[music playing]
[music fades]
[theme music playing]
Hi, Sharks. 18 years ago,
I approached my mother
when I needed a bra.
She took me to a local shop,
where I tried on the bra
recommended by the shopkeeper.
It poked me and I felt uncomfortable.
There was a problem with the fitting as well.
When I asked my mom for more options,
she said this is what it is, we have to make do, just wear it.
That's when it hit me
that I wanted to pursue something in the lingerie industry.
And that's where our brand, Erotissch, comes into play.
[light-hearted music playing]
Being plus size doesn't mean
that I don't enjoy wearing swimwear.
In reality, every woman desires
to wear an attractive swimsuit,
whether they admit it or not. Don't you agree, Vineeta?
Absolutely!
Think about it.
Sometimes, finding swimwear can often be a challenging task.
Especially for people like me.
That is when, with Aayuushi's expertise
we created a line of swimwear
Similarly, we have nightwear for lingerie.
are intimate items for a woman.
Through Erotissch, our vision
is to empower and liberate women
and celebrate the strength of every woman,
regardless of her background.
Until now, through Erotissch,
that every woman deserves
to feel attractive and confident.
- Thank you! - Thank you so much!
- You said you are from Agra, right? - Yes.
Share your story with us.
How did it start? How do you know each other?
What profession were you in?
- We are sisters. - Oh!
She is 2.5 years younger than me.
After completing NIFT,
After that, we started planning for Erotissch.
Did you always know you wanted to become an entrepreneur?
To be honest, when I was in 10th grade, I knew that
- I wanted to do something in lingerie designing. - Wow!
There were no courses on lingerie in India.
So, I went for a technical course.
It was a knitwear designing course. It's a fabric
- used to make lingerie. - Got it.
Then I did a certification course in lingerie in London.
And then we started our company.
In 2019, we launched Erotissch through AJIO.
Our management worked there. There were a few tailors.
And we created our production from that unit
to launch it on AJIO.
You have already accomplished half of the task.
- We had to strive hard for it. - Okay!
It was challenging to describe the category to him.
Okay! Dad took time to understand the business.
He gained an understanding of our business,
but it is a big deal to break society's taboo.
I agree.
Did you apply henna?
I am getting married in 10 days.
- Oh my God! - What?
The events started on the 24th.
- And you are here. - We postponed our events to be here today.
- The veneration was yesterday. - And you are on Shark Tank!
- Amazing! - Sir, priority!
- Priority? - I won't get this chance. I can get married.
You are saying this on TV. Your husband is listening.
My husband is very happy. He is marrying a celebrity.
- Wow! - How nice.
- Good luck! Congratulations. - Thank you!
What was the reason behind choosing the name Erotissch for your brand?
The name Erotissch can't be found in any dictionary.
We made it up.
It is split into two directions, which is stylised erotica.
It is about celebrating women for who they are.
But isn't this causing a problem?
It is bothering me.
The name Erotissch veers off in a different direction.
Because erotica is meant to... You know eroticism.
For years, people have been associating lingerie with eroticism.
So, you can't talk about it because it's taboo, right?
The meaning of lingerie in India is often misconstrued
and is meant to be worn to impress others.
That's...
- That's exactly my... - You wear lingerie for yourself.
That is the change.
You are fearless because you are Erotissch.
Aayuushi! Anushka! That is exactly the point we are making.
If that is the case,
and you are wearing it for yourself,
- then it shouldn't be called Erotissch. Let's move on. - Okay.
Also, when you go to advertise your product
on social media platforms,
a term like Erotissch
creates difficulties within their algorithm.
This might cause a practical problem for you.
What is your proposition?
must have a personal drive to run a business.
Indian women, in particular, have curvaceous bodies,
which can make it challenging
to provide proper support and create attractive designs
that don't cover their bodies. And we want to tackle that.
Sometimes,
we do something because we are passionate about it.
But how others perceive it in the market
can be confusing.
People start saying, "This is for plus size."
What's the scale of your business right now?
Definitely.
What is your USP?
In all the products you see,
it's our design theory,
the prints and the stylising.
We want everybody to get in touch with their fun side.
As far as I understand, your main USP is your design.
Designs, yes.
Could we see some more designs?
So, this is the website.
