[theme music playing]
[theme music continues]
[theme music fading]
Hello, Sharks.
Sharks, I am fed up with my scrap dealer.
Do you get worked up thinking about
whether your scrap dealer's weighing scale is functioning properly?
Whether his rates would be as per the market or not?
Does your scrap dealer come over at a time convenient to you
or as it fancies him?
Moreover, as a responsible citizen, the most important thing is
whether your scrap will even be recycled or not!
Hmm.
Scrap dealers don't know if they'll get work daily.
Customers call them to give scrap but send them empty-handed.
[music playing]
Sharks, customers and scrap dealers face these problems
because this sector is extremely unorganised as well as neglected.
Sharks, don't you agree that when local stores can sell online,
then why not scrap dealers?
I come before you with a solution to all these problems, Sharks.
This scrap dealer doesn't holler.
My ask is Rs. 60 lakhs for 3% equity.
[Sharks laugh]
- Welcome to Shark Tank, Mukul. - Thank you.
Tell us your educational background.
How did you think of this idea at such a young age?
People normally don't.
Sir, actually, I've done BTech from IIIT-Delhi.
I ran a start-up of drones before this.
The drone start-up didn't work out.
ScrapUncle had been on my mind for a really long time.
The idea was in my head.
I was interested in robotics since childhood.
My uncle is a scrap dealer.
I got a fair idea about how the sector functioned.
When I moved to Delhi,
I noticed unorganised sectors were being converted into organised ones
by Swiggy, Zomato and others.
I thought about which services were yet to be offered online.
Then I thought of scrap dealers.
This is an everyday thing but hasn't gone online as yet.
I began my research.
I explored all the scrap markets there were.
Then we established ScrapUncle.
[music playing]
What does your family say?
They thought you'd do well after studying at IIIT Delhi.
But when someone asks, they have to say
that you deal in scrap.
Let me tell you what happened, sir.
I won awards for my drone start-up.
I even went to the US twice.
So, they were convinced that I was intelligent
and I knew something.
[chuckles]
But the problem began
when I brought scrap dealers to our apartment.
[Sharks laugh]
- To understand the business. - What!
So, they lived with you!
They still do.
[laughs]
Explain to us in detail.
[Sharks laugh]
- You brought the haven home! - You brought it home!
When we started, we followed the Uber model
in which we onboarded local scrap dealers on the app.
This has only gone from offline to online.
But the problems of weight, quality of service
and on-demand still persist.
During the first wave of covid, we realised that
this was a recession-proof business.
It grew by 4x at the time.
People were just sitting at home and decluttering.
And any extra money was welcome.
That's why our orders increased.
I realised another thing.
I studied the competition in this sector
for their failures.
They had introduced the tech, but they didn't know the business.
When I met them, they confirmed
that they didn't know much about the sector.
They brought in the technology and the scrap dealers came on board.
But they didn't know the business or how a scrap dealer made money.
Then I realised
I'd have to immerse myself in this if I want to do the business.
So what I did was...
Bring them on board!
I found two scrap dealers. [chuckles]
- He's laughing. - I hired them.
How else would I learn from them? There was no time.
- They do pick-ups from morning till night. - Yes.
But I wanted to know the business in depth.
I wanted to ask them what problems they faced during the day.
What did the customers say and how did they like the service.
I need time for it. They return at 9 pm.
So, I spent time with them during dinner.
- That... - Hats off to you!
- Amazing. - I can't figure out
- if you're mad or just proficient. - No...
- No, sir... - But hats off to you!
Can you tell me how much money who makes?
Here's what happens.
A normal scrap dealer on a cycle visits the neighbourhood
For instance, one who deals in paper takes only paper.
Similarly, you have metal scrap dealers.
Then there are people with money and power
who get things done on the phone with the help of money.
This business runs on credit.
The payment from the recyclers comes in late.
We eliminate those few players...
- Which players? - Those with money and power.
Okay.
Apart from that,
we have directly reached the recyclers in some cases.
In which cases have you directly reached the recyclers?
Iron and electronic waste.
That's a lucrative vertical.
