[theme music playing]
My first ride was... I learnt to ride systematically.
I felt that I could turn this into my passion.
Motorcycling is an experience you can have by yourself.
You get a chance to talk to yourself.
You see the world at a 180-degree angle.
You feel the breeze.
How do you glide, and how do you navigate corners?
It is some experience.
[engine whirring]
The rider group is equal to brotherhood.
We established the first riding club in Madhya Pradesh.
Born To Ride Club Bhopal.
The riding community in India is strong.
I consider myself fortunate to be an integral part of it.
No rider in the world would say,
'I am not afraid of riding.'
'I've been riding for 12 or 25 years.'
When there is that fear, we have faith that there is someone.
If I fall, he will save me.
He has my support because he is behind me.
He will manage if anything has to happen to me.
We meet people from various fields and professions.
We don't let age be a barrier.
We learn from each other.
This isn't a coaching class with a three-month course.
This is life. It will teach you gradually.
I've been riding for 14 years,
I am learning something even today.
There are speed breakers
that you don't plan ahead of time. It is the same with life.
Ride and life go hand in hand.
Therefore, I believe that life is an adventure.
This is a journey that you have to enjoy.
The goal is not to reach from point A to point B.
You need to have a good story to take with you.
You can reach a destination on a flight.
[engine whirring]
Whoa!
[phone ringing]
Whoa!
Yes! Where are you headed for a ride?
Yes, I am coming. Let me finish my pitch.
Yes, okay!
Sharks, by observing my behaviour, you must have realised
that I am a rider.
I have ridden my motorcycle
for over 14 years and covered more than 1.2 lakh kilometres.
Indian riders are strange.
And there are no stylish brands for Indian riders.
We noticed that
and started Wanderlooms.
and I am an intern who became a co-founder.
Wanderlooms is an adventure apparel
To increase the airflow, we've incorporated mesh.
This is suitable for the Indian climate.
Our unique riders will sometimes head to Ladakh,
and other times, they'll go off-roading in the jungles.
To increase their visibility, we have reflective strips too.
If an Indian rider goes to Ladakh
and Spiti and doesn't tell the world about it? That's impossible!
For that, we also have destination-themed riding jerseys.
in Baja and Dakar.
So, are you ready to go on a ride with us?
If 'yes', press the horn
[chuckles]
- Wonderful! Prateek and Deepesh, welcome to Shark Tank. - Yes.
- Thank you! - Deepesh, you said
intern turned co-founder. What is the story?
How did you get this promotion?
I have completed my graduation in Mechanical Engineering.
But I was always interested in designing.
So, I did a diploma course in Pune.
And then, in 2019, I started my internship with Prateek.
I have been with him on this journey from 2019 till now.
He finally promoted me in 2021 and made me the co-founder.
Prateek, tell us, what quality did you see in him
that you promoted him to co-founder so soon?
Ma'am, when he came to us,
- he used to travel almost 100 km every day from Sehore. - Wow!
To reach our office in Bhopal.
He has always supported me, and he has a great eye for design.
Every design you see here
was created by him.
We became a pair...
Did he just give you the post of a co-founder, Deepesh,
or did he also give you ownership?
I do have ownership.
- How much is it? - It's 25%.
Including us, it's 16 people
- in the company. - 16 people? Very good.
Prateek, how did you get into riding?
In 2011, my dad was happy, so he sold a few plots.
He handed around Rs. 60,000
and asked me to buy a motorcycle.
When I went to the showroom and looked around.
When I asked for the price, he said it fits my budget.
On my way home,
I realised what I was missing.
People asked me to join rides. There is a small ride every Sunday.
They wanted to make a community. They wanted to make a riding club.
That is how Born To Ride Bhopal started.
It was the first registered riding club in Madhya Pradesh.
How many such communities are in India?
There are more than 80 lakh riders.
You can see that all the automobile companies are going beyond 400cc.
This indicates
that the riding community is getting stronger.
What do you like about this?
We are lost in our own world, we are by ourselves.
We are lost in our thoughts, free from worries
and there are no mobile notifications ringing.
The mountains talk to us and we talk to the mountains.
Wow!
The biking clubs that have been formed, even in recent times,
What do you do when it comes to safety?
In simple words, the riders are responsible for their belongings.
You are responsible for your health.
I'd like to share that I suffered a heart attack during one of my rides.
- Oh! What? - You?
- Yes! - Heart attack? Is there a stent?
- Yes! On the 5th of July 2020... - How many stents?
- Two. - Oh!
So, on the 5th of July 2020, I went on a ride.
- We were around 15 km inside the jungle. - Oh my God.
I felt uneasy.
One of my fellow riders is a cardiologist, Dr. Kedia.
I called him.
He mentioned that the symptoms were likely indicative.
I got on someone's motorcycle,
rushed to the hospital and my life was saved.
'Life is an adventure' as stated here,
that's exactly how it is, nothing more, nothing less.
Keep it if you like it.
Prateek, is this market growing?
over 12 lakh motorcycles above 300cc are sold per month.
Tell us in terms of price.
- They cost more than Rs. 2 lakhs. - It starts from Rs. 2 lakhs.
- The market for motorcycles above Rs. 2 lakhs is increasing. - Yes.
I'm asking this because I believe
the market you're targeting
consists of individuals who can afford a Rs. 2 lakh motorcycle
can buy expensive clothing.
Is the market you're targeting
individuals who buy motorcycles above Rs. 2 lakhs or below?
- Sir, above Rs 2 lakhs. - Above.
We might look simple,
but this jersey you see here
is the second most expensive jersey made in India.
This is a premium product, sir.
- We sell this jersey for Rs. 1,500 on average. - Which one?
This one. This is for Rs. 1,700 and Rs. 1,600.
Our average is Rs. 1,400.
Motorcycle riders are not the only ones who buy this jersey.
This windcheater
can be used by hikers or anyone else.
This costs Rs. 2,000.
A brand called 100kmph has been in this space for a long time.
There's Raida.
Rynox is into technical products.
What is the scale of Rynox?
I think they must be doing around Rs. 11 crores.
Hero introduced Harley-Davidson in India,
- Bajaj brought Triumph, right? - Triumph. Yes.
You cater to the premium category.
