[upbeat music playing]
[theme music playing]
Sharks, what's the top survival tip for today?
Change! People who adapt to change are the ones who endure.
We have all witnessed it.
We evolved in the digital age.
We have seen UPI, e-commerce,
and online banking, evolve.
But there is one community that didn't keep up with the digital era.
We are talking about more than 2 crores shopkeepers.
It is 'kirana stores', stationery,
electronics and many such shops
Why? There are two reasons.
One reason is,
that these sellers are unable to sell on online platforms
With Kiko Live,
won't be charged any commission.
Our ask is Rs. 1 crore for 1% equity.
When did you come up with this idea and why?
When there was a lockdown in 2020,
small shops saw a decline in their business.
Their shops were closed.
People's habits changed and they relied on online shopping.
Those who never purchased anything online were compelled to do so.
That's when we thought of finding a solution to this pressing problem.
It's crucial for small shops to establish an online presence
in order to secure
their existing customers and expand their business in the long run.
What makes you say that you thought about this during COVID?
They had been cataloguing the shopkeepers since the beginning,
but they were failing at it.
Informing small shop owners that their SKUs are not online
and urging them to list everything immediately
was causing a problem.
We started a live shopping solution.
In fact, we also applied for a patent
and we were recently awarded the patent.
The buyer is notified and the rider goes to the seller
to pick up the order and deliver it.
Home delivery accounts for over 10% of the total business in every shop.
And they run their business via phone or WhatsApp.
All of this is informal because the order
is written on a piece of paper or sent through a message.
There is no record of it.
He obtains an MIS in one place
regarding the orders he is receiving.
And instead of
reaching out to the seller in different ways,
the customer...
All of this is being done on other platforms.
The only thing they are not doing is live video
and that is because
many people have tried video commerce in India
- to replicate China. - Right!
But it hasn't worked in India yet.
Because consumers don't want to be on a video call.
Correct! The issue with this was that
'one to many' kind of live commerce didn't work.
However, our solution was slightly unique.
The shopkeeper informs his existing customers to contact them
through this solution instead of phone or WhatsApp.
But this solution
is looking for a problem.
- I don't see a problem being resolved. - We...
- Hold on! Please clarify something. - Sure.
- Are 'Kirana stores' your client? - Yes.
What do you exactly sell to them?
What are they paying you for?
Shall we see a demo?
- I will show you the demo. - Let's see a demo
- to understand it better. - It will make it easier.
Cataloguing means he can upload the products he has
- for customers to browse through and see what he's selling. - Yes.
This is how the website typically looks like.
On average, how many SKUs can they load?
Our website service went live
two months ago.
Around 50 to 100 fast-moving SKU sellers
are uploading to our platform.
- Generally, there are around 4,000 SKUs. - Yes.
This is a typical checkout process.
By feeding in the address,
the customer can choose COD or online payment
when checking out.
You said it is live.
Will you not show it to us?
One-on-one calling is evolving in this product.
We're encouraging sellers
to keep their catalogues updated
so their products can be seen on ONDC.
Live connectivity is not available on ONDC currently.
There is no need for this business.
So, the bigger picture that is evolving
is that ONDC... These are official figures that
over the next 2-3 years, ONDC
will be worth ¤80 billion.
Yes. This way, they will attract more business.
Having just one listing will take care of both of their tasks.
Their website will be ready
which will help them attract their existing customers.
He will also discover new customers through ONDC.
I am confused.
How do your offerings stand out from those of people
who are bigger than you?
What steps will you take to thrive in a competitive setting? - Correct.
For the start, the traction appears to be quite promising.
All the shops we've been to want to be associated with us.
Of course! Because you are not charging them.
But once ONDC is in action, we've informed them
that we will take a 5% commission.
- can be too taxing. - Yes.
Apart from his usual responsibilities,
he has to do this as well.
A lot of similar companies
- have already approached the shopkeeper. - Yes.
I agree.
Currently,
they seem to have a problem
where they feel hopeless
even if a new company approaches them.
If you can increase their business by around 40%
- only then you will crack it. - Yes.
- You will go viral and it will work. - Yes.
But the issue is no one has
- improved their business by even 5%. - Yes.
Zomato has done the same thing in restaurants.
