'MeduLance, with its helpline'
'and the technology support from back end,'
'provides an ambulance on an average of 20 minutes.'
'We have saved the lives of 8 lakh people'
'and also helped 2 lakh covid patients.'
'What a noble cause you're pursuing at such a young age.'
'BOWLED.io is the world's first sports-based social gaming platform'
'where cricket fans worldwide can win some real money rewards.'
'Real money.'
'Sharks, just like Monginis,'
'we want Cakelicious in every neighbourhood.'
[upbeat music playing]
- '- Unreal. - You brought just one to taste!'
'Freakins is a denim fast fashion apparel brand'
'which launches new styles every week'
'for Indian women's body type.'
- '- Great. - I have her on the back.'
- '- Wow! - This is Lenskart's eyewear.'
'I converted my traditional family business'
'into a digital e-com company with Toyshine.'
'Our ask is Rs. 1.25 crores for 0.5% equity.'
- '- Wow! - Wow!'
'A valuation of Rs. 250 crores.'
'Tell me what your sales are.'
'Sir, we did Rs. 45 crores last year.'
'Last year! Then you can demand that valuation.'
'Let's begin with the questions.'
- '- Correct. - [Sharks laugh]
'Rs. 5 crores for 5% equity.'
'Wow! Huge! Biggest offer on Shark Tank ever.'
'I'm out if you don't talk to me.'
'Let him do that if he wants.'
'We are already in.'
'You're taking too much time. We feel we're not important.'
[theme music playing]
[theme music fades]
- Hi, Sharks. - Hello.
You must have heard of the saying
that no one learns things straight from the mother's womb.
But I speak from 40 years of experience
delivering over 10,000 babies,
and I can confidently tell you
that a mother's womb is a child's first classroom.
[sentimental music playing]
Sharks, the nine months of pregnancy
and the two years post it
is extremely important when it comes
to a child's physical, emotional and mental development.
During this phase, the mother and child's lifestyle
needs to be monitored very closely.
Today's unhealthy lifestyles,
in the mother's womb itself.
[intense music playing]
Doctors don't give patients more than 5 minutes.
There's a lack of guidance owing to nuclear families.
And the existing pregnancy trackers and communities
do give suggestions,
but are unable to bring sustainable changes in the current lifestyle.
Greetings, Sharks. I am Ravi Teja.
I am Mayur, and we are from Bengaluru.
iMumz guides and monitors expectant mothers 24/7
and acts as a lifestyle coach.
designs a schedule they should follow
and ensure that they adhere to it.
We started 2.5 years ago.
Sharks, our ask is Rs. 70 lakhs in exchange for 1% of our company.
Come, let's transform future generations with iMumz.
Welcome to Shark Tank India season 2.
How did you all meet?
We graduated from IIT (BHU).
- Which IIT? - I...
- IIT (BHU), Varanasi. - Alright.
I come from a family
whose five generations have been ayurvedic doctors.
Oh, wow!
I respect holistic health
as well as the Indian and modern sciences alike.
Mayur is a techie.
We both had the zeal to do something big
in the field of healthcare.
How did you meet her?
Let me answer that.
I was the president
of the doctors and obstetricians organisation in 2018.
Oh, wow.
I am the third generation
of obstetrician-gynaecologist in my family.
My father-in-law, mother-in-law,
grandfather-in-law, my husband
and both my children are gynaecologists.
- Wow! - Nice.
Other than that, my husband and I,
did extensive work even in our organisation.
We travelled extensively all across the country.
When it came to the ground reality
and the everyday problems
of doctors and pregnant women,
that is something we were well-versed with.
Every day after I'd gone home,
I had this feeling of being incomplete.
I felt that I was not doing enough.
When a pregnant lady comes to me for consultation,
I felt I was not able to dissipate information,
and guide or suggest appropriate measures to her.
You see 50 to 100 patients a day
and you're also conducting deliveries and caesareans.
Peyush, India has 1 lakh doctors
- and 3 crore pregnant women at any point in time in a day. - Wow!
- Oh my God! - Wow.
In advanced countries,
the system of midwives and doulas lowers the burden on healthcare.
But, in India, the burden on healthcare is very high.
- When I met him, he was just 24. - Wow!
But I felt like angels have come in
because there was something which I wanted to do,
and there was somebody who was really committed
- Very good. - My God!
- Great. - We have to do this!
Let me take you through the journey of our user.
Okay.
They see two options the moment they download the app.
Pregnant or mother.
and last menstrual period date
- which tells us when their pregnancy started. - Hmm.
We also ask them for pre-existing health conditions beforehand
so as to design their lifestyle.
[music playing]
We offer two plans.
One is the premium plan
that we suggest lifestyle changes.
Like the relaxation exercises they are supposed to do
or the physical activities.
