[theme music playing]
Sharks, we are all aware
of modern health issues
like low energy, weak immunity
and poor gut health. The main reason behind this is the nutrition gap.
But I don't know how to bridge this gap.
[laughing]
Don't worry, Nutrition Genie is here!
What order do you have for me, sir?
I wish there were an easy way
to provide my family with good nutrition every day.
That's all? Here you go.
Feed them bottle gourd, Indian squash and sponge gourd.
Mr. Genie, when I mention healthy vegetables,
my family comes up with new excuses.
Then try this.
Multivitamins, tablets, syrups,
health drinks, gummies.
Mr. Genie, these are bitter medicines
and it's full of sugar.
There's no way I can give this to my family. Impossible!
Amazing!
Impossible! It is impossible to fulfil your wish!
I wish there was someone who could fulfil my wish.
Found it!
There it is!
What?
Good Monk. Mix it with food
and fix your family's nutrition.
Yes! This is perfect.
Lovely! That was brilliant acting!
You practised a lot.
We are from Bengaluru.
Along with expert nutritionists
and food technologists,
we created a unique powdered formula
a 95% improvement in people's energy, immunity, and gut health.
we have positively impacted 40,000 families.
Our vision is to bring easy and effective nutrition
to every household's dining table.
And this will be our greatest victory.
For this, our ask is Rs. 1 crore of investment
for 1.67% equity in our company.
- and fix your nutrition. - Fix your nutrition.
I am from Gurugram and I come from a business family.
I graduated with Bachelor's in Information Technology.
And Master's in Computer Applications.
After that, we got married.
And we have two lovely sons.
They are 16 and 14 years old.
I was born and raised in Rishikesh.
After 12th grade, I did engineering at IIT Varanasi.
After 4 years of Engineering, I went to IIM Kolkata.
I worked with them for almost 15 years.
What was your last role?
Category Head for Chocolates.
Dairy Milk Colour.
They used to joke that if we slit our wrist, the blood will be purple.
[laughing]
- Your first company is your first love. - Yeah.
After that, I moved to Diageo.
I joined them as Chief Innovation Officer.
After that, I got promoted to a more operational job
where I led the business of Indian spirits.
Ritesh, the powdered products in the market
have a taste to them.
They have a different design.
It is targeted at adult audience.
Your products are tasteless.
Kunal, if I give it to you as it is, they all have a taste.
But our patented approach
is that when you mix everything and add it to your food.
- Please go ahead, sir. - Sure, we will.
Let's start from here.
- My wife will start from there. - Okay.
- Oh! - What is this, ma'am?
This is dal.
Sharks, you have two bowls.
One bowl contains plain dal,
and in the other, we've added Good Monk to the dal.
You need to taste both
and tell us the difference and which one contains Good Monk.
I am thinking of my children.
I think both taste the same.
So you think they taste the same?
- There is no difference in taste. - Yes.
They are similar. The one to my left is slightly thicker.
- But I think they are quite similar. - I agree.
Does the red dot or the black dot contain your product?
- What do you think? - Red dot.
- Black dot! Oh my God! - It's the black one. Yes.
Oh!
- The black dot. The thicker dal has a red dot. - I thought it was red.
I thought it was the red one.
You tricked us.
[laughing]
We've been tricking everyone.
- Amazing! - We've been tricking the children.
- I love this. Revenge on the children. - Yeah.
Look at this. This is the quantum
of nutrients in plain dal.
The amount of vitamin A, iron,
D, B12, B9, B6 in the normal dal.
This is the nutrient value in dal without Good Monk.
If we go to the next slide,
you will see that the dal with Good Monk
- has improved the nutrient value. - Oh my!
Ultimately, we are giving a regular dose of medicine to children.
When we eat natural food, you showed us a bottle gourd.
They have natural ingredients.
Now, we've started giving children a daily dose.
His life will be dependant on that dose.
As parent founders,
we always say
that we should feed our family.
Give them healthy food, there is nothing better than that.
But the reality is that it is not possible.
80% of Indians have micronutrient deficiency.
Over four months of regular usage with 72 participants,
we conducted safety tests,
including liver and urine tests,
as well as blood markers.
On whom did you conduct the testing?
We had external contestants. We conducted tests on external CRO.
It is different.
Let's dig deeper.
Everything isn't purple. We have green and red too.
These sachets are important, right?
- Yes. - Right!
How many sachets do you put in one go?
Say there is a bowl of food.
When we launched,
That is a good solution.
Why didn't anyone else come up with this?
Despite our background in product development and innovation,
it took me 15 months to crack this.
Because every ingredient has a taste, right?
And when we add it to food, it shouldn't alter the taste.
So, basically, the first was science and the second involved the chef.
In the chef part, the challenge
was determining how to mix
each ingredient without changing the taste.
We understood the product. Effective and efficient.
Sales? Numbers?
We launched this in January 2023.
In the first year, our net sales value was Rs. 75 lakhs.
This year, our plan is Rs. 5 crores.
Net was Rs. 35 lakhs.
And the month before that?
Around Rs. 33.5 lakhs.
In February, our net sales were Rs. 6 lakhs.
The overall burn is around Rs. 45 lakhs per month.
On Rs. 35 lakhs of sales.
On Rs. 35 lakhs of net sales.
I will explain the breakup.
25% is COGS.
Our inherent gross margin is 75%.
Our primary, secondary freight
and marketplace commissions are around 16%.
Our scale is currently smaller and our marketing cost
is approximately 85% of performance marketing spends.
Around 85% of?
Of the sales. 85% of the net sales.
To sell a product worth Rs. 100,
you are spending Rs. 85 on marketing.
Yes!
Oh my!
Which is roughly equivalent to a CAC of around Rs. 550.
So, it has come down to Rs. 550 from Rs. 1,050.
Our net CM2 is currently - 26%.
We are on the road map
to make it neutral by the end of January.
The marketing cost is a big concern for me. It's 85%.
- I understand that it is taking time to explain a new product - Yes.
- You are spending a lot of money. - Sure.
But you said you need to use this sachet every day.
- People have to consume it daily. - Yes.
How many percentage of the users
are using it daily from the first time they purchased from you?
In the last 3 months, 32% have come back to us.
That customer comes back to us after around 50 days.
