[music playing]
[theme music playing]
[music fades]
Sharks, it's the era of fitness and everyone wants to stay fit.
Must you go to the gym to stay fit though?
Bro, if going to the gym is such a problem,
bring the gym home.
Simple!
- Oi! Who has space to set up a gym at home? - [chuckles]
If you want a good gym at home, you don't need space,
you need Aroleap.
Greetings, Sharks. My name is Anurag.
making it easier to incorporate strength training in one's lifestyle
and in the next three years,
we aim to see Aroleap's home gyms in over a lakh households.
Why did you take the leap with Aroleap?
When we conducted research on this space,
we saw a clear-cut gap.
If you wish to set up any fitness equipment at home,
- you'll need a big room... - Hmm.
And multiple equipment.
So, we had an idea.
If we were to replace physical weights
This device is prominent in many foreign countries, right?
There's a device called The Mirror.
- This is different. - This...
- Tell us its functions. - Sure.
This has proper weights.
Just as you add weights in the gym and squat...
Where are the weights?
Are you creating it through resistance?
- Basically, there's a motor inside. - Hmm.
We generate the weight using the motor.
So, when you pull,
the motor starts pulling in the opposite direction.
- Our control algorithms... - So, that's how it works. Got it.
That gives the same feel as lifting weights in the gym.
Give us a demo.
- Please. - Sure, we'll give you a demo.
[soft music playing]
you pull out both the handles.
Using the pin at the top,
the arms can be locked in multiple positions.
This is the lowermost position.
This is the mid position and this is the topmost position.
The ends of the arms have hooks to attach different accessories.
We provide accessories such as a rope,
Up to 75 kg resistance is available.
- Click and let go. - Click it.
The weights have been engaged. Give it a go now.
- Got it. - Yes.
I want to try as well.
Correct, I'll start a fresh exercise for you.
You added more weight for me!
Press the pedal once. Okay.
- Yes, the weight is engaged. - The weight is engaged.
[Peyush] Whoa!
- Wow! - You can see.
This essentially tells the machine how you are performing.
On that basis,
when you do the same exercise next time,
- You can fix the bench here and do chest presses. - Okay.
[music playing]
How much does this cost?
The price of the machine is Rs. 1.6 lakhs plus GST.
Let me show you another mode called Spotter.
This helps to prevent any muscle damage.
- Correct. - Correct.
[music playing]
When you say personalised training,
is the primary market homeowners or gym owners?
Our primary target market is homeowners.
The second is the DIY mode
- in which you can feed your programmes. - Correct.
You claim this does not exist anywhere else in the world.
- It does, in the US. - What's the name?
The company is called Tonal, sir.
- How big is it? - How big is the company?
Sir, Tonal is a unicorn.
They do ¤150 million in a year.
Do you know their growth rate?
Sir, there was a spike during Covid.
All such kinds of equipment saw a spike during Covid.
What about after that?
For the last two years, they have consolidated.
They increased their price point significantly
which is why their market in the US has shrunk.
Sorry. I'm asking about the market
because of the trend...
- Even you conceived these devices in 2020. - Yes.
This was the golden period for devices like that.
If you take the example of Peloton,
which became a very big company
at least in terms of the valuation during Covid,
we all know that its valuation took a big hit after that.
That's true.
So, what exactly happened?
- Sir, this category is called connected fitness in the US. - Okay.
- Excellent. - This category doesn't exist in India, we're creating it.
All right.
So, the market for connected fitness is about ¤3.5 to 4 billion
- in the US. - In the US.
It includes strength as well as cardio.
Cardio has a lot of players.
For instance, companies like Peloton, Echelon and others.
There's no company in strength
that has actually moved the needle significantly
in terms of revenue or disruption of market.
Tonal is the only company
that's the market leader in strength and is doing really well.
Is their machine similar to yours?
- Yes, quite similar. - Okay, got it.
Just this type of machine...
Not electronic, that market is being created.
What's the size of the home gym market in India?
Sir, the top five players
It's definitely high for the Indian market.
Our primary focus will be the US.
If you look at the US,
there's no player at this price point.
How much is Tonal selling for? What's their price?
Sir, the device costs between Rs. 4 to 5 lakhs.
- Let's understand that. - They don't want to sell in India.
