[theme music playing]
[music playing]
[theme music playing]
Sharks, before we start
I would like to introduce you to my friend Anshul
who wants to show you something.
Hi, Anshul.
Amazing!
Your dribbling is also good.
Sharks, what you just saw is the future of prosthetics.
Gone are the days when our specially-abled community
had to use crutches or a bad quality long stump foot.
Therefore, we bring to you, Fupro.
Fupro is a healthcare brand
where we create high-quality and affordable prosthetics
through groundbreaking research and innovation.
Its special elastic material
provides a spring-like functionality,
similar to a natural foot.
Sharks, this was just a trailer.
We produce around 20 similar products
that are designed and manufactured in-house.
All our products
are 50%-80% more affordable
compared to international benchmarks,
without compromising on quality in any way.
...get good-quality prostheses.
We are the only ones who have developed
all prosthetic technologies under one roof.
And we made it accessible for everyone.
Sharks, we've already empowered 15,000 people.
We started with prosthetics,
but we won't stop here.
Our vision is to create the right products for every special need,
from vision and hearing impairments to paralysis.
[music playing]
- Sorry to hear. - Through this medium, I would like to say
that we hear so much about motorcycle accidents
- that it's become scary. - Yeah!
- Since when are you using Fupro? - From the last four years, sir.
- Have you tried other brands? - Yes, sir.
What do you think is the difference between them and this?
Sir, it's cost-effective.
And it's lighter in weight.
Sir, prosthetics have levels, K1, K2, K3 and K4.
K4 is considered high-end
in comparison to the K2 and K3 levels.
Basically, it's designed like a blade
which gives you extreme spring action.
Not everyone can use it easily.
You get a sudden jump.
There are chances that you might fall.
- Can you use it? - Yes, sir.
Sire, I am an athlete. I am a national medallist
- Oh, wow! - I am a paraglider pilot, as well.
- What are you saying? - And a para mountaineer.
Fantastic.
Were you doing it before, or did you start recently?
- Sir, I started post-accident. - Okay!
Prior to that, I was preparing for defence.
- Okay! - I was an NCC Cadet.
- Very proud of you. - After that.
Sorry, with what happened,
But you turned your obstacle into an opportunity
- and you became an athlete. You are very positive. - Thank you!
Thank you, Anshul.
Thank you, sir.
- Thank you, Anshul. - Take care, bye.
Team Fupro, welcome to Shark Tank.
The best validation for any business is a happy customer.
So, the way Anshul appreciated your products,
and the way it changed his life, it's fantastic.
- Thank you, ma'am. - I want to ask you about your journey.
Over there, we were a part of the Formula student team.
We used to make race cars.
I had designed
and manufactured a race car.
We used to go to Germany and compete
in international level competitions.
After that in 2016,
my knee surgery took place.
Then I truly understood how challenging it is to be immobile.
It compromises your freedom.
So, I felt that I needed to be independent
so that I can do things on my own, instead of depending on anyone.
And I am a patriotic person.
My dream of joining the army wasn't fulfilled.
But I clubbed these two
because I want to empower
our soldiers who lost their legs in a war.
And then I started it as a college project.
I've completed BTech in Electronics and Communication...
...who is good in electronics, because he was in mechanical.
We started this as a college project.
In BioAsia, 2018,
we were voted as the top startups to look out for in 2018.
Along with that, there was a competition for engineering projects
called Quest Global.
We were 2nd runner-up in that competition.
So, when we got all of this, we got a lot of money also.
We got Rs. 25,000 from Quest Global.
VIT gave us funding of Rs. 1 lakh...
...let us take this a little bit forward and do something with this.
Tell me something.
You said you were appreciated at MIT and you won an award.
What were you given an award for?
As far as I understand, these things exist.
So, what were you given an award for?
It had sensors
that could adapt to the user's movements while walking.
- But we didn't see those products today, right? - No!
So, that was the college project.
When we started our company,
we put a lot of research into it.
And we created prototypes and kept them aside.
- Got it! - Because we understood that
the Indian market is not ready for this product.
- It will cost around Rs. 7-Rs. 8 lakhs. - Okay!
So, it's very expensive for the Indian market.
Then, we came up with products that the Indian market needs
with improved quality at a price that the market needs.
- We are... - Did you stop working on those products
- or is it going on? - It is in the pipeline.
- We will do that in the future. - Got it, thank you.
So, you're aiming to provide better quality
- Could you please tell us about your competitive landscape? - Yes.
Our competition mainly consists of foreign players.
Aren't there Indian brands?
So far, Jaipurfoot has been the leading competitor
in the market.
And this SACH Foot
is made by other companies in India.
But what differentiates us from them
is that SACH Foot uses polyurethane as its core technology.
Compared to Indian competitors,
our products are approximately 10%-15% cheaper.
You mentioned that it is 50%-80% cheaper than foreign brands.
Can you compare your products to theirs
in terms of features and technology?
The competition's Carbon Fibre Foot
[music playing]
- Which one? This one! - This one is the Grace Foot.
And this costs Rs. 18,500.
No! I am talking about the foot alone.
If you add all the products it comes to Rs. 30,000-Rs 35,000.
- Can you show me how you assemble it? - It's amazing.
You can use this.
- This one? - Yes.
This here.
Is this foot sold separately?
- Yes. - And what is this priced at?
Ra. 18,500.
- And do you have to buy this separately? - Correct.
And this is separate.
Doctors make this. It's customised according to the patient.
- You don't make these. - No, we don't.
How much do these two cost?
Roughly, Rs. 24,000.
What is so special about this? I don't see...
There is no flexibility in the ankle.
- Correct. - For example.
And I don't see
any absorber or shock-absorber technology in these products.
So, what's the key? I am not able to understand.
The front...
It is highly flexible and is an elastic material.
- And its functionality... - Is this what Anshul wore?
Yes, he was wearing this. So you can see this.
I don't see any movement or mobility here.
Or even here or here.
So, movement and mobility come to work when there is weight.
Around 70-80 kg
weight has to come on it. And because of that weight,
this C-shape will bend.
