Sharks, fasten your seatbelts.
The game is about to begin.
[exciting music]
3, 2, 1.
Go!
[adventrous music]
Careful, Amit.
Nice.
Hi.
[adventurous music]
Whoa.
- That was nice. - Amazing.
[adventurous music]
[theme music]
Sharks, how did you like it?
Very good.
We really enjoyed it. You all flew them very well.
We felt the same adrenalin rush
when we saw these drones flying in our college.
So we thought
of making these drones ourselves.
And so, when we started our research,
you will not believe what we saw.
You cannot buy these drones in India.
- Really? - All these drones are available abroad.
So what do people do?
They order them in an unauthorised manner from abroad.
Sharks, do you know
that recently the Indian government
banned flying these drones in India.
Because they were all foreign drones.
So what would, cinematographers,
YouTubers, students
and commercial photographers do in this scenario?
Where will they get these drones from?
That's why we present insideFPV.
InsideFPV is India's first consumer-based
leading drone company.
It manufactures Plug & Fly FPV drones.
It means you plug in the battery in the drone
and fly it.
We'll manage the rest of the technical aspects.
So Sharks, through insideFPV
we want to make drones pocket friendly in India.
Our drones are listed
at Rs. 2,800 on our website.
You will not get it anywhere else in India.
We offer services to our consumers like,
one drone crash warranty,
and free consultation by experienced pilots too.
Our vision is to
make insideFPV the no. 1 global brand.
And so Sharks, we need your expertise.
I am Oshi Kumari.
I am Arth Chowdhary.
And I am Devyant Bhardwaj.
And we are the founders of team insideFPV.
We are asking for Rs. 75 lakhs against 4% equity.
So Sharks,
are you ready to take this flight with insideFPV?
- Nice. - Very nice.
You made a very enthusiastic pitch.
The entry was perfect too.
- Thank you, sir. - So...
Arth, Oshi and Devyant, welcome to Shark Tank.
Thank you, sir.
Did you start this in college? How did it begin?
All three of us have studied at the Vellore Institute of Technology, Vell
Lovely.
I have a mechanical background.
Arth has a mechanical background too.
Devyant has an electrical background.
I am still studying in my fourth year of engineering.
And these two graduated just two days earlier.
- Wow. - Wow, amazing.
Brilliant.
Thank you.
Fantastic to see a woman in STEM.
There are very few in our country.
She is India's first FPV woman pilot too.
- Wow. - Amazing.
- Well done, Oshi. - Thank you, ma'am.
So you three made these drones while studying.
Set up your business. When do you'll actually study?
Sir, studying was online for the last two years.
So we did not need to study much.
[laughter]
- You mean you did not study. - No.
- You did not study? - Even then she's a 9-pointer.
What does that mean?
At VIT, 9-pointers have a lot of benefits.
They don't have to attend classes and get extra preference everywhere.
- Oh, she's a genius. - Yes.
So you both got attached to her?
That she would create something and you would benefit too.
[laughter]
What does FPV mean?
First Person View.
So you can sit here,
and with your transmitter or remote,
see the feed in your goggles.
While seeing that feed,
we can travel around 4-5 kilometres from here.
- All right. - Got it.
- Where are the goggles? Can I see them? - Yes.
- Can I come there? - Definitely.
[intriguing music]
[adventrous music]
Don't come close to me.
It's coming towards you, Anupam.
- Hi Aman. - How are you?
I can see these guys very clearly.
Good job, guys.
This is crazy. This is very difficult.
This is the model for Rs. 2,800.
Even kids can fly it.
[funny music]
Seeing their enthusiasm, it's obvious that kids can fly it.
[funny music]
I want to fly it close to Aman.
It's buzzing like a fly and you want to fly it close to me.
Arth, send him back or he will keep doing this.
[funny music]
- This drone we just flew costs Rs. 2,800. - Yes.
How much does the FPV model cost?
That's for Rs. 25,000.
Basically, the price range of our drones is Rs. 2,800,
Rs. 8,000, Rs. 10,000.
Rs. 15,000.
The price of the FPV drones are high because
you get the goggles with it.
You also get the transmitter
and a battery along with the drone.
[dramatic music]
Currently, who is supplying drones in India?
We are the first consumer-based company.
The first thing is that you are not
the first drone manufacturer.
[dramatic music]
You might be the first to manufacture for Rs. 2,800.
There must be many drone manufacturers in India.
We can see many drones on Amazon.
