[theme music playing]
What is this?
- Paintings? - What is that?
What is this?
It's like a decor.
What is this modern art?
It's weird. There are wires there.
I think I got it! I think it's like...
It's instruments,
breeze or something. So, you have art that is musical.
It is something.
There are wires like a guitar.
- There are strings. - I think it's installations.
[theme music playing]
Hey!
Where are you going?
Surprise!
It's a harp.
I told you.
[music playing]
Wow! Amazing!
Wow!
What a magical experience, right?
So what I just did
was that I interacted with a textile
and I created a beautiful sargam with it
through e-textiles.
Will you believe me if I tell you
that this is made by Indian artisans with their hands?
Amazing!
Sharks, one of the reasons
this isn't commonly available
is because it requires specialised machinery
I bring to you my brand, Anuvad.
At Anuvad, through our patented technology,
we collaborate with India's traditional crafts
to create interactive products
that can be used as decor
traditional artisans and craftsmen.
By collaborating with them,
we are humanising technology
through crafts.
And this is called crafting intangibles.
Our innovation lies
in embedding technology within fabric in such a way
that you can't even tell
it's not just a regular piece of cloth,
Today, our ask is Rs. 50 lakhs for 5%.
Chhail, welcome to Shark Tank.
Thank you so much, Ritesh.
Have you worked in this sector in the past?
I mean textiles or something related to that.
I was born and raised in Ahmedabad.
I did my Bachelor of Design from NID Ahmedabad.
we follow a format where, towards the end,
we have to complete a final year project that spans 6 months.
This project can either be done in collaboration with an industry
or be self-sponsored.
But I was very lucky.
- I got an opportunity to do my project in Switzerland. - Wow!
I worked with a university based in Lausanne, Central Switzerland.
When I went there,
I got to know words like design innovation,
design research,
smart textiles.
What is a smart textile?
Any type of textile
that has a functional property,
which provides more functionality than regular textiles,
is considered a part of e-textiles.
Electronics.
We can make it light up, as you can see here.
We can also make it heat up.
The textile is not lighting up. You have installed the lights in it.
Basically, I have added an LED,
which is handwoven into its circuit.
The wiring is handwoven,
- and the LEDs are simply fixed on top. - You are right!
So, my patent is essentially
a woven circuit.
Is the design patent
- or utility patent... - It's a tech patent.
If we need to use a woven circuit in any product,
do we have to go through you?
- Precisely! - Worldwide?
At this point, it's an Indian patent.
I registered it in 2021.
In 2013.
Did you work anywhere else around that time?
I finished my thesis in 2013.
I returned to India.
I was working with a lot of home furnishing companies till 2016.
Were you designing for them?
I was.
In 2016, I made a proposal.
Because I come from a craft-led background.
At NID, we are craft-centric in textiles.
But I want to enter into electronics
and I wanted to go into something more innovative.
That is when I came up with this idea.
It might be possible to incorporate both.
2016 is when I took out my savings
and bought electronics.
I had a friend who was tech expert.
I went to the field with him.
That's how we created our first subject.
- Hmm! - I did my Master's there.
I got a job as a researcher.
- I was working as well. - You did Master's in what?
Textile design.
- Mainly, yes. - Wow!
But, Chhail,
- there has to be functionality. - Yeah.
- Absolutely! - I can see design, fun, music
- and light. - Correct.
But what is the benefit?
There are multiple benefits, Namita.
When I started this in India,
no one knew about e-textiles.
The idea was to start doing something interactive
so that you can break
the ice wall and people start to play with it.
There is medtech. You know there is a lot of monitoring
- that can happen through clothing. - Of course.
If you think about elderly care,
especially Alzheimer's patients, for example,
they often tend to get lost.
But if you have something like this,
which is handwoven and is embedded with GPS,
their caretakers can immediately track their location.
This way, they will never feel like they're being treated as patients.
That's often their biggest concern.
There is also sports tech.
Again, for monitoring stats and data.
I would like to get into heating also.
Because I was based out of Europe.
Over there, the gas prices were going high in cold weather.
So, I looked at heat-tech.
My expertise is in weaving.
For example, I can easily embed heating
in cushions or handwoven rugs
so that it looks like regular cushion or regular rug
that you can use normally in the summer.
If you've made
- a prototype... - Yes, I have. I can show you photos.
Show it to us.
This, for example.
Can you really tell that these are heated circuits?
- This is my patent. - It looks like a design.
This is the beauty of it.
If this cushion is on your sofa,
and during winter if you plug it with a power bank
and use it as heating pillows.
During summer, you can take off the power bank
and use it as a regular cushion.
How much does it cost?
I have not reached there.
Why didn't you bring this product?
Because this was something that
I would talk about should it come up.
I didn't really plan for this, very honestly.
I thought
this is what I've been doing
and this is what is picking up in the market.
You thought you will get funding with this, so why show that?
No, that is not true.
I want to ask, there are thermal clothes that are heat-tech.
- Yes. - Other companies are making them globally.
There are companies doing this in wearables.
Out of all the applications of e-textiles
- that you've mentioned. - Yes.
- There is one where commercialized products are scaling up. - Yes.
No! Google and Levi's recently
collaborated to make a trucker jacket.
- Right. - It was for bikers.
They embedded the entire technology into the cuff.
You can swipe the cuff to pick up a call.
What are some other use cases where it has been commercialised globally?
It's not so commercialised yet.
Who has been funding you for 8 years?
Ikea Foundation.
- Ikea Foundation. - You've got a grant, haven't you?
- I've got 3 grants. - 3 grants.
You tell us the history.
My first grant was in 2018
for CHF 10,000.
The second grant was in 2019
for CHF 15,000.