Tell us your sales.
Sir, between Rs. 3 to 3.5 crores.
- No, sir. - No.
What will be your expenditure on Rs. 3.5 crores,
or will you make a profit?
- Sir, we will make a profit. - How much?
Rs. 5 lakhs a month approximately and Rs. 30 lakhs in six months.
We raised a seed round in October 2021...
- From whom? - From institutional investors.
Then why are they not? It's time.
Sir, more than money, what we currently need is...
We're not here for the money.
Then what are you here for?
We want founders on our cap table
who have exposure to foreign markets.
Would it be right to say that existing investors
So, if we want, we could raise a round of Rs. 1 crore from...
One crore is nothing.
Your first round was Rs. 5 crores. Raising Rs. 1 crore now won't help.
How much money is left in the bank?
Sir, around Rs. 20 lakhs in cash,
What's the ratio of your equity structure?
Sir, we have an equal share. We each hold 21.5% equity.
- I'm the CTO of the software side. - Okay.
Rohit and Aman have taken care of the hardware side.
I think, at this price point,
- your market in India will be very small. - Yes.
Hence, your vision is to focus on exports.
You haven't demonstrated that yet.
So, it's too early for me.
For that reason, I'm out.
[sombre music playing]
So, one Shark is out and four are still in.
I do strength training too.
Had I got such a compact machine, I'd have bought it.
It has a small market in India but the one abroad is big,
which is evident.
Azhar and I would like to make an offer to you.
my personal opinion is that it's a great product.
I am able to connect to it and also see the need for it.
Gradually, the need will arise
and people will be able to make gyms in their homes.
So, we would like to invest.
So, here is our offer.
Rs. 50 lakhs at a valuation of Rs. 25 crores.
That turns out to be 2% equity.
And Rs. 50 lakhs debt at 12% interest.
Congratulations!
- You have an offer. - I think it's a fantastic offer.
Look, in my opinion, you have made a good product.
Your team has complementary skills.
Are you here to take debt or equity?
- Equity. - Equity.
I'm willing to give you equity.
[gripping music playing]
I think you're making a big mistake
by pushing a market that is not working.
You do not have a PMF in this market.
Creating a PMF in this market is extremely hard.
Selling it in the US market from here is even harder.
I think that you should capture the physiotherapy market.
You happened to mention
that you are getting a demand from them.
You don't seem to realise,
that might be your product-market fit.
Given the use of your electronics,
this could be packaged as a safety-first device.
If you look at the physiotherapy market in India,
it is massive.
Would you be open
to looking at only the physiotherapy market?
It's okay if a fitness market is created along the way.
Absolutely.
All right then, I'll make you an offer.
At the valuation you asked of Rs. 25 crores,
I'll give you Rs. 1 crore in equity and no debt.
but once you establish yourself, there's space for expansion.
- You... - I have a different perspective.
You can focus on this.
Take it to the US. The product is ready.
Why spend another year to align the product for physiotherapy use?
Okay. I've made my decision too.
I'm glad to meet you, sir.
I think you're into core engineering.
You also have a patent.
I think the future is bright and the excitement is visible.
Even with Rs. 20 lakhs in the bank, your excitement hasn't died down.
- That's because I think you have that aura. - [Sharks laugh]
[music playing]
I totally agree with Anupam.
As a CEO, your idea of capturing the US market is just bad.
You can't capture the domestic market and want to go to the US.
Rs. 1 crore isn't enough for the US.
Airline tickets to and fro will exhaust all your capital.
So, don't make this mistake or you'll waste more money.
I am happy to join Anupam in his offer.
I have one recommendation if Anupam is okay
that we need to get a good salesperson on board who can..
Somebody has to go sell.
So, Rs. 1 crore for 4%, Peyush and me.
and Rs. 50 lakhs for 2% equity.
What would you like to do?
I wish to add one thing from our end.
We have not set any conditions
about venturing into physio or the US market.
We are with you.
Secondly, you need to work on your CAC and get customers,
be it here or from the US.
Azhar's as well as my expertise lies in generating traffic.
It'd be a great help to you
in strategising how to get customers...
The Sharks have made their pitches.
Quickly discuss it and tell us your decision.
Thank you.