You have to show the branding.
Why would they show the branding of Wanderlooms?
The number of people who ride Harley and Triumph is relatively small.
There are not many and they are concentrated in a particular city.
They are white elephants.
From a community mindset, we have compared
lifestyle, utility and a good price.
Let's assume you went to Ladakh
and then returned to your boring corporate job.
- Now, you... - You are certain that the job is boring.
You want an appearance
where your personality resonates.
There is Wanderlooms to resonate with that personality.
- This is a riding jersey, sir. - Should I take this?
[music playing]
- Is this a jersey or a bandana? - A jersey and this is a bandana.
This is colourful! Let me check this out.
This is amazing.
- There is India's flag here. - Thank you so much.
Your taste is okay.
You won't get this in Triumph and H.O.G.
That bothered him.
- Does Royal Enfield make apparel? - Yes, sir.
They do make apparel.
I am sure their products are not this expensive.
- The T-shirt you have, they've priced 3 times higher. - Yes.
How much is this for?
- We sell this for Rs. 600. - Okay.
Royal Enfield sells this for Rs. 1,200-Rs. 1,400.
is used by a rider for riding.
We sell lifestyle products that they can flaunt.
Did you read this?
It's beautiful. It says, 'A person in Wanderlooms Clothing'
'who's crazy about adventure, '
'daydreams of Ladakh and Spiti, '
'with savings only enough for the next ride, '
'welcome to the community.'
How cool! You should put this on all your products.
This is very cool. You are building a community.
That will be your moat.
This is amazing!
Let me share an example
to illustrate how strong the community is.
I gave a white T-shirt to Anupam.
It has a design on it.
We have around 4 WhatsApp groups.
I shared it and the riders saw it.
- They replied, 'It's horrible. Don't make this.' - Oh!
'Order 50 t-shirts for us.'
'It is a lovely design, make these changes.'
Without printing and manufacturing, we get...
- We get feedback. - Real customer feedback.
Real customer feedback.
What is the scale of the business in the last five years?
- Last fiscal year it was Rs. 2.61. - Crores?
- Yes! Gross. - Not bad.
Where did you get the money from? Funding?
- We raised the first round. - First round of funding.
Did your community give you the money?
Dad sold another plot.
Forget that! I am a defiant man. I didn't take anything from my dad.
What is that?
Someone who doesn't listen to anyone.
- Rebel! - How will you listen to us?
- A rebel. - How will you listen to what we're saying then?
- We will, sir. - Starting today.
- Wait and watch what happens next. - Good point.
Why do you believe that you are a rebel?
Because I wanted to do something of my own.
I was determined to create this brand.
- Okay! - I didn't make this with a business perspective.
I've put 14 years of experience into this.
Is that the reason you're facing a loss?
No, sir. We will be profitable in the future.
That is our vision.
What is causing the loss? This is not a big deal.
You said you have a big community. There are WhatsApp groups
where you do marketing. You are famous in your community.
What's contributing to the loss?
When we sell online,
they charge a percentage
for paid media ads.
That is our highest expense.
Performance marketing.
What percentage is performance marketing?
Sir, 38% goes into marketing.
That's the expense of marketing.
How much did you raise in an angel round?
We raised Rs. 1.43 crores.
- At what valuation? - Valuation?
The pre-money valuation was Rs. 4 crores.
Okay! And when did you take money from Angels?
- September 2022. - 2022.
Someone showed faith in us.
Otherwise, whenever we went to pitch,
they used to ask us what our moat was.
we went to TiE Nurture...
- What is the moat? - Where did you go?
TiE Nurture.
- What? - TiE Nurture.
- TiE Nurture in Pune in cohort.
So, there was a boot camp there.
We thought after the boot camp was over
we would go to Lonavala to travel.
They said we need to make a business model.
I saw the Business Model Canvas for the first time.
We made that and understood it.
We made it till 3 am.
- Out of all the cohorts in India, we were in the top 3. - Wow!
- Once we understand and there is clarity in life... - Nice.
- That we have to reach in 4 hours. - To learn.
Tell me something. The apparel market is already crowded.
There are many people in this category.
It is not a crowded market.
The advantage is that if you approach it purely as a business,
- no one will be able to manage it. - Why?
Because they lack the experience. How can they connect with it?
If you haven't been to Khardung La,
or Umling La,
and haven't experienced being half immersed in ice,
- how will you make that clothing? - Good point.
You might have the best technology in the world,
but they don't have the experience we have.
How much was the revenue last year?
In FY23-24, the net was Rs. 2.32 crores.
- Prior to that? - Prior to that, it was Rs. 1.26 crores.
What was your revenue last month?
Last month our revenue was Rs. 32 lakhs.
And loss?
- Sir, almost Rs. 5 lakhs. - Rs. 5 lakhs.
- Because the season... - We have an inventory for 2-3 months.
31% comes from websites.
The WhatsApp groups you mentioned fall under this.
- Yes, sir. - Which other channel do you have other than direct?
There are marketplaces, they are 43%.
- And B2B? - B2B is 26%.
How many days a year are you on a tour?
It has gone down, I am serious about the business.
- Even then! - That's crucial.
If you're incurring losses, it's time to get serious.
Prateek, is there anyone else other than you
who is a core person in the team?
Yes! There is Prakriti. She is my sister.
She's a Founder Staff.
- Chief of Staff. - Founder Staff.
- Chief Of Staff. - What does she do?
She handles the mess.
- She scolds everyone. - Yes, she does.
- And... - She is the COO.
Yes! The CRM is also managed by her.
Who else?
We have a CFO.
What is the CFO's background?
BA in Accounts.
BA in Accounts?
BCom in Accounting.
- And currently in the final round for CA. - You are amazing!
E-commerce is a new word in Bhopal.
We match the background and hire them.
How does that work?
- Let me tell you. - 300cc motorcycle, what else?
Our current inventory manager
used to work in a motorcycle agency.
He knows how to handle inventory
and maintain an Excel sheet.
Our employee in dispatch
used to work in a courier company.
I convinced him to come on board
and trained him to use Shiprocket.
That is good. Listen to me, Prateek. You and Deepesh
are hustlers.
- Thank you, sir. - To do this and understand the business.
