Hi, Sharks, my name is Bhupinder Madaan.
I'm from Gujarat.
I've visited many cafes.
At the end of the day, after exiting each one
I'd realise that they all
had the same old coffees with smilies on them.
There was no creativity.
These coffees had put a hole in my wallet.
My friend then asked me
if I've decided to chance the coffee industry.
And I simply decided to do just that.
Oh, nice..
I had a great idea.
Oh, wow! Amazing!
The names are very interesting.
Thank you. We roast our coffee beans
and serve the coffee to customers
in cool beer bottles.
Till date, from my three kiosks
I've sold more than three lakh coffees.
Sharks, I want to inform you guys that this isn't a mere cafe
but a new generation cafe chain.
To spread my amazing idea
across India
I need from you
Rs. 50 Lakhs against 10 per cent equity.
I assure you that we'll change the coffee industry.
I want to demonstrate how we make our coffee
in 59 seconds.
- Your time starts now. - Yes.
This is the coffee base.
That's our brew.
This is the milk base.
We've already put sweetener in it.
We just mix it and serve it in a beer bucket.
Oh, wow!
Delicious!
Thank you.
- A fantastic product. - Thank you.
- The coffee is very good. - Thank you.
I'm going to put this in my mug.
I'm not returning this.
Bhupinder, as you can see
you've charmed everyone with your product and brand.
Thank you.
However, how did you get
an understanding for this brand?
I started in business at a very young age..
I was 14 when I first started..
On that basis, I decided
to do business even if I have to sell roadside food.
That was the journey of my business.
Bhupinder, tell us about the businesses you've done
since you were 14 years old.. About their success
and result.. How much businesses have you done before this one?
This would be my seventh or eighth business.
- Eighth business.. - Wow..
My first venture was selling 'Momo'.
Gujarat didn't use to have 'Momo' then..
It was a long time ago
when I was around 15 years old.
Then I started a marketing firm.
I ran social media campaigns for many brands.
Then I started a a 'Paratha' business.
After doing many food related businesses
I finally came to Theka.
You're amazing. What's your age?
- I'm 27 years old. - 27.. - Oh, wow..
How old is Theka?
It's three years old.
Tell us about your sales figures.
In the first year, the sales were unbelievable.
Even I didn't expect that much sales.
In the first year, the sales was around Rs. 1.2 Crores.
Wow..
In the second year, we went up to Rs. 1.8 Lakhs.
Current tier? - I failed badly during covid for that..
I relaunched Theka after the pandemic.
Ever since, the sales has been of Rs. 30 Lakhs.
What are the figures for the last month?
The sales was of Rs. 4 Lakhs last month.
So you're running at Rs. 50 Lakhs a year. - Yes.
You mentioned that you relaunched the brand.
Are you running the business by yourself
- or do you have partners? - By myself.
How much have you invested in the business?
At most, Rs. 5 Lakhs.
The rest, I reinvested what I got from the business.
Is this your full-time
- or do you have.. - I'm focused only on Theka.
Are you determined to stick with it? - Completely.
I don't want to do a five year business
- but a 50 years one.. - Well said..
How many SKUs do you have and what's the shelf life?
I have only 12 products in the menu
and only six in the inventory.
I deliver these to customers such a way
that the shelf life of the kits is one month
and three days after it's converted into a bottle.
Bhupinder
let's try to understand
how you'll make the business.
Are you going to open stalls everywhere
or do a different distribution strategy.
- Can you tell us about this? - Yes.
My ideology was to
cut in on fixed expenses
and focus more on quality of the product.
At the end of the day, after starting a cafe
table turnaround time is high.
Cafe chains fail before paying
the rents at high streets.
My effort has been
towards cutting down on fixed expenses
and capital investment.
You're doing that through this. - Exactly.
The cost of carts and stuff is less.
I can have one kiosk for Rs. 1.5 Lakhs.
Plus, we're all handmade.
We don't have any equipment.