- Outside... - Before you go, do you want debt or not?
- Sir, we prefer equity. - Prefer no...
Azhar, would you be okay if we change it?
We match their offer.
- Full... - Without condition.
- Without any condition. - Okay.
We ought to protect the interest of our investors.
Let's make a counter-offer.
The question is to whom.
Had you all been out, my offer was going to be
Rs. 1 crore at 10% equity.
Oh, my!
If the four of us collaborate,
we could do Rs. 1 crore for 10% equity, 2.5% each.
[music concludes]
Yes. What have you decided?
Sharks, thank you so much for all your offers.
Could we make a counteroffer?
- Sure! - Please...
- We have a counteroffer. - They do too.
You tell us your counteroffer first. I'm loving this.
Azhar and Amit, would you be okay with Rs. 1 crore for 3% equity?
I, personally, invest a lot of time.
- Let's make this interesting. - Sir...
Their Rs. 20 lakh capital is exhausted.
They're going to write it off their books.
Let's not joke about it. You agree?
[dramatic music playing]
You're getting Rs. 1 crore in the bank, they'll be very happy.
Let's close it at Rs. 1 crore.
- Rs. 1 crore... - This is the offer.
- I told you... - Brother, think big.
The journey after this will be drastically different.
Making it here was different.
[suspenseful music playing]
All boys team.
[music fades]
[theme music playing]
[theme music concludes]
Sharks, look how dull this plant is.
How do we revive it?
Would applying an expensive cream fix it?
No. We need to add manure to the soil.
We need to water it
and provide it with the essential nutrients.
Only then it will be healthy from the roots.
Similarly, understanding the root cause
of the problems in our bodies is very important.
For example, if you suffer from acne,
the root cause for that could be gut health,
hormonal health or liver health.
Creams can only reduce acne,
but if not addressed by the root,
then the problem could persist.
This is called understanding the root cause.
Based on this philosophy,
we solve problems not in the least amount of time,
but from the root at Cosmix.
Greetings, Sharks.
[music playing]
like hair supplements,
on health and a healthy lifestyle
so that they understand their health problems properly
and select the right supplements as per their needs.
We do not provide any quick fixes or make any false promises
based on our values.
We have supported over 1 lakh people
in their health journey as of today.
Sharks, marketing supplements responsibly is our duty.
Our vision is
to make Cosmix India's biggest
and most trusted education-first supplement brand.
So, our ask is
Vibha! Soorya! Welcome to Season 3 of Shark Tank India.
Cosmix was introduced because of the problems I faced.
When I was 16 years old,
I found out that I suffered from PCOS.
I was feeling very low.
Unfortunately, advertisements were targeting
my acne and hair loss at that time.
- And no one was talking about internal health. - It's true.
So, I wanted to create something for that.
I was 16 years old back then.
How old are you right now?
I am 28.
So, you started the business.
Yes. I started this business in December 2019.
- Oh, you are married now. Congratulations. - You are married.
- We met in college. - Cosmic forces brought you together.
[laughing]
- You can say that. - Absolutely.
Sorry, Sharks. I would like to pause for a minute.
Because we want you to taste, touch, and feel our products.
- Is that okay? - Sure! Lovely!
Okay, thank you!
[light-hearted music playing]
Okay, these are the protein supplements.
- No dairy. Vegan! - Vegan.
Thank you!
Sir, these are samplers.
This is really nice.
[light-hearted music playing]
- What is this? - That's our happy gut shot.
My Happy Gut, for digestion.
It is slightly bitter.
What are the ingredients?
There are many supplements that offer quick fixes.
But our formulations
That is our Mahabaleshwar Strawberry protein.
This is our newest category,
- Secondly, protein is your highest-selling product. - Yes.
Okay! I have tried every protein. I have also tried your protein.
I loved your branding. Your logo is fantastic.
I had ordered your product.
But whenever I've tried protein,
- it causes discomfort in my stomach. - Absolutely!
Are you suggesting that we purchase Happy Gut after buying protein?
No!
We incorporate gut-friendly ingredients
into our protein formulation
so that the load on the stomach because of high protein
is minimized.
It is very gut-friendly
- compared to... - Compared to other protein powders being sold? - Yes.
Who is making these formulations?
