[theme music playing]
[screeching]
[music playing]
[music intensifies]
[music concludes]
'When someone is young,'
'their dreams often change within two years'
'about what they want to become.'
'There was a time when I dreamed of becoming an astronaut,'
'another when I aspired to be a newsreader.'
'I also envisioned being a food critic at one point,'
'and even a travel blogger.'
'But as I grew up'
'when I became a teenager,'
'and went to college,'
'my true aspirations became clear.'
[music playing]
'That I want to pursue entrepreneurship'
'and build companies.'
'I think there was always an inner voice from the beginning,'
'urging me to create a business,'
'something impactful,'
'something I could call my own.'
[music playing]
But actually, the line goes up and down.
It goes in every direction.
And that is how you reach the top.
'My journey as an entrepreneur'
'is like a phoenix.'
We've changed our business model around six times
in our entrepreneurship journey.
Every time, our business
was reborn in a different form.
[music playing]
[theme music playing]
[music continues]
- Sharks! - Yes, sir.
- India is the world's fifth-largest economy. - Hmm!
And today, we are known worldwide not just for our IT
but also for our music and movies.
#LoveDiljit
But among the world's top 100 global brands,
India only has one global brand.
Sharks, the time has come
for us to move from 'Incredible India'
to creating 'Incredible Global Brands.'
That's why we bring you NOOE.
It's a bold dream
to make people feel creative and productive
all around the world.
Sharks, NOOE is a premium lifestyle accessories brand
Such as minimal Scandinavian design...
And with this mindset, we launched our first collection,
CONFIG 1 DESK SETUP, which includes five products.
from clutter to clarity.
And should I share something interesting?
This product has won the Red Dot Design Award.
We've been able to deliver NOOE in more than 40 countries.
We are available across nine countries in retail stores.
the most prestigious retail store in London.
and make NOOE the most loved brand in the world.
Which is why we are raising Rs. 50 lakhs
for 1% equity.
- Oh! - Sharks, we bring you NOOE,
a love letter for our modern-day work life.
- Amazing! - Thank you.
Okay, Neetica and Piyush, welcome to Shark Tank.
What does this brand NOOE mean?
And why is it spelled like this?
NOOE comes from Never Odd Or Even.
Which is a palindrome.
Oh my God!
And there is symmetry in our brand, aesthetic and design values.
So, there is symmetry in our name as well.
Very interesting. This brand seems like
it's not quite suited for the Indian market.
Anupam got a sense of Japanese style from this.
- Japanese-Scandinavian. Minimalist. - Japandi, as they call it.
It is not tied to any specific country.
Got it. Thank you!
How do you both know each other?
I am an engineer by education.
I worked at Accenture and Price Waterhouse Coopers in New York.
I returned to India and started a company in 2009
that focused on corporate merchandise
and design development. It was essentially a B2B business.
That is when I reached out to Neetica
because she had been making designs in Copenhagen for five years.
I checked her portfolio on Behance. It was popular.
That is how we met
and our working chemistry was quite powerful
because our skills are complementary.
What about you, Neetica?
I graduated in 2018
Aspekt Office,
and Sebastian Hammarberg Design Studios,
That was a huge validation for me at the time
because the studio is almost 30 years old.
I was their first Indian designer.
Whenever I visit Copenhagen
I see my lamps in window panes
- and every home. And it's surreal. - That must be a nice feeling.
I felt like I wasn't gaining anything from this.
I wasn't getting any royalty, and my name wasn't anywhere.
[laughing]
They always mentioned the name of the Head of Design.
So, I thought it was time for me to go home
and do this for my country and myself as well,
where I get recognised for this.
What is the structure of your private limited company?
Our equity distribution stands at 55% for me,
- and 11% with Neetica. - Oh!
And 6% allocated to ESOP
for our initial employees.
The 11% share was given to my ex-partner
because we incubated the business
- and he invested money. We did that. - Okay.
- We raised 17% from angels and family friends. - Okay.
How much capital have you raised so far?
Rs. 3 crores.
- You raised that from investors. - Yes.
- Here! - Is this for me?
- Yes. - This is for you, Vineeta.
- Okay! Thank you. - Thank you.
- Is this for me? - Yes.
- It's a keyboard palm rest. - Palm rest. All right.
- Thank you. What is this? - And this is...
This is a Bento Jot.
It looks expensive.
You gave him a Bento Jot, and a bento box
is traditionally used to eat Japanese food.
The bento box, in which we eat food,
- is inspired by Japanese culture. - Yes.
So we thought, why not take this concept and apply it to stationery.
Guys, this packaging
- and this product quality... - Is incredible.
- Is this wood? - It's lovely!
- Black oak. - This is fantastic. This is exactly what I wanted.
- So, thank you. - We are giving a premium feel to stationery.
We've designed these products.
- Lovely designs. - And we... Thank you!
And all the details are our own.
For example, we use munken paper.
Actually, it's inspired by a pencil.
I love clean aesthetics. This is so cool.
- Thank you! - Even how you designed the paper clips...
- Yes. - I know! That's your logo.
- Put your seatbelts on. - Okay.
We are all ready to hear you out. Please start.
How much is this for?
The laptop sleeve is for Rs. 3,400.
- Not bad. - Rs. 3,400.
Bento box?
Bento Jot is for Rs. 11,000.
And the notebook and pen?
The diary is for Rs. 1,500.
And the pen is for Rs. 3,500.
- How much is this for? - Rs. 2,499.
- And this? - Rs. 4,500.
This is not bad.
- And CONFIG 01 and CONFIG 02? - CONFIG 01 is for Rs. 15,000.
And CONFIG 02 is for Rs. 17,000.
Is this Indian pricing, or do you sell for the same price abroad?
- In Harrods, the same product retails for Rs. 40,000. - What?
Rs. 40,000?
We provide Harrods with a markdown, and they take a 60% margin.
- They purchase the products directly from us. - Right.
We don't take a commission.
significantly reduce our profit margins.
Where are your products made?
In India and China too.
In our first year, our revenue was Rs. 1.3 crores.
In the second year, 2023, our revenue was Rs. 2.7 crores.
