[music playing]
[theme music playing]
[music fading]
Dear, Sharks.
From birth to death,
there's one relationship
that sticks by you in joy and sorrow.
It is that of siblings.
We brothers are a living example of this relationship.
Together, we both,
without any food background,
without any VCs and angels,
without any funding, and in a span of 17 months,
opened not one, two, five,
ten, fifty, hundred,
but 150 fast food outlets...
and we are the Co-Founders of ZORKO.
[light-hearted music playing]
Listening to that has made me hungry!
Yes, me too.
[laughs]
Sharks, ZORKO's journey
began in Vesu from just one outlet.
And within no time,
but in the hotel, restaurant and catering industry as well.
And we need your support to achieve that.
Not just their support, brother, we need their money too!
[laughs]
The energy he brought...
Amazing! Mind-blowing!
Whoa! Injections!
- This is a cheese injector. - Wow.
What an invention!
[light-hearted music playing]
What is this?
They're our sauces which we make ourselves.
- The mojito is solid! - Thank you, sir.
- Delicious. - Bestseller.
The sauce is good too.
The burger is yummy.
- Thank you. - The patty inside is yum.
You proved that vegetarian food is yum.
- 100%. - The fries are tasty.
Thank you, sir.
How did you start this business?
I'm a SEBI-registered research analyst.
I used to visit SMEs and small companies
and perform a business analysis.
I even wanted to invest in OYO.
- You wanted to invest in OYO! - Yes.
He...
The call centre staff did not understand what I was trying to say.
Yes, and they were right to think that.
I kept calling but didn't get any revert.
You had already reached 10 billion dollars, so then I...
[Sharks laugh]
What made you think that OYO would become so successful?
I'd normally follow a practice.
If I liked a particular service that I had used,
I'd either mail or call them.
- I have that email with me. - Show us.
- I have a screenshot. - Show us the email.
Sure.
- Which year was this? - 2019.
How much money did you have back in 2019?
Sir, I had a mere Rs. 5 to 6 crores.
- Rs. 5 to 6 crores! - Around 6 crores!
Yes.
Where did you get that money?
Sir, we used to invest.
I started when I was in college.
- Stock market? - Yes.
I started on my own.
I even got a friend to invest Rs. 10 lakhs.
Which year did you start?
- In 2016, sir. - 2016.
- Yes, sir. - Tell us which other companies.
- We will invest in them. - Sir, ZORKO!
cheese, bread and others.
We make something and have it, and we eat to our heart's content.
If we go out with friends, say we're five of us,
we end up getting a bill of Rs. 2,000 to 2,500.
That hit us instantly and we knew we had to do it.
And in the back of our minds,
we were sure we wanted to be entrepreneurs.
They were having issues because of Covid.
The location was ideal.
So, we figured... That very vision thing.
- Covid... - "That very vision thing!"
[hysterical laughter]
Covid is here for the short-term and this outlet will be reopened.
His furniture was already there. He had spent Rs. 20 lakhs on it.
- Did you get it for free? - No, for Rs. 4.5 lakhs.
What was the format and size of the store?
It was 550 square feet of carpet area.
Okay. Tell us how the store fared.
Okay. It was during Covid.
- We started during the second wave. - Okay.
How did you come up with the name ZORKO?
We were having a family discussion.
Mom said one thing. As you say in Marwari,
- "Whatever it is, it will be 'jor ko' (terrific)." - Yes.
- A terrific job. - Right.
To make 'jor ko' sound urban, we replaced the J with Z.
Quickly tell me about your sales.
Our last month's sales were Rs. 2.4 crores.
How many restaurants and franchises do you currently own?
Sir, they're all franchises.
What's your model?
People go to restaurants to eat fresh food.
- Serving them stale food... - Ma'am!
Take any of the big chains in the world,
they serve frozen food only.
- So, even your buns are frozen. - No.
Every city has good bakeries.
Give them a sample of your product
and tell them your consumption in units.
They will make fresh buns for you.
How many franchises did you say?
- 150. - In 17 months.
In 17 months!
What are your average sales per franchise?
Not the rent.
- So, are you saying the rent is covered in the 25%? - Yes.
- It's... - You're saying 25% of Rs. 3 lakhs...
- Rs. 75,000 covers the rent, manpower cost... - Yes.
- Running and electricity... - How's that possible?
