right?
- Yes. - Yes, we do.
Amazing.
Sira is 130 km from Bengaluru.
We have two units in a hamlet by the name Manangi there
Their pH and acidic levels are controlled and then sent to us.
We've standardised it to such a level.
[pleasant music plays]
We employ almost 250 women in these two units
I didn't see an important aspect in your video.
- Tamarind is wrapped around this stick. - Yes.
Your video doesn't show whether the process is automated or manual.
It's manual for now.
How do you ensure hygiene is maintained?
[tense music plays]
The women who handle the process wear gloves.
The non-contact part,
which is packaging, is done without gloves.
This is another reason.
- Automating this is extremely difficult. - Correct.
Hence, you don't see many brands in this category.
- Scaling is not possible without automation. - Right.
Another important thing here is that
you provide employment to so many women
who typically belong to the village.
That's a commendable thing you're doing.
[pleasant music plays]
Tell us about your sales.
how did you come up with a valuation of Rs. 180 crores?
Yes, that's... That brought no nostalgia.
[Sharks laugh]
Was there a prior round?
- Yes. - Tell us about it.
We've had angel rounds in the past.
Money is a part of the entire piece
but the idea is to create a much larger company.
Something that inspires companies like us
to grow unique regional products into a big brand.
- How much money did you raise in the last round? - 31.
Our EBITDA burn is at -15%.
So, -15% on Rs. 28 crores.
How much is that?
- It's Rs. 3 to 4 crores annually. - Yes.
There's no working capital.
That's the new unit we're establishing.
What's your total CapEx?
You could rather set up multiple micro units pan-India.
That'll help you get closer to the market.
Your product costs Rs. 5 and the cost of transportation can be saved.
Very valid point.
The unit we're setting up right now is for the South.
As we expand into West, North and East,
we'll set up units there as well.
If there's a need to set up units at specific locations,
definitely that idea makes sense.
[music plays]
Raksha and Vinay, you hold just 38% equity.
That's too low!
You have no stake left.
If you need to dilute it in future, eventually there'll be nothing left.
I've never seen such a low stake for a product-based company.
I feel there's something not right there.
Secondly, I'd have been comfortable investing
had the valuation been Rs. 30 to 50 crores.
But I don't want to negotiate so much
I liked the product.
Scalability is a concern and more so, profitability.
As Aman was saying, the cap table looks...
Currently, you hold less than 50% equity.
That doesn't develop confidence in an incoming investor.
If you can negotiate the valuation, I'll be very keen to invest.
But to invest at an ask of Rs. 180 crores,
I think it's very difficult.
Look, I've told you I'm already a consumer of your products.
It's unique in my opinion.
And the branding you've done is also really good.
They all repeated the same two points.
I have been through the same journey.
So, I don't find it to be a big problem.
[tense music plays]
If you can make this a big brand going forward from here,
then in the future rounds,
you can ensure that you hold 25% equity until the IPO.
I see this as a big opportunity. The market size is big.
I think a valuation of Rs 180 crores is out of the question.
Going by the multiples such companies have to offer nowadays,
on the basis of that, the best I can offer is Rs. 60 crores valuation.
Which will be anti-dilution for you,
but you can offer it as an advisory
and take it up with your investors.
That I'll be a value-add Shark.
I would offer you Rs. 60 lakhs for 1%.
Which is Rs. 60 crores valuation.
Rs. 30 lakhs debt at 12% interest.
There is sales growth,
but the valuation is too rich for me.
I know you've pegged it at Rs. 120 crores.
So, maybe your investors may not agree.
For that reason, I'm out.
Thank you.
By the way, if you want the kings of FMCG,
then this could become a two-Shark deal.
It will be the same offer that I made to you.
You'll have an alternative where Vikas and I come together.
We will give you Rs. 60 lakhs for 1% equity together
FMCG I think...
Which is the biggest marketplace where you sell?
Amazon stands at Rs. 20 lakhs,
and the remaining quick commerce is approximately Rs. 35 lakhs.
What's Amazon's trajectory for the last quarter?
We're category leaders on Amazon as of now.
We have a 4 to 5% month-on-month growth.
You mean, it's flat.
