[theme music playing]
[music playing]
[theme music playing]
Sharks, what have you done in life if you've not taken a risk?
Ritesh, if you hadn't dropped out of college,
would you have been one of India's self-made billionaires?
Aman, you also quit your job at MNC
and leaped to become an entrepreneur.
That's why your boAt is floating.
Sharks, we did the same.
In 2018,
we left our 15-year-old established distribution business
Sharks, in 2018, a company that started...
...as a mineral water brand,
is now available
with many products
...through 9,700 retail outlets
And for this, our ask is
Rs. 70 lakhs for 2% equity in our company.
[chuckling]
Ravi and Tushar, welcome to Shark Tank India.
What discussions did you have in 2018
that you decided to start this business?
How did you come up with this business?
Sharks, from 2003,
we've been local distributors for Sangli city.
This is where we started our business journey.
Back then, we had FMCG brands
such as Yellow Diamond Chips and Priyagold Biscuits.
We started its local distribution in 2003.
C&F Agents means Clearing and Forwarding Agents.
They handle clearing and logistics for manufacturers.
They provide distribution support,
warehouse support, and logistical assistance
to ensure smooth delivery from manufacturers to consumers.
So, we made a network there.
This journey started there.
We also had many MNC companies, such as
Signify, which used to be called Philips Lighting.
Eveready, they are into battery making.
Zoopy Noodles from Gujarat.
While working for these companies we realised
that the companies are getting bigger and are being listed.
So, we decided that we have done a lot of distribution
in the market. We should take a risk in life.
There was nothing 15 years ago.
Why not start from nothing again?
How much were you making back then?
In the agency line, both of us used to make around Rs. 2 lakhs.
And how much was the turnover?
...what was the first step you took?
There were a couple of big companies.
I went to Pune, where Bisleri is made.
I met people who made machines.
I visited many plants.
After doing that, I told him
that if we instal a small plant, the bigger players will devour us.
If we want to start this
we need to install a higher-capacity plant
which will cost a lot.
The project will cost around Rs. 3 crores.
Did you invest Rs. 3 crores?
- Yes. - We did. We already had a land.
Where did you get Rs. 3 crores from?
Saving? Or did you take a loan?
We took a loan, ma'am.
How much loan did you take? Rs. 3 crores?
- Around Rs. 1.5 crores. - It was roughly Rs. 1.5 crores.
Did you obtain the loan of Rs. 1.5 crores against the land?
Against our house... The loan was secured against property.
- But if not... - You really took a risk. Amazing!
Good! I recently visited Rajasthan.
I bought Bisleri water there.
When I looked carefully, the spelling was different.
- Okay! - Then I realised
that there are 12 similar products and not just this one.
This market has become oversaturated.
It's a business where brands are being exploited.
How are you establishing your presence?
Water might seem like a commodity industry to you.
You will not see which brand of water you are drinking.
- You will drink any brand of water. - You will settle for the water
- available with the retailer. - True.
Did you drink 'Bislera'?
- Yes, I had to. - Here, the customer is not the king,
the retailer is the king.
- But Ravi and Tushar, I have an important question. - Yes?
For example, in the cola market, there is a duopoly.
Thums Up was launched by Chauhans.
- They had to sell. - Yes, they had to sell.
If you enter Western Maharashtra,
like Sangli, Kolhapur and Konkan.
This is a green belt.
...he won't stop to buy water.
That market is green in colour.
Now, coming to Oxvita.
When we started to cater to the area
from Pune to Solapur with the green label,
we received feedback that the product wasn't taking off.
When we went to meet the retailers one-on-one
on the highway about the issue,
they said that the customers are inclined towards and blue and white.
How did you decide to diversify into this?
In our business, carbonated soft drink...
Let's keep Jeera aside.
The other categories you see in the 2022 basket
What about the rest?
12%-15% of business comes from Jeera Soda.
- 7% of the contribution comes from our mango drink.
And in the remaining category...
We recently launched premium water called Octave.
Its MRP is Rs. 30.
And the rest of it comes from the remaining carbonated soft drinks.
All these products are from Tier 2 and Tier 3.
This is a 200 ml drink that retails for Rs. 20.
This is not something that big companies offer.
It's targeted for basket selling.
Yes!
[music playing]
Look at this! It's exactly like Limca!
- Jeera Soda? - Yes.
It's Jeera Masala Soda.
- Lahori! - Lahori has become so big.
Currently, it's Rs. 500 crores.
Rs. 500 crores in revenue.
Lahori's base is Rajasthan,
Chandigarh and Punjab. Lahori is catering
- to those areas. They've now reached Gujarat. - Okay!
But when we were doing R&D for Jeera in Covid in 2020,
we realised that there are two major players.
One is a company called Bindu Jeera in the South.
It is big in the South.
Lahori's name is being printed on papers.
Bindu never raised funds, but Bindu is bigger than them.
How much is Bindu Jeera's sale?
Approximately
- Rs. 1,000-Rs. 1,500 crores yearly. - Really?
- We won't say that, the customers... - It's not a brand's copy.
Our packaging is influenced by customer perception.
But the bigger brand is making the trend for the customers.
Sir, we don't have the budget or money...
Tell us about your sales. Silence everyone with your sales.
In FY 2024, we closed at Rs. 9 crores.