I bought drones from there.
[dramatic music]
The consumer drones you see
are the DJI drones.
Parrot drones.
- Parrot is a brand from the USA. - Parrot is a French brand.
DJI is a Chinese brand.
- And both are banned now? - Yes, sir.
[dramatic music]
I saw the drone closely, it has a battery.
Wiring and components.
The entire design
and manufacturing. All this is done in India?
We have vendors from three places,
China, Taiwan and Hong Kong.
We source the parts from there and
those are integrated here.
The assembly is prepared.
You said foreign drones are not allowed
so you are manufacturing here.
[thrilling music]
Parts must be allowed, drones are not allowed.
You cannot set up
a drone manufacturing unit in India
because that requires a large CapEx.
There's no scale for drone manufacturing
to start in India now.
Exactly, this is an emerging industry.
- Correct. - All right.
Talking about scale,
you brought a valuation of 18.75 crores.
So what is your revenue?
Both for last year and last month.
Our last month's revenue is Rs. 13 lakhs.
- Amazing. - Very good.
- Well done. - My expectation was lower but
- I am very impressed. - Last year?
It was Rs. 85 lakhs.
But this year from April to now,
we've already crossed Rs. 44 lakhs.
And we are looking to close at Rs. 4 crores because
VIT, Chennai
is setting up a drone lab for students.
So we're giving them all our drones and equipment.
Secondly, VIT, Vellore
is buying two agricultural drones from us.
Each drone will cost Rs. 8 lakhs.
Oshi, I'd like to ask you one question.
How is the equity split between you three?
And how are the roles
and responsibilities assigned to each of you?
And mainly, split the 13 lakhs between B2B and B2C
so that I get some clarity for your vision.
Our equity split is equal now.
Arth is the CEO.
I'm the COO.
And Devyant is the CTO.
The 13 lakhs
is distributed in this way.
40% came from Plug and Fly FVP drones.
And the remaining 60%
- came from the spare parts. - Okay.
Your third question was for B2B and B2C.
Zero sales in B2B.
The complete Rs. 13 lakh sales are B2C.
Okay.
You sell it for Rs. 2500.
Can you explain this to me in detail?
The cost is Rs. 2500, how much is the GST and the sale?
How much does it cost you, what is your profit?
The B drone of Rs. 2,700
costs us around Rs. 1450
plus 18% GST.
1450 plus 18% GST
is our cost.
And we sell it
for Rs. 2,700 including GST.
Which makes our profit margin approximately
30-35%.
You make a profit of Rs. 1,000.
Yes, Rs. 1,000 is our profit.
It's the gross profit.
Moving forward,
will you only manufacture the hardware for these drones
or also the software?
And will you also provide services for it?
We will build the manufacturing set-up.
We are not going into the services sector.
Till now, we were working on the hardware.
As the company keeps growing, we want to
create an ecosystem of hardware and software.
Do you have any idea about a remote car company brand?
Any company that's become big in the world?
- No. - No, because they all got commoditised.
Consumer hardware applications for drones
will be completely commoditised.
You claim to be alone because of regulations.
It is only a matter of time before there are hundreds.
The services space is being managed by a lot of big companies.
So I think it will be very competitive.
[dramatic music]
For these reasons, I'm out. I wish you the best.
Thank you, sir.
What have we created ourselves? Have we just assembled parts?
Or have we written a program?
Or have we made an intellectual property
because of which we are different?
Basically the assembly of the drone,
and then the software needed,
require many lines of coding.
I want to know about it. What coding did you require for it?
A drone has a flight controller
which acts as the drone's brain.
So we do programming for the flight controller.
We are designing new models
and we'll get them patented within a year.
Did you get any patents till now?
No, sir!
Our company is just two years old.
- But once we get funding, we'll focus on design... - Hold on!
What do you mean by funding?
Did you already receive funding?
- Yes! - Yes! We raised Rs. 25 lakhs
at a valuation of Rs. 12.5 crores. Also,
we have received Rs. 10 lakhs as a grant
from the government of India, Nidhi-prayas, VIT TBI.
Where do you sell? Where did you sell your products?
We sell our products through our website.
How do you attract customers to your website?
In these two years, we focused
on organic marketing which is word-of-mouth marketing.
- We didn't spend a single penny on marketing. - Wow!
That's how we are growing. And now, we're a young profitable startup.
As far as I understand, it's an early stage.
But you three are superb.
We can stake our money on you.