So, compared to carbon... Carbon Fibre Foot
is a foreign product.
So, this material is also flexible.
- And the strength is also equivalent. - Which material is it?
It's an elastomer.
I have been doing programming since the seventh grade.
When I was in college, I was one of the best programmers in the country.
- Fantastic! - Wow!
So, what we've done is
we've done machine learning and AI in product development.
...and set constraints,
such as size and the weight that will be put on it.
This model generates multiple designs,
tests them and simulates walking patterns.
We have three kinds of SACH Foot.
One is Grace Foot. Foot range contributes to 20% of sales.
Compared to this, how much does Jaipurfoot sell it for?
many people tried to disrupt Jaipurfoot.
But that is what is sold in India.
- Correct! - What's the reason for that?
Actually, that is a great product.
- I personally love that product. - Yes.
Let me explain a bit about the anatomy.
I would prefer to answer this from a biomechanics perspective.
Our heart is on top and our feet are down.
So, our blood flows from top to bottom through gravity.
But how does the blood travel from the bottom to the top?
The blood moves upwards due to the compression
of the calf muscles, which push the blood upwards against gravity.
Now, when the leg is amputated,
the calf muscle is lost.
Now what is pushing the blood up?
Nothing is. The heart has to pump blood from one side,
- ensuring blood flow from the other side. - Okay.
So, what happens is
your heart rate increases.
And because of that, there is an increased metabolic rate.
- It results in blood pressure problems. - You are right.
So, your body part was amputated,
and now you have blood pressure problems.
And you have all the secondary problems like
- anxiety, depression... - Absolutely right.
Listen, I am interested in this because
an incident took place in my family a few years ago.
My cousin came under a train.
And he lost his hand and leg.
Unfortunately, I was carrying his feet in a bag
to see if they can attach it back.
Eventually, we used prosthetics.
But I want to validate what you said.
You mentioned heart rate problems.
These are very real.
Because that's exactly what he's going through.
We didn't know that it was because of this action.
So, I just wanted to thank you for educating me about that.
We will research more on this.
- And I'd like to stay in touch to try and help him out. - Yes.
So, just to answer your question, Anupam.
One parameter we consider
for a prosthetic foot is that it should be flexible.
But actually, flexibility is only half the story.
It should also return within the same amount of time
as the walking cycle requires.
For example, if I compress a spring and a foam
to the same level,
both will compress,
but one will return quickly, while the other will take its time.
You are saying that,
compared to the JaipurFoot, your product
- returns to its original position more quickly. - Yes.
This phenomenon in prosthetic terminology
is known as energy storage and return.
ESR.
In Grace Foot, there is a significant component of ESR.
But are the patients and clients
able to understand something so technical?
Or do they only look at the price?
They feel it.
When they think that this product is pushing them,
I am able to walk more.
But Nimish, is this decision maker a patient or a doctor?
I mean, I am sure
that the patient goes to the doctor and the doctor decides.
And ultimately, your customer is the doctor and not the patient.
- Yes. - Yes, we sell it to the doctors.
What is the market size?
It is a Rs. 15,000 crore market
Cyril and Nimish, tell us a bit about your business.
In the financial year 22-23, we were at Rs. 2.16 crores.
In financial year 23-24, it was Rs. 2.50 crores.
In 24-25, our projected sales is Rs. 5 crores.
Why is the growth so slow?
Rs. 2.16 crores.
And the following year, there was only a 20% growth.
The figure of Rs. 2.5 crores
came from our operations in 2022-2023.
Initially, we sold directly to P&O.
PAN India freight and ensuring timely delivery to customers.
So, we decided to switch to a distribution model
by working with distributors.
So, in 2022-2023,
when we had a sale of Rs. 2.16 crores,
we had appointed distributors
who sold surgical products.
We chose distributors and sold our products to them.
However, they lacked the right connections
and product knowledge to effectively promote and sell those products.
So, they had the stock.
And then, when we were selling in 2023-2024,
we had to sell off some of the stock from the previous year as well.
So, effectively, in 2023-2024, we could have actually done
around Rs. 3 crores in sales.
Can you just tell us
the bottom line for this year and how it's trending?
But start from the previous years, from FY22-23.
FY22-23, our EBITDA was 15%
FY23-24, 0.3%.
And this year, we are targeting 20%.
Currently, how are we doing now? In the first 6 months,
you mentioned a sale of Rs. 1.5 crores.
- How much is your gross margin? - The gross margin is 45%.
- Got it. - Are you bootstrapped?
We are bootstrapped.
Who invested in the business?
We invested our money
and we have a third co-founder.
What?
We have a third co-founder.
How much percent does he own?
He has 40%.
Okay, how much do you both have?
We have 35% and 25%.
But that person has more
individual shareholding compared to both of you.
They are our financial partner.
So, initially, when we started out,
Ashmeet Kaur, who is our third partner,
was Nimish's family friend.
And we needed somebody who could invest money.
So, they were interested
and they said they will invest money
and become strategic partners.
- They will support us with the business and help us out. - Okay.
But they will not be working partners.
But that doesn't make them a co-founder.
She is a founding shareholder.
Founding shareholder.
How much did she invest?
She has invested Rs. 2.5 crore.
Why did you ask for a Rs. 60 crores valuation
with sales of Rs. 2.5 crores in the prior year?
With Rs. 5 crores in sales, we applied an 11 times multiple.
That is Rs. 55 crores.
And plus Rs. 5 crores for patents that we have.
How do you plan three years from now?
Currently, we are working on lower limbs in prosthetics.
...that you are creating a better solution
for Indians who are struggling with accidents
regardless of the type of accident they've faced.
However, I feel there's a gap between what you're saying
and what you're actually doing.
For instance, in the beginning, you mentioned how patriotic you are
and how you wanted to
help the army and soldiers.
But after that, that point wasn't revisited.
You also mentioned using AI and ML.
And your eyes lit up. Right?
You were like a little child
who could not contain himself.
But these two things are not your business anymore.
I think that maybe the 40% owner of this business
who is not involved is behind this.
