[clanking]
[table screeching]
[music playing]
[music concludes]
[theme music playing]
[theme music concludes]
Covid turned the face of the online fashion market overnight.
Many people thought of starting their own fashion brands.
Sharks, I've been in the business
- of garment manufacturing for 24 years. - Okay.
A few people approached me and asked me to build my own brand
and I told Ashima about it.
I was 24 years old at the time
and super excited that we would kill it!
What do I tell you about what became of that brand?
In short, it failed.
[chuckles]
- And with it went my youth and desires. - God!
And Rs. 70 lakhs.
- Oh! - Oops!
That failure helped us
understand what it takes to make a fashion brand.
That's how Dorabi was born.
We are from Gurugram.
Dorabi is India's only 100% hand-dyed label
No two pieces can be the same, just like art.
We're eco-conscious
and by generating employment for generational artisans,
we bring about a social impact.
Our quality is high and we are size-inclusive.
Then to introduce solid clothing in the workwear category
and to cater to a minimalist aesthetic,
we started our second brand Aamili.
Dorabi and Aamili must come to mind.
And we plan to expand across all categories.
And so, our ask is Rs. 75 lakhs for 3% equity.
[up-tempo music playing]
Oh, music!
Very nice.
[mouthing words]
[music fades out]
Batra family from Gurugram.
Thank you. [all]
- You told us a little about how this brand started. - Yes.
You also spoke about a brand that failed.
Could you tell us what happened and how?
In 2020, before the pandemic,
some brand architects approached us to make our own brand.
Brand architects!
- Yes. - Explain.
That was a new concept to us to be very honest,
because we didn't know such a thing existed in the market.
- He had 24 years of manufacturing experience. - Yes.
So, they approached us saying, "There's a demand on marketplaces."
"We'll make a brand for Myntra."
"There's a gap in a particular category"
"and we will fill it."
"Our ASP will be so and so."
So, the investment was yours.
- Yes. - The investment was ours,
the brand architects even took fees as well as commission separately.
We built many SKUs and manufactured surplus inventory.
They wanted to manufacture more,
Dad said, "No. I'll only make this much. I'm buying the fabric."
- Good call. - "I won't make more inventory."
- Honestly, we worked in good faith. - What had happened?
There were no sales, sir.
Neither on Ajio nor Myntra.
- The brand had a return rate of 50%. - Crazy.
- And... - What was the name of the brand?
- About brand building, people and how the processes worked. - Yes.
You see, fashion was not my background.
This was my crash course in fashion.
- As they say, "Success builds ego..." - Yes.
- "And failure builds character." - Exactly.
- So, you learned from that experience. - Absolutely.
There was a lot of learning.
But three major learnings were this.
- Trusted people are non-negotiable. - True.
Because we work collaboratively, that has to be there.
Second, that product was for marketplaces.
So, it didn't have a special USP or storyline.
The third thing was inventory management of course.
And we've implemented these three points in both our brands.
You didn't tell us the fourth point.
What did that teach you?
A lot of things.
The way we manage our processes.
There is a lot of confirmation that happens
after the person clicks on "Confirm Order".
- Okay. - There is a call confirmation.
We don't say, "Confirm your order."
- We say, "We could customise, do something for you..." - Okay.
We kind of tell the customer
that their product is coming and they can expect it.
You have a helpline to do that!
Our MI... Internal CRM.
This is... During scaling, you'll need 50 people just to make calls.
You don't have to call everyone, especially not for paid orders.
You've to make sure that for COD orders,
there are certain PIN codes that we've highlighted
- from where we have maximum traction of fake orders. - Yes.
- We had the issue of fake orders. - Absolutely.
- We put an SOP in place for these checks. - You could automate it.
- Through automated calling. - Correct.
Sonia, what do you oversee?
I actually oversee the operations on the floor.
- Initially, it was with Vinod. - Okay.
But Ashima started her business too.
Our unit is the same now.
Who is it more fun with?
- Be honest. - I love playing with the colours.
I meant, out of them.
[all laugh]
Actually, Mom is neutral.
- She's a bridge between Dad and me. - Okay.
After that brand failed,
she racked her brains for six months thinking about what to do next.
Then she came up with this proposal.
"Dad, I won't sell my goods on marketplaces."
"I'll first build a brand."
- "Sell it on D2C." - Got it.
She worked on the storyline...
- Basically, she did all the work. - Okay.
We were just the backend support.
Our job was to manufacture the clothes
as per her requirements.
Give us your design sample.
- We'll manufacture it and that too, within the least time. - Great.
Do you get a profit share for that or do you bill her?
- Billing. - I...
- Billing. - Okay.
So, she provides me with everything I need.
Fabric, prints... Everything.
I manufacture it for her.
- Okay. - Got it.
Does he have equity in your company?
Yes, they both do.
What's the split?
50%, 25% and 25%.
- Ashima, you built a product using hand dyes. - Yes.
Could you get into a second layer of details?
A year before 2020,
there was a fad of tie-dyes if you remember.
Tie-dye socks to tie-dye hoodies.
In that fad, there were only those straight lines
- or blotching. - Hmm.
I didn't see a third design.
But there was so much to be done with hand-dyes.
I've always been a creative person.
I've played with colours. I'm a painter also.
So, I started sitting with the tie-dye master.
We began brainstorming on the techniques we could introduce.
We could do brush techniques.
Shibori and batik were already in the market,
but how do you give it a modern look?
- We mostly see it being used in traditional clothing. - Correct.
So, the idea was to modernise it
and create pieces that look like art.
"Oh, what's that?"
Something different that grabs your attention.
- That is... - Something people should compliment at sight.
- Yes, it should give the vibe of the brand from afar. - Vibe.
And it's important it be made for any brand to scale.
Good thinking.
Aman, you get Dorabi.
Okay. Why so?
- I'll tell you, sir. - I decided that.