There isn't much growth on Amazon.
So, there's a limit to expanding online.
You've reached that threshold.
Let me be clear with you.
If we look at this as a 500-crore brand in the long term,
online sales won't be greater than 10%.
Correct, absolutely.
So, your focus is on offline.
Look, I like you and I found your product rather tasty.
I think now that you've received funding,
you're trying to compete in the race
to increase your GMV as quickly as possible.
My advice would be not to do that.
Focus on making your fundamental business profitable.
[intense music plays]
I simply fail to comprehend your valuation.
If you accept their offer, I'd like to come on board too.
As that's the right value.
Ask us first!
That's what I'm doing. If you guys...
I'll join in at the same valuation because it's justified
and has scope to make profits.
[intense music plays]
The combined offer from the three of us
- Yes, please. - Only two minutes.
Only two minutes.
[intense music plays]
- It doesn't seem like it's your first time here! - Exactly!
- We taught him the ropes. - Very good.
It's because he's sitting on Anupam's chair.
Yes! Anupam's chair!
I've taken Mr. Mittal's stead, so I have to honour the position.
It empowers a person.
[sombre music plays]
You barely took a minute.
We got done soon.
Tell us then.
Thank you so much, Vineeta, Vikas and Amit for the offer.
But as you mentioned, we have existing investors.
So going below the previous round's valuation would be impossible.
[intense music plays]
So, we'll... And I think there won't be so much room for negotiation.
There isn't.
We will convince the board. It's not a big deal.
If you think it'll add a lot of value, then we should go ahead.
- No, they don't think so. - [Sharks laugh]
[intense music plays]
Okay. What's your final answer?
I think, no. We'll not be able to...
Okay, thank you.
- Thank you so much. - All the best.
GO DESi to the world!
- Yes. - GO DESi!
Now that you're on Shark Tank, sales are bound to increase.
Your online transactions will also increase
which by the way, you already have sorted out
because you use Cashfree Payments.
- Yes. - Which also happens to be our online payments partner.
India's high-growth start-ups like yours use Cashfree Payments
for smooth transactions.
Just wanted to understand from you
how your experience with them has been.
Our experience has been good, they're a trusted partner.
- Hmm. - They're quite efficient too.
So, our cash and online payment transactions never drop.
The experience has been great.
- Congratulations. - Thank you.
So, let's get started
and enable the Rs. 50 lakhs credits in your account. Hang on.
Cashfree Payments gives you out-of-the-world payment solutions
for out-of-the-world ideas.
There you go. Congratulations!
- Free credits for transactions worth Rs. 50 lakhs... - Wow!
- Have been enabled. - Thanks.
- Many congratulations. - Thank you.
Grow your ideas into a business with Cashfree Payments.
All the best. Take care.
Thank you.
'My belief has always been'
'that you always start small to make something big.'
'This is Happilo's story.'
I am Vikas D. Nahar, the founder and CEO of Happilo.
[upbeat music plays]
'I was born in a small town called Sakleshpur.'
I grew up watching my father working hard in the fields.
[music plays]
'He used his background in farming to grow it into a business.'
'My father was an inspiration to me.'
[inspirational music plays]
'We wanted to eat dry fruits at home.'
'My maternal grandmother would ask us to soak dry fruits and eat.'
But availability and convenience were a problem
and we wanted to solve that.
'In 2016, when I started, '
'we started with touching 100 to 200 customers per month.'
And we reach 10 lakh households every month by way of our products.
[upbeat music plays]
'We're a leading dry fruit brand in India today.'
'We want India to eat healthy and be healthy.'
'Food gives you happiness.'
And Happilo stands for happiness and love.
[upbeat music plays]
The best part about being an entrepreneur
is that there is nobody to tell you what to do.
And the worst part about being an entrepreneur
is that there is nobody to tell you what to do.
I myself got rejected 20 times before I raised my first funding.
[buoyant music playing]
I never gave up.
Hard work, persistence and that never-give-up attitude...
You must keep going.
[buoyant song playing]
You'll stumble and fall, but you must get back up.
[buoyant song playing]
'I bring business expertise to Shark Tank'
'as also the expertise of brand building.'
I understand food really well.
