[theme music playing]
[music playing]
'Once again on Shark Tank India, the co-founder and CEO of Inshorts'
'Azhar Iqubal, is here to test the pitchers!'
[theme music concludes]
[music playing]
Hi, Sharks! Mental stress is not just a problem now,
but a global crisis.
When you wake up in the morning,
do you experience an unusual sense of restlessness?
You feel exhausted even before the day begins.
You feel irritated or agitated over petty things.
By the time you return home at night, all you can think is,
'My life is consumed by stress.'
When it's time to sleep,
as you lie in bed, you find yourself wondering,
'When will I fall asleep?'
Hold on!
- Isn't this normal? - Not at all.
These things are indicators of your mental health.
Sharks, 70% of people in India
show some symptom of stress.
...but also your physical health.
But they also mention
stress less and sleep more.
But no one knows how to do that.
People resort to supplements,
but they aren't effective in the long run.
The drop-off rate is high in meditation.
And people keep attempting to exercise all their lives.
Current solutions are not effective.
The world genuinely needs a tangible solution to this stress.
InnerGize is a clinically validated
mental health wearable
that provides immediate stress relief upon use.
And with everyday use,
that you place behind your ear.
To use this,
you have to peel the sticker.
to activate the vagus nerve,
We have tested this device
on more than 1100 users
and the results have been outstanding.
It will help manage people's mental health
through technology, community and services.
Because everyone has the right to live peacefully.
Our device is ready.
And it will be launched in the market soon.
So, Sharks, join us in our journey.
easy, smart and accessible to India.
What this EEG is currently showing you is
that it seems that Animesh is sort of nervous.
What's happening?
[laughing]
- Are you comfortable? - Hmm!
We will start a ten-minute InnerGize session
and then demonstrate
how he feels after the session.
- The waves won't be sharp. - Yes.
- If someone is calm. - Exactly.
There are two types of nervous systems in your body.
In the autonomic nervous system,
you have the sympathetic nervous system
Now the good part is that your body is made in a manner where
the sympathetic nervous system and the parasympathetic nervous system
maintain equilibrium.
Up until 50 years ago, these systems were very active.
In today's day and age,
there is so much stimulus around you and tension
that your body has sort of forgotten
how the parasympathetic nervous system
can bring you back to equilibrium.
Our job is to get it back.
We will place InnerGize behind Animesh's ear.
How do you know Animesh?
Yesterday, I told them
that I am stressed, so we should go party.
And they made me sit here.
[laughing]
You need to stay away from such friends.
We've started the session.
Now, we can continue for 10-15 minutes.
After that, we will check the EEG and the results.
So, Siddhant, Shalmali and Mitansh.
- Yes, sir. - Yes!
Welcome to Shark Tank!
- Thank you so much! - Thank you!
This is an interesting product.
Tell us about yourself.
What has your journey been like individually?
How do you know each other?
I am 30 years old.
I was born and raised in Mumbai.
Now, all of us live in Delhi, because we run InnerGize there.
So, I finished my MBBS in 2017.
After my MBBS, I started my first startup
called Food Darzee.
I completed my MBBS from Nair Hospital, Mumbai.
Unfortunately,
- I couldn't continue as a doctor. - Why not?
At the age of 20, I was diagnosed
- Should I tell them everything? - Go for it.
Liver inflammations, kidney inflammations.
I couldn't breathe because there's something called costochondritis.
My entire body is inflamed.
My body has lost the ability to distinguish
between what is self
and what is an infection.
So, it starts attacking everything.
So, I started to look like an alien.
Whenever I would go to the railway station,
a child asks his mother,
'What is that, Mom?'
Instead of 'who he is?' That's fine.
I was going through a bad stage at that point.
Back then, I used to
take 1500 mg of steroids daily,
whereas normal people take far less.
There was always a fear that the disease
of the patient sitting in front of me might affect me.
Because I am accountable for compromising my own immunity.
My life had been completely transformed.
- Is lupus curable? - No.
- Do you still take steroids? - Yes.
I am down to a normal dose.
- You'll be an inspiration for so many people who'll watch. - Thanks.
Sir, it took time to get out of it.
Luckily, I was in the right place at the right time
and with the right people. And Food Darzee started.
Gradually, I became a celebrity nutritionist.
- Yes. - I was on a great high.
But now, the problem was
that Food Darzee didn't stem
from my passion for entrepreneurship for me.
It was an escape route.
Now what happened is that
four years ago,
I got diagnosed with Stage 2 thyroid cancer.
I was 26.
- 22, 26, 30. - I have goosebumps.
Again, I am saying it with a smile because I don't remember
much of it. It was a phase for me, it passed.
And I believe in the concept that 'This too shall pass.'
All you have to do is believe.
- Was the cancer cured? - No!
It is still there slightly.
But it's at a stage where you can't operate on it.
So, it's a wait-and-watch game.
I am completely healthy right now. No issues with it.
I quit Food Darzee
when Shalmali and I
met in Visakhapatnam
in 2022 around July and August.
Sharks, we met at a startup pitching event.
Siddhant was there as a guest speaker
because Food Darzee was running successfully.
I studied engineering
in instrumentation and control engineering
from Cummins College of Engineering for Women, Pune.
Half of my family had contracted Covid.
Unfortunately, we lost our grandfather.
- Sorry! - And then,
there was too much...
I mean...
This caused mental stress.
My dad suffers from diabetes
and my aunt has hypertension.
I could see that their blood glucose was going up due to stress.
I felt so helpless
that I was unable to do anything for them.
There has to be a solution
that is non-invasive and without side effects.
Since then, it has always been on my mind.
I met Mitansh in the second competition.
Mitansh was still a student there.
We started
and decided to work on a wearable device.
We did our research and spoke with doctors.
Exactly a year ago,
I fell unwell.
I got admitted to the hospital and I found out
This is a lifelong condition.
And all of that is linked to stress.
Every doctor or rheumatologist
you visit will tell you
that the single most common precipitating factor
of any autoimmunity is stress.
So, we decided that we needed to solve this.
Because it's personal for both of us.
Hmm!
I am the youngest of the lot.
I graduated last year.
I am a gold medallist in Mathematics and Computing
I met Shalmali in 2022.
- Back then they... - What were you doing at the conference?
I was in the hackathon.
So, it was a competition and I was participating
- in a hackathon. - You met there.
Shall we see the demo?
- Yes! - Yes.
I've been using this for some time.
The graphs have
- visibly flatlined. - Graphs have also changed.
- Almost. - And this while he talking to you.
So, this is visible objective proof
that my device works.
Now you can go party.
- Yes. - Take him today.
See you.
- Thank you, Animesh. - Bye, Animesh.
- Thank you! - Bye!
Thank you.
[music playing]
There is a box inside this, right?
There is a box inside this. There is a device in it.
We like gifts.
Actually, the unboxing experience is quite nice.
Very nice device.
Is this the device?
Right?
- And what is this? - The charger.
Just like you put earphones in a charging case,
similarly, this case is to carry.
Stress has many forms, right?
- Absolutely! - Your cortisol level goes up.
Breathing! So, that's respiratory.