You mentioned that you had never heard of 'moat'
or seen a business plan.
But you turned your passion into a business.
I'm not sure if it qualifies as a business yet
since you're not generating profits.
But my issue
is that I don't see a design language.
There is both enthusiasm and the capability to achieve something.
But I don't see that you can make an aspirational brand or product.
In jail, these mugs... I haven't been there.
But I've heard you get better mugs in jails.
Look at the quality of this.
The paint is coming off.
You are also claiming to be a premium brand.
But your prices are less than Decathlon.
I think you need some knowledge of that aspect.
Passion alone is not enough.
Having a strategic mindset is crucial,
especially in a competitive industry, to build a business.
You have already secured funding.
I don't know how you'll do that, but for those reasons, I am out.
There is an input. If you can, then make some money,
turn profitable, repay the capital
and build this business with passion.
Owning it will be something you can truly take pride in.
Thank you, sir.
Currently, how many community members are connected?
all over India.
We have Rs. 9 lakhs in our account.
We are evaluating a term sheet for the second round of funding.
How much does the term sheet cost?
Around Rs. 2 crores.
- Valuation? - Pre-money Rs. 12 crores.
...there's a chance that it could fall through.
I can confidently tell you that this business won't shut down.
I agree that we are riders.
We need a lot of improvement, I accept that.
I am certain that there will be improvement, and it is happening.
- There is growth. - They gave you the term sheet for the next round.
Yes, we have the term sheet.
In my first round, I took Rs. 15 lakhs for 18%.
I was in a similar state to you.
We went to many places, and they used to ask, 'What is the moat?'
'What is the business degree you have?'
- The first person who gave me money, I accepted it. - Same.
I believe
- there are more opportunities in the value system. - Yes.
We have Nallagandla hotel.
Every week, the restaurant sales in that hotel
- of around Rs. 5 lakhs come from biker groups. - Yes, sir.
- I believe your business has potential. Thank you, sir.
We can do something together.
I believe that having a purpose is more important than profit.
In the long term, if you are willing to make a community-driven business,
then you have an offer from me.
If Namita...
- Yeah! We are on the same page. - Yes.
What I like the most about you
is that you said that community is your moat.
Ritesh and I would like to come together.
Our offer is Rs. 50 lakhs for 5% equity,
which is valued at Rs. 10 crores.
[music playing]
Because Sid Lal, the owner of Royal Enfield, is a good friend.
We will introduce you to him.
It will help you expand your business.
We are directly connected with many groups in the travel industry.
We will introduce you to them.
We will add enough value to make Wanderlooms a bigger community.
Yes! Thank you so much for your offer.
Peyush and Aman?
In your business,
you have to understand that the moat we were discussing,
your moat, could be design,
cost or execution.
Unfortunately, it's not easy to create differentiation
in the way you're currently running the business.
For that to happen, the team is important.
Hire a few more people in your team
whose strong area is this
and they can channelise your passion and energy.
- Yes, sir. - So, you need people around you
who can balance that emotion.
Lastly, I would just say
that you shouldn't think in terms of being India-centric,
but global too.
I am out today.
- Yes! - Because you have an attractive offer.
Right? Best of luck!
- Thank you so much, sir. - Thank you, sir
I am scared.
You are scared?
[laughing]
This is today's joke, that you're scared.
- Hear me out. - Okay!
- I am scared, but I feel we can do something. - Okay.
This looks like a passion to profession project, which is good.
And that is how it will be if you like it that way.
It doesn't feel like work; it feels like the right thing to do.
Unfortunately, you need
to work on product design, Deepesh.
You need to up your skills there.
So, I'll give you an offer to help you there.
Rs. 50 lakhs for 5%, which is the same...
I have a humble request.
We say in our biking group
that we won't forget old friends just to make new ones.
It's about honesty.
We took the term sheet from them,
and then went to you and said, 'Here, you give us the money.'
Their valuation is Rs. 12 crores.
The valuation is Rs. 12 crores.
is joining you, he might not refuse you.
There is not much difference between 4%-5%.
I will settle for 4%.
What's your choice?
[music playing]
Our choice is Ritesh and Namita.
Rs. 50 lakhs for Rs. 12 crores valuation.
Founders always ask us all to join. Why didn't you say that?
If we do that you guys
ask for 6% instead of 4% and you don't give more money.
- Thank you. - Smart guy.
What a brilliant answer! We are betting on you.
Secondly, Ritesh mentioned the riding community.
We also want to build a community.
This is what we realised in 2023, and that's what we will do.
Good job! You also taught me
that even when entrepreneurs are here,
the Sharks should also pitch themselves.
I should have mentioned the community, right?
I didn't say that, sir.
It's great if you understood.
[laughing]
Thanks! Good!
Hello, Deepesh and Prateek. How are you?
- Hello, sir. Good! - I am good.
- Good? How was it in there? - Yes.
It was great, and we have a deal.
- You do? - Yes.
The protective gear you are making is important.
The roads are bad. If someone goes to buy coriander,
- they might even need it. - Agreed.
I will buy it anyway.
Looking at my shows,
I need protection.
But amazing job!
You travel a lot, so I thought of you.
- We want to take good care of you. - Okay!
- I ordered gifts for you from Swiggy Instamart. - Okay!
- Thank you! - It's here in 10 minutes.
Okay!
Thank you so much. This is for you.
- I ordered sunglasses to protect your eyes from dust. - Okay.
- I ordered sunscreen. - Okay.
And hair serum to set your hair in place.
- Thank you so much! - Take care of yourself.
Friends, you too look after yourself.
Order what you want from Swiggy Instamart
and it's delivered in 10 minutes.
So, order now.
[theme music playing]
We have come to tell you the story of our business.
This story started with my best friend.
She was always by my side.
Regardless of the circumstances,
she always made me feel at ease and secure.
Whether anyone supports me or not, she always stands by me.
But a few years ago, their relationship took a toxic turn.
She was upset with Rahul because he wasn't looking after her
and took her for granted.
And she needed a break from me.
By the way, Sharks! She is here.
Oh God! I hope it's not what I think.
Exactly what you think.
Underwear!
Sharks, this is not just Rahul's best friend,
it is our best friend. Our best buddy, underwear.