22% of customers
are repeat customers every month.
70% of sales come from our website.
25% of sales come from the marketplace.
And 5% sales from retail.
You couldn't make it to quick commerce yet.
Hopefully, after Shark Tank.
How much is the total burn?
Until now, our total burn is roughly around Rs. 11 crores.
- Oh! - Yeah!
- 11? - Yes.
Crazy! What are your total sales?
- Lifetime sales? - Rs 2.75 crores.
Yes.
We were bootstrapped.
So we put Rs. 1 crore of our own money
towards the company to just get them all rolling.
We did that. We have done two rounds now.
Tell us about both funding rounds.
The first round, which was our seed round,
was in December 2022,
it was pre-revenue.
Back then we raised Rs. 6 crores for Rs. 34 crores pre-money.
After that, we raised a recent round
in January 2024.
That was a round of Rs. 6.5 crores.
What was the valuation?
The valuation was Rs. 40 crores back then.
And we are in the middle of another round right now,
which is the pre-series A round.
Where we are raising Rs 10 crores.
Tell us about the equity split.
I have 48% equity.
Sahiba has 12% equity.
The rest is with the investors.
In this round, you will lose another 15%-20%.
Roughly 15%, yes.
- So, both of you will be around 40%. - 50%.
I don't think you will be able to create
a category with around Rs. 6 crores.
You don't have money.
All five of us didn't know
- that this was available in the market. - Yes.
You will need a lot of money to make people aware of this product.
What are you doing about that?
This product...
If a nutritional product starts working on me
then I tell others about it.
- Word of mouth. What else? - Yes.
The other thing
- is to build this approach through nutritionists, right? - Yes.
- We have 350 nutritionists who are our affiliate partners. - Yes.
We curated them over the last
- 18 months. - Understood. That's a good one.
- Amarpreet. - Yes, sir.
Are we in a rush?
Are we in a rush for?
To build the business.
Kunal, I don't think we are in a rush.
I can give you a few examples.
When we innovate products,
I have two amazing ideas
that our team pushes us to launch,
saying it will drive business growth.
But we are not launching them, as we are gathering clinical evidence.
So, I would say we are not in a rush
to launch the products and build short-term business.
But are we in the rush to
let more and more people know about our winning products
and get to a 1 million store distribution
and make a real impact in the country? Absolutely, yes.
How can you make this business work in GT? I don't understand.
At Kirana stores, nowadays, what sells is something
that even a person earning
- Rs. 6 lakhs per annum can afford to buy. - Our...
- How will you... - It is...
You can tell me directly, Sahiba.
- Yes. - You don't have to say it through him.
[laughing]
I was telling Amar that our sales...
Our maximum sales
come from small cities.
There are a lot of people in small cities
- who can afford it. - We... Yes.
The problem is not small cities.
- The problem is Kirana stores... - I understood your question.
They sell those products.
Why did big companies
start selling sachets instead of big bottles for Rs. 5?
Because bite size is a problem.
There is a clarity that will keep evolving.
In the initial stages, we have to be online-centric brand
because we get an opportunity here
to build a good brand.
But eventually, within 5 years, our vision
is to make our business 50% each.
It will be 50% online and 50% offline.
We will try to ensure that our products are packed similarly,
with individual sachets priced at Rs. 10.
The concept is to mix it with food and fix the nutrition.
[music playing]
In simple language, our differentiation
is that we are making it easy
to consume multivitamins in a powdered form.
From a customer standpoint,
once I decide to have supplements and tablets daily,
then be it in tablet form,
this is not a big differentiator for me.
I won't have an issue with having a pill
because I have decided that I want to spend my life having supplements.
Which I can see in different forms.
You mentioned that your month-over-month retention is 9%.
Out of all your customers,
only 9% ordered from you the next month.
This product is meant to be used daily.
For a good business, it should be above 50%.
Successful businesses have around 80%.
For that reason, I want to be out. Thank you.
- Thank you. - Thank you.
You had two ways.
One could have been to make
top-of-the-line products in D2C.
At the start, spend some money to acquire customers.
But after that bring significant repeat.
Your repeat rate hasn't completely matured.
I think it will take some time.
But it is essential if you want to be a D2C business.
The other way is that you have to build GT.
When you choose GT,
the scale of expenses required for distribution
will leave you with almost nothing in terms of net expense.
Because I couldn't find clarity today,
for that reason, I am out.
- Thank you! - Thank you, Ritesh!
- I am out today. - Sure.
But I hope you can focus your energies,
- talent and vast experience. - Yeah.
And make this a successful company.
- Thank you. - Thank you, Kunal.
I have two children who are 6 and 9 years old.
As a mother, it's a task
to feed them 5 almonds every day.
I have failed in that for so many years.
So, my only option is to grate it
and mix it in rice with ghee. They don't make out.
- That helps. - Yeah.
So, I think this is a real problem.
Everyone faces this issue.
But you've made a lot of mistakes.
I think for your marketing,
instead of raising so much money,
give equity
to a celebrity mom and celebrity nutritionist,
take funding and bring them on board.
You should make them do category creation for around 3 years.
We have a lot of capital.
But when we launched a Korean beauty brand,
we partnered with Kareena Kapoor Khan
because India listens to Kareena when it comes to skincare.
We are in touch with many of them.
Right! But before that, you burnt Rs. 11 crores.
I will give you a conditional offer.
And the condition is
that you bring your marketing spend down to 20%.
Because if you keep raising and come down to 5% equity,
then it will not benefit any investor.
And you will have to reduce your fixed cost.
You will have to operate at -10% EBITDA.
If you can do that in the next three months
- by enduring the due diligence term. - Sure.
and Rs. 50 debt for 10% interest for 3 years.
There are a lot of issues in your business.
Frankly, I don't want to be the monk here
who will sell his Ferrari by investing in your business.
So, unfortunately,
I can't invest now.
I would have made you an offer if Vineeta hadn't given you one.
But Vineeta's offer is good.
You negotiate and discuss it with her.
What he meant was that the offer is so good, you shouldn't negotiate.
That's what he meant.
I accidentally made a typo while speaking.
- Can we just take some time? - Think about it.
- Take some time. - Thank you!
Vineeta, you ruined my deal. I hate you.
We got an offer from Vineeta.