- Not possible. - Manpower and rent in Rs. 75,000 is just not possible.
- You need at least 2 to 3 people. - What's the rent of one shop?
Sir, we don't allow anything that's over Rs. 25,000 to 30,000.
What about the salaries of the store staff?
Sir, we need just two people.
It's a chefless kitchen, and they draw Rs. 10,000 each.
What's the size of your shop?
- 400... - 500 square feet!
- 400 square feet... - Our outlet is 500 square feet.
The rest are 250 to 300 square feet.
- Okay, 250 to 300 square feet. - Yes.
- I'll tell you. - Any shop...
- I own a shop in High Street, Surat, of 200 square feet. - Yes.
Its rent is Rs. 70,000.
They're robbing you, ma'am.
[Anupam laughs]
Believe me.
The carpet rate in Surat is Rs. 100 per square foot for posh areas.
What will you give me if I get you a deal?
[Anupam laughs]
Our target segment is such places
where there are no McDonald's, Domino's or other restaurant chains.
We are the McDonald's and Domino's over there.
Show me a store in detail.
- This one's in Borivali. - This is our Borivali outlet.
- This is where... - Where in Borivali?
- Show more. - The exact location...
- Look it up on Google. - It's in front of...
- We'll let you know. - ZORKO Borivali.
- Show us more. - This is at Limbdi Highway.
- Limbdi Highway. - Show some more.
This is what the outlet looks like
with an investment of Rs. 8 to 9 lakhs.
Here's what we did. Our repeat orders...
As in, someone who came to us more than four times a month
is whom we'd approach.
- Wonderful. - Great.
The best part of being in India is
- the amazing word-of-mouth. - Yes.
So, we pitch to those who become our brand ambassadors.
How? If that person doesn't have Rs. 8 to 9 lakhs to invest,
he must have a friend who is interested in doing business.
Either he will invest
or he will pitch to someone on your behalf.
- You have solid fundamental thinking. - It's brilliant.
Take the town of Udalguri in Assam for instance.
- It has a population of 15,000 people... - Hear me out.
In these 17 months, how many franchises
have come to you and told you that you cheated them?
None, sir.
We have not cheated people of their money
- for them to tell us... - Don't you take a franchise fee?
- We do. - Okay.
We take Rs. 3.99 lakhs.
We are spending Rs. 2 lakhs on them.
[chuckles]
I mainly handle the operations.
Once a lead gets closed,
- I handle all the work that comes after it. - Hmm.
- Do you talk to the franchise? - No.
So, who meets them and talks to them?
Do neither of you do this?
No, sir. If someone comes to meet us,
that process does take place.
The explaining bit,
the brochures for instance,
or having a discussion, we have a team for that.
You're in a race
where you want to acquire franchises as quickly as possible.
That could cause problems for you as well.
It might seem like this is all happening too quickly,
but that's not true.
I mean, even 1,000 outlets aren't a big deal for us.
We recently launched a new brand called Portugal Pao.
It sells 'pao' items, sir.
We get such inquiries too.
"We want to open a 'chaat' franchise."
Our target is to have 7 to 8...
Just as there are companies with different brands,
Yes. They have increased a little, sir...
You possess good energy and you work based on SOPs.
As Aman said, "You're running in a race."
Earlier, we thought you were only opening stores.
Now, we found out that you're starting multiple brands too.
In my opinion, re-align your focus.
That one store you open
- ought to grow every month. Okay? - Yes, sir.
No store can sustain itself in Rs. 3 to 3.5 lakhs.
You need to try to get one store
to make Rs. 10 lakhs on an average.
If you do Rs. 10 lakhs,
then this business might become sustainable.
That is my view.
- I'm out. - Okay, sir.
- Okay? Best of luck. - Okay, Peyush.
- Your store or franchise... - Yes?
If it does Rs. 2 to 2.5 lakhs in the first year
and Rs. 3 to 3.5 lakhs in the second,
- then its capital return... - Yes.
Unless he does not pay GST,
Your business is very profitable,
but theirs is extremely tough.
So, I am out. Best of luck.
Okay.
Let's go back to the numbers.
You said your business' run rate is Rs. 30 crores.
So, not just a run rate of Rs. 30 crores,
- you will achieve Rs. 30 crores. - Yes.
- Tell us your margins.
- Its goal is... - To invest in OYO!