- Profitable? - Profitable from day one.
What is this year's projected sales?
We've made Rs. 4.5 crores until now. We will close at Rs. 12 crores.
Our EBITDA was 16%.
What would it be this year?
We will do 18% EBITDA this year.
- Amazing! - What was it the year before that?
It was 7.80%.
And how much is your DSO?
- Since you're likely operating on general trade. - Yes.
You get money after how many days?
When things are going well, we receive the payment within 24 hours.
In the summer season.
And during monsoon and winter,
the credit cycle goes on for 7 to 15 days.
- 7 to 15 days? - Yes.
Do you get your money within 7 to 15 days?
- Yes, we do. - Yes!
How much is the margin in water compared to other drinks?
If I talk about SKU,
if we are selling a bottle of water for Rs. 20,
we are making Rs. 1.25 on the operating level.
Currently, there is a Rs. 2 crores CC on the factory premises.
The Rs. 90 lakhs term loan for the mango line
we recently developed is still pending.
- is hardly Rs. 1-Rs. 1.2. - Yes!
- But which is still 20%. - Yes!
In Mango and Jeera, if we take the average SKU of Rs. 10,
we make Rs. 1.5 from it.
So, you keep the margin of approximately 20%.
- Yes. - You do a business of Rs. 9 crores yearly.
But how do you have an EBITDA of 17%-18%?
- There are no expenses. - What about your expenses?
There is nothing!
We do have expenses.
They are telling us the profit based on net EBITDA.
In Rs. 1.20, you put all the expenses.
- Running the factory... - Yes.
- It includes everything and there is management team. - Yes.
- Marketing... - Namita has an offer...
Hold on! Peyush, can I talk?
Let me finish. Let me finish margin and then talk about the offer.
Peyush, this is not making sense.
- Peyush, should I finish the same conversation? - Sure.
- You are making 18%-20%... - Yes.
- As profit. - Yes.
What is the EBITDA?
How we calculate is... If I am wrong, please correct me.
- Okay! - EBITDA is my net profit, my bank interest,
- and my depreciation. - Very good.
So, our EBITDA is 16%-18%.
Why? Don't you have expenses?
Sir, our processing cost falls under direct expenses.
Now tell me, considering your significant loans,
- EBITDA may not be the right measure. - Okay.
- Because you have machinery. - Yes.
- Depreciation is valid here. - Yes.
Last year, our net profit before tax was 5%.
PBT is 5%?
- PBT is 5%. - Which is the right measure
for your business. Because you have a loan
- and you use heavy machinery. - Machinery.
- More than EBITDA, your PBT measure... - Correct.
- You have 5% with you. - Yes.
This means if you generate Rs. 10 crores in sales,
- it leaves you with Rs. 50 lakhs annually. - Yes.
Thank you very much.
- You mentioned you will make Rs. 12 crores in sales
- this year. - Yes.
Yes.
I will give you Rs. 70 lakhs
- for 3% equity. - Wow!
2% royalty
till I recover my Rs. 70 lakhs.
How many distributors do you have?
We have 90 distributors
within 250 kilometre radius of our company.
And how many retailers do they have?
One dealer has a minimum of 100 retailers.
- That's around 1,000. - Yes.
And approximately how much does each retailer sell?
We take an average of one box from one retailer.
What is the cost of your box?
It is Rs. 100, sir.
- You have a built-up of 40,000 sq ft. - Yes.
You can take around Rs. 4-Rs. 5 crores against that
without giving any equity.
Then why do you want to give Rs. 70 lakhs.
Sir, as you said, we will get the money from the bank.
But we won't get mentorship and guidance.
The depth with which you understand trade,
distribution, and sales.
I don't think I personally grasp it to that extent.
How will we mentor you?
In India, I understand,
but we can't help you with Tier 3 and Tier 4.
I am telling you, sir, in this line,
COGS is really low.
What will happen if an organised player comes down to Rs. 5.5?
The thing is, water is a service industry.
If someone needs 100 boxes, we have vehicles of the required size.
That's not possible for the big players.
- The shopkeepers you sell them to... - Yes.
Do they also sell Bisleri and Kinley?
We are only in the 250 kilometer radius.
Just imagine how huge the market is. Sir, this is an ocean.
You said that if we disturb their market, Bisleri will interfere.
It is an ocean. We are barely taking the space.
If we encroach on a bigger space, it won't bother the ocean.
Currently, you don't have the scale.
Right? Once that happens, you will have two expenses.
One is the management team and one is compliance.
For that, you need to increase the price
- to maintain profitability. - Yes.
To increase the price, you need a brand.
- Yes! - Okay? For that you need marketing.
You already have six brands.
- Yes. - Out of the six brands, which one would you make stand out?
- To build a brand you need scale. - Yes!
How will you do marketing in a small area? The ROI won't come.
So, you are now in a vicious cycle.
You've done a great job at executing.
The strategy is good.
But you need to realise that your strategy is working against you.
If you want to go big, you need to build a brand.
Unless you consolidate
- and focus on one or two brands for marketing... - Yes.
This vicious loop will continue,
and you won't be able to reach above Rs. 25-30 crores.
- Yes. - Ravi and Tushar, why do you keep saying 'yes'?
- We are listening. - This is not the game of brands.
