Hello, I am 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 pitchers, Sharks and hosts are all ready.
[bubbling] [ethereal music]
[inspirational music]
[ethereal music]
Greetings, Sharks! My name is Siddhant.
Greetings! I'm Ambika.
Greetings, Sharks! My name is Vinita.
Greetings, Sharks! My name is Vibhor Agarwal.
Greetings, Sharks! I'm RK Choudhary.
People don't recognise me by my real name but by my pet name Nanaji.
[chuckling]
- Sir, would you like to sit? - Yes, sir.
You will find a chair at the back.
- Welcome to Shark Tank. - Thank you!
Sharks, Nanaji was fond of Ayurveda since childhood.
[thrilling music]
He wrote thousands of pages after his research.
My mother experienced hair loss after the first Covid wave.
She tried numerous products available in the market
- but they didn't help. - Alright.
I resolved to solve my daughter's problem
of hair loss at any cost.
Wonderful!
So I prepared a formula
after thorough research.
I prepared a type of oil
that has miraculous effects.
It cured my hair loss problem.
So we started distributing this oil for free
to our family and friends.
This oil became popular in our country as well as around the world.
It turned my dad
into a superstar overnight.
[chuckling]
My dad taught us
that there's no age limit to start a business.
Avimee's journey began this way.
[ethereal music]
Avimee is a brand
which is a mixture of Ayurvedic and modern ingredients.
Avimee makes haircare products and skincare products.
We believe in making result-oriented products
so that our consumers market our products.
[upbeat music]
When we started this brand 13 months ago,
we had only three products.
But now we have a range of 27 products.
I want to use my knowledge of Ayurveda and my passion
to solve people's hair and skin problems
and spread happiness.
Alright.
I have resolved to regrow people's hair at any cost.
Awesome!
Sharks, to fulfil Nanaji's vision,
we need Rs. 2.8 crores for 0.5% equity.
0.5?
Yes!
Wow!
- You asked for a big amount. - Rs. 560 crores is the valuation.
What could be the valuation?
- Rs. 560 crores! Yes! - So you already calculated!
Sharks, will you support us in our journey?
We'll try to support you.
But let's understand your business first.
Nanaji, first of all, we want to know
how you became curious about Ayurveda.
Are you an Ayurvedic practitioner?
- I was born in Bhagalpur, Bihar. - Okay.
I completed my bachelor's degree in commerce stream there.
What year are you talking about?
1957.
It means India was independent.
I was ten years old.
Wow! You must have seen British-era India.
Amazing!
Wonderful!
Fabulous!
Nanaji, you looked handsome back then and even now.
Thank you! [chuckling]
Superb!
I was fond of reading books
since childhood.
I was fond of Ayurveda specifically.
- So we may call you a scientist. - Yes!
So you decided to experiment on your daughter's hair after Covid.
Either her hair will regrow or she'd lose all her hair.
Something similar happened.
Actually, when I finished making the oil,
I asked her to apply it to her hair.
She said, "no, dad. You apply it first."
[laughing] [clapping]
That's amazing!
I oiled my hair for two months.
One day my daughter said,
"Dad, it seems there's some hair regrowth."
It was shocking
to have hair regrowth at 85 years of age. It was like a cricket pitch.
Gosh!
You said that you're 85 years old.
- Now he is 86 years old. - Now I'm 86 years old.
Wow!
Amazing! Nobody will believe it.
Many people said to me,
"People retire at 60 years but you are 85 years old."
I answered,
- "I deleted the word 'retirement' from my dictionary." - Awesome!
- Amazing! - My dad says the same thing.
My grandfather worked until the day he died.
You remind me of my grandfather.
[ethereal music]
I'm glad to know
that you made a foray into entrepreneurship at this age.
What roles do your family members play in Avimee?
Sir, I handle the business operations.
You may call me the brain behind Avimee.
I'm a CA by profession.
Ambika is a half-CA as she's my wife.
What do you mean by half-CA?
I didn't let her become a CA and married her instead.
[laughing]
She looks after the marketing department.
She's a blogger on Instagram and she has around 4 lakh followers.
- Wow! - Wow!
Nanaji's invention was unbelievable.
We just shared his journey
on Instagram.
People appreciated our work
and people made enquiries. There was an overnight demand for oil.
How popular was your reel? How much traction did you gain?
Around 2.5 million people saw it.
Organic! It was unpaid?
We have never paid for advertisements until now.
You are running your business organically.
- Our advertisement expense is zero. - It's zero.
We don't have an advertisement column on our balance sheet.
- Wow! - Amazing!
It means your product is in itself a quality product.
How are the four of you related to each other?
He's my grandfather. She's my wife,
that's my mother and he's my brother.
Nanaji, what is the equity split between all of you?
Are they just making you work or giving you a salary and equity too?
I asked myself
if I wanted to be their business partner.
All of them are close to my heart.
- Yes! - So cute!
How can I be their business partner?
I raised them.
They belong to me so everything is mine.
There aren't two entities.
A partnership requires two people.
You remind me of my grandfather.
I want to touch your feet.
My grandfather used to say the same thing.