Because they have invested the money and they want a return.
But the path you're taking,
I don't think it will lead to significant returns
in a commoditised, small market like India.
For those reasons, I am out. Good luck.
Thank you, Anupam.
I really like you guys.
You have introduced innovation in every product.
You've really applied your mind,
understood the competing products
The company's cap table...
The shareholding structure has to be recapped.
I feel the Rs. 2.5 crores that your existing investor has invested,
she should get 25%
for Rs. 2.5 crores she invested.
The rest, 15%
should be split equally between both of you.
at a Rs. 20 crores valuation.
Because I feel today
the revenues of the company are in this Rs. 3 crores range,
give or take.
It's still a 6-7 times multiple,
which is more than fair.
If you need more money in the future, I will give it to you.
You don't worry about that. We will make a big company.
You can think about my offer if it makes sense.
Okay! Ritesh and I would like to make you an offer.
We will give you a valuation of Rs. 12 crores.
- We will come in at Rs. 60 lakhs for 5%... - Rs. 12 crores...
Thank you so much, Namita and Ritesh, for your offer.
But I would like to hear Aman's offer as well.
I love competing with global brands.
Right? Indian brands can do crazy stuff.
And I think both of you are capable of making a global brand.
- Yes. - I don't know much about your industry.
So, thank you for educating me.
I am confident about Anshul.
I doubt he can lie. There was truth in his eyes.
I strongly encourage you to revive the project you discontinued.
It holds great potential.
I feel that is your real dream project
- that you discontinued. - There is more to it.
Yes! I feel the same way.
So, I will give you Rs. 60 lakhs for 3%.
- The valuation is Rs. 20 crores. - Please go ahead.
- Please go and be back soon. - You have three offers.
- What do you want to do? - You tell me.
Should we accept Aman's deal?
We will mention that your valuation is really low.
This year's projection is Rs. 5 crores.
We will do Rs. 4-Rs. 4.5 crores easily.
Kunal, you are thinking so much.
He's calculating permutations and combinations to figure out
what counteroffer to make.
I rarely make deals, but when I do,
- I am serious about it! - You think about it.
[music playing]
Whoa! Welcome back.
Thank you for all your offers, Sharks.
So, we have a counter.
We would like all the Sharks to come together
for Rs. 60 lakhs at 3%.
- I think it will be good for them. - I am out.
For that deal, I am out. My deal is still on the table.
Regarding your deal, we started with them.
We don't want to change their shareholding.
- Because to an extent, we think it's a little unethical. - Good!
- Correct me if I am wrong. - Well done.
I agree.
But yes, we would like all four Sharks to join us
at Rs. 60 Lakhs for 3%.
Kunal is not ready for that.
- I am sorry. - Your condition is difficult for us.
I understand.
Now, all three of us want to join you.
Ritesh, Namita and I.
Rs. 60 lakhs, but for 4%.
Sir, deal accepted.
- Let me know if you need help with Make in India. - Congratulations!
- Thank you! - You are enthusiastic.
- Cyril, we will give you doctor connects. - All the best.
Thank you!
[camera shutter clicks]
...we will gain doctor connections,
which we didn't have before.
This will also help us
get doctor validations.
That is very important for us.
[music playing]
Welcome to ACKO Changemakers,
where we really welcome change.
It has been beautifully portrayed here
behind me on this changemakers wall.
With the perfect mix of traditional and modern mix,
we promote inclusivity, gender equality and sustainability.
And today's changemakers are Nimish and Cyril.
A warm welcome to you.
...that you can't be in the business of wealth
and try to help a nation.
- And he proved the entire nation wrong. - Hmm!
And you are exactly doing that. You are not only empowering people
but you are building wealth. You have a business
in welfare. So, congratulations on that.
- You are bringing a change. - Thank you so much.
- I have a question related to that. - Yes.
If we have to empower people with special needs
in our own way, what can we do?
We should not sympathise with them, we should empathise with them.
Nicely said. Yeah!
They are not different. They are just like us.
So, if I show you the products...
You saw Anshul.
Anshul does deadlifts, and none of us here,
- including you and me, would be able to do. - Yeah!
We want to provide them with a means to reach their full potential.
That is our main motive.
And thank you for doing that. You're bringing a change
also to the social entrepreneur ecosystem.
So, thank you for bringing this change.
Similarly, ACKO, with their revolutionary offering,
is transforming the insurance landscape.
Don't delay and take advantage of ACKO's health insurance benefits,
such as 100% bill payments
and zero waiting period.
The sooner you get insurance,
the lower your premium will be,
while your health cover will be at its maximum.
And because I loved what you did in the tank
and it was one of the best pitches.
There was a fight for a piece of this business.
We have a special memorabilia for you.
This one is for the books for sure.
- Thank you! - Thank you!
[camera shutter clicks]
'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]
You must have met a child
who drew on everything.
The one who always had crayons in their pocket.
Whether it was the table, floor, or wall, it became their canvas.
Well, I used to be that kid.
When other children were collecting dolls in their childhood,
- I used to collect doll shoes. - Wow!
In tenth grade, I decided that I wanted to build a brand
and name it Kanvas with a 'K',
because the world is Komal's canvas.
Oh, sweet!
What next? I combined
my passion for art and footwear
and fulfilled my childhood dream.
And that's how I present to you my brand, Kanvas.
A footwear brand
that represents various art forms,
prints, and paintings through its shoes.
...and create a social impact.
We sell our shoes through online and offline platforms globally.
Our goal is simple.
To make unique shoes
and celebrate Indian art in daily life.
Sharks, today the world's eye is on India.
And I want to take my Indian art-inspired footwear brand global.
Sharks, my ask is Rs. 60 lakhs for 6%.
[laughing]
Komal, welcome to Shark Tank.
- Thank you so much. - I would like to say that
I love what you're wearing.
- Thank you! - The high slit with those printed shoes.
The way you walked in.
It is a pleasure meeting you.
- Thank you so much. - And you look gorgeous.
Let's start with where this started from.
Where did you get the idea of bringing art onto shoes?
I am a fashion designing graduate.