- Who is formulating... - I am a herbalist, sir.
I'm responsible for managing operations,
logistics, and manufacturing.
Tell me something. There are so many formulations.
Can't someone else replicate this?
Is it something unique that only you can pull off?
The formulation
is developed by our team and Vibha.
Do you manufacture it yourself, or is it contract manufacturing?
Is there any scientific certification?
We do perform pre-sale testing.
We do it with a group of
customers or a trial close.
How do you test that your product is very effective? Tell me that.
We provide our product and we give a set parameter.
And we get feedback from them.
Let us know about your sales so that we can determine the outcome.
You are making money!
- We have been profitable since day one. - Congrats.
- Thank you. - What is the gross margin in the business?
- No! - Bootstrapped? - No sir. We are bootstrapped.
- Right! - Yes - And you have never raised money. - No.
Why haven't you raised an investment yet?
When we brought people on board,
we wanted them to be very aligned with us.
You want an authentic investor.
Authentic investor. And we wanted to first figure out who we are.
Well done.
Why are you here?
We require both mentorship
and financial resources, of course.
First, we want to do some amount of global expansion.
But we also really want to put money
into building our team.
Got it! You've generated revenue of Rs. 10 crores up to this point.
How many returning customers do you have,
- and how many are new customers? - Every month,
40% is from existing customers.
How much is your growth without protein powder?
The trend is similar.
- Is it similar to protein? - It's the same trajectory. - Got it.
What is the second and third SKU which is growing?
My Happy Gut, our digestion supplement,
The average rating is 4.
- MuscleBlaze isn't plant protein. - Yes, it's very different.
There is Cureveda, right?
- Yes. - How big is it?
- Worth Rs. 100 crores. - Rs. 100 crores.
Which brand outperforms you in non-protein-based supplements?
There is Gynoveda.
How big are they?
Gynoveda must be Rs. 100 crores.
In what ways do you plan to outshine them?
Our uniqueness stems from our expertise in formulation.
Since we started manufacturing,
the knowledge of herbs, we have been gradually incorporating them
one by one, resulting in a fully-fledged facility
that can manufacture...
- You've set up a manufacturing plant. - Yes, sir
How much money did you put into the plant?
Rs. 40 lakhs.
People really liked the brand, the brand's story and communication.
Nowadays, consumers
don't just focus on the product.
They really focus on how we make them feel.
How many orders did you get last month?
On our website, we received nearly 9,000 orders. Close to 10,000.
- Okay, I... -I would like to make you an offer. Hold on.
I would like to make you an offer.
We ask all the important questions
and you give them an offer.
I don't have to promote myself.
- I am in healthcare. - Yes.
I am strategising on how to increase your value
to Rs. 200 crores within a span of 3 years.
I admire your business model.
I am interested in becoming a part of your team.
But I think Namita Ma'am is giving you a good offer.
She is the queen of this industry.
I don't think I can
give you a better deal.
Therefore, I am out. But all the best.
- Thank you so much. - Thank you.
I have one question. I was checking your prices.
This is one protein mix. How much is it priced at?
Rs. 165.
Probably, with our discount code,
our product will be cheaper than theirs.
- Got it! - Namita!
[suspenseful music playing]
I am not yet convinced
that it is a 10X better product scientifically.
I couldn't comprehend the potential defensibility of this
from a product standpoint.
Second, I felt that at this price point, I did not find
the market scalability... If I come to this valuation,
how much larger could it potentially grow?
Because of these two reasons, I am out.
Thank you! All the best.
All right! I have a couple of questions.
Let me share my thought process.
- There are many D2C brands. - Yeah.
To be honest, I lack interest in it.
I feel that there is a huge opportunity
to build a connected space.
Let me take Nike's example as a brand.
Nike developed its app-running ecosystem.
And they get data.
They are able to... Their focus is on athletes.
Shoes are a means to improve the life of an athlete.
I feel that I am very interested in long-term
to build a technology angle
to a D2C business like yours,
where you are not just eating the product,
you are also measuring and educating.
It may create a full ecosystem.
Nike is not for athletes.
It's for the common man
who wants to enjoy wearing basketball shoes.
Which is why they don't know about building brands.
But what I am saying is, if that is your interest,
then I will be keen on your business and I can make you an offer.