[both chuckle]
We're investing in food businesses
and besides that, we bought a factory
in which we manufacture sauces and patties.
- This new factory that you just bought... - Yes?
- What did it cost you? - Sir, Rs. 2 crores.
You bought the factory for Rs. 2 crores
out of your profits.
Yes.
You, as entrepreneurs,
belong to a different type of breed that disrupts.
When disruption occurs, it leaves you confused at times.
My view here is, either you'll rise or fall.
I have faith that you will grow my Rs. 10 lakhs to Rs. 5 crores.
- Yes, sir. - I wish to invest in you.
- Are you interested, Ritesh? - Yes, I am.
Ritesh and I will discuss this and get back to you.
Sure, sir.
Tell me something. Do you still trade?
- Into? - The stock market.
Sir, we have investments and we do keep an eye on the market.
- Tell me one more thing. - Okay.
Your profit is going to be Rs. 6 crores.
- After tax, it will be Rs. 4 to 4.5 crores
- for the year. - PAT, yes.
- You bought a factory for Rs. 2 crores. - Yes.
- You'll be opening 8 brands. - Yes.
- Along with that, you'll also open a subsidiary venture. - Yes.
You'll do trading along with it.
We will also get into HORECA, sir.
With a profit of Rs. 4 crores,
you plan on getting into venture investing
whereas your current sales are only Rs. 30 crores,
in which half the people are making losses...
- Along with it, you'll be launching 8 more brands. - Yes.
And just the two of you!
Right? In leadership.
- Yes. - Yes?
This just won't work, my friend.
- Okay? - That's why we need your support.
No...
If you needed our support,
you wouldn't have asked for Rs. 1.5 crores for 1% equity.
Okay?
So, something...
Yes, something is really fishy.
[tense music playing]
I wish you the best. I'm out.
Thank you, sir.
Look. I also believe...
In the olden days, movies had dialogues like,
"Trivial things are common in big cities."
Nowadays, small towns are churning out big companies.
- So, we have... - Nice one.
Had you mentioned it earlier, I'd have said this line.
It's the company. I'm influenced by Aman.
- We wish to... - [Sharks laugh]
We wish to give you a consolidated offer.
Our deal is slightly different.
We want to multiply Rs. 10 lakhs to Rs. 5 crores as you said.
- Done. - So, I'll invest Rs. 10 lakhs
and Ritesh will invest Rs. 10 lakhs.
Okay? We will offer you the rest in debt.
Here's our offer.
Rs. 20 lakhs equity for 1% in your company.
Gosh!
- My God! - I love the energy.
Amazing energy.
They won't take the deal.
[suspenseful music playing]
Ritesh and Aman.
Let's put the 1% equity and Rs. 20 crores valuation aside
for a minute.
We'll willingly offer you 1%,
but in return, we want 50 hours each from both of you.
Shadow them.
Yes. We'll willingly offer you 1%
for your mentorship and guidance...
Listen up. brother.
I know what you are saying but I can't commit to any hours.
If I want to, then I will or have you sit with my team.
You can sit with me and learn.
I just can't commit though.
- I don't wish to make a false commitment. - Okay.
If I fail to keep it, you will go around telling people
that I dishonoured my commitment.
- I will not do it. - All right.
If I want, I will do it, and if I don't want, I won't do it.
I just wish to support you.
You have good energy, but you need direction.
All this energy that you have
needs to be collated and channelised at one thing.
I'm telling you that you can do it. You have it in you.
Your option is simple.
Look. I am giving you Rs. 10 lakhs
We do hope you could give us a few hours, sir...
- No. I won't commit. - 50...
I will do it, but I won't commit.
- You need to show some faith... - If you have no faith...
I'm telling you, this is going downwards again.
Your graph was fluctuating but it has now hit the bottom.
Last chance. Yes or no?
Sir, give us Rs. 1.5 crores debt.
- You won't give us equity! - We will.
We will give you 1% equity.
We are ready to give you 1% as a mentorship equity,
When we commit to 1%...
We know you will fulfil a commitment if you make one.
If you don't make a commitment, it won't be any fun, sir.
[music playing]
- I have no problem committing hours to you. - Okay.
I will give you a commitment of 20 hours. Okay?
You'll just have to show faith in Aman.
So, tell us your final answer. Yes or no.
