[music playing]
[theme music playing]
[music fades]
Sharks, a few years ago,
had we told our parents
that we wanted to pursue sports as a career,
then they might have said,
"Sports is fine as a form of recreation"
"but it won't make you any money."
True.
Perhaps, they weren't wrong
because a few years ago in India,
there were barely any opportunities in the field of sport.
The times have changed.
This is a new era.
This is the era of Virat Kohli,
Mary Kom and Neeraj Chopra who are sports icons.
They are not only India's pride,
but also the role models of lakhs of youth.
The Indian government
is promoting sports through programmes like Khelo India.
Perhaps, this is the reason
we won over a hundred medals in the recent Asian Games.
Sharks, this is the beginning
of a golden age in sports in India.
And to leverage this opportunity,
we've started Push Sports.
[light-hearted music playing]
Push Sports ties up with schools
help us design gamified assessment tools
and structured curriculums.
Sharks, we are not a sports academy.
Last year, over 20 Push Sports students
- Thank you. - Tell me something.
I was the highest wicket-taker in the North Zone.
Were you a pace bowler?
- Off-spinner. - Okay.
I've taken Yuvraj's wicket.
- Nice. - Whoa!
- Yes. - How many sixes did he hit?
I guess three or four.
I was the highest wicket-taker in the North Zone.
Despite that, there was a lack of opportunities
as well as guidance.
So, I had to say bye to cricket.
I worked as cabin crew to support my family.
Ten years passed by.
It felt like something was missing.
Upon introspection, I realised
- that life was incomplete without cricket. - Nice.
So, I got back to it.
I started as a venue manager for a ground.
- At what salary? - Rs. 25,000.
- You came from 1 lakh to 25,000. - Yes.
- For passion. - Yes.
- Wow! - Good. That's good.
As a venue manager,
I checked out some cricket academies too.
I realised that I had not received mentoring or guidance,
and things were still the same.
I thought I should quit this and start something of my own.
I started with a small set-up
where I was coaching in my own style.
This was in 2016.
I met Nitin in 2017.
I was fortunately born into a cricket-loving family.
Back then, the opportunities in cricket,
as Puru mentioned, were very limited.
So, with a heavy heart, I focused on academics.
I went to Delhi School of Economics.
Within a year, I became the captain of the bank's cricket team.
We used to play many tournaments.
- I met him on the field one day. - Oh, wow.
I saw that he was about to start an academy.
I was making good money at the time.
I thought this would make for a great passion project.
This started as a passion project,
but after two years, I realised
this was a huge market with a high demand.
And come 2020,
I resigned from my post as Senior Vice President
and joined Push Sports full-time.
So, it started in 2020 then.
Push Sports LLP started in February 2018.
- You joined as an investor first and then as a co-founder. - Yes.
We are present at 17 locations.
- Then that belongs to you. - Yes.
In some of the cases where the schools say
they can't contribute to this,
we tell them we will put in some capital depending on the location
who can not just build but monetise it too,
we become a natural choice for them.
we run a sports curriculum with sports teachers
- during school hours from 7 am to 2 pm. - Right.
A student gets only two PE periods.
For someone interested in playing professional sports,
this is not enough.
- They give you a certain portion of the fees. - Yes.
- That doubles up as customer acquisition too. - Yes.
So, the breakeven of our After-School Academy,
which usually takes six months for other locations,
No, even kids from the hyperlocal community can enrol.
After 7 pm,
Solid business model.
- Yes. - Thank you, sir. Thank you.
The need for it existed
and you also made a business out of it.
You've made a company of Rs. 80 crores today.
Not bad.
You've set an example.
If one follows their passion, one can achieve everything.
Thank you, Aman.
Let's take the example of Sushant University.
They make Rs. 2 lakhs a month through us on average.
That's it!
- Could you tell us the economics? - Yes.
- How much did you invest in the EPC? - Sure.
How much do the school and you make?
- We've spent about Rs. 25 lakhs... - Where is Sushant School?
- Sushant University. - Sushant University.
- Ansal University. - Golf Course Road, Gurugram.
Okay. You invested Rs. 25 lakhs. How much do you make?
Our revenue from here is Rs. 7 lakhs.
Most of which comes from After-School?
- Yes. This is an After-School Academy. - Okay.
What is the operating profit?
We make a profit of Rs. 1.5 to 2 lakhs every month.
- 18 months... - And a nine-year lease.