So, does stimulating the vagus nerve
solve all the outcomes of stress?
...in moments of panic or when feeling nervous
before appearing on Shark Tank.
What you are talking about is chronic stress.
And we will be helping with that too
by training the vagus nerve
to be able to stimulate the parasympathetic nervous system.
I talk about very basic things.
I was weak at science. Okay?
If I am too stressed, I ask someone to give me a massage.
There is that head massage thing you get. Even that...
They do similar things.
The outcome is similar.
But how is it effective?
Number one, we are a convenient solution,
whenever you feel stressed,
you won't have to go for a head massage.
But is this a head massaging device?
- No! - Medical head massage tool.
Yes!
Medical head massage tool is a good word for it.
- Rebranding! - Rebranding!
What is your recommended usage?
10-minute sessions per day,
2-4 times.
It needs to be measured. If someone uses it for a week
...after using this for at least one week,
you have significantly already started feeling better.
Hold on! Is this safe?
- 100% safe. - Yes.
- How? - Over 5,000 peer-reviewed studies
Vagus nerve stimulation
has been in use by doctors and others worldwide for over 30 years.
What are the other types of form factors?
- You made the one that's easy to integrate. - Yes.
How was it earlier?
There is a company called gammaCore
in the American hemisphere.
They have been operating for approximately the past 9 years.
They generate a revenue of around 24 million dollars.
They are a vagus nerve stimulator
only targetting migraines and cluster headaches.
So, their device
is this big and maybe longer.
You have to apply hydrogel to your neck.
- The gel that's applied while performing sonography. - Correct.
- You apply that gel first. - It's sticky.
And then you have to do this to stimulate that nerve.
This device is bulky but effective.
gammaCore is an FDA-approved product.
You need a prescription to get it.
- Because it's a clinical symptom. - Yes!
- A prescription is required. - This is the biggest deterrent.
I don't get it. If they are working on the same nerve,
and they require a prescription,
won't it eventually be the same case in India?
- No! - No. They want to be prescription-based.
Because a migraine is not like a headache.
Migraine needs to be diagnosed.
They are targeting migraines,
so a prescription from a doctor is required.
Then comes the cost.
- How much does it cost? - It is almost $600
for every month.
So, they have a subscription model.
I have a question. Where does your business stand now?
Answer whatever questions you think we might ask on your own.
- Pricing too. - Share the pricing,
equity, investors
- and where you are at. - Okay, done.
Each of us has 33% equity.
Investments, we raised a total of Rs. 2 crores.
...which is Rs. 4 crores.
Our post-money valuation is Rs. 36 crores.
Antler is leading the round,
with H&I and super angels coming in as well.
Somebody like Arjun Vaidya is putting in money.
Finance With Sharan is putting in money.
Alia Bhatt wants to invest.
So, the access is there and my round is almost complete.
The remaining amount is exactly what my ask is.
Thank you for bringing this small ask for us also.
Because we are five Sharks.
[laughing]
And you are asking Rs. 54 lakhs from us.
Where does your business stand?
I don't think my CAC will be very low
if I start spending money on marketing.
How will you make your business?
Our product retails for Rs. 5,000.
Our price point is set in such a way
that an individual who shops at H&M,
after understanding the benefits,
can afford to buy this product.
In the startup pack, you get a device,
a charger,
and the patches
that connect to it.
You will receive 12 patches in total.
...for Rs. 500.
And this is recurring revenue.
What is your B2B revenue model?
I think stress as an opportunity to solve a problem
- is a huge mission. - Yes.
Which is why
I am willing to support you.
Rs. 54 lakhs for 1.5%.
So, Siddhant, Shalmali and Mitansh.
- It was a pleasure meeting all of you. - Thank you, sir.
Whenever I meet a founder
or the founding team, for the first ten minutes
I assess what their
superpower is.
Actually, you don't need it.
I believe you are blessed by God.
- God has a plan for you, my friend. - Thank you!
That I am very sure of.
With respect to InnerGize,
it seems too early.
I am unable
to clearly articulate
where it fits into a customer's life.
Once this is launched,
it will help clarify the pricing,
the frequency of usage,
and how customer churn will be managed.
Because in medical devices
such as CGMs and all, the churn is high.
Customer churn happens when customers stop using
a product or service offered by a business.
For instance, a gym with 100 members
might experience a 10% churn rate
if 10 members cancel their membership.
This could be due to factors like subpar service,
high prices, increased competition,
or the customer's preferences changes.
For any business,
it’s crucial to keep the churn rate low
because acquiring new customers
is 5 to 10 times more expensive than retaining existing ones.
As this business is still in the pre-launch stage,
it could either be successful or face significant challenges.
And nobody knows that. If it does what you claim it does,
then it could be a really good,
- groundbreaking business. - Thank you so much.
- Thank you, sir. - But today I am out. Wish you all the best.
- Thank you so much, sir. - Thank you.
This is a very large problem. There are a lot of...
A lot of people are working on solving it in different ways.
I don't know which way will work.
At this moment, it's hard
to determine whether this is simply another feel-good device
or if it truly is a life-changing
and the best solution ever.
So, it is too early now.
Also, you have a fantastic offer and a partner.
So, I'll wish you the best and I am out.
- Thank you so much. - Thanks.
As everyone has pointed out, your positivity
and optimism is what makes you an inspiration.
Wearables!
You know, I can talk wearables, I can walk wearables.
Wearables are always on the back of my hand. I am good at it.
- I can bring an outside-in perspective. - Yes.
- Okay? - Yes.
Namita and I have an offer for you.
I will bring Namita too.
She will assist in the medical field.
So, I would go for Rs. 54 lakhs for 2.5%.
Thank you, Aman and Namita, for the offer.
[laughing]
Namita will join me as well.
We would love that.
First of all, I will rank all three of you founders
on the positive side.
The problem you are trying to address
is a significant one.
I would like to take a bet on you too.
My offer will be the same as your ask.
Rs. 54 lakhs for 1.5%.
- Thank you so much. - You have three offers.
- Give us two minutes. - Give it a thought.
- Thank you so much, Sharks. - Thank you so much.
Good job, guys.
See, I am honestly good with taking
- Ritesh and Azhar's money. - Okay.
Before they say anything, we will tell them that we have an offer.
Don't you think the percentage is low?
Here, getting your foot in the door is valuable.
They are getting many investors.
I think they will take the best valuation.
Win based on the pricing.
Give them a deal that they can't refuse.
[music playing]
Welcome back.
- Thank you! - Thank you!
- What have you decided? - Okay...
- Ritesh, were you saying something? - I wanted to tell you that
- we would like to give you a deal together, Dr. Siddhant. - Okay.
And the deal is Rs. 75 lakhs
for 3%.
We can talk about that later.
Right now...
If you want the Sharks now, then all three Sharks will come together.
Rs. 1 crore for 4.5%.
[intense music playing]
Oh!
In our opinion, it is a little low.
We want to support you.
If you think the Sharks won't bring anything to the table...
I was giving you a lot at the start. I was giving 2.5%.
Let's increase the valuation and mention advisory.
I have a counteroffer.
3% for Rs. 90 lakhs.
That's one offer.