It has nothing to do with marketing.
- This I disagree. - One second.
There are two moats in this.
- The number one moat is distribution. - Yes.
- Which you understand. - Yes.
Number two moat, which is the biggest one.
- You've just captured a small area. - Yes.
You have an expertise in distribution.
It is successful.
- You have to copy and paste it pan-India. - Pan India. Right!
So don't say 'yes'. Just say
- that... - We have to give respect and listen to what he is saying.
Okay!
Basically, you are saying you will not build one big brand.
No, we will build, sir.
Aquapeya is our main brand.
Oxvita, in Covid...
Let me explain the mentality of the medical counter.
The medical counter receives water at hand's reach,
but it doesn't need to be kept on the medical counter.
In fact, we developed that brand during Covid for health purposes.
We haven't explored that line yet.
You can see that there are huge canteens in hospitals.
There is a lot of consumption.
Hospitals have turned into the hospitality industry.
We developed that brand for that.
You have a service business
because you are able to service within 250 km yourself.
If you are a regional brand and adopt a regional strategy,
then your valuation won't be 0.5 times revenue as well.
And if you make this a national brand,
then this tactic won't work.
So, you made a local business, but you are expecting
more than a pan India strategy valuation.
Brand valuation.
How much is 10 times revenue? Rs. 35 crores.
Brands get 3.5x revenue.
So, I think that's completely off.
You have an offer that is close to that.
But I am out. Good luck.
Ravi and Tushar, I think founders
should either earn
- or you will eventually learn. - Yes.
I was just like both of you around 7-8 years ago.
I started a hotel.
My dream was to make 10. I never thought beyond that.
I think you can also make a business of Rs. 1,000 crores.
I've seen many businesses
that seemed small when we first met.
Forget them, even I never thought they could go beyond that.
They say, the higher you climb, the farther you see.
I agree with Peyush.
- You should spend on marketing. - Yes.
There is no need to avoid it. It's a good thing.
- If you do that, you can make a big business. - Yes.
But for that, you need a flip.
I will give that to you.
You saw how Paper Boat was made.
- By distributing in IndiGo. - Right!
We run 10,000 hotels in the country.
- We have partnerships with many brands. - I know.
So, we will try from our end to give you the best preference.
That will make your brand a big success,
but you'll need to do co-branding with us.
If you are willing to do that, I can give you access to 10,000 hotels.
Wow!
I have an offer.
You are the insurgent who will become a Rs. 1,000 crore company.
Your ask is Rs. 70 lakhs.
I will give that to you.
But for 3%.
This is my offer to you.
It was a pleasure meeting both of you. You have great potential.
I have a slight doubt.
I got scared after seeing this.
- Okay! - When you become a big company,
they will come after you.
And entering that territory is scary.
So, for that reason, I won't be a part of your company.
Brand and scale are mandatory.
Because financially, I cannot value this business
beyond a certain revenue multiple.
If we want to turn this into a 3 times revenue multiple business,
then we need to take a bet on turning this into a brand.
That is not the case now.
So, I can't value close to 3%.
For that reason, I am out. Otherwise, I would have been in.
Namita is saying that if we do this together,
then we will give you a better benefit.
Basically, Ritesh and I will come in together.
Rs. 70 lakhs for 3% equity
and 2% royalty
until we recover our investment of Rs. 70 lakhs.
What are your concerns with royalty?
Listen to me! You are a profitable business.
- Hear me out. - Yes.
- You are a profitable business. - Yes.
- We are not asking you to give us 2x of what we've invested. - Yes.
So, that is your expense in P&L.
Out of Rs. 9 crores, 2% is Rs. 18 lakhs.
It's a rounding error in your entire business.
- It's not a rounding error. - It's an expense.
Don't listen to him. He is out.
It is 40% of your profit.
- But you are taking a profit. - He is misleading you.
I am telling you the truth.
Are you looking at the expense item or scale?
Both of us
have run high-scale, high-complexity businesses.
[music playing]
We have that much faith in you.
- This will be a Rs. 1,000 crores business. - Fabulous.
[camera shutter clicks]
- Good! Thank you! - Thank you!
The valuation was a deal breaker for me.
Because if it continues to go on like this,
at the most, the business will be valued at Rs. 25-Rs. 50 crores.
And we feel that someone might acquire it.
Just imagine, if I am Bisleri,
will I give Rs. 50 crores?
I will set up a plant for Rs. 10 or 20 crores.
And if I give them cash of Rs. 10 or 20 crores,
they will be happy with that as well.
I would say there are many such businesses in India.
There are also great entrepreneurs in India.
But to scale a business and build a brand
is not the same thing.
- How are you? - Good.
I was nervous at the start, but now I am feeling very good.
Now feeling very good?
- After securing a deal, anyone will feel good. - Yes.
Do you think these two will give you a deal or...
- We did. - Yes.
But there is one more now.
- There is one more. - Yes.
- Yes, that is good. - Yes.
- I noticed that you have every drink. - Yes.
There is no food, but I will give that to you.
Okay? I ordered gifts for you from Swiggy Instamart.
And it is here in 10 minutes.
Thank you so much. This is for you.
Okay! There are dry fruits, fox nuts,
and snacks too.
Let's chill now.
Friends, ensure nothing is missing when you are chilling.