We chose a vertical and carried out the necessary actions within it.
- Because there is no inventory. - Yes.
If there is no inventory,
- the fulfilment rate is higher. - Yes.
In retail, when you jump into this platform,
your fulfillment rate...
Fulfilment rate means that the customer ordered the product
This is everyone's dream.
I started from here
and gave up and eventually decided to go to restaurants.
- You gave up because of the Fill rate and... - Experience.
I didn't have customer experience.
Zomato's failure rate...
The failure rate is determined
when you don't get the order despite placing it.
That is 0.3%.
On a daily basis,
I lost 0.3% customers.
This means, on a monthly basis, I lost 10% of customers.
That is a lot.
- And your point is, the chances are more here. - It's 30%.
[dramatic music playing]
If our failure rate of 0.3%
becomes 4%,
- then our business will end in a month. - It will end.
Down to zero!
I understand that the Fill rate is a challenge.
It is a challenge for ONDC as well.
But what we are saying is that the Fill rate
which used to be around 75% earlier,
had come to around 85% until last week.
Processes are being developed.
There are early adopters.
Around 20,000-30,000 transactions take place daily.
You can say that it is similar to
UPI only offers digital goods.
- Yes. - It is only digital goods.
There are physical goods involved here.
You have to connect six people
and there is failure at every level.
Who will take accountability?
Customer support processes have already been developed by the ONDC.
ONDC is not taking accountability.
ONDC is back end.
We are following the processes they made.
What will happen if there is no Fill rate? How to build this?
Your pitch is that if
ONDC is successful, your business will thrive. Correct?
It will definitely cause a bump. I agree with that.
What do you both do?
- I am the CTO. - I am COO.
I am the CEO.
How did you meet?
We met on ICQ.
Neeta and I are husband and wife.
- Lovely! After a long time, I heard ICQ. - I know.
Alok and I met each other through a mutual friend.
You've been running this business for how long?
It's been two years now.
How much money have you invested?
- We have raised three rounds. - Oh my God!
When we initiated the business plan level
in early 2021,
I embarked on my first major venture which was a prepaid wallet
through TikTok influencers for a share in revenue.
Unfortunately, that business suffered
during lockdown due to the ban on TikTok.
That's when
we went back to the drawing board to see
what other major problems can we solve.
- I have two questions. - Yes?
- First, you took the funding of Rs. 13.5 crores. - Yes.
How much is remaining in the bank?
As of now, we have Rs. 3 crores in the bank.
and some on marketing, seller acquisition and so on.
Second question. How do you charge
and how much revenue have you generated as of now?
Currently, our last month's revenue was Rs. 3 lakhs.
This revenue comes from services. It's early revenue.
- And we still consider our business as pre-revenue. - Of course.
We're hoping that in 3 to 6 months from now,
this revenue will multiply by at least 10X
Our revenues are such that because we have started,
we also offer delivery services to sellers.
We earn revenue from that as well.
We charge a nominal fee... As you said,
we take a subscription of Rs. 100 from the seller and not Rs. 1,000.
These small revenues have just started.
But this is too early. In the next 3 months, this graph
- will take off. - I have made my decision.
where first, you have a lot of competition.
Others will also do what you have planned.
Second, ONDC's traction and all.
- Too many unknown variables. - Okay.
Rs. 80 crores is not justifiable for me.
- And I can't downvalue you because you have completed 3 rounds. - Yes.
So, that's not respectful to the prior investors. I am out.
Thank you!
In this category,
the biggest moat
that leading companies have is capital.
It's slightly challenging
when a big company is pitted against a small company
when it comes to capital. We are Sharks.
But there is one Blue Whale in India.
And that is Jio.
And it is
one of the priorities in their agenda
- to digitize these 2 crore retailers and bring them online. - Right!
And cataloguing their products.
And they will eventually enter ONDC
- until it reaches around ¤2 billion. - Yes.
- So, to fight this battle... - Yes.
With Rs. 1 crore capital
seems challenging.
Because capital is the biggest moat you have
- in this category. - Rs. 1 crore... Yes.
I am out for now.
- But I really hope you can give them a good fight. - Yes!
I have reservations about the adequacy of the technology.