It is elegant and nice.
As I said, we have a brand vision and brand identity.
Plus, we have quirky prints, colours and designs.
We've combined it all and made these.
Our major share comes from marketplaces.
It is a very niche category.
Bringing any customer in D2C was a tough task for us.
In the start, we went where our customers were.
It is mostly plain colours that customers buy, right?
- Simple? - Surprisingly, no.
Until now, we were majorly playing in prints.
We have launched this collection for the first time.
- The solids. - This one? Got it.
Your solids are quite fashionable.
- I feel that you know in prints... - But...
Do you see the pink colour that the mannequin is wearing
and that royal blue?
Such colours really stand out.
That's precisely what I said.
When you said you sell on Amazon, I told you
solids must have higher sales but you said no.
The problem is that you can't identify your USP.
- It's still there in India. - Yes.
- I believe Reliance bought it. - Ambanis.
They were also doing the same thing.
So, I don't quite understand what your USP is.
It's quite a crowded market.
Scroll down and show us more designs.
[music playing]
Overall, I think the design language is okay. It's good.
- Yes. - There's a company called Vacheron, right?
They sell such prints. Very expensive.
Shivan Narresh.
- Shivan & Narresh. - Shivan & Narresh. Exactly.
When we talk about our market share,
either there are mass brands like Clovia and Zivame,
My sense says that such prints are typically very expensive.
If yours is affordable and fashionable,
it's a good USP.
Tell us the price of this.
in the first month, we do not give any discounts.
The majority of our sales comes from Myntra
We go by average order value and not average order price.
The average order value is Rs. 1,074.
That's it!
How much does one bra cost?
Rs. 650 to 750 after discount.
In marketplaces, it would be two.
Do your sales come from the website or marketplaces?
The majority of our sales come from marketplaces.
What's your sale in percentage?
What are Myntra's annual sales?
You mean, overall categories?
Beachwear, swimwear and lingerie.
I guess lingerie is around 8 to 9% of their overall sales.
- You said 63% is from Myntra. - Yes.
All right, let's say you'll do about Rs. 3 crores from Myntra.
What is the market share of that out of Myntra's total sales?
Myntra... I'm sorry, I...
- They don't know Myntra's total sales. - Yes.
I'm guessing based on 7 to 8%,
it must be around Rs. 700 crores a year.
So, it must be around Rs. 60 to 70 crores a month.
So, your market share on Myntra in your category is quite small.
It might be 1% at the most.
Tell me something related to that.
What is the lingerie market size in India?
Globally, the market size is over Rs. 70,000 crores.
It is way bigger.
I think the Indian market is Rs. 70,000 crores.
- Do you know the size of the organised market? - Sorry.
You don't know.
Any idea about the online market size?
I don't have those statistics, sir.
Of your total business, what percentage is beachwear?
You were teeming with energy.
Now, it has gone down. Why is that so?
We are learning a lot.
- Actually! - You two must have seen season 1 and season 2 also.
You must have learnt something
related to our questions and discussions.
You postponed your wedding date and came here especially,
- only to learn. - Definitely.
- Can I be honest? - Yes.
- We feel intimidated in front of you all. - Yes.
- To stand in front of you and... - I was about to say that.
- Exactly, yes. - And
- answer these questions. - It seems so.
I'm not able to articulate my answers.
Please be relaxed.
You appear to be intimidated.
The energy you had in the beginning has slumped.
Right.
Do you know what you are thinking? "I just want..."
- "Let's escape." - "Let me scoot off."
- "Let's run away." - Please don't give up.
- No, definitely... - An entrepreneur should never give up.
Please don't.
It's rightly called Shark Tank
- because when you ask questions... - Right.
- We feel nervous. - It gets on our nerves at times.
- And thank you for... - Thank you for that.
Are you profitable right now?
Our profit is minimal as it's just 1%.
If our product costs Rs. 1,350,
and you are left with 23%.
- Now you need scale to make it profitable. - Yes!
Why are you here for investment?
And where do you see your brand
in the next, let's say, three years?
Anupam, before answering your question, I want to say something.
We discovered on Myntra
that the beachwear category is an unorganised sector.
It has growth potential because there's demand.
Our sale is majorly beachwear under the swimwear category.