So, your monthly revenue is about a crore rupees.
- In the seven months of 2023... - Approximately.
Our revenue was Rs. 5 crores.
- In Delhi and NCR. - Projected sales for the year?
In June, we were in England
playing against some of the best private schools.
We took two teams
and played against schools like Harrow and Eton.
- We're going to Dubai in December. - Why complicate it?
You have a simple model. Just scale it further.
No, we... - Your infrastructure isn't being used.
- That's your core asset. - It is a distraction right now.
Yes.
- Have you started making sports gear too? - Yes.
- At times... - This is a bit over the top.
I agree.
We also get children
who cannot afford the kits in the market that cost Rs. 8,000.
Their parents don't allow them to join the academy for this reason.
So, with the help of our tie-ups and experience,
and along with it,
instead of sitting at home, that kid can join our academy and play.
That's five business models.
You snatch every opportunity you come across.
"Let's do this also."
"Let me also start selling meals to kids from tomorrow onwards."
If you do business in a focused way
- and solve a single problem, it is better. - Yes.
Something is not adding up, right?
From 17 locations,
- you said your revenue last month was Rs. 50 lakhs. - Yes.
It's only Rs. 3 to 4 lakhs revenue per location.
Now, in Rs. 4 lakhs revenue,
how much operating profit can you even earn?
Just Rs. 1 to 1.5 lakhs.
No. It's impossible.
[tense music playing]
How many of your locations are profitable?
We have 10 old locations
out of which 7 to 8 locations are profitable.
Could you tell us your equity split?
Yes. PokerBaazi and a Singapore-based fund
At what valuation was your last round?
Rs. 1.2 crores went into our CapEx.
We have a balance of Rs. 25 lakhs.
because you have money only for one location in the bank.
Thankfully, the promoters keep giving debt to the company.
Who are the promoters?
Yes, we're talking about ourselves.
Mister!
Have you ever heard of the saying 'how the cookie crumbles'?
[tense music playing]
You had a good start and look at you now.
When you don't have money,
why are you spending on infrastructure?
It makes no sense.
You're caught in a debt trap.
Vineeta, the total promoter loan is about Rs. 65 lakhs.
You're on the verge
where anything can happen.
Your business is at risk
because you only have Rs. 25 lakhs left.
And at such a time,
you're asking for eight times the valuation of your last round.
Just imagine. You have a mission,
but you're jeopardising your company out of greed.
Oh! That's a big statement.
As for the runway,
You're mistaken about your runway.
- There was Fitso too. - Because 60... Hang on.
- You invested Rs. 60 lakhs of your own to salvage the business. - Yes.
- The company owes you that. - Yes.
So, that gets subtracted from the runway.
I don't think so. I don't need that money back.
I'm not charging any interest on that money.
- We are extremely committed... - If someone...
Say we invest Rs. 80 lakhs.
We will feel that the promoters will take Rs. 60 lakhs out of it.
That's subservient.
In our existing contract too,
the promoter debt
is subservient to investments that are coming in.
I am out right now
for these reasons.
- Your revenue per unit... - Yes, sir.
You have an earning of only Rs. 3 to 4 lakhs.
You don't have profits on it.
How much will the schools benefit?
That is still a question mark to me.
If I look at the data points in the past,
how viable is this business in the current state
and what changes need to be brought
are things that are unclear to me.
Given your focus on multiple areas,
I don't see how soon we could figure this out.
Also, the valuation you're expecting is extremely high.
So, overall, for these reasons, I am out.
I was really interested.
Your pitch was great.
- I had zero interest when you walked in. - Okay.
My interest had reached its peak before it plummeted.
At some point, I lost you guys.
So, unfortunately, I'm out.
So sorry to hear that, Aman.
Tell us who your competitors are.
Who are the big players who are doing something similar?
Our industry is very unorganised.
We have regional champions
who are popular for a particular sport
or who're very popular in a city.
- I'll tell you your competitors. - Okay.
- I'll tell you if you can't. - Sure.
Your competition is branded cricket academies
that ex-cricket players are opening everywhere.
The aspiration would be to play with them
for off-school hours.
- Your competition is from Manchester United! - Yes.
- They're opening their academies here. - Yes.
- The NBA is also your competition. - Yes.
- They're opening academies here too. - Okay.
- So, those who can afford it will go there. - Yes.
- Sure. - Right?
- You'll have to push it hard and sell it to every student. - Yes.