Sir, on average,
How much did a scrap dealer normally make?
Your collection partners do all the pick-ups, right?
Let me explain. Earlier, it was just our dealers.
We then discontinued it
- and made pure collection partners. - Okay.
Who are mini truck owners.
- Okay. - Regardless of whether he's an existing scrap dealer.
I am aware only of Delhi.
- How many are there? - Around 12,000.
- 12,000. - Yes.
If we talk about Delhi alone, it's a 2 billion dollar market.
- the business should have been way more than this. - Yes.
What are the restrictions?
Sir, firstly, we are bootstrapped.
And you have this fear when taking up a fresh expense,
given our mentalities.
A lot of money is stuck in the working capital.
Apart from that, we even bought vehicles at the start.
You mentioned the problem of working capital.
- Yes? - About not getting credit. How did you solve it?
Did you borrow money from your dad?
- How did you solve it? - No, we got a grant from Columbia University.
It was around Rs. 23 lakhs.
- Was it purely a grant or did you give equity? - Yes?
No, Rs. 23 lakhs plus GST was the grant.
But there are a lot of these companies nowadays...
Even the government has streamlined things.
A lot of companies have entered scrap trading. What do they do?
The focus of the government and these companies
is entirely on plastics.
But the customer wants a one-stop solution.
He won't call one dealer to collect just plastic items
and a separate one for e-waste.
He wants a single person.
And this is how the supply chain works.
The scrap dealer takes all the scrap.
At 25, your clarity of thought
and your thought process
- are amazing. - Thank you.
- You possess humility, you know? - [chuckles]
You have the desire to learn from them.
You don't act like you know everything.
The best part is that you've brought dignity
- to the job of a scrap dealer. - Hmm.
Why don't people know about ScrapUncle?
I'm from Delhi. I have absolutely no idea about it.
We started this full-time in August 2020.
[tense music playing]
Tell me quickly if you've made any sales.
- Yes... - Do you make profits?
Yes. Our current monthly sales are Rs. 27.5 lakhs.
- Like... - What is the customer acquisition cost per customer?
No, I said our gross margin was 25%.
But when we do sales of Rs. 1 crore, our expenses won't seem big.
Fine, I've made my decision. Let me tell you.
I had never imagined
that scrap could be such a great business option.
When you walked in, I couldn't figure out your business.
- I didn't understand what was happening. - Hmm.
Now, I have understood that this can be a business too.
- Hmm. - You're an honest man.
You said everything so earnestly.
You weren't afraid of what people would think. It was good.
But my opinion is that there's still a lot of work to do.
- Operational challenges await you. - True.
I wish to be out for now, but hats off to your determination.
Thank you.
Let me tell you. Currently, sales are Rs. 27.5 lakhs.
- No, just... - I must admit you're unbelievable!
Current sales are Rs. 27.5 lakhs. Okay?
Rs. 7 lakhs are remaining.
But when sales are Rs. 1 crore,
I will still have that 25% left, right?
We're not far from hitting 1 crore. It isn't a big number.
- Yes, I believe you. - So...
When we'll be left with Rs. 25 lakhs,
this fixed cost of ours, which is now Rs. 3 lakhs,
- will have become 5 or 6 lakhs. - Absolutely right.
We will have the remaining margin.
Forget Rs. 1 crore.
- Suppose you start doing sales of Rs. 10 crores a month. - Okay.
Secondly, the competition will grow.
- That, in turn, will increase your customer acquisition cost. - Hmm.
You have repeat orders today due to a lack of competition. Okay?
How do you intend to solve these two problems?
One player is just not enough.
A few more players are bound to join in.
And then all these players will become big.
There are so many metro cities and the scrap is a lot.
It will just increase.
I don't know whether every city will have a king
like ScrapUncle for instance,
or you single-handedly
- will be able to make a business pan-India. - Hmm.
But I feel you're passionate and possess clarity.
I want to bet on that.
So, I'll offer you Rs. 30 lakhs equity
for 5% of the business.
Which is a valuation of Rs. 6 crores.