You said there's growth potential
As Aayuushi mentioned, it's an unorganised category.
If we check Myntra,
we don't see a separate beachwear category.
It doesn't show in the menu.
This entire section falls under swimwear.
For example, if a customer
wants to buy something to wear on top of swimwear,
they'll search for a western dress and then proceed to buy it.
It's because of the unorganised nature.
If we do proper categorisation
and create awareness,
this product will be in demand.
There's no concept of sunbathing on a beach in India.
So beachwear can't be a big market in India.
- We don't use beachwear for sunbathing. - That's right.
If we are on a tropical vacation
- and staying in a shack or just strolling... - Right.
You wouldn't wear Western wear.
You wouldn't wear jeans.
You'll wear these types of garments.
That's right. Beachwear doesn't include a bikini.
Bikinis are worn for tanning.
- Beachwear is worn to look cool. - It's not a rage in India though.
If you go to the Maldives,
50% population is Indian and all of them wear beachwear.
I laud your passion
and I think you should continue working in this category.
However, I find your numbers and your overall strategy weak.
You are working in three deep categories.
You must focus on a particular category
and expand it for a short while at least. You must make a choice.
Then work on differentiation.
Secondly, you have an unprofitable business
because you are selling only in marketplaces.
Something is wrong.
You should renegotiate with the marketplaces.
Instead of paying them 40%,
you could pay 30% and save 10% for yourself.
You are slogging but the marketplace is gaining.
I'm out today because you are at an early stage.
Um, maybe we'll meet again.
I think in terms of positioning and strategy,
I don't understand your business well.
Nor do I understand
your brand name and your goal properly.
Well done on building a good business but today, I'll be out.
One piece of advice.
Every business need not get VC funding.
If you want to build a small profitable business,
focus on swimwear and beachwear.
- Good luck! - You received good advice from Anupam.
- Thank you for the feedback. - Thank you so much.
I want to be out
because yours isn't a business with significant growth.
It could be a good business personally
but it isn't an investible business.
I can't see your profit of Rs. 4 crores grow
to Rs. 400 crores imminently. So I want to be out.
I think the online market for lingerie is too small even today.
It's less than 10%. The offline market is huge
but you can't run an offline business
because your pricing is confusing.
If you sell perpetually at a 35%-40% discount,
retailers won't partner with you offline.
Because they won't understand your exact pricing.
Plus you have multiple price bands.
Will you open a store in a mall or a separate store?
I find your pricing, brand strategy, and name
very confusing.
So I can't help you as of now.
Best of luck.
- Thank you. - Thank you so much, Sharks.
Even I think that your category is interesting and it could grow.
There have been acquisitions in the D2C sector.
The acquisitions done by Reliance
in this category are huge.
Today, I didn't understand your business.
Maybe you two couldn't present yourselves properly.
For this reason, I can't make a favourable decision.
So, unfortunately, I'm out.
Aayuushi and Anushka, you both received some great advice.
Continue working and we'll see you again.
- Best of luck. - Thank you, Sharks!
- Thank you! - Thank you!
[dramatic music playing]
[theme music playing]
[ethereal music playing]
Sharks, we see innovations in India when we are in need
but otherwise, people say,
"Let it be."
It's the same case with candies.
Last year, India consumed
However, big companies say,
"How does it matter? It's the norm."
Just rethink the figure we mentioned earlier.
Candies and chocolates containing 31 crore kilos of sugar...
It'll result in diabetes and it'll be free! Free! Free!
But making candies without sugar is impossible.
Guess what? We made it possible with Niblerzz.
We spoke to experts and cracked a recipe.
We made a recipe
which doesn't have artificial flavour or colour.
smile, say cheese,
and say openly, "one more candy, please!"
On that note, Sharks,
Why don't you want Vineeta as a Shark?
We don't want processed sugar.
We want Vineeta, of course!
- So you want Vineeta. - Of course!
Please take her with you.
[laughing]
Your tagline, "bye-bye, sugar" is offensive, but
I'll try not to take it personally.
Tell us your story. How do you guys know each other?
We both worked in advertising.
- Sandhya was my boss and I was her junior. - Wow!
- Sandhya... - Who's the boss now?
- We're equals. - Equals.
Okay.