And then recently, I got CHF 20,000 on 22nd December.
How are you managing?
There is a big opportunity cost with all your qualifications.
Basically, I have been selling these.
And these have been doing decently well. - Really?
Compared to...
I mean, obviously, I am sure the metrics
- of other founders that you see on the show. - I am surprised.
I am surprised, that's it.
Yeah! It's actually picking up really well.
How much revenue are you making?
Last year, when we started,
our first invoice was around July 2023.
That year, we closed at Rs. 9.90 lakhs.
What did we sell?
I did a massive installation, which I can also show you
for Godrej.
[music playing]
Oh, that's beautiful.
- Yeah! This is what I did. - Is this at Godrej office?
Godrej has a show called the Conscious Collective.
- How much were you paid? - Rs. 7 lakhs.
- Most of your revenue came from that. - Yeah.
Did you get a good response
- compared to others? - Yes! This is what got us into business.
That's why we have commercialised it for home use.
What were your numbers in FY24-25?
As of today, we are doing 22.
- Rs. 22 lakhs? - Yes.
I think it should close at Rs. 35 lakhs easily.
Rs. 3 lakhs. I am doing it again this year
for the Conscious Collective.
- The rest came from the products you sold. - Yes.
Did you sell it on your website?
Surprisingly, I get direct inquiries.
Through such exhibitions.
Instagram is also one big channel.
It is not sold on the website. People send a text or call you.
- Yes. - What is the approximate pricing?
That frame you see over there
is for Rs. 1.10 lakhs plus GST.
- Okay! And? - Expensive.
And this globe here
is for Rs. 52,500.
The small product is the table.
We recently launched it.
So, we are still seeing. We launched that for gifting.
- What is the approximate amount? - Rs. 12,000.
- You mentioned cushion covers. - Yes.
You said you haven't decided on the pricing.
- Yes. - But what will it approximately cost?
I would sell it for around Rs. 10,000.
Which is your highest-selling product?
The bird globes.
- The one that costs Rs. 52,000. - The one with the birds.
Do you have a competition in this space?
No. Very humbly saying, no.
Do you think this has a demand?
I think I can create it. It's category creation.
This is not easy.
The 10 products you sold could be bought by someone just for novelty.
- Correct. I understand. - Who needs this?
Without any marketing,
I feel I have come from point A to point B.
Nobody knew what kind of globe they could buy.
If you had sold such beautiful art
without all this, you would still have earned half the revenue.
I really think
that this will be the new face
of textiles as you know it.
So, are you proud of the business you've done?
I think I am okay with it.
Are you working on products
or do you have plans in the future to make something high-tech?
- As you mentioned about Levi's and Google. - Levi's and Google.
Are you working on a similar product?
I'll be very frank with you.
We are a small team now.
I started on my own as a one-woman show.
It's only six months ago that I can say
that I have a small team of around 3 people.
- I must say that you have a high commitment level. - Thank you.
- I really appreciate that. - It's the only thing
that keeps me going.
I can see that.
- And you do it with a smile. Which is the best part. - Thanks.
But what is your dream?
If we fast forward 10 years, what does success look like?
I'd like to say this with a little bit of audacity if you don't mind.
- Please be audacious. - We all encourage audacity.
- Take your time. - Go for it.
When we talk about smartwatches,
Apple comes to mind.
Someday when e-textile is mentioned,
I would like Anuvad to be the first word
- that comes to your mind. - Fantastic. Very good!
You showed me a beautiful vision, right?
- But this distance between your vision and sales... - Yes.
Sometimes, it is quite distant.
- Sure. - You've already spent 8 years on this.
- Yeah! - One way to look at it is persistence.
The other way to look at it is, show me the money.
Right? Rs. 22 lakhs is as good as pre-revenue.
I hope and I really wish you make it happen.
- But as an investor, it's too early for me. - Fair enough.
And for that reason, I am out.
- I saw a fashion show, Chhail. - Yes.
They made a model wear a dress.
And it changed colours.
Must be CuteCircuit.
I don't know what it was made of.
It felt like she was wearing a regular dress.
- And it truly blew me away. - Yeah.
I immediately understood its use case.
I have a daughter and I am married.
I have a couple of sisters.
They would love something like that.
- Yeah! - They left wearing something
and they returned like they were wearing something else
without having to change.
It's a dream for women.
I am confused here because your tagline
is 'Humanising Technology'.
Until now, based on everything I've gathered,
it seems like a college project,
craft-centre,
research-oriented textiles,
still searching for a use case.
According to me, there could be only two ways.
You either own technology
and you patent it.
The other way
is that you come up with an amazing use case.
If you... I've witnessed it. My dad was ill.
I was trying to make him wear a watch.
It would detect if he falls. But he refused to wear it.
But that won't be the case with clothes.
And I think that's an interesting use case.
I don't see that today.
So, I am out.
But I want to call you for an installation for sure.
- If you will do it. - Absolutely! It will be my pleasure.
Okay, thank you!
Honestly put, where...
Take the globe or the frame,
where the wire could have come out,
you have embedded it in the thread.
This is a simple way.
But there is no need to embed it in the thread.
Because no one has to wear this.
Unless it is for novelty or a gimmick.
As Anupam mentioned. My children have these T-shirts.
When there are beats,
the lights move up and down.
It's great for children as a gimmick.
But no one is looking at it
as a replacement for textiles
or wearables.
It is crucial for a founder
to understand what the problem is.
The earlier you focus on the problem, before creating a product,
the fewer years you waste
building something that nobody wants.
So, for those reasons, I am out. But best of luck.
- Thank you! - I am unfortunately out of this today.