Order whatever you want from Swiggy Instamart.
You get everything there and it gets delivered in ten minutes.
Order now.
'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.'
[theme music playing]
Sharks, when power goes off during monsoon,
we abuse those in the department.
But when the power is back,
we never think about who the magician is
who is repairing the power while it's raining.
What does he look like
and what does he do? We will see that today.
Let's meet an industrial worker.
Wow!
- Hello, Sharks. - Hi!
Such industrial workers
are provided with safety equipment to protect them
from heights, manholes, electricity, heat, and rain.
But these safety equipment have been the same for 50 years.
Nowadays, a new model of smartphones and
earphones is launched every other day.
But when it comes to critical safety equipment,
there are no departments or companies that manufacture them.
Sharks, I have to wear this helmet every day.
It makes us sweaty and uncomfortable.
I've experienced many falls in this harness.
I've also spent hours hanging at a height of 22 feet.
On several occasions, I've gotten shocked
- due to touching electrical wires. - Oh!
Similarly, there are more than 25 lakh people across the world
who pass away due to
- Oh! - We came up with Jarsh to solve this problem.
Jarsh is an innovation company
where the industry's serious safety problems
are solved with a unique technology.
We make it smart and comfortable.
Like this ActivCooling helmet.
which is used by more than 5 traffic police departments
and many industries use it as well.
- despite all the dangers associated with it. They work for us. - Hmm!
To make their work conditions better, smarter
and more comfortable is our mission.
And we are the co-founders of Jarsh.
Our ask is Rs. 50 lakhs for 1%.
All right!
- Yes. Perfect! - Correct?
- Yes! - Yes. 'I like this helmet.'
- Yes. - [Telugu] You can speak Telugu?
That is too much. I am just learning.
Why are you learning it?
She has a lot of time on her hands, that's why.
[laughing]
Kausthub, Sreekanth, Anand,
welcome to Shark Tank India Season 4.
First, tell me what Jarsh means.
It is named after JARVIS from Iron Man.
- Oh! All right! - Nice.
That's a cool one.
This industrial safety equipment
doesn't just pop up in your head.
There has to be something. Some experience maybe?
What happened and how do you know each other?
The three of us were classmates in engineering college.
...and providing services to many clients.
The helmets are uncomfortable, we can make them comfortable.
But when I got that idea,
we used to visit many factories for our services.
So, we always saw that whenever the supervisor
used to come on the shop's floor, they used to wear a helmet.
Once the supervisor leaves, the helmet is on the floor.
So, this was a problem and people didn't like helmets.
So, that's when we understood
that the technology is backward in this industry.
The idea initially started with motorcycle helmets,
but we adapted it to industrial helmets.
Recently, the news went viral that police officers are using this.
- Thank you so much. That's us. - Was it your helmet?
Thank you so much.
- Show us the video. - Show it to us.
- And do they wear it regularly? - Yes.
- Yes! - How nice. Look at them.
I loved it when I saw this.
Thank you so much.
Looks cool too.
It's nice.
Very nice.
What do you think is unique in this product?
Aman, is it heavy?
- It's normal. Not too heavy. - It's not an issue.
It's manageable. It can get used to it.
The benefit of it
...makes them feel better.
- It feels good. - Thank you so much.
- And it's cool. - What about the noise, Aman?
You get used to the noise too.
I think the main thing is
that everything else is fine
if it helps you cool down in the heat.
I think it's a beautiful solution.
- It's my personal view. - Thank you so much, Aman.
- Do you have two more helmets? - Yes.
Let him try them too.
Give them to me.
Aman, that's with the battery pack.
It has an extended battery pack for it to run for more hours.
How many hours does it work for?
It works for 10 hours if you put it around your waist.
What if we don't put it around the waist?
It runs for two hours.
That's too much weight.
- They don't use this in factories. - Correct.
They only want a helmet.
Those are not the target customers.
- Once we talk about customers, I will answer. - We will get to it.
We attach this from behind.
Attach it.
[music playing]
- Heavy? - Not bad.
Is this the same thing
- in a detachable battery? - Yes.
- Yes! It's a variant of the... - Okay!
Thank you so much.
Good!
The second variant is a welding helmet.
It comes with a welding shield.
That is a use case, but it has a small market.
The product is positioned
for use wherever there is a factory or a worker...
You mentioned the police.
They work outdoors or under the sun.
Wherever there is a heat stress problem,
this serves as a portable solution for managing heat stress
in the form of a helmet.
These guys are used to the weight.
And the sound goes down to zero
because ambient machine noise is extremely high.
Is the safety provided by a regular helmet
the same as that in construction and material?
Absolutely! This entire product, with all its fittings,
is tested and certified according to IS...
Does that also regulate the temperature of the entire body?
Won't it be disconnected? The head is cool
and the rest of the body is hot.
When we go jogging
or return after being out in the scorching sun,
the moment we see an AC or a fan,
subconsciously, without even thinking,
we direct it towards our head.
As soon as the head cools down, we start feeling calm and composed.
In fact, there's an old saying in Hindi.
- Yes. - It says, when a person is at ease,
their feet are warm, their stomach is soft, and their head is cool.
- Oh wow! - Well said!
Wow!
Lovely!
Excuse me, could you show me that electricity device?
Sharks, this is SmartVolt.