Yes or no?
- Ritesh committed 25 hours to you. - 25.
I will not commit to it
but I assure you that I will put in the hours.
Here's the deal.
We're giving you Rs. 1.5 crores in debt at 10% interest
- in return for 1% equity. - Advisory equity.
We'll give you 1% equity, but, sir...
Please commit to 25 hours, sir.
No, I won't.
[tense music playing]
Either tell us that the deal is confirmed or it is not.
- Let's get it over with. - The deal is final, but...
- Aman, you... - This isn't negotiable.
Look. This is starting to bother me
because I feel you do not have the ability to make decisions.
It was nice to meet you.
I believe that you are a little indecisive.
Yes, listen. I am out.
[cheque rips]
I don't get this guy.
- Sir came down to 25 from 50. - Forgive me, I'm out.
[tense music playing]
Make the deal with Ritesh.
- Do it with him. - Ritesh, let's make a deal. 25 hours...
I believe you are indecisive. For that reason, I am out.
Sorry. Thank you.
- All right, bye. - Okay, sir. Thank you so much.
- Good luck. - Thank you.
[music fades]
[birds chirping]
Cricket is a popular sport in Srinagar.
The local cricket scene is big here.
[music playing]
Bats are made of two kinds of willow.
English willow and Kashmir willow.
In Kashmir, you will find willow plantations in many areas.
I have played with both Kashmir and English willow bats.
Kashmir willow is heavier than English willow.
So we have solved this problem.
[music playing]
specifically Tramboo Sports' bats.
To clear a common misconception
that there's a difference between English and Kashmir willow bats.
Saad, Hamaad, welcome to Shark Tank.
- Thank you. - Thank you.
In Srinagar,
you started your business two years ago.
- Yes. - Tell us more about it.
Do you study? At such a young age,
how did you start at 16 or 17?
- I'm currently doing BBA. - Okay.
- And Saad... - I'm in the second year of BBA.
In Srinagar?
I'm studying in Bengaluru and he's studying in Kashmir.
I also play cricket.
So, I've used both English and Kashmir willow bats.
I realized that English willow has a higher price point.
Everybody can't afford it.
Our parents are doctors.
- Okay. - But we've got a family business
that deals with joinery mills, we do wood-related products.
We are one of the largest joinery mills in North India.
you procure that and fabricate it?
Firstly, we select a log of Kashmir willow.
it takes 12 to 18 months.
We complete this seasoning process within a week.
The traditional method is to stack the clefts in open air.
So, it takes about 18 months to get dry enough.
What is your process?
We have a steam-based seasoning plants
are moved to the manufacturing facility.
So, it boosts the quality of our bats even more.
[music playing]
But we're already making Kashmir willow bats.
There are around 300 bat manufacturing units in Kashmir.
Nobody has a seasoning plant that makes the bat lightweight.
This is our seasoning plant and...
- This is your grandfather's. - Yes.
It has a capital cost of more than Rs 20 crores.
Just to build this oven?
- Yes. - Land and everything.
Forget about the land for once.
- You can lease land. - Then it will cost around
8 to 9 crores.
Eventually, when you scale your business,
- you will have to build your ovens. - Yes, we can increase that.
Let's discuss your product demand.
Who is your customer? Why are they buying your products?
That will help us
- understand better. - Right now, 60 to 70 per cent of
our sales are by those who don't play professionally.
- They just play on the streets. - Consumers.
- Just for fun. - Consumers, right?
For them, we have tennis ball bats.
So, you're saying that bats of this quality
at this price can only be manufactured by you in India?
Just us.
- There's no competition. - No.
But SG in Meerut?
It's English willow.
The wood for English willow can't be made in India?
No, it's imported.
Give me an example of a cricketer who uses Kashmir willow.
Junaid Siddique in last T20 World Cup.
More players will be playing in this T20.
The adoption is increasing with each passing year.
So, how many bats do you sell every month?
Do you sell it online?
- Online. - Right now
around 1000 bats per month.
How much do you sell on Instagram?
Around 70 per cent.
- Yes. - Yes.
How's the profit like?
Around 5-6 lakhs per month.
- Do you pay your grandfather? - No.
- You're not paying your grandpa. - No.
So, that will be deducted from the profit.
You'll negotiate a cheaper deal with your grandpa.
In India, the total market size
for bats, how much is it?