Because the direction that your business is headed in
is different from your vision.
Your vision is to make this a tech-first business.
Which is a very exciting business.
What you are doing today...
And I understand that it is due to economic considerations.
You will start a business
based on your current budget and then work on your vision.
But I don't see that today. For that reason, I am out.
- Okay! - But my friend is a board member of Levi's.
If you want to speak with him...
I can't commit that Levi's will help.
I can connect with the top executives at Levi's.
- I appreciate that. - You might get a chance to collaborate.
- I would be happy to help. - I would really appreciate that.
- All the best to you. - Thank you.
When you shared your story,
it reminded me of our journey
when we had just started.
For the first 1.5 years
of our company, we were making a coupon book.
A physical coupon book,
which you had to tear to get a discount.
It was called Money Saver.
We used to attend meetings every day
at restaurants, spas and salons
- to give us an offer to put it in our coupon book. - Yes.
It was 45 degrees in Delhi.
We used to go around Connaught Place.
We used to perspire.
We were 110% convinced
that this product has such strong value.
If you pay Rs. 500,
you will get a value savings of Rs. 50,000.
Why wouldn't anyone buy it?
Unfortunately,
we sold 50,000 copies
that too for Rs. 50.
After that, we had to change the business plan.
If there was one thing I could change about that journey,
this is what I would change.
From day one, I would've started
talking to the end customer.
'Will you be interested in buying this?'
Sometimes, this happens with founders.
We convince ourselves because we've put in so much effort.
We have put our everything into it.
You are talented.
You should involve a business-oriented person.
If you identify one power use case,
then this company will turn into a business
instead of technology or a product.
Today, I am out. But I wish you all the best.
And think about it.
Sometimes, even the bitter rejections
are the ones we need.
It hurts when you receive criticism.
But I think there is an opportunity for growth in this.
[music playing]
Welcome to ACKO Change Makers,
where we really welcome change.
It was portrayed beautifully here,
right behind me on this change makers wall.
Our today's change makers are Team Anuvad.
- Welcome! - Thank you! Thank you so much.
You are bringing so much modern tech
- into your traditional artwork and design. - Yeah!
Which is a great change. And I think it's on the right path.
We are so used to traditional art forms.
- Yeah! - And artwork. Especially home decor.
If we want to bring a change
to accept new forms of art like e-textiles. What can we do?
If we talk about our work,
- then craft is essentially a skill. - Right!
It is a way of work and art.
How do we advance this art form?
Our TVs, watches and phones have become smart.
Our art can also be smart, right?
- Nicely said. Amazing! - Yes.
You are completely revolutionizing
- the art industry and I love it. Congratulations. - Thank you.
Anyway, there is a lot of revolution
in our insurance industry too.
Take ACKO, for example. It has changed the landscape of insurance
with its offering.
Don't deal with unknown agents.
Know your insurer.
Trust ACKO,
it is a trusted choice of millions of Indians.
It has settled more than 3 lakh car claims.
So, this is what's happening in insurance.
But for you, to celebrate your time in the tank,
there is a memento for you
- from ACKO and Shark Tank. - Okay.
It's a very nice picture of you. So, please get it hung on your wall.
Thank you!
[theme music playing]
My name is Mehakdeep, aka Mak.
We are from Chandigarh to stir things up in the Tank.
- Wow! - Bansal is with me and not you.
- Nice! - Right, Sahil?
- Welcome, Bansal. - The first time,
with an ARR of Rs. 4 crores,
we were rejected and sent out.
The second time, at Rs. 8 crore ARR,
we were rejected again.
They say the third time's the charm.
Now we've hit Rs. 100 crore ARR!
We made it happen.
Now we are before the Sharks. Who knows what the outcome will be?
What do you say, Bansal? Shall we start the pitch?
Greetings, Sharks.
Your name is Bansal, so take the money from me.
His handle is anotherbansal.
Welcome, Another Bansal.
There was a time when Mak and I were overweight.
And we were really struggling to lose weight.
People told us to exercise,
take supplements and be on a diet and we will lose weight.
If it were that easy,
then nearly 34 crore people in India
wouldn't be struggling with weight
and lifestyle-related disorders related to weight.
And we need someone
who can support us throughout our journey
and guide us properly.
That's why we started Fitelo.
A weight loss platform
helps you achieve
a fit and healthy lifestyle
doctors and mind coaches.
the lives of 2 lakh people.
Our vision is simple, Sharks.
We aim to make India free from obesity.
Once India becomes obesity-free,
our country will experience progress, and our economy will grow.
In order to achieve this,
- our ask is Rs. 1.5 crores for 0.5% equity. - Whoa!
Mak and Bansal,
your valuation is obese.
It needs weight loss too.
Do it, please.
- Welcome! Where did you both meet? - Thank you, ma'am.
Also, both of you said
that you have lost weight. Tell us about that.
How much did you weigh
and what did you do to lose that weight?
Mak and I met at the gym for the first time.
We were around 16 years old.
But we weighed more than 100 kg.
For the next five years, we tried a lot of things.
They used to show machines on TV,
you have to exercise for 3 minutes.
There were diet plans.
A coach gave us medicines,
we tried that too.
- We were desperate to lose weight. - Okay.
There were days we lost weight
and gained it back.
From 2008 to 2019, we must've met a couple of times.
But we met again at an event in Chandigarh in 2019.
Back then, when I saw Mak,
- he seemed to have lost a lot of weight. - You were the same.
- I did lose a few kilos. - Okay.
I have a background in psychology, so I understood that.
I understood where I went wrong,
because of which I was gaining weight.
But I wasn't completely fit.
I asked Mak, how he lost weight and if there was a new medicine.