With no equipment cost
capital investment is very low.
My production units are ready to be serve in Rs. 2.5 Lakhs.
My aim has been to launch my carts everywhere.
Bhupinder, there are many coffee brands in the market.
What's the difference between Theka and those?
What are you doing differently?
My aim has been to serve
100 per cent Arabica coffee beans..
That's the most premium coffee bean..
Anyone with knowledge about coffee will know
that that's the best coffee that can be sourced.
We're trying to serve those to customer in Rs. 100
which is most affordable price.
Since it's handmade, do you believe
that you'll have trouble
when you have to scale the brand up?
Absolutely. For that reason, once we get the investment
we'll automate the bottling process
at the location of wherever
the kiosks will be opened..
To automate bottling..
What's your vision?
You've said that you want these to be in the supermarket
and have kiosks.
- Right. - Do you not want
to sell a ready to drink form of the product at airports
and supermarkets?
Do you want to keep the product freshly brewed
or are you willing to go towards ready to drink format?
Only if we're able to find the innovative technology
that enables us to keep the product
organic, without any chemicals
or what have you, that compromises
the organic flavour.. If we can do that
- I'm completely open to it. - So you're open to that.
In the second phase of the expansion, completely.
I was honestly very interested in this.
However, the one part of all of this
that has holds my confidence back
is the shelf life.
I'm out for that reason.
I believe that have a better shelf life
is very important to scale the brand.
Otherwise, the kiosk business will do well
which isn't fascinating to me.
True.
Bhupinder, my concern is that this isn't 100 per cent fresh
and neither does it have the potential
to scale with pan India distributors in no time.
It's not like that.
For that reason, I'm out.
I find simpler businesses easier to understand.
The brand that you've crafted
and it's tonality
are amazing.
It attention grabbing.
That said, food category
isn't my expertise.
You want to go offline heavy
and I can't add any value to that.
Purely because of those reasons, I'm out.
Bottomline is, beverage category
has a huge graveyard.
It's very problematic in distribution.
- Right.. - Distributing liquids
and maintaining shelf life..
Returns are so high that
businesses shut down at over Rs. 100 Crore mark.
From what I've heard from you
I don't see any differentiated approach
that tackles these problems.
If you continue with this model..
A roadside food type of scaling..
You'll also join that graveyard.
I'm out for this reason.
- Right.. - I find this challenging
for central cost and logistics.
I know a lot about franchise and retail business.
I believe that..
Your distribution centres in every city..
If you could centralise this more.. - Right..
You'll need automation technology for this
and I don't see that today.
If you focus on central logistics of the business..
- Right.. - If you accomplish that
it could become investable.
I'm out for today.
Overall, I see that you're on a right path.
You can focus a lot on this.
So, we wish you luck.
Thank you.. - We've all given you some advice.
It's up to you to implement those.. - Right..
- Good luck. - Thanks a lot.. - Thank you..
Thank you, guys.
Hi, Sharks. My name is Nihaal Singh Adarsh.
I'm a 19 year old engineering student.
- Wow! - Wow!
I'm sure you are wondering
that is a 19 year old boy doing here wearing a PP suit.
Yes. - Let me show you what's happening inside this.
Sharks, you can see that I wore this PP suit for an hour
and this my condition.
I'm sweating a lot.
You can imagine the condition health workers
who wear this PP suit for 12 hours during work.
Sharks, my mother is a doctor
and during the Covid wave she dealt with a lot of patients
and she was suffering from a similar problem.
Not just health workers
powder fillers of chemical industry
tablet packers from Pharmaceuticals
painters in a car shop.
Basically, every person
who is wearing a personal protective kit
risking their life to help others.
This is the condition for all of them.
Especially in tropical countries.
And to solve this problem I made this device.
Cov-Tech ventilation system.
This device is a highly compact, ergonomic ventilation system
which can attach to any PP kit like a play and play device
and ventilates it from inside.
Sharks, I've been an innovator since childhood.