So we'll give you Rs. 50 lakhs.
I'll give you Rs. 25 lakhs and Aman will give you Rs. 25 lakhs.
Plus, Rs. 25 lakhs in debt. Aman and I will give Rs. 12.5 lakhs each.
And we are giving you Rs. 50 lakhs for 20% equity.
Eh?
That's it! That's it?
The reason is, we are taking a risk.
What is your interest rate on the loan?
No interest on the loan. I don't want any interest on Rs. 25 lakhs.
- I have one last question. - One more question?
Are you making an offer?
Is it allowed to ask a question before making an offer?
- Of course! - You may ask a question.
You said that you didn't spend money on marketing
- for your sales. - No!
- You sold your product through your website. - Yes!
I want to know your secret. How are you attracting sales organically?
There's a blog section on our website.
Content writers work for us from the very first day.
They write the content and post it.
You should have said it before. It's a strong point.
Actually, they want to check what you have already done.
But we want to check your scope. That's the only difference.
Let me talk to Namita first. Then we'll make an offer.
Amit, I hope you don't have any more questions.
Otherwise, you'd complain later.
- Anupam, I could ask more questions. - Good!
[suspenseful music]
We have an offer.
Rs. 75 lakhs! We won't offer you a loan as it's complicated.
As students, how will you return it? Student loans are more than enough.
So we won't give you a loan. We offer Rs. 75 lakhs against equity.
Namita and I will divide the amount.
- The equity is 15% so the valuation is Rs. 5 crores. - Double valuation!
They gave you a valuation of Rs. 2.5 crores.
I'm confident that you'll succeed.
That's our offer.
We'd like to make a counteroffer.
Go on!
Rs. 75 lakhs for 5% equity.
We want all four Sharks to come together
and help us soar.
We'll make sure, you won't regret investing money in our company.
I won't agree to 5% equity.
We can match their offer of Rs. 75 lakhs for 15% equity.
We'll make a final offer as you want to bring about a change.
- Our final offer is Rs. 75 lakhs for 12% equity. - 12%!
And the valuation will be Rs. 6.25 crores.
We gave you a better valuation.
All of you together, can we make it 12%?
[dramatic music]
Let's do it! All four of us for 12%.
No! Peyush opted out.
- Please! Please, Peyush! Please! - Please!
- Tell them. The kids want you to join. - Let's all do it.
All four Sharks agree to join. But...
We'll offer Rs. 75 lakhs for 15% equity.
Please answer, yes or no.
Deal done, Sharks!
- Well done! - Nice! Good job!
Good job, guys!
So I'll give my cheque to India's first FPV woman pilot.
- Thank you, ma'am! - Well done!
- Wonderful! - Thank you!
- Many congratulations! - Thank you, sir!
- Here you are. - All the best!
Good luck!
Sharks, there are several taxes nowadays.
Property tax, wealth tax, income tax and now there's a fat tax too.
Suppose, you go shopping
and you like a garment which costs Rs. 1,000.
And if you want that garment
in sizes above XL and XXL,
chances are that you will have to pay extra for that piece of garment.
- This is known as the fat tax! - Ouch!
And, Sharks, there was a need for a brand
that honours a person's individuality.
And hence, Angrakhaa was born.
Angrakhaa is an online size-inclusive clothing brand
which makes extremely fashionable, cool and trendy clothes
for all sizes.
It includes various categories like dresses, skirts,
co-ord sets and also Indian wear.
I see!
Our specialisation is customisation.
And the most important thing is that all sizes are priced the same.
We don't discriminate.
We've fulfilled the orders of over 10,000 customers till now.
And we have more than 55,000 followers on social media.
Wow!
And we are all set to enter the Indian wedding market
- for both men's and women's wear. - Wow!
We want to make Angrakhaa a global brand
in the size-inclusive category
so that when people go shopping, they don't say,
"I wish it was available in my size!"
[laughing]
Hello, Sharks! I'm Asana Riamei.
And I'm Vishakha Bhaskkar.
Both of us are co-founders of Angrakhaa.
Sharks, our ask is Rs. 40 lakhs for 5% equity.
[upbeat music]
And now, Sharks, presenting to you, Angrakhaa!
[vocalising]
Sharks, this is what size inclusivity looks like.
- Thank you so much, girls, for being here today! - Thank you!
- Thank you, guys! - Amazing presentation!
- Thank you! - Thank you!
- Welcome to Shark Tank season 2! - Thank you so much!
