Greetings, my name is Rahul Dua.
Welcome to Shark Tank season 2.
Co-presented by Acko, payments partner Cashfree payments.
Ideas partner, Smallcase.
Co-powered by PokerBaazi.
Money partner 5 Money.
Online food partner, Eatfit.
Eyewear partner, Lenskart.
Are you ready?
Because the pitchers, Sharks and the hosts are all ready.
[music playing]
[drums beating]
Hi, Sharks.
There's a saying in the South.
'Without strong filter coffee and a newspaper, '
'the start to your day is incomplete.'
Oh, my!
I had a similar situation in my house.
Picture this. It's 5 a.m.
[birds chirping]
Soft Carnatic music is playing on the radio.
[radio tuning]
Nice.
My grandmother is in the kitchen
and she is making our very own authentic, flavourful,
strong and aromatic filter coffee.
[coffee brews]
We'd wake up to this aroma every morning and start our day.
[pleasant music playing]
My grandfather had a weird habit.
He would fill up a big flask with filter coffee
and enjoy it till breakfast was done.
[pleasant music playing]
And the same practice resumes at 4 p.m. in the evening,
but this time,
with grandma's wonderfully flavourful homemade snacks.
I am G D Prasad.
I'm Yashas Alur.
And I am Rahul Bajaj.
And we are VS Mani & Co. From Nammuru, Bengaluru.
[music playing]
There are many brands in the market selling coffee and snacks.
But for South Indian filter coffee and snacks,
there's no option but local restaurants and brands.
VS Mani & Co. is here to change that.
Our product range offers South Indian filter coffee
and snacks made of traditional party recipes.
Like murukku, banana chips, peanut chikki and podis.
Our products are available on our website, Amazon,
quick commerce as well as supermarkets.
Our vision is to make VS Mani & Co. An internationally recognised
authentic South Indian coffee and snacks brand.
Sharks, our ask is Rs. 60 lakhs in exchange for 1.5% of our company.
Sharks, how about some coffee?
Can we sample some VS Mani & Co. delicacies?
- Yes, sure. - Lovely.
- Yes, please. - Please.
While Rahul and Yashas are preparing the samples,
let me explain our hero product to you.
I had mentioned that
- she was making aromatic filter coffee in the kitchen. - Hmm.
This bottle contains that very coffee decoction.
In the South, we love our chicory.
And that chicory blend is what brings
the authentic South Indian filter coffee flavour.
- No coffee? - It's coming.
- Won't you serve us coffee? - It's coming.
- Filter coffee is my favourite. - Yes.
- I can taste and tell you... - Yes.
We are actually sampling the snacks and Rahul's making the coffee.
- Oh, he's making it! Nice. - Yes.
Also, tell us what a decoction is.
We grind the beans for the filter coffee
and put them in a container.
Then add hot water to the container to percolate it down.
And the filter coffee decoction is ready.
It's the extract of the filter coffee.
We add milk and sugar and enjoy it.
[pleasant music playing]
Oh! This is really good.
- Thank you so much. - Very nice.
- Excellent! It's outstanding. - Thank you so much.
Let's talk about the snacks.
The chips are thin and tasty. They're special.
- Thank you so much. - It's fantastic.
The outfit you're wearing is a lungi, right?
- No, it's 'veshti'. - It's called 'veshti' in Tamil.
Lungi is the chequered one.
Do you go to the office in this?
- No, we go in shorts. - [unanimous laughter]
You wear shorts in the office!
[music playing]
Before we move on, I have something to say.
I'm an investor in this company.
Oh!
But I've never met them.
- I've spoken to you, right? - Yes.
Anupam, it means you don't meet the owners after investing.
- I invest before meeting them! - [Sharks laugh]
- How much did you invest? - [Sharks laugh]
- What was the valuation? - Yes.
[unanimous laugh]
- I don't want to influence them. - You already did.
- You did. - But it'll be their loss.
As well as the audience's.
- The number one Shark has to leave. - Oh, my!
- Thank you, Anupam. Thank you. - Alright, guys.
- We'll miss you, bro. - We'll get to speak today!
[Sharks laugh]
- Alright. - Welcome, sir.
- Welcome. - It will be fun to watch from outside.
- This is a treat I've been looking forward to. - Come, sir.
Let's start with how you met and how this idea occurred to you.
We met at work
at Dentsu Webchutney, India's leading creative agency.
Very nice.
We worked on numerous brands day in and day out.
That thought did come
that we weren't working on a brand for our own selves.
We gravitated toward what we knew best.
[euphoric music playing]
If we're in the South,
any shop will have some condiments, snacks or coffee.
But even in Mumbai...
We've been here for three days
- and we didn't get good filter coffee anywhere. - True.
- You don't get it in Delhi either. - Yes.
So, we thought let's take this and pass it on to the world
because our diaspora is well distributed.
They miss this traditional flavour.
So, we started VS Mani & Co. In 2020.
You are a Tamilian, but they both are from different parts of India.
- 'Yes.' - 'So how did your love for ethnic food come about?'
We were both born and brought up in Bengaluru.
- So, I'm more of a South Indian that way. - Okay.
What is each one's qualification?
- I've done Masters in Marketing from London. - Okay.
I've done Masters in Advertising and Marketing from Coventry University.
I've studied Economics and Finance from Australian National University.
What is the equity split amongst all three?
I have 45%.
They hold 14% each.
- What about the rest? - 21% is with angel investors.
With Anupam.
- No... - [unanimous laughter]
- 'Not entirely. - You took a big chunk.'
'Are you listening, Anupam?'
And designations?