I'm an innovator.
I opened my company called Watt Technovations.
I have the vision to innovate a lot of products like this.
And I have a lot of plans and hopes for this product
to scale it so that we can help a lot of people in the world.
- My ask is Rs. 101. - Wow!
For two percent of my company.
Which Shark would like to shake my hand.
Take it right away.
What is this?
I'm a 19 year old passionate innovator, Sharks
Mr. Peyush, you are a tech geek and I'm a tech geek too.
Basically, I'm here to connect with you.
I have a lot of big plans, everybody.
And I really want to get into this field.
Won't you finish engineering?
I'm doing engineering.
- You're doing it together. - Yes. I'm doing it parallelly.
Some of you are engineers
and you know that studying is done one month before.
How do you fit it in a PP suit?
- Can you show us? - Yes, absolutely.
Where are you getting the wind? All over?
I don't want to say where the wind is blowing.
I think you'll take off.
I understood it. Keep it.
- We've understood. - We understood.
Isn't the sound
loud and irritating?
Yes, some users were complaining about that.
We are trying to reduce it with iterations.
The problem is, since the filter is heavy
I have to run the motor at a higher RPM to filter the air.
I think I have two options.
I can work in heat and sweat
or work with this sound.
This is good feedback, Nihaal. You should incorporate this.
Yes, I will work in this.
Nihaal, what do you want to do? What's the plan ahead?
I want to grow a tech company
the vision is to identify a lot of problems for common people.
I've learned to identify since childhood.
I'm really grateful that I learned
that I can identify the problem and build an affordable
and widely scalable solution
in the tech domain.
Nihaal, I would like to say something to you
that you are very impressive
and innovative and you're into the depth of the problem
and you have to channel your innovation.
I know this is not your vision to make a PP kit fan.
Yes. - Mine wasn't Lenskart either.
I did a lot of things first
but when I came to eyewear
I slowly learned that this is my life's work
that half of the world doesn't wear glasses.
I think you'll find a path.
There's no need to hurry.
- You can grow it big. - Absolutely, sir.
I don't think you should do this business.
I think it's a waste of your time and energy.
Every business and industry has a critical success factor.
You haven't understood that yet.
Just doing innovation won't help.
Just as you spoke about this industry
you must understand it in depth.
Is this is a price driven industry
or innovation driven industry.
You must go in-depth for that, friend.
But for few years
yes, you must do a lot of innovations.
And then you'll find something you'll fall in love with
- and then you'll make it big. - Yes.
I agree with Anupam because I'm from this industry
this product won't sell.
Nihaal, I also want to give you feedback.
Right now I have two things.
Right now the solution isn't elegant.
It is very complicated.
I think you're attached with PP
and where PP plus ventilated PP
can be used with a simple solution
where the doctor only wears it
then maybe that can be scalable.
So that is my suggestion.
Obviously, all of us will be open to give you an offer
as well as adopt you.
There are three mothers here.
From me, you have an offer
but I don't think you should take it.
So I won't say I'm out
I'm open to giving you Rs. 101 for two percent
and I'm happy to give you time when you need.
- Best of luck. - Thank you so much.
- Nihaal. - Yes.
In order to achieve anything
be it small or big
- it takes a lot of hard work. - Yes.
I think I'm there for mentorship
because I want you to understand
that even to raise so much money it takes a lot of hard work.
Nihaal, I'll tell you something.
At the age of 19
you're speaking with such maturity
you are thinking so ahead of everyone
impossible to say no.
I'm giving you an offer. My cheque is ready.
I'm just very impressed with you.
I'm sure you'll do something in the future.
I would like to give you an offer.
Either take Rs. 101 for two percent from me.
Or Anupam and I will split it
to show that we believe in you
and we want to be with you for the long term
as mentors and as people who give expertise
and as people who give you connections. - Yes.
The reason we want to take two percent
because I'm sure if not this device
you'll surely do something else
in which I'll become a millionaire.