And the offer is...
What was your offer?
I would've asked for 10% at least.
10%?
[music playing]
Thank you for the offer, Vineeta.
Can we go with Rs. 50 lakhs for 1% equity?
And balance Rs. 50 lakhs debt at 10%.
So, I gave a fair offer
to respect the last round's investor.
So, this is going below that.
It's just 0.25% of what you are asking.
Yes, just to keep the...
You can show 0.25%
as an advisor if you want.
[laughing]
- Okay, let's do it. - Right!
- Deal accepted! - Deal done!
[camera shutter clicks]
[music playing]
Welcome to ACKO Change Makers,
where we really welcome change.
It has been portrayed beautifully
behind us on this change makers wall.
With a forward-looking vision, we are bringing
a modern advancement in health and fitness.
Our today's change makers are Team Good Monk. Welcome!
But there is a perception that people don't take
supplements or powders
because they are scared about it being artificial
or that this is not something you are supposed to consume.
So, for our viewers and those who are watching,
how can they change their perception to realise that this is necessary?
The reality is that
8 out of 10 Indians lack essential micronutrients.
If we don't address this,
then this gap will increase.
And because of that, there will be low energy, poor immunity,
- and weak gut health. - Right!
So, we encourage everyone
- to consume balanced meals. - Hmm!
But that is not possible in modern times.
- That is why a supplement is a great way... - Right!
Of supporting your diet.
This is an easy way. Mix it with food
and fix your nutrition.
Absolutely! Thanks for bringing this change
- into our day-to-day life. - Yes.
Similarly, ACKO, with its revolutionary offering,
is changing the landscape of insurance.
Now, while taking car insurance, no spam calls.
Avoid the confusion you have with price and policy.
Buy ACKO's car insurance.
It's easy, transparent, hassle-free,
and the right premium.
And to celebrate your time in the tank,
you have a deal. I love it!
There is a memento for you from ACKO and Shark Tank.
This is for you,
Sahiba and Amarjeet.
[theme music playing]
Sharks, the life philosophy these days is YOLO.
Meaning, you only live once.
You just felt like it, picked up my bag, and walked away.
Hold on!
No money in my pocket, no friends by my side.
Just the perks of working from home and the spirit of Bunny.
Old jeans and a guitar.
No roof over your head, and strangers become friends.
A new city with dreams of wanderlust.
That is why there is love for solo travelling.
Unfortunately, this love story hits a bump with a puncture.
Because whenever we visit budget hotels,
we encounter yellow washrooms,
flipped blankets,
and food that's centuries old and stale.
It's their speciality
to make female solo travellers feel uncomfortable
and drive everyone away from their city.
That is why in 2022, we decided
to fulfil everyone's YOLO dreams.
We are from Delhi and we are the founders of ArtBuzz.
ArtBuzz is youth hotels
that give all the facilities to modern travellers,
but at affordable prices.
Dorms! The bunk beds.
Nowadays, in youth hotels, there is an option of shared accommodation
instead of private rooms.
Today's travellers want everything.
But at ArtBuzz, we always pass the vibe check.
all our properties are designed artistically.
Isn't it Instagram-worthy?
10 years from today,
the youth hospitality segment no one knew about
currently has a market share of Rs. 1,500 crores.
and become the leaders of the youth hospitality segment in India.
Our ask is Rs. 1 crore for 3% equity in our company.
Shashank and Anubha, welcome to Shark Tank!
- Thank you! - Thank you, Kunal.
Tell us about your story.
I am a single mother of two children.
We live in Delhi.
I studied Art History.
I've always loved art.
I wanted to become a curator and open a gallery.
But I got married soon.
My in-laws asked me to sit at their office.
They had a huge business.
I worked for 8 years in their business.
By the end of it, I was heading it as their CFO.
I thought I might not be able to work in this company.
So, I looked for what work to do.
I was looking
to start a proper entrepreneurial venture.
That is when I posted on Instagram, 'Looking for a collaborator.'
That is when I received a DM from Shashank.
- We met in 2017. - 2017.
We met Anubha for the first time in Dubai at an event.
That is when we exchanged our Instagram handle and that's it.
After that, we had our conversation in 2021.
Anubha, how many hours do you sleep in a day?
How many hours do I sleep? Why?
Single mom of two, plus a founder.
This is the hardest job in the world.
Yes, it's a hard job.
I don't know, I always like to count my blessings.
Very good family, good parents,
good sisters, good co-founders and everything works.
- Amazing! Super resilient. - Great attitude.
Give us your background, Shashank.
I was born and raised in Delhi.
So, I started working very early.
By the time I entered college, I was involved in many events.
After that, I did a corporate job for 2 years in an events company.
After a point, I felt that this was not my calling.
And I went on a solo trip to Southeast Asia.
My first destination was Thailand.
I experienced a hostel for the first time there.
I was amazed because I made a lot of friends in a couple of days.
I travelled to that country with them.
I was so excited
that I felt like this was it, I wanted to bring this to India.
So, I hired two interns.
I started working on the backend
and launched a brand called House of Amigos.
And then COVID happened.
- And then you sent a message and you met. - I messaged him.
But on the side, I was running a small co-working space
to fulfil my passion, called ArtBuzz.
We only allowed artists and creative professionals.
I started that in 2018.
It was my passion project.
But it was not enough for me.
He said that he runs a hostel and I told him I run a co-working space.
I think this was in 2021.
We started our website during the lockdown
and completed the entire inventory and artistry.
Painting and so on?
Original paintings, watercolours, photographs, flat.
For around 3-4 months, under ArtBuzz
we had the co-working space and website.
But it didn't feel very exciting to us.
I felt that a physical space was missing.
He felt the same way.
Gradually, he started training me
to run a hostel, it is good business.
Finally, in December 2021, I agreed to do it.
In April 2022, we launched our first ArtBuzz.
- Where was this? - Mussoorie.
Do you have a property in Goa?
- We do. - Yes.
I've seen it.
Okay! You launched the first location.
What were the results in the first year?
It was a very small property. It was a trial.
We didn't want to invest.
So, we had a small inventory.
We opened at the right time. Our season was sold out.
After around 4 months, I was convinced that we can do this.
94 rooms, 228 beds.
dorms, co-working spaces and cafes.