I operate as the CEO.
- Yashas operates as the head of growth. - Okay.
- Rahul oversees the entire operations. - Oh.
What categories do you currently have?
Our focus is on coffee and snacks.
How is the business divided between the two?
Coffee brings in approximately 55 to 60% of the revenue.
40% comes from snacks.
We launched snacks in May.
Till the time we actually took the funds,
we never had the decoction.
We only had instant coffee powder and that was the hero product.
We launched it on 15 August 2022 and now sell 10,000 units of it.
I think we sell even more.
So, we sold about 19,000 units last month
simply from that one product.
What have your sales been from the day you started?
We started on 29 June 2020.
All of that financial year, our total turnover was Rs. 15 lakhs.
Okay.
In 2021-22, we did Rs. 1.2 crores.
2022 till now...
'We have crossed almost Rs. 2 crores.'
Our target this year is Rs. 7.5 crores.
That's what we're working towards.
Our revenue was Rs. 63 lakhs in the last month, September 2022.
Okay. Who are your customers?
What's your differentiation?
Which market segment are you targeting
price-wise and customer profile-wise?
Our customers are from Mumbai, Pune, Bengaluru,
Hyderabad and Delhi NCR. In this order.
Mumbai is number one!
- Mumbai is number one. - I see.
Why isn't the penetration higher in the South
if the taste is authentic?
There are many options available in the South, sir.
You'll find a few options in your own home.
- But, GD, other than Mumbai, in the rest of India... - Yes?
Especially in the North, has the adoption of the taste gone well?
Yes, it is in Delhi NCR for example.
- What is Delhi's contribution? - 16%.
Okay.
- Do you have any branding samples we can check? - I'll show them.
[suspenseful music playing]
This bottle is 220 ml.
We sell 220 ml for Rs. 145.
How many cups of coffee does it make?
Approximately you can make about 10 to 12 cups of coffee.
- Let's assume Rs. 15 a cup. - Yes.
Where does its price stand compared to normal filter coffee?
Is this a premium product?
On average, our pricing is 25 to 30% higher than the competition.
We have made a price correction as far as the decoction is concerned.
Our focus has now moved from online to offline.
- Is anyone going to make an offer? - Yes, sir.
- Since I've invested, they're bound to get offers. - True.
How much are you making?
Before raising the funds, we were making a small profit.
Something in the region of a couple of lakhs.
Right now, our burn is roughly Rs. 20 to 25 lakhs every month.
[gasps]
- Wow! - At Rs. 60 lakhs, 25 lakhs is the burn.
Yes.
Oh! That's a lot!
- You've valued your company at Rs. 40 crores. - Yes.
If you look at FY 22 sales, it's Rs. 1.2 crores.
Rs. 25 lakhs is your current cash burn.
Rs. 1.2 crores is your prior year's sales.
How can you ask for a valuation of Rs. 40 crores?
How much did you raise in your last round?
When was it and at what valuation?
The discussions on our previous fundraise began last year
around September or November.
At the time, we fixed our valuation at Rs. 15 crores pre-money.
The 21% that we gave up,
all the investors came on board on that valuation.
This round concluded in March 2022.
So, we took about Rs. 3.96 crores in total
and we got the entire funds in June 2022.
Could you quickly tell me the expenses?
Rs. 25 lakhs in product cost.
Then another Rs. 33 lakhs in marketing.
That's Rs. 58 lakhs.
Then we have Rs. 5 lakhs in salaries.
Rs. 7.5 lakhs in shipping.
And the rest is just admin expenses.
[sighs]
- Too expensive. - Overvalued.
There is something that's not right.
[intense music playing]
When we were advertising before this,
our budget was roughly in the ratio of 1:3.
As in?
Ten rupees of advertising gave us thirty rupees of revenue on Shopify.
In April and May 2022, when we saw that this ratio was dropping,
we started conversations for offline retail as well.
So, online is over! You won't focus on it anymore.
No, we are still focusing on it.
- 85% of our revenue comes from online. - Right.
But we needed to act early.
So, if I access Amazon, Flipkart, Big Basket or other sites
and look up filter coffee, why don't I see your brand?
Essentially, we just started in June 2022.
How do you think your marketing is faring? Is it doing well?
If you ask anyone if they've heard about us,
they'll say they've seen our ad.
I have not.
Me neither.
I see the challenge here as shaping the business, right?
- Your roots stem from marketing. - Correct.
And you're still engrossed in marketing.
- But eventually, you have to sell the product. - Correct.
Marketing cannot be the hero of the company.
It has to be the product.
Today, I want to be out because I think you're overthinking
and you need to get back on track.
[sweeping music]
What is your ASP? And what is the average order value?
The average order value is Rs. 550.
Around 10,000 customers have tried your products.
I came to know after you shared the figures.
Yes!
How many are the repeat customers?
Coffee has 30% of repeat customers.
So you have 3,000 repeat customers
- and you get 7,000 customers through marketing. - Yes.
Normally, repeat numbers are visible through the number of orders.
If you aren't getting orders, there is some issue with your product.
[tense music]
Normally, I invest on the basis of founders and your cause was nice.
If a rare product is exported out of India,
I invest in it definitely.
But in this case, I don't see the rarity of the product.
I think something backfired in your business.
You got money too soon.
You successfully raised Rs. 3.9 crores till now.
I think you failed to innovate because you already had money.
[dramatic music]
I want to be out because of these reasons but it was nice meeting you.
- Good luck! - Thanks, Amit!
Now I feel I shouldn't have left the Tank.
I would have sat there
and prompted him to share
his sales figures for the next year.