'It'll be fun to share the stage with the others.'
I'm here as a guest Shark today.
I might be in for the whole season the next time!
[theme music plays]
[theme music fades]
"This is old-fashioned! I just can't relate to it."
"This is very slow and ineffective."
"If the quality is good, then it surely must be expensive."
"Neither are there scientific results"
"nor have they shared a proper ingredient list."
Well, these are the responses to our market survey.
We asked over 800 millennials and zillennials
in the age group of 18 to 35 years
why they don't integrate ayurveda into their day-to-day lifestyle.
Sharks, the ayurvedic market in India is divided into two parts.
On the one hand is the many mass-market brands
that offer no guarantee of quality or results.
And on the other hand is premium and luxury brands
that the common man can't afford for regular usage.
No wonder ayurveda has failed to go mainstream.
Ayurveda will not grow
until people between 18 to 35 years do not buy it.
It has to be made young, sexy and sassy.
To solve these problems
and to connect the youth with ayurveda,
we gave it a big makeover.
[music plays]
Sharks, I am Param Bhargava.
T.A.C. is a new-age ayurveda brand
We wish to make India's first ayurveda brand
that can compete neck-to-neck with global brands.
For this, our ask is
back to ayurveda with T.A.C.
Let me start by saying I know them and...
- I also know them. - Same here.
We often meet at conferences.
- They're such big hustlers. - Okay.
- And so persistent. - Yes.
Just last year, Param told me to invest in his business.
He requested me to invest.
I said I don't invest unless it's Shark Tank.
- He asked if he should come here. - Here they are!
Yes, they did. [laughs]
Param and Shreedha, welcome to Shark Tank.
I sell allopathy,
but I'm a staunch believer in ayurveda.
If I have a little bit of a sore throat,
I'll first take jeshtimadh and turmeric milk.
Same thing for my hair.
So, I think this is going to be the new trend.
Tell me something. I have a 17-year-old.
Your target age group is 18 and onwards.
Youngsters don't believe in all this at all.
So, what is your strategy to convert the youth?
The first is our brand positioning.
We steer clear of a grandfatherly image of ayurveda.
The second is our social media.
We speak to people on social media in a language
that they understand.
The third is our influencer marketing strategy.
We communicate our message through relatable figures
that this target group listens to.
The fourth is activations.
We visit campuses
and build communities
where people between the ages 18 to 22
are present in large numbers.
To build a connect with the young generation,
we christened The Ayurveda Co. To T.A.C.
Generally, the world over,
sounds ending in the letter C stay on with you. Mac!
- Show us your product samples too. - Sure.
[music plays]
Which one...
This is interesting. It's a mask, right?
- Sheet mask. - Right.
- Is it unisex? - Yes, it is.
[music plays]
You're the first in the market.
I've never come across an ayurveda sheet mask.
- Yes. - There's no such concept.
- It's a Korean beauty concept. - Yes, exactly.
- So, I have never seen an ayurveda sheet mask. - Yes.
You seem to have put effort even into the packaging
to resemble modern FMCG products.
Generally, in ayurveda companies,
the packaging is a bit traditional.
How are each of your roles defined?
Because we're husband and wife too,
we had many differences at the start.
"You handle this. This is wrong. It's your fault or it's mine."
But in the last 1.5 years, our roles have become clearly defined.
I handle the supply chain, marketing, digital marketing,
which includes social media, influencer marketing
and performance marketing.
Param oversees the rest.
What's left to oversee?
[hysterical laughter]
I also handle new product development and packaging.
Investor handling and networking.
Primarily, other than performance marketing,
online e-commerce market
and all alternate channels of business.
You said you sell in marketplaces, in 2500 stores
and you own EBOs and a website.
Tell us about your sales
and revenue split across all these channels.
We had raised it through the venture capital arm of Azim Premji's Wipro.
It was their first investment in India in a seed round.
Our burn is not at the CM3 level.
But our operational cost has increased
because of the sales channels.
Could you tell us about the round that is going to happen?
- Also tell us the valuation of the previous rounds. - Yes...
How much equity is diluted and what it is now?
And your shareholding too.
We're creating it in this round.
This is pre-cap table from the last round.