[all laugh]
- I love what you're wearing. - This is for you, ma'am.
- Thank you. - Beautiful.
- Sir, that's for you. - Thank you.
Your mother is wearing it and so are you.
I took note of your sizes.
- You had a plus-size model too. - Yes.
I think your design sensibilities are on point.
This was my thought in terms of the TG.
I wanted it to be occasion-wear, party wear and date wear.
You can wear it anywhere where you want to look special.
And anybody can wear it.
If I team it up with a choker
and wear bracelet stacks,
then I'm Diwali party ready.
If I go wearing this,
I could even present my business proposal before you.
So, that was the whole idea.
"In the world of fast fashion,"
"we're taking it slow."
Yes.
Do you look at Dorabi as slow fashion
and prepare your products with that in mind?
As more human-involvement based?
Absolutely. They are handcrafted products.
Do you differentiate Dorabi and Aamili
- as Aamili being... - Aamili is also a completely sustainable brand.
It is also slow fashion.
Slow fashion, sir,
how I understand is basically
that you should not be producing in bulk,
you should not be contributing to landfills,
you should be sourcing and selling mindfully.
All of that is commonality between both the brands.
- Both brands. - Yes.
Why does this say Neraya? Because you shut it down.
Is this the old packaging?
- This is the old bag. - Yes, it is.
- You know, the bags were ready... - One minute.
I said, the brand did exist, right?
- It is diluted now. - No!
- Actually, Mr. Batra, I beg to differ. - Okay.
- You know, a customer like me... - Yes.
I'll be confused.
Suppose I visit this website before your other two brands
and I see it's a dead website...
- The consumer's first impression will be a very negative one. - Yes.
- Point taken. - This is what you call penny-wise and pound-foolish!
- Point taken. - In order to save some money,
you're making a mistake with your packaging
through which you will lose customers.
- Yes, I... - Don't make this mistake to save a few bucks.
Yes, you're absolutely right.
Shall we talk about revenues?
Sir, we started in 2022.
- In 2023-24, our revenue was Rs. 3.45 crores. - Well done.
And we've done Rs. 2.35 crores this year so far
- and we'll close at Rs. 5.5 crores. - Very nice.
Yes. My COGS is 30%.
My marketing spend is 37%.
10% is my infrastructure, rent and utilities.
My platform cost is 5%.
And 5% is logistics.
What do you mean by a 5% platform cost?
Shopify, Shiprocket...
The 1-2% that goes to such service providers.
These unicommerce companies charge a bomb.
[both chuckle]
Do you use unicommerce
- to sell on multiple marketplaces? - No, sir.
We're currently not on marketplaces.
- Now, we... - Are all your sales direct?
This is all from our website.
Outstanding.
- Could you quickly show us your website, please? - Absolutely.
We can go down and choose a category.
- We have co-ord sets. These are all the categories we have. - Very nice.
- That green one is beautiful. - Yes.
- This is one of my top sellers. - Yay.
I've sold 1500 pieces of this one.
This is Alya Dress.
Why Alya? Did Alia wear it?
- No, sir. All my dresses have names. - Really!
- This is Aroha. - Yes!
This is Aaryaki.
What you have is Layla.
- What sir has is Lilith. - Oh, wow!
- What is this? - What ma'am has is Juniper.
That's Aura.
- Oh, wow. - Sir has Zeeba.
This is the Alya Dress.
So, this is how we make it.
First, the Alya Dress is a coarse cloth.
And then, when we open it,
that is when the patterns actually come.
This is a very intensive process which takes a lot of time.
And...
- Effort. - Effort.
Why haven't you listed on marketplaces yet?
Sir, we plan on getting listed with them.
However, brand positioning was imperative
to filter which marketplaces we wanted to be listed on.
On Myntra...
Yes, some SKUs
do fit in particular ASPs
and they will be sold there.
I did want to position the brand first.
We will be on Nykaa's Hidden Gems category from next quarter
followed by Pernia's Pop-Up Shop, Aza and other premium marketplaces
because on premium marketplaces,
when you see products in this price range,
it's an impulse purchase.
What's your price range?
My average selling price for Dorabi is about Rs. 4,000
- or just online? - Yes.
We currently are in four MBOs in India.
Why?
Why not?
Why not because even now,
Nykaa, Myntra and Ajio are flourishing in India.
- They are doing very well. - Yes.
It is easier to capture that than to talk about global stuff,
is what I feel.
I agree with you, sir.
There is a huge market in India which we definitely plan to capture.
But the global appeal of Dorabi and handcrafted goods is huge.
- Good point. - I'm not just thinking of India,
I want to make this brand into a global franchise.
Tell us your numbers, Ashima.
What percent of your sales come from the four stores in India?
Till last year, 2023,
we had only one store.
- Okay. - The other stores
were started only in the last four to six months.
So in the last five months,
currently, 15% of our revenue is offline.
85% is online.
Is 15% solely from India or from Dubai as well?
Only 2-3% of it comes from Dubai.
What's the revenue split between both brands?
Till 2023, my revenue split
was 80% from Dorabi and 20% from Aamili,
because Aamili was launched last year itself.
This year, Aamili has picked up.
Now, we're at a 65-35 split.
65% from Dorabi and 35% from Aamili.
In the end, companies in fashion get built
- on the basis of inventory. - Yes.
How many days of inventory do you have?
I have an inventory of 45 days
for the hero products in the most-selling sizes.
Coming to the issue of dead stock.
It breaks the size of brands.
As it's third-party manufacturing, they've to place orders for sets.
That's where brands falter.
I don't do that.
If the demand is for M, L, XL sizes for the last few months,
I'll only stock those sizes. If I get an order for extra small,
I know I can dispatch it within five days.
That's why I don't have any dead stock.
And you say that
- this year, you'll save about Rs. 65 lakhs. - Yes.
Then why do you want to raise capital?
Won't Dad fund you again?