[mellow music]
He is so sweet.
Is your company a private limited firm?
It's a private limited company.
Vibhor has 33.3% equity.
My mom has 33.3% equity and Ambika also has 33.3% equity.
- What about you? - I'm the managing director.
It was a family decision to make equal splits.
Please tell us about your business.
Tell us the sales figures and when you started.
What are the yearly sales?
- Their sales must be astounding. - Yes!
Sir, we started in August 2021.
Between August 2021 and March 2022,
- our net sales were Rs. 6.5 crores. - Wow!
Very nice!
Our sale in April was Rs. 95 lakhs.
For the months of May and June, it was Rs. 1.25 crores.
In the months of July and August,
it was Rs. 1.75 crores and Rs. 1.65 crores respectively.
How much will be the sale this year?
This year, we'll make a sale of around Rs. 20 crores.
The sale can surpass this number
because our products are approved by Dubai.
Dubai is a huge international market.
And our very first order has a net worth of Rs. 1 crore.
Okay!
These are the minimum figures we are sharing with you.
We are in the bestseller category
of Amazon within a month. We're ranked ninth.
Please split the sale of Rs. 1.65 crores.
How much did you sell on each platform?
Sir, around 88% of our sale is through our website
and 12% of the sale is from the marketplace.
- Please show us the products. We'll talk about your business too. - Yes!
Let's check their packaging and other things.
It's our highest-selling product, Keshpallav Hair Oil.
- Which is your second bestseller? - It's a serum.
It's a bestseller nowadays.
- Show me the oil, please. - Here you are.
All of them want the oil!
I'll go and bring more.
Please bring one for me. My mom will be elated.
- What's this? - It's a soap.
[upbeat music]
You are holding our new face wash. It has been sent for approval.
We also have Ortho CP Oil
which was made by Nanaji for my granny 30 years ago.
You are holding our shampoo which is one of the highest-selling items.
What is the intellectual property that defends your oil?
- We have the formula and the process of making it. - Correct!
What's the basis of Rs. 560 crores valuation?
[suspenseful music]
Sir, our GP is nearly 69%.
What does GP stand for?
- Gross Profit! - Our gross profit is 69%.
Please explain it in simpler terms. If a product worth Rs. 100 is sold,
how much was the cost? And give us the cost breakdown.
Sir, 50% of the sales are of Keshpallav Oil. It costs Rs. 550.
Rs. 100 of its cost is spent on GST.
We get a net profit of Rs. 450.
Rs. 135 is our material cost.
Rs. 5 is our labour cost.
Packaging costs Rs. 10
and Rs. 95 is incurred as shipment charge,
establishment cost, staff salary and all the other things.
- So you spent Rs. 250 in total and you saved Rs. 200. - Yes!
This economics is just for 50% of your business.
- It's 50% of the business. - What do you sell in the remaining 50%?
Another 30% of our sales are of Hair Tone Scalp Spray.
And 10% of our sales include the remaining products.
It helps us make a gross profit of 80%.
- So two of your products comprise 80% of the sale. - Yes!
- And the remaining 25 SKUs comprise 20% of the sale. - Yes!
Then why do you have the remaining 25 SKUs?
[tense music]
You needn't foray into skincare
when you're known for haircare.
Did you calculate your repeat usage?
The data from June till now shows a 32% repeat ratio.
- Let's come back to valuation. - Yes.
How did you estimate a valuation of Rs. 560 crores?
Sir, I conducted a PR review.
I read the review of a company called Vedic.
They have Rs. 4.5 crores PAT for a revenue of Rs. 55 crores.
And their valuation is Rs. 400 crores.
And if we see the listed companies,
minimum 30 times of the profit is considerable.
We'll earn a net profit of Rs. 9 crores this year after tax.
And the next year, our profit would be Rs. 20 crores.
We estimated our valuation accordingly.
Even if you calculate that way,
your demand is high. Your revenue is less than half.
[sweeping music]
Sir, I think the valuation is always forward-looking.
The next year, we'll earn a net profit of Rs. 20 crores.
How will the Sharks earn, my friend?
How can you make a forward-looking projection at this stage?
We can't be sure if half of these categories will exist the next year.
The forward-looking valuation is done for mature businesses.
You used multiple concepts
of private equity and public equity
and made the best valuation with it.
[thrilling music]
Sir, I can assure you
that I'll double the money invested
by any one of you.
[laughing]
Even if your sale grows ten times,
our money can't be recovered with 0.5% equity.
Yes.
I understand.
How will you use the money?
- Right now we are using a building on rent. - Okay.
The premises are too small to manufacture for next year's sales.
So we need to build our own factory.
And we need Rs. 5 crores to Rs. 6 crores capital expenditure for that.
So you need the money to establish a factory.
For capital expenditure.
Nanaji, what do you have to say about it?
Is Siddhant right? Or your grandson is immature?
My father used to say,
"If you want to sell a horse, please keep four donkeys beside it."
[laughing]
Are you referring to these four people?
No! They are my heroes.
I have made my decision.
I'm impressed by Nanaji
as he started a new business at such an old age.
It's commendable.
But I want to be out of it today
because your business is vast.