Sandhya has an experience of over a decade
working with Marico, Garnier and other big brands.
- As what? - Account Management in Advertising.
I got the opportunity to work with Sandhya
on Unilever brands such as Lipton Green Tea
and Kwality Wall's ice cream.
So, that's how we met.
After the lockdown ended, she was figuring out what to do.
During our conversation, we realised
that the candy we get in India
contains a lot of sugar.
Also, other problems came along with it
like artificial flavours and colours.
Kids these days get a lot of allergies.
There was no better for you candy.
There was no supply for the demand.
No one was making those products.
We saw a clear white space there.
Is the market of candy in India that big?
Azhar, buddy!
Your ragging has begun.
- What's this? - So, we have Lollipops,
Chocolate Peanut Buttercups and Real Fruit Gummies.
[laughs]
Have a sweet!
You were so loud, I thought you might hit me.
- I love the energy. - Yes, absolutely.
- These are our pouches. - Thank you.
Thank you.
- Wow. - Thank you.
I'll take multiple...
- I don't remember the taste of a lollipop. - Why not?
- Thank you. - Thank you.
I can't taste anything...
- I got it. I liked it. I loved it. - [laughter]
Neither do I.
How is it?
I don't taste anything.
Can you taste the lollipop?
I haven't tried it yet.
What about you, Vineeta?
No, right? What about you?
No, not that much.
All three of us tried the lollipop,
but we couldn't taste anything.
The lollipop isn't sweet.
We replace sugar and instead
50% won't eat it.
So, you are selling it for the experience.
This is not really a lollipop then.
A lot of kids haven't tried lollipops.
This is perfect for them.
They've never tasted blood.
There is no taste in this. I am saying...
Do the children you are selling this to find it tasty?
- Yes! They're... - We've not had any bad feedback
- on the taste of the lollipop. - Taste of the lollipop.
- This is okay. - Thank you, sir.
If children want to eat candy,
they never settle for just one candy.
Our ingredients are completely natural
since we don't include
any artificial flavour or colour.
Mothers feel a little more relieved.
We use chicory root extract or FOS.
They work as prebiotics.
It actually...
Very little does it get absorbed by our body.
And it is thrown out of your system.
How many of these can a child have in a day?
- An entire packet. - The whole packet.
How many Gummies are in one packet?
About 12 to 15.
According to 15 Gummies,
you are saying about 40 to 50 grams of carbs.
You were arguing that
it does not cause a spike as much as sugar, that's not true.
The concept of sugar is simple.
- There are simple carbs and complex. - Yes!
These are simple carbs.
There is no question, there is no debate about it.
If you consume around 30-40 grams, there'll be a spike.
You said the feedback was positive.
Which age group are the majority of customers from?
because they're high in protein and fibre.
- Is Peanut Buttercups your highest-selling product? - Lollipop.
Lollipops is about...
At the start, you said the market is Rs. 20,000 crores,
but you're playing in a Rs. 50-crore market.
Our pricing can be lowered.
Right now, we are producing in very small batches.
Even then, 10x!
If you tell the consumer to upgrade by 20 to 30%
from the less healthy, it's acceptable.
10x! It's a lot!
How could you think of pricing it at such an MRP?
And why is it priced so high?
Gummies, as a product, is very expensive to make.
How much does this lollipop cost?
Look at the size of that lollipop and this lollipop.
Sir, that is round in the shape of a football.
- Ours is flat. - This is the same size as Mango Bite.
- Yes. - Mango Bite costs one rupee.
Correct, but we cannot sell Mango Bite.
We can't sell in that price range
- because... - That's fine.
We are just trying to gauge
how costly your product is as compared to the average product.
Whether it is 2x, 5x or 10x.
- Maybe 5 or 10x. - Understood.
- 5 to 10x. - Yes.
- 5 is okay. - It is 5x.
Which is fine.
Did you conduct research? Does a 5x price really sell?
Our products are available and people are buying them.
So, they are selling.
Coming to the international brands that are imported.
For instance Jolly Ranchers or Haribo Gummi Bears
or even Reese's Chocolate Peanut Butter Cups.
They are way higher than our products
and they are being imported.
- India has many kinds of markets. - Hmm.