[laughing]
To patch up with the underwear,
we started Ugees in 2022.
Ugees is India's first specialised undergarment wash.
...is made of harsh chemicals.
It not only damages your underwear
but can also disrupt the pH balance of your intimate skin.
It can also lead to itching, rashes, and infections such as UTIs.
Sharks, Ugees is not just a new product,
but a new category in the FMCG industry.
Through our online portal, we've delivered Ugees
to more than 1 lakh customers.
Sharks, this is just the beginning.
The liquid detergent market
globally is around Rs. 2 lakh crores.
We are a small part of this market.
But with the help of your support and expertise,
we can become big players.
And for that, our ask
is Rs. 50 lakhs against 2.5% equity.
So that no toxic detergent becomes
a barrier between you and your underwear.
[laughing]
Just like the majority of men, I didn't wash my own underwear.
But when I got married to Samiksha,
she pointed out and said
that I should at least wash my own underwear.
So, I started washing my underwear on my own.
I followed the process that Samiksha did.
I washed it with a blue detergent bar,
poured disinfectant in a mug, dipped it and washed it again.
I used to find this process tedious.
Then I started washing it with liquid hand soap,
shampoo, and any random product.
An idea struck.
Could there be a product
that could make this process easy
and is the correct product for this cloth?
Have you heard of washing machines?
Everyone in India is buying it. It is sold in villages as well.
Put water in it,
add detergent. There is an array of detergents.
You will get old and new-aged detergent,
- which is clean, green, and everything in between. - Organic.
Add disinfectant to that.
That could also be clean, green and whatever you want.
Job done!
Why are you complicating it? Why?
Next, we will hear about special liquid soap for every finger.
Why so complex?
- Right! - Tell him about the survey.
- What? - The survey.
We conducted a survey.
And the result was
that 40% of men and 80% of women in India
wash their underwear by hand.
...women's underwear is taboo.
If we look back 30 years,
women's underwear was something they kept hidden from men.
For example, even if they hung it out to dry on a rope,
they would cover it with a cloth.
- It was always covered. - Agreed.
That was a habit.
And because of that habit, even today,
80% of women don't put underwear in the washing machine.
That's true. They wash it by hand.
The second big reason is that women
menstruate every month for around 4 days.
There are blood stains and bio-stains,
so anyway, they can put it with other clothes.
Got it! In your pitch,
you should have demonstrated a women's use case.
You completely threw me off by demonstrating your use case.
- It's a unisex product. - Right!
- But it is mostly used by women. - Yes, it's women.
Actually, Rahul, you began your pitch with humour.
- Yes. - I think, to explain such a tough case,
had you used a different approach...
For example, you know that fungal infections...
- Vaginal infections... - Yes...
- Absolutely. - Are very high in India today.
They cause pain and issues for women.
- Had you spoken about that angle... - Yes.
You'd have been able to convince your investors
about your case better.
So, my request to you for your next pitch is
that you lead with this
because this is a real health issue
- for Indian women. - Right.
You might not need a next pitch.
What are your backgrounds?
I'm from Vidisha.
I have a BTech in Biotechnology
and a Masters in Fashion Management from NIFT, Delhi.
I was born in Meerut.
I came to Noida to do BTech.
Then I pursued an MBA from the same college.
After that, I joined my family business
which was started by my uncle.
We supply primary packing material to pharma and cosmetic industries.
Are you still in the packaging business?
My younger brother Mayank
is taking care of it completely now.
There are so many good detergents in the market now.
Whether you use those or this,
is there a difference in the products chemically?
Yes. The pH of regular detergents is already around 10.
- Correct. - Which is more towards the alkaline side
and again, it's harmful to the skin.
One problem with underwear is
that no matter how well you rinse them,
micrograms of the residue still remain.
You must have noticed
that they get a little stiff after drying.
Also, your intimate skin is a little moist by nature.
If the residue gets absorbed even in micrograms,
then it can actually trigger infections like UTI.
What's your pH level?
Our pH level is 5.5 - 6 which is the safest.
So, there's an incredible catch.
We only target females through our ads.
Aman, this must seem a little difficult to understand
because it is not a men's problem,
but most women face this problem.
When we market this product to them,
our conversion is very high.
I see.
[pleasant music playing]
- And what's this? - The refill pack.
The packaging and design are minimalistic
and aesthetic, which is good.
Means a lot, thank you.
But it also looks a bit premium.
- It does. - Is your pricing high?
- Rs. 255. - It's Rs. 255.
It will last you for 3 to 4 months.
Normally, how much does a detergent cost?
- They came after us. - Followed suit.
Aman, you said our product was premium.
Well, that was intentional
as we're positioning Ugees as a lifestyle product.
Come to think of it,
underwear is very much a part of fashion.
You'd get underwear for Rs. 100 earlier
but that's not the case now.
- People wear underwear from CK and other big brands. - Bummer!
- they're bound to wear out in a few months. - Yes.
At Ugees, our claim is
that the life of your underwear is increased by double.
But nowhere is this dialled up.
If you want this proposition to stand out,
somewhere, you have to say,
"Doubles the life of your underwear."
For Rs. 255, it seems like it'll run out in a week.
It's hard for people to digest.
Anupam, you know what?
This product has so many features
but the space we have is very limited...
You can always have a pamphlet inside.
- Okay, that... - You get it?
- Right. - Even if you mention bullet points,
it could make... And in a fun way.
- Of course. - In a fun way.
That can be done.
It says, "Share your experience here."
- Right. - Followed by a code.
How many customers shared the experience?
Tell us a little about it.
On average,
we get 5 to 6 comments every day on Instagram.
Currently, we have over 1,000 reviews on Amazon.
- Our rating on Amazon is 4.5. - Good.
As for the other marketplaces,
- our average rating is 4.8. - Nice.
Is 100% of your sales online?
- Yes. - Yes.
How much from your website?
51%.
And marketplaces?
It's 43% from Amazon,
2% from Blinkit and 2% from Flipkart.
Other than that, we're available on FirstCry, Meolaa and Smytten.
What's your revenue like now?
In 2022-23, our revenue was Rs. 63 lakhs.
Wow! Not bad.
In 2023-24, our revenue was Rs. 1.75 crores.