You are making a profit of Rs. 8 crores to Rs. 9 crores.
I don't think I can help you much.
So, I'm out. But your business is great and you must continue.
[sweeping music]
Firstly, Nanaji, you are an inspiration.
Thank you!
I'm inspired
to see you and hear your thoughts.
My number one principle
for my brands in Emcure is,
less is more.
The focus, for one,
when you think about "less is more",
- that's important. - Yes, ma'am.
And I find it missing.
For that reason, I'm out.
The valuation is Rs. 560 crores.
It's a bit high for me.
Let me give you a piece of advice.
Focus on marketing.
The sooner you market your products and grow your brand,
the better it'll be for you.
Yes.
Your valuation is beyond my understanding, to be frank.
In my opinion, the valuation of the business falls roughly
between Rs. 40 to 50 crores.
Rs. 560 crores seems implausible.
Okay.
If I make you an offer…
I will give you Rs. 1 crore
at Rs. 40 crores valuation. The rest would be debt.
Okay.
So, I am asking you for around 2.5% equity.
Okay.
Okay, let me make you an offer too.
[intense music playing]
I'll give Rs. 70 lakhs equity.
At Rs. 35 crores valuation.
Your dilution will be 2%.
I will give you the rest in debt
- so that you can invest it in a manufacturing plant. - Okay.
My interest rate would be 15%.
That's my offer. The decision is up to you.
His valuation is lower.
Yes.
And he is charging interest at 15%.
My interest rate is 12%. I'm sorry I forgot to mention it.
My interest is lower by 3%
and my valuation is higher by Rs. 5 crores.
The decision is yours.
[intense music playing]
He wasn't going to quote a lower interest rate,
he did it to one-up me.
- [unanimous laughter] - He didn't mention it before.
Later, he'd have quoted 25 to 30%!
You may make your decision now.
May we step out?
- Certainly. - Yes, please.
[tense music playing]
- We shouldn't take debt. It'll be an issue. - Yes.
- It'll just put pressure. - Yes.
- Do away with it. - Yes.
- Skip debt and agree to the rest. - Okay.
[tense music playing]
Welcome back.
- Thank you. - Thank you.
Welcome once again.
- We don't wish to opt for debt. - Okay.
Our counteroffer for both of you is Rs. 2.8 crores for 1.5% equity.
- Okay. - Gosh!
The valuation comes up to Rs. 186 crores.
Tell me one thing.
Why are you so against taking debt?
You are in need of debt at the moment.
You never put equity in setting up a manufacturing plant.
It's really expensive.
[intense music playing]
Taking debt puts you under continuous pressure
of repaying the money.
You start a business for your peace of mind.
It shouldn't put you under pressure.
[Sharks laugh]
- I agree. - You are right.
You deserve peace.
I will stand by my offer
because I feel I made you a fair offer
based on my past experiences.
I have seen many D2C businesses through.
You, Anupam?
Yes, I am out.
I can't accept your counteroffer.
Okay. What are your views?
[intense music playing]
- Sorry. I can't go any lower. - Alright then.
- No problem. - Thanks for coming on Shark Tank.
Thank you so much.
- All the best. - Mr. Choudhary, it was nice to meet you.
I seek your blessing, sir!
[chuckling]
I'd like to say something before you go.
This business should be divided into four shares.
- Mr. Choudhary should get 25% equity. - Okay.
Whether he asks for it or not, give it to him.
- Thanks… - That's my advice.
Continue to stay as a joint family.
- It was nice to meet you. - Thank you. Bye.
- Bye. - Thank you.
- Thanks. - Thank you. Bye.
[music playing]
Sir, I am impressed to see the bond your family shares.
What do you say to strengthening the process of online payments?
Cashfree Payments gives you
free credits for transactions worth Rs. 50 lakhs.
India's high-growth starters use Cashfree Payments
for smooth transactions.
Let me register your account.
Cashfree Payments gives you
out-of-the-world payment solutions
for your out-of-the-world ideas.
Congratulations.
Free credits worth Rs. 50 lakhs added to your account.
Sir, you may also take a look.
Grow your ideas into a business with Cashfree Payments.
[bubbles rising]
[music playing]
'Last year, from a small town, '
'with a solution to the problem of the hearts of millions of people'
'came the founders of Sunfox Technologies.'
- This is our heart. - Aw!
It jumps for joy when it's happy.
And when it's sad, it sinks.
- Oh, my! - [chuckles]
But it's a heart after all.
- And hearts don't have brains. - No.
And a small mistake
can prove fatal for it as well as you.
'They made a pocket-sized invention.'
Spandan is a pocket-sized ECG device
that can be used by anyone and anywhere.
All of us will give you a consolidated offer.
- This happens very rarely. - Correct.
'The product was so fantastic'
'that the Sharks made an All Shark deal to them.'
Whoa!
After we came on Shark Tank,
within 20 minutes, we were out of stock.
When I saw Spandan on Shark Tank India,
I felt that with the help of this device,
I could go to faraway villages within Uttarakhand itself,
and help people by conducting their ECGs.
The percentage of heart attacks in India
will go down from 40% to 38 or 37%.