[Aman laughs]
Sir, Dad will fund me whenever I ask him,
- but I want to do this on my own. - Love it!
If you want to do it on your own, why are your parents here?
Sir, I'll still need Dad.
- He'll fund me, I'd still need him... - "I'll still need Dad."
Because the idea is to grow very fast and very quickly.
I have the first mover market advantage
- when it comes to handcrafted goods and these kind of products. - Yes.
I want to expand across categories.
That is a five-year plan.
So, I've heard your story.
I find this industry to be quite risky
given the explosion of fashion brands,
especially in fast fashion.
Yes, you wish to differentiate with slow fashion,
but is the customer really looking for that?
The customer definitely understands all of this
but there is a very big chunk of customers
that's not ready to pay a premium for it
- and I agree with you there. - Yes.
Craftsmanship and employment generation
is all branding.
If you want to sell goods to the customer,
they want quality, reasonable prices
- and aesthetic products. - Right.
And that is why I have created a product category
which is very affordable.
The differentiated product
will help you with the second sale.
The price will help you with the first sale.
You answered every question
like somebody who's very seasoned.
That comes either with a good instinct,
a first-principle thinking
or with a few knocks, right?
- In your case, I think it's all three. - Hmm.
So, I think you're a founder worth backing.
I find the valuation a bit high.
So, I'll offer you a deal.
Okay.
Rs. 75 lakhs for 5%. Straight equity, nothing else.
I'd just like to hear the other Sharks.
Ashima, um...
- Mr. Batra and Sonia. - Yes.
Actually, during the pitch...
Obviously, I was trying to concentrate on the pitch,
but I have a daughter too. She's eight right now.
I was so pleased
by Ashima's confidence.
And I know she gets that confidence because of you two.
- You both are Ashima's pillars. - Yes, absolutely.
And when I was listening to Ashima
answer all the questions so confidently,
I wished that...
I mean, one day, I'd also want
my daughter to be in such a situation
where she can pitch her business with such confidence.
Thank you.
Those who make a comeback after setbacks
are real entrepreneurs.
Their stories don't start here and end here.
- The graph will be chaotic... Left, right, up and down. - Hmm.
Many of them give up midway,
but you put it all behind you,
implemented your learnings and marched on.
It is very commendable.
When people watch your pitch,
I can tell you, a lot of people will be inspired by you.
Thank you.
You've built a good business,
but I believe
maintaining a long-term differentiation
in a fashion business
is quite difficult.
Continue to tread this path.
I'm very confident
that this Rs. 5.5 crores will turn to Rs. 20-25 crores with time.
There might be twists and turns in that journey though.
I wish you all the best.
Today, I won't be able to invest. I'm out.
- Thank you. - Thank you, sir.
India still has a lot of unorganised players.
Becoming an organised player
and scaling at that level...
Um, you're not there yet.
I think, in regard to your goal,
you will create a market to a certain extent,
but to really get scale,
give an investor an exit...
Then you're distracted by going global.
You know, Dubai and all.
I think you're a little all over the place.
Think about it,
but for today, I'm out.
I genuinely feel
- that slow fashion will make a significant impact. - Yes.
- I've seen it in WhySoBlue also. - Okay.
- is quite significant. - Yes.
And it significantly benefits from word of mouth as well.
Suppose someone wears an outfit.
People start asking them where they bought it from.
And the word keeps spreading.
So, the marketing requirement eventually declines.
I wish to make you an offer today.
Rs. 40 lakhs for 2% equity in your company
which is roughly the valuation that you had asked.
Along with that, Rs. 35 lakhs for 9% interest
over a period of 3 years.
- And there is hardly anyone in India. - Exactly.
I love it though.
- Would you like to make men's wear? - Absolutely.
- I think I'll be your first customer. - Done.
And probably brand ambassador.
[both laugh]
And I love the fashion space.
I have two brands in this.
- House of Chikankari. - Yes.
It is doing phenomenal.
Today, at Rs. 500 crores, he wants me to invest more.
I'm ready to invest even at a Rs. 500-crore valuation.
I'm a firm believer in Indian fashion spaces exploding.
So, I think I will um...
The offer you asked for is fair.
I would like to come in at...
Rs. 75 lakhs for 3% equity.
I would like all three of you to come on in on an offer.
I would like to keep the valuation at Rs. 25 crores
because I think it's a fair ask.
Would you like to come together on this deal?
The ownership will be meagre.
Anupam, come here.
- I want to talk to you. - Yes, just a second.
Let me just... One...
- If you have just 1% left... - Yes.
That makes it difficult.
- You should think about it. - Okay.
- We'll quickly discuss this. - Okay, sir.
- But please think about that. - Yes.
You don't want us with very little equity.
- Yes, sir. Right. - Yes?
[tense music playing]
- You should maximise the number of Sharks in the deal. - Yes.
Figure out a structure
in which you can get as many as possible.
Yes.
[pensive music playing]
I think at least 2% ownership...
We should get that if Aman and I join hands.
Okay.
- We think Rs. 75 lakhs for 4% is fair. - Hmm.
Can we do Rs. 1 crore for 4%?
I can.
[tense music playing]
'I saw more value in doing an individual deal.'
Given the direction she chose,
I thought it was better to offer a deal individually.
'I thought the final offer the deal was closed for'
which was Rs. 1 crore for 4% equity
was far superior to my offer.
For that reason, I did not counter the deal.
[music playing]
[music fades out]
[up-tempo music playing]
[music concludes]
Welcome to ACKO Change Makers where we really welcome change
Through a perfect mix of traditional and modern methods,
we are encouraging inclusivity, gender equality and sustainability.
And today's Change Makers, who are doing exactly that
and have got funding, are the Batras.
- Congratulations! Not one Shark, but two. - Thank you.
How does it feel?
- It feels amazing. - Yes.
It feels unreal.
Ashima, yours is a conscious brand.