But think about it while you listen to them.
There are those who believe that you must
focus on marketing or technology.
Anupam and I are into health.
We understand it's purely a product play.
We would like to come together.
If we both come in,
Namita had offered Rs. 1 crore for 2%.
Which puts you at Rs. 50 crores. So, I will join in that.
But, the additional condition is,
give us 1% of your net sales as royalty
until we make 2X of our money.
I will also take the same royalty.
1% net sales
- But I want to be in that space. - Got it.
- Right? - If you want to discuss and negotiate
- then we can talk. - And I also want to add
that I will not do this deal with
other Sharks. I will do this alone.
- Yeah! - Peyush wants you to become a technology company.
You go and decide and then you come back.
- Thank you! - Thank you!
You have to decide if you want to
build your company or work for Peyush.
[mumbling]
I haven't criticized your offer. I made my offer.
And then you start doing this childish thing.
You said you would turn it into a technology company.
I am just sharing what I want to do.
I don't want to invest in D2C.
They are selling protein powder.
'They want the valuation of Rs. 100 crores.'
- You want it to be 2%. - Yes.
You will be out if it's 1.50%.
I am out if it's below 2%.
- Okay! Let's see. - Let's see what she says.
- Yes, Vibha!
But I cannot do it. I am done.
- Thank you so much. - Thanks a lot.
- I will counter you with one offer. - Okay.
Why don't we do Rs. 1 crore for 1.50% instead of 2%?
And 1% royalty, till it becomes 1x.
- It is a good offer. - I will do Rs. 1 crore for 1%.
And royalty only till I get my money back.
Vibha, decide.
We are okay with whatever you decide.
We want to counter with
- for 1% along with royalty? - I will do it if you say 'yes'.
If you say 'yes' now, I will do it.
Please give us a minute.
- No! Rs. 1 crore. 1.50... - Rs. 1 crore with 1% royalty.
It's an expense. It's a 1% expense.
- Okay, ma'am. I agree. - With me?
Namita, we have a deal.
You've made the worst choice.
We will make this big.
[camera clicks]
- Guys, good luck! - Thank you!
- Thank you. It was really great. - I am a customer.
- Thank you so much! Thanks. - Good luck!
- Should I do the victory dance? - No!
- You got it too expensive. - Victory dance.
Oh! Royalty! I got royalty, dude.
[theme music playing]
- Hi, Sharks! - What's up?
Impressive!
Sharks, all of you look stunning today.
- Thank you. - Great jackets! Great dress!
But you need fabric to make amazing garments.
- Yes. - Fashion brands
have to struggle a lot to source their fabric.
Let's say, Nikita from Nagpur
aspires to start her own clothing label.
She will have to travel to different places to procure fabrics.
For cotton, she will have to travel to Bhiwandi.
Erode for viscose.
And Tiruppur for nets.
Since Nikita's brand is quite unique,
she wants customised designs.
The problem has just begun.
Fabric also needs pre-treatment, printing,
dyeing, and colour fastness.
And no one is willing to do business on a small scale.
All designers and private labels
encounter this issue.
To streamline the process of fabric sourcing
200 vendors in India
to make fabric sourcing, design,
customization, and fashion trends
just a click away for all fashion brands and designers.
And for that, our ask is
- Was there a previous investment? - Yes, sir.
We're currently raising a round
for which we've received a commitment of Rs. 8 crores
- Fabriclore, welcome to Shark Tank. - Thank you.
Did you draw inspiration from The Yarn Bazaar?
We started the B2B business in January, rather pivoted it.
Prior to that,
we ran Fabriclore as a consumer brand for six years.
They'd buy three or five metres of fabric
- and get it stitched from the boutique. - I see.
In January, we pivoted it to cater to private labels and brands.
Tell us about your background. How did you get into this business?
I was born in a village near Jaipur
- called Kukas. - Kukas.
I did my engineering in Delhi.
Then I got an opportunity with a US-based company.
They wanted to establish an engineering set-up here.
So, they invited me.
Then I started my engineering company in 2009.
I've done BCA and MBA
after which I joined Vijay's engineering company.
And after that, I joined Fabriclore.
You haven't gotten to the clothes background yet!
- We will now. - We'll get to it now.