- So your name is Vishakha. - That's right.
I didn't catch your name.
- Asana! - Asana!
- Yes! - What does Asana mean?
It's my pet name.
- Actually, I hail from Manipur. - Wow!
My original name is too long.
People often mispronounce,
so my parents gave me a short name
so that it's easier for other people to pronounce it.
[laughing]
- 'Aasan' means Asana. - Yes!
It's suffixed with 'na'.
So sweet!
But please tell us your original name. We'd like to hear it.
Sangailungliu Riamei.
Oh, wow!
First, I'd like to know the story of your journey and your background.
I studied at Shri Ram College of Commerce.
I completed my honours degree in economics.
But I didn't have an interest in that field.
So in my second year of college,
I started writing fashion blogs.
Mostly on mid-size and plus-size fashion.
Throughout my journey, I connected with numerous girls
who made me realise that they faced a similar problem.
The manufacturers forget about style and fashion
when they make plus-size clothes. They just make outfits.
After my college,
when I joined my first design and fashion job, I met Asana.
After approximately two years,
I decided to start my business.
So I started my business and I contacted Asana after a year.
I asked her if she'd like to join me.
And she was all game for it.
Awesome!
Asana, please tell us something about yourself.
Actually, I came to Delhi to study in a college.
Simultaneously, I was working and supporting myself.
Wow!
When I joined the fashion industry,
I felt it suited me
because I like to design clothes.
Ms. Asana, which place do you exactly belong to in Manipur?
I belong to Tamenglong. It's one of the most underdeveloped
districts in India.
- Oh! - What's the total population?
It's around 30,000 to 40,000.
It's a small town.
Very few people must be coming to Delhi to study in college.
- Yes! - So your journey to Delhi
is in itself a huge step.
My dad supported me all through.
- Oh, wow! - Alright!
He wanted me to go to Delhi and explore.
He was supportive. And that helped me reach here.
Asana and Vishakha, body-shaming is prevalent in India.
- People call a fat person, "fatso"! - Yes!
I have also been at the receiving end.
Why didn't you decide to make clothes
- only for the plus size instead of all the sizes? - Yes!
I think the biggest problem
in the plus-size industry is,
they treat plus-sized people like outcasts.
We make them feel inclusive.
We don't have a separate set of collections for them
or a separate size chart.
We make them an integral part of clothing.
But your bulk business
will be generated by the plus-sized clothes. Correct?
Not really! Our website shows
a 50:50 ratio
between the normal sizes and the plus sizes.
We do not promote ourselves as a plus-size brand.
- Okay. - We want to say that we're solving the problem of plus sized
but we are a size-inclusive brand. Because let's just face it,
maybe plus-sized people are embarrassed to buy clothes
from a plus-size brand.
Good point!
- It's a genuine problem. - That's true.
- Can you show us your website? - Sure!
Oh, nice!
Very nice!
It's New Age designing. Who did the design?
I did it.
- Fabulous! Amazing look. - Thank you!
[inspirational music]
What's the meaning of your logo?
In Sanskrit, 'angrakhaa' means protector of your body.
- Yes. - And it's the style of kurta
worn by Lord Krishna in mythological serials.
I think it's an ethnic-wear brand.
We were very clear from the beginning
that Angrakhaa could become global in future,
so people must come to know that it's an Indian brand.
What are your sales figures?
When we started before Covid,
we made sales worth Rs. 14 lakhs.
During Covid, we made sales worth Rs. 7 lakhs.
And in the last financial year, our sales were Rs. 1.16 crores.
- Wow! - Wonderful!
[chuckling]
- Well done! - Thank you!
How did you reach Rs. 1.16 crores from Rs. 7 lakhs magically?
When we started this business,
Asana brought her technical knowledge
and I utilised my knowledge of social media,
and my managerial knowledge.
- But we forgot about performance marketing. - Hmm!
That was a big factor.
We studied it during two years of Covid
through various small courses.
And then we applied our knowledge.
And these sales are only through Facebook ads.
These are only through your site. Don't you sell in the marketplace?
- Yes! We sell only through our website. - Only through the website.
Why didn't you explore the marketplaces?
Marketplaces are always in a rush. They want it the very next day.
- If the customer cancels the order, we bear the brunt. - That's true.
- So we don't have an inventory to dispatch it the next day. - Yes.
Once an order is placed, in how many days do you deliver the product?
Usually, we dispatch in 7-8 days.
But that's not a problem point for our customers till now.