It's a non-contact voltage detector.
- Is it a detector? - Yes.
Let's assume it's raining and the electrical poles have fallen.
You wouldn't know which pole
still has the power supply and which one doesn't.
This device directs EMF and buzzes
...die due to electric poles.
With the help of this device,
even before we approach the live wire, it warns you from a distance
- of 10-15 feet. - But one thing is not clear.
If there's electrical equipment,
and someone needs to go repair it,
they will have to approach it.
And if they are wearing this, it will start beeping.
There is a smart pause button here.
Is there no other company in India doing this?
No one is making a similar helmet as ours.
And about SmartVolt,
there is an imported product called Honeywell that is sold in India.
But it doesn't have many features that our product has.
It's a basic version.
And which among these products
has already started to sell
and is being regularly ordered by the customers using it?
The first product we had launched was the AC helmet.
We have already created
a pipeline of 50,000 to 60,000 pieces
Who are the customers placing orders worth Rs. 1.5 crores last year
and Rs. 4 crores this year?
Our biggest adopter in success story
has definitely been the police department.
Do you have any other customers except the police department?
What is the scale of Vedanta's order?
Vedanta started with 2-3 pieces. They bought 20 units now.
So would you say that it is still not in pilot mode
- even in the industrial use? - Yes.
What is selling price of one helmet?
- A regular helmet is sold between Rs. 200 to Rs. 400. - Okay.
On average, the helmet we sell at Rs. 17,000
is manufactured at around Rs. 4000.
When you make it at a higher scale.
- As of now, you are manufacturing around 100 helmets. - Correct.
How much will the cost price reduce if you manufacture 1000 units of it.
The making cost will reduce from Rs. 4200 to Rs. 3500.
But if the scale demands a reduction in the making cost, we will do it.
We can manufacture it at Rs. 3000 and sell it at Rs. 8000.
But it will burn the sales and marketing.
And we can always raise money to compensate that burn.
But that's not the path we took.
Initially, we wanted to scale profitability.
Absolutely right! Higher the scale, lesser the cost.
But he is saying that the cost reduces by just Rs. 1000.
He doesn't know how much it can reduce with a higher scale.
That's when we need guidance from experts like you.
Your strategy of market skimming,
that's selling at a high price with no competition to maintain the profit
is good I think.
Market Skimming is a pricing strategy
where you keep the selling price of the product quite high
so that early adopters
buy it and you can gain maximum profit.
You will reduce the price
as soon as the competitors enter the market.
The best and most common example are smartphones
which have a lot of advanced features.
The selling price is high at the launch
and then reduced
when competition begins.
- No! We will make a profit. - Profit.
Getting onto what we spoke about in the start,
about the loss of 2.5 million lives,
we hold a big impact on them.
Which industries have the maximum safety driven loss of lives?
Before, I answer this, I would like to introduce our third product.
That's where maximum loss of lives happen.
And this is a product that we are launching in three months.
We called it as LineSense and Smart Carabiner.
Typically, maximum deaths happen while mining.
And the second biggest is during falls.
When someone works falls while working on a height.
The fall equipment,
- the one Anand wore, is a harness. - Correct.
And when you are walking on a very high roof,
if you fall down you need to hook yourself somewhere.
You hook yourself onto a steel line which looks like this.
- The steel line is called as fixed line system. - Right.
There are a lot of problems in the fixed line system.
If the line is too tight,
it might seem to be right but it snaps if somebody falls.
[indistinct]
We have automated it.
We have put a sensor called LineSense on the line.
...and immediately sends an alert when it is going
in an unsafe condition marking this line as unsafe.
Secondly, using almost
80% same technology with a different application,
we are making a Smart Carabiner.
The block at the bottom
is to be pulled in and attached to yourself while working at a height.
This block has the same issue
that many times while working, people fall normally.
Most of the times, 30 to 40 minor falls take place.
The integrity of the block is gone
and when I actually have a bad fall, the block fails.
- Got it. - I got your product.
Tell me, how is the equity split out between the three of you?
How have you raised it? Quickly tell us about it.
The three of us equally hold 56% of the equity.
We took a long term Angel investor on board
who is a college senior. He owns 18% equity.
How much money did he invest in exchange for 18% equity?
Rs. 1.1 crore.
- What valuation? - Rs. 4.5 crores.
Okay. And tell us more.
- When did he invest? - This was in Jan-2022.
In Feb 2023, we raised a pre-seed round
led by Mumbai Angels and BITS Pilani.
- My co-founders are from BITS Pilani. - Very nice.
8.5 is with pre-seed.
At what valuation was it done?
That was Rs. 1.5 crores at 13.5 post-money.
And now you have come here with a valuation of Rs. 50 crores.
We did raise another round in May.
It's a seed round. We've raised 4 crores at 30 crores post-money.
Don't you have an ESOP pool?
ESOP is at 4%.
What is the capital in bank right now?
About Rs. 3.5 crores.
I think I liked how basic and clear you are.
- Thank you so much. - You seem to be very sincere.
Thank you.
I think your DNA is Engineering and Design services.
I don't see any expertise in sales distribution and marketing.
- But I wish you the best. I am out for those reasons. - Thank you.
I'll make you an offer.
I'll make you Rs. 1 crore for 5% equity.