You're doing a lot of things.
For instance, using traditional art forms in your fashion
and employment to artisans.
Also, plus-size fashion, which is a need in India.
It's a very big consumer base.
It's 50% of your consumer base.
- It's huge, right? - Yes.
So, here's my question to you.
If we, at an individual level,
want to bring sustainability into our fashion, what can we do?
To begin with,
fast fashion has normalised the trend
of buying new dresses and outfits no matter what occasion comes up,
be it any event or a birthday.
- I think that is not normal. - Right.
I think we ought to invest in clothes
- that we can reuse, restyle, style up and style down. - Hmm.
So, buy less but choose wisely.
That is one thing I believe we can all easily implement.
- And this will make a big difference too. - Hmm.
And the second thing is,
I think, choose fabrics
- such as plant-based fabrics, wool and cotton. - Nice.
These things will end...
If they do end up in landfills,
- then will biodegrade. - Yes.
But something like polyester will rot in the soil for years
and is not good for us.
Good tips. I'm happy because I'm on that journey
- and you also said these things, so I will follow them. - Okay.
Thank you for bringing about that change.
And bringing about one such change is ACKO.
With its revolutionary offerings,
it has changed the insurance space completely.
For instance, a zero waiting period for health insurance.
That means if you do not have a pre-existing health condition,
your coverage will start from the first day of the policy.
And you can claim without any standard waiting period.
Also, to celebrate your time in the Tank,
plus you got funded,
we want to give you a nice appreciation of our love.
- The happy, smiling faces of the Batras! - Aw!
This is so cute. Thank you so much.
[camera shutter clicking]
[theme music playing]
[theme music concludes]
Greetings, Sharks.
We've come from Surat in a highly-engineered vehicle
which is optimised for atmospheric gliding.
Now, in this,
Bernoulli's principle and Newton's Third Law are used.
- According to Bernoulli's... - That's enough.
Sharks, she means to say we came in a plane.
Books also oftentimes make such simple concepts complex
as well as bore us.
For this reason,
most people are unable to finish reading their books.
And even if they do,
they forget what they've read.
So, we bring to you Zebralearn.
At Zebralearn, we simplify complex topics
such as finance, marketing and HR
and make them interesting for the reader.
Zebralearn brings boring content to life.
And we do three things to make that happen.
First, our content is highly India-centric
and quite actionable.
Let's understand this the Zebralearn way.
For example,
let's consider this piece of land you see as a business.
Now, we divide the land into 100 equal parts.
We give 2 blocks to Aman
and 3 to Namita.
This means,
Aman has 2% equity shares in the company
and Namita has 3% equity shares in the company.
...who wish to upskill.
Very recently,
- we entered the category of school books. - Well done.
To do that, we'd like an investment from you
- of Rs. 1 crore in exchange for 0.8% in the company. - Whoa!
Thank you.
Tell us about yourselves.
What inspired you to make Zebralearn or what aroused your interest?
And tell us about your past background.
Speaking of my education,
I come from an equity research background.
I have completed CFA.
but the response was bad.
That gave me a better understanding of publishing.
What the gaps were, what was broken.
After that, we tried to set up a venture
where we started with courses
and later on, switched to books.
What about you, Radhika?
My educational background is also in finance.
I studied at an institute in Surat
which offers an eighteen-month course
that trains you in equity research, industry analysis,
investment banking and private equity.
I was doing that.
By the time I was 19,
I started working with
JM Financial in the private equity division
as a private equity analyst.
When I was 20, he was 22.
We started this company.
How did you two meet?
We are brother and sister.
- Oh, okay! - I see.
When did you start this?
Sir, the company was incorporated in August 2020
whether personally written or through other authors?
We have 25 books so far
out of which 4 are our maths books.
8 books are published under Zebralearn's name.
They have no author.
We hired experts to write those books.
As for the books after that,
we began working with authors.
For instance, our book on real estate.
The author was a CEO at JLL earlier.
Are you a publishing company like Penguin or HarperCollins?
Or are you an education company?
We call ourselves integrated.
By that, I mean we do publish books
and work directly with the authors
so that we have direct control over the content,
the content churned is of high quality
and we get the IP for it.
We don't claim we're an educational company.
We're a book platform.
But, Anurag and Radhika, books as a business...
We've heard of many bookstores
- that got converted into cafes and gradually shut down. - Yes.
What aroused your interest in this industry?
Honestly, our initial goal wasn't to revolutionise the book industry.
Our goal was to improve the education system.
We started with courses.
We started by explaining visually,
and gradually, we experimented with a book.
What are your top titles, Anurag?
Currently, it has 51 Trading Strategies.
Other than that, we recently released The Money Guide.
[music playing]
Hi, Namita!
- Hi! - These are for you.
Break The Career Code.
I don't want math. I'll see the flashcards.
- Are you making curriculum books? - Yes.
- Oh! I want to see one of these. - This is... Yeah!
So, this is Real Estate.
The books contain graphics and illustrations.
As far as I try to understand this, it might take time.
But it looks simplified. How much does the book cost?
We sell it for Rs. 1,500. The MRP is Rs. 3,000.
Rs. 499... How much do you sell your book for, Namita?
- Rs. 300. - Rs. 300, right?
I agree with what you are saying. Our books are slightly expensive.
We decided...
- It's five times more expensive. - It's quite expensive.
- It's three times more expensive than average business books. - Why?
Our printing costs Rs. 300.
Anurag, on one hand,
you teach trading strategies,
and on the other, you teach math to 6th grade students.
So, you are either a squirrel with a tail,
- or you are an elephant with a trunk. - Okay!
What are you trying to create?
Sir, according to the E&Y report
we received, the overall book market
Tell me about your business.
How has your revenue and business been over the last few years?
We started selling our books in FY22.
our sales were around Rs. 79 lakhs in April.
In May, it was Rs. 90 lakhs.