I was born in Jaipur.
Vijay is my cousin brother.
We already had a fabric and textile trading business.
I didn't understand my dad's business.
I couldn't open the shutter of the shop early in the morning.
I did have a desire to do something though.
At the time, e-commerce was booming.
I started a domestic marketplace for women entrepreneurs.
I began selling my fabrics online too.
Fortunately, nothing else sold apart from the fabrics.
So, I discussed the opportunity with both of them
and asked them if we could give it a shot.
In March 2016, we started the company.
- We didn't make profits, but we did break even. - Okay.
This was at a time
when we used to dispatch 7,000 orders on a monthly basis.
We were a team of 90 people
and we had raised around Rs. 10 crores.
You had raised Rs. 10 crores!
You raised an investment!
- Yes. - At what valuation?
We might have had a crore rupees in the bank back then,
that private labels and designers were the biggest problem
as that involved fabric discovery,
and said we now have two options.
Either we close this company or we make a pivot.
The pivot would be so strong
that we'd need to shut this down on an immediate basis.
They heard us out and the discussion lasted a month.
In August, our existing investors gave us another Rs. 2.8 crores.
At what valuation?
How did you convince the investors to increase the valuation
when your original business had almost gone to zero?
I don't get it either.
So, what happened at the time was
when we built our digital assets over six years,
our Domain Authority was somewhere around 42.
We had convinced the investors that
if they gave us a chance to pivot,
we would keep the sales numbers around Rs. 50 to 70 lakhs.
Those numbers wouldn't go down despite the drastic pivot.
We gave them a guarantee.
Peyush, he's a good salesman to summarise it.
- Tell me something. - Thank you.
We want to know when you started the new model.
What is your current run rate?
Is the valuation you're about to get in the current round
from previous investors or new ones?
When January 2023 started,
we had anticipated that only until March or April...
That our capital would last us only until March or April.
We couldn't completely stop B2C.
Including that Rs. 2 crores?
The Rs. 2.8 crores we raised in August will also be exhausted
- by March. - You live too much on the edge!
Come March and we didn't have any money left.
We, that is the founders,
took a home loan of Rs. 1.1 crores and injected it into the company.
You've got guts. Time will tell if this was foolhardy.
This is a classic case of entrepreneurs
who jump first and then learn to fly after deploying the parachute!
You're playing on the edge at every turn. That's great.
So, by March, we'd taken a home loan.
Then came May and June,
and we realised the company didn't have enough money.
We could either take orders,
pay the employees
or the founders could take their salaries.
So, we stopped taking our salaries.
For the last seven months,
none of the founders have taken salaries.
What were your salaries earlier?
Our salaries were Rs. 6 lakhs combined.
- Combined, Rs. 2 lakhs each. Okay. - Yes, right.
I'd like to say one thing here, Sharks.
Our team was very supportive.
There was a time when we were scared to go to the office.
What managerial inertia would we even take to the office?
- But... - So, you don't have money now.
We began approaching investors in July.
- New investors? - Yes.
[laughs]
The investors agreed to give us Rs. 8 crores.
Commendable! Hats off to you!
Thank you.
The money has not yet come in.
You want Rs. 56 crores.
I've agreed to Rs. 55 to 56 crores
- because... - Because that will protect you.
- So that your equity is over 50%. - Doesn't fall below 50%. Yes.
I see.
What did you learn from all of this?
We learned that inventory-led and advertising-led models
are neither scaleable nor profitable.
Didn't you learn
that the problem you were trying to solve wasn't the problem?
your revenue should have risen and not dropped.
Amit, we don't have working capital as of now.
We have booked orders of Rs. 85 lakhs
and we're able to fulfil only up to 70 lakhs monthly.
So, we've stopped taking more orders.
As for your B2B sales,
do you have an offline team to sell the products
or do all your sales come through the website?
We have opened an experience studio.
of our experience studio in Jaipur is 90%.
No one is asking the most important question.
What are the types of customers?
Don't these factories in the export business buy from you?
- They're not our target audience. - Not currently.
The reason I am asking is
because your majority that brings in Rs. 1 crore to 40 crores
involves such a lot of hassle.
It has multiple SKUs with such low MOQs.
You're almost like B2C.
No, I'd like to clarify.