The second counter would be
Rs. 54 lakhs at 1.5%.
You can share that deal
and I will be able to give you
a discount in the next fundraising round.
No! Reject!
Third counter-offer.
Maintain my valuation
and we can talk about an advisory
that will come from our pool of three founders,
- as we value you as Sharks. - That's fine.
Exactly! If you value us, this is the only deal we have.
Rs. 1 crore for 4.5%.
- We'll agree on 3.75% - 3.75%. Yeah!
Okay, let's meet in the middle at Rs. 4.45%.
[laughing]
Sir, we had 1.5% in mind.
You are quoting 4.5%.
A little!
Okay, Rs. 1 crore... Just to
respect you guys. Since you are insisting.
So, Rs. 1 crore for 4.3%,
three Sharks together.
Let's make it 4.2%. It will be 1.4% each.
- Deal accepted! - Deal accepted!
Keep the positivity high.
- Thank you! - Nice to meet you.
- Congratulations. - Thanks.
[music playing]
Welcome to ACKO Changemakers,
where we really welcome change.
And it has been beautifully portrayed here
behind me on this changemaker wall.
We are creating a digitally empowered future
through innovation and connectivity.
And our today's changemakers are Team InnerGize.
Welcome, guys!
- Thank you! - Hi!
I am very inspired by you guys.
We make an excuse when we have a cold
or a headache.
But you guys have gone through your share of turmoil as well.
I really want to know, was that your motivation?
Definitely, this was a motivating factor.
Because once you've gone through that experience,
only then do you realise
- the importance of mental health. - Hmm!
Because if your mental health isn't strong,
regardless of any physical limitations,
you won't be able to do what you want to do.
Also, we often don't realise
that physical issues in our body
can also be triggered by stress.
What can we do to identify
if this problem is caused by stress?
Is there a marker for it?
Yes, I think there are simple things.
- Like mood swings. - Hmm!
Getting irritated over petty things.
Unable to sleep at night.
You feel restless.
Feeling tired despite doing nothing.
People believe this is a part of life.
But these are the indicators of mental health.
Amazing! Thank you so much!
You are bringing a change in this industry.
It's a change and a great innovation.
Guys, also,
there is a lot of change happening in the insurance space as well.
ACKO is bringing a change with its revolutionary offering.
Now, when buying a car, you only purchase the car from the showroom
and don't buy car insurance under pressure.
You didn't know that
it's necessary to buy car insurance from the showroom, did you?
Buy a new car insurance from ACKO
and save around Rs. 36,000.
Guys, to celebrate what you're doing,
there is a memento for you from ACKO and Shark Tank.
This is for you.
[camera shutter clicks]
[theme music playing]
[music playing]
Sharks, you must be wondering,
another skincare brand!
[laughing]
Today, we are here to request you,
please don't invest in this business.
After all, what is so special about us?
In the already cluttered and complicated skincare category,
here's another brand.
We are also promising radiant glow
and glass skin.
Our brand's name is Personal Touch Skincare!
It's a lifestyle skincare brand.
...are not generic or universal.
We are targeting specific concerns
related to Indian skin tone.
Sharks, we are bringing international,
science-backed ingredients from all corners of the world.
...that our products are effective and potent.
I don't think it's a big deal.
Oh, we forgot to mention
that our product is equally effective on men's skin as well.
Sharks, there is a limit to overachieving too.
Aditi is the one who is overachieving.
Sometimes A Beauty and sometimes J Beauty.
And it turned out to be a stroke of bad luck.
We focused solely on the product
while creating Personal Touch Skincare.
We didn't focus on marketing or waste time.
Now, look at the result. They are everywhere.
And our retention rate
is 57%.
Tell me! What are we here for?
Sharks, we aim to become
the number one skincare brand globally.
Too much pressure.
Sharks, believe us. Don't invest in us.
But if you want to invest,
then Rs. 1.2 crores for 1% equity will work.
Sharks, we believe
that every skin needs a personal touch.
Rest is all on you.
Lovely pitch.
Hello, Sharks. Hello!
- Was it a pitch or anti-pitch? - Anti-pitch.
- It was the best anti-pitch. - Thank you for getting it.
Thank you!
Ashish and Aditi, welcome to Shark Tank.
- Thank you so much. - Thank you!
Tell us about your ordinary business.
And tell us about you too.
I had a strong passion for fashion, luxury, and retail.
So, I studied fashion retail management,
which helps you pursue luxury, retail, fashion, beauty,
and everything.
I did that for four years.
Simultaneously, I completed BCom Honours from Delhi University.
And then while I was at Pearl Academy,
in the fourth semester I got an opportunity
I had someone... They were our clients.
And she used to come there a lot.
I didn't know that she was the Head of HR of Reliance.
She gave me an opportunity to work as a fashion consultant
for Reliance.
I was with Dune London for approximately 6-7 months.
But then I had to move back home.
I started a label for customised Indian wear.
Why did you go to Panipat?
- Are you his older sister? - Yes.
Okay!
- Is your dad fine now? - Yes, he is.
With God's grace, he is fine.
And then I continued my label for around 4 years.
It did well in Panipat, which is a small town.
And then, he will tell you the story.
He has a background in Pharma.
Then I got an opportunity to become
a distributor of a pharmaceutical company.
I entered the pharmaceutical industry in November 2016.
- In December. - Shall we talk about this now?
- Sure, sir! - Show us your product first.
He talks a lot.
'Do you know what happened? What happened?'
- 'It shut down.' - He wants to share the story in detail.
Do you feel the same way?
Sir, people ask us to control him.
- Do you know what happened? - That's why she's the co-founder.
I run, and she grabs me by my collar.
You gave me a towel. Give me something else.
[laughing]
I got something for you.
- Wow! How cute! - This is for you.
Yes! This is our lip balm and lip scrub.
- Oh my God! - We'll talk about it.
It's so cute!
[music playing]
May I tell you both something?
It does have a luxury feel.
- Yeah! - The packaging is impressive.
Very smart in saying 'Not just SPF.'
Yes! Sir, this is at least India's
number one formulation.
- We've incorporated snail mucin in SPF. - Hmm!
Its USP is that if you try it on,
it will absorb very quickly.
Your packaging is premium. So, now tell us the pricing.
- This is for Rs. 2,000. It's luxury. - What is the range?
- Affordable luxury. - Rs. 1,599.
Affordable luxury or pure luxury?
- In India, mass sunscreen retails at around Rs. 400. - Rs. 400.
- Yes. - If you want a premium product,
it's for around Rs. 500-Rs. 600. Anything above Rs. 1,000 is luxury.
- That's India's market. - So, it's luxury.
- Ashish and Aditi! - Yes.
- Are you manufacturing it? - No, sir.
Why did you mention that
it's manufactured by Personal Touch Skincare?
Sir, we've secured our formulations.
But who makes these formulations?
My cousin's plant is in Baddi.
that you have bathrobes.
Can you explain the logic behind how you're selecting your SKUs?
Sir, we wanted to build a lifestyle skincare brand.
We only launch products that are co-related.
We created products inspired by the bathing experience,
including bathrobes, bath towels
and face towels. This face towel is amazing for acne-prone skin.