You got it, ma'am.
- Anupam, either we'll split.. - Sure..
- No problem. - We should invest in him.
Look, you're asking for Rs. 101.
I'll give you Rs. 1100. There's no problem.
But I don't think it's right to take two percent now.
I'll give you a better idea.
- I'll give you my phone number. - Okay.
Whenever you need help, you can reach me.
When you bring out your first idea
which can be made big
I'll be the first investor in that.
You can give advisory shares to anyone.
It's not advisory, it's equity
through which I'll become a millionaire.
Don't say it's advisory.
In future..
Why are you bothering him?
Sir, I have an extra offer, not a counteroffer.
I'll raise it to four percent, but can we have you too?
- Yes, sure. Take Rs. 1100. - Come on, Peyush.
Take it.
Here is Rs. 101.
- All of you owe me Rs. 25 each. - Yes.
Give me Rs. 25. I'll put Rs. 26.
Thank you so much, sir.
- All the best. - Thank you so much, ma'am..
- You have to go far ahead. - Yes, ma'am.
And you'll do it.
One condition in the contract.
All the innovations will happen under this company.
- That's obvious. - Yes.
Don't make a new company.
Builders' sale.
Pal, it's five in the evening.
Sharks are before us.
Aliste boys are here.
There are lights or curtains. What are you doing all day?
Bunty, what did I teach you?
I hired you to do this. Do it.
You're so lazy. Do you do anything except lay eggs?
Yes, I'm lazy. What will you do? Here you go.
- Take it. - Oh, God!
Can't you do even this properly?
Look at them. In which era are they living?
Shreyansh. - Hey, Siri, turn on lights.
Yes.
Swag.
Hi Sharks, we are Aliste.
And today we are here
to turn every Indian house into a smart home.
You can not only automate our gadgets but also
most of the gadgets
present in your house.
And you can control them from anywhere in the world.
Sharks, we feel that
in the future every new house
will be a smart house.
And with your help
we can establish ourselves in this market.
That's why we are seeking Rs. 60 lakh against
5 percent equity.
Sharks, we would want
you to try our product once.
Sure, we would love to try.
Let's all go.
- Is this the bedside lamp? - Yes.
- Nice. - Nice. - This is really good.
You all are enjoying it so much.
You already are visualising it in your house.
Who among you is going to give an offer?
Anupam, are you a founder or a shark?
He is already in our team.
He is already in their team.
We all are young.
- So, all of us joined. - Very nice. - Oh!
Are you saying that we are old?
No.
We mean, get on the board as you are also young.
Nice save.
- This is wonderful. - Wonderful.
- Great demo. - Good stuff, guys.
What's your age?
23.
23. - So guys
welcome to Shark Tank.
Thank you, sir. - Are you six the co-founders?
Yes. - Please tell us how you all joined.
Sir, we met in college
and we started living in the same house.
And we used to enjoy in the same room.
So, the switchboard in our room
was little away from the bed.
So, we used to argue about
who will switch on the AC.
So, you showed us the reality.
Yes.
Me and my husband too fight about this every night.
Yes. - Who will switch off the light.
This happens in every house. That's why we made this.
Jokes apart.
Let's talk about the business.
What kind of products do you build?
Are you making a platform, software
hardware or what? Please explain that.
So, our product
is a debit card sized device.
Okay.
We can fit that behind our existing switchboard.
And we can control
all the home appliances
using our mobile phone.
Also, to make the ecosystem strong
we have built smart curtains
smart door locks
and CCTV integration.
Because we want our customer to get all the solutions
in one single application.
So, you sell to customers or businesses?
We have two channels.
One is B to B.
And the other one is B to C. - Understood.
- Okay. - Thank you.
This is not a new technology.
Many companies
do offer this product.
What's so unique in this?
We have already some players in the market.
We consider this market as split into two parts.
One is of expensive products.
Companies such as Legrand sell them.
Their solutions are very expensive
but they are reliable.