I like your thought process of being very clear.
I think you are getting distracted and I don't think you want to be.
Absolutely! You're right.
But it is the nature of a human. We all go through that journey.
But I really like you and the humility.
I really like the focus of solving the problem
ground up, but it's a long journey so that is my offer.
Thank you so much.
Firstly, I'll tell you in your language only.
[speaking in regional language]
Thank you so much.
My offer would be
Rs. 50 lakhs for 2% equity.
I would also like a 1% royalty on sales because you are profitable
till I get Rs. 50 lakhs back.
Congratulations! Your valuation has increased to
- almost 25%. - Keep in mind the royalty.
That's just 1%.
I think I must give you an offer because I know
that you will create the right value with right guidance.
My offer to you is Rs. 1 crore for 3% equity.
Thank you so much.
Why do you want to dilute even more? Let me revise my offer.
Rs. 50 lakhs for 1.5% but the 1% royalty stays.
And you must not be paying royalty.
That I disagree.
Sir, my offer is very simple.
Rs. 50 lakhs for 2% equity. That's a simple valuation of Rs. 25 crores.@@@
[suspenseful music playing]
If all of you could combine, it would be really helpful.
You could bring variable R&D
As she said,
- a lot of dilution has happened. - A lot.
We can do that in the further rounds as we are always together.
We will revise it to Rs. 1 crore for 3% equity together.
But I want an answer, guys. It is getting too much.
I will come alone. You came up with 1% offer.
I will close it. Just say yes or no. Otherwise, we are done.
Okay? Rs. 50 lakhs for 1.5%.
I will always seek out for further investment.
But, today, we will choose Aman sir.
[chuckles]
I liked these entrepreneurs.
I liked their style of working.
I liked the way they spoke and I know they have started right.
People like these
are the ones who make it big.
They are doing such a great work.
- They are creating a nice impact. I've seen it... - [camera clicking]
When policemen will use
their products while standing in scorching heat,
it will reduce their cost and it can be distributed all over India.
It is a product worth
doing.
Aman sir's experience with Boat...
That hardware is also useful in many industrial applications.
His R&D setup will help us a lot.
And our R&D is also finding its way.
We need guidance to set the profits and ecosystem.
And that's where we had been struggling.
His guidance will help us a lot.
[music playing]
Welcome to Acko changemakers
where we really welcome change.
And we saw a beautiful example of the same on our change makers wall.
Technology is not just innovation
but it is also a way of bringing big change in the world.
Kausthub, Sreekanth and Anand. Friends, how are you?
Good.
- Welcome. How was the pitch? - Very nice.
Among the viewers who are businessmen or factory owners,
what changes can they bring
in their working ecosystems
that ensures the safety of their workers
and also improvise their working conditions?
Most factories in India
consider safety only as a section they have to comply with.
But when a working boy or girl lose their life,
their family is affected for generations.
- Yes. - I suggest factories to not consider safety as a mere compliance
but keep in mind that we must not take away the life of a person
who is giving us the life we live. It's not fair.
What a great answer!
And I really respect you for what you guys are doing.
This is a change that we need.
Just like that, Acko has come up with a revolutionary change
to change the landscape of insurance,
for example, 100% bill payments in health insurance
so that the customer doesn't have to worry
about out-of-pocket expenses while claiming their money.
Respecting the change,
we want to gift you something from Shark Tank and Acko.
Congratulations!
We really appreciate the change you're bringing.
Thank you so much.
[camera clicking]
[theme music playing]
Hi, Sharks. In the world full of Noobs,
- everyone wants to be an OP. - An OP?
But you need suitable gears to become an OP.
Without the right gears, you can't be an NPC
or an OP.
But the high costs of gaming can burn your pockets.
A console worth more than Rs. 50,000
and games worth Rs. 3000 to Rs. 5000.
Their prices will give you a headshot on your pockets.
And after playing the game for once,
the life of your gear is over.
But, Sharks, just like your player
gets a new life in every game,
just like that, Dacby gives
a new life to every gaming gear.
Dacby is a re-commerce platform for gaming
where the gamers can sell their old gaming gears
for an instant payment.
...will be the talk of the town with emerging sports.
The value of this industry is more than Rs. 20,000 crores.
And when Dacby makes re-commerce in gaming accessible,
then the sky is the limit.
My vision is to make Dacby the MVP of India
and South-East Asia in the coming five years.
The Most Valuable Player!
And for that, my ask is
Rs. 75 lakhs in exchange of 2.2% of my company.
Welcome to Shark Tank, Ayush.
Where are you from?
I am originally from Kanpur.
But my office is in Gurgaon.
Okay. And what is your qualification?
I was studying CSE at IIT Jodhpur in the batch of 2023
but I dropped out after a year
because I wanted to do business.
I dropped it and tried some business ideas.
One second! Didn't you take a drop because of your current idea?
You dropped your education and then started thinking about business.
Wow!
And what business did you start after that?
I made a software
to reduce the waiting time of the people who go for dine-in.
I went to Bangalore
and installed the software in 50 restaurants.
I used to re-sell the games in the console.
I thought of pursuing it as it was also my hobby.
That's where I founded Dacby in Feb 2022.
Dropping IIT is a big thing, bro.
You could have done this simultaneously.
I assumed everything to be quite easy.
