[theme music playing]
[theme music fades]
Whoa!
Hey! Have you heard?
Aman just had the classic case of the 4 pm hunger pangs!
Are you serious?
It happened even with my friend Vineeta.
They were both alright until the afternoon.
- I wonder what happened. - They are crazy.
Sharks.
Does this happen to you?
The journey from morning's high-protein breakfast
to a healthy homemade lunch
is very easily made.
But the moment the clock strikes 4,
the world comes to a halt.
You become oblivious to your surroundings.
The only thing you are cognisant of is your hunger pangs.
I agree.
And you gorge on samosas, pakoras,
biscuits and fried chips.
But, Sharks, don't worry.
We have a solution to your 4 pm hunger pangs!
The superhero of snacking, Green Snack Co.!
Alright. Nice.
My name is Jasmine Kaur.
I am the CEO and co-founder of Green Snack Co.
My name is Chetan Sharda.
Our products are made of ingredients
that are healthy for your body.
[euphoric music playing]
But we didn't give up.
We grew the business again step by step.
Over 10 lakh people have already tried our products.
By way of Shark Tank,
we want to reach all those people
who strive to better their lives as well as health.
Our ask is Rs. 1 crore for 2% equity.
Jasmine and Chetan...
- Yes. - Welcome to Shark Tank.
- Thank you. - Thank you so much.
Who doesn't like healthy food?
- Yes. - So, very relevant point.
And I'm assuming you are related.
- Yes. - We are husband and wife. You are absolutely right.
- Tell us your background. - Yes.
What is your education?
How did this business idea occur to you?
- Tell us about your journey. - Sure.
I graduated from Delhi University.
Okay.
I did my MBA from LBSIM, Delhi.
What was your role in Marico?
I was handling the retail part of the business
for this brand called Kaya.
They wanted to launch a skincare format.
I set up the business from scratch.
From the name to where it would be opened.
- Hiring teams... - Did you manage its profit and loss?
Yes, entirely from scratch.
That was almost an entrepreneurial venture for me.
Fantastic!
Sharks, I did my schooling and graduation from Delhi.
I did my MBA from Symbiosis.
I came to Mumbai through the placement.
I spent 8 years in real estate.
And then, Jasmine gave this opportunity to me.
- Let's start this... - Oh! I love the way you've put it!
- I love it. - Yes.
- That's why she's the CEO. - Oh, yes! Absolutely.
This actually stemmed from a personal pain point.
I belong to a Punjabi family. I'm a sardarni.
Yes.
I've eaten loads of butter chicken during my life.
- Owing to that... - Good job.
I experienced weight gain and all of that, so...
Why aren't there products
that are authentically healthy
- as well as really tasty? - Hmm.
Honestly, as a Punjabi, I don't want to eat anything that's not tasty.
It's as simple as that.
The product has to be tasty.
I didn't get that balance at the time that I started out.
Our motto is
that you should be able to have these products daily.
It's not like I eat them now because I'm following a diet.
If we should be eating it daily, then why don't you offer them to us?
- Absolutely, right away! - Right away.
My habit has rubbed off on them.
[Sharks laugh]
Hello. Thank you.
- Yum! This looks really good. - Thank you.
- Wow! - Ah, nice.
- It's quite spicy. - Hmm.
But you won't believe that this is our number one selling product.
But we've coated it with dark chocolate.
- Coated it. - It tastes good.
- It's very good. - It's great.
- I tried it. - It never occurred to me
that quinoa puffs and chocolate make a great combination.
- It's amazing. - It's such a good substitute
for my 11-year-old who loves chocolate.
- Children prefer this. - And what's this?
This product is called Super Stix
which is made from ragi and soya.
Yummy!
- Just amazing. - It's very tasty.
Very yummy.
What is your current split between offline and online sales?
Our online business gives 10 to 15% sales.
- Okay. - And 85% of sales are offline.
And quick commerce is another 15 to 20%.
- Within 85%? - Yes, right.
Out of offline,
how much is modern trade and how much is general trade?
Out of the 100% of offline sales happening right now,
Okay.
That it contains 1130 mg of sodium.
In 100 gm.
Isn't that too much?
[intense music playing]
And you know that sodium is the biggest enemy of heart health.
What have you done? I ate the whole thing.
We do not use any artificial flavour enhancers whatsoever.
So, salt is present at a basic level
and that is what gives you a rounder snack flavour.
Otherwise, you don't feel like you're eating snacks.
I mean, that's the honest truth.
- Is this healthy? - Yes.
Sir, it's absolutely healthy.
As compared to normal snacks, it contains 50% more protein,
50% more fibre,
and a lot more micro-nutrients and others.
Jasmine, I don't agree with you.