Workflow automation, SaaS,
and so on will be carried out by you. Anyone can do that.
The only benefit I can see
- is that you are early stage mover on ONDC. - Yes.
A valuation of Rs. 8-10 crores would be justifiable
if the equity ranged from 5%-10%.
Absolutely! It is overpriced.
For me, this is more of an ONDC pitch
than your company's pitch.
I am out.
- Your entrepreneurial skills are truly commendable. - Thanks.
I believe you will pivot and try
to do something or make some changes.
I don't think it's worth investing for a valuation of Rs. 80 crores.
So, I am out.
- Okay. - Okay.
- Alright, guys! All the best. - Thank you, Sharks.
- Thank you.
[theme music playing]
What's the problem?
They will appear before us for sure.
- Look! - It's over there.
'Greetings, Sharks! I'm Kyra.'
'- Aman, you followed me till here!' - [Aman chuckling]
'Looking cute, Aman.'
- Ooh! Very quick. '- I'm signing out now.'
'I'd like to invite two cute boys'
'who are my creators.'
[theme music playing]
We believe
that virtual humans are the next step of digital evolution.
In the next few years,
Kyra and other virtual humans like Kyra
will play the roles
of our friends, teachers, assistants and entertainers.
Nowadays, we humans
spend our maximum time in the virtual world.
Don't you think that the virtual and real world have merged?
Kyra belongs to this world.
Kyra is a superstar.
- She has more than 2.5 lakh follower on social media. - Ooh!
She has been in the news all over the world
to make her the world's biggest virtual influencer.
Sharks, we need your help
to bring this virtual world
and Kyra's friends into the real world.
Himanshu and George, welcome to Shark Tank.
- Thank you so much. - Thank you, Aman.
Her name is Kyraonig, right?
- Kyraonig. - Kyraonig.
Correct? boAt has worked with you.
Sir, you started this service with us.
We did the first virtual influencer programme in India.
That's why she called you cute. Did you think you're really cute?
[laughing]
They were paid by you.
Can you edit this? I don't like her. Can you remove her?
Can you make her virtual, please?
Before we discuss it,
please tell us why you started it.
How did you get this idea? How do you two know each other?
I have stayed mostly in Chandigarh.
I pursued engineering at Panjab University in the IT stream.
I joined MICA in 2017.
influencer marketing and social media marketing.
In 2021, we came to know
about a famous virtual influencer in the US, Lil Miquela.
- She has 3 million followers. - That's right.
Similarly, Imma Gram in Japan has 4 lakh followers.
So we wondered why nobody in India was doing it.
India has a great social media power.
India has the highest number of Instagram users.
So we searched for the best designers in India.
We wanted to maintain international quality.
We didn't want to do shoddy work.
So, I consider myself Gujarati.
I've always had a knack for entrepreneurship
and worked in the founding teams for many of the small start-ups.
I always wanted to do something innovative and creative of my own.
I felt that this could be the next big thing.
That is why we started doing this.
What type of company are you?
Are you an intellectual property company
that creates different characters and presence and will monetize it?
Or are you making technology that will make these characters?
We wish to become an intellectual property company.
We've used the most advanced technologies in AI yet
to create Kyra.
Do people assume her to be real and follow her
or do they know she's virtual?
We believe in disclosure.
Nowadays, AI is a really advanced technology,
but also very dangerous.
A lot of ads run that can modulate voice
and impersonate people.
The first thing in our bio is this is a virtual human
so that it is disclosed that this isn't a real person.
- You increase its followers through engaging content. - Yes.
When it reaches a certain limit, you monetize it.
- Yes. - That's your business.
- Yes. - Okay.
Every influencer stands for something.
They have an image, right?
What is Kyra's identity?
At first, we penned about over a hundred character traits
for the person we wanted to create.
Post this exercise, we came to the conclusion
that first, we'll create a fashion, fitness and lifestyle influencer
and that's what Kyra is.
[upbeat music playing]
Honestly, she isn't as realistic
as the international virtual influencers.
What were you expecting?
- A normal influencer? - They don't look animated.
If you look at some of the international influencers,
it looks like a real person.
It looks like everything is three-dimensional.
Let me explain Lil Miquela's technology.
They use a real person.