Only then your 60% will increase to 80%
and you will make profits.
- Stick to one thing. - Yes.
It is extremely unfocused, and for that reason, I'm out.
- Look. Your model is surely messed up. - Okay.
- You don't realise how close to the brink you are. - Hmm.
The rest of your responses as entrepreneurs
gave the feeling that you were passionate, resilient
and humble entrepreneurs who wished to do something
and had a powerful mission.
Just to see how genuine
your commitment and resilience to save your company is... - Yes?
I will make you an offer.
- Wow. - Thank you.
Rs. 80 lakhs for 4% of your business
and 2% of net revenue
till I recover 1.5x of my investment.
I have watched
- how they have built a business with unwavering focus. - Yes.
Very similar to the business we have built at Lenskart... - Okay.
Where we take a box,
we perfect the box
- and then we replicate the box. - Yes.
We used to open 40 to 100 stores in the past.
Now, we open 500 to 800 a year
- and their payback comes within 8 to 9 months. - Right.
- I can help you do that. - Sure.
For that,
you have to leave this valuation bubble that you're in.
So, Rs. 80 lakhs
for 4% equity, the same as Vineeta's offer.
And 2% of net revenue
till I get
- Not 1.5x... 2 times... - Exact...
Would you like to come together?
[tense music playing]
I'm okay, but I want 2x of my money back
- because this will require a lot... - If I get 2x, I don't mind it.
- Okay. So, you have just one offer now. - Yes.
- It is from Vineeta and Peyush combined. - Yes.
Rs. 80 lakhs for 4% equity
and 2% royalty on your net revenue
- until they don't get 2x... - Yes.
They're investing Rs. 80 lakhs.
[pensive music playing]
- Congratulations! Love the mission. - Thank you.
Superb stuff.
- Thank you. - Superb stuff!
Thank you...
[music fades]
[music playing]
We are all happily married.
But there's one deadly question
that your wife asks.
How am I looking?
If you say something nice, she'll say that you didn't pay attention.
If you say something bad,
she will say that you always find faults in her.
But, Sharks, they are right too.
Because they take hours and put so much effort to get ready.
They don't get any help to do the right makeup.
Or to understand which product is perfect for their skin.
Don't worry, Sharks.
We have brought BeautyGPT.
It solves all these problems.
BeautyGPT is a software created through artificial intelligence.
It answers all questions related to makeup
personal beauty advisor.
Now husbands won't answer this question, BeautyGPT will.
We're asking for
No.
Rs 133 crore valuation, pre-launch product.
This is the status, right?
Our existing Do-It-Yourself products
Tell us from the start. What do you do? We don't know.
Because you're just showing us your version 1.
But we don't even know what is it a version of?
We created 5 modules earlier by stacking beauty AI.
Orbo started in October 2019.
What was the product you launched earlier?
It has no name. It was categorical.
Like makeup try-on, skin analysis.
- Show us this first. - Where is that product?
- Show us this. - Does that product sell?
Yes.
Okay, give us a demo.
Vineeta, please come.
Let's watch the current one and then move to the new one.
Else it's confusing.
Okay.
[music playing]
So, this is the red lipstick. The product name is here.
The novelty is that it's a real-time application.
Yes, in the bad version of these
the eyeliner is applied around the face.
It doesn't fit in the right place.
Did you apply liner yet?
I'll apply it now.
I've put a blue winged eyeliner.
It's close to my eyes, which is what I like.
Because sometimes, it's at wrong places.
When you're moving,
- it's not moving. - Yes, it's moving with me.
It's moving with you. It's a good thing.
I will apply black lipstick.
Now, I get it. Okay.
- Now I get it. - Move now.
Look, it's moving with her.
Good, boss!
There are five such modules.
Let's try BeautyGPT.
Is this new or old?
- This is the new one. - This is new, the future.
- Okay. - Yes.
The search is keyword-based.
This contextual search is not yet built.
That is what BeautyGPT is replacing right now.
I just want to one second do this.
Yes, a vintage Hollywood red carpet.
- So will this be made on my face? - You will see it on the model first
and you can try it on your face too.
Try on yourself so I can get it on my face.
So you will detect her face
- and create a look for her. - Yes.
And then products with it.
So, the result is here.
- You can see three different looks. - [laughing]
You must've seen that the first look
also gave you a step by step automated tutorial.
Create a wedding look for Vineeta.
Look at your wedding look.