And this year, we will finish
between Rs. 5.50-Rs. 6 crores.
What is the total revenue you've earned up until now this year?
It's Rs. 1.5 crore.
You have only five months left. How will you make Rs. 4 crores?
Our growth...
The growth in our exports take place in the last quarter.
What are the sales figures in India?
This year it will be 70% in India.
And we will export 30%.
Last year, our export was 60%
- and 40% in India. - Why is it changing so much?
This year, we've been conservative to protect our margin structure.
And all the inventory we deployed
was in India.
- What was the gross margin on this? - 40%.
This is low.
What is the burn rate for the last three years by year?
Sir, in FY22-FY23, the burn amounted to Rs. 50 lakhs.
- For FY23-FY24, the burn was Rs. 1.4 crore. - Okay.
This year, up to this point, our burn has been Rs. 50 lakhs.
So, the total burn amounts to around Rs. 2.5 crore.
Please provide a breakdown of the sales channels.
How much is from B2B, B2C,
- online, and offline? - Yes.
Of our sales this month, 60%
has come from the B2B channel.
The remaining 40% is split,
with 10%-15% from marketplace retailers
and the remaining 20% from our own website.
Do you consider Harrods as B2B or B2C?
We classify Harrods as a channel retailer.
- That is just 15%, right? - Yes.
So, is B2B purely corporate gifting?
- Yes. - Oh my God!
The numbers are a little bit here and there
from a channel split point of view.
Because our size is small and our inventory deployment is very little.
Do you have an MOQ issue with your suppliers?
We have an MOQ issue with our suppliers.
We have to pay an advance 60 days before the inventory is produced.
- How much is MOQ? - Around Rs. 1,000 per piece.
- Whoa! - At sale value
- for a year... - Your inventory amounts to Rs. 2.7 crores.
You have to place an order 60 days in advance,
- requiring accounts payable since an advance payment is needed. - Yes.
Therefore, your accounts payable is minus 60 days.
This means your working capital is significantly affected.
- No! New product lines... - No!
- With a working capital... - That's death.
- That is death! - It will only make it worse.
[pensive music playing]
- Piyush, your cash is over, isn't it? - Yes.
We do have cash in the bank.
- How much? - Rs. 22 lakhs.
- That is nothing. - That might be from your pocket.
- Correct. - Have you taken any debt recently?
- We both have debt in the business. - How much?
About Rs. 1.2 crores.
- Whoa! - Wow!
Neetica and Piyush, your business is in a challenging position.
You are running hand to mouth for now.
I'm hesitant to invest in your business.
- I want to invest. - Sure.
But help me come to the other side.
Overall, for the next six months, our focus
is to push our new products.
The revenue was generated exclusively from one collection.
As you know, building a premium brand
for product development
- and supply chain... - It requires significant investment. No doubt.
We made the mistake of not raising enough money.
- You are doing the same again. - Right!
You are seeking to raise Rs. 50 lakhs
while operating at a financial deficit.
We want to raise Rs. 8.5 crores overall.
Why didn't you come and ask for Rs. 2 crores?
We can still... We are open to that.
- You wouldn't give it. - That's not the crux of the matter.
If we know that they don't have money,
it seems unlikely that anyone would be willing to invest Rs. 50 lakhs.
So, we have conversations happening.
I know you don't want to hear that again.
But launching new products is actually
a really powerful thing for us.
We have a strong customer repeat rate.
The brand we've established with our customers fosters engagement.
Piyush, the cost of your new product launch
is between Rs. 30-Rs. 40 lakhs.
You can't make more products than this.
You are in the pit,
and with each launch, that pit will keep getting deeper.
It's not that we plan on launching 50 products.
Our range collection will remain the same.
You’re not achieving growth
with the same products.
As you're having to rely more and more on new launches.
The old products aren’t generating orders anymore.
International retailers have placed almost no orders.
- Yes. - This clearly means there's no sell-through. - Yes.
For instance, Harrods hasn’t placed any orders in six months,
which means they still have unsold inventory.
For them, this isn’t a sustainable brand
- because the order frequency should be once a month at best. - Yes.
Neetica, I believe you are the source of energy for this company.
What is excellent about this business
are the products and the design.
- Thank you! - On the business front,
Piyush is building an unchallenged business.
Because of that, there have been
- many issues in this business. - Correct.
Why didn't you restrain him?
To be very honest,
I was really young when this business started.
And no one from my family runs a business.
No one had a business.
I am learning a lot about business from Piyush.
There are times
when I can't instantly come up with questions.
But when it comes to design... You asked whether we fight.
There are fights only when it comes to designs
because I am equally good at it.
Depending on my understanding,
I always tell Piyush that
something doesn't feel right or it's not good.
It's like I'm learning day by day,
I'm starting to get better at it. I'm reading... - Nice.
Neetica, what do you think is going wrong with the business?
Ah...
I think we are trying to do too many things at the same time.
That is clear.
But what is that leading to?
I think we are not focussed.
You haven't found the right PMF.
When that happens, there's a lot of temptation...
I've seen many startups,
and I hear this every time,
'We're launching this new product, and it will solve everything.'
- Silver bullet. - Right!
Didn't you feel that if you had stepped back
and focussed on delivering a major hit,
it would establish credibility?
And then build a business under the shadow
of that success.
You should target an overseas market and establish our supply there.
When we first started,
we had considerable sales of CONFIG 01 overseas,
while our sales in India were relatively low.
I believe we're now seeing
a growing appreciation for it in India as well.
There's a lot of repeat rate.
So, I think it's time for us to focus fully on the Indian market
and try to sell the products we already have.
And as you mentioned, we'll try
to make our flagship product and continue selling it.
Okay, guys. It was a pleasure meeting you.
I believe you are the right fit
for making such a product and brand.
What I appreciate most is your clear positioning
as a premium product.
You are not trying to traverse
all aspects of the pricing ladder.
The issue is that I believe
you should have raised your pricing.
Currently, the gross margin is 40%.
You should not be working below 85%.
You plan to build a business worth around Rs. 500 crores, right?
It's okay even if it takes a dip for some time.