Yes, take a look at the information chart on the back.
I was looking at it too. I have marked it.
Let us rephrase.
- Right. - This is healthier as compared to normal snacks.
But that's not called healthy.
[intense music playing]
- Sir, this is definitely better for you. - Okay.
This does not contain
a lot of ingredients that mainstream snacks do.
Whether it is preservatives, MSG, artificial flavours and colours,
and others things.
- Can you give me the revenue numbers? - Yes.
- Tell me about your growth in the last few years. - Yes.
When we started in 2015-16, our annual revenue was Rs. 40 lakhs.
Then in 2017-18, we hit Rs. 2 crores.
And then again,
we had a revenue of Rs. 5 to 7 crores
on an average before covid.
And when covid hit,
- it was majorly impacted. - Could you quantify it?
Put it in numbers.
If you look at the revenue for 2020-21,
it dropped by almost 50%.
We did a revenue of Rs. 2.5 crores that year.
But last year, our revenue was Rs. 4 crores.
- Very nice. - We will definitely cross it this year.
What was it last month?
- Six... - Last month's revenue was Rs. 25 lakhs.
What's happening? Why is business slacking?
[intense music playing]
The business has dropped.
[tense music playing]
- Even back then, you did it without any funding. - Yes, right.
Then why just Rs. 25 lakhs now? Why have sales dipped?
- Sir, we did raise funding back then. - Ah!
We raised the first round of funding in 2016.
It was through angel investors.
They invested Rs. 1 crore.
I wish to add something here.
We had reached Rs. 70 to 80 lakhs net revenue
and we were to raise a large Series A.
But because covid set in, that round didn't happen.
- And we could raise just Rs. 5 crores. - Hmm.
And this was right before covid.
And you raised Rs. 5 crores still.
- Yes. - What was the valuation? Was Rs. 5 crores a bridge round too?
The 8 and 5 crores together... It's actually 8 and 5.5 crores.
- How much... - 53% equity.
Is it equally divided between you two?
- Yes. - Yes, equally divided.
and hit Rs. 2 crores sales per month.
- So... - And are profitable too.
What skill do you think is missing?
Sir, the biggest thing we feel that's missing is working capital.
We have a lot of pending orders...
- But you've raised Rs. 25 crores... - I am talking currently,
which is the time after covid.
What was last year's loss?
- Around Rs. 1.5 crores. - Rs. 1.5 crores.
[tense music playing]
We brought our burn down,
that earlier was Rs. 50 to 60 lakhs per month,
to Rs. 20 lakhs a month.
Now, we are almost at breakeven.
I'd like to add one more thing if we talk about pre-covid.
You need money to run an FMCG business
and that's the reality.
If you want to reach out to the customer offline,
you have to spend
be it any format.
I don't agree.
[intense music playing]
And the second was Let's Try.
Both are doing good business and a healthy business.
And they're building a profitable business.
So, I'd like to be out of this deal.
[tense music playing]
You've already raised a lot of funds.
[intense music playing]
Secondly, I am not clear on your financial metrics.
I don't know how you will make money.
For those two reasons, I am out.
I, too, have made my decision. So, let me tell you.
[tense music playing]
I generally don't invest in companies
with questionable health claims.
[intense music playing]
Okay? This is the biggest issue.
The second problem I see is
you suffer from legacy thinking.
You worked in FMCG and private banking for so many years.
You've got this in your head that there are a fixed set of rules.
And businesses run on those rules.
Disruption is the way forward.
And now is a time to build frugally.
You have to break the rules to create great businesses.
You are not able to break those rules.
And in a cluttered market, you are hell-bent on
getting more funds to make this business grow.
So, I think you should rethink,
reassess and re-evaluate.
For those reasons, I am out. All the best.
[melancholy music playing]
I have a problem with the sodium content.
[intense music playing]
I don't think it's the healthiest thing,
But I wish you the best. I cannot be a part of this journey.
[sombre music playing]
On Shark Tank, we have seen businesses from small cities
coming here with profitable food brands.
They have cracked the art of using marketplaces well.
Even now, going by your ratio, you're relying on offline.
This used to be in fashion back in your time.
But you need a new-age cofounder in my view
who is an expert in digital marketing.
It'd be better to get someone like that on board I feel.
I think there's a lot for you to still learn
despite spending so much money.
[intense music playing]
So, I am out, but I wish you all the best.
Four Sharks are out, but Vineeta is left.
How much money is left in the bank?
About Rs. 10 lakhs is what we have in the bank.
Wow!
How will you pay next month's salaries?
Working capital will be needed...
If you're so worried, make them an offer.
Please mind your own business.
Good job.
The truth is, without mincing my words,
you're at rock bottom.