And for your working capital needs,
I'll give you Rs. 30 lakhs debt at 12% interest.
But let me tell you something honestly.
I don't see where I can add value.
And for that reason, I am out.
Okay.
Car scrapping as a business is gaining momentum.
It could be a new line for your business.
We have options for cars too, sir.
- We recently did a tie-up with a big vehicle scrapper. - Wow!
This is an important moment for our industry
- where cars that are 10 to 15 years old will be scrapped. - Right.
The volumes will be so high.
Billions of dollars will be generated
from cars that must be mandatorily scrapped by law.
Are you making an offer or not?
I will make an offer, Vineeta. It will be better than yours.
- That's why he's listening. - [laughs]
I don't believe in debt.
I feel you have a requirement for working capital.
I want to give you Rs. 60 lakhs equity upfront.
- At what percent? - I am not done.
- I am telling you. - I like this guy.
- I like this guy. - You don't waste a minute to celebrate your wins!
You straightaway...
I will give you Rs. 60 lakhs now matching Vineeta's offer
of Rs. 6 crores.
I want 10% equity.
- [hysterical laughter] - 60...
- Rs. 60 lakhs for 8%. - A bidding war.
Hang on a minute.
Wait, I'm revising my offer.
I'll take 7%. Rs. 60 lakhs for 7% equity.
Let me summarise it for you.
The offers will be revised by the time I'm done.
One offer is Rs. 60 lakhs for 7% equity.
Anupam's offer is Rs. 60 lakhs for 6% equity.
Vineeta is just breathing calmly.
[hysterical laughter]
Look, here's my last and final offer.
Rs. 60 lakhs for 5% equity.
You took too long. I am out.
I don't want to do any deal.
Look, this business is operationally very heavy.
Second, your frequency of purchase is very low.
Once a month or two months.
When that happens, brand loyalty weakens.
- You said you won't give sermons! - So...
- I was just going to say that! - I...
I don't give sermons if I make an offer.
But I will if I withdraw my offer.
You're a wonderful person
- and I salute you for the work you're doing. - Hmm.
I'm out.
Fantastic!
We have a deal, sir.
Keep rocking. You did amazing.
- Mukul, you're awesome. - Thank you, Mukul.
- Thank you. - You're a really cool dude.
Thank you so much.
[theme music playing]
[theme music fading]
Sharks, we've been listening to comparisons since childhood.
"Sharma ji's son is good at studies."
"Sharma ji's son is good at sport."
[Sharks laugh]
But we've forgotten to appreciate one Sharma ji and that is my mom.
Oh! Amazing.
Aw.
Greetings, Sharks.
Just like all mothers,
I, too, want my family to stay healthy
and my kids to eat healthy food.
That's why we've always sourced our flour from the mill.
But one day I was busy on account of my job.
We couldn't get the grain milled and also, it started raining.
So, we had no choice but to buy a packet of flour
and make rotis with it.
We did eat the rotis,
but neither were they tasty nor was the quality good.
At that time, it occurred to me that there must be many women out there
who must be facing the same problem.
- So I decided to set up my own flour mill. - Wow!
And I set up a flour mill in my town.
Sharks, we asked our customers what their demands were.
What consistency of flour did they prefer and of what grain.
We gave them flour that met their needs.
Sharks, we didn't stop at that.
We took a nutritionist on board
who understood the health problems of our customers,
and we'd recommend our flour to them based on that analysis.
So, Sharks, our ask is
When someone asks you which brand of flour you buy,
your answer should be, "Sharma Ji Ka Aata."
- [laughs] - "Sharma Ji Ka Aata"!
[laughs]
- [unanimous laughter] - [mumbling]
Is your brother involved in the business or not?
Unfortunately, ma'am, he passed away in December.
- Oh! So sorry to hear that. - Sorry to hear that.
But he has always been a source of inspiration to me.
He told me something I remember when we saw that one episode
- of sisters-in-law who owned a pickle business. - Yes?
He used to motivate me by saying,
"The sisters-in-law will take their flour to Shark Tank one day!"
Wow! How sweet!