- How much did you raise? - We raised...
The overall ask of Rs. 10 crores
has come in from our existing investors.
There's a celebrity among new investors.
She's also the brand ambassador of our baby care.
Kajal Aggarwal has invested as well.
Has the term sheet of the new round come to you yet
and what's the valuation?
This is a capped round.
- Rs. 300 crores floor and Rs. 500 crores... - Convertible.
- Oh! - From 300 to 500 crores.
I've made my decision
after hearing your valuation figures.
[tense music plays]
Amit, before you share your decision,
let me tell you the major difference.
Ayurveda has always played on the back foot.
It has never made claims of guaranteed results in x days
unlike modern science and derma.
We are into claim-based ayurveda.
We claim that our kumkumadi oil
will rid you of your blemishes and pigmentation within 21 days.
Wait a minute. Let me stop you right here.
I am a strong believer in ayurveda. So, I want to correct you.
[music plays]
It's a false claim that externally,
you'll see changes within 7 or 15 days.
- True. - Internally also is required.
You will need to change your lifestyle, right?
- Right. - Suppose a teenager
consumes only fried food and desserts all day.
- Okay. - Then uses your application.
Then whether you've claimed 7 days or 15,
no matter what he does, his pimples won't go.
We don't just do product pushing and selling.
- We talk about a lifestyle change. - You can't make such claims.
You're asking for Rs. 300 to 500 crores.
You're loss-making.
There's no proof that your product is amazing and has gone viral.
Your CAC is continuously falling.
I am not convinced I should invest in this
as an investor even at that value.
I'm out for today. The rest of the Sharks may decide.
For a valuation of Rs. 300 crores,
I would invest in a company
only if the product has a solid differentiator
or something really revolutionary.
But I am not convinced even now.
And for that reason, I am out.
Raising Rs. 100 crores isn't a joke.
[intense music plays]
What will you do with it?
This fund raise of Rs. 100 crores
will help us cover a major investment in our business plan
of our in-house R&D set-up.
Param and Shreedha, this market,
owing to the number of brands, has become very cluttered.
Your hero product is kumkumadi,
while Kama was the one who made this ingredient a hero.
Similarly, Mamaearth did the same with onion.
WOW did the same with apple cider vinegar.
So that one hero product that you can own,
until you don't crack it,
you'll never be able to bring the burn down.
You have a hundred SKUs,
but you don't have that one product which has made it really big.
You need to crack that first.
It's really difficult to hit Rs. 300 crores next year.
So, at this moment, I won't be able to join you.
But I'm happy to help you with offline in any way possible
in terms of execution.
Best of luck.
I think either you'll rule it or you'll fail miserably.
[tense music plays]
I'm in for the journey
but I cannot give you that valuation at all.
There's no way I can invest Rs. 300 to 500 crores.
I don't want to do it, okay?
I'm in just to support you guys.
And as you know, I can support you in many ways.
So, I'll give you Rs. 50 lakhs
at 1%.
Which brings your valuation to Rs. 50 crores.
We have Rs. 2.5 to 3 crores in the bank currently.
Out of Rs. 12 crores?
Overall, even from the funds we raised post that.
Okay. We spoke about stores.
Are they full-fledged stores or shops?
- They're kiosks. - Kiosks.
They're kiosks and are on trial.
If our kiosk performs exceptionally well at a location,
we'll convert it into a store.
Otherwise, to wrap it up also, we will equally...
Have you committed to running them for 3 or 5 years for instance?
- Is it a long term rental agreement or short term? - No.
- Short term. - Short term. 6 months lock in.
- 6 months lock in. - Yes.
You can exit anytime depending on how it fares.
Hence, this strategy.
Let's talk about the marketplace.
Give me the split between your online and offline business.
Also, tell me the contributions of the marketplace and website.
Out of 2.40 crores,
around Rs. 1.90 crores comes from marketplaces
and Rs. 50 lakhs comes from the website.
I'd like to make you an offer.
Rs. 75 lakhs for 1% equity
I told you that my reason for coming on board
was I wanted to support you
and see if we could grow together.
Aman, but we're already closing the year at Rs. 45 crores.
Let me know if I should wait.