- New medicine. - After MBA, Mak...
- Master's. - He did his Master's in Nutrition.
- In 2016, he became a dietician. - Oh!
- Mak lost around 60 kilos. - Oh my!
Do you have before and after photos?
- Yes. - We do.
- It is quite old. This was how we were. - Oh, wow!
- Is that you to the left? - Yes.
Unbelievable!
This photo was taken in which year?
- This was around 10 years ago. - Amazing!
- Wow! Before and after. - Handsome!
This photo is for Shaadi.com.
- Yes. - I agree.
So, how did you lose the weight, Mak?
That old-school diet and exercise.
I focused on that.
When we lost weight for the first time,
we just went to the gym.
The second time, we were only on a diet.
That didn't work either.
Then we realised that it's the right combination
of physical activity,
diet and your habits.
This helps you lose weight
and that will be a sustainable weight loss.
You might be aware that there are many companies in this segment.
Can you explain your proposition in simple language?
What does it offer for your customers?
Which year did Fitelo start?
- 2000... - 2019.
We assign a personal dietitian
who makes a weekly customised diet plan.
- 800 full-time employees? - Yes.
- Wow! - Our total strength is 1,100.
How much does your subscription cost?
Our 3-month weight management program
We have a benchmark
based on the initial counselling. That is when we identify
that this goal is achievable.
Sharks, we can do a demo.
While you give us the demo,
simultaneously tell us... Maybe you can start with that.
What is your differentiation from HealthifyMe.
- Vishal Gondal has a company. I can't recall the name. - GOQii.
GOQii!
As far as I understand,
- their model is exactly the same. - Okay.
Explain that while you give the demo.
Sharks, our interface is simple.
I'll take you to Diet first.
Because that is 70%.
This is my today's diet.
So, I informed my coach
that I enjoyed eating burgers.
For the first time...
This is our secret sauce.
We have quantified recipes available.
We have 1,000 recipes like this.
If someone says they can't cook because they don't have time,
I can choose my dance class.
These are small group sessions,
so that you feel like you are in a studio
- while you attend your session. - It motivates you.
Is the live interaction happening on your platform or on Zoom?
- No, it's on our platform. - Your platform.
My coach identified that I tend to binge eat.
So, they will assign me daily activities
to do or to listen to.
How do we track this?
In Weight Tracker,
we have Fitelo's weighing scale.
Because data is important for us.
- Okay! - We track 12 parameters.
It includes BMI, body fat,
metabolic age and muscle mass.
- Rs. 1,200. - Quite affordable.
Our scale is available on Amazon.
It's a 24/7 support.
If I need dietician's help,
and I don't know what to eat...
It says, last week you gave me a burger, this week, give me pizza.
Is the coach available live 24 hours?
We have a dedicated team, this is not a coach.
- Okay! But this is a live team and not AI. - We have a live team.
I have dealt with weight loss struggles
since childhood.
When I was 17 years old, I weighed 118 kilos.
People call you 'Fatso' instead of your name.
Being overweight
is humiliating.
The one who hasn't faced it doesn't know.
The flow is okay.
But the practical challenge
is adherence.
If you follow it for 4-5 days
and then binge eat on one fine day,
everything gets negated.
How do you break that cycle?
First, we have an accountability partner for you
who is following up with you every week.
'How was your last week?'
- Your journey gets better. - Agreed.
We made diet interesting.
Burger and pizza comes under your diet.
If the diet is less difficult,
then you can follow it longer.
We added cheat meals.
When you go out and there is a change in your diet,
we are not asking you to log the data.
We are doing that.
I believe obesity has enemies.
There is stress-eating, not sleeping on time,
- and cravings. - Good.
This is all an issue and we have a team of more than
- 30 psychologists. - You're using a psychological approach.
- Yes. - Very good!
How many customers are on board?
And how many new customers are through referrals
- or paid? - Currently, around 40,000 paying customers.
- 40,000. - Yes.
60% of our customers
come from non-paid channels.
30% comes from referrals.
Secondly, our strength
is social media.
- The balance is paid through advertising. - Yes.
- Yes. - Do you do this for general health education?
Because the tech platform gives you a unique ability to do this.
Our strength,
which we believe is our moat,
is our ability to generate engagement on social media.
- Okay! - From day 1,
we've been doing this.
We are trying to spread awareness through our content.
When you say social media,
Are you talking only about Instagram or Instagram and YouTube?
- Facebook too. - Sir, we have multiple properties.
Some, my own as a dietician and some of the brand's.
From which platform does the majority of the traffic come?
90% of the current traffic comes from Meta
which has an equal split of Facebook and Instagram.
- How many pages do you have in total? - Six pages.
- Six pages. - Yes.
Our current average order value is about Rs. 11,000
We track retention through cohorts.
Our observation about the industry has been
that people generally come,
for a while they feel they've got results
- and so they want to continue. - Hmm.
But they keep coming back because events in their life keep changing.
Cities and jobs change.
Or there's a wedding at home.
- It's a premium model only. - Okay, got it.
is selling your own supplements.
Why haven't you thought about that revenue model?
- We were busy solving this problem. - [chuckles]
We believe this problem is very big.
You mentioned you were rejected despite an ARR
of Rs. 4 crores and 8 crores.
What's the story behind that?
We actually applied here.
- On Shark Tank? - Yes.
Our revenue in year one was Rs. 1 crore.
In year two, it was around Rs. 4 crores.
- Shark Tank Season 1 year one, Rs. 1 crore. - 20...
- Shark Tank Season 2, it was... - Yes.
- Again, Rs. 8 crores. - Rs. 8 crores.
We didn't apply in Season 3.
Our revenue then was Rs. 32 crores.