[sentimental music playing]
You wish to make this a national brand
to dedicate to your brother.
- Yes... - In heaven.
What do you do, sir?
I was inspired by her.
Due to personal reasons, I was compelled to take up a job
and support the family.
But my mom was so passionate about this product
that I didn't want there to be any roadblocks.
So, I took the responsibility of...
- I began helping her with operations. - Understood.
When did you join?
- I'm doing a job since 2017. - Okay.
I help her with operations part-time.
- Do you also do a job alongside this? - Yes.
- You began milling the grain... - Hmm...
Because it was an indulgence and not a necessity.
No, it was both.
- Did you need it for your family? - Yes.
You could have brought the grinder home.
No, small machines won't guarantee efficiency
- if I wish to do this commercially. - Yes.
With bigger machines, there is greater efficiency
and grains are stone-crushed.
The quality, taste and texture of the flour
that stone-crushing renders is not something the machines can do.
You mentioned two things. First, that there was a need.
- And the second was if you had to go commercial. - Yes.
So, I have a feeling
that you were compelled to get into this business.
Or was it something else?
In 2016,
my younger son underwent major intestinal surgery.
Within a week of that, my husband suffered a massive cardiac arrest,
and both were fatal conditions.
- Oh my God! - Oh!
My entire savings
and the income from the business went into paying hospital bills.
I spent over Rs. 40 lakhs in two years
only on medical bills.
- In due course, we all recovered. - Nice.
- Very good. - But my husband's heart
pumps only at 25% capacity.
I asked him to quit his job before the covid hit.
I told him it was our business and we'd expand it.
I told him he could oversee the deliveries
and I'd handle marketing.
What you have done takes a lot of courage, Sangeeta.
You've done a commendable job.
What a heart-touching story!
You helped your family come out of a financial crisis.
Hats off!
- Thank you. - Thank you so much.
- I'd like to say one more thing, sir. - Yes.
I didn't spend a rupee on marketing.
I wanted to try and save money in every way possible.
I market my brand on free groups on Facebook.
- There must be at least 1000. - Wonderful!
My routine from 4 to 6 am is
that I drop a message on all the free groups on Facebook.
When people wake up at 6 am and check their notifications,
it'll strike them to replenish flour at home.
Lovely!
- [sentimental music playing] - [applauds]
It will surely strike them and this does happen.
We harp on about marketing, but this is true marketing!
Understanding the customer!
Yes.
You put yourself up to the job.
That's marketing fundamentally put, right?
- Yes. - People get into the technicals
like retention, replenishment reminders and others.
But you went by the first principle and did this yourself.
Let me get to the delivery of our products.
I didn't have money to hire delivery boys.
I later realised that
if I hired someone for this job, people would not know me.
I used to take my son, who underwent surgery,
along in the car with me.
I used to give him a soft drink or munchies.
And I used to keep the bags of flour in the boot of my car.
People were extremely cooperative.
"Ma'am, don't come upstairs. We will come to you."
They'd come downstairs
and collect their bags of flour from the boot of my car.
Nice.
[uplifting music playing]
You have proved one thing.
People believe, especially in our country,
that generally men are better at business and women are not.
- Yes. - I believe that's the perception about women
because either they don't wish to do it
or they never had the opportunity.
You had to go through it and you did an amazing job.
You have set a good example. So...
[sentimental music playing]
- And there's always a breadwinner in a family. - Yes.
Here, you are literally the breadwinner in the family.
Yes, I am.
Here, behind every successful woman, there's a man.
A progressive man.
Why 40 SKUs?
We do have 40 SKUs which is a bit too much.
But going forward, the SKUs will decrease
as we know the generic taste and which ones sell more.
What sells the most?
Sharbati wheat flour contributes to 70% of the revenue.
Sharbati wheat!
Sharbati. Yes, it's wheat.
What comes after that?
Then comes multigrain, jowar and bajra.
Could you show us your products
- so that we know what it is that you exactly sell? - Yes.
[euphoric music playing]
What are you offering us?
- What's this? - Roti.
- There's missi roti and multigrain roti. - Wow!