You're in a tight spot.
We have orders worth Rs. 40 to 50 lakhs per month.
Out of which, we supply worth of Rs. 20 to 25 lakhs.
Predominantly there are working capital concerns.
- If you don't get funding from here... - Yes?
I don't think you'll get it from outside.
You barely have funds left.
Will you try to run this business for the next 5 years
or will you think of shutting this down and doing something else?
[intense music playing]
We have definitely spent a lot of time on this business
and we wish to give it our best shot.
We personally believe in the philosophy that
you can play only as long as you're in the game.
If you're out, then you're out.
If I had shut down six months ago
for the lack of funds or the fear of running out of them,
I wouldn't have been here today.
The product and brand have it in them.
That is why we do sales of Rs. 25 lakhs even today
without any marketing.
During rock-bottom situations,
the learning you get as a founder,
I believe, is special for life.
I have been there when I had Rs. 10 lakhs in the bank.
I offer you Rs. 1 crore for 8% equity
at a valuation of Rs. 12.5 crores.
More than three times that.
- Wow! - And with the assumption
that you won't burn this money as you did from the previous rounds.
You'll grow it profitably
and deploy it only towards working capital.
[intense music playing]
And you'll generate profits.
Congratulations.
- You have an offer. That's amazing. - Thank you.
And this is my final offer.
[intense music playing]
Okay, Vineeta. You have a deal.
[camera shutter clicks]
[euphoric music playing]
Vineeta, aren't you crying?
- No! - Don't lie.
I saw you shed a tear.
Good. It was a heart-touching
- and emotional deal. - Heart touching.
Good...
Thank you.
Jasmine and Chetan remind me of myself.
When we had a few lakhs left,
someone lent Rs. 1 crore to us.
We used that Rs. 1 crore
to revive the business from rock bottom.
And we never let them down.
I have implicit faith in Jasmine and Chetan.
I know they'll make a Rs. 100 crores business with this 1 core.
[theme music playing]
[theme music fading]
- Hi, Sharks. - Hi.
We learned to paint when we were children.
And even those who didn't learn it,
regardless of what they drew on the walls of their home...
- True. - They were drawn to art and colours.
But as we grew up,
we forgot those artistic skills.
But during the lockdown, we all had enough time
to hone our skills
and do something that truly brings us joy.
For this reason, during the lockdown,
many people devoted time to their hobbies
and tried to do something new.
And during the recent lockdown, we received inquiries
for raw materials.
India has very few trusted raw material suppliers.
And only ready-to-stock products are usually sold.
Can artists justify their art with these boring products?
No. Just as we are different,
so are our creativity and imagination.
With a solution to this problem,
we come representing Hobby India.
Greetings, Sharks. My name is Vaibhav.
I am Shruti.
Hobby India is an art brand
that offers a variety of
art, craft and DIY products.
If artists need a new product as per their needs,
we even offer the option of customization.
We have over 5000 products
with over 15,000 variants.
In the last 18 months,
we have delivered over 22,000 orders to more than 12,000 customers.
Wow!
and reaching every artist out there.
Our ask is
Rs. 50 lakhs for 3% equity in our company.
This combination is rare of a husband, wife and sister.
Why did all three of you think of coming together?
When I lost my job,
I used to handle accounts in his previous company.
Okay.
Look how it all worked out.
You guys are unbelievable!
Tell me something. What are your 5000 products?
We make one product
and offer 100 to 300 designs in it.
We give options for three to four raw materials.
We also provide around 10 size options to choose from.
A kids' name board for instance.
You see plain as well as painted ones here.
We supply plain ones as well as painted ones.
We also have artists working for us.
- But everything is in the DIY format. - Yes.
- So, you provide a kit. - Yes.
And your customers make it themselves.
So, you don't sell ready-made products.
We do. We have two collections.
- You have ready-made products! - Yes.
If you've brought us a bribe, do bring it here.
[euphoric music playing]
This has to be painted.
- Yes. - Yes.
This is made from the log of a tree. Wow.
How much do you sell this for?
Around Rs. 220 to 250.
It's not like this is some unique business.
A lot of people do it.
No. Nobody in India offers such a range and variety.
What are your sales?
- Rs. 1.5 crores. - Well done.
That was our first year.
We started the business in March 2021.
- Nice. - Good.
- Rs. 1.5 crores in a year. Nice. - And last month?
Last month's sales were Rs. 21.5 lakhs.
- Wow! - Wow!
All of it is online.
ready-made products and DIY kits?
It's Rs. 21 lakhs.
Oh, Rs. 21.5 lakhs! So what is the split?
The ready products of home décor
contribute to 15% of the sales.
You mean the ready-made products.