Spandan will be one of the biggest reasons to bring that change.
We are in Sonprayag now, which is at the Kedarnath base camp.
In association with Emcure and Spandan Foundation,
we are holding an ECG camp.
If you don't get food on this land, it is alright.
But if your body isn't healthy, then liberation won't be any help.
272, a common number.
But to us, this number denotes the number of lives we have saved
ever since we came on Shark Tank.
Every time I ask him for an update,
he updates me on the number of lives he saved.
He's one of those people… He's a gem.
He's so busy trying to change the world.
I feel so proud.
That is my number one investment in Shark Tank season 1,
in terms of the impact it is creating, for sure.
'Spandan mobile ECG machine. It is very handy.'
'This is an amazing innovation.'
'We can save many lives using this.'
It started with an Indian problem and was an Indian solution.
But we are now a global solution and saving lives globally.
[upbeat music playing]
We exported to 11 countries.
I'm a cardiologist in Turkey.
This is the device and this is my PC's mouse.
It can be used very easily.
Earlier, we had the capacity to manufacture 500 units a month.
We are producing more than 5000 units today.
Our team has almost tripled.
If I talk about sales,
say for example we did Rs. 1 lakh revenue pre-Shark Tank.
After Shark Tank, you can say, we went 30x.
Sales shot up to Rs. 30 lakhs.
People from 20 to 25 countries reached out.
We also came up with a European partnership.
The journey has just begun.
There is a lot to do.
Go, Spandan! [in unison]
[laughs]
What is it?
What is the brand?
- Oh my God! - Eyenic!
- Oh my God! - This will be fun. Send them in.
- Even we will… - Whoa!
- We have competition. - This will be fun.
We will have lenses too.
- This is better than Lenskart. - Invest in it.
- Let's see how good I'll look. - Check this out.
- I want sunglasses. - Put it on.
This one, bro?
How am I looking?
Guys, come.
[theme music playing]
[theme music fading]
Hey, we've reached the set of Shark Tank.
But I don't see the Sharks.
[whimsical music playing]
Hey, wear your glasses!
[Anupam laughs]
The sharks are sitting right here.
- Hi. - Glasses are a blessing
for those in need of vision correction
and those who start their day by wearing a pair of glasses.
This sounds familiar.
[chuckles]
In India, 35% of the population needs vision correction.
As per the weather, people wear different glasses.
Kids get their own pair too.
And those who wear turbans have a different set of requirements.
And all of this should come in a pocket-friendly price.
Today, India has over 40,000 optical stores.
Every person with glasses has a favourite optician
from whom he gets his glasses.
- Yes. - But it's the online era.
And we have started to forget them.
Today, we are well connected with optical stores
owing to our family business.
When everyone is growing, why should we leave them behind?
Sharks, Eyenic is an eyewear brand
that has been curated
keeping the needs and problems of Indians in mind.
Eyenic is not some useless brand.
It is a brand made for Indians
which is affordable, durable and good-looking.
Because what looks good, sells!
But why is it so dark in here?
Take off the sunglasses attachment from your glasses, brother!
It isn't sunny here.
Sharks, we started Eyenic in 2017-18.
We are present in over 300 retail stores across five states.
We have sold over 1.25 lakh glasses.
Users can buy our glasses on our newly-launched
online platform, eyenic.in.
Just as Maggi is the most demanded noodles brand,
we want to be the most-demanded brand in eyewear.
I am Piyuesh Kalra and I am Sunil Chhabra.
[Sharks laugh]
Is your name really Peyush?
- Peyush with a Pi, right? - It's Piyuesh.
- Oh! - We're the co-founders of Eyenic eyewear.
- You're not brothers? - We're cousins.
Cousins. So, family business. Okay. Understood.
Sharks, our ask is Rs. 75 lakhs
in exchange for 6% equity in our company.
- Wow! - Wow!
Welcome to Shark Tank.
- Thank you. - Thank you.
Tell us about your journey.
What have you studied?
How did the idea of launching this brand occur to you?
I did engineering from Punjab University, Patiala.
I joined Eicher Volvo, a truck company,
- in their R&D department. - Nice.
I worked in product design and development for three years.
Our family has been in the optical retail business for almost 50 years.
- Overall, our family owns over 50 shops. - Wow!
They all have different names.
I've been involved in the business
since childhood helping my dad in my free time.
I quit my job after three years and came back.
I decided to work in the industry that I had immense knowledge of.
I spent another two years here in research and development.
I travelled to Italy.
I met famous designers and attended exhibitions.
I travelled to China.
I met up with all the Indian manufacturers.
We incepted this business in 2017.
We began with the pilot stage and making prototypes.
We started sales in 2018.
We don't wish to fight with the existing optical industry.
We want to make them our strength.
There's a huge network.
80% of them are unorganised though.
We want to give them hope apart from a platform and products
that can help them become the king of the industry.
- Great. - Nice.
Who is the king in the industry now?
Sir, we're the emerging kings.
[Sharks laugh]
The market is huge and it has a lot of scope.
There is no king.
Lenskart is also a retailer and it can also buy products.