I'll step out, you can discuss one-on-one.
- No. - No...
No, it's not like that.
He gave us the offer first, Vikas. We were just requesting you
and we were wondering if you could make an offer jointly.
My last offer...
I don't want to fight.
Can I add something?
Because you both have strengths that could be
beneficial for our business.
If we look at 0.5%,
So, his counter is 50 lakhs for 0.5% equity
for the two of you. Will you take it?
Both of you come together.
Aman, the last one closed at 81 crores. We can do this together.
Oh!
[tense music]
This is called loaded silence.
It's for you that I came here, truly.
Oh!
I know. But this is too small.
I can go up to your last valuation.
The valuation will be 81 crores. Together at 0.5% each.
If Aman agrees to join in.
He's a new shark. He's said it 3-4 times now. Let's do this then.
Thank you so much, old shark.
Our final offer, Vikas and I will come together,
81 lakhs for 1% equity.
All the best.
Shreedha and Param, congratulations on the beautiful two-shark deal.
Congratulations.
Download now!
[energetic music]
Today, when we talk about startups and entrepreneurs,
we talk about big cities like
Mumbai, Delhi, and Bengaluru.
Take a look at our Ziro Valley.
[grand music]
It's at a distance of 3000 km from Mumbai.
Wow.
If we want to come here by flight,
it'll still take us 8 hours to get here.
Ziro Valley is known for its Ziro Festival of Music.
But we have seen another business opportunity here.
Today, Shark Tank India has given us this platform
to present our product and our business
Kiwis, plums,
pears, wild apples.
In the adjoining areas, you can find oranges,
pineapples and guavas.
We've used these fruits to make wine
in order to uplift our farmers,
We have our own winery
And in these five years,
we've sold 3 lakh bottles
our Naara Aaba kiwi wine
is made from the country's first certified organic kiwi fruit.
[grand music]
Sharks, today our ask is
Welcome to Shark Tank. It's nice to meet you.
What's the population of Ziro Valley?
- Around... - 32,000.
32,000 people.
How did you get interested in making wine?
Aman, both of us have an engineering degree.
I've done B.Tech in agricultural engineering.
My husband has a B.Tech in electrical engineering.
We studied in the same college.
- He's your husband? - Yes.
Originally, this was my husband's idea
to own a winery.
He visited many wineries across India.
He was very insistent and persistent
about his dreams and his vision.
What does Naara Aaba mean?
- Very inspiring. - How sweet!
What's the alcohol content in this?
Our gross margin is 50%.
Our margin is 18-19%.
- And then... - 18-19%? Is that the gross margin?
tell us the cost breakdown. How much do you save at the end?
In this 1200,
our selling price is 800.
Loan for setting up the plant?
We upgraded the plant 2 times.
How much did that cost?
The total amount for that was 6.2 crores.
- Is it her? - He.
[laughing]
I mean...
What is this?
- You mean it's her salary in a way. - Yes.
Not a fixed salary, it's income as per the sales.
- Very good. - Yes, it's that way.
Do you cut her money if she drinks any bottle?
[laughs]
You must have shipping and logistics costs also.
Yes, that is a high cost.
Other miscellaneous things like standees...
- Okay, point-of-scale material. - Pamphlets, danglers.
- You set it up in the shops you sell. - In the wine shops...
- It does not have sales tax? - No.
- Not in our state. - We have the exemption.
Only in Arunachal Pradesh.
But it will reduce the margin a little bit because
- other states will have the tax. - Yes, a little.
Wine has become a premium, snobbish category.
What you are doing is a category creation.
It's a different market and competing there,
that too with kiwi, plum, apple
is a very uphill task.
And you will need a lot of money for marketing.
[dramatic music]
And I think because of that, the scaling
not just in India but also globally,
will be very difficult for you.
I don't think it has the potential which is attractive to me.
And for that reason, I'm out.
[dramatic music]
Tell me the sales for the last 3 years.
Last year, the sales were Rs. 4.94 crores.
I find that a bit steep.
Because the market is still small.
So I would like to offer Rs. 50 lakhs for 5% of your company.
India is not recognised for any such alcohol.
I hope what you are starting...
You will have to create an ecosystem play.