The market you are talking about... You took Haribo as an example
but if laymen hear it, they'd mistake it to be a swear word.
I mean they don't know it. I hope you understand.
- There's a segment which can pay any price. - Yes.
We accept that you can sell them any product but it's a small segment.
- I think that's the point people are trying to make. - Correct!
You can't launch a premium imported substitute brand
and then turn it into a mass brand.
- No. We agree. - It's impossible.
- Sure. - We agree.
Will you please share the numbers?
I mean your sales figures.
Last year, during FY22-23,
So there's a problem.
- Last year, you sold just Gummies. - Yes.
- You sold Gummies worth Rs. 1.25 lakhs. - Yes.
But this year, your sales aren't flat. They have dipped.
You are launching new products too.
Although your first product wasn't a success.
Gummies are difficult to understand.
So you'll stop making Gummies eventually.
No. We'll make Gummies and export them.
- Wow! - We have received enquiries for export.
I think it's fair to say
you're at an early stage of finding, in my view at least,
- Then start focussing on one product. - Sure.
I'm out today but keep going and it was great meeting you.
- Thank you, Peyush. - Thank you!
I'd like to be out too.
- I want to be out because it's too early. - Sure.
Over time, you could find a good product
and there's going to be a demand as the world wants healthier options.
- Yes. - There are going to be more options.
- However, it's too early to take a decision now. - Sure.
How much do you burn in a month?
Month-on-month burn is about Rs. 2-2.5 lakhs.
- Incredible! - Was the burn from the sales?
The burn wasn't from the sales.
Ah! No! Not like that.
The burn is actually lesser.
- It's about Rs. 50,000. - Hold on!
Please tell me your EBITDA first.
We have a negative EBITDA of 20%.
- 20%? - 20%.
15% on office space
and our warehouse.
That isn't working capital.
Working capital is the money
that is tied up in inventory and receivables from your stores.
We have about Rs. 3.5 lakhs
in our receivables.
And if I look at inventory,
we have about Rs. 1-1.5 crores worth of inventory.
- What? - Wow!
- No! She is getting the figures wrong. - Oh my God!
It is impossible. Think again.
An inventory of Rs. 1 crore on MRP.
- On MRP. - That's not possible.
Why will you have 1.5 years worth of stock?
Ah! It's a total of three products. It's not one product.
- But the monthly sale is Rs. 5 lakhs. -Impossible!
It's not possible.
- The expiration date is July 2024. - Hold on!
The figures are wrong. Please think again.
To create an inventory worth Rs. 1 crore
with a gross margin of 70%,
you would need to provide an advance
of around Rs. 30-40 lakhs to your manufacturer.
- Did you pay him that much? - No!
Your figures are wrong.
Okay! Their numbers are not that strong. Forget it.
- Vineeta do you have a decision? - You need a chartered accountant.
- And a good one to help you. - Sure.
How do you run your household?
Who invested the money?
We organised a small FNF
of friends and family. We raised Rs. 60 lakhs.
Numbers!
- We have all our numbers. - How?
You don't lack business acumen. I'm sorry.
In the last three months,
After that, in advertising
about... We spent
about Rs. 15 lakhs.
What? Rs. 15 lakhs on a revenue of Rs. 13.5 lakhs?
Forget it! They don't know the numbers.
- Why are you bothering them? - Forget it!
Okay! Sorry!
Sandhya! Aashnee! I still don't have a problem with your losses.
I don't have a problem with the fact
that you don't have product-market fit.
My problem is that
you lack understanding of your business.
- No... - So, I am sorry. I am out.
I really hope that you can fix
this one thing and then raise money.
- Three Sharks are out, alright? - Yeah!
Look, I think you have a good advertising background.
And your presentation is good.
But I felt that there was a lack of communication.
You failed to comprehend many questions.
You are good salespeople.
- Apart from that, you lack business acumen. - Sure.
The second issue is your category.
You are saying Rs. 20,000 crores.
She claims that this is a good category.
Your category isn't even valued at Rs. 200 crores
with the price point you have.
I think there is a difference between India and Bharat.
The product you're creating for India
has a limited scope. Probably not going to make money.
But you do not understand Bharat.
And I think those are the issues. And that's the reason I am out.
Okay!