And my specialisation is textile.
I completed my Fashion Designing
So, our final year project of our third year
is called Craft Documentation.
So, we went to this village called Yeola.
Prior to this, I didn't have much knowledge about art,
to be very honest. Because in schools,
we are taught more about international art
- rather than Indian art. - Correct.
Through this project, I realised
that artisans don't even earn a basic livelihood
despite doing such fabulous work.
So, that's how the idea came. And I always loved shoes.
How many shoes do you own?
Right now, I have 46.
- But there was a time when I had a lot. - That's it?
- Yes! - How much was your highest?
- I've touched 97. I did not cross that. - Oh my God!
- Well done! - Amazing!
- So, it's truly your passion. - Yes.
Did you bring shoes for us?
- If we see that, we might get a better idea. - Of course.
Yes!
I am so glad you asked.
Otherwise, I would've forgotten.
- The first one is for you, Aman. - Thank you!
Kunal sir.
- Thank you! - We never forget receiving a bribe, Komal.
I am Gujarati.
Yes! There you go!
Thank you!
Oh, this is good.
- Very pretty work on mine. - Thank you!
So, this one is from my latest collection. It's called Bhil Art.
People don't know Bhil Art. It comes from a small tribe
that operates between Rajasthan and Madhya Pradesh.
Kunal sir and Ritesh sir, your shoes
are inspired by the wall art in Jaipur,
- especially those seen... - City Palace.
At the City Palace.
Komal, tell us about comfort.
Because one of the most important things
when it comes to shoes is design and fashion,
but comfort comes above all.
- I think they are pretty comfortable. - Thank you.
- No, no. They are. - Do you manufacture the shoe or paint it?
We manufacture the full shoe.
- In-house manufacturing. - I am asking because they are comfortable.
So, I want the reassurance about how comfortable it is on scale.
Our shoes weren't so comfortable in the year 2016.
Over a period of time,
we changed things gradually. For example, the heels.
We changed the insole. Then, we changed the fit.
I try all the samples personally first.
Tell me about the material. That's a big part of comfort.
There are various materials that we use.
We use canvas, cotton...
The print won't come off. But the sole's durability will decrease.
- Two years ago, a brand called The Quirky Naari was here. - Yes.
That brand does similar work, right?
Their focus was on Gen Z.
Our purpose is different. We have skilled artisans.
- Okay. - And we introduce new article every season.
Like, we have 300+ SKUs live right now.
Do people wear this to work or just events?
So, this is our best seller
for reception and special occasions.
- So, this is occasion wear. - Yes, it is.
But if you check the first segment, the blue brogues over there
can also be worn formally.
And what is the longevity?
Sir, the menswear shoes can last up to 4 to 5 years.
The customer thinks about the life after checking the price.
- Yes. - So, what's the price of these products?
Our range starts from Rs 1600.
- Tell us the price of these shoes. - Okay.
Sir, this one is priced at Rs 4200.
Kunal sir, the one you have is priced at Rs 4600.
Namita ma'am's shoe is for Rs 3800.
Anupam sir's shoe is for Rs 4000.
And his shoe is for Rs 4600.
So, Rs 4000 is the average price.
The menswear range is around Rs 4000.
- What is your cheapest shoe? - Rs 1600 one.
Ballerinas.
- They are for Rs 1600. - Yes.
- You sell these for Rs 1600. Average. - Yes.
Can you tell me about the costs involved in making these shoes?
Sir, first of all, it is 15% average GST.
- Let's keep that out. - Okay.
26% is the making cost.
22% is the commission.
Packaging cost is 3 rupees.
And the shipping cost is 2 rupees.
Not rupees! Sorry! Everything is in percent. I am so sorry!
Apart from that, 4% is for salaries and other expenses.
It means your margin is... Wow! It's quite high.
- 15% is our net margin. - Almost...
- You've missed something. - Yes.
I have missed something.
Is it marketing? Have you missed that?
Marketing! Yes!
- 13% is marketing. - 13%. There you go.
We haven't done marketing in full swing yet.
We started pushing it two years ago.
Before that, our maximum sales were organic.
On which platform do you get maximum sales?
Before 2019, it was on marketplaces.
But we created a proper website after 2019.
After that, we reported a bounce from 23% to 46% on our website.
- Where is it? - Kandivali West.
And how much is the sale there?
It is only 3% or 4%.
- Nice. - Nice. Very sweet and different.
Wow! Very nice!
So, we tried to... There's a story behind this.
Have you designed it?
- I have designed the store. - Well done.
But this was my dad's garage.
As in to park vehicles or a workshop?
- No, workshop. Yes. - I see. Got it.
- Like buying and selling of old cars. - Got it.
These white trunks are my dad's toolboxes.
And you can see the tyres, right?
- Oh, wow! - Nice!
- And those are plumbing pipes. - That's nice!
Do you know what? The biggest start-ups in the world...
Be it Apple or Berry Companies.
- They actually started from a garage. - Right.
- Apple, boAt... Such companies have started from garage. - Right?
BoAt started at a bar, if I remember.
[laughing]
But it's the same thing.
I must say. It is rustic as well as classic.
- Yes. It's very good. - Very classy.
Komal, I have a question.
You have been using the word 'we' from the beginning.
It would have made sense if you were from UP. Because people
from north use that word to address themselves individually.
- Yes. - But you are from Mumbai. So, do you have a partner?
No. It's just me. But I say 'we'
because I appreciate my team, my parents,
and my husband a lot.
- Had they not taught me things... - How nice!
At every step, I wouldn't have made it here.
Komal, that's a nice thought. Even I say 'we'
- because there are many people who support us. - Correct.
- And it shows your upbringing. - Yes.
Komal, when I look at these shoes,
I think I'll buy it once.
But then, all the designs are quite similar in terms of sensibilities.
So, will I buy it a second time?
So, our customer retention year-on-year is 23%.
I understand that you won't buy it again.
But we will introduce something new, which you will have to buy.
Like what? Give me an example.
- Come on. - So, you bought a pair of heels.
- Correct. - This is open on the back.