- Not to influence them but maybe they forgot in nervousness. - Yes!
- Please share with us. - You have to seek the conversation.
You feel that your business model isn't right.
'You already have nice investors. Anupam is a good investor.'
'We learn from him.'
'Why didn't you meet him to learn more about the business?'
[sweeping music]
We keep talking on a regular basis.
Anupam feels that we are burning a lot.
The decision to say
marketplaces... And marketplaces include
quick commerce and quick grocery segments.
They'll increase our visibility.
More people will discover us.
And nowadays, everybody wants everything instantly.
So our focus will primarily be there
and in a market like Bengaluru and Mumbai, retail.
Boss, I'm out too.
[sweeping music]
You spoke less about snacks
and your whole pitch was more about coffee.
That's a good thing.
But I want you to choose some channels and promote coffee.
That's my suggestion to you guys.
I'll give you an offer
for my love of filter coffee.
[upbeat music]
Thank you!
I actually love filter coffee and I loved your story.
Especially the fact that even though you aren't South Indian,
you have a love for South Indian food.
Take me for example. Though I'm a Gujarati,
as I was born and brought up in Maharashtra,
I consider myself more of a Maharashtrian.
So I can relate to that.
- But anyway, I think that your cash burn is too high. - Yes! We agree.
So I'll give you a valuation on the previous fund you raised.
I find that high too. Rs. 15 crores for Rs. 1.2 crores sale.
Let me be very honest.
But we must respect our prior round.
So I'll give you Rs. 15 lakhs for 1% equity
and Rs. 45 lakhs debt at a 10% interest rate.
- Can we have a minute, please? - Sure!
[suspenseful music]
I hope you know that Anupam is their investor.
[chuckling]
Why don't we just take the debt?
Big rate?
Sir, what do you think? Should they accept it?
They won't accept.
- They won't? - Because the valuation is lowered.
So anti-dilution rights will be applicable
and they will have to give more shares to all the shareholders.
I'm talking about the existing shareholders.
[thrilling music]
Namita, thank you for your offer.
I agree that our business is burning money.
But I think we need to consider
a valuation that acknowledges the journey we have been on.
So even if you come closer to the post-money valuation...
Which is Rs. 19 lakhs for 1% equity.
- I think it's fair. - It's a fair ask.
And the rest is debt. That will be great.
[thrilling music]
Let's do it!
- Wow! You have got a deal! - Let's do it!
Let's do it for the love of South India
and for the love of filter coffee!
- Thank you so much! - Very nice!
- But now, let's get the sales. - Yes!
- We hope we'll do you guys proud too. - You will!
- And let's make some profit. - Yes! For sure!
- Profit is most important. - Yes.
Alright! Wonderful!
The Super Shark is also back!
Hey, go away!
[laughing]
- Why are you here? You keep poking your nose. - Super Shark is back!
[laughing]
Please don't leave. I want to give you some feedback.
Namita said something in the beginning
that almost destroyed your whole pitch.
And in her favour...
In the beginning, she said,
"You are asking for multiples for sales of Rs. 1.25 crores."
"How could the valuation be so high?"
And you couldn't counter that.
If you responded, "Namita, it's irrelevant because the next year
our sale would be worth Rs. 25 crores."
Right?
The narrative would have changed.
Guys, you got it wrong.
You should have pitched,
"We'll make the world's best filter coffee company."
- You failed to explain your vision. - You couldn't tell us your vision.
You should have confessed in the beginning,
"We know our burn is high right now.
We aren't strong on Instagram.
We spent money on branding
but it'll soon change.
Our business margin is good."
Then you would have bagged Rs. 30 crores and four deals.
You have to sell the future!
Congratulations!
You got a great deal and you've got a great Shark! Don't listen to them.
Thanks!
They'll have to listen to me.
They don't have a choice.
And they'll have to listen to Namita too.
[chuckling]
'Shark Tank India season 2'
'will introduce entrepreneurs'
'who are unbelievable and unique.'
- '- Are you ready? - I was born ready!'
'Whoa!'
'Introducing Neuphony.'
'It's a smartwatch for your brain.'
'India will change completely.'
'Our company is the biggest consumer 3D building brand in India.'
'Wow!'
'Tipayi is a wooden balance bike'
'that doesn't have paddles and brakes intentionally.'
'Broomees is a tech-enabled platform'
'that helps you in booking a home help, '
'cook, babysitter or an all-rounder.'
'Wow!'
'Geeani is India's cost-effective, efficient'
'and compact electric tractor.'
'They could be from a village or the city, '
'20 years old or 70 years old, '
'perseverance, labour'
'and their passion is unbreakable.'
'My name is Pabiben.'
'I'm from Bhadroi village in Kutch, Gujarat.'
'Amazing!'
'I'm 18 years old.'
'They are the promising faces of new India.'
'Many people said, '
'people retire at 60 years but you are 85 years old.'
'I answered, '
'I have deleted the word 'retirement' from my dictionary.'
'That's good.'
'Healthcare, toys, lounge-wear, EV!'
'There's no industry'
'which isn't a part of this season.'
[ambulance sirens blaring]
'MeduLance provides'
'the ambulance within 20 minutes on an average'
'with its helpline and back-end technology.'
'You chose a good cause.'
'EaS-E is your everyday car.'
'It's India's first two-seater, fully electric, smart micro car.'
'It's laudable. Your work is revolutionary.'
'PadCare has introduced a menstrual hygiene management system'
'to help women dispose of pads with dignity.'
'I'm elated to see such start-ups.'
'I don't think anyone expected that a 26-year-old boy'
'will move the Sharks.'