But gradually, what will happen
is that you'll find the customer
or the customer will find you.
Your margin will grow, profit will increase,
money will come in for marketing
and inventory costs will be covered.
Gradually, you will start building the brand further.
Right now, you have entered a vicious cycle in your business.
- Secondly, limit your selection. - Okay.
And finally, restrict your channels.
In your current three years of operating history,
this is the most promising and let go of everything else.
For these reasons, today I am out.
- Thank you! - Thank you!
One major mistake you made was raising funding.
Creating a luxury brand under the pressure of growth
means you'll have to burn a lot of money,
- which is what you're starting to do. - Sure.
So, I think you should tell your cap table,
'I'm going to create a luxury brand, and you'll be proud of me.'
'We'll see the returns in 10 years.'
But for now, don't get caught up in the pressure of growth.
All of us will be rooting for you so that
you become one of the first. Just like Sabyasachi
is to the world,
NOOE should also be
- a luxury brand from India for the world. - Thank you.
But it can only be built with patience.
- I am out for now. - Thank you!
You said you have a bold dream,
and I agree, it truly is a bold one.
- I don't even think India is ready at these price points. - Hmm!
You won't be able to reach a large market
in the short term even if you want to.
So, I think you need to rethink
whether to focus on a separate market
or whether you should handle both B2B and B2C simultaneously.
But I am out today.
I think maybe the challenge in the business
is the fact that you are from B2B.
But I doubt this brand is ready.
Currently, this is a good product design
which you are selling in the B2B market
and you've managed to get a display in Harrods.
So, you have to work a lot
to make the brand.
Second, I think if you put your energy in the right category,
your results will be very different.
There are brands in India, there is Mokobara.
But you can make a premium brand with your design skills.
We can talk if you are interested in that.
- We are happy to get an offer. - Yes.
One option is that you can take Rs. 3 crores from me
and return all the money to your investors.
We will be out of cash.
- Right! - We will talk about cash later.
That's a good starting point.
We definitely are considering that offer strongly.
- Let me think about this offer. - Sure.
I haven't given much thought to this offer yet. Give me five minutes.
Neetica and Piyush, solid design.
I love designs.
Do you know that the problem is here?
You made a passing statement
and you mentioned that both of you fight over designs.
No one can fight with you over your designs.
Because that is your job.
And sir, you are not doing your job well.
She excels in design,
but unfortunately, Piyush,
there are some business challenges.
Who owns the moulds?
- We do. - We own it.
- The company? - Yes.
I would like to give you an offer.
We'll change the cap table.
I'll give you Rs. 3 crores
for 50% of the business.
And the rest 50%
will be 20% with Piyush
and 20% with Neetica and 10% ESOP and investors
[intense music playing]
Rs. 3 crores for 51% of the company's primary capital,
with no change in the structure.
He copied my offer. But
don't you think the cap table should change?
I agree. It should change.
Are you comfortable with a 50% dilution in equity?
I need to discuss that.
Definitely, the amount of money
that is needed is not enough.
Just from a growth capital point of view,
if you take 50%
and we raise more money later,
our dilution will be much lower in the future.
At such a small stake, aiming for a long journey of 10%,
that's not enough skin in the game for us.
Point!
First, you need to decide who you want to partner with.
It's not like I really want to invest Rs. 3 crores
- because I need equity in this business. - Yeah!
So, why 51%? It's a controlling stake.
I am making it very clear.
To help build that brand.
Rs. 3 crores is not enough.
You will need a substantial amount in the future.
- This is a very risky investment for me. - Agreed.
If you think my involvement
will benefit you, then go ahead with this deal.
Otherwise, don't do the deal.
It's not good for you or me.
This is literally a controlling stake in your company,
so I know it's not an easy decision.
A controlling stake is when
an investor acquires more than 51% ownership in a company
and also gains control over
the company's strategic matters,
operational decisions, and the board.
Are you not willing to give a controlling stake?
So, have you rejected Peyush's offer?
Not at 51%,
but we are very happy to consider our original offer
- that was given. - I will not do this deal below 51%.
Since you don't want to give a controlling stake,
you want to run the company. I agree and you should run it.
Rs. 2 crores for 30%.
[music playing]
- Please go and decide. - Okay.
Thank you.
NOOE!
Wow, this just got interesting.
Yeah!
What are you doing?
You know what I am doing.
- I don't have to explain. - I know.
- Have you both noticed one thing? - What?
If you invest Rs. 3 crores,
they have a debt of Rs. 1.25 crores.
I am okay to pay that eventually.
- We can't give them a controlling stake. - It's too much.
That's too much ask. Asking for a controlling stake is too much.
Let's settle for Rs. 5 crores for 51%.
You could have stepped out. I would have made a good deal.
I will be out. They will accept your offer.
- I am in minority... - Why did you interfere
when I was trying to make a deal for 50%?
I don't want to be in a minority stake in this.
[music playing]
Welcome back, Team NOOE.
Thank you both for your offer. We really appreciate it.
We won't be able to make a deal from a controlling stake point of view.
I understand and I respect it.
You know, it doesn't leave us with any output in the end.
But there is a good outcome for you.
Because you guys will make a lot of money.
Because now, my skin in the game is so high.
In many ways,
- I have taken all the liabilities of the company. - Yes.
I will have to do the clean-up.
You will get a big outcome in the end.
With that same principle,
- we become employees and not founders. - Very nice.
I need a clarification. You mentioned Rs. 3 crores for 30%.
I said Rs. 2 crores for 30%.
Okay! Is that to buy out the current investors,
or is it a direct infusion where everybody gets diluted?
The cap table will completely change.
And the Rs. 2 crores for 30% will go towards the primary,
I don't want to give Rs. 5 crores for 20%.
I think this is the best I could have done for you guys.
So, do you accept his deal or not?
No!
Why don't you give Peyush a counter?
Okay, guys! So, I think you are out of options.
Thank you for educating us about design.
Neetica, do you want to say something?
No, I think we had also said that
we should give...
You guys had mentioned there should be counteroffers
for both people. So, do you also want to ask Peyush?