I will give you pumps which is closed on the back.
But why would I buy four same shoes of the same print and style?
If you look closely, the prints are different.
There are variations, even in colours.
Komal, I agree with Namita, which I generally don't.
I can buy these once because of the novelty.
But this novelty will soon become your problem.
Sir, Indian art...
Mostly, our best-sellers are the colourful shoes.
...which is tan and white.
It looks very different from the rest.
You think all of them are similar because we haven't
segregated each art. We have displayed them together.
If I show you the articles one at a time,
you'll understand their differences.
This art form... Adidas or other big players...
Won't they be able to adapt this? Have you gained expertise
in all these years?
Sir, to fall in love with art
and make it your profession, you have to be emotional.
- But when you grow up, you choose money over emotions. - Well said.
And when that happens,
- the authenticity of the business is left behind. - Ownership!
Komal, tell me one thing.
Purpose, passion or profit?
Purpose.
Above the other two?
Above the others. Money will follow.
- Well... - Your purpose always helps you earn profit.
- Exactly. - Tell us more about it.
- How has your purpose impacted your profit? - Let's start with numbers.
- I will start from 2019. - Okay.
In 2019, we made sales of Rs 46 lakhs.
Okay.
And during the period of Covid, we made sales of Rs 28 lakhs.
After that, we made sales of Rs 67 lakhs.
Then, Rs 69 lakhs.
And the last year, we made sales of Rs 77 lakhs.
What about the first six months of this year?
We have made sales of Rs 27 lakhs so far.
And what is your target for this year?
- We will make a sale of around Rs 77 lakhs this year, too. - Right.
But we have learnt a lot.
Before this, I used to handle marketing.
But then, that didn't work for us. We had a drop,
which I absolutely agree and understand.
We have hired a new person.
Now, by September, compared to the last year,
we reported a hike of Rs 1.5 lakhs.
You have had flat sales for the past three years.
Right? From 67 lakhs to 77 lakhs is no real growth.
With four years of flat revenue,
what will you do in the next three years to achieve tenfold revenue?
We have only imagined it as a lifestyle brand.
Now, we are making shoes.
But I have thought of making bags and scarves, too.
That's why we haven't mentioned the word footwear anywhere.
- Even on the website. It talks about Indian art. - Good point.
And taking art forward.
- Can I say something? - Yes, sir.
I think when I asked you to choose from purpose, passion and profit,
you made the wrong choice.
I thought you wanted me to choose profit.
- No... - But that would have been very unfair
- to what I believe in. - No. I want you to be authentic.
So, I am glad you said purpose. Because that means you're authentic.
But I believe, you don't have to choose.
- You can follow purpose, passion and profit simultaneously. - Okay.
The passion you have for Indian art,
maybe it is a sign that you should embrace the art,
not the shoes. Right?
I think your passion has made you technical.
And instead of being user-led, you are technically-led.
You can't explain all this to every buyer.
[tense music]
So, it becomes very hard.
The brand has to tell its story with one look.
- Not with someone sitting there to explain. - Absolutely.
So, considering your numbers
and your past journey,
I feel you have
a niche market right now.
And I don't think you should take on an investor at this point.
You should use your art
to make a lifestyle brand,
not just to sell shoes.
That would be my advice to you. But as it's very small right now,
I am out. Good luck.
Komal, I love your passion.
Your purpose is very clear.
You have a good design sense and quality.
But I see your business facing two challenges.
First, shoes. Hardest lifestyle category.
It has problems with cut sizes. You might know that.
- Yes. - It is the biggest problem.
It has a lot of distressed inventories.
Secondly, I think
your brand needs to establish distinctiveness.
Because the brand compounds over a period of time.
But it will compound only if people remember the brand name.
Otherwise, every time people interact with your brand,
- it will seem like a new introduction. - Okay.
So, maybe you can think about that.
But for these reasons, I am out today.
Komal, I have similar concerns.
You have made flat sales for many years.
This business at the pre-revenue stage.
And today, for those reasons, I am out.
Let me tell you one specific thing, Komal.
You should either go for mass production
of current products,
or increase the prices of your articles.
Make more unique products.
Then, your business will have higher demand than the supply.
If we are good at Rajasthani block printing,
let's take full benefit from it.
Then, let's sell it at a price that you can do a few things and win it.
I think because of the lack of direction,
I am out today.
But I wish you all the very best.
Komal, what do you want from the Sharks mainly?
- Rs 60 lakhs for 6% equity. - Nice!
Killed it!
Don't you want mentorship?
- You killed it there for me. - 100%.
I will trouble you, and you can trouble me.
I work on... I operate better when I am stressed.
- Well done. - It's a good thing.
Although I think it is a solid category...
I think this category... I have around 50 sneakers.
I love this category.
You have great passion. You're amazing as an entrepreneur.
But you still lack clarity.
And then, you said you only wanted money.
I can't give you only money.
I think the entrepreneur should also seek my time and guidance.
Because investing in stock market is a better option now.
Of course, sir. I would... I mean, that was...
- That goes hand in hand. - Yes, yes.
- I didn't say it. - I know.
She didn't mean that.
I agree. But right now, unfortunately, I am not ready.
And... We'll be out.
Thank you so much, guys.
- Wish you all the best. - I hope you enjoy the shoes.
- Yeah, thank you. - Thanks for that.
- Thank you. - Komal, good luck. I once again emphasize
you ace as a designer.
We want you to succeed. Do well.
- Bye, Komal. - Thank you, Sharks. Bye.
God bless you.
I understand they thought scaling was the issue.
And their purpose is different. They are looking
for a brand that can give them good returns.
That's sort of their mindset. But we are artisans.
We think we will eventually get that return.
Maybe it will take some time. So, we need to be patient.
A brand can always become big.
Welcome to the PokerBaazi zone, where you hold the cards.
Firstly, I know there was a lot of stress in the tank.
- Cool? - Absolutely.
These are related to business skills, department and functions.
Right? So, it will be distribution, product, marketing,
HR, finance, and accounting.
So, you pick your five in focus for me, and we'll rank it.