The other category consists of Chinese products.
They are very cheap.
Traders sell them.
So, there is a very big gap in the market.
So, we thought of catering that.
How much does your switchboard cost?
That depends on the number of switches.
But generally
the switchboard with five switches
will cost Rs. 12000.
In average projects the selling price
is around Rs. 8000.
The manufacturing cost
of this device is Rs. 1100.
And to our distributors we give it for
Rs.4500 plus GST.
Distributor adds their margin
and the customer gets it
for Rs. 9000 plus GST.
What's the revenue?
Total revenue so far is Rs. 1.1 Crore.
It has been roughly
around 15 months.
And if you ask the year to date
it is around Rs. 63 lakh.
How much was it last month?
Approximately Rs. 7.5 lakh.
Net profit?
Approximately 40 percent.
40 percent.
You are five years late.
There are two businesses here.
B to B and B to C.
B to C is over.
Manufacturers are manufacturing
devices that connect
with Alexa and Google Home.
It takes me seconds
to turn on Alexa, pair it and say
turn on the bulb or turn it off.
But now this has become a toy.
So, people buy it and play a little with their kids.
Then they switch it off
because it is highly inconvenient.
For this to work
all the appliances has to become smart.
Sir, let me tell you why we cater the consumers.
We believe that the construction market
is always going up.
When you are getting your home constructed
you are already spending a lot of money.
Then I might buy Daikin's smart AC
or I might buy any smart fan.
But there are many different things in my house.
When I install the lights
I focus on the design too for the aesthetic appeal.
So, from us
the customer gets
a one stop solution for everything.
I agree.
What I meant is that
your business is a B to B business.
Because generally people get their houses made
with the help of a designer or an architect.
They usually recommend what to buy.
And when it comes to the construction business
the builder decides.
Right. - So B to C is impossible in this space
in the current scenario.
You want to raise money
but where do you want to use it?
We have two confirmed orders from two builders.
So, our approved revenue for the next two years
is close to Rs. 4 Crore.
So, to fulfil that demand
we need some money.
And we need money to improve the technical
bandwidth of our company.
I would like to leave
because this is not relevant for me.
Because for me B to B scaling
is a concern
unless you have the relevant experience.
So, I would like to leave.
Me too
because I'm unable
to relate much to this product.
And I've expertise in this.
So, for that reason I'm out.
But the enthusiasm that you have at the age of 23
and the quality which I saw
is fantastic. - Thank you so much, ma'am.
Your ambition is little small.
You want to give builders your product
for credit.
Then you want to go to someone's house
and understand their requirement.
Why don't you see a vision where you'll build
an affordable new age home
for India?
Are you in or out?
Let me give the feedback.
Okay?
Ask them if they are here for an advice or money.
Both.
According to me it is a big opportunity.
And you should be able to sell it for Rs. 800 per room
instead of Rs. 8000.
Then you will see the business growing.
So, I'm out today.
I agree to what Piyush said.
That's why I'm out.
You must think in a different way
if you want to do something big.
As far as home automation is concerned
that business is cornered by big tech.
Google, Apple
Amazon Alexa, etc.
It will be very tough for you to make a position there.
But I've a good news for you.
I can give you an offer.
You work with the builders. Am I right?
Sometimes it is tough to get money from them.
So, I want to finance that gap for you.
I'll give you Rs. 10 lakh
for 10 percent of your company.
And I'll give Rs. 50 lakhs as debt
for which you'll give me 12 percent interest.
Can we take one minute?
- Sure. - Thank you.
I was interested in investing in those kids.
Anupam is right. It is very risky.
The army is back.
The army.
Respectfully we would like to give a counter offer.
Tell me.
If possible we request for 85 lakhs
for ten percent of our company.
- This is a very risky business. - Right.
My confidence is in you guys.
I feel like my debt will be cleared somehow.
And I wanted to motivate you guys. - Yes.
I can't take more risk than that.
I'm here to make money.