There is no exact number.
Do you have some sense
how many bats are sold in a month approximately?
Kashmir willow bats, more than 30 lakhs last year.
That makes it 25 crores a month.
Kashmir willow bats
approximately. We can have an estimate
that, every year,
Kashmir willow bats worth 300 crores are being sold.
And you're trying to make a place there.
What do you think? Three years from now,
at what pace will you grow?
How do you plan it? How big a business do you plan to make?
Right now, we're growing every month.
- Yes. - Since we started,
there has been no month without some growth.
Where we didn't increase our sales.
Specifically, since we launched our season bats.
So, next year, we're targeting to close around 6-7 crores in revenue.
Because there are many Indians who play cricket there.
They find English willow bats to be expensive there.
How did you find customers in Qatar?
- Someone contacted us. - Online.
- Through Instagram? - Yes, they mailed us.
Within two days, we finalized the deal and dispatched it.
- How many bats did you sell? - 1000.
Did you get a re-order?
- No, it was just last month. - Okay.
Okay, I'll make you an offer.
Because as far as I remember,
the market for bats is around 1500-2000 crores.
And there are two companies with more than 200 crores.
at this young age,
we didn't know the difference between head and toe.
I don't want to rob you. They want 10 per cent fo Rs 30 lakhs.
They're robbing you.
They think you're kids. You're not.
You have to show them that you've got brains.
Okay? I'll give you Rs 30 lakhs for 6 per cent.
Anybody who mentions that you're a kid
is insulting you.
We are accepting you respectfully.
Why was your valuation so bad then?
[music playing]
Valuation has a method.
- We just can't... - Valuation...
We can't say 6, 2, and then 50 crores.
That's not how valuation is done.
Do you want to learn maths or do business?
Have you ever seen someone become a businessman without knowing math?
Listen, I'm making a heartfelt deal. And he's complicating it.
They're negotiating. Is that what you want to do?
I have an offer for you. Rs 30 lakhs
which is also the same as my first investment.
- [muttering] - At 4 per cent
And let me share the reason with you.
I believe that the pace at which they're growing,
2.5 crores this year,
and my aspiration for the next two years
is for you to be able to make 8 to 10 crores of revenue.
And fast forward to two years,
I believe that your multiple will become reasonable.
The valuation that you're planning.
Hamaad, Saad, I'm not here to win deals.
I'm here to make investments.
It was nice meeting you and through you
- I salute the people of Kashmir. - Thank you.
But 4 per cent doesn't make sense as an investment
- looking at your numbers. - Okay.
So, I'm out.
I'll make you an offer. Rs 30 lakhs at 3 per cent.
Peyush is offering Rs 30 lakhs at 3 per cent.
Yeah.
Ritesh is offering Rs 30 lakhs at 4 per cent.
I'd like to change it.
So, I'd like to revise my offer.
For you. The offer is for Rs 30 lakhs.
Peyush is offering Rs 30 lakhs at 3 per cent.
Aman is still at Rs 30 lakhs for 6 per cent.
Hiding his face.
- Okay. Rs 30 lakhs at 6 per cent. - And Vineeta?
And this seems like a vegetable market. So, I won't change my offer.
It will go haywire. So, my offer is Rs 30 lakhs
- for 10 per cent. - I think you're on the right track.
Right? There is no problem. It's an early stage.
There's not much requirement of dilution. It will require money.
I also think, at least 50-60 per cent will be from export.
Right? You have to hit the international markets.
I can help you there probably.
That's what I feel. There's no other problem.
You're not burning money.
You're using your grandfather's resources,
you have to find a solution so that he also gets compensated.
It can't work in the long term.
Okay, think and let us know.
- Okay. - Go on.
A moment. Thank you.
Sir, let me know if you wish to negotiate.
[laughing]
- Huh? - What do we do?
[mumbling]
Oh, Ritesh!
Vegetable market.
Ritesh, you're a billionaire. Who will compete with you?
Wow! That was fast.
Remember who gave you the best offer.
So, Aman and Peyush, would you like to come together?
Don't worry at all.
- Thank you. - Thank you.
- Very impressive! - Good luck, guys!
[music playing]
- Hi, Sharks. - Hi.
Hi.
Hello.
This ten seconds of silence is very disturbing for us
and often annoying too.
But do you know that silence has become people's way of life?