They will use this towel once and never go back.
This is my guarantee on TV.
How many total SKUs do you have?
- 38, sir. - Sir, 38.
Which are the top 3 SKUs?
...how much percent is that?
December 2022 to March 2023
- The growth in this year in net revenue is 15%? - Yes.
There's an answer for it getting slow.
You will obviously tell us.
[laughter]
When the balance sheet came out last year
EBITDA was 5.05. PAT was 1.54.
The proof is...
we are standing at +14.52 EBITDA.
...if you turned 15 to 45 in the next year
even with the 5% EBITDA, my net profit would remain the same.
It was more important to increase sales.
Ashish, Aditi, I've never normally heard this on Shark Tank.
You said, you were getting sales but you refused it.
- No, it's not coming... - Let's understand
where the 10% EBITDA came in from.
- then, you decided to do this? - No, no.
Sir, the reason is the money
that we had taken and spent. It was a loan.
In today's date, we've paid off everything.
Of all the sales that I've mentioned
94% comes from our own D2C website.
Your D2C business runs on which platform?
Shopify.
So, how many orders did you get on Shopify last month
and, what were your sales?
We did 12,000 orders.
We did a gross of 1.65 crores.
- Yes, yes. - Correct.
- Branding, offline activation. - Also...
To build a community, we did a lot of offline activations.
We make them a part of our offline launches.
Will you explain the split of the 43% marketing?
Ma'am, in the first year...
we spent only 10% on Meta & Google
and 90% was branding, offline events and influencer marketing.
Give us a break-up of that.
4-5 crores is a lot of money to put into this.
Ma'am, we've done a total of 11 offline events till date.
What is an offline event?
We call our customers
in batches of 50 or 100.
And, we also did... we placed a bet.
We did a concert...
In which, we generated revenue too.
How much revenue was generated in the concert?
2.75 crores.
- 2.75 crores?! - Not from the concert.
We showed changes in their skin. Live transformation.
We onboarded influencers.
'Then, there is a big surprise for you guys coming in'
- 'if you buy the new launch.' - You told 1000 people
they can see the concert if they buy that product?
- For free? - Absolutely!
- You mentioned a lot of things around social media. - Hmm.
So, you must be having your most viral videos.
- Can we see them? - Sure, sir.
- 'Hi, I'm Aditi. - 'Hi, I'm Ashish.'
'We are the co-founders of Personal Touch Skincare.'
'Personal Touch Skincare is a brand, where'
'clinical efficacy meets affordable luxury.'
This video can't be viral.
- 2 million views. - It actually went viral.
- 2 million views? - Yes.
How many shares and likes does it have?
705.
- So, you boosted it? - No, it was not boosted.
- It's at 700 likes and 2 million views? - Yes.
That's very little engagement.
That can happen only with a boost. You're sure you didn't boost it?
Sure, 100%, ma'am.
100%.
- There's typically a 5% ratio on Instagram... - Yes.
if you take an average. 1% is definite.
1% of 2 million views is 20,000.
So, something is off here, if you go to see.
You don't know you boosted it, right?
- No, we don't know. - Okay.
Tell us the unit economics.
What's your average ASP?
Average product price or order value?
Average order value is 1,450.
And, what are the discounts?
This is the post discount number?
Yes. I gave the unit economics on SP.
Only 40% customers this year must be new.
In your first year of marketing
Sir, retainance takes a lot of money.
How much money is going into repeat?
More than 40%.
The figure for organic in September was 30 lakhs.
By chance, the figure came to me from the team in a conversation.
What do you mean, in a conversation?
I don't know right now how much exactly is organic.
- Why don't you know? - But, attribution is such a...
- Basic thing. - If anyone...
makes sales of 10-15 crores
you don't know the attribution of your marketing?
[tense music playing]
We use attribution analysis in marketing
to figure out
which of our sources are bringing users.
Like, through Facebook, Google
SMS marketing, email marketing.
Attribution analysis tells us
how many users came from each source
and at what cost.
So that, we can accordingly plan our future marketing strategies.
The point that we have reached today...
We were not from the D2C space. We are from Panipat.
I mean, we are talking about spending 5 crore rupees.
So, at least one person...
A little discrepancy in these numbers
- will pay one more person. - Correct.
Because, it's a huge number.
So, it is important to understand the attribution
to understand if our repeat 57% customers
are coming back due to ads, or are genuine?
That question is not being answered.
That's what we wanted from organics but, we didn't get an answer.
It was important for us to know everything before hiring anyone.
On what basis could we judge anyone if we didn't know about something?
I don't agree.
- This is what disappointed me. - Yes, sir?
You very easily said, you don't know
- how much is organic traffic. - Yes, sir.
You said you just heard it in a general conversation.
- You've done good sales. - Yes, sir.
Unfortunately, you know what the problem is?
There is a law of diminishing returns in performance marketing.
- Okay. - After one level
even with a lot of investment, sales don't rise a lot.
Sales rise very slowly.
So, this is the issue that prevented rise in your sales,
because product is expensive too.
I'm very disappointed that you don't know the details.
I'm out right now.
But, you should have been prepared.
You should have come prepared with some details.
Initially, I told you to, you know
- please tell us more about this ordinary business. - Yes.
Actually, I was hoping you'll turn this ordinary business
into extraordinary.
But, it actually isn't.
The biggest issue here is that you didn't do any capability building.
There's still a lot to do to build a brand.
You've put in immense effort.
You've put in 110% effort! It's showing.
But, the efforts were not into building a brand.
Till you won't establish the brand
- you won't break out. - Yes.
So, I'm out today.
- But, I wish you all the best. - Thank you, sir.
I am struggling a little
to give even as much credit as Kunal is giving.
Because, if we see the math of your gross margins
on this product, the cost of this product is Rs. 500.
...if we add everything and count the purest forms too
at the max...
production cost will be Rs. 100-150.
So, this is one thing, which I find a little hard to believe.
I don't know if your cousin is cheating you.
That's the benefit of doubt I would have given.
But, when you said, you didn't boost your video with the 2 million views
and then, you began relating that whole story
about your marketing, performance marketing and expenses
all that is now making me doubt these numbers.
You're talking about experiential marketing.
I feel, you're selling all these products with one-to-one sales.
Because, the market in India
- for skincare is worth 25,000 crores. - Correct.
From that, the market above Rs. 1000 which perhaps you don't know
so, you keep calling this affordable luxury is not even 4%.
And, the consumer in that 4%
is not shopping in D2C, or...
buying creams worth Rs. 2000 without actually having a retail store.
So, I feel, if I check out your Shopify dashboard
I won't see these numbers. Because, it is impossible.
For that reason, I am out.
Um, I have a very very strong gut feeling that
something is fishy.
You are out for today. Thank you...
for listening to us.
But, I will show you the proof today.
I'll open up Shopify to you.
Even a difference of 1% is on me.
Aditi, Ashish.
Look, firstly, your family and business are interrelated.
I like to see that.
When anyone touches and experiences your product
it forms a lasting impression. Well done on that.
I think, your structural issue is that
you're so comfortable
about spending on marketing even to retain your customers.