Let's bring in the product.
Then, I would pick marketing.
That's a good one.
After that, distribution.
And then, we'll put business ethics.
And supply chain.
Wow! Supply chain is your high card.
You chose supply chain management as the high card. Why?
First, because, whenever you build a brand,
this is the sequence that you follow. So, supply chain is
the last thing that I look at in my business.
Got it. This strategy is very good.
[gentle music playing]
2 crore shopkeepers in India work tirelessly day and night.
Even after the staff leaves the shop in the evening,
you will find the shopkeeper at the shop.
Ask me why.
- Why? - Why?
Because they still have to do the accounts.
One of my friends, a shopkeeper, Dagdu Seth,
shared this problem with me.
He said, 'Gaurav, whenever I sit at the shop,'
'we earn Rs 15000 or Rs 16000.'
'And when I don't sit at the shop, we warn Rs 12000 or Rs 13000.'
'I know my staff steals money.'
'But I can't set up a system'
'because my staff doesn't know English at all.'
'They can't operate a computer, either.'
That's why we made a billing machine, EZO,
which is smarter than a computer
and easier than a calculator.
EZO billing machine generates a bill with just two clicks.
...and the bill is ready.
It will have the shop's logo, name,
address, phone number, bill number, date,
and the list of purchased items.
The total amount is also printed in big letters.
You can also check the purchase and sale throughout the day.
And most interestingly,
these shopkeepers belong to 600 non-metro cities of India.
We are from Akola, Maharashtra.
Sharks, our ask is Rs. 50 lakhs and 1 rupee for 0.33 % equity
to turn every retailer in India digital.
We have decided
Rishikesh, Gaurav and Makarand.
Welcome to Shark Tank.
- Thank you. - Are you planning to solve the problem
of every shopkeeper through EZO?
I hope you achieve your goal.
We will talk about your business.
But first, tell us about yourselves.
Gaurav and Makarand are brothers.
They've known each other for 30 years.
No way! Really?
I am Rishikesh. I have known Gaurav since 12th grade.
We were classmates.
I completed my schooling in Akola.
After that, I finished my engineering studies in Nagpur.
Then, I finished my MBA from Mumbai University.
I worked for three years.
That is when Gaurav and Makarand started Legal Docs.
Gaurav and I used to discuss
scaling and growing the business.
I, too, wanted to be an entrepreneur but didn't get the push.
One day, Gaurav came home and picked me up.
My journey of entrepreneurship started with Legal Docs that day.
We scaled Legal Docs for the following three years.
We took it up to a revenue of Rs 12 crores and Rs 1 crore PAT.
In EZO, Gaurav thinks, Makarand makes, and I sell.
What happened to Legal Docs?
Covid acted like a full stop for Legal docs.
Our business was running low.
It should've boomed in COVID.
No, sir. The processes we undertook
while opening a new shop
were preparing its FSAI license and trademarks.
At that time, new businesses weren't coming up.
Do you have a software plus hardware solution or only software?
We provide both software and hardware.
You only have to collaborate with EZO.
Switch on your cell phone, install our machine,
and your billing starts from the first day.
Please demonstrate it.
Suppose Ritesh sir has come to the shop.
After that, he ordered two 'dosas'. So, I will click twice on 'dosa'.
As soon as I save it...
'Rs 210.'
Ritesh sir's bill is ready.
Suppose Anupam sir has visited us.
Anupam sir is our loyal customer.
We've promised a 10 per cent discount
for each visit.
Suppose you ordered 'tawa pulao' and 'masala pav'.
Your total comes up to Rs 200.
'Get a discount on your number.'
As soon as I feed the number...
'10 per cent discount is applied.'
Here's the bill.
Suppose I need to check all the transactions of the day.
This machine tells me
my total income was Rs 9115 throughout the day.
It will tell me how much money I've got in the bank.
I got Rs 1815.
The cash was Rs 6970.
But I didn't understand how it prevents theft.
You told us the problem statement.
How will we save Dagdu Seth's 20 per cent?
Yes, sir. Your question is perfect. I'll explain it.
When I gave you the example,
you gave me money, which I kept in my drawer.
- I didn't give you anything in return. - Correct.
- As there was no bill. - Correct.
What happened now? There is a bill now.
When you get the bill of Rs 180
and give me the money,
the system also records the amount.
The whole day's transactions are recorded here.
Once the bill is ready, its transaction is recorded.
- No! - No!
How is that a solution?
I won't give the bill if I want to nick some money.
In the beginning, they can also click on one 'idli' instead of two.
The price will be checked.
That cannot be a system.
The system is that you've put up boards.
That is a simple technique.
- Correct. - It has been done for years. It's in every American shop.
- No bill, no pay. - Correct.
You don't need that.
Even if you put up the sign
'No bill, no pay,'
even a handmade bill will do it.
The answer is that. The other one is the solution.
That is automation.
So, you're not saving theft.
You are providing automation, which might pretend it.
How are you different from software like 'Khatabook' and 'Dukaan'?
There must be more than 200 software in the market.
- Correct. - They are also solving this problem. We are not alone.
Who is the biggest POS machine maker?
'Petpooja' and 'Vyapaar'.
'Petpooja's' yearly revenue
is around Rs 60 crores.
'Vyapaar' must be around Rs 50 crores.
Are people mainly using it for POS
or to save the nicking of money?
There's no straight answer for it.
First and foremost, a shopkeeper wants to look significant.
- That is a POS requirement. - Correct.
Secondly, I don't want issues after the bill is made.
What if the bill costs Rs 120 and the person decides to give Rs 100?
Also,
if the owner is not managing it
and an employee is, he won't try to nick a lot of money.
- Holistically, it is a POS system. - Understood!
Our pitch for our shopkeepers
works whenever we talk about the nicked money.
What is your pricing?
When we sell the product for the first time,
the MRP of our product is Rs 7001.
- We sell it for Rs 6,001 after offers. - What do they get?
They get one printer and software subscription for a year.
How much margin do you have?
Sir, we don't get a margin in the first year.
Is it because of the hardware cost?