- Thank you! - Look, I...
As I mentioned earlier, I like this category.
I like the entrepreneurs.
You need to work on category expansion.
You have no clue about the finances.
We believe we can definitely make it happen, Aman.
What will you do if you don't make money in six months?
We're in
talks with investors
and have some soft commitments.
Who are they?
There are investors.
They are angels, not institutional.
There were celebrities, too.
Aman will give you a deal now.
Okay! I will give you a conditional offer.
for 5% equity.
- And balance Rs. 40 lakhs debt. - Okay.
Take the cheque.
- Take the cheque? - Just take whatever he is offering...
We can hear you!
What did she say?
Let's take the cheque, whatever he is giving.
- Let's take the cheque. - Hold on!
Let's take the cheque, whatever he is offering.
Why?
Because we genuinely want you to...
Let's not create more confusion.
Let's sell lollipops.
If I can help them by guiding them,
then they can do something big.
I think it was a completely illogical offer.
Our responsibility as Sharks is that we put money
in the right founders.
Otherwise, there are millions of
founders and startups who need support.
Invest in everyone.
Our duty as Sharks extends beyond generating profits for ourselves.
Our responsibility as Sharks is
to provide financial assistance to those in need.
If I can give them a little bit of time and help them,
I am very happy to do that.
[theme music playing]
We all indulge in snacking
despite knowing that it is unhealthy.
If I were to suggest giving up this habit,
then all of you would experience a range of emotions.
First is denial.
Potato chips are made from potatoes.
Potato is a vegetable.
Second is anger.
Isn't it possible to make healthy snacking as tasty as this?
Don't throw...
Third is bargaining.
It is okay to have 3 packets of chips.
It is an issue if you have more than 3 packets.
Eventually, acceptance.
Okay! Snacks that are salt-free,
oil-free, and flavourless are the way forward for my snacking habits.
Sharks, do we have to experience a range of emotions
to give up one packet of chips and chocolates?
Absolutely not! That's precisely why we've introduced Sorich products.
At Sorich, we create products
"We can get married in a temple.
Please give us the wedding money
so that we can invest it in our business."
- Wow! - They agreed.
It helped us start Sorich.
Sorich has become a health revolution today.
so that they can enjoy snacking guilt-free.
- and not your wedding. - Yes.
- Is it true? - Yes.
Why did it come to this?
Actually, our wedding was planned in 2015.
We booked the banquets too.
- Wow! - When we received the bills...
- The expenses. - We had to book rooms and had various expenses.
At that time, my mother had just recovered from cancer.
She was diagnosed with cancer at the end of 2013.
So 2014 was a difficult period for us.
Both of us did the calculations
and we decided to save all the money.
Very nice. How much money did you save?
Around Rs. 60-Rs. 70 lakhs.
- Wow! - You invested all the money in business.
- Yes. - Yes.
- When did you start it? - 2015.
Actually, when my mom was diagnosed with cancer,
I researched for her sake.
I took Ayurveda's help
and developed different kinds of teas.
I prepared some products
at home to add nutrition to her diet.
When those products were shared with friends and family,
I received a surge of demand.
- Can we see your sample products, please? - Yes.
[ethereal music playing]
- Thank you. - These are two kinds of peanut butter.
Wow! Thank you so much!
Thank you, Richa.
I like it. It reads, 'party mix spicy'!
Yes.
'Pudina tree pumpkin seeds'.
[ethereal music playing]
How many SKUs do you have?
We have 67 SKUs.
I loved the Orange Cashew, by the way.
We can feel the taste of real orange peel.
- Is it an ingredient? - Yes.
- Its price is Rs. 110. - Yes.
- And it weighs approximately 65 grams. - Yes.
We have launched this product
for quick commerce, especially.
Their price point is around Rs. 100.
Don't you think it's too expensive for such a small quantity?
Generally, this much amount should cost only Rs. 20 to Rs. 25.
- Is it selling on quick commerce at five times the cost? - Yes.
- Yes. - On what basis?
It contains nuts and seeds.
Basically, dry fruits.
But still...
- Tell me the price of others. It's a Dessert Bar. - It's a Dessert Bar.
It isn't organic.
It isn't organic and costs Rs. 70.
It costs Rs. 70 and where can we buy it?