Would you reconsider that 51% controlling stake?
How much lower?
- 30% - No, I am sorry.
Can you increase the amount of money you are giving?
I can give Rs. 5 crores for 51%.
Look, you have to understand that this business is going nowhere.
You have a debt of Rs. 1.25 crores.
There is no direction and strategy in this business.
There is a logic behind why I am willing to invest Rs. 5 crores.
You said the business will require money.
If I invest Rs. 3 crores now,
I know I will eventually have to put in Rs. 5 crores.
So, I will commit it to you today that I will do it.
Because there will be no benefit if you dilute more in the future.
Because you have to win in the entire scheme.
- Without you, this business is over. - Yes.
You just said you won't give 51%, but now, you are willing to do so.
[music playing]
When I am giving you Rs. 2 crores for 30%...
So, I increase the value for you, okay?
Now, you are saying you don't want to give 51%.
Now you are agreeing to give 51%.
What is going on? Why are you so confused?
- For... - You... You need help.
- A lot of help. - I am willing to do so 30%.
Keep the cap table same and speak with your investor.
[music playing]
So, we would like to consider Peyush's offer
at 51% for Rs. 5 crores.
Neetica, if you want a job or do something else, let me know.
With Peyush getting into the business, the perspective of thinking changes.
He is not being an investor, he's being a partner with us.
Now, when you look at that,
it totally changes the entire game.
Because you gave me an opportunity to think in that manner.
So, which was... It was ideal for us.
Click a photo.
Don't listen to anyone.
- It's not a bad deal. Trust me. - Thank you!
All the best.
Intense!
Hello, Piyush and Neetica.
- Hello! - Welcome to the PokerBaazi zone.
- Thank you. - Where you hold the cards.
Whether it's poker or business, the tide can turn anytime.
In poker, there are three phases for revealing community cards.
The first phase is flop,
the second phase is turn,
and then comes river.
Just like there are three phases of entrepreneurship,
the first phase is introduction phase,
the second phase is growth phase, and the third one is maturity phase.
Can you share a memorable story
from your journey
that relates to one of these phases?
I think the growth phase matters a lot to us.
Because we cracked Harrods as our retail store.
That was the biggest validation which we celebrated.
If this was our hand while playing,
it would've been a full house.
- Which is the fourth-strongest winning hand. - Yeah.
I have a gift for you
- for your strategy. - Wow! Thank you!
It's a ticket to the National Poker Series 2025,
worth Rs. 1 lakh.
If you too possess the skills and strategy of a true player
and play your winning hand.
Go and download PokerBaazi app now.
'Shark Tank India, co-presented by ACKO Insurance,
'PokerBaazi and Swiggy Instamart.'
'Co-powered by Adani, and Jaguar Bath and Light.'
'And partners, Rayzon Solar, ICICI Direct,'
'Lenskart and Sofy.'
[theme music playing]
Hello, Sharks! My name is Kiran.
The family I belong to
has been making ice creams for the last 50 years.
And that was it.
In 2014, I packed up
and returned to help my family.
When I came here, I thoroughly understood
the consumers' needs and the competition,
and I expanded my family business, which was limited to just one store,
- to 100 stores. - Wow!
...of their health and is also very aspirational.
So, in 2022,
I launched Go Zero.
Go Zero is a brand
where you can find all types
of ice creams and desserts
with zero sugar and zero guilt.
[chuckles]
So, Sharks, would you like to try them?
You have been given our top-selling flavour.
- Wow! - Which is Belgian Dark Chocolate.
Anupam, since
you are lactose intolerant,
we've provided a vegan option for you.
Thank you, sir.
Currently, we have more than 30 flavours
in 8 categories.
Also, we have made it from
our proprietary sugar replacement blend.
- Number one! - Well done.
'Why didn't you invest in such a cool company?'
Won't you feel guilty then?
To free you from this guilt,
- my ask is Rs. 1 crore for 1% equity. - Phew!
So, Sharks, from now on,
zero is the real hero.
Good ice cream. I buy your ice creams.
Oh, thank you so much.
It's really good.
Yes. It tastes like it's made of milk.
- Seriously! It's very milky. - Yes.
Please tell us about the background. How did you start?
I was born into an ice cream family.
Since 1971, Apsara Ice Creams...
And then, I worked as a Software Engineer in Wipro.
In the batches of 2009 and 2011
I did my MBA from IIM Lucknow.
So, I returned from Singapore in 2014.
And, I joined my family business, Apsara Ice creams.
In 2020-21, I also saw...
had begun picking up sales.
So now, the consumers...
are realising that too much sugar is not good for them.
So, I decided...
if we want to build a new brand
then, I will have to select a category
which, in the next 10-15 years
has to pick up a lot...
You have a similar story.
After Apsara, you're here...
We didn't sell Apsara. The family business is still running.
My dad, my uncle and my brother.
They are running it.
- And, you separately launched this? - Yes, I did.
And, you have a share in that?
- No, I don't have a share. - Okay.
Kiran, will you explain this landscape a little?
A lot of companies have suddenly come up with guilt-free ice creams.
We are probably the last ice cream brand
- to enter this category. - That's right.
4-5 brands have already arrived before us.
They have brought brands with a full-fledged guilt-free category.
But, the established incumbent brands...
Naturals, NIC, Baskins...
they began launching such flavours too.
But, I believe...
that in any category...
the unique identity that any brand will have
will help them scale further.
And, a classic example of this
that I noticed in my first 8 years of ice cream journey
was Natural Ice creams.
Their product and branding...
was so sharp.
- And, their name also was Naturals, so... - Exactly.
So, with several ice cream brands
if you hear or say their names
you won't be able to pinpoint
what is that ice cream brand known for.
But, all brands, except for their names
your name is bang-on...
other than that, all brands
are adding substitutes of sugar like stevia and maltitol.
So, apart from the brand name, what is unique about the product?
Vineeta, there are 2-3 different aspects here.
Today, as sugar substitutes, we have
8-10 types of substitutes available in the market.
Some of them are artificial.
Some are natural.
Some are a mix of both.
I think, our USP in this is...
we are probably the only 100% zero sugar brand.