WHO believes that
by 2030, one out of eight
It is beyond the means of a common man.
[music playing]
WeHear is a company
This product
bypasses our ears and takes the sound directly to the brain
using bone conduction technology.
that is designed, engineered,
There are more people into it. Aman must know.
Correct.
Bone conduction headphones have been around for 10-12 years.
But our patent is that using this technology,
we have created a hearing solution
for people without physical ears
or without an ear hole,
they can hear without a surgery.
But even the normal headphones
that use bone conduction can be used to hear too.
What's special about your technology?
Sir, using normal headphones, a completely deaf person can't hear.
A normal bone conduction headphone
is like a sunglasses. Anyone can wear it.
But our hearing care device
is like a spectacle.
It will be configured as per your ears
and the sound is processed that way,
and sends it to your cochlea.
So, it's a defect at birth, is it?
Yes, Sir. This defect is called Microtia.
The product that we've launched is the solution for surgery.
Our key focus is surgical solution.
Yes.
Okay.
So, you're listening to some song.
- It's not audible to any of them. - Yeah.
Secondly, we have created two modes, indoor and outdoor.
As soon as you
change it to outdoor mode with a single-button press...
- I can hear it too. - Yes.
It's for outdoor.
But usually, we listen to music in public.
When we put on headphones while running or hiking.
Sir, for this level, we provide earbuds,
so when you're travelling in flight,
once you put on the earbuds,
you have a perfect experience.
You don't compromise on the sound quality.
I don't understand bone conduction. It's just like an audio.
When it doesn't have a medium, it vibrates the air,
else those vibrations will enter your cochlea through the skull.
Okay, there are no speakers in it.
Yes. It has transducers, not speakers.
I see. Got it.
You could've played a nice song.
[giggling]
Our second product, which is our hero product,
is called HearNU.
The HearNU product
is specifically for people with no ears.
It is to be worn on this bone over here.
- The temporal bone. - Hmm.
The device is worn on the temporal bone.
This is a band.
I wear this band on the wrist.
The microprocessor inside it
tunes the audio based on the person's hearing.
- but I can parallelly connect it to the TV, phone or laptop. - Nice.
Kids can use it for education.
They are listening to things around them anyway.
Along with that,
they can hear using other modes of communication as well.
Globally, for anyone in this situation,
other than surgery,
yours is the only other solution in the world to help them hear.
Absolutely, sir.
- And this is the only solution. - Yes, ma'am.
- Is there any other technological solution? - No, sir.
The National Institute of Speech and Hearing in Mysore
has tested it and recommends it.
Ali Yavar Jung Institute of Speech and Hearing, Bandra,
which is a 72-year-old institute,
has tested it too.
Lovely. If you have done that,
- it's commendable. - That's crazy!
How many people in crores cannot afford surgery?
Sir, ideally, 80% of the people
- can't afford it. - Let's assume half of it.
- More than half, sir. - Well done.
What's the secret behind it?
We closed the last round
Sorry. You can call me a sceptic or whatever you want.
You did something commendable
- and made an invention which is extremely rare to see. - Yes, sir.
- You have a lot of patents as well. - Granted.
- They're granted. - Yes.
Yet you only have Rs. 50 lakhs in the bank.
How much did you raise in the previous round?
- He isn't. - I haven't heard of them.
We recently visited Dubai.
We had a lot of interest from a few of the ENT surgeons there.
They had invited us.
How did you arrive at this valuation?
We have done over Rs. 5 crores in sales until now.
- Last month? - Rs. 93 lakhs in September.
Rs. 89 lakhs in August
and Rs. 14.25 lakhs in July.
I don't understand one thing.
It is generally observed
that IP-related businesses are heavily VC-backed.
- True, sir. - Exactly.
Tier 1 VCs are looking for...
They'd pounce on it.
Would pounce on it. Absolutely!
We already have interest.
I'm going to France to meet three health-tech investors.
Forget about that.
France...
- You go to Dubai and France... - Yes.
Is there a shortage of funding in India?
Why haven't you... Did you meet the VCs here?
So, we went to people who believed in us
- rather than... - I feel that your technology
is lacking in certain aspects.
There surely is an alternative.
This is the reason it is hard to conclude
whether this will be the technology that will capture this market...
- Okay. - In my opinion.
In your view, how big will this business become?