- Yes. - From the second year?
From the following year, all of it is our margin.
At what scale has your business reached in the last two years?
We closed 2022-23 at Rs 4 crores.
We earned Rs 12 crores in 2023-24.
20 per cent of it, Rs 6 crores.
- Is Rs 24 crores software revenue? - Yes.
Can you tell me your profitability?
That will clear things up.
- You told us that you sell the hardware at its cost. - Correct.
Suppose you spent Rs 6 crores on the hardware.
Rs 24 crores for software revenue
is a high margin, almost 80 to 90 per cent.
Then, you should make a profit of Rs 20 crores this year.
There might be other costs. But how much is that?
- Should I tell them the unit economics? - Yes.
Before telling us that, explain the break up to me.
How many retailers do you have?
We have onboarded a total of
35,000 shopkeepers in the last two years.
They've paid us Rs 6,000.
From those 35,000 customers, we got 5,000 in the first year.
This year's revenue is around Rs 8 crores.
- It's Rs 9 crores. - 9 crores.
- Whatever that is. Is it correct? - Yes.
What about the other revenue?
You've onboarded 20,000 before.
- You should get Rs 3,000 from them this year. - Correct.
Where did that go?
In last September,
we onboarded 1100 shopkeepers.
Out of those, around 670 people
gave us Rs 3,000 in September.
That sums up to Rs 20 lakhs.
We've booked renewal revenue of Rs 20 lakhs in the last month.
I don't get it.
Wait a minute.
Just give me one second.
Your first year of subscription to the hardware is Rs 6,000.
- Yes. - What is your cost for that hardware?
20 per cent, around Rs 800.
Everything is fishy here.
- Correct. - How big is your team?
Our team has 166 people.
- Wow! - How much salary do you pay? Rs 30 lakhs monthly?
24 per cent is our salary cost.
- How much will it be? - Rs 50 lakhs.
Yes.
For two months, even if we consider the expense to be Rs 10 crores,
or Rs 12 crores, including GNA, etc,
you should still be saving Rs 5 crores to Rs 6 crores.
You said the machine cost was Rs 6,000.
Something is wrong. Maybe marketing. I don't know what.
Initially, you said your machine was worth Rs 6,000.
That's why you didn't save anything in the first year.
The MRP is of Rs 7,001.
We are selling it for Rs 6,001.
Should I tell you about the unit economics?
Sure, tell us.
Tell us. Okay.
The first is a GST of 18 per cent.
24 per cent is spent on hardware and delivery.
Then, 17 per cent is marketing cost.
After that is 24 per cent of sales and support cost.
We spend that amount on acquiring customers.
It means you do cataloguing.
Cataloguing, sales acquisition
and customer success and support.
This means your acquisition cost is 17 per cent plus 24 per cent.
This means that your marketing and sales costs are 41 per cent.
Now, I understand your business.
18 per cent is GST.
7 per cent is IT Infrastructure cost.
- That includes our CRM, dialler, etc. - Understood.
That also includes all the tools for sales acquisition.
Then comes 18 per cent fixed costs.
When you do a renewal,
is there a cost associated with it?
That cost is five to seven per cent.
Will it be the same if we verify?
How much of a discount do you offer during the renewal?
It's an average of Rs 300 to Rs 400.
Is this Rs 3,000 for one year or three years?
- One year. - One year. Got it.
- I want you to explain two or three things to me. - Sure.
- You said you couldn't save money. - Yes.
But you didn't tell me that you're losing 25 per cent.
If you calculate your numbers,
- you lost 24 per cent in COGS. - Yes.
- You lost 18 per cent in GST. - Yes.
- The remaining 17 per cent plus 24 per cent in acquisition. - Yes.
How much is left? 14 per cent?
We spend 7 per cent on IT Infrastructure.
So, what's left is 7 per cent.
The other 18 per cent is fixed costs.
- Okay. Then, you've reached - 15 per cent.
7 per cent.
10 per cent.
- Around -10 per cent? - Yes.
This number is okay.
- You claim to lose 10 per cent in the first year. - Yes.
In how many years do you make up for this loss?
You break even Rs 600 in 1.5 years.
Yes.
When the renewal occurs...
- If there is a renewal! - Yes.
What is your renewal rate after two years?
We've not got the second one yet, sir.
We had pleaded with the shopkeepers in the first year of our sales
to get feedback.
So, did you not get money then?
No. We used to sell it for Rs 6001 then.
But we didn't tell them the software will stop working after a year.
So, their renewal didn't happen.
No. We didn't get a renewal then. We had to beg for them to buy.
We do it in the first month.
- You told us this year has been Rs 10.7 crores. - Yes.
That is your customer's full-year revenue. Right?
Yes. But we book it on the first day.
It is only Rs 3 crores to Rs 4 crores.
So, that Rs 10.7 crores does not match.
[tense music playing]
The correct counting method
is to be done
after considering the whole year.
Correct, sir.
That is called an accrual account.
Whichever Chartered Account is handling your books,
he ideally shouldn't let you open a cash account.
Cash and accrual accounting are different based on
when you're booking your sales and expenses.
In cash accounting, you start booking
when you get or give actual cash in terms of sales or expenses.
In accrual accounting, you book your sales and expenses
when the event occurs,
regardless of when you got or gave away the cash.
For example, you're organising a cricket league
and the event is on 1st February.
Suppose you got sponsorship income for it in January.
Based on cash accounting, you will show your income in January.
But based on accrual accounting, you will show the income
in the month of the event, which is February.
Accrual accounting
accurately shows the business and is always a preferred method.
That's why you won't touch Rs 30 crores this time.
He gave you Rs 3000 for the software.
Even though he paid you Rs 3,000 in cash, based on accrual,
your revenue for that year was only Rs 1500 because he joined midyear.
But you're showing your revenue as Rs 3000 and not Rs 1500.
That's because you're booking it based on cash and not accrual.
So, for an investor, your number is inflated.
You told me Rs 30 crores,
which is not the correct revenue forecast.
We discussed this part with our accountants, as well.
We debated on how to do it.