- A lot of companies face problems. - Yes.
I have a problem that you are comfortable with that problem.
I think, your company is missing attention to detail
outside of product.
But, I'm ready to help you with that.
I invite you to meet me in Gurugram.
I'll spend an hour or so with you, especially in
- laying out all these basics. - Yes.
If you find that alright...
then, hopefully, we will have something to do.
I'm out today, but, many best wishes.
If we see your business...
last year, at a revenue of 20 crores, 43% was marketing heads.
That's basically the largest head of your cost bucket.
Basically, you don't have an idea
of the details of the largest head.
The largest cost base in a business
should be at our tips.
So, somewhere, I saw a depth missing.
Secondly, for any business across the world
only one fundamental metric matters.
- Whether you have repeat customers or not. - Yes.
If you don't, the business is a flop.
If you do, it's a goldmine.
And, in today's date, unfortunately...
you're unable to correctly answer that fundamental question.
So, I'm out because of all these reasons.
But, you made sales at a very large scale
and, with a positive EBITDA too
so, perhaps if you find the answer to this question
the business can grow significantly from here.
Okay, all five Sharks are out.
- Thank you very much, Ashish and Aditi. - Thank you, Sharks.
- Thank you. - We'll come back much stronger after learning.
- Please! All the best. - See, I didn't give you a cheque.
I'm giving you my phone number. Do message me. - Thank you, sir.
- All the best. - Do well. God bless you.
to see their sales data on Shopify.
I guess, till date...
it's 32 crores.
67 lifetime sales, December.
- Yes, open for October. - Yes.
I told you 1.65 crores.
- Hmm? - Total net is 1.32.
On your site...
the traffic is 7000-8000.
- Okay. Daily? - No, per month.
That means, roughly...
maybe 10,000-12,000 is coming in.
If you want to make 1.5 crores on your website
your traffic should be at least 1-1.5 lakh people.
Okay? Your total monthly visits
are around 10,000-12,000.
Your orders are 12,000.
So, all your consumers are converting.
If your traffic is 10-15,000 people
the 12,000 orders that you have received
is not your website business.
What you are doing in a day
- can be two things. - Activation.
Either, you are launching
and, adding people's orders on Shopify.
To show sales.
Or, you're making consumers do it.
No company can have such sales.
That, we have 2 lakh sales daily
and, suddenly one day sales became 50 lakhs, and then, down to zero.
Ma'am, this is a launch.
- We make launches and hold drop sales. - Launches or sales.
Our pattern since the start
- is that we build here... Yes, please do. - Show it to me again.
See here, this is a launch too.
You'll see our pattern all over the month. What we do is...
we create a hype about a new product.
It will be followed by a sale too.
Every one of our customers waits for this time.
During a launch, you'll suddenly...
You can go behind month-on-month.
Show me the total traffic.
Here are the total sessions.
How much are your total customers?
Uh, 96,000.
- Total customers? - Yes.
- For selling products worth 32 crores? - Yes.
If 95,000 people are buying products worth 32 crores
how much is each customer giving you? Do the math.
Rs. 19,000.
So, your sales are not just website business.
With 90,000 customers
sales worth 32 crores is not a B2C business.
Ma'am, our products are unique.
People are crazy for them.
We have built such a cult community. The laptop is here.
There are only 90,000 people in your community, who have...
Shall I tell you one more thing? You won't believe it either.
From this whole community of 96,000 people
24,000 people alone bought products worth 19 crores.
Then, you have a B2B business.
As far as I know, consumers...
don't wait for a specific day. They don't shop once in 3 months.
So, I think, on that day...
they either enter sales
which can be real or fake
or else...
they place offers on launch day and take orders on calls.
But, this may be helping their business
but, this is not a D2C or online business.
Because, no online business
can jump from their daily average by a 100 times
on any one day.
You know that your favourite brand is on sale on only one day.
And, you will get profitable deals. Won't you take it?
- Vineeta will also buy. - Won't you wait?
- I think, everyone... - Everyone will take.
Every Shark will eagerly buy on that day.
But, the problem is that
it's become too real for them. They're not ready to believe
these are real numbers.
I don't think... We'll have to take them to the bank now. I don't know.
Hello, team Personal Touch.
Welcome to PokerBaazi zone where you hold the cards.
Obviously, too much happened in the Tank.
But, honestly, there were some high points
and, I have to applaud you for that.
But, let's forget about the Tank for 2 minutes.
Are you familiar with Poker?
- A little. - A little, okay. So, let me be a teacher today.
There are several similarities between Poker and business.
There's risk, competition...
strategy, all that.
- Four Of a Kind would be customer service. - Okay.
- Then, Full House would be business ethics. - Hmm?
And, Flush would be marketing.
Marketing. Nice!
Now, tell me, I've learned about your R&D that
you do have research and development
- but, testing is done on madam? - Hmm.
- Are you still the guinea pig? - Yes.
- Still the one. Yes. - You're still the guinea pig?
Personal Touch Skincare is based on
focusing on sensitive skin.
- Okay. - And, who is better than me?
So, that's why, I do it.
That's why, you're so focused. It's your Royal Flush, which is
...apply your winning strategy and draw your winning hand.
Download the PokerBaazi app now.
I know you people very well.
You want to sit at home and give real-time feedback
about how each shot of cricket should be played.
That the bat should have been swung like this, not like this.
Tell us who will get the funding and who won't?
You stand a chance to win iPhones, iPads and other goodies.
Hurry and log on to the Lenskart app or Lenskart.com.
'Shark Tank India, co-presented by ACKO Insurance,'
'PokerBaazi and Swiggy Instamart.'
'Co-powered by Adani, and Jaquar Bath and Light.'
'And partners, Rayzon Solar, ICICI Direct,'
'Lenskart and Sofy.'
'Beyond the Tank 'We will do it and show' Journeys'
[music playing]
'Dil Foods is a virtual restaurant operator.'
'Inspired by the different regions and cultures of India'
'it makes fresh food brands.'
Hello, I'm Sahiba and welcome to Adani presents, 'Beyond the Tank.'
Adani has a motto.
Which is 'We will do it and show.'
Let's see what today's entrepreneur has done.
'By associating with Dil Foods'
'any of the brands out of our eight cloud brands'
'can parallelly operate from its kitchen.'
'What is your five-year vision?'
'We want to make a 7500 crores company.'
'Phew!'
As soon as she walked into the tank
everyone was impressed with her.
'To be associated with our dream, what we want from you is'
'50 lakhs for 0.5 per cent equity.'
'Two crores for 2.67 per cent.'
- 'Let's do it. - Which is four of us. - Let's do it.'
- 'Let's do it. - Let's just do it.'
'Thank you.'
- 'Thank you. - Well done.'
[music playing]
A four-Shark deal is not a joke.
There was no negotiation either.
But how have the Sharks helped you so far?
I went to meet Peyush
and he gave an advice
about where I should expand and where I shouldn't.
I learnt a lot from Ritesh.
How to ensure
that they are also growing.
I reach out to Vineeta for that.
Radhika had also come on board with us.
I also talk to Radhika before making a financial decision.
She is the Goddess of Finance.