But the problem is, when you go for customisation,
you can't manufacture on the fly.
We get only 27% of customisation requests.
Interesting!
And the rest are picked from the available sizes.
What is your sales run rate in the last 2-3 months?
In the month of May, we made sales worth Rs. 13 lakhs.
In June, we made sales worth Rs. 15 lakhs.
And in July, we made sales worth Rs. 24 lakhs.
Wow! Did you increase the marketing expenditure in July?
We increased the marketing expenses and explored new model collections.
We were dealing in solids till now. So we expanded into prints.
We sold it as an exclusive for a limited time period.
Customers could buy it immediately or else, it would be out of stock.
It was a small batch production and we sold out.
- Nice! - Good strategy.
How much did you spend on marketing to get a sale of Rs. 24 lakhs?
We spent Rs. 2.9 lakhs.
- That's it? - That's it!
Please explain the unit economics to us.
- Your cost of production and your selling price. - Yes!
Let's take one dress for example.
Its price is Rs. 2,900.
Its production cost is Rs. 900.
- It includes raw material, zip, stitching, and button. - Everything?
Yes! And the GST is extra.
What's the GST percentage?
- 12%! - 12%!
- Let's subtract Rs. 335. Right? - Rs. 1,700 remains.
How much are the logistics? Around Rs. 150?
- Rs. 100! - Rs. 100!
- What's the marketing cost for this? - Around Rs. 300.
After selling your products... For example, you sold it for Rs. 2,900.
So in the end, you saved Rs. 1,500. Correct?
- Rs. 1,200 is saved! - You are left with Rs. 1,200.
Yes!
What is your net profit?
Last year, our net profit was too less.
It was around 20%.
But in FY 22-23, our net profit
is already 35%.
You are earning around Rs. 1 crore through your business yearly
- which is commendable! Amazing! - Amazing!
I hope you know this.
We try to underplay it. But it's okay!
[laughing]
She's too humble.
What is your repeat order rate? How many customers reorder?
27% of customers are our repeat customers.
- Amazing! - I have made my decision.
Ms. Asana, I must say that you inspired me.
Thank you, Shark!
You're doing so well that you must rethink asking for investment.
[suspenseful music]
If you still want it, multiple categories will be a problem
because the scale expectation will be very high in that case.
But there's no guarantee that you would earn the same amount.
So I want to be out.
But I wish you the best of luck and you're doing very well.
- Thank you, Shark! - Thank you!
When an investor invests in your business,
they get the exit
from two to three avenues.
One is by raising more funds.
That will help us exit.
Or a bigger company could acquire you.
The third option is to go for an IPO.
You will use our stake in the IPO market to earn returns.
When we say that your business isn't investible,
it means that your business wouldn't grow enough
for us to get a visibility of these three to four options.
For this reason, I'm out.
- Thank you! - Thank you!
Asana and Vishakha, I'm also out.
I think your brand strategy is confusing.
If you had claimed to sell only plus size products,
I would have looked at it from one point of view.
But you said that you sell plus size products and other items too.
But all the best, guys!
- Thank you! - Thank you, Shark!
It's wonderful that you are so successful.
It's not easy to get a 30% margin.
But it's really tough to move further.
[tense music]
Unless you present your USP to your customer
and a clean image of your product...
I can't see the USP, so I'm out.
I want to make an offer.
Wow!
In your case, it's a digital marketing game.
You have expertise in fashion. My expertise is in digital marketing.
I think I can help you
in boosting the sales from current numbers to much higher numbers.
You asked Rs. 40 lakhs for 5% equity.
It's no use working for you for such a small equity.
So my offer is Rs. 40 lakhs for 20% equity.
Okay.
I estimated your valuation to be Rs. 2 crores.
We'd like to give a counteroffer.
Can we get the same amount for 15% equity?
I want 20% equity because there's a lot to be done. Believe me!
And I'll deliver value to you for sure.
Your business isn't investible as is.
- His work is to make your business investible. - Correct!
Right now, it's a good personal business.
- So that's your last offer? - That's my last offer.
Let's go!
- Alright. - It's a deal!
- Go for it. You should! - It's a deal.
So it's a done deal!
Awesome!
- Amazing! - Great, guys!
Now Amit will help you. May God protect you!
[laughing]
In a good way!
- You are an inspiration. Congratulations! - Thank you, sir!
- Thank you! - Thank you!
Keep rocking! And looking forward to working with you.
- Thank you so much! - Thanks!