- Yes. - So the majority of sales are of DIY kits.
Yes, DIY.
90% of our customers are women.
Around 35% of the sales are from South India.
15% of our sales are from Mumbai,
around 15% are from Delhi
and the remaining sales are from other states.
Are mothers buying for their children? Or how is it?
who buy these products and paint them
- for resale. - I got your point.
What items do the ladies in the Southern market
mostly order?
And how do you make it to send it to them?
For example, the Pre Mark you are holding.
Yes. Its base and ring are ready with us.
but the design carved in it
is selected from more than 200 designs available with us.
We design them only after we get an order.
It's not readily available.
The base has thickness variations too.
They could be 6 mm, 8 mm or 12 mm thick.
There are size variations from 6 inches to 24 inches.
We have a plethora of designs.
After we get orders,
we divide the orders into slots of 15.
Then the product gets ready,
we pack those items and then they are dispatched.
I'm quite surprised
to hear about the procedure.
You said that you manufacture in batches of 15.
So you have set the SOPs
to customise the products and ship them at the earliest.
Who set these SOPs?
Wonderful! How many people work there?
We have 28 employees and all of them are females.
Why so?
- Great! - Good job!
Are you the only male there?
- Yes! I'm the only one. We have a group photo too! - Bravo!
That's good. You are like Lord Krishna Kanhaiya.
There are fewer people here as it's an old photo.
Awesome! [laughing]
Please explain the unit economics and how you manage
to get orders and traffic on your website.
Most of our traffic is through Google.
We have been using SEO for one year.
Typically, what do people search for?
What search terms direct them to your website?
For example, if you write DIY products, our website will be shown.
If you write custom name cut-outs,
we'll be visible at the first rank in the Google search.
We have been trying for some keywords since last year.
While we have achieved first to fifth ranks for some keywords,
we need to get ranks for the remaining keywords.
- Who looks after that? - Who takes care of SEO?
- I take care of it. - Amazing!
two content writers and one graphic designer.
How come you thought of forming a team for SEO in Surat?
I have observed that companies in Mumbai and Bengaluru don't have
an in-house SEO team until their business grows enough.
Actually, my travelling budget
- is equivalent to my learning budget. I go to seminars. - Awesome!
Wow!
I read books.
Your answers have floored us.
The learning budget is equivalent to the travelling budget!
It's more than travelling, actually.
I read in a book
that we save a budget for recreational activities.
During your thirties, you must have a budget
- for learning too. - Amazing! Gosh!
I want to say this...
You may use the recreational budget during your retirement for parties.
I will give this example to 10,000 kids at least.
Please give me a pen to note down. I'll use it in my future dialogues.
[laughing]
Let me rephrase the pitch.
I want to make a pitch. Will you join my company...
Will you invest? [laughing]
- Will you invest some money and join us? - Please be our employee.
- You have to give us money. - We'll get money and tips too.
What is the market size of crafts and arts? The market of enthusiasts.
Do you have an idea?
It's just 5% of the total market.
There are 2 lakh artists. So I made an estimate
Basically, there is no USP
or anything different about this.
This market is already so crowded.
So your business doesn't make me think
you have something unique here.
But I don't think this is investible
where an investor will get a certain return.
And for that reason, I'm out.
Sorry to interrupt, but you didn't ask us about our profit.
- Getting there. - [Sharks laugh]
[hysterical laughter]
You just said, "One Gujarati to another."
- Yes. - Let's talk business!
Our average order value
has been Rs. 1280 this year.
Out of it, the product cost is Rs. 410.
We offer free shipping for orders worth Rs. 1200 and above.
- The shipping costs Rs. 160 per order. - Okay.
- Alright. - Then the processing,
that is factory expenses, salaries and all,
With marketing,
- Every month? - Yes, every month.
- What! - Last month, we made Rs. 21.5 lakhs.
Of which, orders worth Rs. 11 lakhs were from repeat customers.
- You said your customer acquisition cost is Rs. 180. - Yes.
That's inclusive of the repeat customers?
Or is it Rs. 360 with new orders?
Only new customers.
- So, add Rs. 90 for every repeat customer. - That's Rs. 90.
You left the half.
Yes, Rs. 400.
How much do you save out of the Rs. 21 lakhs?
Rs. 6.5 lakhs.
Can I say something? The way you answer
and clearly explain your unit economics
is rare among the founders who come here.
They usually get confounded. Well done!
- Yes, very well done. - Thank you.
- Are you really 26? - Yes. [chuckles]
Looking at you, I'd call you a seasoned businessman. Seriously.
[laughs]
So, how much business are you expecting this year?
Until 20th September, our sales have been Rs. 1.17 crores.