We have cafes in all our locations.
How big are these spaces?
Our properties have 14 rooms on average.
Around 18,000 sq. ft.
On average, Rs. 30 lakhs.
That includes advanced rentals and securities.
That's very good.
Please divide it. How much is the advance rental/security and CapEx?
Our recoverables alone are Rs. 18 lakhs.
- That's Rs. 1 lakh per room if I calculate roughly. - Yes.
We just need to do branding,
paint the room yellow and hang up artwork.
Don't tell him more. He's from OYO.
- [laughs] They know. - We're learning from you.
How can we not tell you? You already know.
What's your payback approximately?
- About 18-24 months. - Not bad.
In your pitch, you mentioned
stained bathrooms and bad service.
What are you doing to make sure...
Hygiene is the biggest problem in India.
All eight locations of ArtBuzz are hand-picked
and are very nicely made.
Show us photos and videos.
This is Dehradun.
Looks good.
- This is the Dehradun private room. - This is great.
It's beautiful.
This is co-working, Dehradun.
Those are private cabins.
I used to stay in OYO. I'll switch to ArtBuzz now.
[laughter]
Our pleasure.
It's good. Very cool.
- Not bad. - Very nice.
- This is really good. - This is Kasol.
And every room has one dedicated artwork.
A room is dedicated to an artist.
How many rooms does one dorm have?
- Six on average. - Six is fair.
Could you tell us what your rating is?
If I talk property-wise on Booking.com,
our lowest rating is of the oldest property
We believe in going through the reviews.
We feel they help us get to know the customers.
They help us keep a track.
Of course, we have SOPs
laying out when to broom, when the fans should be cleaned...
There's a checklist for everything.
The housekeeping SOP and a printout with checkboxes
are something everyone does.
I think it is what you are aspiring for
and we are really aspiring for this.
This is very important to us because we will not sell...
We will not get a repeat rate if we don't provide this.
I love your matter of factness with everything.
I really liked one thing you said.
I think customer reviews are the most important.
I personally try
to definitely read them very actively.
Let's talk about the business.
Tell us about your occupancy and ARR.
- Our occupancy is 51% until November... - Not bad.
- Till date. - Not bad.
In urban cities, the occupancy is 70-75%.
Their properties are mostly
in offbeat locations which are seasonal.
The occupancy of hotels there is also typically 40-50% annually.
And Rs. 1,100 ADR.
For Rs. 1,100, do I get a bunk bed or a room?
- Rs. 1,100 is our average. - Okay.
It's in three locations.
What are their respective contributions to the revenue?
Hostels contribute to 75%,
cafes contribute to 13%
and 12% comes from co-working.
Are those complimentary with the stay?
No, separately billed.
Out of co-working's 12%,
how much do 75% of the people who are staying contribute?
- Negligible. - The normal audience contributes 99%.
1% comprises people who're leaving but stay back.
ArtBuzz tried to mix these and build a new business
but there's no mixing as such.
You're right.
Actually, it was more like a unit economics for us.
Suppose we have an empty room.
Either we could build a common room there which would yield no revenue
- or we could put a few desks and bring in some revenue. - Very smart.
- Very smart. - Okay.
But none of that is relevant to the customer.
The customer gets a brand repeatability.
Suppose someone stays at our co-working in Dehradun.
When they travel,
we have a property in Mussoorie and Rishikesh.
Okay, do you have a data point?
We haven't noted that down.
- Then this claim is subjective basically. - No.
- Feedback... - We've gotten this feedback.
Let's get to the numbers.
We had only two properties in FY 20.
Was the first property among those to open
last year profitable?
All our units are profitable.
Rs. 4.5 crores.
As per what you originally said, the average is Rs. 30 lakhs.
This figure makes the average Rs. 50 lakhs.
- I'll give you a break-up. - Okay.
Rs. 30 lakhs multiplied by 6 properties.
- Rs. 1.8 crores. - Okay.
After that, the loss I mentioned,
- that makes it Rs. 1.3 crores... - The total.
- Yes. - Oh, you mean altogether.
- Yes. - Rs. 4.5 crores. Okay.
Yes, altogether.
- So, your CapEx has only been Rs. 2 crores. - No.
We signed a property in Kasol, Himachal,
- and unlucky for us, Himachal was hit by floods. - Oh, no!
That property got stuck
and we got that property this year in June.
Our average cost slightly increases because of that property.
- Have you raised funds? - No.
- You're bootstrapped. - Yes.
Could you tell us the economics of one unit?
The rent is about 34%,
maintenance and utility is 16%,
the unit's salary is 22%
and if I take the consumption of food we sell in our cafes, then 6%.
So, 22% is the unit-level EBITDA.
What's the fixed cost of the business?
Marketing and commission is 12%.
20% is our corporate cost.
- So, the unit-level profitability post-marketing is 10%. - Yes.
If we raise our occupancy to 70%, then that comes down
- because the cost remains the same. - As he said, that isn't possible.
- I didn't say it isn't possible. - The locations you've mentioned,
- it's 50% on average there. - Ours is a very young brand.
We could easily achieve 70-75% occupancy on average.
What's your main moat? It's not work, it's not...
- What is it? .- Community building.
Dorm beds are a very big offering which hotels aren't able to provide.
Does the main revenue come from dorms or rooms?
The major revenues come from rooms.
What's the break up of dorm versus private room?
35% from dorms and 65% from private rooms.
What is the percentage of inventory in both?
We have 94 rooms.
- We have dorms in 26 rooms. - Dorms.
The rest are private rooms.
- In real estate, we have given only 25% to dorms... - Correct.
But they contribute to 35% of your revenue.
This means your dorm is more successful than your private room.
In fact, you shouldn't need private rooms
because those seeking them have the option of hotels.
Let's take Azhar's argument.
- Can you create an ArtBuzz that only has dorms? - No.
Is it because you think you won't get occupancy?
- No, because we want a mix. - No.
We get all types of clients.
- As I said... - That is why...
Correct. Yes, maybe.
A couple is travelling.
They are intending to stay in a hostel.
They are searching for that category now.
Are couples your core consumer?
Why couples? Lakhs of properties cater to them.
I guess we ought to analyse this mix a bit more.
Then who's your core customer?
Friends, solo travellers, workers...