- We're currently at about Rs. 100 crores. - Oh my God!
The year closed in March.
- We closed the year at Rs. 91 crores. - Okay.
- FY 24. - Yes.
- You're on an ARR of Rs. 100 crores now! - Yes.
We raised a fund of Rs. 11 crores in January 2022.
- Valuation? - Approximately Rs. 70 crores.
After the fund raise
They gave us a list of the top five auditors to get our audit done.
That's when we learned accrual for the first time in life.
but we decided to fix the EBITDA even if we progressed slowly.
How are you fixing it?
The best way to fix it is don't grow.
That's what you did.
If you don't grow,
- your pending accrual from last year... - Will catch up.
It'll be carried forward to this year and you'll make a profit.
So, if you do only Rs. 115 crores this year,
you're bound to make profits whether you do anything or not.
You must be running out of cash.
We have cash.
- How much? - Rs. 21 crores.
How?
We've only been collecting cash for a long time.
- We never... Our AOV is very high. - Yes, right.
- What is your projected EBITDA? - 5%.
what was your revenue on an accrued basis?
Rs. 7.5 crores.
It has definitely slowed down this year
for a few reasons I believe.
This year, we saw that the more you spend on paid marketing,
the more the returns start to deteriorate.
So, we took a call not to burn more money in the business.
We started pulling back our marketing budget.
There was a time last year
when our monthly marketing budget nearly touched Rs. 4 crores.
Now that number is less than Rs. 2.5 crores a month.
Could you give us your unit economics?
Our gross margin is 70%.
30% is the cost of dieticians and coaches.
We arrive at CM1 after deducting the cost of the sales team,
platform charges and the no-cost EMI charges
and that leaves us with 51%.
- That's an expense of Rs. 19. - Yes.
After deducting the marketing cost, the CM2 is 25-26%.
Then comes the fixed cost and others.
Is your fixed cost Rs. 27 for every Rs. 100?
Around 25%. Yes.
- Does it largely comprise of the corporate office staff? - Yes.
What's their average pay?
Rs. 25,000-30,000.
Okay, Sahil and Mak.
It was nice to meet you.
You built a good business
and that too quite capital-efficiently.
You mentioned your retention rates earlier.
It was 42% and then rose to 51%.
In the retention world, this is called a smile curve
which is a positive attribute.
It means...
Let's say you have 100 customers in M0.
Then they go to 30, 42 and then 51.
The best internet businesses have this attribute.
You see, the smile curve has value
only when it is coupled with good economics
because when the marketing spend is too high,
you can create a smile curve.
And when the marketing spend is reduced,
many times, that smile curve doesn't remain a smile curve.
Sad curve.
[chuckles] Yes.
Depleting retention curve.
I've done some rough maths.
I think your retention curve will drop significantly
and that will build pressure on your P&L.
Now, the business will enter a readjustment phase.
That's not a bad thing.
I mean, we've done a lot of readjustments in our businesses too.
But because your ask is too high,
for that reason, I'm out.
I wish you all the best.
Thank you.
Your business has a significant fixed cost.
Because the fixed cost is so high,
your business will always be exposed to risks.
If your revenue drops slightly during the season time,
then profit and loss could pose a challenge.
The next 6-12 months will tell us
whether the model you wish to switch to
is successful and to what extent.
For that reason, I'm out.
I'd like to stay connected though and track your progress.
We might join hands
maybe at a higher valuation than what you asked for today.
All the best.
Thank you.
Look, the point Ritesh mentioned as your biggest weakness
is also your biggest strength in my view.
This category has freelancers.
Getting them to adhere
and also, the client getting the same coach consistently
is your biggest strength too.
No, we don't know the attrition.
It must be 70-80%.
I think around 40%.
- 40%. It's good. - 40%.
Not bad.
The second thing is your retention numbers.
Where in two years,
42% of people in India
are coming back to buy something which is a Rs. 11,000-AOV product
goes to say something magical is happening.
So, I'll make you an offer.
Oh, wow!
Rs. 300 crores.
Obviously not!
Rs. 75 lakhs for 1% equity
which is a Rs. 75-crore valuation
plus Rs. 75 lakhs in debt at 10% interest
for a three-year time period.
Yes, Anupam. It's the psychology-driven approach.
The other apps will ask you to track your calories
and limit your portions
which is difficult.
Okay, there are different features but fundamentally, the same thing
- at a broad level. - Yes.
- Okay.
So, um... Love it!
I understand these businesses somewhat
where we build marketplaces on two sides.
So, a lot of network effects kick in.
This was your 3-5 year journey.
I don't know if you're ready for that.
You have to do marketing.
You don't have a choice
because this is a marketing-led business.
You are up against at least two big competitors.
What you can do
is become very sharp at your marketing and advertising.
You can do it at 50% of the cost
as your largest competitor.
In order to embark on this journey,
you'll have to take this route.
Somebody will have to fund you.
And the alternative of not being able to do that
is you'll still do a business of Rs. 100-200 crores
but there will be no margins.
So, for that reason, I'm out.
You have an offer.
Good luck.
I was called fat during my school days.
I don't think a lot of people knew my name.
And Kunal is right about the emotional impact it has.
I started emotional eating because of that low self-esteem.
You've added a mental health aspect.
I think that is the most important one.
I think by adding a supplement's business,
this business can be activated.
- So, I'd like to take a bet on you. - Oi! Well done, girls.
Vineeta, I can join you provided you're okay with a royalty.
Will you give a royalty for an increased valuation?
Could we hear the offer first, ma'am?
Good answer.
- Okay. - We'll go together.
Rs. 1.5 crores
for 1.5% equity
and 1% royalty on sales
till we get our Rs. 1.5 crores back.