We want to scale up the factory.
Right now, our capacity is to process 80 orders per day.
- This month, per day... - Then take a loan.
- You have profits to show. - Yes.
I agree with Aman. Raise funds. Why look for an investor?
We need your support for branding.
We could always take a loan or even get loans from family.
But we're looking for funds along with a learning experience.
And you get some marketing too.
- We'll handle the marketing. - [unanimous laughter]
[Sharks laugh]
I really like your answers.
[laughs]
When she breaks into Gujarati, expect an offer.
- Yes. - [Sharks laugh]
You're an excellent founder.
My offer is Rs. 50 lakhs for 20% equity.
- Okay. - Okay.
Your valuation will be Rs. 2.5 crores.
That's 2x your last year's sales of Rs. 1 crore.
and explaining everything so well at such a young age.
I don't understand the market size, though. It's going to be small.
But your spirit of entrepreneurship
is why I like you guys so much.
- I started my company in Jaipur and built it on SEO. - Yes.
CarDekho is the first website that shows up when you look up cars.
You're doing well. Market size is an issue.
But it doesn't matter to me.
It's clear to me that whatever the size,
this is a profitable business.
Now don't copy my offer.
[Amit laughs]
Overall, my offer to you...
If you're okay with it, Vineeta, I'd like to be a part of your offer.
- If you're okay with 50-50. - Alright, we'll partner up.
- Both of us for the same offer. - Okay.
- Vineeta's offer is Rs. 50 lakhs for 20%. - Rs. 50 lakhs.
10% each. We'll split it.
- I am going to be out. - [tense music playing]
I'd like for Vineeta to win this deal.
For that reason, I'm out.
[Sharks laugh]
It was great meeting you. I know I learnt a lot.
But since I cannot assess the market size...
You will crack it. Come on board.
- [Vineeta laughs] - No, surely.
Also, I think you got a fair offer with two Sharks.
You can make something big together.
And it would make me really happy.
But I'm out.
So decide what you want.
You may take a few minutes to think and make a counteroffer.
[intense music playing]
No, he's not oversmart. He's amazing.
Thought clarity, to the point, transparent, honest...
- Transparent. - Grounded, humble, smart.
[intense music playing]
Alright, welcome back.
[intense music playing]
What's your decision?
Our counteroffer is Rs. 50 lakhs for 4% equity.
You know, I studied in Chennai for 4 years.
The autorickshaw drivers there negotiate like this.
When I quoted Rs. 20 from A to B,
- they countered, "Rs. 500!" - [Aman laughs]
How's this going to work out? This is pitiful.
But I feel if you think it should be 4%,
it's fair negotiation on their part.
Yes.
I'll make a final offer. Take it or leave it.
Rs. 50 lakhs for 15%.
Amit and I will come on board
Why not?
As per the valuation, we will make more revenue
within one or two years.
So, we cannot accept this offer.
So, you reject these two?
- Yes... - No, just their offer.
- Sure, no problem. - It's alright.
I don't mind this rejection. You're doing well, and keep it up.
- Thank you. - All the very best from our side.
You're the new face of India.
- Thank you. - Thank you.
- Best of luck, guys!
Thank you so much. Bye.
SOP and SEO!
- Two were doing in-house SEO. - Both, SOP and SEO.
- A fantastic founder. - Amazing founder!
I think I should spend some time in Gujarat.
What business sense!
- The air alone will change you. - I think so too. Seriously.
Their business ideas and ideologies are fantastic.
Such good sense. They know everything.
And I'm going to use that line on my employees.
- Yes... - That one...
What's your travelling budget versus your learning budget?
[theme music playing]
[theme music continues]
[theme music fades]
- In this day and age, you can get anything easily... - Hmm.
Except for space.
Whether it's relationships or your home...
- [chortles] - There is a lack of space everywhere.
There's so much struggle for space
- that we have to optimise space everywhere. - Hmm.
And we have found a solution to this space problem,
and let us show you how.
I'd like to invite three Sharks here.
Vineeta, Aman and Namita.
Alright, let's go.
- You have to sit on it. - On this?
Yes.
- I hope you're comfortable. - You're comfortable?
- Yes. - Can you just...
Get up? I'll get up.
- Oh! - How nice!
- Wow! - Now three of us can sit.
- Yes. - Please come and sit.
- Please sit. - Now we will be
- the three idiots. - You'll fall!
- Three musketeers! - Three idiots.
Three idiots. No, Gandhiji's three monkeys.
- See no evil. - Okay, done.
This sitting is made of paper.
That is recycled paper.
And it can hold up to 300 kg.
Very nice. You extended it so easily.
That was incredible.
[music playing]
- You all must have seen a beehive. - Yes.