When you were in the tank, you said, you hoped to reach 30 crores that year.
We did 32 crores.
- Even went beyond your prediction. - Thank you.
What happened after that?
When we came on Shark Tank,
we were doing 2,000 to 2,500 orders on a daily basis.
After this was aired,
within 48 hours,
we got 26,000 enquiries.
Our existing restaurant partners
also saw a huge growth.
There are so many restaurants that had not seen
- 100 orders in a day in their lives. - Hmm.
And for them to be able to handle 400
- or 500 orders on a daily basis, - Hmm.
- it was a very big deal for them. - Hmm.
And how many cities have you expanded into?
Right now we're there in
Bengaluru, Hyderabad, Chennai, Pune.
We just launched in Coimbatore and Mysuru.
- Amazing. - And we're launching in Mumbai next month.
We launched several authentic, new types of
comfort foods and soul foods.
We could see the jump in terms of numbers and sales.
Because we were selling very cliched items like,
- 'Litti Chokha' and 'Sattu.' - Hmm.
When we steered towards authenticity
suddenly our orders
- went to 2x and 2.5x, which was - Right.
- absolutely great for us. - Hmm.
We realized that people were craving
for authentic regional food.
In all of Bengaluru,
no one used to serve 'Tamatar Chaat,' other than us.
After the show was aired,
many of the local 'chaat' vendors
- introduced 'Tamatar Chaat' in their menu. - Yes.
And we even went and asked them,
- 'How come you suddenly introduced 'Tamatar Chaat?' - Hmm.
They told us that they saw it on Shark Tank.
You became a trendsetter.
Now, 'Tamatar Chaat' is available in six to seven places in Bengaluru.
'My team and I went to Bihar.'
'We stayed at the locals' homes there.'
- 'Yeah! - Here, on the streets, you get the best'
'in the world, 'Champaran Mutton with Litti.'
- People don't even know that such a cuisine is available. - Hmm.
The homes that you lived in, did they introduce it to you?
Did they make you taste it?
We forced them that this is what we want to eat,
foods that they eat daily.
Because they were feeling bad, they said,
'We'll make Paneer Curry.' We said we don't want that.
We don't want it,
- We want to eat this. - Right...
Usually when you think about how Shark Tank changed
your life and when everyone talks about your business,
- was there any personal change? - Yes.
There were a lot of changes.
But suddenly after Shark Tank,
wherever you go, people recognize you.
They want to come and take pictures with you.
Secondly, the extended family from my in-law's side,
they are all from Rajasthan.
- They have a conservative culture there. - Hmm.
Men and women would not sit together even for meals.
This time when I went, there was an incident
that a male member was saying something to a female member
and she just said, 'You can tell this to me later, first tell me'
'do you know how many zeroes are there in 7.5 thousand crores?'
- Oh, my God. How nice. - That was a part of my pitch. That happened,
and now I can a lot of changes. Which are, I mean...
Changes that give me a lot of joy.
What you've done,
it's very difficult to smash years of tradition and years of patriarchy.
Your story has been very inspiring, though.
Let us tell you
that the entrepreneurs who come here,
Arpita, keep doing what you do. It was so nice meeting you.
- This is on behalf of Adani, - Thank you so much.
Shark Tank and me.
- This is for you. - Thank you so much.
And of course, we are on the 'Adani Wall of Achievements.'
I can see a walk down the memory lane.
You're looking very happy here. You have the cheque, obviously.
How does it feel to be here, when you were there and now you're here.
Very nostalgic.
In fact, I was just looking at the pictures and I realized
- that it's been one year already. - Yes.
But it feels like I was here just yesterday, seeing this place.
It feels very nostalgic and very nice.
- Amazing. Best of luck. I can't wait to see what you do next. - Thank you.
Thank you.
- Hi. How are you? - Hi... - What's happening?
Superstar founder.
Lovely.
- So good to meet you. Hi, Ritesh. - Nice to meet you.
- How are you? - All good.
- Congratulations on all the progress. - Thank you so much.
How's it going? Your numbers
were always amazing. But where is the revenue now?
So, it's going great.
- Amazing. - And profitably.
This reminds me of Scrooge McDuck.
- Swimming in the money. - There's a lot of profit and you're swimming in it.
I have two to three suggestions for you. Firstly,
- always give ten per cent more - Hmm.
If you make another round now, there
will be a good valuation. What's it now?
380 crores?
We did it at 75.
That means we've got 5.5x return on investment
in the first year.
- I believe we will get a 10,000 crore rupees exit. - Yes.
- And we have full faith in you. - Thank you so much.
- Do well, God bless you. - Thank you so much.
Thank you so much.
Congratulations. I'm very happy about your success.
Our next business founders...
I have found out something very unique one of them
and for that, I have to order them something.
I'm logging on to Swiggy Instamart.
It will be here in 10 minutes, it's that simple. And...
It's done. Order placed. You too get ready for the next pitch.
If you need anything, there's Swiggy Instamart, right?
I'll see you after the break.
[theme music playing]
- Greetings, Sharks. - Greetings.
It's like this,
if you want to know about yourself,
then you should know what you eat.
And if you want to know about what you're eating,
then you should know more about your country, Bharat.
I am Farmer Nupur.
And I'm Farmer Abhinav
...to 'Discover India through food.'
Do you have the time
to go to Kashmir to drink Kahwa?
Or do you have the courage to go to Leh, Ladakh in -30 degrees,
and taste Sea Buckthorn Berry Jam that is made there?
Would you like to eat 'Rajma' rice that is made
from spices ground on the mortar pestle?
Or while sipping tea from Dibrugarh, Assam,
would you be able to taste 'Amritsari Masala Paratha?'
We know, Sharks,
you cannot be everywhere,
but the flavours of all the places
can surely come to you.
That's why we've created KIWI Kisan Window.
India's one-stop solution
for experiencing healthy unique flavours of India.
Unfortunately there is no brand so far
that could bring all these diverse and unique food products
through an experiential store, to you.
KIWI Kisan Window is a big step in this direction.
Sharks, our philosophy of scalability is very simple.
Omnichannel.
And with the same brand
we want to make Indian farmer's products
a global brand.
With 300 stores in the next five years.
And for this, we need your guidance
and only 50 lakh rupees.
At one per cent equity.
We now request you
that you join us on this path
and 'Discover India through food.'
- Awesome. - Farmer Nupur, farmer Abhinav.
- Yes. - Yes. - Welcome. Are you really farmers?
- Yes. - We were farmers, we run this brand now.
We are now farmpreneurs.
Tell us about your journey from a farmer to this business
to Shark Tank.
I was born and brought up in Dehradun.
After that, I went to England on a scholarship.
What did you study in England, on the scholarship?
Ma'am, Business Studies.
Post-graduation or Under graduation?
Under graduation, ma'am,
...but I couldn't clear IAS.
But in the process I understood my country very well.
After understanding my country
I began a small movement
which is called 'Dehradun Drum Circle.'
Through that, I met Abhinav.
This was a movement
in which I wanted to
Ma'am, when we both met,
we started a foundation called 'Evolve Foundation.'
We adopted a village named...