'India is changing for real.'
- '- Hats off to you! - Do you want 1, 1.25,'
'1.5, 2 or 2.5?'
'Please tell us the valuation you want.'
'Multiple cities, multiple entrepreneurs, '
'multiple businesses'
'and one show!'
'Shark Tank India!'
- '- Woo-hoo! - Woo-hoo!'
If your business idea has potential,
here's your last chance to be on Shark Tank.
Quickly download or update the Sony Liv app
and be a part of Happilo presents Gateway to Shark Tank.
I recommend you send the entry today.
[ethereal music]
Sharks, just imagine
that you dress up and head to your office on your bike.
But suddenly it rains.
[thunder rumbling]
And you are compelled to stop the bike on the roadside
and wait for the rain to stop.
So you reach the office late
and get scolded by your boss.
Now you needn't worry about it.
If Sepal is with you, you needn't be stressed.
[upbeat music]
Sharks, I'm Vidhey Addepally from Hyderabad.
And I'm Kashyap from Hyderabad.
We are Sepal's co-founders.
Sepal is the world's first motorcycle canopy.
People can easily fix it on their motorcycles.
The canopy on top and the windscreen in the front
protect the rider and his family
from direct sunlight, rain,
cool breeze and even
dust and pollutants.
It's so strong
that you may ride at a speed of 100 km/hr after fixing it.
Even if you travel through a rough road,
it remains fixed.
- Your bike becomes smart as soon as you fix Sepal to it. - Wow!
You may use the app and the buttons provided with it
to do GPS navigation, call-answering, music streaming
and other such functionalities
while riding the bike.
Currently, Sepal is used by customers in 25 states in India.
We have shipped Sepal to many foreign countries
like the UK, the US, the Middle East and African countries.
Owing to its demand, we have decided to start
a mass manufacturing unit of Sepal.
We'll launch a scooter version of Sepal in future.
Our vision is to change the bike riding experience
in India as well as the world.
Today, our ask is Rs. 50 lakhs for 1% equity in our company.
[coughing]
And, Sharks, enjoy bike riding moments with Sepal.
So, Vidhey and Kashyap.
- Welcome to Shark Tank! - Thank you, sir!
Nobody thought about it till now in the whole world!
- No! - I mean nobody gave engineered solutions.
Although there are quick-fix solutions.
I have seen this in China.
We saw it too. It's like a tent
which can be fixed to the front and the rear.
You can't ride the bike above 30 km/hr after fixing it.
How come you thought about it?
Actually, I completed civil engineering
at IIT Bombay with honours in structural engineering.
I got admission to Stanford University
after completing my engineering.
During my final semester, I was free
and whiling away time.
So I decided to invent something using my engineering skills.
I couldn't use my bicycle on the college campus
because Mumbai experiences frequent rains. In many instances,
I had to attend classes when I was drenched to the skin.
I went to the mechanical lab and made a contraption for my bicycle.
Then I thought of extending the same solution to the two-wheelers
to solve a major problem in India.
So I decided to miss the chance at Stanford University.
Which year did you decide?
- The year 2016-17. - Admission to Stanford University
is too difficult.
But still, you missed the chance to get admission to Stanford.
I was so strongly connected to this problem back then
that I thought I could get admission to some other university.
There are many options.
"If I don't take a leap and use my engineering knowledge now,
I'd regret it later. I want to make an attempt come what may."
- Did your parents agree? - I had to convince my parents.
Usually, people don't make such decisions at your age.
- Please tell me how you two are related. - We are brothers.
I'm a design student. I studied architecture in Pune.
And I completed my Master's degree in the UK in parametric design.
Then I came to Hyderabad and established our design studio.
When I came across this problem,
I was connected to it.
We felt that the combination
of a designer and an engineer is the best.
But, Vidhey, it's... I'm sorry
but I'm confused after seeing it.
During heavy rains and because of strong winds
the rain can drench us from the sides
and it can't be warded off because it's not completely covered.
So what is it solving?
[suspenseful music]
It doesn't seem like it but it actually solves the problem.
I can explain.
I'd like to take a closer look.
Please come.
[upbeat music playing]
- What if it starts raining? - Yes.
The water will seep in from here.
Yes. We're aware of this.
The engineering is in place and we tested it out for two years.
If you get into the technical bit,
the angle of incidence of rain falling is 30 degrees.
And this canopy
will give you complete protection for the hips in any degree of rain.
And for when it rains heavily,
we've developed an add-on to tackle it.
- What is this? - It's called thigh flaps.
- Thigh flaps. - Yes, open it in this manner.
This is not needed if you're wearing a raincoat.
People don't use raincoats.
If you look at the practicality, you need to stop under shade,
get off the bike, take out the raincoat and then wear it.
But this stays on the bike itself.
And you can see how well it protects.
Could you connect the phone?
- You said the phone connects to an app. - Yes.
You're going to absolutely love the smart system.
There's a joystick on the left and two buttons on the right.
You can use the mobile phone with just your balance.
- Did you build the device or import it? - We built it.
We've built it from scratch.
What about customer utility?
Your phone's screen serves as a heads-up display
just like the ones you have in cars.
So, your phone serves that purpose.
Okay.
Is this not too risky?
- Suppose I focus on the phone while riding. - Hmm.
- What if I play a video? - Hmm.
- Video... - There's no option to play videos.
All the features are safe.
If you're riding at a high speed, the phone will be disabled.
- How much speed are we talking about? - Over 30 kmph.
So, this isn't connected to the bike.
- Rather, it merely taps into the phone's features. - Right.