But, if I talk about our existing competition
they are not 100% zero sugar.
So, they claim low sugar.
N-not completely true.
All of them have a no sugar range.
So, they have a no sugar range, but, sugar ones too.
- So, your differentiative is that you're sharply focused. - Yes.
And, your identity is very clear.
- What you stand for. - Yes.
How much market share do you have in this category?
30-40% market share.
Let's remove the unorganised part.
Organised is 65%.
What must their share be?
So, almost 95% is incumbent.
I think, less than 1000 crores.
You're playing in a 1000 crore market.
From that, low sugar, and...
whatever you call this category... how big is that?
So, I will also consider those brands in this
who have zero sugar options available today.
But, the 1000 crore market that you're talking about...
must be seeing the maximum growth?
- The fastest growing segment is this one. - It is, right?
So, if I talk about the overall ice cream category...
What is the cost of their no-sugar ice cream variants
and, how much will yours cost?
In ice creams, generally...
the market sizing done by us
is divided into three price points.
One price point is the cups.
Under Rs. 40-50.
That includes Amul, Vadilal...
What is the market share of the lower funnel?
That has almost 60% of market share.
And, the one above, that you're playing at?
Almost 30%.
And, the last 10% is the ultra premium.
In low-sugar, 300 crores is the market at your price point.
Currently, and it is growing at 30%.
Can you tell us your revenues?
We launched in July 2022.
That year, our net revenue was 2.5 crores.
In 2023-24, our revenue was 11.1 crores.
And, in this financial year, we're projecting 33 crores.
- Oh, crazy! - And, we've already done 15.1 crores.
And, loss?
- Uh, we are at around - 15% EBITDA loss.
Wow!
- Actually, this is the issue with the food industry. - Yes.
Because, your gross margin must be 40-45%.
Our gross margin in today's date is 70%.
And still, 15% loss?
- So, I'll just explain the unit economics. - Okay.
After removing our GST and discount margins
we make a net revenue of Rs. 100.
but, it shows that it's because of your marketing.
But, you're spending more than you're making to acquire customers.
Today, on this platform, if I want to acquire a customer
I have to do marketing
and I have to give offers.
So, my target audience
is not somebody who just wants to have sugar-free ice cream.
I am also targeting the consumer
who wants to eat a normal indulgent ice cream.
So, for example, if you like the Magnum chocolate bar
of quick commerce to understand this.
So, sales are about 3 crores?
With GST, we sell around 4.5-5 crores on quick commerce.
Oh! So, the 33 crores that you mentioned...
That is post the 35% margin and commission
which we give to quick comm.
- Oh, that is post this? - Yes.
How much marketing do you spend on quick commerce out of 4.5 crores?
So, we spend around 45%.
Of 4.5 crores?
But, that includes marketing as well as the consumer offers.
How much is only marketing, other than discounts?
Only marketing, like, we did almost 30% in the summer.
And now, we scaled down and spent only 21% in October.
Do you feel, you have out-marketed everyone on quick commerce?
Today, on quick commerce, we have 70% market share.
that the first 100-150 crores that any brand makes
is done by holding on to any one channel.
So, if I talk about Naturals.
They made their first 100 crores only through parlour models.
Then came a brand, NIC.
They made their first 100-150 crores
only through the dark store model. They didn't have a single store.
I've seen that in the last two years
the one channel that has risen
which is very suited for this category
- is quick commerce. - That's true.
Now, today, the number two searched keyword
on quick commerce
on any platform today is ice cream.
The number one search keyword is milk.
to a range of 40-45,000 crores.
The second searched in that is ice cream?
- Yes. And, if... - And, guilt-free is sold only for 75 crores?
- Yes. - How much is the guilt-filled selling for?
You are saying, 3600 crores worth ice cream
- is selling per year on quick commerce in India? - Yes.
And, this is...
- That's where I was getting... - You've researched this data?
No, this is... I mean, it is not my data.
Look, he belongs to this category.
He's saying, this much ice cream is selling in the market.
I-I want to believe what you're saying is right.
As per your category, this is done. Because...
if it wouldn't, so many investors wouldn't enter it too.
Several investors are entering.
They're buying brands too. Brand acquisition is happening.
I am believing that your market share...
market category can be this high.
But, your valuation.
It is an actual reason to scream!
Ice cream valuation at 100 crores. Why?
He's taken funding, so, he must have calculated valuation.
When I raised my first round
it was a seed round raised in Jan 2023.
I raised 8.5 crores at a pre-money of 25 crores.
At that time, our annual run-rate was at 2.5 crores.
Later, in Jan 2024
we raised a follow-up round
- with the same investors. - Who are the investors?
Uh, so, we have three consumer VC funds.
DSG Consumer, SAMA Capital and V3 Ventures.
We raised a follow-up round with them in Jan 2024
which was 12 crores at a pre-revenue of 63 crores.
We were making a revenue of 12 crores then.
Based on a multiple of 5, we got a pre-revenue of 63.
But, in the summer season after that
our sales went up from a monthly
revenue of around 1-1.5 crores
and, we are consistently clocking revenue of 2.5 crores now.
But, Kiran, your investors...
Are they okay that you're spending so much money to buy sales?
Or, have they told you to stop a little?
Even if the investors don't say it
as a Gujju entrepreneur, I don't believe in wasting money myself.
So, what's the path to profitability here?
In our coming season...
we are projecting
that we will close this year at -5% CM 2.
I have a dream that I want to fulfil with Go Zero
and, this is the reason with which I've started.
What was the dream?
To build the biggest ice cream company in India.
Kiran! There are no questions that you are unable to answer.
Because, it is almost perfect founder-market fit.
- Founder-market fit. - So, you know everything.
What's scaring me is...
are you a little too smart?
In the sense, anyone else...
Is there room for anybody else?
- I mean... - Do you have a co-founder?
Uh, no, I don't.
I don't feel a need for a co-founder
but, I definitely feel the need for a mentor.
At the end of the day, I need to back my ability, as well.
- Perfect! So, you need guidance? - Correct.
You already have that with DSG, SAMA and V3.