[uplifting music playing]
Do your customers buy from you because this is better in taste?
Or because you don't add a particular ingredient
or preservative?
We do not add preservatives at all.
It's delectable!
[euphoric music playing]
Tell us about your sales.
What will be your profit?
Yes.
Talking about our local grinding.
This is possible as we have two machines.
People bring their grains to us to mill them.
That contributes to another
Rs. 80,000 to 90,000 revenue per month.
That's entirely profit.
- Yes. - Right.
What's the price difference
between your per kg rate and that of normal flour?
How much business do you get through the community?
And how much is through online and D2C channels?
I need you to teach me modern-day trade.
Look. I don't think a revenue of Rs. 10 to 15 lakhs a month
is a big deal.
You need more capital as well.
I believe you shouldn't take investment for the business.
That investment will be
accompanied by a lot of problems.
You see, you'll have to give 10 to 30% returns to your investor.
And the investor will expect you to work in a certain fashion.
I am convinced that you've understood this business
and you wish to run it in a particular way.
You won't tolerate much interference and you shouldn't even.
For this reason, I am out.
Heed my advice.
Many accelerators out there
can teach you modern marketing
by taking only a percentage of your revenue.
And I am happy to introduce you to them
and support you in any way.
But I don't think you should take any investment.
Not just from me, from anybody.
The rest is up to you. All the best.
I agree with Anupam.
At this point, you should not accept investment.
Go solo.
Build your business to a certain extent.
You're profitable, right?
Anupam can introduce you to accelerators.
Similarly, I, too, have many connections in modern retail.
- I am from Pune. - Yes.
I am happy to meet you and share my network with you.
But I don't find it investible at this point.
And so I am out.
You'll inspire a lot of people in India.
I am interested in such causes and wish to support them too.
I'm not sure whether the business will become big, I'll be very frank.
We'll need to work together to find a strategic pivot
with respect to finding high-margin categories.
And we'll do it.
My offer is Rs. 40 lakhs since that's what you asked for.
Rs. 20 lakh equity and Rs. 20 lakh debt
at a 12% normal interest rate.
We'll grow it together.
Ouch!
The one saying "ouch" didn't even make you an offer.
This is why. It hurts.
Then keep the pain.
[intense music playing]
It's a very sarcastic deal. We call it a sarcastic deal.
[tense music playing]
I'll make you an offer too.
I can help you tie up with Amazon Fresh and Instamart.
Avenues that could make your delivery cost reasonable.
This... And of course, we'll improve the packaging.
We'll make it a brand with a story.
And your story is solid.
Your story, the one dedicated to your brother, is very solid!
But what Amit said is right.
Valuation is decided based on your current scale.
It's really difficult to give this business a higher valuation
than Rs. 1 crore.
My offer is Rs. 20 lakhs for 20% equity.
And Rs. 20 lakhs debt over and above that
at a 12% interest rate.
I believe Vineeta would be a good partner for you.
[laughs]
[intense music playing]
If that's what you think, Vineeta and I can give a consolidated offer.
You have good offers. So I am out.
And best of luck.
Vineeta and I will come on board together.
Vineeta's offer is better than mine.
I'd like to join Vineeta in her offer.
So, you'll have both Sharks.
I'll repeat the offer.
We will give you Rs. 40 lakhs.
Hey! Stop whistling like a pressure cooker!
No, I was just...
Just remember that this guy didn't offer you a deal.
Sharks, we have a counteroffer.
Don't do it. Don't take debt.
What's your counteroffer?
I offer you Rs. 40 lakhs for 20%.
You were out, Anupam! Where did you come from?
Is he allowed to do this?
No, he is out.
I don't want them to take a loan.
- We're hesitant to take a loan. - Hmm.
Is there a way by which we can eliminate the loan?
Give us a counteroffer.
My offer is Rs. 40 lakhs for 20% equity.
If they rule out the debt component,
I'm out of the deal. I don't have a problem.
[intense music playing]
But if they don't, my offer stands.
- You can take my investment. - [mumbling]
Do not take a loan!
Fine. You two decide.