The audiology market has three main segments.
This market imports goods worth Rs. 5,000 crores in India every year
and this number is growing.
We're working on two aspects.
The first one is feature-oriented.
It is a 16-channel programmable device.
You can tune to 16 different bands in both ears.
- Also... - The new launch, right?
- Yes, the one which will be launched. - Okay.
It also has the Bluetooth feature and rechargeable batteries.
So, all those features are there.
What's the price difference between your hearing device and others'?
Tell us about your sales.
How much comes from India and how much is exported?
The sales of the last two months came from international markets.
The August sales are from Kenya.
The September sales are from Dubai.
How much business do you get from within India?
Sir, as per our model,
we tie up with stockists from every city.
When we were granted the patent in May 2022,
we began locking one stockist in every city.
That way, we covered 11 cities
and ensured a sale of 1,200 devices.
- After that... - Did they sell those devices to others?
Yes, they started selling to others.
Reorder... They started selling...
- Ludhiana has just started. - Hang on.
And did sales are two different things.
What were your reorders?
We got reorders from four stockists.
- 400 devices... - So, only 400 out of 1,200 devices were sold.
Okay, Raj. You're a wheeler-dealer.
I don't quite get what you do or how you do it.
A revolutionary and IP-based company like this
with such an unconventional funding manner!
It's something I've never seen.
Finally, I can't be of much help to you.
For these reasons, I'm out.
All the best.
Thank you so much.
Raj and Kanishka,
unlike Anupam,
I'm not sceptical about your product.
I am quite optimistic that
out of the 2.5 crore people, your solution will reach
at least 1.5 crore people who cannot afford surgery.
Having said that,
your valuation is already at Rs. 268 crores.
For me, as an investment,
the returns will not justify this entry valuation.
For that reason, I am out.
- Best of luck. - Thank you.
As a personal investment,
agreeing to a valuation of Rs. 250 crores for 1% equity
seems a little expensive to me right now.
I would not be able to invest. Sorry, I'm out.
Sure, sir.
I think if I invest in your business,
I will have to devote a significant amount of time to it
which I don't think is justified considering the 250-crore valuation.
As somebody who wants you to win,
I am on the board of some sovereign fund companies abroad
where similar challenges exist.
I am ready to introduce you to them as a friend and a supporter,
but because my time
would not meet the expectations of ownership
I would have from your business,
that is why I am out.
Okay, let's talk then.
Does the company have any burn?
Since the last two months, we are positive.
What's your three-year goal?
For FY 2024-25,
Okay, I'll make an offer.
Ooh!
- I have a few conditions. - Sure, sir.
India has to be a big focus for you.
When I asked you about your vision,
you went on about Rs. 150 crores and a billion dollars.
You never once said, "I'll solve the problem"
"of x number of people in three years."
We will make this product that you are yet to launch, a big focus,
because even this is a big problem.
The hearing aids available for Rs. 50,000 to 60,000
are not affordable.
- The inexpensive ones aren't good. - They don't work.
I can help you a great deal and you know all the reasons why.
Correct.
The problem is the valuation.
Just because we're friends, I could give you Rs. 500 crore too,
but that doesn't make your valuation.
You need to see
how are you valuing me as an investor.
I'll offer you Rs. 1 crore for 1% equity
and the remaining Rs. 1.5 crores as debt at 9% interest
What will it be?
If we agree on Rs. 2.5 crores at 1% equity right now,
we could keep additional advisory equity
over a period of time...
- Good offer, good reply. - In which our performance and...
That's the offer I made to you. It's kind of the same.
What's your counter?
Give me 1.5% advisory equity and I'll give you Rs. 2.5 crores.
Okay. You have a deal, sir.
Instead of 2.25 lakh sales, hopefully,
we'll provide 10 lakh people a solution.
That's a small number!
[laughs]
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- Sir, welcome. - Thank you. Thank you so much.
Without further ado, sir,
Aranab Sen from Kolkata wishes to ask you this.
- it makes decision-making very easy. - Hmm.
I will talk about three principles that I strongly believe in.
Firstly, I believe
that respect ought to be a non-negotiable trait.
I believe it gives us the chance to live in civility
and a social environment.
There's no problem in criticism or having a little fun,
but all of that without compromising on respect, or without disrespect.
Respect has to be given.
The second is resilience.
Many difficulties come