The hive holds all of the honey.
- How does it hold up so easily against gravity? - Hmm.
Because the structure of the honeycomb
- is made up of numerous hexagonal cells. - Right.
[uplifting music playing]
My name is Shilpi Dua,
and I'm an architect and a product designer.
Flhexible is a sustainable
wall partitions and many kinds of pet and desk products.
[uplifting music playing]
And water is not at all used in the process of the production.
And you can use them for 10-12 years without worries.
- Wow! - You can buy them online from our website,
or on Amazon.
And ever since, we have sold more than 250 products.
this country's biggest space-saver furniture and product brand.
Our ask is Rs. 50 lakhs against 7.5% equity.
Thank you, Shilpi and Abhimanyu.
- Welcome to Shark Tank India Season 2. - Thank you.
How do you know each other?
- We're husband and wife. - Yes.
And we met in 2003 when doing our graduation.
- We spent 10 years together and we got married in 2013. - Wow!
- You've been together for 20 years. - Yes.
- And you're working together? - Yes.
- How does it feel? - And you have the same career?
- Yes. - What's honeycomb?
- Tell us about the pattern. - Okay.
This is a technology
where alternate layers of paper are glued together.
- Yes. - When you open it, they form a hexagonal geometry.
These hexagons are made of equilateral hexagons.
One hexagon has six triangles.
Ikea has been using it for so many years.
We used the same technology to start our company.
[uplifting music playing]
What's its price?
It's Rs. 7500.
Rs. 7500! That's too much.
- Too high. - [tense music]
How do we do its strength test?
To what extent can we stretch it?
For example, if I take a block of honeycomb
which is half an inch thick and one by one foot in dimension,
that piece can endure a load of one tonne.
- Wow! So much! - Compressive strength.
With the increase in the size of the cell,
the strength will lessen and its weight will also lessen.
We used this technique to make house walls
and then we used the same technique to make furniture too.
You talked about IKEA.
They make the packaging material with hexagonal-shaped material
- instead of polystyrene. Is it true? - It's 100% true.
Let me make it clear.
IKEA doesn't just use it for packaging,
they use it for their furniture too.
They won't disclose it. They'd say, "it's a composite material."
They'd never say, "the table is lightweight
as it's stuffed with honeycomb."
- It's stuffed with honeycomb. - Yes!
That's an interesting point.
I also believe the same.
As far as furniture are concerned,
it's a gimmicky business.
[dramatic music]
Let me tell you the reason.
It's a nice item to be given as a gift.
We can buy a few items for household needs
but it can't be made a lifestyle.
Let me list a few things.
Firstly, it isn't pet-proof.
If you have a pet cat at home
and it claws at it,
- the furniture would fray at the corners. - Yes.
Secondly, dust-friendly!
Dust will collect at the sides.
And that's the reason
IKEA uses them
as an internal reinforcement
instead of using them to make the body of the furniture.
I feel that it isn't enough
to build a business. I'm being frank with you.
[sweeping music]
- Is it kids-proof? - Yes, of course!
- Of course. - Until we soak it in water
or cut it with a cutter intentionally,
it would be fine.
Nowadays, kids roam around the house with a pair of scissors.
- It can be damaged intentionally. - Kids are difficult to control.
You are projecting this product
as furniture to save space.
You're right in saying that its price is high.
It's because our backup is small
so our margin is less and the cost is high.
If I make 5,000 pieces of the same product,
my cost will reduce by 30%.
In that case, it'll be affordable for the masses.
Can you tell me how many products you have sold till now?
It'll make it clear if your product sells or not.
I already told you that we have sold more than 250 products.
Our last year's revenue was Rs. 16 lakhs.
[sweeping music]
- What about the last month? - Rs. 3.5 lakhs.
How much was corporate gifting out of Rs. 3.5 lakhs?
60%!
There you go.
Alright. Your business is non-existent.
[dramatic music]
- Are the walls included in Rs. 3.5 lakhs? - No!
What's the revenue for walls?
The revenue for walls is Rs. 32 lakhs.
It is Rs. 32 lakhs. Why aren't you sharing a consolidated figure?
Why are you reducing your company's size?
It's different. We are pitching only for the flexible segment.
It's part of the B2B segment.
So you earn profit from the other business
and you came here to ask the Sharks for investment.
Actually, our parent company is Hexpressions.
- They make walls. - Hexpressions Megatech Pvt Ltd.
They make only walls.
So, you need investments for which level?
For parent level
or for this company's work?
Flhexible.
It manufactures furniture.
You could have combined them as they are small businesses.
And none of the Sharks will allow it.
Do you earn a profit?
Our gross margin is 40% right now.
How much money do you save?