- Technically. - Yes.
Opticians affix their own lenses in the frames.
You are not into lenses.
We have started lenses too.
- We have a few SKUs, but we did make a start. - Got it.
But going up against Lenskart is a big deal.
Ma'am, first of all, it's such a big industry.
For one big player to exist is not good for consumers.
[laughs]
- Well said. - [Aman laughs]
Just to clear the confusion.
- Your model is not to open retail stores. - Right, sir.
Your business deals into frames.
Sir, 85% of our sales come from frames.
Okay, got it.
15% comes from lenses.
As far as I know, there's more margin in the lens.
- We'll come to that later. Give us a demo. - Yes, sir.
I had worn this when you came.
Sir, this is a night vision polarised glass.
- Looks good. - Especially for driving cars.
This is with the sunglasses attachment.
These are blue light filter lenses.
- To protect from blue rays and UV. - This is good.
[intense music playing]
- These are the lenses we mentioned. - Nice!
- They're made in India. - This is in-house. - Got it.
Peyush, will you try on glasses by Eyenic?
Yes, why not? I can wear any brand.
But you don't let us!
- Show me that. - [Sharks laugh]
- That's my love for you. - Oh, my!
Why the sudden love for us today?
[laughs]
Tell us about your supply chain.
Where are your products manufactured
and what is different about your brand?
Sir, 60% of our production is done in China.
30% is done in India.
- And 10% of our SKUs are made in Turkey. - Great.
Our key differentiators are
that we're well connected
to the optical industry comprising over 40,000 shops in India.
And we understand the end consumer.
For instance, we have over 50 SKUs for people who wear turbans.
How many glasses do you sell in a month?
Sir, we currently sell 5000 to 6000 glasses.
What is the number of turban wearers?
Around 1000.
- So, 20% of your market is from turban wearers. - Yes.
Could you show me the glasses?
[intense music playing]
- Sir, if you see… - Yes?
We have given bends here.
The angle and the shape are crafted to precision.
It's hard to take glasses off after the turban has been worn.
[intense music playing]
Sir, we have come up with a range in Eyenic called Airman.
Airman.
This one, Airman.
Okay, Airman. Nice.
Our Airman range
is priced approximately between Rs. 500 to 1200.
Eyenic starts between Rs. 1200 to 2500.
The pricing is okay, it's competitive.
We were focusing on the optical scope.
Our intent was for them to compete with online brands.
Why didn't you add it to the same brand?
[intense music playing]
Why didn't you launch it as Airman by Eyenic?
Certain detailing that we use in Eyenic
can't be incorporated into Airmac's budget.
Let's take a pair of Eyenic glasses for instance.
The quality of acetate used in it
is far better than the acetate used to make Airman.
It'll be HD. We've used 100% cellulose plastic.
But we need to dilute it when it comes to Airman.
[intense music playing]
How much does a pair of Lenskart's similar glasses cost?
Sir, we compete directly with some of Lenskart's brands.
Their Vincent Chase is in the same price category as Airman.
Then come John Jacobs.
Eyenic falls between the price range of Vincent Chase and John Jacobs.
Got it.
The only difference, for your knowledge,
is that all our products are made of 100% cellulose acetate.
Nice.
For 10 years, we have never sold plastic.
Could you tell us your revenue and margins?
Sir, from 2018 until now,
we've generated a revenue of over Rs. 4 crores.
Last year?
Our net sales for last year have been Rs. 1 crore.
[chuckles]
This year, we've made around Rs. 75 lakhs already.
- And last month? - Around Rs. 15 lakhs.
- What's your gross margin? - It's 45%.
Are you making profits?
Sir, we're profitable.
- Okay. - How much is the profit?
We follow the bootstrap model and we're reinvesting all the money.
Our net margin is approximately 21%.
- You're taking home Rs. 3 lakhs every month. - Yes.
Okay.
From one retailer…
As far as I've understood, 300 stores and five states.
Your revenue is Rs. 15 lakhs.
Your revenue per store is low. It's hardly Rs. 5000 per month.
So, I don't understand where the challenge is.
Sir, one of the challenges is that they stock other brands.
We want to try and make an entry into more products.
Are there months when you don't get orders from shops?
We visit the shops. Our cycle is every three months.
Last month's sales are Rs. 15 lakhs.
It's not like we get bulk orders from all the 300 shops.
This is mostly the orders we received from 30 to 50 outlets.
- What about the remaining 250? - Sir, we make regular visits.
If we visit an outlet today,
we'll make our next visit after three months.
How much worth of goods do you sell in one visit?
On average, Rs. 50,000 or 1 lakh.
So, you sold to 30 shops this month and your sales are Rs. 15 lakhs.
As an example.
Not an example, I'm talking real numbers here.
[intense music playing]
Out of 300 shops, only 10 order from you every month.
Don't you sense something wrong here?
Sir, nothing is wrong. Our team is quite small.
You can hire more people provided there's a demand.
The sales cost is too low.
Definitely. We plan on…
So, there's no demand.
Sir, the demand is there. We…
Then why don't the numbers justify it?
We have limited capital to make our inventory.
We have to manage with the production we have.