The video is also real, they just swap the face.
have been around for years.
Like Spider-Man and Batman.
That's an insight for us.
If people can connect with a completely fictional character,
we could make them like influencers too.
That was why we made Kyra.
I agree with your point. It is currently animated
as the technology is still fairly new.
The technology is globally accessible.
Why can't you make it more realistic then?
We know there's a scope for improvement.
Maybe, we're 70 to 80% there.
Will you ever be able to augment Kyra with reality? - Yes.
Let's say a restaurant wants to come to you for an ad.
Can you make Kyra sit inside a restaurant,
have food and say, "Okay, this food is awesome."?
Definitely, sir.
We could show you an ad for Amazon Prime.
During the live show 'The Peripheral' on Amazon,
they had chosen Kyra for its promotion.
We've placed Kyra in the live show shots.
'Today, I am going to check out The Peripheral.'
'What is it?'
'Cutting edge VR for you.'
'Maybe it's like the peripheral.'
'Harness in that body isn't...'
This is better.
She's placed inside a live show setting.
A very short ad,
but to answer your question, yes, it's possible.
Kyra is a digital asset
keeping the story intact,
keeping all the conditions that this is how it should be used.
We wouldn't do it time and again.
Wouldn't its novelty fade gradually?
You're only looking at Kyra from this lens
which is why you feel the novelty will fade.
We will continue to make virtual IPs.
We're going to create more IPs in different content niches.
For example,
what about a virtual Sima Aunty for Shaadi.com?
Will you make something else after Kyra? Will you have a library?
We want to make a connected universe of virtual influencers.
After Kyra, we made Sravya, who is Kyra's manager.
She's a virtual influencer on LinkedIn.
where a Brand Manager can discuss and brainstorm with Sravya
- about what ideas Kyra can work on. - Crazy.
Using LLM.
I don't see the persona!
I think you're selling her as the first virtual influencer.
You're not... The persona is not coming through.
I believe the 2.5 to 3 lakh followers
are following her only out of inquisitiveness and intrigue,
not because they love her persona or the character.
It seems to me like you're working on discreet pieces.
The tasteful storytelling part of it
- is the real thing that you need to create. - Yes.
You need to make something like the Marvel Comic Universe
with a network of influencers.
There has to be a story going on.
It was a science fiction novel called Tulsi.
Up until my MBA college, I used to write books.
I've written poetry and fiction. George is a musician.
We have a creative inclination.
Due to limited resources...
We want to make Kyra sustainable.
So, our branded content is higher,
- but... - I don't get this. No!
If this is your background,
you should have done storytelling since day one.
It has been one to two years, right? - Yes.
You still have not started storytelling.
When do you plan on starting the story?
What we want to do is
create Kyra's life story with branded posts.
Kyra has a backstory which we know.
Kyra belongs to a particular metaverse world.
Her memories got wiped out when she came here.
We wish to build all of that through a storyline.
All of this, because it is CGI production,
it requires money to create.
How much did boAt pay you?
We charged boAt Rs. 16.5 lakhs.
What was its cost?
- Rs. 10 lakh for that particular video. - Yes.
Is your content production outsourced?
and learn the technology and make it yourself?
Had I not known tech, Zomato would not have existed.
That is...
May not be true but... I don't know.
- It wasn't possible. - [Sharks laugh]
He almost said it, but didn't.
It wouldn't have been made.
Sir, we have a good understanding of how this model is made.
To create a character from scratch,
there is just one grey ball on the screen.
The character needs to be made using sculpting.
It is actually a work of art for which we need...
There are barely a few people in India who can do it
because you don't get a lot of money for it in India.
So, we've outsourced some of the work.
All of our designers are on exclusive contracts with us,
and based on projects, we keep outsourcing.
Do you work out of a garage?
- From home, sir. - Home.
Who writes for Kyra?
- We do, sir. - Okay.
Suppose you need any fashion tips,
send any fashion-related photo, she will see it and comment on it.
The fashion tips come from you! Sorry!
That's exactly the point.
- That is all GPT... - That's what I'm saying.
Look. It's a different thing if we want fashion tips from Kyra
but end up getting them from you.
We will train the model with the latest trends.
We're using AI to build Kyra's DM system
where Kyra will actually be able to reply.