We've been able to track the age group between 18 to 40.
Is it more male or more female?
- More male. - Small town? Large city?
And where are they coming from?
Big cities or small?
- Big as well as small. - Yes.
- You said... - This is not a perfect answer.
Big as well as small cities, male...
We ought to have one core customer.
Actually, our client is a mix.
We think that hostels are only for friends and solo travellers
but families also prefer to stay.
Until you're not able to define your core customer,
you can't do this business.
You said such a nice thing in your pitch.
"Solo women travellers."
That seems to have gotten lost in the rest of your pitch.
And I feel that you're stuck in the same spot
where most founders are,
which is that if you don't stand for something,
you fall for everything.
I really like you, Anubha,
the way you speak and your conviction.
You've invested Rs. 4 crores of your own.
It's incredible.
Focus on one property first
and exactly figure out what you're doing.
I'm out for now but I wish you the best.
- Thank you. - Thank you.
Your concept is great for Gen Zs.
If you are resolute and focus on Gen Zs...
The period is a little long.
They'll come.
When they get to know, they'll surely come.
However, if you allow everyone,
aunties, couples and uncles,
Gen Zs will run away.
They'll say, "We can't stay here."
Your financials are a bit weak right now.
Secondly, this is very capital-intensive.
You'll have to raise big rounds and get investors on board.
Once your business model is clear,
you can send the best out of business.
Unfortunately, I'm out for now.
Thank you, Aman.
Hmm, the best.
People generally see the hotel industry from the outside
and think it's exciting and glamorous
but once you're in, you realise how much hard work it is.
You did well in some aspects.
Stick to new properties rather than old.
The maintenance cost increases.
The design adds value.
You've set the payback period to 16-18 months.
Actually, I do want to support you
but you know
- I'm in a related field in a way. - Really!
We at OYO run an initiative
called OYO Accelerator Program.
Independent hotel chains associate with us.
We provide capital, infrastructure,
strategic guidance and distribution to them to expand their businesses.
I'd like to meet you about it outside
if you're interested.
I wish to give you two pieces of advice specifically.
One wrong property in this business can lead to the business going down.
Tread very carefully.
Ma'am, that's your responsibility.
Second, I agree with Aman.
At the start, you said,
"Each ArtBuzz passes the vibe check."
The vibe is not just about infrastructure,
it is also about the guests staying in our property.
We're in a similar space.
For that reason, I'm out,
but we as a company, would like to partner with you.
The clarity of thoughts and numbers at some places,
who you're approaching
and how exactly you're building the business
didn't fully come to me.
Given the business at the moment,
I am still lacking conviction.
I'm unable to take a bet as an investor.
And I'm out.
Anubha, I really like...
You have poise,
which is safe and which is clean.
Is this true?
That is OYO.
Is it price-sensitive or a vibe?
A vibe, but at good pricing.
What is more important?
Vibe.
- Yes, Kunal. - The people coming to you
- are price-sensitive. - Yes, they are.
Of course, it's India.
One... Let me finish.
So, they are price-sensitive customers.
That's not a problem.
I have an issue with the sector.
This sector sees 3-4 good years in a decade
and then some calamity occurs
and the cycle of stress starts, debt repayments...
You always feel
like you're one mistake away from mortality.
For that reason, I'm out but I wish you all the best.
- Thank you, guys. - Thank you.
- All the best, do well. - Thank you.
- Many best wishes. - I'll come and stay there for sure.
Thank you.
[solemn music playing]
I believe they've kept lower dorms than they can.
I feel they can have 50-60% dorms and they'll be occupied.
It's a chicken and egg game.
You have to wait, just as you asked, as the ramping up takes time.
You need loss absorption capacity for the first three months.
Yes. And when that doesn't happen, they'll start shutting it down.
If they wait for 3-4 months,
I think they'll get customers with a higher ADR
and those customers breed other customers.
If you see, Gen Z is investing in travel and experiences.
- Travel, see new places and so on. - Yes.
- Good, right? - You're giving me OYO shares! Okay, thanks.
[laughter]
'We are mainly focused on Gen Z and millennials.'
We get other types of customers too.
They misinterpreted that as
our market segment not being defined.
90% of the pitch went very well.
We thought that we are getting the offer
because it was always positive feedback.
And never say never.
Not today, but maybe in future,
the Sharks might approach us for funding.
Hello, Team ArtBuzz.
- Welcome to the PokerBaazi zone where you hold the cards. - Hi.
There are a lot of similarities between business and poker.
- For Straight. - Okay.
- Customer service. - Customer service, okay.
- The third is marketing. - Marketing.
- Human resources. - Human resources.
HR, interesting.
- And operations. - Operations.
This is so interesting
because operations and logistics
must be a core part of your business
because you're handling so many properties.
Why did you rank it last in place of High card?
It's because all these things...
Sales is the first thing.
If we don't have any sales, what good is operations?
Then customer service is very important to us as a brand
- as we mentioned in our pitch. - Hmm.
And then marketing generates awareness for us.
Human resources is as important
- because we're a very heavily-manpowered company. - Okay.
and the total prize pool is worth Rs. 100 crores.
- Very nice. - Wow.
A lot up for grabs.
You too could download the PokerBaazi app,
use your strategies to place a winning hand.
Download the app now.
'Shark Tank India co-presented by ACKO Insurance, '
'PokerBaazi and Swiggy Instamart.'
'Co-powered by Adani and Jaquar Bath & Light.'
'Partners Rayzon Solar, ICICI Direct and Lenskart.'
[theme music playing]
[theme music concludes]
Sharks, the heart of Indian cooking lies in its spices.
Be it the aroma of simple homemade 'aloo mutter'
or that of 'shahi paneer' in a restaurant.
We prepare food in a kitchen,
and its aroma can make a whole neighbourhood fragrant.
From tea to chickpeas, India has a special spice mix for everything.
In fact, 75 out of the world's 109 spices
are grown in our country.
We're from Mumbai and we present to you Tulua.
We make unadulterated spices and ready-to-cook pastes.
We don't just deliver these spices to your homes,
with a 20x growth.
We envision making Tulua a brand
that is not just limited to our kitchens
but goes on to become the number one choice
of over 75 lakh restaurant chefs across India.