- Exactly. - Okay.
- Is the app free along with Sepal? - Yes.
You must have noticed
that to launch a new product in the market,
its perception and adoption must be kept simple.
Sepal is extremely easy to install. Anyone can do it.
It comes in three parts.
The first main part is the base frame.
It gets affixed on the gas tank of the bike using industrial straps.
Once it is affixed, it won't fall off no matter what.
The materials we've used are of aerospace grade.
They are lightweight and extremely strong.
The windshield is made of polycarbonate
which is the strongest type of plastic there is.
The speciality of the canopy is
that we've used proprietary composite material.
Tell me its price.
We priced it at Rs. 10,000 at the time of launch.
- Rs. 10,000! - Absolutely.
That's expensive.
We've kept the price a bit high
because we have more orders and are short on production.
We could sell it for Rs. 5000.
Tell me about your sales.
We have sold 1000 units so far.
It was launched just seven months ago.
- Just seven months. - Yes.
What were last month's sales?
We sold around 160 units last month.
160 units only.
That's not a high number of sales.
The problem is our production is limited.
We cannot increase our production.
What were the numbers for the last three months?
Rs. 10 lakhs in June, Rs. 12 lakhs in July
and Rs. 13 lakhs in August.
- Okay. - So, Rs. 35 lakhs in the last quarter.
Got it, thank you.
Tell us your margin, gross margin and your net profit.
Our COGS is Rs. 5000.
Our gross margin is 37%.
Going forward, with sales of 1000 units per month,
our net margin should come to 18 to 20%.
I have a question. I used to ride a bike.
I owned the Yamaha RX100.
- I used to bend and ride to get a higher speed. - Absolutely.
Doesn't this eliminate the speed
and the control on the bike you need for navigation, and the feeling?
Do you want to ride the bike just for the feeling?
- You can detach it and put it in the box. - Then this isn't for you.
It's more useful for people who use bikes
for daily commutes and to drop their kids to school.
Most people cannot afford such an expensive device.
Your target audience doesn't seem vast either.
Most bikes, around 18 million, are used in rural areas.
Those people will think twice before buying such a costly device.
So, I am out.
- Thank you. - Absolutely.
The product you're making for the common people in India
and the value you're giving in return,
that is protecting against sun and wind
with a few features on the app,
doesn't justify the price.
And for that reason,
I'm not getting excited about being part of the journey.
I wish you the best.
Thank you.
Look, it's quite obvious you both possess complementary skills.
But I believe there are too many features in question.
I don't quite get what problem you're out to solve.
And I believe OEMS, that is bike manufacturers,
will soon start preinstalling the features you've incorporated.
I don't think you can capture this market.
So, here's my advice to you.
You should start looking at motor scooters.
People use them for their profession.
Their work cannot stop even during the rain.
You could make a business there
with people like Rapido, Swiggy and Zomato.
Please think about it.
I'm out. Wish you the best.
- Thank you. - Thank you, sir.
First, I think the style quotient is missing here.
Second, Indians are very good at finding workarounds.
If I see this design,
I can have it made by someone else for Rs. 500.
I don't quite get the business.
For that reason, I'm out.
Thank you.
- Four Sharks are out, I am left. - Yes.
- I am interested. - Okay, sir.
I have a few questions. Is this patented?
- Absolutely. - We've been granted a patent.
The patent is granted.
Why do you need funds?
We recently closed a round.
We're scaling production with that investment.
How much did you raise?
Around Rs. 2.2 crores.
At what valuation?
At Rs. 22.5 crores pre-money valuation.
Where do you see the business in 5 to 10 years? What's your vision?
If I talk about 5 years,
we know this is hardware and will reach a saturation point.
Our key focus is IoT platforms.
We will make a foray into data analytics.
The next time you go to fill fuel,
you'll get your fuel expense report on your bike.
If you ride in groups,
you can share your location with everybody.
You can see who's ahead of you or behind you on your phone itself.
I will make you an offer.
[upbeat music playing]
I genuinely find you impressive entrepreneurs.
Thank you.
But it's in the early stages and it's a lot of work.
Some entrepreneurs make you feel
that you can learn something from them.
You are one of those entrepreneurs.
Your design innovation is terrific.
I am interested to learn about it.
Thank you.
I genuinely believe that your play on tech here
has a huge scope.
- Absolutely. - Absolutely.
In addition to rain protection.
My offer is Rs. 50 lakhs for 2% equity.
Understood.
Which is similar to the last round's valuation.
After the last offer,
we have received considerable bulk orders the value of which...
Look. When you raise big rounds
for 5 to 10 million dollars is when the company reprices.
You're on Shark Tank.
I'm sure you're not here for the money.
You already have Rs. 2.2 crores.
If you think I can add value
- whether it be in manufacturing, price reduction... - Absolutely.
Or be it technology, team development,
or taking this global...
Technology is ruled out.
It is there.
I think what you've done with the user interface
is great work.
- And it's just started, right? - Long way to go.
I'm betting on the entrepreneurs.
That falls under EV apps.
It's my decision and I've already made up my mind.
He sees scope for technology whereas we don't.
Tell us what you want to do.
This seems non-negotiable to me.
[intense music playing]
Peyush, we accept the offer.
And I tell you, there's so much we missed out.
You'll love the product that we have in planning.
But you know, somewhere you have to bet on the entrepreneur.
- Yes. - To leave a Stanford admission and do this.
- Thank you, sir. - Thank you.
- Absolutely. - Happy to have you on board.
Thank you, same here. I'm happy to be a part of this
and it's an early start.
- Thank you. - Yes.