- Last month... - 25%.
- How much did you save? - 25%!
Alright.
I have made my decision.
[suspenseful music]
I think it's a gimmicky product.
Your sales figures also hint
that it's a gimmicky business.
For those two reasons, I'm out.
[suspenseful music]
I made my decision too.
I think you entered this field with good intentions.
"We want to do something that's different
and innovative." But
it's an early stage business.
Rs. 16 lakhs sales are as good as pre-revenue.
Right? Moreover,
there's no tried and tested model globally
that can give confidence
to the investor that this company can scale up.
I don't think this model
is scaleable in India's context.
Okay.
And for that reason, I'm out.
- Okay! - Okay.
I made my decision too.
You two are passionate about design.
I think your B2B business of walls
has some scope
because, you know,
it isn't a gimmicky product. We can see some use cases there.
I think you must focus on that business and make it grow.
The fact that you're doing sales of Rs. 4 lakhs per month
is a clear indication for an investor
that there's not much consumer demand for your product.
People could buy it as a novelty to show off
but they won't buy it again.
For that reason, I'm out.
- Thank you! - Thank you!
I have a few questions.
What kind of work do you want to do?
- Do you want to do shoddy business or become a business tycoon? - What?
- What do you want to do? - What do you mean by shoddy?
- A small business. - I think "shoddy" is a strong word.
I mean an ordinary business.
- I mean work done at a small level. - Okay.
Earlier you used to teach us English and now you're teaching Hindi too.
Did you understand what he said?
I got it. I'm a Rajasthani.
I mean a small-scale business. I hope you got my point.
[dramatic music]
I'm trying to understand
what you want to do.
Our vision is to make affordable homes for all with this technique.
My friend, it's unaffordable.
I made my decision.
As far as I understand
your business,
you are suffering a loss.
For this reason, I'm out.
I don't think you should pursue this business.
That's my view.
Please use your talent at the right place
because you may launch a new company with a new idea.
I'm out for that reason but I wish you all the best.
- Thank you so much. - Thank you!
- Good luck, guys! You are smart people. - Thank you!
You can do something good.
- Thank you so much! - All the best!
- Thank you so much, Sharks! - Bye!
[ethereal music]
I think this innovation is ahead of time.
- People won't buy such expensive products. - No, it isn't!
- Indians won't buy it. - It's an unnecessary innovation.
It won't sell globally.
They studied and to use their knowledge they made this product.
- They are academic people. - It happens sometimes.
A wonderful product is made but it's never in demand.
[ethereal music]
- Hello, Sharks! - Hello!
- I want to recite a proverb. - Please!
"If you study well, you'll become a king
but in case you play, you'd be spoilt."
[laughing]
If you study well,
- you could become a doctor or an engineer. - Right.
If you focus on gaming, you'd be a loser.
I was in a similar situation
when I tried to tell my Indian parents
- that I want to be a gamer. - Ouch!
My mom slapped me hard.
[laughing]
And my dad made a committee comprising my aunts and uncles.
[chuckling]
They compelled me to sign a contract stating
if I fail to achieve a respectable level in gaming in a limited time,
- I'd leave gaming. - A contract!
At that moment, I decided to be a gamer.
And I launched my brand Upthrust Esports.
[inspirational music]
Hi, Sharks! I'm Kartik Sabherwal
from Jhansi and I'm 21 years old.
- Wow! - Wow!
Hi, Sharks! My name is Vaibhav Kumar.
and produced too.
There are plenty of events for different games
but they are virtual.
For example, the man of the match in cricket,
the best bowler and the best batsman are given varied prize money.
Also, the winners are given a trophy.
Similarly, the winning gamers in our gaming events
get different amounts of prize money
and trophies.
We broadcast our gaming events on YouTube
where we have more than 3.5 lakh subscribers.
We broadcast these events
on Loco too
which is an Indian gaming platform.
[inspirational music]
Aside from our brand,
in our events
to connect the brands with their target audience
through their advertisement.
Upthrust Esports reached 10 crore people in the last two years.
We have organised more than 30 gaming events
whose pool price is around Rs. 1 crore.
is worth Rs. 18,000 crores.
Our vision is to become
the top organisers globally.
We want to provide a platform to gamers
where they may showcase their talent.
- Our motive is to empower e-sports in India. - Wow!
Our ask is Rs. 75 lakhs
for 3% equity.
It's next to impossible to compel Indian parents to say that.
- You said there are 42 crore gamers. - Yes.
I can authoritatively say this
because I started the first gaming company in India.
It's called Mauj Mobile.
I agree that there are 42 crore gamers
but most of them are casual gamers.
Correct! Basically, we cater to the mid-core and the hard-core.