You will have to get some more people with you.
So that this,
- kiwi wine becomes a category by itself. - Yes.
- Yes. - From Arunachal Pradesh, so
- I would say it is a long journey ahead. - Yes.
You both are pleasing personalities so it felt good.
And you'll are making a profitable business.
We will have to work very hard with you.
I don't want to work so hard now.
I am a lazy investor, for now.
- Yes. - But for that, I'm out.
I wish you all the best. You already have one offer.
And Vineeta and Amit will speak next.
This is a new category.
Nobody knows if it will be a 1000 crore category or
will stop at 50 crores.
So it's like a gamble.
But I would like to give you an offer with Vikas.
Both will come together.
And your ask was Rs. 75 lakhs,
we will take equity because you have enough debt.
But we will take 10% of the business, 5% each.
With which we have skin in the game
so we can help you with things like
branding, social media, distribution etc.
[dramatic music]
I felt very good meeting you.
Tell me which state has the maximum wine consumption in India.
- Maharashtra. - Why are you not reaching there?
Your company has been functioning for 5-6 years.
There are a lot of problems with state licences.
You don't get these licences easily in India.
If they hadn't given this offer, I would have made an offer to you.
I like you both a lot.
But you have an offer already, so I'm out.
You have one offer of Rs. 75 lakhs for 10%.
Now you both can think about what you feel like.
We have thought of offering 5%
for Rs. 75 lakhs and you both can share 2.5% each.
That's a counter offer, now what do you guys think?
[dramatic music]
Last and final.
Rs. 75 lakhs for 7.5%.
I'll give another offer. Rs. 50 lakhs for 5%.
- Okay. - You give us the remaining 25 lakhs as a loan at 10%.
Now you finally smiled.
- Today you drink all bottles. - Okay.
Amazing.
- Fantastic meeting you. Congratulations. - Thank you.
Thank you.
Superb, let's make this big. Awesome.
- Let's meet next at Ziro valley. - Sure.
Sure.
Congratulations once again on the deal.
Tell me, like you said
people know Ziro valley for music.
It's known for its scenic views.
So with you coming here today and landing this deal,
will it also be seen as an entrepreneurship hub?
Many positive changes are going to come at Ziro valley.
I can say it with confidence
that we are not alone.
There are many such budding entrepreneurs in Ziro
so the future is going to be very different and it's going to
be very bright in the coming days.
I'm sure the future is going to be very different because
you are bringing a futuristic change.
You are the torchbearers of change.
And ACKO welcomes this change.
We want you to write a small message
on our ACKO Change Makers Wall.
Business should be such that changes a viewpoint.
Like ACKO with its excellent offering changed
the way more than 8 crore customers buy insurance.
Wish you the very best. Do very well and take care.
[theme music]
Sharks, kids might be small in stature.
But their clothes are more expensive than ours.
Sharks, every parent wants their children
to wear cute and stylish dresses.
But the problem is that it doesn't fit them after 3-4 months.
Sharks, this problem is close to my heart.
When I used to go to the market to shop for my daughter,
all the trendy and fashionable dresses
were very expensive.
That's when I realised that it's not my problem alone.
It's the problem of many middle-class mothers like me.
To solve this problem,
we launched StyloBug, kids wear brand.
Hi, Sharks. I'm Nidhi Gautam.
I'm Kamal Tripathi.
From Delhi, we're the co-founders of StyloBug.
[music playing]
To enable them to wear stylish clothes,
and especially to give parents a guilt-free shopping experience.
So, our ask is
With StyloBug.
Thank you, Sharks.
Are they your kids?
Two of them are my creation.
We would like to know more about you before the business.
Why did you start this? Tell us about your background.
I graduated from IIT-Delhi in 2004.
After that, I worked for 10-15 years in the technology industry.
Out of that, I worked for 10 years in the e-commerce sector.
I worked with some marquee companies like
Snapdeal, Zomato, and Amazon.
If you've ever used Snapdeal's mobile app,
I pioneered it with my team.
- Are you a software developer? - Yes.
I've done MBA and worked in the corporate for 4 years
in the B2B sales domain.
[music playing]
When you started this... He's very naughty.
[laughs]
I will drop them off backstage.