- Thank you so much, Sharks! - Thank you!
Alright, guys!
- Yay! - Yay!
'Our group must be a part of history books.'
[vocalising]
'Build something that will last longer than all of us.'
[vocalising]
My name is Amit Jain.
I'm the co-founder and CEO of CarDekho.
And I started this company along with my brother Anurag.
I'm from Jaipur.
My dad worked in the Reserve Bank of India
and my grandfather was a government employee.
So we weren't affluent. We had limited amenities.
I saw my dad and my grandfather
take care of the family with limited means.
I learnt to stand by others through thick and thin.
I learnt to stay happy by making compromises.
Anurag's support made my journey enjoyable.
Initially, when the business started we faced numerous difficulties.
Because in the beginning, our office was in the garage.
There were cubicles on both sides.
Ten people could sit here. And there was a training room where I taught.
The IT industry hadn't evolved in Jaipur back then.
So we invited software developers from local companies.
After seeing our setup, they didn't give the interview.
So we didn't know what to do.
We decided
to visit the engineering colleges in and around Jaipur.
So we attracted the freshers.
And our team had only freshers.
Anurag and I trained them. We taught them coding through the night.
We trained them one-on-one.
The team of freshers lead our company now.
[triumphant music]
I don't act like a boss. All of us are like a family.
We work on the ground connect diligently.
We value the ability of a person.
I'm focused on impact. I strive to make a large impact.
Shark Tank gave me an opportunity
to listen to plenty of new ideas and support
the right founders.
I think every founder can teach us.
You would teach them and learn in the process.
'CarDekho Mall'
'Amit will be the best Shark.'
'I think he was born for this.'
I think Amit can bring out the best in any entrepreneur.
[shouting]
Keep running!
I don't like to fail.
I'll make a deal if I like it.
I'm here to make big deals. The big Shark is here.
[vocalising]
[ethereal music]
[epic music]
- Greetings, Sharks! - Greetings!
Diabetes isn't a new word for us.
If we check our surroundings,
we can meet many diabetic people.
And the remaining will be diagnosed with diabetes very soon.
Please don't say that. [chuckling]
What are you saying?
The main reason that leads to diabetes is our diet.
Although we are vegetarians,
we don't eat vegetables.
We just eat grains for the entire day.
So basically, we aren't vegetarians but 'grainitarians'.
But grains
increase the blood sugar level
because they have a high glycaemic load.
You must be wondering what glycaemic load means.
Glycaemic load is a parameter to measure
the increase in the blood sugar level
after eating a particular food item.
For example, wheat flour.
If we use 100 grams of wheat flour
to make four to five rotis,
its glycaemic load would be 50.
It increases the blood sugar level rapidly.
When the blood sugar level of a diabetic patient increases,
they have to take medicines
and frequent the doctors.
Some people get insulin injections to control their blood sugar levels.
Sharks, if it continues,
our country will soon be considered
the centre of diabetic people.
We must not let that happen.
To help us do that we are presenting Diabexy.
[upbeat music]
I'm Lokendra Tomar, founder and director of the company.
And my name is Nishu Tomar. We hail from Gurugram, Haryana.
NutroActive is the name of our company.
It consists of two types of products.
We have products related to weight loss.
They are sold under the NutroActive brand.
And we also have products that are sold under Diabexy for diabetic patie
Diabexy makes such food products
whose glycaemic load
is around 90% less than the normal products.
For instance, Diabexy Atta.
Its glycaemic load is just 7.
We make many food items, like namkeen, biscuits and sweets
which don't impact the blood sugar level
and are tasty too.
Sharks, we launched Diabexy two years ago.
Today, more than 3.5 lakh people use Diabexy products
and are trying to manage their diabetic condition.
Diabexy's mission
is to eradicate diabetes from India just like we eradicated polio.
Sharks, to fulfil our mission,
we ask for Rs. 1.5 crores
for 1% equity.
Whoa!
[coughing]
- Oh! - Wow!
I feel like a diabetic patient after hearing you.
[chuckling]
I need some water.
[laughing]
- Lokendra and Nishu Tomar. - Yes.
Welcome to Shark Tank season 2.
- Thank you, sir! - Thank you, sir!
You are working for a good cause.
As you said, diabetes
is a serious issue. Are you a doctor?
How do you have so much knowledge?
Actually, I aspired to be a doctor but I couldn't become one.
[laughing]
So I became a pharmacist.
I'm a pharmacist.