- Wow. - Very good.
And this year in 2024-25,
we've done Rs. 1.32 crores so far.
Projected revenue?
What's your profit? Do you make any?
No, we're EBITDA negative.
What's your burn?
We burn Rs. 3 lakhs monthly.
Our COGS is 25%, commission is 6%,
return and damages is 4%,
salary and wages is 7%,
shipping is 26%...
- Shipping is 26%! - Yes.
- Wow! - Shipping is expensive.
- Your shipping is more than your COGS. - Yes.
Our marketing is 36%,
overheads are 3%...
Who's the biggest player in detergents currently?
- Wheel, Ghadi... - Surf Excel.
- Surf Excel.
How do you plan to protect yourself?
Aman, the biggest advantage, which we consider a moat,
is the early-mover advantage.
Have you no other advantage?
So, this is the reason
we've been proactive from the start.
We find our gaps, understand them,
take feedback from the customers and try to fill them
so that as a customer, you...
As a chemical, you have no patent!
These formulas aren't patentable in nature.
- So... - So, if Anupam wanted to do this today, he could.
He could, but there's no guarantee how effective his product would be.
Tell me what your vision is
and how you'll get there.
- I'll tell you a few calculations. - All right.
I've considered only women for now,
and that too only menstruating women
- in the urban population only. - Good.
Okay? With some kind of disposable income.
So, our estimated potential women users
- in India is between 4 to 5 crores. - Got it.
How big a company can you build? Why are you shying from that?
- No, I'm not... - How big will you be in 3 years?
What will your revenue be?
3 years from now, in terms of revenue,
we'll easily achieve Rs. 5 to 6 crores a month.
- Um... - I guess not.
Why not? Are you scared?
- No. - Then?
We've created a new category around underwear hygiene.
We would like to stick to that.
Who's the CEO of the business?
- I am the CEO. - She's the CEO.
Why are you the CEO?
[sombre music playing]
Why not?
Because I deserve to be the CEO.
Well done! Well said.
Good one.
Because she actually deserves it.
Your business is quite delicate and niche.
And I prodded you to understand if your vision was big.
You stuck with niche.
How big the business will be, what will be its valuation,
- how will an investor get an exit... - Hmm.
All that remains unclear.
But I like you two.
I think you guys are fantastic.
Your determination, the way you designed the product
and your thinking, aesthetically and even from a product standpoint,
is quite strong.
I'm ready to give you Rs. 50 lakhs but I'll take 5% equity.
Because this is going to take time
and this is going to take effort.
I saw that your quick commerce business...
You said only 2% of your sales is coming from there.
- We just started it. - We...
- This is the second month on Blinkit. - It should fly.
We all work very closely with quick commerce.
- We put all our brands on them very quickly. - Yes.
You know everyone wants to be on quick commerce, right?
It requires strategy.
If you remain so niche, someone might take your business.
Somebody will come, create a category,
spend Rs. 10 crores on advertising.
Rs. 100 crores isn't even needed in this category, and finish you!
So, that's my offer. I think my time is worth a lot.
- Anupam, thank you for the offer. - Thank you so much.
What has bothered me from the start is
that you've to create a brand, right?
And your communication requires a certain sharpness
but I didn't see any emphasis on it.
So, I'm not feeling confident that this brand can scale.
This product has huge potential to become an OTC product.
There's a wide range of doctors, dermatologists, gynaecologists
who can actually recommend this product.
Aman!
I like your persistence.
I was going to be out,
but I'll make you an offer.
Aman and I will collaborate.
We'll give you Rs. 50 lakhs for 6% equity.
[tense music playing]
Yes, sir. If we could listen to Ritesh and Peyush, please.
You have better offers.
They're willing to give you time.
And the trade and distribution will take a long time.
I'd like to spend that time with another company
but you have incredible strength as a combination.
You'll do well. Many best wishes.
- Thank you. - Thank you so much.
I think the problem in this business is this.
I've observed this in D2C in the last two or three seasons.
After reaching a certain scale, there is a struggle.
The scale is a big issue
and because there's no defensible moat,
this turns into a marketing game
where money consumption is very high.
So, all in all, it is all about execution.
I'm out for now.
- I have a piece of advice. - Yes.
I would say you should tie up with lingerie brands.
Create the category, that will bring in money.
For example, shoe stores will sell you polish too.
- Right. - Right?
I think I'd highly recommend
that is a very good way
for you to add scale to the business.
Is there any possibility all three of you could come?
No!
I won't come.
The ownership is the problem.
As I said, 1 to 2% wouldn't get much work done in the beginning.
- Yes. - Given the time we invest, if you want the time.
- Don't want the time, then I'd rather not invest. - No, sure!
Could you...
Rs. 50 lakhs for 3.3% equity.
Can this be done?
I'll agree to 4%, but say yes or no right now.
[tense music playing]
4%. Yes or no?
Samiksha, I guess we could go with Anupam.
- Yes? No? - Okay?
- Should I tear it? - No.
- Anupam, deal closed. - Deal closed.
Great decision.
- Namita! Aman! Thank you so much... - Thank you so much.
- Thank you. - But really sorry.
- I value your judgement more now. - I ought to pray.
I've to pray after I go home anyway.
Well done, both of you.
- Well done. - Nice meeting you.
[camera shutter clicking]
- Thank you, everyone. - All the best, do well.
- All the best. - Go get it.
Namita has a network
of doctors and professionals in the medical field,
which is relevant to our products
but Anupam is one Shark who goes very deep.
He will help us a lot, I'm sure.
[upbeat music playing]
Welcome to ACKO Change Makers where we really welcome change,
whose lovely portrayal we saw on our Change Makers wall.
Today's Change Makers are Rahul and Samiksha.
Tell us something.
To our audiences who're tuned in,
what changes can they bring in their personal hygiene
on a personal level that might help them?
You need to understand one thing.
Our product specifically,
- is meant to clean underwear. - Yes.
Underwear is the only garment
- that is always in direct contact with highly sensitive skin. - Yes.
And you're using regular detergent to clean it
but have no idea of its components.
In the home care industry,
- it's not mandatory to disclose all the ingredients. - Hmm.
We're a part of that industry too.