In June, it was Rs. 1.10 crores.
In July, it was Rs. 1.30 crores.
In August, it was Rs. 1.64 crores.
And in September, it was Rs. 1.75 crores.
This means you've already made around Rs. 7-Rs. 8 crores.
- Approximately, yes. - How much will you make this year?
By the end of the year, how much will be your revenue?
Around Rs. 21-Rs. 22 crores.
- Crazy! - How much revenue or profit will you make?
We reinvest our profit.
The expense of making books...
That is something else. What will your EBITDA be?
Sir, our EBITDA, so far,
shows a loss of Rs. 20 lakhs.
Out of Rs. 7 crores.
You can say that.
We have a cost of acquiring our customers.
But if the customers buy the same books again,
that margin increases, because...
How much does it reach?
At present, the largest portion of our unit economics
is our marketing spend.
We expect that it will decrease over time.
- How much is your marketing spend? - It's 35%.
- Crazy! - One final question, how much cash do you have?
After accounting for payables, receivables,
and inventories, there are currently Rs. 2.60 crores in the bank.
Have you raised a fund?
Yes, sir. We have raised two rounds.
- With? - Tell us the history.
We raised the first round in December 2021.
We raised a round of Rs. 1 crore for Rs. 8.8 crores valuation.
The next round was in May 2023.
We raised a CCPS.
Back then, our monthly sales were Rs. 64 lakhs.
And we raised Rs. 2.75 crores.
The floor was Rs. 42.75 crores against it.
Pre-money... Floor!
And the CAP was Rs. 62.75 crores.
Yes.
Where are your sales of Rs. 21 crores coming from?
It is a lot.
I want to say that this is quite impressive.
- By raising Rs. 3.7 crores... - Yes.
You still have Rs. 2 crores.
You invested Rs. 1.7 crores in the business
and made a profitable business of Rs. 21 crores.
It's really impressive.
- Your question was, where are our sales coming from? - Yes.
Last month, our sale was Rs. 1.75 crores.
Out of that, 50% is from Amazon.
45% is from our website.
And 5% is Flipkart.
What is your current repeat rate?
The repeat rate is slightly low.
Up until now,
- it is around 10%. - Ouch!
That's because the categories we have
don't have much depth yet.
Do you have hero products?
65% of the books
- in our library are from the finance category. - Okay!
Of the 65%, I should mention
that the Stock Investing book with the yellow cover
and 51 Trading Strategies
each contribute 15% to the sales.
Other than that, we have a book called Financial Statement Analysis
and another one on Financial Modelling,
both of which contribute 10% each to the sales.
- Wow! So 50%... - 50% of sales comes from four books.
- They are from the finance genre. - All four... Yes.
I was coming to that. All four are finance.
Other than that, the remaining three books on finance
that is 5% each. That's why 65% is finance.
The major reason is that
finance is our core subject
and we launched those books first,
so the market picked up.
Other than that, our books on Marketing, Real Estate, and HR
contribute less at the moment.
This is because we were unable to penetrate the market much,
as I want more depth in these products.
I have a preliminary diagnosis of your business.
This is a high-priced and high-margin product,
with a high marketing percentage and low repeat rate.
And finance books contribute to a large part of the revenue.
I think the key audience
is the uninformed group
that is looking for get-rich-quick schemes.
- I am sure your ads are amazing. - Yes.
And they entice them to read these books to get rich.
The book gets delivered to them, but they either don't read it
or read it, suffer losses in the market and the story ends there
and they never come back.
We never communicate that if you buy our books
you will get rich quickly.
I am not accusing you.
If most of your business
and revenue is coming from customers
with whom you have a fleeting relationship,
it's like they're dating you but won't marry you.
It will impact the long-term prospects of the business.
I think when this F&O trading
falls down by 40%-50%,
the sale of your books can go down in the same proportion.
You need to diversify as soon as possible,
otherwise, your numbers next year could
show you're moving in the reverse direction.
For these reasons, I am out.
Thank you.
Usually, when high sales
and profitable company comes on the Tank, we all get excited.
But in your case, in a lot of areas,
a disaster is waiting to happen,
- and scaling will be difficult. - Sure.
It's my duty to tell you about those areas.
Four books make up 50%.
Seven books make up 65%.
Highly vulnerable business.
The price is too expensive at Rs. 3,000.
The last point I want to make is you have to diversify.
You need to double down on what is working.
Instead of just saying finance is your expertise and it's working,
you should focus more on it.
You're diversifying and so on.
And for that reason, I am out.
Your core strength
is your understanding of the finance industry
and the content surrounding it.
You should aim to become the king of finance content.
I've always felt
that finance education
should perhaps be taught from childhood in schools.
There was a campaign recently about teaching coding,
but I believe financial literacy is equally, if not more, important.
I learnt a lot of things over the years.
I thought that if I had known all this earlier,
how much more disproportionately successful I could have been
in my business, in my work and for my family.
I tell everyone in my family
to have a basic understanding of finance.
I say the same to entrepreneurs I meet.
So, I will offer Rs. 1 crore you asked for.
However, the valuation you had previously,
with a CAP of Rs. 1 crore for a Rs. 62.5 crores valuation,
I am willing to invest in your company.
This would result in a 1.6% ownership.
- Thank you, Shark. - Thank you.
It's a great offer, guys.
I can't underwrite it, even at half the valuation.
This is the kind of business that is at a stage
where we can't be certain about where it will go.
So, if I came in
to this company, I would want 5%-10%.
That does not look possible today.
Therefore, I am out.
Thank you!
Anurag and Radhika,
- it's lovely to see people doing business in finance. - Thank you.
But this industry... I don't read books.
So, unfortunately,
our ideas won't match.
I will try convincing you to shut down your business
to do something other than books.
So, unfortunately, for these reasons, I'll stay out.
- Okay! You have one offer. - You have one offer.
Ritesh's offer.