And for that, our ask is
Rs. 50 lakhs for 2% equity.
Come on, Sharks.
- Thank you. - Thank you.
Before I ask you something else, let's talk about "Tulua".
What does Tulua mean?
- Tulua means "to rise" in Sanskrit. - Oh!
So, I wanted a name that is very easy for people to pronounce
be it in India or abroad.
And a name that does not remind you of anything else
- Yes. - Yes.
Thank you. Thank you so much.
- Nice shoes by the way. - Thank you.
Thank you.
- How are you, Richy? - Good.
This is our Masala Dabba that we sell on our website.
This has eight spices all from different regions.
- Depicted it sweetly. - We thought that
spices grow all over India.
So, as a customer, they should also know
where each of the spices grows.
No, the packing is lovely.
Many times, sellers don't pack this
- and if they do, they seal everything. - Yes.
You left a specific section visible.
- That's a smart choice. - Thank you.
- We'll go home and cook with your spices. - Sure.
Why? Don't you use Zoff Spices?
I'll use Zoff for lunch and at night...
- And Tulua for dinner. - [all laugh]
Tell us about yourselves.
I was born and brought up in Mumbai.
I've been working in the sales field for 35 years.
Earlier, I'd sell pressure cookers, stoves and others.
Then I moved to corporate selling in a packaging company.
For 15 years,
In which year?
The end of 2021.
I didn't have to
as I pre-planned it
- and poached him at the right time. - Poached.
Was it your idea?
Yes, it was my idea.
How does it feel to be your father's boss?
Does he listen to you?
Or in a tough situation, he eventually says,
"I'm your father!"
Actually, that never happens.
I feel I'm really fortunate
that my parents are extremely supportive.
I present my views before Richy.
"Look, this is what we could do."
- The final decision is hers. - Excellent.
- Tell us your story. - Sure.
I launched Tulua in 2020.
I was one of those students who interned throughout college.
Right after tenth grade, I started working.
After college was over, I founded my first start-up.
It was a digital marketing agency.
- I started that in 2015. - Okay.
Through the agency, I worked with many upcoming Indian start-ups
mainly in the F&B space.
Between 2015 to 2020,
I was researching deeply ranging consumer behaviour.
That's when I realised that many women like me out there
didn't know how to cook.
That's when the idea of Tulua struck me.
We launched with ready-to-cook pastes.
we noticed a sharp decline in our ready-to-cook orders.
Until then, we were bootstrapped
and I had launched Tulua with my personal savings.
So, this product was a hit then
because everyone was home during the pandemic
and was fond of cooking.
So, you used it to your advantage.
More importantly, there were no cooks.
Yes. You made a product then which did very well.
Now, it is discontinued and you have a new business. - Yes.
We still have pastes but their quantity is very little.
That's not our main focus.
Our main focus now is spices in which we have two verticals.
B2B that sells in HoReCa and D2C.
How's the work divided between you two?
I am basically more focused on sales
plus I oversee a bit of operations.
And I mainly oversee brand strategy, brand design,
D2C side of the business,
product launches and growth.
- This says 'Lakadong Turmeric'. - Yes.
- Isn't Lakadong an area? - Yes.
- The Northeast. - Yes.
- Is it sourced from there? - Yes, it is.
With what differentiator did you launch your spices?
In fact, your Lakadong Turmeric also is easily available in the market.
All the spices grow all over India.
So, if we want the best quality...
Let's say turmeric.
So, where does the best turmeric grow
and what makes it the best?
It's the amount of curcumin in it.
- It says here, "9.3% Curcumin." - Correct.
Why don't other brands sell Lakadong turmeric?
It's difficult to source as well as costly.
Most of the brands who are selling the Lakadong turmeric
So, your overlap of SKUs,
let's take say Everest, is what percent?
We have 8 SKUs of spices
out of which Everest has 4.
Is it of the same origin?
Everest and other brands
don't claim which region it was sourced from.
Typically, the same pack
- of Everest or other brands is in what price range? - Sure.
Let's take the example of Kashmiri Chilli Powder.
Richy is probably one of the most impressive founders I met recently.
- We came very close to investing. - Why didn't you?
- We didn't go ahead. - Why not?
For a variety of reasons.
When we had the discussion,
you weren't absolutely sure
about doing B2B or B2C as well.
Our main focus is HoReCa, B2B.
When we talk of HoReCa,
chefs mainly want whole spices
the reason being that they make their own powders.
In that, most of the spices that are sold
are without any branding.
There is no single brand
that supplies whole spices and single-powdered spices
of good quality consistently.
We saw a big gap.
Are you claiming you want to be one of the first brands in B2B?
I won't say there isn't any brand
because there is a brand that sells blended spices.
By blended, I mean chaat masala, garam masala...
But whole spices, which is the biggest category,
in that there are no branded players.
So, you've primarily decided
- to focus on HoReCa - HoReCa.
You'll sell a little online for branding.
- Yes. - What's the distribution
between HoReCa and retail?
- HoReCa contributes to 92%... - Whoa!
I'm guessing in the powder,
you're not able to clearly state your differentiation,
especially something like Kashmiri Chilli.
Everyone's Kashmiri Chilli in a box is the same.
Why don't you make similar whole spices just for chefs?
We're already doing that.
That focus is mainly on HoReCa.
I believe that if we're not available on D2C
or if we don't build a brand,
it will also impact our overall growth.
Our entire focus is already on HoReCa.
We're doing this parallelly
because in future, we'll do D2C and retail and grow there as well.
The market size is very big.
What were your revenues for the last 3 years?
In 20-21, our revenue was Rs. 8 lakhs.
In 21-22, our revenue was Rs. 42 lakhs.
This year, we exported to the US.
We only had pastes then.
The next year, our revenue was Rs. 14 lakhs.
This time also, it was just our paste category.
Last financial year, our revenue was Rs. 2.9 crores.
We launched the spices this financial year.
In the current financial year,
we've clocked a revenue of Rs. 2.9 crores till date.
Our monthly MRR is Rs. 37.5 lakhs.
What was the bottom line last year?
Last year, we had a -13% EBITDA.
Who funded the negative EBITDA?
We've done two rounds so far.
The first was an angel round
which we did at the start of 2023.
We raised Rs. 2 crores at a valuation of Rs. 10 crores.