Nevertheless, we've disclosed all our ingredients
- so that our customers can make an informed decision. - Okay.
They ought to know what is in the product they're using
apart from its positives and negatives.
So, that is the pillar on which we are trying to build this brand.
How nice! You're bringing about such an impactful change.
With its range of revolutionary offerings,
ACKO has totally changed the insurance landscape.
Like 100% bill payments in health insurance
which ensures that customers don't have to worry about
out-of-pocket expenses during claims.
Appreciating this change,
on behalf of Shark Tank and ACKO,
I'd like to give you a special gift to celebrate you.
- Thank you. - Thank you.
Thank you so much.
We appreciate the change that you're making. Congratulations.
- Thank you so much. - Thanks a lot.
[camera shutter clicking]
'Shark Tank India co-presented by ACKO Insurance,'
'PokerBaazi and Swiggy Instamart.'
'Co-powered by Adani and Jaquar Bath & Light,'
'and partners Rayzon Solar, ICICI Direct,'
'Lenskart and Sofy.'
[theme music playing]
[theme music concludes]
Yogesh, I started a marketing agency.
I can't decide where to get an office space.
Get it at any of those big office buildings.
These big buildings don't offer small office spaces.
Don't be so dramatic. Take it in a coworking space.
My team consists of 4 to 6 people.
I've tried basements, apartments and even coworking spaces
but I couldn't find a good coworking space
that fits my budget.
are just not available!
AltF Coworking not only provides
a private space to micro-businesses
in budget-friendly prices,
but also provides an environment
better than the modern and professional workspaces
of top-notch companies in India.
Today, on an asset-lite model,
Our vision is to be present in every city
and provide a macro feel to micro-businesses.
Great!
- Sarthak! Yogesh! Welcome to Shark Tank. - Thank you.
I've conducted a meeting at AltF as you already know.
- Lenskart used to have an office in AltF. - Yes.
I've been a customer.
I know you've been at it for years!
[laughter]
It's been 5 or 6 years.
Your energy is the same and you're still bootstrapped.
So, good to see you here.
- Yes, I never asked you... - Is that...
- Is that good or bad? - That's good.
It also means no one funded them.
No, I don't think they raised funds because...
They'll tell us why. Tell us the story.
Did you raise funds or not? How have you thrived?
So, our journey...
Yogesh and my independent journey began in 2010.
We did our engineering at NSIT from 2010 to 2014.
So, we both took up jobs in Gurugram after college.
After the job,
we began working on different projects after office hours.
The first problem we faced was, where do we do it?
Where do we meet after office?
So, we had to take up seats in a coworking space
and we began working on other projects.
Our other projects weren't fruitful,
but we were highly intrigued by coworking spaces
because it was actually solving the problems of businesses like us.
Then we decided to get into the coworking space area.
We tried through cafes
by turning them to coworking spaces in the daytime.
We realised there were many infrastructure issues with cafes.
Yogesh landed in a random guesthouse by chance.
It was an OYO guesthouse.
It had a basement with two bad-looking dining tables.
We told the landlord
to let us sell two seats at those two dining tables
and with the proceeds,
we would buy more furniture and then, sell those seats.
So, we sold those two seats.
That fetched us Rs. 10,000 and we bought more furniture.
Gradually, we turned that basement
into a coworking space with 60 seats.
It generated a rent of Rs. 3 lakhs
which was equivalent to the income the entire guesthouse generated.
Very nice.
The landlord was extremely satisfied with our project.
By this time, we had understood people's requirement,
which we follow at AltF to date.
It's that every micro-business, no matter how small,
requires a space of its own.
So, what we did was, from the two rooms upstairs...
Sorry, Ritesh.
We had the beds taken out of the two rooms upstairs
and put tables there instead.
We offered that as a private room with a personal washroom.
- Nice. - That concept took off.
The entire building had been converted into AltF Coworking.
It went from OYO to AltF.
- Yes. - [laughter]
Today, in AltF's every product,
99.9% of seats or inventory
is only in the rooms,
to solely invest in the furnishing on our behalf,
design the space as per our requirement
and then, we'd move...
But even then, we wouldn't have the capability to rent it out,
so we'd share the profits with them.
Even today, AltF takes all its properties
on a profit-sharing model
where the sole investment is made by the landlord.
where 70% goes to the landlord.
Our target market,
which is very different from other coworking spaces,
is only micro-businesses
Explain this in simple terms.
What are the different types of coworking spaces
and what model do they operate on?
Separately, from both the customer and the supply side.
If I look at it from a member side,
the market is divided by two metrics.
One is the seat size and the other is pricing.
So, coworking spaces offering 0 to 150 seats already exist.
Theirs is a demand-first model
where the client approaches them,
the workspace is designed and managed as per their requirement.
and the dependency is long-term.
These factors make every coworking space a lucrative business.
In both the scenarios,
micro-businesses have been overlooked.
- So, we're headed in that direction... - Understood.
Since no one is dedicatedly working for them.
- I want to give you a VR experience. - Sure.
- I want to take you there virtually. - Let's go.
Sir, this is a recently-launched space
- about 1.5 months back. - Where is it?
Sohna Road, Gurugram.
This is the lounge and the cafe.
The interiors and design
are almost the same as a premium coworking space.
When you look at this place,
don't imagine it as a big office space.
Imagine just 4 seats.
This is for probably a lawyer and his two associates.
You're an office within an office.
So, I'm buying seats from you eventually,
but I'm taking an office
be it for 4, 8 or 16 people,
and that's what you sell.
- Yes. - Right, sir.
Your office is an 8-seater. Suppose someone wants only 6 seats.
Would they have to pay for 8 seats? Can't they pay for 6?
- No. - We make this inventory
as per our data.
- Got it. - Our demand helps us figure that out
and this helps us
to have over 90% occupancy at the centre at all times.
The common spaces are common to everybody
like the cafeteria and bathrooms.
Those are shared.
That brings value and builds economics
- for the renter also. - Yes.
Firstly, your designs are top-notch.
I'll give you credit for that.
You're doing this at half the cost.
That means you're offering the product
at a price similar or lesser to our segment,
which is great.
The experience was wonderful.
I now know what it looks like
without having physically gone there.