- Look. - End of topic.
I'm trying to explain to you.
Let me calculate the equity of the investment.
And we'll give you Rs. 10 lakhs debt interest-free.
He was out of the deal. He didn't believe in you.
I was very clear that you shouldn't take an investment.
I also told you why.
But you've made up your mind to take the investment.
I am against you taking debt.
Look, this is a better valuation for you.
So, it's a better deal. Now, you need to decide.
[intense music playing]
Anupam, we...
- You accept! - We accept.
Go on, Anupam. You took my deal.
You may hand over the cheque. No problem.
You had no faith in their business. Now, you're handing them a cheque!
[uplifting music playing]
- Thank you so much. - Thank you.
[uplifting music playing]
- Thank you. - Sangeeta.
- All the best.
- Thank you.
- It was nice to meet you. - You're amazing.
- Absolutely. She's incredible. - Thank you.
It was nice to meet you.
[euphoric music playing]
- Breaking rules is not allowed! I'll do it too. - Yay!
Everything is fair in love and war.
If you're out, how can you come back?
It was a very sweet gesture and good for her.
- It was great for her. - There was an emotional angle.
Come on, it's good for...
- Emotional... - Anupam's emotional deal.
[sweeping music]
[musical instrument playing]
'A lot is happening here.'
We are launching two new flavours
and we are preparing for the same.
Aman will be here any moment
- Are you excited? - Yes, we are excited.
[musical instrument playing]
Manas!
- Good to see you. Awesome! - Thanks for coming.
I remember the way he started his pitch.
"Until now, you bought chips from greasy Anna.
Now it's gone!"
'You will be freed from greasy Anna.'
'And it's time for us to embrace quality.'
'Introducing Beyond Snack Kerala Banana Chips.'
'Our vision is to make a packet of Kerala banana chips'
'as popular as a packet of potato chips'
'in the Indian retail market.'
'Sharks gave him a promising deal'
'after being impressed with the product.'
Shark Tank transformed my life.
My business has grown by leaps and bounds.
[drums beating]
The banana chips production is overflowing like water.
'We are introducing two new flavours today.'
Very nice!
He is employing our input and that's the biggest thing.
'Teams are built and the number of retail outlets has increased.'
[motivational music]
My dream of selling a packet of banana chips
alongside a potato chips packet is being fulfilled.
Shark Tank covered all the aspects of our business and helped us grow.
I can't even think what I would have done without Shark Tank.
My life is completely changed.
[triumphant music]
[upbeat music]
- Hi, Sharks! How does my hair look? - Hello!
[funky music]
They look nice, right?
They didn't look like this earlier.
Since my childhood, I struggled to manage my curly hair.
"Noodles! Witch! A broom!"
- Such comments were quite common. - My God!
And it marred my confidence.
My journey was quite similar
so I went to the salon regularly and got my hair straightened.
It resulted in dry and damaged hair.
I experienced hair fall too.
Sharks, this problem isn't limited to us.
Around 60% of people in the world have curly, wavy and coiled hair.
Either they don't know their actual hair type
or they don't know how to manage their hair.
Finally, when we embraced our curly hair,
we couldn't find curly hair products in India.
We had to import products from the US and the UK. It was too expensive.
We wanted to make international quality available in India.
So we launched MANETAIN.
Hi, Sharks! I'm Hinshra.
I'm 25 years old and I'm from Kochi, Kerala.
'MANETAIN'
MANETAIN is
a one-stop solution for hair products and hair accessories.
Our products can be used by all hair types.
For example, straight, wavy and curly.
and every frizz is a curl waiting to happen, our lives changed.
We want to bring the same change in the lives of other people too.
Good job!
To do that, in exchange for 2.5% equity in our company,
we seek an investment of Rs. 75 lakhs.
Wonderful!
- Welcome to Shark Tank! - Thank you!
I love your colour-coordinated outfits.
And I love your curly hair.
- Thank you! - Thank you!
You are looking gorgeous.
Thank you so much!
You said that people made fun of you.
At what point did you feel,
"I want to enjoy my curls"?
What was the trigger point for the two of you?