This year, we've raised Rs. 2.7 crores
at a post-money valuation of Rs. 19.7 crores.
How did the change from -13% to 3% EBITDA occur?
Last year, we launched spices
and our strategy was to break the price
and enter as many kitchens as possible.
So, we deliberately compromised on the gross margin.
This year, we increased our gross margin.
In which region are you currently distributing?
In the last year, we worked really hard on Mumbai.
Now, we're in the process
of starting in Pune in Maharashtra and in Surat in Gujarat.
How many restaurant partners are you selling to?
Over a hundred.
How many of those restaurants
did you know in your 15 years of experience
and how many of them have you sold to for the first time?
Sir, out of these 100, 25-30% are from my previous jobs.
The rest are all new.
'Founder-market fit is when'
'a founder's personal background, skills and experience'
'perfect align with the market'
'in which they wish to start the business.'
'It is not necessary'
'that they must have a background and experience to be successful,'
'although it may help.'
I think you have the mind, passion and conviction of a marketer
and you're a really strong founder.
And because you're together,
the business is getting pulled in opposite directions.
On such a small scale,
you're exporting and selling in India,
doing whole spices and powdered ones too,
D2C as well as HoReCa.
And you're selling the paste you said you had discontinued.
I feel that focus has a superpower
which is very important in the early stages.
The team is not getting that power today
because you can't decide
what to say no to.
And I feel that you won't be able to make this decision
even if you got Rs. 50 lakhs
and you'll continue to do too many things.
For that reason, I'm out.
Thank you, Vineeta.
If you want leadership in HoReCa,
in your five-year vision, you should say
"but lead in multiple products in the long term."
If not, then maybe D2C is an opportunity,
and you're well-versed with it too!
I mean, the quality of design,
thinking and others you've done is quite good.
I do feel that you lack clarity today.
For that reason, unfortunately, I'm out.
- Thank you. - I wish you the best.
- Thank you so much. - Thank you so much, Ritesh.
I feel that your strategy,
that one's a consumer-facing brand
but is primarily a B2B business,
is actually a fine strategy.
Many brands in India were built this way.
For example, Ferns N Petals.
Because such a brand gets brand recognition,
it's your preference because it's more reliable.
primarily in Mumbai.
Hitesh, you have experience in this region.
So, the question is,
when you expand to another five states,
are you able to replicate this?
Because there's no clarity on that,
for that reason, today, I'm out.
- Thank you, guys. Good to see you again. - Thank you.
So, I see you as yet another vendor.
You might build a decent business with your experience
but I don't see this becoming a brand or a significant leader.
For that reason, I'm out.
Thank you, Azhar.
[solemn music playing]
When you arrived, I liked your business.
It reminded me of Zoff.
I was there.
It started here. Spices.
The team is good.
You said you were focusing on HoReCa and that's also fine.
Because what you're doing, Hitesh...
You've got good sales in HoReCa.
If I were in your place, I'd have told my daughter,
"Do one thing."
"Grow D2C. Focus on offline."
"Make it an omnichannel brand."
We're saying that we are also doing D2C.
I asked you a simple question.
Where will you focus?
Your answer was HoReCa.
I'd like to give you a suggestion.
Please... This has potential.
Sometimes, we underestimate ourselves.
Here, I think you guys are underestimating yourselves.
Aman, we said we're doing D2C also
and we'll also do retail in future.
- But today, it's more HoReCa-heavy. - Yes, got it.
The problem with the pitch was
that all of us felt that you were so focused towards HoReCa
that you didn't want to do this.
So, unfortunately, I'll be out.
- Thank you so much. Lovely to meet you all. - All the best.
- Best of luck. - We'll be in touch.
I was very disappointed in the CEO!
But she is very capable.
Yeah!
Underestimating their own potential.
- Her dad's shadow is... - Yes.
They could have done better.
Yes, she needs to be independent.
This is absolutely incorrect.
Because Richy is the CEO
and founder, and she makes
all the company decisions.
So it was Richy's idea to go HoReCa.
And I am just supporting her.
The brand we are building is an omni-channel brand.
At some point, they felt we were not doing B2C at all,
whereas we are,
but more consciously
without spending too much, growing it more organically.
Hello, Team Tulua.
- Hi. - Hi.
I wanted to see if you can tell me,
which shark is which spice?
- Oh, wow, okay. - Yeah!
- Fun game. - Yeah.
Okay, tell me, Vineeta?
- Chilli powder. - Oh!
- Kunal? - Bay leaf.
Bay leaf, why?
Aromatic, very calm and soothing.
Nice. Ritesh?
Lakadong turmeric.
Oh nice. Azhar?
Coriander.
Coriander. And Aman?
Cumin.
Aman is cumin. But why?
The cumin tempering.
- He adds a bit of himself to everything. - Yes.
Amazing! Where did you get these answers from?
You were answering like a rapid-fire round.
I love it, but unfortunately,
I have a terrible cold, so my voice is a little nasal.
I feel like I might spread it to people around me.
So I really need to take care of my immunity on set today.
- So you have turmeric? - Yes.
Pure turmeric?
Yes. It's the best
for nasal issues.
Great! So I immediately ordered lactose-free milk from
Swiggy Instamart because I can't have dairy.
And look, it arrived in 10 minutes.
I am going to use this milk and your turmeric.
And it will sort you out.
It will? Great! Thank you so much.
- I know it boosts immunity, so I am going to have it. - Yes.
And guys, if you need anything, Swiggy Instamart has it all,
and it arrives in ten minutes. Order now.
Fragrance plays a significant role in life.
A scent leaves a lasting impression on you.
'We have created unique and modern fragrance'
'and designed premium packaging.'
He came here and left a mark on our lives too,
with his performance and everything he did after leaving.
'A valuation of 200 crore is no small feat.'
'What is the price-to-sales ratio?'
'Last month, we did six crores.'
- '- Oh lovely! - Very nice!'
'How much did you burn?'
'Burning is around five per cent.'
'Did you raise funds?'
'No, we take debt.'
'Oh, I think so.'
'My offer is one crore'
- '- for one per cent of the company. - Wow!'
'And a royalty of'
'one per cent of your net revenue'
'until I recover my one crore.'
- '- Deal done. - Oh wow!'