I have knowledge of medicines
and food items too.
So I combined food and pharma
to create a new industry
that gives therapeutic value to patients through food.
What did you do before this? Please tell us your background.
Actually, my family members
comprising my grandparents were farmers.
My dad was a government employee and he was posted in Chhattisgarh.
His job profile was
to teach agriculture to the tribes.
I used to stay with him in the jungle.
Our financial condition wasn't good
and we bought groceries from the nearby grocer on credit.
So we faced a financial crunch during those times.
But when we visited Delhi, we saw traffic lights on the roads
and people driving cars.
So there was a prosperity difference.
And I thought it was possible
to live a lavish life and own a car too.
Yes! [chuckling]
I wanted to achieve something in life.
So, I noticed that people who do business, usually have money.
And, they are prospering too.
So, I couldn't understand too much
but, I did understand, that if we do business
then we can attain prosperity.
But, I was confused about what business to do.
So, while working in a pharmaceutical company
I used to sell medicines.
And, I used to sell medicines for diabetes.
- Which company? - I worked for Sun Pharma.
So, when I performed well in sales, they gave me a book.
It was, ‘How to win friends and influence people’.
- Oh! - Ah! It’s a best seller.
So, when I read that book
I realised that these lessons weren’t taught in school.
We may want to achieve something in life
but we only learn theory in school.
Nobody teaches personal development.
Well said.
So I felt that if I want to be successful in life,
books can be of great help to me.
So, I began to read several books.
I mean, I used to go through three books in a week.
I have read over a thousand books.
- Oh wow! - Very good!
Once I started reading,
I realised that we can cure several diseases with our food intake.
We don’t need drugs.
Then, the keto diet became very popular.
So, madam managed all the responsibility.
And, she learned digital marketing.
- Wow! - She learned to build a website.
She learned photoshop, and everything else.
Amazing!
Then, we launched keto diet products
and they started selling like hot cakes on Amazon!
[laughter]
How much did you sell?
We started in 2016.
Our annual sales in 2016-2017 were 65 lakh rupees.
Very nice.
After that, we reached 1.5 crore rupees.
- The following year, we reached 3.25 crore rupees. - Wow!
The following year, we touched 5.25 crore rupees.
Then, it was 8.25 crore rupees.
And, last year, we made around 13 crore rupees.
Woah!
And, in 2021-2022?
It is 12.8 crores, to be precise.
How much was your profit?
We take a salary of one crore rupees.
- For both of you? - Yes.
So, after your salary, what was the profit?
We made a profit of 1.5 crore rupees last year.
After 1 crore in salary?
After 1 crore in salary.
- That becomes 2.5 crore rupees? - Yes.
- Do you manufacture these products yourself? - Yes.
And, what is your product margin?
Product margin, after deducting the manufacturing cost.
One-third of the MRP at which a product sells
is its manufacturing cost.
- Okay. - One-third is the distribution cost
- including the Amazon fees. - Okay.
And, the remaining one-third includes taxes and profit.
How many of your customers are repeat customers?
We have 70% repeat customers on our own website.
Well done!
So, how much are the sales of weight loss products
and of diabetes products, from the 13 crores?
Last year, it was fifty-fifty.
The year before that, we did sales worth 8.5 crores.
From that, 20% was Diabexy.
And, this year, 70% is Diabexy.
If we look at our current sales,
we are making around 1.1 crores per month.
So, your other business is on a decline and this one is rising.
Yes, because the keto diet is slowly fading.
You are earning 13 crores from how many SKUs?
We have a total of 16 Diabexy products right now.
And, the number of SKUs is higher because of varying pack sizes.
What sells the most?
The flour is the highest selling. 40% of sales are from Diabexy flour.
Let’s taste a roti made with it. I’ll start eating this daily.
[music playing]
- This is roti. And, these are our almond cookies. - Alright.
- Okay. - This is cashew barfi, coconut barfi
and, this is a breakfast bagel.
These won’t cause a rise in weight or blood sugar.
[suspenseful music playing]
Not bad.
It tastes just like a normal roti.
Nice.
The roti is great.
Very nice.
So, this is roti.
- What is this? - This is a barfi.
Even though it is sweet, it won’t raise blood sugar.
The product that we use for sweetness is called oligofructose.
It works as a fibre. So, it tastes sweet upon eating
and is easily excreted out of the body.
[laughter]
The body does not absorb it, so it won’t influence blood sugar.
It tastes nice and normal.