Come on, dear!
[music playing]
Come on! Go!
No experience at all.
All of a sudden, I told him that I want to be a garment manufacturer.
So, he asked me how much funds do I need. I took 15,000.
[laughs]
What did you do next?
The boutique that tailored clothes for me
in Atta Market, Noida.
I went to all the boutiques of Atta Market.
I asked all of them for a tailor.
Within two days, I got a call confirming an available tailor.
The next day, we went and bought machines.
I started with a setup in my 2BHK house.
- Wow! - That's how I started my journey.
When did you join her?
I joined her 1.5 years back in June 2021.
Why did you decide to join her?
While working, I was her investor.
I used to listen to all her problems on the weekends,
to grow beyond this, I have to join her full-time.
Otherwise, it will get stagnant at this level.
Because Nidhi was taking care of production, designing, and sourcing.
- So, Nidhi is the CEO. - Yes.
Yeah.
[laughs]
Bigger accomplishments require greater risks.
- Oh! - Very well said!
But since the last year, I have a design team.
- It's a team of 3-4 people. - Where do you manufacture?
You have such a wide range.
2-16 years is a wide range.
Boys and girls, even among girls,
there are casual and bling clothes.
Party and ethnic wear.
So, when there are so many options
to standardise and manufacture as we have to change the batches.
How do you plan that?
we produce it in larger quantities.
If there's no response within 1-2 months, we phase out.
We have a proprietary ERP solution.
Your pitch made me feel that
your inventory turn will be around 30 days which is great.
Yeah.
All the big houses plan 6 months in advance and produce.
So, smaller startups get innovative with the inventory turns.
So, the innovation seems to be missing as of now.
I'll tell you, sir.
The 3 months' inventory is of our bestseller category.
The least popular ones are
cleared out within 15-20 days.
But to remake the bestseller time and again.
We receive bulk orders for it.
So, we keep it ready for 3 months.
So that we can focus on the other styles yet to be launched.
Nidhi and Kamal, what are your sales?
Post Diwali
until January, it's a lean season.
We don't make winter wear until this year.
Next year, we will launch that too.
But ethnic wear must peak.
- Exactly. It's the wedding season. - Yes.
The revenue is from ethnic wear only.
Nidhi, show us the clothes too.
Yes, sure.
[music playing]
- Good colour. Vibrant colour. - It's nice.
I love the frilled frock.
- What's the price? - It's for 815 rupees.
Is this fair pricing or what?
- It's less. - Oh, others are more expensive?
Yes.
- Is 800 MRP or selling price? - It's the selling price.
What will be the MRP?
You can add 50% to it.
- Around 1600. - Yes.
Tell me how it's made and what's your gross profit.
Explain the unit economics.
Yes, 2-2.5 crores.
That's good. What are you doing here?
[laughs]
We don't want to stop there. We want to grow it.
What's your ambition?
There are brands like Gini & Jony earn a revenue of 4000 crores.
Lilliput makes around 700-800 crores.
If you look at the market,
it's worth 1.5 lakh crores. Only 30% of it is organised.
[music playing]
The remaining is unorganised.
We want to become one of the big brands.
Why are they doing better?
They only deal in casual clothes.
Because it sells round the year.
They're doing a better business, at a larger scale.
Why don't you wish to do it?
They are focused.
If you want to do that,
then you will have to play as per their rules.
You will have to make different dresses of the same design
and after a point, you won't be able to grow.
You made 14 crores last year. You will make the same this year.
You're not growing too.
We were not spending consistently on marketing.
We spent intermittently, that was a mistake.
The second mistake is that our team is too lean.
To scale up, it's not enough.
What is your current marketing cost?
Overall, 4-5% of net sales.
Are you managing the digital marketing?
On the digital marketing front, the website and other channels
have been launched 3-4 months ago.
We realised our mistake and knew that we have to diversify.
The D2C side of the business
is just 4-5 months old.
How much do you earn from D2C on your website?
Just 5% as of now.
I found your design language a bit weak.
[music playing]
I don't think they're so stylish.
Secondly, I think you need to hustle a lot.
You haven't proven yourself in the D2C segment too.
You just want someone to come in and sort it for you.