Give him a bike as his share.
As well as the canopy.
- I... - Silence all of them. They don't know...
Sir, we have big plans.
- We'll show them to you. - Very good. Best of luck.
- Thank you. - All the best guys.
- Thank you, sir. - Thank you.
[euphoric music playing]
We are just speechless!
Isn't this a small market, Peyush?
What you build today
will be very different from what you build tomorrow.
I saw no technology whatsoever. UI is not equal to technology.
I saw nothing!
The market is shifting to EV now.
Every EV manufacturer has his own app.
All their features are on the app.
Look, I understand.
Do you think
the whole country will switch to EV in the next 5 to 10 years?
There has been a 50% penetration in three years.
Look, the product is in the early stage.
People were questioning the product.
I believed the category was important.
Most importantly, I found the founders to be very humble.
They were consumer-focused.
They possessed customer empathy and were detail oriented.
They were on top of things. The combo was very good.
I found them risk-taking and positive.
One shouldn't let such founders slip away.
[ethereal music]
- Hello, Sharks! - Hello!
Today I want to tell a story to all of you.
It's Kanhaiya's story.
He lived happily with his wife and two children in Chennai.
But his job took his life.
The septic tanks
and sewer pipelines he cleaned manually
led to his death after inhaling poisonous gas.
[gloomy music]
The Indian government banned
manual scavenging in 2013.
But it's still in practice illegally.
Sharks, approximately 330 people died
between 2017 and 2021 because of this problem.
I want to share another serious problem ailing our cities.
It's the pipeline
that supplies water to your homes.
You may see how unhygienic it is.
Ah! Eww!
This pipeline was 15 cm wide
but now it's less than 9 cm.
[whimsical music]
Sharks, it happens
because the inspection of pipelines or cleaning of the septic tanks
and sewer pipelines is done in an illegal manner manually.
[sweeping music]
Ouch!
To bring this problem to the forefront and solve it,
we introduced Solinas.
Greetings, Sharks! I'm Divanshu Kumar.
- I'm Bhavesh Narayani. - I'm Moinak Banerjee.
And I'm Linda.
[ethereal music]
We have come from Chennai.
Solinas Integrity
is an end-to-end water sanitation
and asset management company
that inspects and cleans critical public assets
like pipelines, manholes, septic tanks
and other such things
with the help of our products.
Our first product HomoSEP
is a septic tank cleaning robot.
It's beneficial
as it doesn't require a cleaner to go inside the septic tank.
[ethereal music]
The name of our second product is Endobot.
It's a sewer and water pipeline inspection robot.
Generally, municipal corporations dig a ditch for inspection.
But it isn't required anymore
because our robot ensures
that the inspection time is reduced up to ten times
and also, it saves water and money.
We launched our products in 2020.
We built partnerships with many cities
and industries in a span of two years.
We believe that a city's pipelines and sanitation system
are the foundations of a city.
So our company's vision
is to solve the water and sanitation problem
of all the Indian cities
and to make them smart.
Sharks, our ask is
Rs. 90 lakhs for 2% equity of the company.
[ethereal music]
Let's make every city smart with Solinas.
- Wonderful! - Thank you!
You chose an amazing cause.
I welcome all four of you to Shark Tank.
- Thank you! - Wonderful!
Please introduce yourselves.
Where did you study and how did you get this idea?
I hail from Gaya, Bihar.
I completed my tenth standard there. I went to IIT Madras
to do mechanical engineering.
HomoSEP was my project in my final year.
My professor is the co-founder.
We started this with his help.
What about the three of you?
My name is Bhavesh Narayani. I'm from Gwalior.
I was expelled from my school when I was a child
so I resolved to study in a big school in the future.
So I went to IIT Madras to complete my Master's degree.
When I saw Divanshu and our professor
make a robot to save people's lives,
I joined them in 2019.
I'm the product head of the sanitation department of Solinas.
And I'm a co-founder too.
I'm Moinak Banerjee.
I hail from Durgapur, West Bengal.
I did my mechanical engineering at SRM University, Chennai.
Currently, I head the technology department of the water sector.
Linda, what about you?
I'm from Chennai, Tamil Nadu.
I completed my bachelor's degree
in mechanical engineering from SRM University.
[inspirational music]
Then I came across Solinas. I manage
all the research and development projects.
And I also take care of the management of the company.
It's amazing. Gaya, Durgapur,
Gwalior and Chennai!
Citizens from all over the country came together to solve this problem.
- Yes! It appears to be a national integration project. - Incredible!
When I was doing my final year's project,
for the first three months, I just wanted to finish the project.
Yes!
But fortunately,
we were doing a project
with a team of sanitation workers.
When we presented it to them,
they were laughing after seeing our solution.
We were clueless after their reaction as we toiled to make it.
They said, "have you ever seen a septic tank?"
[suspenseful music]
"Look at our nails. They are wearing away. Our skin is affected
because we go inside the tank."
[sweeping music]
When I saw it, I decided to take a chance.
I decided to work hard and make something worthwhile.
What's a septic tank? Is it full of waste? What is it?
Human excretion and urine collect in the septic tank.
- We have created a model septic tank. - Okay.
A human being's excretion solidifies at the bottom.
[ethereal music]
It's a mixture of excretion and urine.
Some of it floats on the surface.
We can remove these two layers with a pump
but a man must go inside the manhole to remove this layer.
[sweeping music]
It's an age-old problem.
This problem must have been solved globally.
Super sucker machines are used in the West
which cost more than Rs. 3 to Rs. 4 crores.
They are available in India too.
But the villages in India
can't afford it.