The way I look at it is...
uh, consumer VC funds
have a suitable modus operandi.
But, uh, these are not founder operators.
So, the guidance and the journeys that you guys have seen...
The way you have scaled your respective businesses...
I am pretty sure there is a lot of value to be derived there
which a consumer VC fund cannot give me.
Okay, I'll make you a guilt-free offer.
What I love is clarity of thought.
And, your understanding of the market is excellent.
One problem is, you're a 75% market leader
in a market which is very small.
You'll have to solve that
but, I'm sure you'll figure it out as you're very sharp.
So, my offer to you is 50 lakhs for 0.79%
which is 63 crore valuation.
And, 50 lakhs debt
at 12% interest rate for 3 years.
[chuckling]
So, my offer was, actually, very different.
I wanted 5% of the company for 2 crores.
So, lesser valuation than what you last got.
And, this is conditional.
If you're doing another round of at least 10 crores.
And, I think, there are a few overlap areas here.
It will be uncomfortable for
the founder of NOTO and you, if I invest here.
- Today, I'm out. - Thank you so much, Kunal.
I think, somewhere, you're into intense marketing
raising revenue, raising GMV, lot of companies.
I have 15 years of experience too. I've made that mistake.
Uh, some people revive, several companies
don't get a chance to revive.
And, very good companies and founders
are unable to revive, because, when your costs rise that high
and, there's a mad rush.
'We had a 70% market share.'
'How did we reach 50? I have to push the money.'
Right? And, somewhere, I feel...
you are among them.
For these reasons, I am out right now. Best of luck.
Thanks, Peyush.
Kiran, ah! I think, we don't have
as much knowledge as you about the product.
As you've been selling this since you were a kid.
I think, you've built a good brand, Go Zero.
It's very clear branding, about what you do.
But, you want the outsider perspective too.
I agree, investors cannot give that.
Founder-investor is different from these VC investors.
I personally feel, I can help you.
But, your valuation makes me scream.
Uh, so, I'll give 1 crore for 2%.
[tense music playing]
Thank you so much for the generous offers.
Aman, I have a counter offer for you.
Uh, can we do this at 1.5%?
[suspenseful music playing]
It's a little less than my previous round.
Okay, do it.
Less than that?
That's all you want.
It's a little less, but...
Not much difference between 2 and 1.5.
So, the hero...
- is here! - Deal done!
[laughter]
and, most importantly, I think
nobody understands this phase of marketing and D2C better than him.
So, while every Shark was an equally important pitch for me,
I think, I'm very happy that I received a cheque from Aman.
Congratulations, sir. How was it inside?
It was a fantastic experience.
I think, 'dreams come true' moment for me.
And, very happy to get the offer from Aman.
You wanted Aman or someone else?
I wanted all five.
But, if I had to choose any one of them, I think
I'm glad the marketing guru is with me.
Oh, man! Brilliant, excellent!
You know, you were getting the Sharks to taste your ice cream there
and, my mouth was watering as I watched.
And, I immediately ordered it for myself on Swiggy Instamart.
See, it's here in 10 minutes.
- Wow! - Yes! You're doing such a noble job with ice creams.
It's my favourite.
What is better than Go Zero ice cream?
Getting Go Zero in ten minutes from Instamart.
Wow! Very nice.
I'll make you pay for it. You're using me for your ad.
Our parents stopped us from eating ice creams.
Your family business was ice cream! Your family didn't stop you?
Ice cream was breakfast, lunch and dinner for me.
He had the excuse that...
he was contributing to his dad's business.
- By buying ice cream. - Exactly.
Friends, I am going to eat this.
You don't wait either, go to Swiggy Instamart right now
and order his products, which are available.
- And, they'll be there in 10 minutes. - Of course.
Order now.
[theme music playing]
[gentle music playing]
Greetings, Sharks.
If there are snowy peaks covered with white sheets in front of you
if you have a cup of fresh kahwa filled with saffron in your hands
isn't that like experiencing the heavenly Kashmir?
But, this white layer of snow is melting.
And, our heaven is being destroyed.
During a few months in a year,
our air quality index is above 350.
...cover a distance of less than 5 km.
That means, our e-bikes can cover that distance too.
And, we saw the need and opportunity here
to give a green solution to Kashmir
And, that's how Curve Electric begins.
more than 1.5 tonnes of carbon emissions.
Meaning, we...
created an impact equal to planting 7,200 trees.
like Simla, Dehradun and Manali and...
20 more campuses like
is 50 lakh rupees in exchange for 5% equity.
Sharks, only one heaven remains, let’s keep it intact.
- Wow! - It’s lovely.
Tell us about yourselves. How do you know each other?
We are childhood friends, we were neighbours.
We grew up together.
I did my MBA in Finance.
He completed his MBA two years after me.
How did you two feel the passion to build a start-up?
If you remember, the COVID lockdown ended in 2022.
So, people were travelling a lot.
So, there was a record inflow of tourists in Kashmir that year.
But, our city could not handle so much traffic very well.
[pleasant music playing]
Srinagar is called 'Jannat-e-Benazir' by us
which means, Paradise.
Tourism has always been a booming industry.
And, recently, connectivity has improved a lot
between Kashmir and the rest of the country.
And, after the COVID lockdown, it has multiplied by many times.
After 2022, we saw that...
our air quality index is continuously falling.
Which is the first indication
that we are moving towards over-tourism.
Air pollution has a lot of reasons.
One of them is also...
the smog which is developed, especially in the Kashmir valley
due to various factors, especially in months of November and December
which are very difficult for us in terms of air quality.
It deteriorates rapidly.
People begin burning wood piles for charcoal.
Then, there are emissions from vehicles.
There are emissions from industries, as well.
So, all these together create a deadly combination.
When we were kids...
there used to be a clear blue sky.
Literally, you could see in Srinagar why Kashmir is called a valley.
Suddenly, one day, we were a few friends sitting together
and we were just having a cup of coffee.
And, we suddenly realised, all that is gone now.
[mellow music playing]
The mountains can't be seen now.
You can't even see beyond a kilometre or so.