[laughing]
This is 'wedding will never happen' kind of look.
- Look at it! - [laughing]
Your older products were comparatively better than this.
No, I disagree. The use case is
as far as I understood, and I think it's very interesting.
Just like you go to Nykaa,
and search for a wedding look
for your Sangeet party.
Then, it curates a look from all the options.
I just want to make a disclosure
that I've met Manoj.
Because on our online e-commerce shopping,
lipstick try-on is popular.
So, for our stores, as a magic mirror
their product
was being evaluated by us.
You evaluated his technology.
- Yes. - What else did you evaluate?
- Have you failed everyone? - No, I've evaluated many
and I thought that their technology was very good.
Okay, better than the others.
Better than many of the others.
But you didn't think it makes sense--
No, we were going to pilot at a store.
We're just thinking about it.
I can see grey strands, it means you're an experienced player.
So, what's your story?
We are counted as one of the first AI-research companies in India.
Out of which, I lived in the US for 12 years.
What did you do there?
I used to work for Adidas. Global Business Transformation.
After getting done with that, in 2012,
Reliance Retail brought me back to India.
- As? - E-commerce head.
Oh, wow.
Then I launched another startup called Branfee.
It was a startup related to computer vision.
We'll come to Orbo. What about the two of you?
And since then, we've been together.
So, Danish and Abhit joined Branfee as first employees.
And that startup didn't work.
We closed it down.
What's the equity split?
How much money do you have left?
We have a runway of 8 months.
you are amazing at raising funds.
[laughing]
- I salute you! - Thank you.
Are you ending your old product or who are you pitching it to?
You caught the crux.
Behind this, there are total 9 AI models.
2 per cent of it is similar to the real GPT,
that is ChatGPT, the LLM model.
LLM model takes my context from input.
Our second layer of AI
has four models.
Then, in the third layer,
your makeup look is created.
And in the last layer,
the application comes, which is our first defined product.
It's Do-It-Yourself.
So, our old products are not wasted.
- It's a part of the offering. - Got it.
- What we built
were the building blocks of BeautyGPT.
And a platform like BeautyGPT
is something that none of our competitions have.
But tell me something.
Who will buy the product and why?
BeautyGPT is made for large retailers.
Their SKUs
are between 2000 and 5000.
- You will take money from her. - Yes.
And how do you charge her?
It's subscription-based.
How much does a subscriber pay?
Rs 20 paise per execution.
What's your monthly revenue from subscriptions at present?
Monthly revenue of Rs 18 lakhs.
ITC is.
- Which brand does ITC use it for? - Dermafique.
I think it has an impact on the conversion.
Customers visiting the site
without this, and with this, what's the conversion impact?
- It impacts a lot. Our client - That number.
had integrated skin analysis in their existing website.
In 5 months, they run around 1.23 lakhs skin analysis.
Total 9000 purchases happened.
So, if they want to acquire 9000 customers,
they would've traditionally spent Rs 54 lakhs.
After integrating our product,
they spent only Rs 10 lakhs.
Tell me something. For how long have you been running this company?
Four years.
It's been 4 years and Rs 18 lakhs is your monthly sales.
You think it's a great outcome?
Our contractual revenue at present
will build to Rs 7-8 crores ARR in the next 12 months.
So, that's good.
Because I think that's your weak area. You have to increase sales
- in the business. - Correct.
The way you're burning
you'll need Rs 6 crores every year for the burn.
You need a very big round.
So, we've already in conversation for a round in parallel.
We've received soft commitments too.
For Rs 3 crores.
We're also in discussion with a strategic investor.
We are discussing a round of 3 million dollars.
At this valuation? 130 crores?
That's a good idea.
If a strategic investor gives you 3 million dollars,
you should consider it.
What's the price for this?
Generally, Rs 30,000 per month, per mirror.
will it give 10 per cent of the revenue to you?
Tata is on board with us.
Shoppers Stop, Lakmé Salon is on board.
We are deploying a minimum of 800 mirrors.
I think your business model has a problem.
The back end is not yours. The front end is not yours.
Because you are selling through a Sugar.
[music playing]
You are making models in between.
So you are being sandwiched.
Your economics and profitability
the farther you see,
the more it will be suppressed.
Your cap table and runway are also at stake.
So for those reasons, I'm out.
Firstly, you have
used a lot of buzzwords that give an intellectual feel.
I feel that. I don't understand such people.