What would you like to do?
[music playing]
Sir, we would like to accept that offer.
So, Ritesh, we accept your deal.
Okay! Many congratulations.
Hello, Team Zebralearn.
- Firstly, congratulations on the deal. - Thank you.
Secondly, I ordered things for you from Swiggy Instamart.
- I ordered travel essentials as you met on a flight. - Perfect.
- I buy a neck pillow at every airport. - Really?
I am happy. It's here in 10 minutes.
- When you go back use this. Thank you. - Perfect.
- Here you go! - This is for both of you.
- Thank you! - Please share it. Don't fight.
- I won't share it, - Okay.
No sharing. This is only mine.
Guys, if you want to order something for someone,
it could be anything.
You get everything in Swiggy Instamart.
Look, it was delivered in 10 minutes.
Order now.
[music playing]
Sharks,
our story began from a casual road trip.
A beautiful journey from Delhi to Jaipur
which made us realise the urgency of vocal for local in 2012.
Near a luxury hotel building,
there was a tiny 6x6 room, completely cramped,
with no cooler or fan.
And in the scorching heat, some artisans
were intricately carving wood.
But as beautifully as they were carving the wood,
their conditions were not as beautiful.
In fact, Sharks,
they didn't want to involve their next generation in this business.
And the main reason for this
was that these products, made with so much love and hard work,
remained purely decorative and not functional.
Which is why they couldn't generate a regular income.
To solve this problem,
we started ExclusiveLane.
We are from Gurugram.
We are the co-founders of ExclusiveLane.
It is an online home and lifestyle retail brand.
We converted this into a table lamp and made it functional.
We currently have five major categories
where we have 22 art forms and 2,000 products.
In fact, our artisans made India's first wooden spice box.
In ExclusiveLane's family,
there are more than 120 artisans
who come from 14 different Indian states.
each turn of the potter's wheel,
and each strike of the hammer,
they preserve a legacy.
- Amazing! - We want to
revive this craft.
And our mission
is to bring Indian craftsmanship to global homes.
feel that their creativity matters, they matter.
Kaushal and Dhruv, welcome to Shark Tank.
- Thank you! - Thank you, sir!
Tell us about your background,
how you know each other, and how this journey started.
What were you both doing before starting this business?
We belong to a Bania family. We are Marwaris
and third-generation entrepreneurs.
We are first cousins.
After my engineering,
I worked for 1.5 years in a solar company startup.
Since my college days, I wanted to do something in e-commerce.
In 2009-2010, I used to read articles on YourStory.
Where I read about e-commerce businesses.
Flipkart used to sell books
and Snapdeal focused on coupons. And eventually,
they entered the category.
Kaushal, what background do you have?
Again, I did engineering.
I joined my dad's business
and developed my skillset there.
And as a co-founder of ExclusiveLane,
I handle vendor management, operation and finance.
What business does your father run?
They were into electronics.
We were doing OEMs for Samsung, BPL
and Onida.
The OEM business
is expanding rapidly,
with many companies experiencing significant growth.
So, is your dad's business going well?
- We have sold that unit. - When did you sell it?
In 2022.
If you still had it, your business would've been great.
There is a story behind this.
The biggest fire
in Sector 61 Noida
- occurred in our factory. - Oh!
- Sorry to hear. - It was one of the most dangerous fires.
My dad and my uncle built that business.
They were scaling rapidly.
At that scale, an incident occurred
and we couldn't manage it.
- Sorry to hear it, - Sorry to hear.
Eventually, we had to sell the business.
No one got hurt, right?
- No! All good! - All well. Good!
When did you start ExclusiveLane?
In April, 2012.
It's been 12 years.
- Yes! - Right.
In April 2012, there used to be a website called Craftsvilla.
- We sold our first product from there. - Manoj is my friend.
Yes! We've met Mr. Manoj quite a few times.
- Could you show us a few samples? - Sure.
Yes, sir.
Aman sir, a keyholder for you.
- This one? Nice. - Yeah!
Thank you! It's nice.
- Kunal sir, this is for you. - This one?
- Yeah! - This is that
- famous... - Yes!
Wall plate, sir.
This is for you, Ritesh. Careful.
Very nice! Look at this.
- Wood! - Hmm, nice!
This one here...
That's pyrography, ma'am.
What is that?
There is a needle, which is heated and a shape is made.
- Oh, wow! - It's an art form.
The plate you see can be used in multiple ways.
You can serve flatbread on it.
- Ah, right! - What is this?
In the past, art forms
were only decorative in nature.
Dhokra artisans are from Bastar and Chhattisgarh.
- We... - This looks like Bastar art.
Yes! We made it functional. This is a serving tray.
Dhruv, did you get this product
made by someone?
No, sir. We work with 120 artisans.
- For indigenous Indian products. - Correct.
Why did you give this name?
We started in 2012.
We didn't have much knowledge of branding.
When we used to visit craft fairs,
they had dedicated a lane to each craft.
This art is from Maharashtra, and this is from Bihar.
That is what inspired us to start.
In hindsight do you want to change the name?
No, sir. We've invested 12 years
and a bit of brand recall has been created.
We met a few contestants
and they said
that they have this spice box.
They didn't say that by looking at the brand.
They told you after seeing the spice box
- Right, sir. - He is talking about the brand.
I also think that ExclusiveLane
- is not... - Luxury...
More like a company that deals with roads,
as you've created a line at the bottom,
which usually divides roads, correct?
So, it's kind of odd for a category like that.
Sir, the first 4-5 years went by
- explaining to the artisans. - Yes.
When we entered this industry,
the artisans were not happy about the online marketplace.
"They used to think that we were a marketplace,
who will get an order of one piece and buy one piece from them.
The second biggest problem statement
that they used to counter often as there was no standardization.
Because we sell online,
we try to explain to them
that the photo of the product we have uploaded,
99% of the times,
despite the fact that it was made by hand,
it should look similar.