Tell me something.
Fundamentally, these businesses are doing well in India,
but not globally.
Why so?
The biggest company shut down.
In India, I guess business sense is very high
the way people are running these companies.
As for the global scenario,
the rental per square foot...
- No, I don't wish to comment. I have no idea. - It's not true.
Internationally, the macro-market is failing.
It's diminishing.
In India, the commercial market is rising.
That's the fundamental difference.
I beg to differ.
WeWork is one brand that wasn't successful internationally,
but there are many brands that are still running successfully.
Is your business model different from others or is it similar?
There are two differences.
One is on the demand side.
The point is, that we focus only on micro-businesses.
On the supply side, majority of the coworking spaces
either rent out properties or furnish it themselves.
We've designed a model
where the landlord is motivated to fully invest in our space
and then lease it out to us without a fixed rental
where we pay him flexibly according to occupancy and profits.
What do you mean by flexible payment to a landlord?
By flexibility, we mean
we operate with a landlord on a profit-sharing model.
80% of our properties are on a pure profit-sharing model,
10% with a minimum guarantee and 10% on a fixed rental.
We'll take it to 100% in some time.
So, on a month-on-month basis,
the landlord gets revenue on the basis of occupancy.
So, the revenue minus the operating expenses
gives us the profit
out of which 70% goes to the landlord
and 30% comes to us.
After operating expenses!
- After operating expenses. - But that's under your control.
How would the landlord know how much you spent?
Explain the economics from a landlord's point of view.
Suppose I have a property of 25,000 square feet.
Why should I invest in you
when I can turn it into an office and rent it out myself?
Tell us the economics from the beginning.
Let's take the example of Orchid Centre.
What is the expenditure
and what would my payback be...
- As a landlord. - As a landlord.
Our expenditure comes to Rs. 60,000 per seat
which the landlord bears, not us.
For example.
- It'd take Rs. 6 crores to launch a centre for 1,000 seats. - Got it.
Coming to the payback period for a premium location,
After how many years, do you need to spend that again?
- Very good question, Anupam. - Yes.
What are the benefits of a landlord partnering with us
- versus renting out an office to a fixed client? - Right.
Here are the benefits.
If he rents out the office to a client,
after the lock-in period of 3 years,
the client is not motivated
to stay at the same property after 3 or 4 years
because the entire real estate market will try to lure him.
No! If the client does a CapEx,
which they mostly do,
then they don't leave or that money gets wasted.
- Anupam, those days are over. - Okay.
Earlier, bare shell properties could get leased.
- Not any more. - Today, if a landlord
wants to rent out his property, they have to...
[indistinct]
They have to spend on renovation and furnishing.
Got it.
Do you have landlords who are offering more and more properties?
Exactly. 90% of our landlords
have either given us another real estate asset
Coming to the demand.
Our existing customers take 25% of those seats.
We have a 35%-dependency on broker channel partners.
That leaves us with 40%.
Out of that, 20% comes from our organic traffic,
10% comes from walk-ins,
5% comes from paid marketing and 5% is from others.
Let's get to the numbers.
Hmm, Tell us your numbers.
Our journey began in 2016.
In 2016, our revenue was Rs. 90 lakhs.
When you say revenue,
- you mean gross rental value. - Yes.
- Okay, then. - Rs. 3 crores in 2017-18.
- Okay. - Rs. 8 crores in 2018-19.
Rs. 13 crores in 2019-20.
Our revenue dropped during the pandemic to Rs. 6 crores.
We rose to Rs. 11 crores in 2021-22.
We did Rs. 21 crores in 2022-23.
We did Rs. 30 crores in 2023-24.
We'll close this year at Rs. 50 crores.
Good, but let's clarify
If we deduct the operating expenses,
it'll be about 10 to 15% and not more than that, right?
- It's 30%. - 30%.
Take that out, you're left with Rs. 35 crores.
- Okay? Your share is 30%. - Okay.
So, Rs. 11.5 crores approximately is your share
based on your current run rate.
You gave the rest to the landlords
or spent it on operating expenses.
That exactly is part of our expenditure
- because we... Then it's correct. - I got that.
In Rs. 11.5 crores,
- your margin will be very high. - Right.
Your profit must be Rs. 7 to 8 crores.
What's your EBITDA year on year?
Last to last year, our EBITDA was 6%.
It was 5% last year.
This year, on average, it is 9.5 to 10% a month.
This year, out of a revenue of Rs. 50 crores,
- you'll take Rs. 5 crores home. - Rs. 4.5 crores as per 9%.
- Fine, around Rs. 4.5 to 5 crores. Is that right? - Right.
On the basis of that,
- you asked for a Rs. 133-crore valuation. - Yes.
What is your year-on-year growth?
- Not that much. - 70 to 80%.
What's the bottleneck in the growth?
There's none. We're in the market now.
We'll raise this round and grow drastically.
In the market! Do you mean you're in talks with investors?
They're HNIs basically.
We're raising Rs. 8 crores in total.
Can you tell me more about that?
Today, we're in Delhi-NCR.
So, we want to test one city outside Delhi-NCR
and then look at
what growth to expect after testing out two cities.
Do you think coworking as a concept
is more popular in some cities
compared to other cities or smaller cities?
If we talk about Tier 2, it's catching up.
There's demand as well as supply.
If I want to go there and set up in 5 or 10 locations,
I might not be able to scale that far up.
So, Hyderabad and Pune are Tier 1.5 markets
where the supply is there with a reasonable demand.
So, we can be there and create a monopoly.
If you do cap all the Tier 1.5 markets,
let's say after 2 years,
do you think after two years,
the next level of cities
will be ready for coworking as a concept?
They'll definitely be ready
because 99 out of 100 businesses are over there,
that a lawyer runs with two of his associates
or that a marketing agency is running.
All these micro-businesses exist even today,
but probably out of an adjusted office.
So, with time, this market already exists just in a different set-up.
I like you guys.
Your chemistry is good too.
You've been working together for many years.
Generally, founders...
Companies fail when founders fall out.
It doesn't look like you two would.
Tell me something.
The segment you're targeting,
which is micro-businesses,
the greatest risk there is of attrition.
- Average lease time period? - Every...
- 14 months. - 14 months.