I thought I'll earn millions in two years of starting a business.
I was too ambitious back then.
Would you complete your IIT if you could go back in time?
You have no regrets.
Do you still think you did the right thing?
Got it. Tell us more about Dacby.
It is the same system like Cashify.
Every product is listed
along with the prices at which we purchase them.
After refurbishing the inventory, if needed,
we re-sell it.
- Do you re-sell it on the same platform? - On our app and website.
Let's have a look at your website.
That's our app.
Most of the orders are placed through the app.
Are you the sole founder?
Let me take you through the journey of selling it.
If you wish to sell any console.
All the consoles are listed here.
For example, you want to sell this.
All the prices are dynamic and follow an algorithm.
You went through the prices and clicked on sell now.
Then you entered the address.
which is chosen by 5% customers
where we pay you extra money.
...along with the selling process and will get picked up in 24 hours.
Who will verify it?
It will get picked up
and go to the warehouse for QC.
What is your scale of orders for now?
We complete 1500 orders monthly
with a sales of Rs. 30 lakhs.
You sell 1500 products?
Total orders are 1500 out of which 900 are sold to the customers
and 600 units are purchased from the customers.
You must mention that.
You can't add it twice for sending it to the distributor.
That makes it 900 orders.
- And are you making any profit? - No.
What is your monthly loss?
Last month, I made a loss of Rs. 20,000.
But I lost Rs. 3 lakhs and Rs. 5 lakhs additionally.
So an average burn of Rs. 5 lakhs
You said you are a single founder.
Who is financing this?
We did raise funds.
Six months after incorporation, we raised our first funding
which was Rs. 1.2 crore on a valuation of Rs. 15 crores.
In June 2023,
we raised Rs. 37 lakhs.
- At what valuation? - Rs. 34 crores.
Rs. 34 crores! That's the valuation today.
In November 2023,
under Startup India,
we received convertibles worth Rs. 50 lakhs.
But then, you say, 'We.' What does that mean?
No. We were three founders in the beginning.
- Oh! Say it that way. - We split a year ago.
- Were those two dropouts, as well? - Yes.
- From IIT Jodhpur? - Yes.
What happened, then?
All our friends
were from IIT.
Nobody got a job.
When everyone started getting competent salaries,
many conflicts arose. They felt forced to drop out.
- Oh! Did you force them to drop out? - Did you do that?
Do you agree?
He's proud.
What happened later?
The issues grew so much that only one team could stay.
Then, I gave them an exit for Rs 20 lakhs.
- How did you make the money? - Where did you get it from?
Rs 20 lakhs was a debt
- from another company's founder. - Oh, wow!
I like your father.
First, he gave you a game in exchange for getting marks.
Then, you dropped out of IIT. He didn't say anything to you.
Then, he gave you Rs 20 lakhs to repay your loan.
He is ready to sell the house if I need money for my business.
- Wow! - Oh, wow! Amazing!
Are you their only son? No siblings?
I have a sister. She's studying at IIT.
She's in her second year.
- Please don't ask her to drop out. - Please don't ask her to drop out.
I am scared of you now.
Is this an ongoing global model
you're trying to copy in India?
- Its global player is gamestop.com. - Games?
Gamestop.com.
- Gamestop? - Yes.
Tell us about it.
They earn a revenue
- of 5 billion USD yearly. - I see.
That company is not doing so well currently.
They used to have multiple physical stores.
After Covid struck, people weren't too keen
on visiting physical stores. Their stocks are currently down.
The second thing is that
they were depending on physical CD games.
When people shifted to digital,
their revenue went down.
Are you trying to replicate a business that isn't doing well?
It is not doing well currently.
But they will also recover.
Many companies might be receiving products for repair.
We also are a part of the gaming category.
We have a series called Immortal. We sell that.
Many of our products are returned, too.
You can sell those, too.
Aman sir, I've not tried this yet.
But I have finalised a deal with Cashify recently.
I met their founder, and he liked it.
So, our procurement will now also be through Cashify.
I see.
What will Cashify do for you?
Whoever visits Cashify
to sell their console will be redirected to Dacby.
But the console market is too small.
Our gaming market
is from 2.5 billion dollars to 3 billion dollars.
80 per cent of it is cell phone and real money gaming.
10 to 15 per cent of it is PC gaming.
Only 5 per cent of it is console gaming.
The console gaming market is not so big as of now.
I, too, must focus
on the bigger market if I want the company to grow.
So, the next step,
which will be in a month or two,
is to enter PC gaming.
The first reason is that I got its domain at a cheaper rate.
- Thinking like an entrepreneur. Well done. - Amazing!
The second one is
that when I made the dining software,
my professor named it Dining At Canteen By You.
- Dining At Canteen By You is not reselling games. - Oh!
But Dacby is a catchy name.
Dining At Canteen By You!
You're fulfilling 30 orders a day currently.
How much is its marketing cost?
Our marketing budget was Rs 5 lakhs,
including buying and selling.
Our gross margin is 24 per cent.
Suppose our sales was of Rs 100.
Out of that, 76 per cent is COGS.
Around 15 per cent is marketing.
13 per cent is for salaries.
Four per cent is for rent and warehousing.
Another 4 per cent is operational cost.
2 per cent is spent on IT. Other costs are around 4 per cent.