Look. Your old offline work,
in which you physically go to stores and sell products,
versus the new trend in which you sell direct to consumers,
the element I find missing in it is a co-founder.
[intense music playing]
I think you need a co-founder who is a technology king.
Someone who can understand the practicalities of the business.
How to convert offline to online and vice versa, right?
That's the missing link.
You're working on a small scale for two years.
The revenue has only been Rs. 15 lakhs.
You fail to pivot on the right opportunities to capture the market.
I don't wish to take a risk at this point.
But I wish you all the best, guys. I'm out for now.
[intense music playing]
As an investor, I won't be able to help you much.
This is not my area of expertise.
And for that reason, I'm out.
Piyuesh and Sunil, I am out.
Let me tell you your positives.
What I liked about you
is that you're the kind of entrepreneurs who're not afraid.
These are the kind of people every industry needs.
Your good quality is you understand the consumer.
But I am out because I see just one problem.
You haven't been able to create any pull.
Until now, you're going to retailers and pushing the product.
Make some investment towards ensuring
that the customer comes back and asks only for Eyenic.
[intense music playing]
And build the brand at the earliest.
- Sir, I'd like to say something. - Sure.
Our product expertise is unparalleled.
We need help.
- If you come on board, we could rule the… - Help with what?
What help do you need?
Sir, we need help with brand building and capital.
You've built successful brands. We need that help from you.
I think your business model is flawed.
[intense music playing]
What you're doing right now is
going to retailers with your goods and taking orders.
This is an obsolete way of doing business.
No one has ever scaled by doing that.
What's your problem here?
Even if you do sell the frame,
when the consumer visits the shop, he won't buy your lenses.
You're not physically at the shop.
The optician will sell a lens in which he gets the highest margin.
It stands true even today.
I'm sure it is and people are doing it.
But in that, scaling is tough,
as are cross-selling and upselling.
Customer transparency…
Understanding the customer journey is tough.
This existing business of B2B, selling through opticians,
in my opinion, should cease.
[intense music playing]
Do you sell to retailers on credit?
- Sir, that's right. - What's the period?
Around 60 days.
Firstly,
let me clarify
that I do invest in eyewear companies.
As the co-founder of Lenskart, we invest in eyewear companies.
I believe that very soon
India will need D2C brands more
because eyewear is a category that hasn't experienced much evolution.
I want to be out of your business
because I don't see a fundamental differentiation
in terms of quality and the supply chain.
[dramatic music]
Piyuesh, your design sense is good.
You have done innovations for sure.
Your product design sense is nice too. I think you must
bring some differentiation in the quality.
I think there's a gap that you need to fill.
Also, as you're working on the credit system,
you need to be cautious because it's the biggest challenge
in the eyewear industry. Particularly, in B2B services.
You give them 60 days but there's no commitment, right?
People must be paying you in 90 days or 120 days.
So in an emergency like Covid,
your core business could be at risk.
This is my feedback for you. I want to be out today
but you're doing great. Keep going.
If you show some differentiation, I'd surely invest.
[suspenseful music]
Would you like to try another business model?
Either the B2B marketplace or only a D2C brand.
We would like to try both models.
Boss, you must choose or else, it won't be of any good.
Sir, we want to choose B2C while using the optical network.
If you want to foray into the B2B marketplace,
I could make an offer.
[dramatic music]
But you'll have to move your focus away
from your current business. Do you agree?
Sir, we're definitely interested in B2B.
But you want to do this too.
Yes!
No. That won't work for me.
I'm out but I appreciate your courage. I wish you all the best.
- Thank you, guys. - All the best, guys!
- Thank you, Sharks! - Thank you!
If your business idea has potential
you have a last chance to be in Shark Tank.
Quickly download or update Sony Liv app
and be a part of 'Happilo presents, gateway to Shark Tank.
I'm telling you, send your entry today.
[ethereal music]
Before we begin, I have a quick question for you.
Do you know her?
[ethereal music]
No! I don't know her.
But you must be knowing her.
No. Maybe I saw her somewhere.
- Who is she? - She looks like a familiar face.
I think it's someone we know.
Yes. We feel the same.
And you must be aware of her too.
What is this game?
All of them are superwomen.
The world is aware of the stories of some of them
and you'll know about the rest of the stories soon.
All these females are independent.
They fulfil all their roles amazingly well.
Some of them were our artisans
and she's my mom.
Sharks, as a woman
we tend to underestimate our worth.
What does a woman's life look like?
After their studies, their family asks them to get married
and be good wives and good mothers.
But we are more than that.
My mom is exceptionally talented.
But she failed to break the traditional cycle of thoughts.
We experienced a tragedy that changed our life completely.
Then we decided to do something for female empowerment.
I broke this cycle
by replacing my wedding dress with a business suit.
- Greetings, Sharks! I'm Aishwarya and I'm 26 years young. - Greetings!
Greetings, I'm Minakshi Jhawar and I'm as young as 51 years.
[laughing]
Wonderful!
We are from Kota
and the name of our brand is ekatra.
[ethereal music]
Ekatra is a sustainable artisanal brand
which makes stationery and lifestyle products.