No, you will have to do it.
You have to prove yourself for now.
I'm out.
I agree with Aman.
I didn't find anything unique in your designs.
To say that there's something different.
This sector, no matter how many marketplaces you go to,
online or offline, it's commoditized.
[music playing]
So, I don't think that beyond a point, without a differentiator
you can only make revenue to a certain extent.
I don't think it's investible. So, I'm out.
[music playing]
The biggest reason that your product sells, is the price point.
If something listed for 1600 is available for 800
on a 50% discount,
then people find it to be cheaper
and plan to make the child use it for 6 months.
The consumers are buying it with that logic.
When it comes to kids,
building a big brand on the basis of a cheaper price point
seems to be difficult in the longer run.
So, I'm out.
But, of course, earning a profit of 2.5 crores
being bootstrapped, and starting off with 15,000 rupees
is praiseworthy.
So, good job on that, especially, Nidhi.
Thank you.
You're saying that you earned 50 lakhs in January.
What were your sales last January?
We made similar numbers in January last year.
- So, it was flat. - It's a lean season.
But it was flat. There's no growth in the lean season.
Look, Nidhi and Kamal, I have daughters and I shop too.
Your designs are not so flamboyant or vibrant.
Secondly, you're talking about a building the brand, StyloBug.
Your clothes don't seem to be so brand-worthy.
There's no mark. So, overall
there's a disparity between your plan and your actions.
I believe that if I invest in this today, I won't earn.
For that reason, I'm out.
How many Instagram followers do you have?
More than 3000.
Why so less? Didn't you focus on that?
We have started focusing since we launched our website.
Our 3000 followers
are an effort of 2-3 months.
I think you're a fighter for taking this risk in life.
Nidhi is impressive!
To build a 14-crore business from home,
you're an inspiration to India.
I will make you an offer based on my skill.
If I join you, I will work with you on digital marketing.
I agree that the valuation is less but I have to invest my time.
To make this happen.
Amit, I would like to counter it.
If I take 5%, let's assume it.
And I don't spend time, and just invest money,
it will be flat, as it is now.
Your profit is around 2-2.5 crores.
At 5%, it will take you 8-10 years to return my money.
So, I made a fair offer. It's non-negotiable.
I will stick to it.
You follow your gut feeling.
[music playing]
Now, it will become Style Dekho.
[laughs]
- Congratulations! - Thank you, Amit.
- Thank you so much. - It's a pleasure.
[music playing]
- All the best! - Thank you.
- Thank you, Sharks. - Thank you. Bye!
Nidhi and Kamal, welcome to PokerBaazi zone.
Thank you.
- Are you feeling good? - Yes.
You used your brain well.
You demonstrated your business strategy and entrepreneurial skills.
You secured a deal. But can you use these skills
and outsmart me in this game?
- Definitely. - We'll surely try.
It's a simple game. There are 3 cards here.
There's a statement about Shark Tank on every card.
Right.
Two of them are true and one is false.
So, I will read the statements.
You have to listen and figure out the incorrect one.
You can talk to each other or question me.
Alright, ladies and gentlemen, the first card says,
Amit Jain belongs to the Pink City in Rajasthan.
The second statement is that Namita is the founder of Emcure Pharma.
The third statement is that Vineeta
won the Best Female All-Rounder award in 2007 at IIM-Ahmedabad.
These are the three statements. Your time starts now.
Amit Jain started his setup in Jaipur mostly.
But, I'm not sure whether he belongs to Jaipur.
I think the first statement...
She's one of the managing directors.
Yes, she's currently the managing director.
Emcure.
- Okay. - I think this is wrong.
She's the founder of Emcure Pharma.
She's not the founder.
- Her father was the founder. - Final call, guys.
I think the second one is false.
It's the right answer.
This is a lie. You caught it!
- Congratulations! - Thank you.
Thank you.
There are special opportunities waiting for you at PokerBaazi.
Demonstrate your skills and win a prize.
Because you hold the cards in poker. Download now.
Vineeta, on Shark Xperience today,
Ziaser from Faridabad has a question for you.
You and your husband are a power couple.
Both of you are entrepreneurs. But, who's the boss?