In 2016-17,
we discovered The Curly Girl Method.
It's a book written by a stylist.
The name of the book is Curly Girl Method.
Then we found the right way to manage such hair.
There are certain rules that you must follow.
Your hair product requires certain ingredients
and we must fulfil those requirements.
My wife has curly hair too.
She bought some hair products similar to these and now people
ask her if her hair is real or fake.
- And now... - We face that question a lot.
Now the curls look nice.
Actually, earlier she didn't know
how to manage her curly hair. It's a common problem in India.
Actually, everyone can use them.
Its ingredients are clean.
It's sulphate, silicon and paraben free. It's water-soluble too.
Your scalp health will improve with constant usage.
So everyone can use them. It suits all kinds of hair.
We'll talk about your product later. How do you two know each other?
How did you two become friends despite a big age gap?
Earlier, we had groups in our community.
- Yes! - Oh, wow!
Unbelievable!
Where can we find this group?
WhatsApp, Telegram, Facebook, Instagram and other such places.
We became good friends.
Then we decided to do something for our community as it had potential.
- Did you two live in the same city or different cities? - No.
- We lived in different cities. - We used to talk over the phone.
Do you two live in the same city or different cities now?
- I live in a different city but I keep coming. - She does up and down.
- Where is your company based? - It's based in Mumbai.
Is it convenient for the two of you?
Our business runs online.
Our responsibilities are divided
and Hinshra looks after the online work.
And I handle manufacturing, dispatch and other such things.
What is your educational background? And what's your expertise?
Namita would be interested to know that.
- I'm a dentist by profession. - Wow!
I have a science background
- What about you? - I have a business background.
I pursued BCom and then I worked at Deloitte as an audit assistant.
I launched MANETAIN around that time.
So you aren't working for any other business right now.
I suffered a personal loss during Covid.
- Sorry! - So I'm helping in my family business too.
Otherwise, I work full-time for MANETAIN.
How big this market can be?
An article published in The Economic Times in 2018
mentioned that it's a Rs. 200 crore industry.
It's growing by 6% every year
and it's a Rs. 250 crore to Rs. 300 crore industry right now.
It's a wrong figure. It's about the p who're buying such products right now
You must say, the market for hair products is worth Rs. 15,000 crores.
Alright.
- Can I show the products? Do you want to see them? - Yes!
[ethereal music]
- What is this? - It's the best-selling product. Conditioner.
Okay. I'll just check these two.
[ethereal music]
Argh!
- Rs. 1,250! - Rs. 1,250.
What are your total sales?
Sir, our net sales were worth Rs. 12 lakhs for the last month.
Average net sales for the last six months was Rs. 10 lakhs.
And for some hair accessories, it goes up to 75%.
What is your customer acquisition cost?
It's around Rs. 200 to Rs. 250.
Firstly, the price point
is in the range of Rs. 1,250 to Rs. 1,650. Let's round it to Rs. 1,000.
I have spoken to other hair brands that keep specialised hair products.
They sell online products worth Rs. 500 or Rs. 600 with difficulty.
In India, the market for products priced at Rs. 1,200 and Rs. 1,600
is not even 1%.
You spent 3-4 years in this business but you don't have a pricing sense.
Secondly, this category is a word-of-mouth category.
Primarily, the girls who have this problem should know about you.
The influencers having curly hair should have recommended you by now.
- Yes! - I think there is an execution gap.
Your scale is too small compared to other brands
that have scaled profitably in lesser time.
So for that reason, I'm out.
It's an early stage for me
because your sale is just Rs. 1 crore.
The pricing is too high.
It's too early for me but I wish you the best.
- Thank you! - Thank you!
Do you sell on your website or the marketplaces?
- We sell on marketplaces too. - What's the split exactly?
Nykaa is in process, Sublime,
- and Vanity Wagon and we have a small distributor too. - Alright!
My question is as it's so difficult to sell these,
how do you sell products on Amazon and Nykaa?
Our agency for performance marketing
is managing our business well since they came on board.
We have observed constant growth in Amazon sales.