Now, it's become really uneasy to breathe.
That's when we heard about AQI for the first time.
And, we checked out how much our AQI was.
And, it was worse!
Then, we learned in research that in 2016
we were the tenth most polluted city in the world!
And, that shock somewhere had a deep impact on us.
Because, this has always been our home.
When your home is in trouble
no outsiders will come in to solve it.
So, we took the onus on ourselves
and, we thought, let's do something
to let our Paradise be a Paradise.
So, four friends sat together. Where are the other two?
- They are with us. - Part of our core team.
- They have equity? - No.
- So, only you two do? - Yes.
How much? 50-50?
- Yameen has 57%. - Okay.
And, I have 33%.
Is that why he talks more?
[laughter]
Our two incubators from GIF and NIT...
They're there too?
- They have 4%. - Okay.
And, the VCs and Angels from recent fundraise have 6%.
Where did you do this?
One is an early stage VC fund.
And, several Angels.
Explain a little about Curve Electric.
Curve Electric is a public e-bike sharing platform.
We have 11 docking stations in Srinagar city.
A little different from the ones you see in normal bike sharing.
Usually, what happens is, front-end is completely automatic.
So, if Peyush, you come to Srinagar and want to use our e-bike
you have to go to any one of our docking stations
Our docking executive present there
will complete the whole process.
He makes a physical verification.
That's okay. Look, I have to go from one point to another.
- Yes. - I leave from here.
I go there instead of going there.
I dropped your bike and left.
Firstly, we have a geo-fence.
So, whenever one goes out of the geographical boundary of Srinagar
we get an alert.
- But, you can take a cash deposit. - But, we don't want to.
We don't want to take a security deposit, because
we have such faith in our system, and, it's been two years
we have zero theft and vandalism till now.
And, one more reason also is...
the presence of our docking executives at our docking stations.
That makes an impact on people's minds, that...
they can't drop them just anywhere.
Because, our docking stations are within 5 km of each other.
How many docking stations do you have?
...and you don't have manpower.
So, why do you need to dock it in a specific point? Just for charging?
No, it's not docking.
It's just a parking point, right?
So, you come and replace the batteries with charged ones.
All our docking stations
have a charging point for the battery.
But, we don't prefer that much.
Because, we've taken a centralised warehouse in the middle of Srinagar.
We have controlled temperature there.
We have controlled voltage.
So, we've built such a system there
which will increase battery life.
- And, we have additional battery packs. - Batteries.
We have 1.5x batteries.
What I like is that you went completely consumer backward
and found solutions to problems
versus a cookie cutter, as they say, copy-paste.
Then, customised and altered the global model
- to suit the needs of the market. - Yes.
It is very good. This is the right way to build the business.
In fact, you've not used any model.
Whatever you did was with your intuition.
Did you study it a lot from the global point of view?
Yes. The one important factor we found in it
was from a research paper.
The ideal ratio of bikes to people
who can ride the bikes
so that, we can cater to the full demand.
Reached saturation, meaning?
They haven't reached it, they will at 2000.
It will be at 2000.
- How many bikes do you have now? - Our fleet size is currently 150.
How many total rides have you catered yet?
55,000 till date.
- And, of 55,000 rides, you never got an abandoned cycle? - No.
There were thefts twice.
And, we recovered them within 2 hours, both times.
And, damages?
This is an industry...
which has seen a lot of failures.
And, a lot of investment too.
Including China, every part of the world.
Agreed.
Why did you feel that you won't fail, when
line after line, people have failed
only because, when the user doesn't own the asset
they begin to misuse it.
As you said, I think, there are hardly any names
whether in public bicycle sharing or e-bike sharing
which have been successful.
[chuckling]
And, we studied all that
because, now we wanted to learn from their mistakes.
Wow!
The first thing we noticed was that
people are not gentle when it comes to rental.
This is the truth in India.
[laughing]
People are not gentle when it comes to rental.
Very good.
Okay? So, we urge people to please be gentle because it's rental.
[laughing]
Sorry, Peyush, I know you're in huge favour of technology
but, unnecessarily shoving technology anywhere...
doesn't make sense.
[overlapping dialogues]
- He shoves it here too. - I believe in assisted commerce.
I am absolutely in favour of having humans there.
Our advice to him is also...
not to shove technology everywhere.
He may heed you. [laughter]
We studied everything after that
and, we began from scratch.
And, to be honest, we're not engineers.
We thought we'll buy off-the-shelf e-bikes and start.
But, the terrain was different.
Then, we had to get into the engineering part too.
Gradually, we designed the bike ourselves.
Yameen, there's another company in India.
It is a 3500 crores company right now.
- 3500?! - 3500, yes.
According to reports from KPMG
Because, it has become sort of a taboo for other people.
They don't want to travel in a...
- But, you're solving that problem? - We're solving it.
- By premium bikes. - Yes.
But, why do you make premium bikes yourselves?
You can buy them from someone.
Terrain. Our needs are different.
- What's the difference? Explain it. - In the Himalayas...
Yes. We need a specific motor power.
Because, there is excessive incline and decline.
Plus, it needs a little ruggedness.
We've not shot this video. A customer sent it to us.
So, you're saying, the other bikes
- are not suitable. Your bike is unique. - They're not so rugged.
If it is ridden on this terrain
it will result in the motor burning out in 30 minutes.
Really?
And, if you've done so much study...
A company called MYBYK had come to Shark Tank in Season 2.
MYBYK, yes.
So, how are they doing?
What were the issues in their model?
They had also paid attention to all such things.
They had low vandalism and theft too.
Basically, they tried to sell the system to the government.
They were consumer-first, when they came.
So, why did they make that shift?
There must be some challenge.
Yes, obviously, there are challenges.
First of all, we have a 100% control on the pricing.
- So, we charge Rs.1.5 per minute. - Per minute.
So, we are not trying to make it extremely cheap
with the outcome that our asset is ruined.
I think, you've thought of the problems in detail.
Tell us the numbers.
Our revenue was 4.5 lakhs.
- and, some Universities. - University campuses, right.
So, won't that shrink your market a little, because
- you've already captured 5% market in Kashmir. - Yes.