You've already raised so much funds,
even after Rs 30 crores, doing a business of Rs 16 lakhs
I don't understand it.
Third, there's a problem in your business model.
I don't understand it yet.
For all the three reasons, I'm out.
You raised money for a product first.
And then you changed the product. Then you raised for the 2nd one
and now you're here to discuss a third product.
So, I see a lot of baggage.
Thirdly, I don't see an advantage yet
that gives you an edge
as to why you would make this tool better.
So, for these three reasons, I'm out.
Beauty is a category where education
and engagement play a very important role in decision-making.
It is very uninvestible right now.
But if you're able
to get a term sheet
That is a good product.
If I were your advisor, at all costs
even if you have to sell it to them for Rs 10 paise,
- they need to become your client. - Yes.
Because you're serving Sugar,
ten other small retailers... Your job is automatically done here.
So they're providing marketing to you more than anything else.
So, you used your strategy. I have a lot of experience in this.
Okay.
I'm a good strategic investor for you guys.
But I can't match this valuation.
Sell the company to me.
What?
If you make a good offer, we can consider it.
I'm willing to buy the company, majority stake
- for Rs 15 crores. - You're at the wrong place.
It is an offer right now on the table, right?
Provided due diligence that your
technology and team are already there.
- We'd like to think. - I'll be shocked.
If you have to think about it.
Go and come back quickly.
You need money, guys. And I can give you money.
Lenskart is doing company shopping here.
[music playing]
- Sunil, this is Manoj. - Yes, Manoj.
We have two offers here.
I think if we present a re-negotiated deal to Peyush
that is Rs 27 crores instead of Rs 15 crores.
I'm afraid that they will ask for Rs 30 crores instead.
Ideally, they should take it.
Only then they will be able to do something.
[music playing]
Welcome to Lenskart Tank.
Vineeta, thank you so much for the offer.
But 3 months is a crunch time.
If we receive the term sheet and it's under process
then I'd have jumped onto this offer.
Because I have nothing to lose in this thing.
And I know that we'll do wonders with you.
Peyush, we'd like to give you a counter-offer.
[music playing]
Do it.
I think we deserve a valuation of Rs 35 crores.
- For 51 per cent? - At least...
Yes, for 51 per cent.
But I cannot pay that price for this business.
[music playing]
Look, a hungry person never asks much, just takes the food given.
No, you can't sell your company in just 10 minutes.
[music playing]
But you guys know what it is out there.
You know the value I bring to the table.
But they can't sell their company in 10-15
- minutes. - Exactly.
Survival is the number one job of an entrepreneur.
- Only you know - But you can't
- sell it in 15 minutes. - It's not 15 minutes.
It's a long-term decision.
[music playing]
Your current business will continue.
We're not buying you out right now.
We'll make a business plan, try to grow the company.
You were here to get a valuation of Rs 100 crores.
You've given Rs 90 crores to your investors.
You just said that you will get a term sheet in 3 months.
It will pump in Rs 10 crores.
And on the other hand, you're willing
to sell your beliefs, principles.
- No, it's not like that. - Whoa!
You're willing to sell yourself for Rs 15 crores.
What nonsense is this!
[music playing]
A term sheet of how much money can you raise in 3-4 months?
At least, 1.5 million dollars.
So, Rs 1 crore at 1 per cent.
And in 3 months, you raise
[music playing]
Without getting influenced, say yes or no.
I'll respect you in both ways and we'll meet outside.
So, Vineeta, we'll take your offer.
- [scoffs] - Oh, wow.
- Lovely. - The tables turned.
- Is the deal done? - Yes, done deal.
[music playing]
Thank you.
Alright, guys.
Awesome.
[music playing]
Friends, we know what due diligence is
what financial and business due diligence is.
We've also learned what legal due diligence is.
It's turn to learn about technical due diligence now.
For example, we get a device pitch.
The founders claim they've got approvals from CDSCO,
it has a 95% accuracy,
and these are the benefits.
I will independently review
whether they have the certificates
- and approval that they claimed. - Got it.
Secondly, whether that 95% efficacy is actually true.
Sometimes, they claim to have certain publications
after a trial on 100 patients.
- We check whether that claim is true. - Understood.
What the result or outcome of it was.
The fourth and last one is...
- I have a group of doctors whom I trust. - Yes.
We are in about 18 therapeutic areas.
Cardiologists, oncologists, gynaecologists... I know everybody.