In the next 4-5 years of our journey,
we tried to scale up our system.
You tell the artisan
that you are not a marketplace.
You sell it as ExclusiveLane.
- Eventually, you are buying from them. - Yes, sir.
Basically, the inventory risk is yours.
- Right, sir. - The only difference
is that you claim to respect the artisans,
it just means you give a little more money to them
and talk to them nicely.
Sir, I would like to give you an example of a reputed company.
When we entered this industry...
- Fabindia. - We aimed to be like Fabindia.
The model was, Fabindia did offline for the last 60 years,
and we want to take it online.
When the artisans told us
that when they took their products to Fabindia,
they would be judged by their clothes,
beard, and state and were bargained with.
If the same product went through a designer,
they used to get their money.
So we always remained in the background.
So, we addressed that first.
We met the artisans directly.
- We met them... - You got rid of the middleman.
We eliminated the middleman.
Give me an example.
For how much did Party X buy this wooden box from artisans?
Suppose the wooden box costs Rs. 100.
- Yes. - Okay?
The artisan asked for Rs. 100,
which he should be given.
When they used to go to the retailer,
he didn't get the price he asked for.
He used to go back
and sell the same spice box
for Rs. 80 to the middleman.
The middleman used to give that to the retailer for Rs. 110 or Rs. 120.
How much do you buy it for?
We don't bargain with the artisans.
We buy it at the price they quote.
But once there is scale,
they used to agree to give it for Rs. 90.
There is a big game here,
and that game is,
as the scale increases,
- it is a little... - Volume...
- It depends on volume. - Yes!
There is no common thread in this brand
or the products of this brand. It lacks distinctiveness.
If I look at any product from any category,
is there one characteristic
that helps me identify that this is a product from
- ExclusiveLane? - You are right, sir.
We deal with 22 art forms.
It is not practically possible for us.
Take Warli art for example.
If you look at Warli products,
you will understand that these are wall plates,
vases, lamps, or coffee mugs.
There is distinctiveness. There is a theme and design.
When the customer thinks of ExclusiveLane,
- what should they think about according to you? - Home.
Sir, there are 75,000
daily searches of our brand on Amazon.
Please share the revenue.
In FY19-20, it was Rs. 8.5 crores.
Rs. 9.5 crores. Sorry!
And the year after that, it was Rs. 12 crores.
Rs. 15 crores.
And then our revenue was Rs. 18 crores.
The year after that was Rs. 22 crores.
Last year our revenue was Rs. 14 crores.
- Huh? - Rs. 14 crores.
- It came down to Rs. 14 crores from Rs. 22 crores. - Yes.
- We will talk about that. - That's fine.
- What is the run rate? - Will get to that and finish it.
- What is the current run rate? - Last month, in September,
our revenue was Rs. 1.66 lakhs.
We started doing B2B,
which is why the invoice value decreased by around 42%-43%.
Tell us about profitability.
40% is retail.
- Got it. - Okay.
We operate both P3P and 3P models, sir.
Be it B2B, B2C or anything else.
The same is happening with us.
Something is happening
that you are unable to communicate.
The revenue dip you're seeing
is because when we invoice retail partners,
it's 42% lower due to their margins and commissions,
which we have to pass on to them.
If you consider that billing,
the revenue from last year would be around Rs. 20 crores.
It is still flat.
- Yes. - Why is it not growing?
- Sir, last year we made some mistakes. - What?
We started a furniture category as well.
Oh no!
- We started selling organic honey. - Hmm!
No, sir. We are being honest.
You should've said it earlier. Because if we...
You should have just said it clearly.
The honey business is very different from this business.
Sir, ultimately, our vision...
- Fabindia... - Just like Fabindia,
we want to enter lifestyle and home products.
The lifestyle products include spices,
- fragrances, apparel... - Will you enter these categories?
Ultimately, the plan is to enter apparel.
- Oh! - Listen, Dhruv.
I... Kaushal, I asked you a question in the beginning.
You gave a one-word reply, 'home'.
I am disappointed with that answer.
Whenever I meet a founder who is creating a brand,
I often ask them, 'What do you want the customer to think?'
I see their eyes light up.
They just want to talk to you for one hour
about what they think the brand should mean to the customer.
I think there is no brand thinking.
We also run a huge marketplace.
Home is a big category for us.
We sell millions of such products.
And a lot of artisans make them.
But I noticed one thing
those who sell online,
either you're building a brand like boAt
or you're simply clearing the goods.
There's no harm in that.
But the mindset is quite different.
I think we've been clearing the goods for 12 years.
And... I know you want to make a brand.
But you either lack capability,
capital or patience.
There could be other compulsions.
There is a lot of work to do
to almost pivot the business
into what you actually want to build,
which is Fabindia 2.0.
For these reasons, today I am out.
Kaushal and Dhruv!
Why do you want investment?
To grow, obviously.
We want to expand internationally.
We were already selling in the Middle East and the US in 2014-2015.
We want to restart that.
Did you think if you did that we would feel connected?
Not a bad move.
But these nameplates
are found in every corner. You know that. They exist.
It barely takes two days to make them.
Do you expect me to look for a brand while buying this nameplate?
No!
We know a little.
If you continue down this path,
you can achieve 20%-30% growth
by pushing the vehicle with effort,
and opening different distribution points.
But if you want investment
the direction will need to change entirely.
Whether it's about building a brand
or creating a scalable, repeatable model.
Doing great work, helping artisans
and making money for yourself, you can achieve all of that.
I have no doubt.
But will you make this investable?
I have serious doubts.
For this reason, I am out.
- Good luck! - Thank you.
Your vision is clear, that you want to create a brand.
or invest in that direction as actively as you should have.
The artisans you are exclusively partnering with today
are your core competency.
I believe if you associate a brand with that,
you'll not only achieve growth
but also fulfil your aspiration
of ensuring that great craft doesn’t go to waste
and becomes successful.