- in Dehradun district. - Which year was this?
Ma'am, this was in 2015-16.
What is your story?
I am from Vikasnagar, which is a small locality near Dehradun.
I did my primary education from Dehradun.
And then I did my BBA from HP University, Shimla.
As a child, I was inspired by my grandfather
because he was very active in agricultural movements
and agricultural conferences.
For post-graduation, I did my MBA in Rural Management from Bhubaneswar,
in Odisha.
Or if it can be made in a permanent space.
We figured out that a permanent space was much more viable
- than doing a farmer's market repeatedly. - Got it.
Is that when you established KIWI?
KIWI Kisan Window was registered as a Private Limited Company in 2017.
- We're husband and wife. - We're husband and wife.
It took a long time to tell us that.
[music playing]
Wow.
[music playing]
Please tell us what this is.
Ma'am, there is a mouth freshener is that
Please take very little.
It's very strong.
Oh!
Yes, it is very strong.
Sea Buckthorn. No, I haven't eaten it.
I know Sea Buckthorn.
- But I haven't tasted the jam. - I haven't eaten the jam.
- It's really good. - It's an anti-aging product.
And we'd also like to tell you
that we went to Leh from the Indian Government
because the Sea Buckthorn there gets wasted
We went to see how we can do capacity building.
Why does it get wasted?
Leh is closed for six months.
What is Sea Buckthorn?
- They are berries. - It's a berry, sir.
What is your competitive advantage?
We've divided our range of products into two parts.
One range of products is such
that defines value.
Some items, as sir mentioned, you may not have eaten them before.
And the other range defines the volume.
For example, I have 'Rajma' from Chakrata.
Chakrata is a place in Uttarakhand, like Mussoorie.
Chakrata 'rajma', compared to 'rajma' from Jammu or normal 'rajma'
gives a thicker gravy and better taste.
And this is our motive.
All these pearls
which I can call as good and unique products
are used in different regions, territories and states.
They have recipes of their own.
But unfortunately, today,
we don't see these pearls threaded together
on a single platform.
We don't see it in retail space.
So we make sure that our product line
is not just about the taste of it,
but we work on its touch, look and feel
and make it an experiential product.
It is about bringing all these pearls together.
It looks like you have products from every corner of the country.
Have you split them into any logical buckets?
- Yes. - Yes, sir.
What is that?
So they are discovering the food through this
travel and giving you the food of the world.
And we are saying that there is so much food variety in our country.
Let us first bring that to you.
Have you been to Trader Joe's?
- Yes, sir. - We visited 20 Trader Joe's in this year.
In comparison, you have 250 SKUs,
how many SKUs would their store have?
- They have 4,000 right? - Anywhere between 4,000 and 5,000.
Your packaging
is very colourful and cool.
Because you've made it for the shelves.
Is more sold online or offline?
Sir, 97 per cent of our business comes from offline.
- Oh. - We started our online business just one quarter back.
Only three per cent of our business comes from online sales.
This was our first store.
What is the size of the store?
- 250 square feet. - 250 square feet on average.
This does not look like 250 square feet.
- It looks nice. - It looks big.
This is 300 square feet. It has 40 feet in the front.
You've used a lot of wood.
- To give the feel of Uttarakhand, right? - Earthy feel.
Okay, tell us about your business.
- Tell us everything from revenue to EBITDA. - Right, sir.
- Last year we made a revenue of 5.06 crores revenue. - Very good.
Before that we made 4.3 crores revenue.
And before that it was 3.4 crores revenue.
What is for this year?
We've closed at almost 4.5 crores.
So it will go to eight or nine, easily.
Sir, our target is ten crores.
How are you getting such a sharp jump from five crores to ten crores?
There are two reasons for that.
Sir, we've raised 80 lakh rupees.
From an angel investor.
They are the founders of Team Clovia.
What was the valuation?
- 30 crores. - 30 crores. - When did this happen?
- In May we got money in the account. - Money in the account.
- May 2024. - Yes, sir.
What has been your EBITDA for the last three years?
- You said you have studied Trader Joe's thoroughly. - Yes, sir.
Do you know what Trader Joe's online strategy is?
Sir, they market limited products
- as a part of their online strategy. - No.
Trader Joe's does not sell online.
They have created such a cult in America
that if you want things from Trader Joe's
and it's not in your city,
people buy them on eBay.
If someone else has bought something from Trader Joe's in another city,
they list it on eBay, and people from other cities buy from them.
That's true.
People travel to a city
to buy from Trader Joe's.
- Right. - There's a reason
why they don't sell online.
Trader Joe's has a lot of freshness
due to the new selection of products.
That is why people visit that store, hoping to find something new.
So, I wonder why you want to do it online if you've studied
Trader Joe's deeply.
Sir, we want to be where our customer is.
Many of our customers,
around 40 per cent of them
had visited our stores
in Dehradun or Chandigarh at some point,
but they lived elsewhere.
They cannot buy our products.
So, we decided to sell
a limited of our products online.
These had to be less competitive,
with a high margin and online-friendly.
We have 50 per cent cogs.
Our salaries are around 22.5 per cent.
- Okay. - Our rentals are around 6.5 per cent.
The rentals are surprisingly low.
Our marketing spend is 3 per cent.
Our logistics are 2 per cent.
We spend 2 per cent on electricity.
Our other expenses are 5.7 per cent.
- Our EBITDA is 5.3 per cent. - No.
No, it doesn't sum up.
Repair and maintenance...
Sorry! Repair and maintenance of the stores is 3 per cent.
Is your store's average rent Rs 30,000?
No, ma'am, our store's average rent is around 40,000 to 50,000.
Then, your 6.5 per cent isn't adding up.
- What is your store's size? - 250 sq ft, sir, on an average.
Where are your stores located?
Two stores are in Dehradun.
Another two stores are in Chandigarh.
We have three stores in Mohali.
We opened one last month in Cyber City Gurgaon.
Tell us your average store rent and average store sales.
Our average store rent is Rs 45,000.
Our lowest-performing stores are the new ones in Mohali.
Four of our stores are company-owned,
and four are franchisees.
What is the model of your franchise?
Franchisee invested and company operated.
How much revenue do you share with the franchisees?
What is the payback?
What is your payback on your investment?
The overall payback on the stores is 18 to 24 months.
- What is your EBITDA at store level? - 20 per cent, sir.
- Are all the stores profitable? - Yes, sir.
This box of 'makhana' is for Rs 200.
Your pricing is too high. It's too premium.
Sir, there are grades in 'makhana'. There is a grade called A++.
There seems to be no difference.
Are your prices on the premium side?
The products are of high volume and are comparatively high in commodity.
We kept the price accordingly.
A few of the product prices
are near Patanjali and lower than Organic India's.
Our unique selling proposition is that KIWI gives you
what you get nowhere.
Our pricing for those products
is a little premium.
We charge a premium for the energy,
sourcing and ideology behind those products.
In the beginning, you said you would start a farmer's market.
So, activists versus business,
what do you incline more towards?
My father
and his forefathers have been running a grocery shop
in our small city for the past 120 years.
So, we come from a 100 percent business family.
I've spent my childhood doing the accounts.