- So something is available. - Yes! Suction machines are available.
But they are very expensive.
And smaller machines of Rs. 15 lakhs to Rs. 20 lakhs
can only clean the top part but the hard part at the bottom remains.
Let me tell you about our products first.
The blades
are foldable so they can open and close.
We built a multiple-blade system in our lab after 6 years of research.
It can mix the deepest and the hardest sludge.
This whole system can be controlled with a joystick
which helps in operating it.
We give a camera as an extra accessory
that can be used to watch
the mixing on your iPad.
Okay. It's called a s♪♪t show.
Yes! Right!
For example, there's a small manhole.
So your machine goes inside with the help of the tractor.
We attach a second version of the suction pump to the tractor
and we use a system in which without using the manhole
the suction pump goes down with the help of a remote
and after we click a button,
the suction pump transfers the sludge into a tank through a pipe.
Do you have three products?
Yes! Two hardware and one software.
- HomoSEP is for cleaning. Sludge removal! - All septic tanks. Yes!
- The other one is Endobot. - Yes!
What does Endobot do?
We have made a series of robots
that can go inside pipelines
of 9 cm to 90 cm width
and collect the data inside them.
Data includes the visual feed,
the pipeline's inclination
and the temperature inside it.
What is the insight you get from the data?
Do you just prepare a chart or find out a leakage?
What is the final output?
[upbeat music]
My dashboard will inform them that there's a leakage,
contamination or a tree root at exactly 73.5 metres.
Wow!
We have made a range of robots
for smaller pipelines,
mid-range pipelines and bigger pipelines.
Did you file a patent?
We filed four patents for HomoSEP.
Two design patents are granted
- and two patents... - What about Endobot?
We are still filing patents for Endobot.
Is the equity structure the same for all of you?
- No. The equity structure is different. - How is it?
- I hold the majority of the equity. - How much?
It's 32%.
- 32.5%! - What about the other three?
He holds around 8.5%
and he holds 5.5%. She holds 2.5%.
Our IIT professors, co-founders and non-executives
have around 20% equity.
- We also raised some investments. - Alright.
- They too hold equity. - Who made the investment?
Three months back we closed our seed round.
- How much did you raise? - Rs. 4.2 crores.
Our post-money valuation was Rs. 26 crores at that time.
How much does this machine cost?
The answer is, this machine costs Rs. 15 lakhs to Rs. 25 lakhs
along with all the accessories.
The business model of Endobot is service based.
We generally cater to municipalities or some industries
whose building is big and they have their own sewer and water pipelines.
We cater to them too.
Last year, our total sales
in customer revenues were around Rs. 1.2 crores.
This year's ARR is around Rs. 5 crores.
Please breakdown Rs. 5 crores.
What are the recurring cost and the one-time cost of the machine?
The sales revenue of HomoSEP is around Rs. 3 crores.
And the Endobot services
give us around Rs. 2 crores...
- Revenue! - Yes!
How much did you profit
after selling a machine costing Rs. 3.25 crores?
Our gross margin is around 60%
which is around Rs. 1.7 crores to Rs. 1.8 crores.
And what's your margin in the services revenue of Rs. 2 crores?
Our gross margin is 55%-60% in services.
What is the market size? How many machines can we sell?
What's your viewpoint?
The global market is around 6 billion dollars.
I'm talking about the inline inspection and cleaning market.
If I assume India's market to be 20% of the world's market,
as India is a big market,
- it would be around 1.2 billion dollars. - No, no!
[suspenseful music]
If 6 billion dollars is your global market,
India's market will be less than 10%.
It could be 20% in terms of volume.
But in terms of value,
- it would be less than 10%. - The ratio is 1:10.
Alright?
I have an important question.
Generally speaking, in the future,
your main revenue source would be the municipality and the government.
How will you handle it?
We create a win-win situation for the municipalities and engineers.
"You have a pipeline network of 2,600 kilometres.
I'll tell you
where you need to change pipelines regularly.
Because the pipelines are wearing away."
- They needn't degrade it more. - They'll get more work.
The work will increase.
I loved meeting you. Four youngsters
from all over India are supporting and contributing
to this cause. I like your cause too.
The innovations of your product are clearly Indianised.
I liked that too.
Namita and I want to make an offer.
Thank you!
We will stick to your previous round's valuation
which is Rs. 26 crores.
We'll give you Rs. 90 lakhs as you asked.
Rs. 90 lakhs in total. Rs. 52 lakhs
in equity and Rs. 48 lakhs
in debt.
Debt would be at 10% and equity would be 4%
- which we want from you. - No!
- 2% - I'm sorry! 2%!
First of all, thank you so much for the offer.
I'd like to hear offers from other Sharks.
[suspenseful music]
I have a final question. I'll make an offer after that.
You said your revenue would be Rs. 5 crores this year.
How much will you earn with septic cleaning?
Rs. 3 crores to Rs. 3.25 crores.
How much can your business grow?
We can easily make it around Rs. 150 crores business.
And currently,
who is the biggest competition and what is its size?
Our biggest competitor is Kam Avida.
Their revenue is upwards of Rs. 200 to 500 crores.
- Rs. 200 to 500 crores. - Yes.
You know what I feel,
that the biggest leverage in your business
will come from making partners.
Look at the transport business in India.
When employment was created,
whether it was food delivery
or ride-sharing, everything was a success.
Right? So, the solution to India's biggest problems is
generating micro-entrepreneurs.
You built the technology and the product.
If you genuinely wish to create an impact,
you need to make this solution, inclusive of tractor cost,
an affordable solution.