We'd like to propose a counter.
Rs. 1.5 crores
for 1% of the company
which is a Rs. 150-crore valuation
and 1% royalty
till the time you get your money back.
[tense music playing]
We accept your counteroffer.
You have a deal.
[joyous music playing]
[camera shutter clicking]
'We don't have a problem with the royalty'
'because it's a part of a business that will eventually grow.'
We stuck to our story. We want to build profitability.
And because we want to build profitability,
we don't have a problem in passing on the royalty to them.
Team Fitelo, welcome to the PokerBaazi zone
where you hold the cards,
Not one cheque, you hold two cheques!
- Are you happy? - Very.
I'm sure business has a few areas of focus too.
Well, tell me what your top five areas of focus are
and rank them, please.
As in, what would be your Royal Flush
and what is your Flush or number five?
Royal Flush would be the product.
Product, great.
- Straight Flush would be... - Hmm?
Customer service.
Customer service. Interesting.
Four of a kind would be our tech and product.
Tech and product.
Full house would be team culture.
Which is your flush!
The last one, that we learned today, is finance and accounting.
Finance.
Great. You have good clarity of thought
and download the PokerBaazi app now.
Let me give you a real deal.
Go to Lenskart app or lenskart.com
and participate in the "Offer Or No Offer" contest.
[theme music playing]
[theme music concludes]
- Sharks. - Yes.
- Greetings. - Greetings.
Do you remember
- visiting your maternal grandma during the summers? - Yes.
Absolutely.
When she'd very fondly seat you on her lap
and feed you your favourite dish.
That food didn't just satiate your hunger
but left you feeling content.
Absolutely.
Your grandma's house wasn't just a place or memory
but an emotion too.
Today, either we're far from home
or we don't have time.
When we come home after working a 10 or 12-hour shift,
our hearts yearn to have that delicious and healthy food
made with love.
Greetings, Sharks.
- I'm Debjani Mukherjee. - Oh, my!
and we're from Kolkata.
Nanighar is an online app-based food service
that delivers food made by local mom chefs,
Our FSSAI-certified mom chefs
prepare their authentic cuisines
This platform provides every such mom
with an identity.
It also provides economic empowerment.
Today, we are present in Kolkata.
We've already made over 1 lakh deliveries.
We have a network of over 500 certified mom chefs.
to deliver a granny's love
and a mom chef's deliciously cooked food
to every alley and city in India and everyone.
For this, we require your support
and just Rs. 1 crore for 5% equity.
Sharks, welcome to Nanighar
where every dish
goes straight from our homes and into your hearts.
- And we are accompanied by 1 out of our 500 mom chefs... - Wow.
- Who has prepared food for you with love. - Oh!
- Greetings, Sharks. - Greetings.
- [Bengali] Are you from Kolkata? - [Bengali] Yes, I'm from Kolkata.
Now, it's evident that you married a Bengali.
[Bengali] My husband is from Kolkata.
She's a Bengali daughter-in-law.
[chuckles]
- Thank you so much. - This is veg for you.
- You did your homework. - Vegetarian.
- Yes. - Ooh!
This is Bengali Sweet Pulao.
- Oh, wow! Thank you so much. - Try it and let me know.
- Are you Bengali? - Yes.
He's Chatterjee too.
She's Mukherjee.
Do you know Kaushik Mukherjee?
- Yes. - Okay.
He's her better half.
- Oh, wow. - [giggles]
No, she's the better half!
- [laughs] - It's evident.
Are you each other's better half?
- That's right. - Yes. We're husband and wife.
- But your last names differ. - Yes.
[laughs]
She wanted to retain her maiden identity
- which I loved. - Ah!
- It is a great thing. - And...
Our daughters have her maiden name.
- Oh! - Wow! How unique!
We decided if it was a boy, he'd take the last name Chatterjee
and a girl would be Mukherjee.
- Oh! - God answered my prayers.
Amazing.
God gave me three daughters.
Luckiest father.
[light-hearted music playing]
- Ma'am, did you make this? - Yes.
This is raita.
It tastes very good.
How did you come to know about them and why did you join them?
- For a very emotional reason. - Tell us, please.
In January 2021, my younger brother passed away.
- Oh, I'm so sorry. - Sorry to hear that.
- I'm a handwriting analyst. - Oh, wow!
I work with handwriting and do counselling as well.
I was really upset after my brother died.
They said, "Auntie, do this."
"You're fond of cooking. Why don't you join Nanighar?"
I always wanted to do a food business
but I didn't have a delivery van.
Nanighar provides that facility.
I just cook the food
and their rider comes home and picks up the delivery.
You don't have to worry.
How many meals do you sell
or deliver through them every month?
If the app is switched on,
I get 3-4 orders daily.
No. If it is on... Do you log off it?
I do log off it sometimes.
How much do you approximately earn from this in a month?
- They pay me weekly. - Okay.
So, I make Rs. 12,000-15,000.
- Per week? - Yes.
How much profit do you make?
- The profit is fifty-fifty. - Okay.
How much do you sell a packet for?
I sell veg for Rs. 125-150.
Thank you so much.
- Really appreciate you coming here. - Thank you.
Thank you, ma'am.
I am glad.
[Bengali] Okay, take care. [chuckles]
- Do all the 500 chefs get as many orders as ma'am? - No.
How much do the chefs make on average?
Rs. 30,000.
Does the customer order from you or do you sell on Zomato and Swiggy?
Currently, what we are struggling with is logistics.
Delivery.
We've been burning cash for the last many years
only because of deliveries.
So, we've tied up with Zomato this year.
We're not a restaurant.