It does not taste odd or different.
I have written a book too. ’New theory of diabetes’.
In this, I have explained that the thought process is the issue.
We feel that once we are afflicted by diabetes,
it is irreversible. But, that’s not true.
Diabetes can be reversed?
Of course, it can!
Like a fever, diabetes can be cured too.
What are your reviews or ratings
on Amazon, or other selling platforms?
What are your ratings?
Ratings are between 3.5 to 4. It goes higher too.
Isn’t 3.5 a little low?
But, the Diabexy flour has a rating of 4.
Which product is at 3.5?
- Maybe some cookies. - Maybe?
Do you know?
Actually, I don’t remember each product’s ratings. Sorry.
Even today, I read the feedback from all my customers.
If ratings are 3.5 to 4, people must also be giving lower ratings.
What can their reason be? Have you spoken to those customers?
Yes, their reasons are that they didn’t like the flour.
They didn’t like the taste. That’s the most common one.
But, all of you liked it, didn’t you?
[laughter]
We liked it. [laughter]
- Is there anyone else in your team? - No.
The two of you are running the business?
- Yes. - You have no other employees?
- We do have other employees. - How many employees?
40 employees.
So, what’s your vision for this company? After five years,
how big do you envision this company and what more will it be doing?
After five years, we are expecting
that we will make a turnover of more than 500 crore rupees.
And, we’re introducing new products. Like, flour is a great product.
We have also produced rice for diabetes.
How much costlier is this flour than normal flour?
This costs around 500 rupees per kilogram.
Very few people in India will pay so much money for your flour.
Okay? And then, you won’t be the only company.
Other companies will arise too.
- It will get copied too. - Yes, exactly!
There’s no patented formulation.
We face competition whether the business grows or not.
So we think that we possess the competence
as we started this business.
We know that we can innovate in tough situations.
Because we know the nitty-gritty of the business as we are the founders.
Secondly, we are open to collaboration with other people.
Instead of competing, we'd like to collaborate.
We'll adapt according to the situation.
Let me tell you my decision.
Your efforts are laudable because diabetes
makes people suffer immensely. Every day,
they pay a heavy price.
If your products are beneficial for people,
you are doing great work as you are saving lives.
But I feel you are choosing the wrong path
if you are looking for investment. You are the centre of your business.
Your business runs on your knowledge.
Your business runs because of Ms. Nishu's execution.
And I think you may bank on it and grow your business.
For this reason, I'm out. I feel you should keep the company to yourself.
You shouldn't involve anyone from outside. Good luck to you!
We have an offer. Look!
All four of us... Aman is also joining us after we convinced him.
We'll explain the valuation rationale also to you.
We assume that the sale of your growing business, Diabexy,
is Rs. 10 crores.
And let's assume its annual EBITDA to be Rs. 1 crore.
When we multiplied EBITDA by seven, we got around 7-8 crores.
Plus there is a value addition from all four of us.
So we're giving you the combined equity offer by the four experts.
Rs. 1.5 crores for 5% equity for each Shark.
So, Mr. Lokendra Tomar, you're left with only one offer.
Rs. 1.5 crores for 20% equity for the four Sharks.
[suspenseful music]
I think the valuation
doesn't meet our expectations.
So I'm sorry.
I'm open to a deal for a valuation of Rs. 100 crores.
We can think about it.
Otherwise, I'll improve myself to reach
that level and then I'll come back to you again.
[dramatic music]
- Basically, you want to say that you want to give 1.5% equity. - Yes!
- Well done, Mr. Lokendra Tomar. - Thank you, sir!
- If you allow me... - Sure! Please give us your book.
[ethereal music]
I was ready to give Rs. 15 crores.
Can you please sign it for me?
Did you come here for investment or marketing?
I aimed for both things
- but I completed one task at least. - Wonderful!
- Thank you very much! All the best! Good luck! - Thank you!
- Thank you! - Proud of you guys.
'Peyush, Vidit from Indore wants to ask a question'
'in the Shark Xperience segment.'
'Is it important to do MBA to become'
'a successful entrepreneur?'
Hi, Vidit! It's not important to pursue an MBA
to become a successful entrepreneur.
You may take my example. I don't have an MBA degree.
And yet I have been an entrepreneur for the last 12 years.
Um, you get networking in an MBA school
and they explain certain business case studies.
Over a period, you may learn these things by making mistakes
while doing your business.
So doing an MBA is an added advantage but it isn't necessary.