So, I'm sorry I've to decline. - Sure.
But enjoyed watching you guys.
- So, thank you so much. - Thank you. - Thank you.
Don't be upset. - Not at all. - There is nothing as such.
Keep going.
You all are young.
- Only 23. - Yes.
We wish to sit on these seats some day.
That day is not very far. Thank you so much.
That's the spirit.
- All the best. - Thank you.
Thank you. All the best.
After studying many such issues
I am Ravi Mathur.
I am Shilpa. We are the co-founders
of 'Insurance Samadhan'.
Sharks, try to remember the time
when a family member or a friend was admitted to a hospital.
We buy an insurance with the hope that
it will help us during a difficult time.
But we are always worried if we can claim it or not.
This is a big problem in our country.
People do not have the knowledge about insurance policies.
Therefore, it leads to mis-selling.
An elderly person is sold an insurance
in lieu of an F.D.
A businessman is sold an insurance in lieu of a loan.
After studying many such issues
and using our 45 years of combined experience
we started 'Insurance Samadhan'.
Sharks, in our three years of journey
we have resolved over 14,000 complaints.
And we have helped people receive their claim amount
of more than 30 crore rupees
- which was rightfully theirs. - Wow!
Sharks, I am glad to tell you that
we are the only start-up in Asia
which provides solutions to the problems regarding
all three types of insurances
namely, life, health, and general insurance.
For that, we offer you one percent of our company
for one crore rupees.
- Oh! - Wow!
- Sharks, since.. - I want an insurance.
Since we hold your hands honestly
we will be there with you on every step.
Give us an insurance for this as well.
So, Deepak, Ravi, Shilpa..
- Congratulations. - Thank you.
You have brought a solution to such a big problem.
- And a very high valuation too. - Yes.
It's a very high valuation as well.
Mr. Anupam almost fell off his chair.
So, how do you know one another?
What are your roles?
All three of you are the co-founders
of this business. How do you share the equity.
Give us some information regarding that.
- There are five co-founders. - Okay.
Three of us are here.
Two are back home, working hard.
The three co-founders, Shilpa, Shailesh, and I
used to work for 'Max Life Insurance'.
In 2014
we met a senior police officer in Delhi.
He told us that his father who was 72 years old back then
was a victim of fraud.
The fraud continued for six years.
Oh my God!
Total 42 insurance policies of 6 different companies
were sold to him.
The total premium was Rs. 38 lakh.
When he got to know, the best he could do is..
He suffered a financial fraud.
That person went to the jail.
But despite being a police officer
he couldn't recover even a single penny.
We started helping him.
And within a span of 4 to 5 months
we helped him to recover the entire money. - Amazing!
- Incredible! - Very nice!
- Amazing! - Very nice!
- Thank you. - I can understand.
Going through this..
Someone did this to you. Losing the faith..
It's painful.
This work is important. Tell me one thing.
How do you do this? Do you have any product
- or any app? - We have a website.
We have a WhatsApp bot. You write 'Hi'.
A bot will start. It will ask you basic questions.
Your age, police type..
Few questions depending on the type of problem.
Based on that our engine will tell you
whether your proof will work or not.
If 100 persons approach us
we accept only 5 to 7 cases.
It's not that we don't want to resolve.
We want to.
But the problem is communication gap.
Because insurance is a technical product.
You are informed about the terms and conditions.
Sometimes, you are not informed or you don't understand.
But when the moment of truth comes
you think you are the victim.
That's not the case.
I have understood the user experience.
But how do you earn money?
When your case is solved and you get the money
we take success fees.
- How much do you charge? - 12 per cent as of now.
- 12 per cent. - Yes. - Okay. - That's another USP.
We take money later.
Do you know bad debts is a big problem in India?
Does it happen to you?
The customer gets the money but they take time to pay you.
We don't have bad debts till now.
But this percentage is minuscule.
Because we help them to recover the money that they have lost.
So they become very happy.