So, the burn comes up to -16 per cent.
I wanted to ask you something.
Do you have some cash in your bank right now?
- Rs 15 lakhs. - Do you have Rs 15 lakhs?
You have runway.
It's a little less, but I can manage.
You can manage!
[laughing]
Your honesty is brilliant.
Are you confident you can manage it?
Yes.
The market you are in
is too small.
As far as I understand, console gaming
is not increasing much in India, although it might be on the rise.
But how much can it grow?
How much money do you personally have right now?
- Around Rs 4,000 to 5,000. - Oh!
Do you only have that much? Don't you get a salary?
I've not taken it for a year.
How are you managing your house?
I take pocket money of Rs 30,000 from my family.
I hope you're not joking.
Is that all you have?
Yes. I will adjust.
You are a fighter.
Ritesh, he reminds me of you.
Is there anyone else in your team?
I have 16 people.
16 people?
- Yes. - What is their salary?
An average salary is Rs 23,000.
I give away Rs 3.5 lakhs monthly as salaries.
You will be fine if you know
what you're doing and learn from it.
Continue learning, and keep going. Best of luck. I am out.
This decision is hard for me.
- Namita told me earlier. - Yeah.
I didn't have a place to stay. I used to live on rent.
My parents would've called me home had I called them.
Your background is fascinating.
Look. Your issue is that it's unclear
whether your business is a feature or an industry.
Unfortunately, I am out because of that.
Your personal situation seems challenging.
So, our family office has a fellowship program.
We give away grants in that.
We don't take equity in that.
We will give a grant of Rs 10 lakhs in that.
But don't use that money for your company.
Use it
to improve yourself.
I know you will find a good business with that.
I wish you all the best.
Thank you, Ritesh sir.
Unfortunately, I am out because of the valuation.
You said,
You have confidence
and crazy courage.
Phew! Amazing entrepreneur!
I wish you all the best.
Please take advantage of his fellowship.
I hope you succeed, and we will soon hear your story someday.
This industry is good.
The industry is excellent.
But my view is a little different.
You went to IIT and left it. That was your gravest mistake.
[tense music playing]
You asked your friends to drop out. That was another mistake.
You took money from your father. Another mistake!
Calling you a good entrepreneur will be a mistake today.
You are not a good entrepreneur.
You cannot do entrepreneurship.
I am being honest.
You are too raw.
You are still naive.
My suggestion to you is to stop running a business.
Work hard and take up a job.
You can get a job if you try. But you don't want to try.
Aman sir,
something good will take place
in this business in some years, if not now.
Yeah!
I want to try some more.
Do it. I feel you're going wrong.
That's all I want to say.
- And your decision is? - Unfortunately, I am out.
All five sharks are out.
Thank you.
[sombre music playing]
Hello, Ayush.
- Welcome to the PokerBaazi zone, where you can hold the cards. - Hi.
Poker is similar to business.
- and improve your skills. - Yes.
- Setting their priority is crucial. - Yes.
You should choose five functions from these ten
according to your priority.
Rank them from Royal Flush to Flush.
- The first would be Operations and logistics. - Sure, place it.
Very interesting! Okay.
- Then, customer service. - Customer service!
Importance! Straight flush!
Then, Quality assurance.
Okay. Four of a kind.
Tech and product.
Tech and product are essential.
- Marketing. - Oh! Marketing?
At flush! He still hasn't opted for Team culture. Take a look.
That's why his friends abandoned him.
Jaquar presents Bringing good ideas to life.
Shark Tank India has seen a new wave of entrepreneurs.
These entrepreneurs are setting new trends with their ideas
and solving tedious challenges.
Some are trying to organise their industries.
Some are creating new categories and opportunities,
just like our sharks.
Don't you remember?
No problem. We'll watch it.
Oh, wow!
'Indian clubs are the world's original workout tool.'
'We not only make clubs,'
'but also teach how to use it.'
'C'mon, Sultan. You can do it!'
'Swing! Lift!'
'Oh!'
'Welcome to play with Imagimake.'
'We make games, puzzles and DIY kits'
'for India and children worldwide.'
- 'Our customer sales last month was Rs 4 crores. - Woah!'
'We will touch Rs 28 crores this year.'
- 'Our last month's sale was Rs 2.63 crores. - Gosh!'
'We will close this financial year at almost Rs 23 crores.'
'Our net sales was Rs 1 crore in an hour.'
'That is a dream for a lot of businesses.'
'Sharks, I come from a business family.'
'We have only one rule. See a problem? Solve it!'
'Today, I can proudly say'
'that I've funded my graduation, MBA'
- 'and entire life with that business. - Wow!'
'By the way, I have to tell you'
'that I've played with many of your products.'
'Solid! I love this new India.'
'You will make India the greatest country ever.'
'You are a firecracker.'
'I am starting to feel that'
'extraordinary is the new ordinary.'
All the pitchers proved one thing.
Proudly made in India for the world,
just like Jaquar.
The Shark with us today is very encouraging.
He claps when a flight takes off and says, 'Come on! You can do it.'
Sir, this question is by Barkha Kumari from Vishakhapatnam.
I feel delighted that
the question has come from someone near our house.
Ms Barkha,
I feel fortunate.
See you in the next Ask the Shark with a new question and a new Shark.