Handmade is generally classified in the luxury segment.
But we make handmade items affordable.
Our brand is available on 19 online marketplaces
and we own a website too.
Five of them are global spaces.
We have collaborated in 20 plus retail stores pan-India.
Within just 1.5 years of operations,
we worked with Netflix, Fabindia,
Etsy, Salesforce and other such brands.
Do you know that 80% of the female population
- in India doesn't have a stable source of income? - Alright.
That's the reason, all the products of Ekatra are made by females.
Sharks, we need your expertise
to grow our business.
Our ask is Rs. 40 lakhs for 10% equity.
[joyful music]
Are you ready to create more women bosses?
[chuckling]
So, woman boss Aishwarya
and woman super-boss Minakshi,
- we welcome both of you to Shark Tank. - Thank you!
You raised an important point
that 80% of women don't have a stable income.
We are 50% of the total population.
Then why is our percentage only 20% in the workforce?
You shared an important statistic with us
and I want to thank you for that.
Your brand name is Ekatra. What does it mean?
It's a Sanskrit word which means a collection.
- Okay! - A collection of thoughts...
- Memories, feelings and people. - Our memories, feelings and people.
Aishwarya, I want to know how you joined your mom.
Shark, actually, I got this idea when I was in college.
As per my education, I'm an urban planner.
Because of that, I had to work with various communities.
The idea stemmed from there.
As I was working with the communities,
I worked with innumerable females on the ground level.
I observed that they had time and talent but they lacked a platform.
I started this business during my college.
Later on, I participated in the HCI conference.
They spotted me.
And they immediately ordered 1,000 journals.
We completed that order by bringing two more people on board.
We completed that order successfully.
In late 2020, Fabindia spotted us.
Wow!
So they gave us an order
and we became a full-fledged brand.
I want to say something. Our country
is so focused on STEM subjects and engineers
that very few people
choose to study the field you chose.
- Ms. Minakshi, I must give you the credit. - Definitely!
You encouraged her.
Maths and engineering only solve logical problems.
But the multi-discipline activities lead to miracles.
Our country needs more such fields of study and disciplines.
Can we see some of your products?
Of course!
[dreamy music]
What is it?
It's a tote bag.
[inspirational music]
It has a brown tag.
It's made of bamboo paper.
How much does this pouch cost?
It costs Rs. 150.
- What about the Laptop Sleeve? - It's for Rs. 450.
No. The Laptop Sleeves start from Rs. 700.
Ms. Minakshi and Aishwarya,
these products have been in the market for years.
So it isn't something new, right?
- I'm from Jaipur. Such prints are quite common over there. - Correct!
Such prints are a fad in this belt.
Aishwarya, they want to know
how you are different from the competition.
If you see the designs of our products,
one aspect is that they are handmade.
But the designs are intentional.
For example, the day planners.
They have layers of thought process like gratitude,
self-care and movement
which help in our daily activities.
I think the branding of Ekatra
can be felt even by the tags they use.
- The experience is different. - Yes!
Their communication is extremely good.
- I agree. They have a thought. - So the brand-building factor
isn't mentioned by Aishwarya
- but this feel-good factor will contribute a lot. - I agree.
You said that you work with women.
So tell us more.
We connected with other people through word-of-mouth.
Currently, we have 23 females with us.
And in the next two months, we'll reach 40.
But now we are training more people.
Within 500 kilometres, we identified 300 people
who are connected to National Rural Livelihood Mission.
They are being trained in basic stitching and sewing.
So they're helped from both sides as the government is looking for people
to employ them and we want to leverage their time and skills.
Do they work in your factory or...
Sir, it's both ways.
We have a small setup in our factory. We're still building it.
But mostly, these females can't afford domestic help
and they have a family and kids to look after.
So they work when they are free.
Please tell us about your sales.
In the initial year, it was just Rs. 90,000
as we are a 1.5-year-old company.
The following year, we increased it up to ten times.
Last financial year, it was Rs. 10.5 lakhs.
Last quarter was Rs. 10.4 lakhs
and the last month's sale was Rs. 5.4 lakhs.
You said that you made sales of Rs. 10.5 lakhs in the last quarter.
How much did you sell directly to the consumer?
- It must be around 60% to 65%. - 60%!
What's the margin in your business?
How much are the product cost and profit in Rs. 10 lakhs?
The net profit is 27% and the gross margin is 80%.
- Our cost of goods is 20%. - 20%!
We spend 16%
on overheads, salaries and other such things.
And the different kinds of commissions we pay to stores
and online platforms comprise 25%.
We pay tax too.
And 27% is our profit margin.
What about marketing?
Right now our budget is Rs. 10,000 to Rs. 15,000 for Amazon ads.
What's your sale on Amazon?
The last month's sale on Amazon was Rs. 75,000.
How many reviews of your products are available on Amazon?
Our most popular product on Amazon is the Roll Up Case.
It got over 83 reviews.
It's an Amazon Choice product
and we are number one in the Roll Up Cases category.
And what is the rating?
It's 4.5.
What is the sales figure on your website?
We made 20% of the sales last month.