It's named according to the price.
It's very nice because apparently,
it reads that it contains 30% cashew.
Good packaging and the taste of the product is good.
However...
I think the taste can improve.
B2C, offline and online. Whatever platform you may call it.
How will you stand out?
We manufacture our products
your biggest USP for the customer, what will it be?
Our products are made
with minimum processing.
It's like home-cooked food.
That is our USP.
Basically, it's healthy snacking. All the companies say that.
Please share your sales for the last three years.
Rs. 55 lakhs.
So you are spending Rs. 2-Rs. 2.5 lakhs.
- Rs. 2.7 lakhs. - How are you managing?
- Are you drawing a salary? - Yes.
- What's your salary? - Rs. 75, 000 for each one of us.
Basically, you are burning the amount you are drawing.
What is your gross margin?
- You're in the food category. - Yes.
And the price of this tiny SKU is Rs. 100.
Then how can it be that your gross margin is 48%?
Are other brands priced higher than you or lower?
They're competitive.
- In these eight years, what was the total loss in business? - Yes.
Our total...
We did losses in the first two years.
Tell me something.
It has been 8 years.
What is your current distribution channel?
E-commerce.
- That's the problem. - Why not?
- Sir, we were in discussions... - What were you doing for two years?
Quick commerce is booming!
Especially in the last two years,
- and your category is made for quick commerce. - Yes.
What were you doing in the last two years?
Sir, we had discussions with them
to let us run a pilot and they said post Diwali...
50% business of your competitors comes from quick commerce.
Something is lacking.
Either your energy, aggression or the way you do business.
There's a problem somewhere.
I don't know what it is. Why can't you do it?
My question hasn't been answered yet. I don't understand...
Were you negotiating on the commission?
- No. - No?
Then?
There's an entry barrier for us.
- You're a little late now. - We've tried.
- Yes, we are late. - Yes.
There's an entry barrier for us now.
- Actually... - So, we can say that your product...
An entry barrier suggests that the market is full.
Your product doesn't have a differentiator.
As far as I have understood, there's no product market fit.
Consumers don't want this product.
I think snacking as a category in India is huge.
As far as this business is concerned,
the way you're operating,
you couldn't make money in E-commerce.
You claim quick commerce has been blocked for you.
You cannot make money in modern retail.
It's very difficult.
In general retail,
this won't fit at your price point and just won't sell.
You already know that.
For that reason, I am out.
I don't see this business growing any more than it already has.
I am also out.
Here's my suggestion to you.
Shut down the current business and rethink it.
The business is eight years old
and you're still at Rs. 7 crores sales
and zero profit. In fact, you're making losses.
The business isn't growing either.
There's neither growth in the business nor profit.
Either of these should be true
at any given point in time for any business.
Neither is true here.
It isn't a matter of days, you have given it 8 years of your life.
So, shut it.
It won't succeed.
No, I don't agree with him.
I think building a business of Rs. 7 to 8 crores,
which is bootstrapped
with your own manufacturing,
is quite impressive.
However, I didn't quite like your branding.
It has too many different fonts.
Your logo is tiny.
Everything else is bigger.
I get the sense that your sales and marketing DNA
is missing in the team.
That's a weakness owing to which I am also out.
I'll be happy to help you otherwise.
Thank you.
I believe you lack a little aggression
and have a laid-back attitude.
I'm out for that reason. I won't be able to work with you.
I am out today.
Don't invest in marketing but in talent.
The business can still grow. Best of luck.
- Thank you. - Okay.
- Good luck, guys. - Good job.
Your products are great, Richa.
- I have to give you that. - I'll be a customer. I promise.
- Me too. I love them. - Me too.
It should be available! Where will you buy it?
[sombre music playing]
Welcome to Ask The Shark.
Joining us today
is Mr. Anupam Mittal who has invested in over 200 companies.
- Sir, welcome to Ask The Shark. - Thank you.
- Lovely to be here on your couch. - Thank you very much.
Sir, today's question is from the mountains.
It is by Suraj from Himachal Pradesh.
He has a simple and straightforward question.
As far as my experience goes,
if you hone your capabilities
and dedicate every minute to it,
you completely surrender to it...
You go in one direction
and see what's happening in the world.