Is that outsourced too?
No, sir. We have hired a head of AI recently.
As far as I understand, you...
You want to be the Disney of the future.
You are absolutely right.
- That's your aim. - That's what we wrote on a piece of paper
when we were thinking of a vision.
Okay. So, I can read your mind.
Yes. [chuckles]
- Disney wrote its business plan on a napkin. - Hmm.
On a paper napkin with amusement parks, with movies,
with merchandising.
What did you write on the napkin?
The possibilities are endless.
If we tell you about the various possibilities,
you'll think we're faking.
- But... - No, we want to hear them.
Crystallise your vision for us.
If you don't do that, then who will?
Research has already begun in this field.
It is in the early stages now.
So, that is our actual vision.
A lot of companies are working
- on autonomous influencers... - There are a lot of players.
So, the thing is, ma'am,
this technology will be democratised in a few years.
Anybody will be able to do this.
The brands already existing then will stand out.
That's why we're making Kyra and the upcoming VIs a brand.
As soon as we unlock the technology, all the VIs will be autonomous.
If you even make 100,
do you think they would get enough business?
Ma'am, we have two business models.
No, ma'am. The designers work on the specified directions.
You tell them it should look and feel like this and they make it,
but that direction needs to come from us.
What the brand voice would be and what feel it should give out.
If we could give it a human form,
the brand would be able to communicate very effectively.
Tell us about your sales.
Our overall sales are Rs. 82 lakhs.
or do you get more than this in some months or nil?
We don't have a predictable revenue now.
We work on a project basis.
Some months, the revenue is high, and other months, not so much.
I'm out.
For me, you're a trading agency.
You're getting business
and someone else is creating the content for you.
Someone else is making it for you.
You have a big vision,
but the basic which is Kyra's personality,
you haven't developed that.
This seems superficial to me at the fundamental level...
- Okay. - For me to get excited.
And for that reason, I'm out.
What's your profitability?
Out of our Rs. 46 lakh sales,
- Yes. - Wow.
I personally feel that this has lost its novelty.
I've observed that copycat brands have done the same thing.
It's no use to me. I'll look for something new.
What else can I do?
Firstly, you need to bring constant innovations
and bring something new.
Secondly, you need a solid tech co-founder
to help you better market your upcoming future technologies.
So, get a solid tech co-founder
Build it up as a business for Futr studios.
- So, I am out. - Got it, sir.
You're quite early on.
You really need to show your progress to investors
in one direction.
Either the content side,
where you create influencers with an edge.
Their content,
one's is humorous.
The other one has drama.
Something engaging,
which in spite of the person being a virtual influencer,
people will follow.
that you're the first in the world to bring all of these advancements
which is why companies would want to work with you on latest innovations.
It is hard to tell which direction you might head in
depending on what your innate skill is.
That is not visible through Kyra.
For that reason, I am out.
Three Sharks are out. What will you do with Rs. 1 crore?
I tried in many ways. I asked you where you'd invest.
Your reply was hardware, VI and a team.
You never once said that you wanted to invest
to build out the stories of the future,
to build out the universe.
You're investing elsewhere.
It's not consistent with what you want to do.
That's the reason I'm out. Good luck.
Okay.
- You're not a business, you're an Instagram handle. - Hmm.
Okay?
These companies need to be built vision first.
That's how this gets built.
- Get it? - Yes, absolutely.
- I'm out. I hope you got it. - Okay.
Sorry, guys. All five Sharks are out.
Try to do something good in the right direction.
If you make such a company in India, we'd feel extremely proud.
- Good luck. - Thank you so much.
boAt will continue to give you business.
- Thank you, Sharks. - Good show.
Welcome to Ask The Shark.
Joining us today on Ask The Shark
is the Co-Founder and CMO of boAt, Mr. Aman Gupta.
- Welcome, sir. - Thank you.
Sir, honestly speaking, I'm really excited
for this Ask The Shark.
It's the first time someone has asked a question anonymously.
Sir, here is Mr. Anonymous's question.
'We have a profit of 30% in our business.'
the compliances there are really important too.
You should not do all of this.
Avoid it as much as possible.
Firstly, you're evading taxes.
You're using the services provided by the government.