That's short-term.
Generally, those who own and manage coworking enterprises,
it's 3 years, 5 years and so on and so forth.
So, it becomes a little risky from that perspective.
Second point, you'll be left with Rs. 5 crores this year.
If you continue to grow at your current pace,
Can I underwrite it at Rs. 133 crores at present
with that kind of risk hanging out there?
Probably not, even though I love you guys.
So, that's probably the reason I'm out
but good luck, man. You guys are solid founders.
- Thank you so much. - Thank you.
You know, to be very honest,
when I told you that the supply side was a challenge,
you said that certain cities were maxed out.
is something I'm doubtful about.
So, fabulous founders. Love the thinking.
Rs. 80-crore order book.
What more? 10% EBITDA.
But I'm not able to get the confidence about the Tier 2 and 3 cities
in terms of readiness of the Indian consumer.
That's why I'm out today
but I hope you make it happen.
- Thank you so much. - Thank you.
Yogesh! Sarthak!
Many congratulations.
The pandemic was full of hardships for both our industries.
I always say the one who survived the pandemic
will make good money in the coming 5 to 10 years.
Whatever you're doing is amazing.
For me, you know, that this is tough.
Because we own Innovate.
But our segment is different.
We are in the 30-150 segment.
If you want to, we don't know the zero to thirty segment.
Nor are we strong in that.
If you would like to come and join us
then you should know that I'd be very interested in that.
But since I'm in a conflict,
I'll be out for that reason.
Many best wishes. You've made a perfect business.
- Thank you, Ritesh. - Thank you.
I'll give you an offer.
You will get a financial investor.
I'm giving you an offer because I've been seeing you for eight years.
I mean, I have to believe in destiny
that you've come and stood before me.
Even now there are around 10 of your offices around my current office.
So, it will be easy to meet you.
I think there is only one sense for me to come here, and that is
because you spoke of institutionalising your business.
Maybe I can help in taking that forward.
You've focused on one city now and that's phenomenal.
But I'm not able to understand this valuation.
I can understand the 50 crores valuation of your business.
Because your EBITDA is five crores. I can't
justify more than 10x of the EBITDA, right now.
My offer for you is one crore for 2% equity.
I'm glad you want to make a sustainable and profitable business.
That is a core. That was very cool.
Second, the industry is changing and this is a real need.
I'll tell you the risk,
what I feel are the risks.
Second, it can become a Ctrl+C Ctrl+V business.
Like Ritesh heard it and went quiet.
He's never gone so quiet after hearing a pitch.
He sat quietly and heard what you're planning to do.
Because I'm in this business, I wanted to hear them
and I let them speak.
Okay... He heard everything.
Now you see how he'll enter this business.
I feel the valuation is a concern.
I really don't know why you need a Shark.
I personally feel you can build it further.
You're very smart entrepreneurs.
Unfortunately, I'll be out.
- Thank you so much. - Okay, Sarthak and Yogesh, think about it.
- Two minutes. - We'll take a couple of minutes.
- Peyush, isn't it unfair to the current investors? - No.
You brought 133 crores valuation down to 50 crores.
On Shark Tank, we've brought down the valuation of so many businesses.
We bring it down marginally than the prior valuation.
- You brought it down by 50%. - But depends on how you value
your time, right?
This is Shark Tank. There is no fairness.
- This is capitalism. - But then...
- I don't know. - It's a Shark... - I'm saying, you have to understand
- the time that is required. - Namita, you also give an offer like this.
I don't reduce it so much.
From 133 to 50.
The investor determines the valuation, not some other investor.
Thanks a lot, Peyush for your offer.
We have a counteroffer.
One crore for one per cent
so that everyone comes on the same valuation and you can
- cover up with advisory equity. - That's how the structure will be.
That will be the structure. But one per cent is not adding up.
There's a very large gap.
Okay, I can close at one crore at 1.5%.
Uh... Can we close at 1.25%?
No, come on...
- I'm not saying... - I understand. But this is what it is. Decide.
- Sorry, Peyush. We won't be able to accept this deal. - Okay.
- Thank you for the offer. - Thank you.
- I like it. Good decision. - Thanks a lot for coming in.
And there is no disrespect for you, this is basically...
No, no... I want you guys to grow so much.
I want to keep seeing AltF boards everywhere.
Sarthak and Yogesh, welcome to PokerBaazi zone.
- Thank you. - Thank you.
There is a sequence based on the strength of the poker hands.
Here is the sequence before you.
These are called Hand Rankings.
The top hand is Royal Flush.
And the lowest winning hand is High Card.
We've chosen five hands in focus for today.
- The second one is Tech and Product. - Okay.
Interesting to have Tech and Product for Straight Flush.
The third one would be Customer Service.
The fourth one would be Business Ethics.
I think the last one would be Marketing.
Oh, Marketing. It's on the fifth number. Very interesting.
I found it very interesting that you kept Team Culture first.
This is the first time I've seen it. Why?
If you also want to download PokerBaazi app and make your strategy,
then go ahead and make the winning hand. Download PokerBaazi app now.
Welcome to 'Ask The Shark.'
and stuns everyone with his Hindi.
Aashish, thank you very much.
Our question for today is from Lalpur, Rajasthan.
By 24-year-old Mayank Sanganeria.
First of all, you're from Rajasthan.
My mother is also from Jhunjhunu
- which is in Shekhawati. - Okay.
Whenever I've had a chance to visit Jhunjhunu or Churu,
I've seen the children here already have a sense of entrepreneurship.
- Everyone is thinking of starting a new business. - Hmm.
In today's day and age, I have three suggestions for you.
The first is, I have its OG with me, Aashish.
There is a lot of money in content creation.
You get a chance to learn too.
- And this is a genuine value proposition. - Yes.
Let me tell you,
I often feel that if I could have some regional content
then it would be interesting to watch it.
- You know people are interested in regional content. - Very much.
- You could try that. - Absolutely.
Wow. One idea was his and one was mine. Right?
- Two ideas were our own. - Yes, two ideas were about what we do.
- Wonderful. - And one in-between.
You've given very detailed and very good advice.
We really appreciate it.
We'll meet on the next, 'Ask The Shark'
with a new guest and a new question.