Currently, hard-core professional gamers
are more than a million in the year 2022.
Are your parents happy with your work now?
They asked me to earn
Rs. 50,000 within six months.
- Go on. - I earned Rs. 5 lakhs within six months.
- Woo-hoo! - Then they never asked.
I salute you, boss.
- Will you show us a demo? - Yes.
Sharks, we'd like to show you a live demo for a better experience.
The world of sports has hosts and commentators.
Similarly, the world of e-sports has casters.
We'd like to introduce you
to a professional e-sports caster
who would brief you about the games.
- Can we bring them here? - Sure!
[dramatic music]
- Hi, Sharks! - Hi!
I'm Speedo and I'm a professional e-sports caster.
[upbeat music]
Today we'll play New State Mobile.
The rules are simple.
The Shark who scores the first two points
- would win. - Gosh!
[epic music]
- Where is the gun? - You'll see it now.
- Now you may move forward. - How do we shoot?
- Use this. - "Shooting!"
- Which one? This? - Yes!
As you know, it's a one-to-one competition.
As they are new, they are trying to explore the controls.
They want to figure out what they can do.
- And here you go! He won a point! - Yes!
- Anupam scored the first point. - He got a point but not me.
And yes, it's 1-0.
Well done, Anupam!
Sharks, this is how we execute it.
The middle part is the interface of the game.
The L-band on the sides is our interface.
- It's for the ads. - Yes.
Alright! The second round will start soon and...
Amit will try to make a comeback in this round.
Let's see how well Kartik guides him.
Here... Shoot!
- Yes! We won! - Yay!
- Anupam won this competition 2-0. - I got it.
Fabulous!
[amusing music]
Wonderful commentary. Thank you so much!
- Superb! - Thank you, brother!
I don't understand the revenue model.
I'm sorry but I don't fathom it.
Our revenue model
is of five types.
- Five? - Yes!
- Please tell us. - When we organise events
on our channel, various brands advertise.
- You mean advertisement revenue. - Correct!
Not just advertisements, we give our streaming rights
to Loco for a particular event.
They pay us some amount in exchange for that.
So ads and streaming rights give revenue for owned events.
Correct! We outsell our production
and do white-label events too.
We connect the brand with the influencer.
- So it acts like a marketplace. - Yes. Correct!
Okay, got it. Then?
We also do brand integration.
Kartik and Vaibhav, let's try to understand your industry.
but still, let's break up this industry.
[sweeping music]
Let's take the analogy of films.
There's a studio named Marvel.
- You are not a distributor. - No.
Making a business in this line is possible,
but difficult when it comes to investing in it.
You basically are an e-gaming organiser as of date.
And you can build a business to a certain extent.
Say 2 crores, 5 crores or even 10 crores.
But beyond that,
how will you disproportionately scale
so that I get returns as an investor?
[intense music playing]
That's not clear to me. You have not been able to explain.
- Would you like to say something? - Yes.
Basically, the revenue we generated last year
was only from August to March and was Rs. 59 lakhs.
This year, in six months,
we've generated a revenue of 3 crores.
- What! - Wow! Well done.
Because I believe you won't be able to scale beyond a certain point.
I will however praise one attribute.
There's a saying, "Make your passion your work"
"and you won't work a day."
You did that.
Your parents must be proud and that's a matter of pride.
But I am out.
Good luck.
I, too, have made my decision.
We can help you if we have a particular business acumen.
We can give you mentorship and capital.
But in this area,
- I have no expertise whatsoever. - No expertise!
So, I can't help you one bit.
And for that reason, I am out.
But I wish you the best.
In sports, the top-level players mint money just as in reality.
- Will that happen here? - Yes, it will.
Top players make millions of dollars.
Even in a game of cricket, there are 16 players.
But everyone is passionate about representing...
Wow! What an answer!
and how easy it is to get into the market...
I am not sure you have a moat
to prevent other people from competing with you.
So, I can't invest in this now.
But best of luck and well done.
I believe in Esports.
I believe Esports is the future
which is evident from your business.
I doubt
that what you are doing are a small-level
esports competition and its sponsorship.
You know, Dell is organising competitions too.
As is Intel.
So, what do you have in you to deal with this competition?
The brand names you just took outsource to production companies.
They hire people like us
and companies like us to organise their events.
I would like to be out not because I don't believe in it.
I'd have invested if I found the business profitable.
If this is the future and is inevitable, so be it.
But this is production and not a platform.
I wish to be out.
Aman, you're the only one left.
I want to tell you that I, too, am out.
May I ask you a question?
What was your profit out of Rs. 3 crores?
- Last year's net profit... - In the last six months.
30 to 35%.
Why are you raising funds?
Build your production company.