Nothing is ready. Everything is freshly made.
So, we've trained 20 mom chefs.
So, if you wish to pre-order...
If you want, we'll give you the app demo.
- Can I just show our app to you? - Sure.
Please give me the phone for a minute.
Please let him do something.
[laughs]
If you do everything, what will the poor guy do?
- So, you... You know better. - [Anupam laughs]
The location is on the top.
After that, we can search
- for any food like... - Search for Kashmiri.
Let's go with Kashmiri.
When I feed in Kashmiri,
- this is the personal touch we don't get in Zomato. - Very nice.
We have a write-up.
- For that particular mom chef... - For every mom chef.
We have a write-up.
If you look at the bottom, she's FSSAI-registered.
This is 'airy and clean kitchen' which is our certification.
And her category is 'star chef'.
- You got 500 chefs FSSAI-licensed. - Everyone.
We help them. They pay for it.
These are all...
- They're not always available in local restaurants. - Yes.
- From six hours to... - Seven days.
You can schedule it till seven days.
and if you want a real-time order,
- order from Nanighar via Zomato. - Right, sir.
- You have 20 trained home chefs... - Right.
- Who you closely work with. - Right.
It's not like we didn't try to run the live orders
and pre-order kitchen together.
When we tried the live kitchen, we had more bleeding
because we had to deliver the food as soon as we got it.
So, we'd get done with that and then only went on Zomato for live orders.
- The company Holachef worked on the exact same model. - Yes.
They raised a lot of capital.
Why did it fail?
I think one of the biggest reasons was the delivery cost
plus SOPs.
Of course, delivery is one point.
Another point was this.
In today's date,
we've built a standardised process
and any dish can be made
using the same standardised process.
I'm not saying Holachef didn't do that,
but there was a mismatch.
There's a structural problem in this.
You'll find two types of chefs.
One like Ms. Chatterjee who works part-time
- and then you have full-time. - Yes.
The structural problem that arises is
with those who work part-time.
- You don't know when they switch on and switch off. - Absolutely.
You know, I want to order the same food.
If it's not available, that's a problem for me.
Those who work full-time think,
"Oh, I'm earning well now."
"Why don't I move directly to Zomato or Swiggy?"
- Anupam, this isn't just a business venture to us. - Okay.
This is to enable women empowerment.
We've worked with many stay-at-home moms
and observed this.
When they turn 45 and they've sacrificed everything,
they feel a certain emptiness.
Nanighar has given them another platform.
So, this is also the reason and not just making money.
We were very well off when we were doing our own service.
Could you give us your background?
I completed my graduation in 2002.
Then I did my MBA.
After graduation, I worked with Berger Paints, ICI
- and then I was with HDFC Bank. - HDFC Bank.
Sales and marketing distribution.
And last, I was working with Century Ply.
I started my career in advertising.
Then I worked with a real estate organisation in Kolkata.
Actually, my family is also into real estate.
We ran a PPP model with the Government of West Bengal.
There were six promoters
including Emami, Keventer and others.
When Urbana came...
It's a conglomerate.
They had a Rs. 7,000-crore project.
I joined the project in 2007 as the GM
and resigned in 2022 as the CEO
because I wanted to give my full time to Nanighar.
Which year did you start Nanighar?
We started Nanighar in 2019.
July-August.
I didn't understand one thing fundamentally.
You've been running your app for five years.
You said you're burning cash.
Why not only be
a merchant on Zomato and Swiggy?
If we were to take the concept of Nanighar to Zomato,
then Nanighar would lose its warmth
and the people associated with Nanighar
would lose their identities.
We've done the math, Sharks.
Our cost per order is Rs. 96.
When my order value goes to Rs. 264, I'll hit breakeven.
On Zomato?
you'll get a good meal in Rs. 80.
That's our struggle.
Our average price is between Rs. 150-175.
If I get an order value for Rs. 500, I'll make a profit.
Could you tell us your revenues?
This year from January to November,
we have done around Rs. 64 lakhs only in Kolkata.
What was the loss?
Every month, we invest Rs. 1-1.2 lakhs from our pocket.
Rs. 10 lakhs is your loss.
Okay.
Full year's projected sales?
We currently do Rs. 6 lakhs on average.
What was last year's figure?
- Last year was very bad for us. - Tell me.
Sharing eases one's sorrows. Tell us.
Last year, it was Rs. 48 lakhs.
How much was the loss?
Last year, the loss was around Rs. 25-26 lakhs.
Your loss is more than your revenue.
Your revenue is 25% of Rs. 45 lakhs which is Rs. 10-12 lakhs.
You've lost Rs. 25 lakhs to make Rs. 12 lakhs.
This is the same thing as
if you give me Rs. 100, I'll give you Rs. 200.
We can play this game all day provided you're ready.
I understand women empowerment
but you can do women empowerment only if you have a business left.
- Perhaps, you have too much money. - No.
But you'll run out sooner or later, right?
So, why?
If we launch this model on a pan-India basis,
- we'll get volume. - Oh! Oh, God!
- We've already started... - Oh, God. No!
- In Delhi and Gurgaon. - No! No, my friend. My friend.
This is a local business.
If you don't crack the unit economics
and logistics of one area,
the more you expand,
- the more loss you'll make. - The more we'll bleed.
How much of your money did you invest?
Approximately Rs. 2.5 crores.
Didn't you raise any capital?
No, we are bootstrapped.
Stop! Stop, you're wasting your money.
If you'd invested Rs. 2.5 crores directly to empower women,
you could have changed the lives of so many women.
Look, I think there are two things you can do.
Do the business on Zomato and Swiggy.
Stick to the specialities
of different cuisines with a few women on board.