Having said that, in our financial projection
we have put 2 per cent as bad debts.
- But we haven't experienced this. - It's very low.
I mean, you are lucky.
But please keep this in mind.
- Because once you scale up - Yes.
there will be two issues.
If you wait for customer's recovery
it will increase your bad debts.
Which is a direct hit to profit.
The second problem is, if your working cycle gets stretched
you will have issues in cash flow.
Second.. Who is your competitor?
Who else does this in India other than your company?
No one in Asia when it comes to claim resolution.
It's a common problem.
How come.. - Why will Policybazaar not do this?
- They will do this. - Yes.
Since Policybazaar sells insurance.
You can't sell and resolve simultaneously. - Yes. - Why?
I am doing customer service.
Suppose I say my problem is related to X company.
You have solved it. After that, what you will do.
You will sell Y company.
X company will not be happy with you.
What's the success rate? What's the conversion rate?
Our success rate is 70 per cent.
- Okay. - How much time
does it take for this resolution
- to happen? - Interesting question.
If you observe industry pattern
it might take 6 months to 2 years.
We take around 45 days to 60 days on an average.
We solved few cases in few days, even in few hours.
I am impressed with one thing.
You are saying your success rate is 70 per cent
out of the complaints you accept. - Yes.
- Word of mouth must be good. - Great. - What I've understood
you've earned Rs. 2 to 3 crore in last couple of years.
you have come here to raise Rs. 1 crore for 1 per cent.
The valuation is Rs. 100 crore.
So I think something is going to happen in next 12 months
your revenue will be justified.
- Very good observation. - What's the trick?
Please explain.
We are doing good from the starting itself.
Suddenly, our revenue has started increasing.
I am giving you an example.
In last 3 financial years
we have earned Rs. 1 crore.
And in this financial year, we have already earned
- more than Rs. 1 crore.. - What about the last month?
- Rs. 22 lakh. - You're growing month on month.
We are growing month on month.
- The most important aspect.. - At what rate? - Rs. 80 crore
is under claim process.
Either with the insurance company
or with other buckets.
As I said, TAT is around 2 to 3 months.
If we resolve even 50 per cent
we will earn Rs. 3 crore to Rs. 4 crore.
I have made up my mind.
I want to tell you something.
Do you understand cricket's T20 format?
Absolutely!
I will explain my investing format as T3.
One is team.
You have a nice team.
The other one is TAM, total addressable market.
- I have observed figures. - Okay.
No matter how hard you try
you can't do business beyond Rs. 125 crore.
That's the problem.
The other problem is timing.
Capital and competition will be more in insurance field.
Many issues will be resolved then and there.
So it will affect your business.
So due to that reason.. Although I love the problem
you are solving.
The time taken to resolve.
I will disagree with Anupam about the scale.
Because one thing is relevant in India
which you know is insurance penetration.
It's very low.
Low single digit comparing to developed countries.
As it will grow, your business will grow too.
The scale is not the issue.
I think your issue is execution
in terms of marketing, customer accusation
bad debts.
The time taken to resolve.
And the valuation you are asking for
I think there is a mismatch.
I am out due to that reason.
Even I will tell you my decision.
Your working capital cycle..
The more you scale up, it will be longer.
I can see that.
And what you are asking for
1 per cent equity for Rs. 1 crore..
I think it's too high.
I am not able to calculate the number
considering your current scale.
So I am out due to that reason.
I will give you an offer.
Because I really like your team.
My offer is one crore for 25 per cent.
Because you have conviction..
And this category..
My mother fought with the ombudsmen
to recover the money. So, we are fighters but..
It's a very..
I think it's a very common problem.
So, guys, you're lucky. You have one offer.
Tell me about the technology you want
to build after three years and about your company's vision
and then I will give you an offer.
Sir, our vision is to provide one app to every policy-holder
in this country
where they can upload their polices
and we will tell them within three to four seconds
whether it will be resolved or not.
We will tell you the success percentage.