Your annual is almost 50 lakhs.
60 lakhs is expected.
So, even if we fully reach it...
If we capture 50%... competition is natural...
- Yes, obviously. - Right?
Even if we capture 20-30%
six times that, which is, 3.6 crores.
- If we do it in 10 towns, it's business of 30-40 crores. - Yes.
So, by adding universities, it may go up to a maximum of 50 crores.
So, where do you see the big leverage coming?
According to a report by McKinsey...
[laughter]
the global micro-mobility market
is supposed to reach
300 billion dollars by 2029.
...this is not a business, which will
suddenly see a hockey stick curve.
- Correct. - So, it will take cost.
But, we also have to understand why we went to campuses.
There are more than 1400 big campuses in India.
There may be an opportunity there.
- I may not be able to go to Delhi... - The captive audience.
take our 15% EBITDA
to 25-30%.
So, you need to change it in how long?
- 5 years. - In 5 years.
But, how much is the bike's maintenance cost per year?
- If I can explain a little in unit economics. - Yes, explain it.
Our revenue per ride is Rs. 97.
Firstly, we deduct the maintenance, servicing
mainly, any costs from it, which is Rs. 12.5.
Then, we deduct our on-ground expenses
like salaries etc, which is Rs. 29.
So, our gross margin remaining is Rs. 55.5.
From that, we deduct our core team's salaries, expenses etc.
That is Rs. 24.
Then, we deduct all variable costs.
Like, rent, electricity, server cost etc.
All that comes up to Rs. 16.5.
So, we have a net saving of Rs. 15 in every ride.
How much revenue is one bike bringing in a year, or a month?
One bike brings us almost Rs. 4000 in a month.
I think, it's a small market that you're operating in.
Thank you, Aman.
There are a few challenges that I find in this model.
And, as far as I've seen in all the other companies
with regulations and government local bodies...
The setting that is done leads to making or breaking.
- Yes. - Which city you want to expand to
will not depend on the ambition of where it is possible,
- but depends on where you'll find local support. - True.
At this point, at this scale, it's a little risky for me.
And for that reason, I won't be able to associate myself with you.
- Thank you. - Thank you.
What happens in these kinds of businesses is
one city in which the founder is,
they run the business with
- both their arms and legs. - Yes, they do.
- You might be going to the docking station. - That's right.
When you add one city, two cities,
three cities, then the level of complexity
does not increase in a linear way.
It increases in geometric progression.
It won't multiply three times if you expand in three cities.
It increases the complexities by thirty times.
This does not mean you won't be able to do it.
Given your qualities
and attributes, you might be able to do it.
But I would like to see when that happens.
Because that will give the confidence
that you can go from one to three,
- three to ten and ten to thirty. - That's right.
So please stay in touch.
All the best. I'm out.
- this will come in the way of your scale. - True.
Especially when your margins are so thin.
We've already seen the payback period.
I think it's tough to scale.
Because of that reason, I'm out.
- Thank you. - Thank you.
Yameen, you are just me.
I mean, it's like I'm looking at a mirror.
For now, in no sense
can I make money on this business.
You said it's a 50-crore business.
How much can I value it for today?
Right? Even if you make ten per cent EBITDA at five crores
even then for an outcome of 100 crores, today
I cannot invest in more than...
As Anupam said, if we want to see
100x or 50x, which means 2.5 crores,
that means I'll end up taking 10-15 per cent of your company.
And you've raised a round for eight crores.
So it will not make sense for me and that's why I'm out.
Well done, man. Well done.
- Thank you. - Thank you so much.
- Thank you, Zubair and Yameen. Make us proud. - Well done.
- Bye. - Thank you, bye-bye.
Welcome to ACKO Change Makers.
Where we really welcome change.
With the help of innovation and connectivity
we are making a digitally empowered and sustainable future.
Our change makers for today are Yameen and Zubair.
How was your experience inside?
- Oh! That was awesome. - It was awesome.
- I saw your cycle and I genuinely think it's good. - Thank you.
I loved it and I wish we had these cycles in our childhood.
You are encouraging the eco-friendly ways.
Along with trying to improve transportation and bring down pollution levels,
which is the need of the hour.
We really appreciate the change that you're bringing.
Thank you.
As a tourist, what changes can we bring
so that we can apply sustainable and eco-friendly practices?
- We follow recycle, reduce, reuse and re-think. - Hmm.
What we want is a change in the mentality.
When tourists make their budget to visit a destination
they should also pay attention to what their carbon footprint will be.
- Hmm. - They should aim at having a negative carbon footprint.
- That's right. - Because this world belongs to everyone
and everyone has a right to it.
That's right.
- That's also our home, and this is also our home. - Yes.
- You're genuinely bringing a good change. - Thank you.
Just like ACKO is transforming the insurance landscape
with their revolutionary offering.
While purchasing a car from the showroom, purchase only the car.
Don't purchase car insurance under pressure.
Did you know it's not necessary to buy car insurance from the car showroom?
Get a new car insurance from ACKO
and save up to Rs 36,000.
To show our appreciation for the change you've brought
we'd like to give you a gift from Shark Tank and ACKO.
Thank you.
[music playing]
[camera clicking]
Hello and welcome to 'Ask the Shark.'
Today's shark is exactly like me.
Co-founder and CMO of boAt Lifestyle, Mr Aman. How are you, sir?
- I'm fine. - All good?
- Going on well. - Today's question is from Tanvir Prakash from Chennai.
they want they'll say they want whatever is in the towns.
The town people will say they want what is being sold in cities.
The people in the city want to buy what's being sold in the metros.
Indians are very aspirational.
Our country has always seen value for money.
In everything. Say, I'm buying a car,
I'll want to know what mileage it gives.
We want value for money everywhere.
Even the customer's buying capacity is increasing.
And they're ready to pay a little bit extra.
Let's say our consumers were 'x.'
Even their salaries are increasing.
Their purchasing capacity is increasing.
- They are also saying, 'We can pay more and buy more.' - Yes.
We'll meet you on the next 'Ask the Shark'
with a new question and a new shark.