It's quite possible
that you might have to give out loans in future
because no one gives loans for this.
[intense music playing]
- There's no underwriting for it. - There will be no underwriting.
So, there are chances you might have to do the underwriting.
So, the only way is
- to make it extremely affordable. - Yes.
- There is no choice. - I agree.
And even though people think the cost can't go down any further,
it's our job as engineers to make that possible.
Provided you can focus on India,
Anupam and I make you an offer.
- Thank you. - Rs. 90 lakhs
at the previous round's valuation. Full equity.
I think it'll be 3.34%.
- Approximately. - Approximately.
- At the same valuation? - Yes.
The valuation we've both given is the same.
- Rs. 26.9 crores valuation. - But we asked for less equity.
[intense music playing]
Look, I am from IIT too.
I understand what you're making here.
Peyush covered the financing bit.
We are also financiers ourselves.
We lend Rs. 500 crores per month to the market.
We should go about that part and I can support you with that.
[tense music playing]
- Thank you. - But, hey,
without us, who will give you ideas with respect to finance?
- Sir... - They'll come back to us
- and ask for more ideas. - We're all businessmen.
If Anupam had ideas, he'd have done something else in life too!
Whoa! That was deep!
That was deep!
I've built four companies.
He merely invests and doesn't even meet companies.
He doesn't even meet the founders of the company.
Only someone people don't know has to beat his chest and say,
"I've built four companies!" Get it?
[Sharks laugh]
No, I really did.
[Aman laughs hysterically]
I'm loving this. "S♪♪t is hit."
[unanimous laugh]
Nice! We're going to use that.
That's a good closure.
The purpose and cause are good.
And where that is evident, they pounce on the opportunity.
You have mentors and funds. What else do you need?
I'm out, but I'm glad they have made offers to you.
There is one plus point.
We signed the term sheet with our investors
and closed the round six months ago.
If we take the same valuation now, I think it would be unfair to them.
They'd have a problem if we devalued you.
Do you have a counteroffer?
Let's find a middle ground.
2% equity at a valuation of Rs. 33 crores.
- Rs. 66 lakhs. - Yes.
- Done. - 66... Done.
Who is the offer for?
This offer is also for Peyush because we don't want debt.
Let's do one thing.
Shall we do it at 3%?
- Debt... - We offered a debt-equity structure.
- They don't want debt. Do you? - At Rs. 33 crores...
- No debt. - No debt. Any equity deal?
- Guys... - They are...
- Hang on... - It's a Shark fight.
These two are ready to give you an equity deal.
Let me clarify one thing, Divanshu.
I am not doing this for any negotiation.
If you want Anupam and me as a partner, then we're in.
- Correct, I absolutely want to. - No...
This is not a platform to negotiate the valuation.
If you want to do that,
the best option for you is to take debt.
- Do you have a counteroffer? - Yes, I do.
I think we should back out. What do you say?
Please. Hear my offer.
- You... - Say yes or no.
Hang on. Do you want my offer?
I mean, from Namita and me or not?
- Or we'll back out. - We are...
- Tell us if you don't. - Okay...
- We're keen to... - We won't feel bad.
- We'll work it out. - We're out. We're out then.
- Take their offer. - Hang on.
- You want to work with them... - Let them take it.
- Take their deal. - We're out.
- They are out now. - We are out.
Now, you have only one offer.
[intense music playing]
Peyush and Anupam, we'll take the deal.
- Good. - Alright.
- Congrats, guys. Very happy... - Thanks.
We are happy you got a deal.
- I have immense respect for you. - Thanks.
- I found my partner on shaadi.com. - Alright!
Get here!
Meet one of our success stories.
He met his wife on shaadi.com.
He had to take the deal!
Had he mentioned this, we'd have reduced another 0.1%!
- [indistinct speech] - [Anupam laughs]
- Good job, guys. Good job. - Thank you.
Let's destroy, men of scavenge!
- Team Solinas, congratulations on the deal once again. - Thank you.
You are solving the problems of water pipeline leakages already.
You've brought an impactful change.
What change do you think your coming here and your mission
will bring in the lives of these people?
Yes, our robot, by way of robot scavenging
is here to give a new lease on life.
Earlier, people cleaned waste with their hands,
now they'll use a robot to do it.
- Nice. - This will be the greatest impact
which will save lives and prevent diseases from spreading.
You're doing such noble work.
You are bringing about a futuristic change.
Acko welcomes such change.
We want you to write a small and lovely message
on our Acko Change Makers wall.
With its 24-hour claim settlement policy,
Acko has changed the world of insurance.
May you positively impact and change the lives of people too.
Wish you the very best. Do very well. And take care.
- Thank you. - Thank you so much.
You can become a Home Shark from the comfort of your home.
It's very simple.
You just need to decide the stake in the businesses that come here.
If you feature on our list of top ten Sharks,
you stand to win exciting prizes.
Download or update the Sony LIV app
and become the legendary Home Shark.
'Let's get to the Shark Xperience.'
'Madhu from Satna sends in her question.'
'Peyush, I studied in the US and work here now.'
'But my parents want me to come to India.'
'Would my decision to quit my job, return to India'
'and start a business be wise?'
If you have a clear vision about solving a particular problem,
then this decision would be phenomenal.
There will be problems in the US, but even more so in India.
If you have clarity on what you wish to do,
then India is a land of opportunities.
India has a lot of growth potential.
In the next ten years,
the growth you witness in India will not happen anywhere else
because we are 1.2 billion people.
We have tonnes of problems, we have a lot of hope.
We have a lot of talent.
Don't think short term.
Think long-term. Come here and do something big.