Our entire business model is made-to-order.
that our turnaround time,
which normally is 30 to 45 days...
- Our turnaround time is 2 to 3 weeks... - That's your USP.
- That's your USP. - Your rates must be higher.
Yours are custom-made.
If you lower the MOQ, the rates will increase.
- That's what ensures the margin. - How much does the rate go up by?
The price goes up by 10 to 12%.
The company is now at break even, right?
No. We're in losses,
because our revenue is only Rs. 40 to 50 lakhs.
What's your monthly burn? What is the current status?
Our sales last month were Rs. 40 lakhs.
We're not able to serve it.
- So, you're in debt. - That's right.
How much in total?
About Rs. 3.5 to 4 crores.
- Doesn't make sense. - You're on the verge of losing your house.
If this round does not go through as intended...
You just keep smiling.
I can't figure out
whether you're so strong that you're just unruffled!
Anupam, we've been through so much in our lives.
We can't go any lower than this.
When you look up, you're staring at the bottom.
That's how it is.
[laughs] You're right.
- Yes. Right now, you are in debt of about Rs. 4 crores. - Right.
- And you're negotiating valuation with investors. - That's right.
So, I am wondering
I am not negotiating.
The existing investors are saying they could do a downround
but won't go below Rs. 56 crores.
- The discussion is going on. - You...
- Who controls the company? - This...
There's a good solution to this.
but if you meet your performance metrics,
then you'll clawback a certain percentage of shares.
It'd be acceptable to both new as well as old investors.
Thank you, Anupam.
This is a new thought. It hadn't occurred to us until now.
And we've seen the result.
Even after your business shut down,
your investors are ready to give you money at a higher valuation.
Your business has too many complexities,
and as I can see, you're playing with fire here.
Your price seems a little high to me
given the scale and the amount you're burning.
So, I would like to be out fundamentally because of your price.
But, anyway, all the best.
- Hopefully, you will do good. - Thank you.
My fundamental problem is loss-making.
After a dilution of almost 49%
your valuation is around Rs. 56 crores.
The fundamentals of your business
Two Sharks are out. What is your equity split?
That is our next step now.
You are blessed! I would say you are lucky
that someone is giving you Rs. 8 crores
whereas you are taking it casually
and planning to negotiate.
Fundamentally and ethically, it is against my values.
I would repay Rs. 4 crores if I am getting
- Rs. 8 crores so I can sleep peacefully. - That's our plan.
- Absolutely right, Sir. - 'Yes.'
But, otherwise, glad to meet you.
I think you are likely
to make it big after learning from your mistakes.
But today, I am out.
- 'Best of luck.' - Thank you, Peyush.
As a CEO, I would like to give a piece of advice.
The source or valuation doesn't matter for now.
I personally don't think
that I am able to understand the strategy where you shut it down
and then pivoted it at an astronomical scale.
You're saying the working capital is squeezed
so it can't be scaled.
It's a chicken and egg situation. I am out for today.
I am out
because at this valuation I have no hope
of getting my money back.
- Alright. Good luck. Glad to meet you. - Thank you.
- Thank you. - 'All the best, guys.'
- Thank you so much. - Thank you.
The competition that China is giving
is impossible to face by people.
Since the past 4 to 5 years,
we see a scope, but the situation was so bad before that.
But I am noticing the new designers
on the Instagram market
who are manufacturing clothes at a small scale
and need supply...
But their cash burn model is so high...
The cash burn must be zero in B2B sales.
I don't understand
- their right to win. - Imagine the cash burn despite it.
- It is their load... - Their mindset is an issue.
I think their load...
I think their business only needs a stronger execution.
- Exactly! - He needs a stronger team.
[music playing]
Welcome to the show, Sir.
Sir, today's question is by Yash from Mumbai.
He has asked an interesting question in English mixed with Hindi.
I wanted to do business.
Since 2011, I started with my fight for business
so I would come up with a new business idea every month.
- Just like that, one day, - Got it.
I got an idea of 'news in 60 words'.
And, thankfully, it worked well.
It gave a good start to my journey.
I never thought of changing the industry.
It so happened that I started moving on in that direction.
A beautifully put, honest answer!
I have met a few people
who are doing good in life
which was like luck by chance, just like you.