But there's no debate on this.
When you're running such a big business,
- these are the basics. - We didn't know it when we began accounting.
You're a great player!
- Integrity! - The numbers you told us...
This is an integrity issue.
You're a smart player.
Please don't say you didn't know it.
You know everything.
If you think this is the biggest problem, it's not.
Because you shouldn't be counting that revenue.
Yes, it's in the books,
but there's no margin on that revenue
because all your expenses are spent on acquisition.
Your business is just renewal business.
- Absolutely right. - Your business is only as strong
as the number of people renewing next year.
As you said, you somehow manage to sell by pleading and persuading.
In every city, there's someone sitting there pushing POS,
trying to get into stores somehow
because they know that once locked in, the money will come later.
And that's exactly what you're doing too.
So, your business is a renewal business.
Your actual business is worth 20 lakh rupees a month
as of today, which means you're running a 2.5-crore margin business.
Revenue business, I'd say.
So, you're running a 2.5-crore business annually.
Maybe it will grow, maybe it won't. We don't know that yet.
If 50 per cent of second-year renewals happen,
what incentives do you provide? That's unclear to me.
By the third year, it might drop to just 25 per cent.
That's also unclear today.
I just feel
the company's current financials
are significantly different from what you presented to us.
For this reason, I'm out.
No problem, thank you.
And
the 3000 rupees you are trying to collect
will not be given to you.
Today, it's EZO, tomorrow, there'll be DEZO
offering the same product for free for a year.
When you go to ask for money, they'll simply replace your machine,
saying, 'Here's the new machine,'
'start using this one.'
- 'I've saved 3,000 rupees.' - That's the reality.
In India, subscription revenue is extremely difficult.
Like Amazon and Netflix.
Subscription revenue in India is extremely tough.
And you are trying to collect 3000 rupees from your client.
You know how to run a business.
Use your brain in the right place.
Don't earn money through messy means.
Unfortunately, I'm out.
No problem, thank you.
Gaurav, Makran, and Rishikesh,
I'm a numbers person.
If founders can't explain
their numbers in a simple way
in one minute, and they don't like it,
something feels off.
Either the numbers are wrong,
or the founders are utterly confused.
In your case, it seems to be both.
There's no confidence in partnering with you.
And for that reason, I'm out.
You came here to demonstrate a problem.
And I got very excited
because you said you'd prevent fraud.
If that's the problem you were solving,
you would've been unique, differentiated, and uncontested.
But when you say you're in the POS business,
then you're in a commoditized business.
So for those reasons, I'm out.
POS leaders from Akola, you're very resourceful.
- Your goal was to prevent theft from cash registers. - Correct.
I feel that might be changing, and that's okay.
But then you should clearly state that your goal
is to create the easiest POS device for the unorganised sector,
for those who don't have any billing systems.
For that reason, I'm out.
But I wish you all the very best.
And do implement accrual accounting.
Thank you very much.
- Thank you. - Wish you all the best.
- It was lovely meeting all of you. - Thank you.
- Thank you, sir. - Thank you so much, bye.
I came with the intention
of understanding the mindset of the Sharks at a primary level.
And today, I've understood it.
I'll try to work on this mindset and see how business is perceived
and move it forward.
It felt like this is an earth-shattering business.
- Too good to be true. - Then I realised...
It's an ethical issue.
There are ethics when you're not recognising revenue properly.
- And they're not stupid. They know what they're doing. - He's not.
Let me tell you a heart-to-heart truth.
I don't know PAT, B2B, ROI,
or any of those. These were never in my syllabus.
Whether Sharks or pitchers,
it should feel like I know something too.
I'll have to do some studies.
I'm thinking of doing some homework.
I'll do some studies and set up a solid office for that.
I'll order the supplies from Swiggy Instamart,
it'll be here in 10 minutes.
I know what to get.
First, stationery items.
Yes! A pen stand.
Okay! Notebooks.
I need to revise the old pitches too, so let's get a phone stand.
Phone stand!
If I'm hungry, I won't be able to study, so I'll need some munchies.
I love cookies. Cookies.
And done! Order placed.
They'll be delivered in 10 minutes.
You go ahead and study what you need to.
Who'll bring the supplies? Swiggy Instamart. Order now.
Let me tell you about a real deal.
Go to the Lenskart app or lenskart.com,
participate in the 'Offer or No Offer' contest,
[bubbling sound]
Hello, and welcome to Invest Smart with ICICI Direct.
I'm your wealth buddy,
and today we'll discuss some important aspects of investment
that will help you make informed and confident investment decisions.
Let's get started.
Today, we have Nazim Nazir
from the brand Al-Nahl Honey.
When you invest,
what are your strategic expectations?
Sir, first, whenever I invest,
I do my research online,
then consult with my family,
and finally, the decision rests with me.
Very good. Here we have a stock
Absolutely, sir.
But there's a challenge.
So, in such a situation, what would you do?
In that case, I'd first call my friends,
and then relatives,
and after that, I'd try to gather the amount from here and there.
I'll also tell you another option.
If you want to build personal investments in the stock market,
you can get a funding boost from MTF.
Margin Trading Facility by ICICI Direct.
And it's as simple as that.
you can still buy 1,00,000 rupees worth of stock.
And ICICI Direct will pay the remaining amount...
And if the stock price increases,
you can book your profit without paying the full amount upfront.
- Interesting, right? - Absolutely, sir.
So, use the 3-in-1 account from ICICI
Welcome to Ask the Shark.
Please welcome Aman sir.
- How are you, sir? - And they're fried!
[laughs]
Let's get to today's question.
Today's question comes from 32-year-old Sneha from Varanasi.
The question is...
nothing was really being made here.
There was a time during COVID
when PPE kits weren't even being made in India. Right?
And then we started exporting PPE kits.
Similarly, it was very challenging when we began manufacturing.
No one knew how to do it. There were no factories.
So, we learned everything ourselves.
We understood each process
and then started making it in India. There were a lot of challenges.
So, we worked hard
in creating the supply chain,
We'll meet in the next Ask the Shark with a new question and a new Shark.