You must have made a sale of around Rs. 1 lakh.
- A little more than Rs. 1 lakh. - Okay!
So, Aishwarya and Minakshi,
I think your business is too small.
Correct!
I'm out for now, but all the best.
- No problem. Thank you. - Thank you.
I've made my decision too.
I don't think you need investors at the moment.
So, I'm out.
But I want to give you feedback.
Out of your product range, pick two or three hero products
that people will be excited to see.
- That's my only feedback. - Correct.
- We'll take… - But great job.
What's your vision for this company? What do you ultimately want to do?
And why have you come here? What do you want from us?
We want to make Ekatra an omnipresent brand.
Right now, the current focus is to establish ourselves.
We need to build brand loyalty, costumers and equity
on online platforms.
Next would be to delve into exports.
The market for handmade goods in exports is huge.
Right now, we don't envision having our own stores.
But definitely, more store collaborations.
I'd like to say you're quite smart and honest.
Your design sensibility is very high.
But the focus of your business is ambiguous.
You talk about export one minute and D2C the next.
The vision you mentioned about being omnipresent
doesn't seem like a strong vision to me.
[intense music playing]
Aishwarya, if I do invest, I'd like to make many changes.
Playing in so many products is disastrous in my opinion.
I had invested in a company called DailyObjects.
- Yes. - They made the same mistake
of expanding into 25 categories.
Then they cut down to 15.
By the time you understand, you'd have lost
a good 2 to 3 years in this business.
Because it's a competitive market.
I mean, you can hear the others.
First off, everybody is very impressed with you guys.
I want to support these causes.
We are trying to put 10 million women back to work.
But I sit here
wearing the hat of a Shark as an investor
to see how I will make money once I invest in it.
But I don't see your path clearly now.
I am out. Wish you all the best.
I'd like to make an offer.
I see you have a fighting spirit.
I love investing in businesses
that solve a larger problem like the one India has.
Second, I'll be frank. You have really common products.
But I hope you'll figure something out given your fighting spirit.
I agree with what Peyush said.
If a founder does every little thing, he doesn't find the time.
Focus on only one thing.
I'm an expert on technology.
I can help you with your website, repeat behaviour and other things.
I will make an offer only on the condition
that you'll first focus on building a D2C brand.
I'd like to offer you Rs. 20 lakhs for 20% equity.
And Rs. 20 lakhs in debt.
- Okay. - He stole my offer.
- I've written it down. - Me too.
Your sales are Rs. 40 lakhs.
At Rs. 1 crore valuation,
I'll offer Rs. 20 lakhs for 20% and Rs. 20 lakhs debt.
- I think it's a good offer. - Peyush, do you want to partner up?
[intense music playing]
Okay, I am in.
Rs. 10 lakhs each for 20% equity and 20% is debt
with the condition that we will build a D2C brand
for the cause of women's empowerment.
This is a non-negotiable offer on my end.
Just to understand this better,
you told me what you're going to bring to the table.
Peyush, if you can guide us…
[Sharks laugh]
- No, just to understand… - I love it.
- Peyush… - You've become a Shark!
No, just to understand the areas where we lack
and where we could seek your help.
- It's good that you're asking these questions. - Good question.
It makes me want to do this more.
You have indeed built a good brand.
My goal would largely be
to bring in manufacturing expertise and make a moat.
I fundamentally believe you ought to have a moat.
Your branding is quite interesting as are you.
Tell us your decision.
[intense music playing]
- Yes, let's do the deal. - Well done.
- Congratulations, Peyush and Amit.
Thank you so much.
You are an amazing entrepreneur I must say.
Congrats and great pitch.
Thank you so much for trusting us.
You two came here but are leaving Ekatra (together).
- Oh! Nice! - Thank you.
- Thank you so much. - Thank you.
[euphoric music playing]
Minakshi and Aishwarya,
we salute the business idea of
moving ahead with everyone together.
What turn will it take on Shark Tank today?
We are true believers that if you want to make an impact
you can't do it by yourself. You have to create a community.
This will speed it up where we can
get more people on to our team
- we'll be able to create more impact. - Nice.
I really hope the impact you are trying to create
is created soon. But nonetheless, you
are trying to get a great change in society.
And Acko welcomes this change.
We want you to write a small message and sign
our Acko Change Makers wall.
[dramatic music]
I am very impressed with you both.
Like Acko insurance's 0% commission policy
your attitude is a game changer too.
Just believe. Very powerful message.
Congratulations on the deal.
Thank you for coming here and congratulations
for being on Shark Tank.
Thank you.
'Today's Shark Xperience'
'features a question by Raj from Warangal.'
'Anupam, you're very successful and have achieved so much.'
'Have you considered retirement?'
[chuckles]
You know, my dad told me something one day.
'The day…'
'Give me retirement the day you want me to die.'
He said it in jest of course.
But it has a profound message.
A man needs to keep himself occupied.
Work is worship in a way.
If you have no work,
then you grow extremely restless.
At least I do.
I don't understand anything.
My mind is no longer in control.
And it throws you completely off balance.
The word retirement isn't in my dictionary.
I don't think I will ever retire.