Today, I feel that you haven't fully ventured down that path,
which is why I am out. All the very best.
I genuinely want to tell you that your designs
don't stand out.
But this does.
Right? This stands out.
I've always believed
that you should double down on your strengths.
and not just other things.
You should know what to say 'no' to. Say 'no' to honey
and other things that don't have differentiation.
And instead,
you need to double down on your strength.
I don't see that clarity in you.
For that reason, I am out.
But I found you very genuine.
Not just saying that for the sake of it.
You really care about the artisans
and that's really fantastic.
- Thank you. - Thank you!
I have seen these products a lot in places like Dilli Haat.
Everyone has seen them.
This is exploding the category, boss.
You should do something if you can. Push yourselves towards growth.
As we mentioned,
make it a brand.
You can do it. Currently, the growth seems stagnant.
And for that reason, I am out.
- Thank you, Sharks. - Thank you!
- All the very best. - All the best.
- God bless. - Keep the purpose going.
That's your exclusive lane to exit.
- Thank you, - Thank you, sir.
- All the very best. - Thank you.
[music playing]
Dhruv and Kaushal, welcome to PokerBaazi Zone,
We will do something unique today.
these five.
What you have to do is, there are business functions in business.
You have marketing, product,
there are operations and logistics specifically in your business.
So, you have to rank your top five for us.
Which is your first one? The straight!
I think, Human Resources.
Human Resource. Next!
- Next would be the product. - Product.
Product, okay.
- Then comes Marketing. - Okay!
- Next! - Sales.
Hmm!
And then, Business Ethics.
Business Ethics is your High Card.
This is quite interesting because, for the first time,
someone gave HR so much importance
to place it first.
Could you explain why?
- I think HR plays an important role in any organisation. - Yes.
- The team you have is what defines the company, right? So... - Hmm!
The company is a reflection of
- what people or teams we work with. - Hmm!
So, that's why I think it's the most critical role before
- Product, Marketing, Sales and Business Ethics. - Wow!
- So, I am assuming that culture is crucial in ExclusiveLane. - Yes.
would like to give you a ticket as an appreciation
to the National Poker Series 2025 worth Rs. 1 lakh.
It's hosted on PokerBaazi.
And the total prize pool
- is Rs. 100 crores. Here you go. - Thanks.
If you have the skills and strategy,
then visit PokerBaazi and make your winning hand.
Go and download the app now.
[music playing]
Jaquar presents Bringing Good Ideas To Life.
Be it impactful community-driven ventures
or even fun, energetic or quirky businesses.
Everyone has impressed the Sharks with their ideas
and taken advantage of their 'expertise'.
Guys, is it too overwhelming?
Don't worry, I am here.
This recap will remind you of everything.
'NearBook is a platform'
'where we can sell our old books'
'and buy them if we want to.'
'We've created GoPadFree,'
'which is India's first 2-in-1 period product.'
'It is leak-proof'
'and can be used up to 50 times.'
'Thank you, man. You did a great job.'
'Our flagship product is Moderate Calorie Crusher.'
'It gets rid of up to 40%'
'of carbohydrates and associated calories.'
'What you're claiming'
'could make this a revolutionary drug.'
'We've made Madmix,'
'which is baked, not fried,'
'less in fat and no added sugar.'
'Oh, my God! This is delicious!'
'I love 'paan'.'
'It tastes like raisin and feels like 'paan'.'
'Welcome to the world of demi-fine jewellery.'
'Along with our third co-founder, Shraddha Kapoor,'
'we're building India's most loved'
'demi-fine jewellery brand, Palmonas.'
'Why didn't Shraddha Kapoor come?'
'Your third co-founder?'
- 'She was very excited to come on the show. - Then?'
'But I told her that it was not her expertise.'
[laughing]
'I will drink my hair oil.'
'What?'
'Hair will start growing inside you.'
[gagging]
'Did you study where and why it failed?'
'Yes. I studied it'
'and was disappointed.'
[laughing]
'The investors were also disappointed.'
- 'My wife and I always watched it. - What?'
- 'Shark Tank. - What were your thoughts about it?'
- 'My wife liked it more than me. - Is it?'
'I'd ask her what she was understanding.'
'She'd applaud how inspiring it was'
'and ask me why I wasn't doing anything.'
'Oh! Superb!'
'You have a gold mine product.'
'Just go very deep.'
'No need to do 20 other things.'
'In the last two years,'
'the level of entrepreneurship has gone up.'
'The quality of entrepreneurs, '
'business plans and ideas'
'is remarkable.'
'Not only India!'
'I believe global entrepreneurs will now come from India.'
- 'Absolutely! - Right.'
'You will build a global company.'
'Hats off! I salute you from the bottom of my heart.'
All the pitchers proved one thing.
Proudly made in India for the world,
just like Jaquar.
'Shark Tank India, co-presented by Acko Insurance,'
'PokerBaazi and Swiggy Instamart,'
'co-powered by Adani and Jaquar Bath and Lights,'
'partners Rayzon Solar, ICICI Direct and Lenskart.'
The founder with us today
talks Hindi so beautifully that his Hindi teacher
would study at home out of fear of his questions.
Mr Ritesh Agarwal, Founder and Group CEO at OYO, is with us.
I am excellent.
That's excellent.
You've vowed to converse well today.
I came for a discourse. But if you want to converse...
We can do it. Sure!
I want to say it briefly
- if you allow. - Sure! You're permitted.
Today's question was asked by Abhinav Singh,
who is from Pune and is 32 years old.
His question is,
how long can companies thrive with a loss?
So, our business was always profitable
when we started OYO at a hotel level.
However, we invested more in fixed costs
like marketing and technology to scale up.
- There are two types of companies. You must've heard on Tank. - Yes.
See you in our next Ask the Shark with a new question and a new shark.