I didn't want to sit in that shop
and use my education to develop new ventures.
I was always looking for that.
But our primary focus is to build the business.
Our EBITDA has been positive since the first year.
...is beyond us.
However, we want to do it parallelly.
We need to be where our customers are eventually.
We've entered Gurgaon and NCR last month.
...in Delhi NCR. We want to operate
according to the hub and spoke mode.
We want to give the experience
that Trader Joe's has by building its cult.
KIWI Kisan Window also wants to build its cult in various cities
for those who wish to explore India with food.
Abhinav and Nurpur, two things are problematic for me.
Your revenue per store
has to be significantly higher.
You must've observed that every quick commerce store
sells Rs 20 to 22 lakhs daily.
My second suggestion is
to condense your payback period to around 12 to 15 months.
But I am less bothered about that.
I am more bothered by the volume at a store level.
I am out of this for that reason.
But I give my best wishes to you.
I am confident that I will shop at KIWI Kisan in the future.
- Thank you, sir. - All the best. - Thank you, Ritesh.
The numbers seem too good to be true.
...fail to do so.
After doing all this, your EBITDA becomes 3 to 4 per cent.
So, if you try to take this up to 300 stores,
your Rs 40,000 rent in tier I and metro cities
will go up to Rs 70,000 to Rs 1 lakh.
- Correct. - But your throughput
going beyond 10 lakhs for a small 250 sq ft store
will be difficult.
Some pilots
may be successful at a smaller scale, but they find it
difficult to scale up to a larger scale.
That's why I cannot build conviction
if there can be an investment here on the valuation of Rs 50 crores.
For that reason, I am out.
- Thank you. - Thank you, Vineeta.
I find it incredible. I feel this business has a future.
Your logo's tagline, turban,
moustache and name are a little confusing.
It's okay for an offline shop. But not for an online platform.
If you keep KIWI and get rid of the Kisan Window,
you might appear to be selling kiwis.
Your model is good and different. I love the packaging.
The colours you've used and the freshness you've got
are rare in this category.
As you've already raised, my mind is unconvinced with the valuation.
But there's no problem in offering. I'll offer something.
I'll give you Rs 50 lakhs for two per cent
plus royalty at the rate of two per cent for two years.
[laughing]
Okay, then. Shall we?
- Thank you for your offer. - I know.
But we would like everyone's feedback.
You can take their feedback but don't accept their offer.
Overall,
the broader concept seems exciting and positive to me.
- I would happily join Aman if he's okay with that. - Yeah.
So, for now, our offer is is Rs 50 lakhs for two per cent
and royalty at the rate of two per cent
until we get Rs 1 crore back.
Secondly, the gross margin is too low.
That's why the economics are stressed.
But you might succeed at negotiating better terms with higher volume.
I am interested in this space and have a little knowledge.
- I've also studied Trader Joe's. - We can see that.
Have you read their founder's book?
- Oh, my God! - We're coming to Trader Joe's.
I am testing them.
- It's there at our desk in our office. - Good.
So, I will give you an offer.
I offer way too little on Shark Tank. Okay?
He says the same thing while offering every time.
It's our honour, sir.
You'll know that after hearing the offer.
- Is it an honour or... - We got the feedback, too.
So, I will give you two offers.
- Okay? - Azhar?
It's the same valuation.
No royalty.
One offer is
ten percent
for Rs 2.5 crores
and Rs 25 crore valuation
or five per cent for Rs 1.25 crore
and Rs 25 crore valuation.
In my opinion,
you need to rework your branding.
- Yes. - Becoming an online brand has two benefits.
One, your online sales will increase.
Second, your offline will see an uptake.
Once your brand grows a little,
franchisees will also start contacting you
to open a shop.
We can start with the distribution once it becomes a brand.
It might have a pickup. There is a chance.
We'll indeed have to work on the pricing.
It seems a bit expensive.
We'll revise our offer. Two sharks are coming together.
We'll get rid of the royalty.
The offer remains the same.
- for... - Five per cent.
- You can think about it outside and let us know. - Sure.
- All the best. - Thank you.
No royalty.
You spoke about your branding pitch.
I am fighting against Trader Joe's.
Trader Joe's!
I go deep into whatever I like.
2.5 crores for 10 per cent.
25 crores.
It's just like Anveshan.
The vibe is similar, but it's different.
We both made money on it.
Yours is ten per cent, mine is one.
[laughing]
No problem. We're still together.
We have a counter for you, Kunal.
Can you match our last valuation
for Rs 2.5 crores?
I was going to give you a valuation of Rs 20 crores.
The other founders
...are like a family.
I didn't want to be disrespectful, so I made it 25.
But I am fixed on ten per cent. I don't want to go lower.
[pensive music playing]
- So, Shark Kunal, the deal is final. - The deal is final.
Oh! Fast decision!
Trader Joe's defeated us.
With your help,
we can become Trader Joe's.
But you have that book. Why do you want another one?
I feel a little bad.
- But it's okay. - But, sir, if we ever meet...
Am I a fool?
I won't eat your 'makhanas'.
We will send it to you.
I will send you that again.
Take the cheque and leave.
I think you should say, 'We snapped this deal.'
- Yes. - Yeah.
[camera shutter clicking]
- Thank you. - All the best. - Thank you.
- The door is there. - Thank you.
All the best.
- Thank you. - All the best. Congratulations.
- Thank you. - Good job. - Have fun, enjoy.
Nupur and Abhinav, how does it feel to get the deal?
- Amazing! - Amazing?
- You don't know what's happened. Right? - Yeah.
I don't know it. It's overwhelming.
You can't digest it.
The responsibility has also increased.
- Yes. - We want to be India's first Trader Joe's.
I know what you didn't say in the tank during the pitch.
- You come from a family of female entrepreneurs. - Yes.
So, I hope my viewers know this now.
I've ordered gifts for you
from Swiggy Instamart. it was here in ten minutes.
Wow!
That was very instant. Thank you.
This is not only for you
but because you come from a family of amazing women,
these are some ornaments and purses.
They are not stereotypical products.
I also ordered diaries, books and pens.
- Thank you so much. - Thank you.
Please enjoy and keep doing
what you do. I am happy you got this deal.
- Thank you. - Thank you.
Guys, if you want anything, order it from Swiggy Instamart.
You will get it in ten minutes.
'Ask the Shark.'
...the co-founder of Snapdeal and Titan Capital.
Sir, I feel so good to meet you.
Here's our question.
My name is Kruthika. I am 29 years old, and hail from Odisha.
I remember this happened in 2008.
The company had only Rs 50,000.
We had to pay a salary of Rs 5 lakhs the following month.
Rohit, my co-founder,
and my bank account had a total of Rs 5 lakhs left.
We had two options at that time.
One option was to shut the company
or to invest all our savings
back in it
- and see what happens next month. - Okay.
Rohit and I thought over it.
We invested all our money in the company.
After all that, Rohit and my bank account had Rs 26,000 left.
If you want me to ask Sharks your question,
go to the Sony LIV app,
choose your favourite shark and send your question.
I'll meet you in the next Ask the Shark
with a new question and a new shark.