This is very good acquisition funnel.
From service we are moving towards product.
So, universally, it will become a thousand times larger.
Every policy-holder will be our opportunity.
Part one. Second..
We have already closed the pre-series A-round.
You said it too early.
That is our much higher valuation.
In July we signed our first term sheet
at 25 crore post-money valuation.
How much money did you raise?
Five crores.
What is the percentage you diluted for that?
20 per cent.
Why are you asking for more valuation here?
Because the day when we signed the term sheet..
We have grown four times from then till now.
I will.. After two minutes my offer will be gone.
It's okay. I will..
I will give you a better offer.
- There's nothing to worry. - You will understand
everyone's reaction because the offer is very good.
Look, she doesn't understand your technology very well.
I don't even want to get into that.
Because I have faith in the team.
They are a very strong team.
But your offer remains same. 25 per cent.. - Yes.
Do you want to take this offer?
That valuation doesn't make sense to us, honestly.
So, you only have one Shark left in this.
- And that's me. Okay? - I will listen to your offer
and then decide.
According to me it's a technology based company.
This isn't a D2C company.
- Do you think that.. - Just a second..
...we don't use technology for the cosmetics? - I..
I don't want to share the investment.
I want to give you the entire amount.
I offer you one core rupees for 10 per cent.
It's five percent of your last valuation.
But I need a lot of help right now.
We have a counter offer to you.
What's there to counter?
You have to raise 100 crores in the next round.
No, more than that.
- So, we are very sure.. - That..
It's not less than 250 crores.
- So, I can help you.. - Series-A has to be raised.
raise that money.
Indeed, you can.
What's your counter offer then?
See, 1.3 per cent.
- Enjoy Peyush, Bye.. - Oh, come on..
I will tell you the worst case. I will take five per cent. Okay?
I will not take less than five per cent
because you..
Then it means that you don't value me.
Okay? I will take minimum five percent
which is your last round valuation, pre-money.
And I can guarantee you
that I will get you a series-A done.
What's your call?
- Can we get two minutes to.. - Yes. - Sure.
Very generous offer.
In three months he will raise series-A.
And the money will be quadruple.
- You have some other.. - 100 per cent.
It's a good offer. There can't be a good offer.
It's a very good offer.
So, tough decision.
But we again have a counter offer.
Two and a half percent for one crore.
- I don't think, Peyush.. - No. I cannot. Sorry.
This is my best offer.
You're making a big mistake.
I was competing with Peyush
but you know, you can't justify such a jump in the valuation
- in just five months. - And I'd also like to say
that if you don't take such decisions
then it will be hard for you to become a big company.
You need to think big to make a big company.
Okay, so, you're at 2.5 per cent
and he is at five per cent. Will you come to five per cent?
No.
Will you match the post-money? Four per cent?
Okay, I will close the deal for four per cent.
Not less than that. I am sorry.
Decision time, guys. Yes or no?
Done.
- Wow! - Wow! - Wow!
- Done. - Done.
- Well done.. - Good deal.
...Deepak, Ravi, Shilpa.
- Good decision. - Superb - Super..
And may you help the Indian middle-class save millions.
- Thank you.. - This is our hope
and expectation from you.
I love the logo.
- Yes, I also like it. - This umbrella
to give the protection.. It's beautiful.
Superb!
- Congratulations, guys! - Congratulations.
All the best.
- Wow! - God!
- Awesome. This was good. - Fantastic.
- Great. - Ravi's job is done.
- I will put it here. - Deal closed.
- Peyush.. - Peyush..
You are going to make a lot of money.
- Very good. - Congratulations!
- Thank you. - Congratulations!
You're going to make a lot of money on this.
- Very good deal. - It's a brilliant deal.
- Either 10x or nothing. - Of course. - Great, man!
You got a great deal!
Really? Why didn't you join?
I didn't know the prior investment. - Tempting.
Yes. I am going to ask that question..
- first in the next one. - Your money is gone.
Thank you.