Make such an arrangement with them,
if you make a Rs. 10,000 profit, charge a commission of only 2%.
- When you make Rs. 20,000, charge 5%. - Yes.
So, your margins will also keep on increasing.
The second way.
If you really love your app and want to run it,
there's an interesting opportunity for a tiffin service.
So, your logistics cost per delivery
- will significantly reduce. - Will reduce.
But because of the structural problems, I'm out.
Good luck.
When you sell on Zomato, are you profitable or not?
Yes, the profit is 2%.
- But it's a loss when you sell on Nanighar. - Right.
I'd be redundant if we had to sell on Zomato.
Nanighar has become a brand name and people recognise it.
- You could apply it. - Where?
Make a new Holachef
but on Zomato and Swiggy.
You'd however need to let go of your attachment.
- I'm out for today. - Okay, sir.
Wish you all the best.
I don't agree with Kunal's suggestion.
A lot of people are running home tiffins on Zomato and Swiggy.
It's already a crowded market too.
Your challenge is that you picked a market like Kolkata
where no one wants to pay more than Rs. 175 for home food.
Pick a market where people miss having home food.
- Like Bengaluru. - Bengaluru.
- Like Mumbai. - Exactly.
I feel the bigger problem than that is,
because you had your own capital of Rs. 2-2.5 crores,
perhaps, your hunger didn't let you iterate that as quickly.
So, my suggestion to you is
to run a little faster and iterate.
- Good luck. I'm out. - Thank you.
You know, the food business is a very difficult business.
But I agree with Kunal
and you can do this on Zomato.
And the reason is
It's not like they'll suddenly quit and move to Zomato.
It's not so easy for them to do it independently.
- They'll need hand-holding for quite some time. - Absolutely.
On my part, I'm out
because I won't be able to help you much.
- I wish you the very best. - Thank you.
Look, this industry is very hard.
Nowadays, retail QSR formats
or restaurant-type formats,
with many options under one roof,
are growing in India rapidly.
Can you open Nanighar outlets
that offer fresh, hygienic and trustworthy food
with the same cuisines?
If it can be opened in a restaurant format,
its opportunity would be disproportionate.
Whether you take the SOP or the menu from the home chefs
and then enable the restaurant, I do not know how you'll do it.
But since you're getting so many options,
my job is to give you one too.
I wish you all the very best.
- I'm out of this deal. - Thank you.
- All the best. - Good luck, Debjani and Arijit.
- Thank you so much, Sharks. - Thank you.
Thank you.
'How our vision and line of thought process'
need to be changed has become clear to us now.
And we are going to really kill it
with focus and with what we've learnt today.
Especially what Ritesh and Vineeta said,
we'll take Nanighar forward in that direction.
[solemn music playing]
- Team Nanighar, welcome. - Thank you.
How does it feel? Are your spirits still high?
- Yes. - Full on high.
I used to tell my grandma,
when I couldn't speak English properly,
"Grandma, you're the best cooker."
- She was the best cook. - [all laugh]
And I felt very nostalgic.
I'm always in Mumbai, I'm never home
- and I really crave home-cooked food. - Right.
I keep searching for home-cooked food.
Hopefully, you'll be getting it in Mumbai also.
- Really? - Yes.
I can't wait because I'm really looking for home-cooked food always.
So, thank you for actually taking that step.
I was really emotional throughout.
You feed people and bring a smile to their faces
and I know the Tank didn't go the way you wanted.
So, I ordered something for you from Swiggy Instamart
and luckily, it arrived in ten minutes.
Thank you, sir.
- These are some ice creams from me to you. - Oh, wow.
So, please cool down and relax.
- Enjoy some sweet treats on me. - Thank you. - Thank you so much.
Thank you so much. Give us some food if it's left.
- We have food. - It's left, for real. - What is it?
The crew is eating it already.
- I need to check. - 'Missi roti' is left.
Everyone is eating 'missi roti' and 'ker sangri'.
Guys, I need to try their food before it gets over.
Swiggy Instamart is at your service if you need to order something.
It'll come in ten minutes. Order now.
Come with me, both of you.
- You have to feed me. - Let's go. Yes, please.
Shark Tank India, co-presented by Acko Insurance,
PokerBaazi and Swiggy Instamart,
co-powered by Adani and Jaquar Bath and Light, partners
Rayzon Solar, ICICI Direct and Lenskart.
'Ask the Shark.'
For him, even the unknown breeds contempt.
We have with us the co-founder of Snapdeal
and Titan Capital and the promoter of Unicommerce eSolutions,
- Mr Kunal Bahl. How are you, sir? - I'm good, Aashish.
Sir, today's question is from Ragini Prajapati from Roorkee.
She is 34 years old.
I've been through many, too.
- Hmm. - Come what may!
Your question
about how to motivate your team.
There is only one answer to that.
Transparent, authentic and real-time communication.
When a company's situation
is critical, the team
often discovers it from outside
instead of within.
The company's leader, CEO, and founder
are responsible
for sharing the news with the team.
Be it good news,
bad news, or terrible news.
The team mustn't discover it from the outside.
- Only that can build trust. - Yes.
Our communications with our team
were always transparent, authentic and in real-time.
That is why
they stayed with us,
no matter the situation.
We fought tough situations
- together. - Yes.
That is why we could gain victory over every tough situation.
Sir, you're always aligned with a vision. But that might not
be the case with some members of your team.
They might only be a part of the team.
So, does it get tough to go ahead with them during tough situations?
A founder or CEO is responsible
for aligning everyone with their vision.
If
You and your company should have the same blood.
Got it. Thank you so much for the insight, sir.
See you at the next Ask the Shark with a new question and a new shark.