Why don't you do it yourself? Or you don't have the time?
Sir, we don't have expertise.
I don't agree. Let me tell you that when we started out,
a performance marketing agency might not give you good service.
You should have knowledge too. You're managing them so you should
also know what they are doing.
- Yes. We are constantly in touch with them. - It's a small agency.
- They are a hands-on agency. - It's a small agency.
I made my decision too.
Let me tell you, I had an interest in this category and the product.
The problem is if you want to make a mass premium brand,
you need a marketing instinct.
And I find that missing in you,
based on
the way you have packaged and priced your product.
For that reason, I'm out. Good luck!
- Thank you! - Thank you!
Firstly, let me tell you candidly that you need to face the truth.
Your branding is atrocious in my view.
If your product is placed like this, I can only read MANETAIN.
And if it's placed this way, I can read only 'soap clean'.
When the product is kept on the shelf, what would people read?
You can't increase your customers based on the value proposition.
Your whole pitch was based on curly hair and its maintenance
but none of your products mentions that they are meant for curly hair.
You should showcase the value proposition.
My last point is, I think you two are doing it for passing your time.
[dramatic music]
For 4 years you've been distracted by your other income sources.
I feel there's a lack of founder commitment.
Amit, isn't 'passing time' a harsh phrase?
Yes, it is. And I want to be harsh because that's the way we should be.
A founder must put 100% effort into their business.
They can't juggle multiple professions.
I advise you two to come together and stay in one city.
Then you get the passion to think of new ideas.
Lastly, I think digital marketing
can play a big role in your business.
In my view, it's difficult for your product to pick up on its own.
I want to be out today but I wish you all the best.
- Thank you! - Thank you!
Why fear when Aman is here?
[laughing]
I think you aren't passing time.
[dramatic music]
When I started my business, I didn't have money.
I consulted two to three brands that helped me run my household.
An entrepreneur needs to do other jobs too to grow their business.
Aman, nobody does it for four years.
It happens. They may work until their business scales up.
But four years! Are you serious?
- It's a point of view. - Point of view.
You may stay in different cities. It's not a problem.
It happened to me too. We made a big company and it's doing well.
Now people are working from home so I don't agree with that.
[dramatic music]
Your product is fine and you two are passionate entrepreneurs
but you need a person who can run the business for you. Do you agree?
- Yes, we feel that too. - So I have an offer for you.
It's a conditional offer.
[thrilling music]
It's based on the fact that you'll appoint a CMO
who will take care of your business.
As everyone said that there are packaging issues. That's true.
Yes!
Brand vibes-related issues too.
You must focus on performance marketing.
- You need to appoint a CMO. - Okay.
My offer to you is Rs. 75 lakhs
Can we say we need to talk in private?
Yes! You may say that. We heard it. You may go.
Yes! [laughing]
- Can we counter you? - Yes, please.
Sir, Rs. 75 lakhs for 7.5% equity.
It's more than the revenue multiple people are getting nowadays.
And I don't want more than 10%
because I think your future CMO or co-founder
will need some equity too.
I like you two and I understand
that you don't have an idea about the valuation.
That's the only help
I can give you because I can feel that you don't know
a lot of things. And I can guide you. That's it!
Correct!
- Okay. The deal is done! - Thank you!
[joyful music]
- Good job! Let's do it. - Aman's favourite colour is pink.
- Thank you, guys! - Well done!
[joyful music]
Priya will get a lifelong supply now.
Free products for her. She spends a lot of money on these products.
Priya will be ecstatic.
Aman, you won't get your money back.
- I hope he gets them back. - I'll get them back.
'In today's Shark Xperience segment, Anupam,'
'Anmol from Pune has a question for you.'
'I'm curious to know'
'who gave you the first investment cheque of your life'
'and when?'
In the middle of 2005, I realised
that competition will increase in future and we'd need investment.
Back then VCs and PEs weren't a norm in India.
So I packed my suitcase to go to the US.
Reputed VCs could be found in Silicon Valley.
I took rounds of that place for a week.
I had several meetings. I went to Boston, New York and Washington DC.