'Cool, congratulations.'
Hello, welcome to Adani Presents Beyond the Tank.
Adani believes in every Indian with the spirit
to make it big because we make it happen.
We celebrate those founders and pitchers
who came to Shark Tank, seized the opportunity,
and created an impact.
Today, we have with us the founder of the brand ADILQADRI.
- Mr Adil Qadri. - Hi.
- How are you? - All good.
How much confidence does it take
to name your brand after yourself?
It takes a lot of confidence, a lot of hard work.
And most importantly, the courage to face criticism.
- Does Shark Tank help? - Yes, it does.
- What benefits did you experience? - Your market awareness increases.
People start recognising you.
You get a bit of a celebrity feel.
For me, a few extra things happened, sales grew,
opportunities increased,
and investors and customers started coming in.
You do a great job at branding,
but do you ever wonder, 'What is Adil Qadri really about?"'
[laughs]
- I have to do that. - Right?
Indirectly, I want to send the message
that Adil Qadri is not just me, it's the team behind it.
Adil Qadri is an organisation, a brand,
run by a hundred to 200 people.
You mentioned watching the episode with your entire family.
That must have been a proud moment for them.
It was both things for my family.
Watching the episode and seeing how much debt was being discussed.
That got them a little worried.
Coming from a regular family, they have a concern about loans.
My mom is very emotional.
But then we cut a cake, we made her sit down.
And explained that it doesn't work like that.
The annual business is 90 crores,
so five to six crore in debt is nothing.
Now, marketing is only going to get stronger.
So don't stress about it.
And the real proud moment started the next day
when the videos went viral.
My relatives started calling.
You know how typical moms are.
After that, she started feeling proud.
Debt was already a talking point,
they were saying it was a trap.
And then you got a royalty-based deal.
What were you feeling at that moment?
Being on Shark Tank and getting aired
- is massive marketing in itself. - That's true.
I am a businessman.
I thought logically, one crore is nothing compared
to what we would spend on advertising.
So I decided to take the deal and move forward.
Once the episode aired,
the marketing and branding
would be worth it. No tension at all.
And Anupam Sir had said...
'You are the gangster of this industry.'
'A gangster goes straight to jail.'
'You have to become a king.'
Have you become the king, or is there still a journey left?
I'm on the way, I will become one very soon.
Great! Where do you see your brand going from here?
We will expand further into the premium range,
and enter the luxury segment.
We are aiming for big international markets. We are already in Dubai.
- Absolutely. - We plan to open
stores in the UK, US, and Canada.
When we saw you in the Tank,
you were mostly online.
Yes, the majority was online.
When I came to the Tank, we had seven stores.
- Seven? - Yes, seven stores.
Today, while I'm shooting this, we have 31 stores.
Our target is 111 stores.
We are opening two stores every month right now.
Gujarat and Maharashtra have the highest numbers.
After getting a deal, you mentioned in an interview
that you took the deal
because you were experimenting and learning, now you want expertise.
Did you get that expertise from the Shark?
Yes, I did, a lot of things from Vineeta Ma'am's team.
When I needed investment, she said, 'I'll mail, and you'll get a reply.'
- She sent the mail, I got a response immediately. - Okay.
Then she guided me for an hour.
So all this helps.
These things open up pathways and new opportunities.
Obviously, doors open up.
Tell us, what's new in terms of products?
Recently, Adil Qadri launched
four new attars under the Royal Series.
- Royal Series? - Yes, this is the Royal Series.
Now that we have stores, people demand premium and luxury products.
So, we launched this.
Wow, the container looks stunning.
People like to display
these bottles in their showcases or washrooms.
We designed this with that perspective in mind.
How much are you spending on performance marketing this year?
We are spending 3.5 crore rupees per month.
- Every month? - Yes.
This generates sales of around 10-11 crores,
which means a ratio of about 30 per cent.
Are you considering raising more funds to scale up?
We need funds, and we will raise them, but through an IPO.
- Oh! - The public wants profit, and we will ensure they get it.
Your educational background wasn't very strong,
yet you learned everything
on your own through experiments.
Then, you went on to employ people,
especially those from small towns.
You not only developed their skills
but also boosted their confidence and morale.
We truly appreciate what you have done.
For this, we now take you to the Adani Hall of Achievements.
How does it feel to be back on Shark Tank?
It feels amazing. Brought back old memories.
I had come one year ago.
But this time, I'm feeling a little better
- Here you go. - Thank you so much.
I'm good. I came to shoot the podcast.
That's great. Explosive sales this year, right? 130 crores.
Did you imagine the jump would be so big after Shark Tank?
No. But it was great.
What is your plan now? IPO?
- Yes, we are hiring a merchant banker. - Okay.
- He'll tell us first... - Why don't you wait for a year?
We are doing it after the audit in March.
- Amazing. - But we're first checking the eligibility. - I see.
If we are not eligible, then we'll do it after one year.
- But it's profitable. - Hmm.
- The PAT is positive, so there is no need for funding. - Hmm.
So you will cross 100 crores.
- 100 crores. - And with PAT positive.
- PAT is positive. - That's so inspiring.
Great, I hope this will be the first Shark Tank IPO.
- Yes. - It'll be great fun.
- Yes. - I have full faith, I've already told everyone
that we're going to have the first IPO of Shark Tank.
- Thank you. - Bye.
Thank you.
Please welcome the co-founder and CMO of boAt Lifestyle, Mr Aman.
- It was good, wasn't it? - Yes, it was good.
Do you really eat so many momos? Or do they just tease you?
- I eat them. I like them a lot. - You eat them.
Today's question says, 'Greetings, Aman.'
'I'm from Kanpur and my name is Arvind Tripathi.'
We have had celebrities for the last seven years.
It's not like we've roped them in just now.
The main purpose of bringing in a celebrity
is to create a long-term vibe between the brand and the celebrity.
ROI is not everything.
We are an ROI-driven brand and we do ROI-driven marketing.
There is ROI on long-term not short-term.
It improves the awareness. Yes, it increases consideration and purchase.
But to track it at that time
- when the celebrity... Suppose our celebrity is Ranveer. - Yes.
His vibe and our brand vibe match very well.
We'll meet on the next 'Ask The Shark,' with a new question and a new Shark.