Or what raga they need to listen to.
We have designed unique and conscious baby bonding activities.
How do you talk to the baby in the womb?
It takes them 30 to 40 minutes to do all of this.
They can do it at any time from morning until evening.
Hmm.
We also conduct a lot of live classes
where experts directly
All this is in English.
- It's available in Hindi too. - The option is there.
Such apps on the internet are a dime a dozen.
[intense music playing]
Other apps only feature a few articles
that should be read.
We bring changes in the lifestyle every day.
Every mother will agree
to getting loads of content at the click of a button.
But no one will say what they need to do.
Actionable insights are lacking.
And that's what we do through our content plan,
or we have a service business
where we guide them to do that every day.
Let me give you my example.
My first child was a daughter
and she was born when I was doing my internship.
I had night duty every day. It was all so stressful.
I had my second child after 6 years.
I was at home and had a lot of support.
I would do yoga and listen to music.
Their personalities are completely different.
- This... - That can be natural as well as genetic.
- It is natural too, but coming to science... - How can you...
- No. Look, you're a doctor. - Yes.
Right? You studied at IIT.
In my opinion, it is not befitting to say this
unless you have scientific evidence..
- Yes. - Or validation.
Every person is different.
- Yes. - Don't we know that?
- Yes, Anupam. - Right?
Very true, Anupam.
But let me tell you
that if a mother goes through extreme levels of stress,
the stress hormones can even kill the baby's developing brain cells.
It impacts the IQ level.
The nutrition from a mother...
Do you have a study for this?
- There are so many studies already. - Numerous studies.
We also have our own study, Anupam.
No, it doesn't... That doesn't count.
[tense music playing]
- Actually, we're not talking just about yoga... - It's not true.
[intense music playing]
We're not talking just about yoga and meditation.
Your nutrition is important too.
These issues are highly debatable.
If we get into it, we won't come back to business.
You want to get to the stage of an offer, don't you?
So, let's take this further.
How many subscribers do you have and what are your downloads?
Peyush, we've had over 6 lakh downloads so far.
Okay, not bad.
We have an monthly active user base of 1.1 lakh people.
It's a 4.5 months average payment that we get,
Rs. 8000 is our ticket size for a personal plan.
In total, we've generated a revenue of Rs. 2.2 crores
from 30,000 paid subscribers.
In how many months?
- Two years. - Okay.
We added 1200 new subscribers last month.
We generated a revenue of Rs. 20 lakhs.
Rs. 16 lakhs was from our standard package
and Rs. 4 lakhs...
And how is this growing?
What was the number of subscribers three months ago?
750 subscribers.
Are you marketing for it?
Yes, we do.
Tell us about it.
We have three strong acquisition channels.
The numbers are very low.
1200 subscribers mean
just 40 subscribers daily.
And your price plans of Rs. 700 and Rs. 1,799
are quite steep.
Expectant mothers and new parents
are extremely passionate...
- No... - You won't get to tier 2 and 3.
- Paying Rs. 1800 for content per month... - Loss.
- In tier 2 and 3... - Forget tier 2 and 3.
You won't even make tier 1! You don't have a business model.
The content you're selling is available for free on YouTube.
Okay? One.
Two, there are many apps.
Healofy, which I'm an investor in,
is India's largest community of expectant mothers, right?
Subscriptions didn't work for them either.
They pivoted into commerce and are doing well now.
[intense music playing]
The problem is in rural areas.
You have no reach there.
And over there, you have outpriced the market.
You're not in the market.
[intense music playing]
Every target group should be offered
different things, Anupam.
25 to 30% content on our app is free of charge.
We can monetise it differently
with advertisements and products.
Anupam, I would definitely like to add one more thing.
Expectant mothers are in dire need of this.
- Yes. - It's because they need a support system.
- I agree. - Even in tier 1.
I totally agree.
Stick to your vision.
You said you wanted to solve India's problem.
[intense music playing]
You'll need to reach the vernacular target group and go in-depth,
explain things to them.
Will they be able to read the content in Hindi?
Or the content...
- Videos. - The video content will need to be in the local language.
That has scope,
provided you forgo subscription revenue in the short term
and invest, in my opinion.
Tell me your equity split.
We are four co-founders actually.
The fourth co-founder dropped out due to health reasons.
- The equity split between us is equal. - Equal.
It was the same valuation that I mentioned.
- Rs. 70 crores. - When was this?
Um, it was 1.5 months ago.
over 22 months,
You got Rs. 70 crores.
I do not want to disrespect the previous investors.
And because this is a very high valuation for me,
I am out.
But, honestly,
it's a great cause and we're always with you.
So, there sure is a need for your app.
My advice would be to somehow push this
and increase its usability.
Once the word of mouth increases,
then a lot of people will use it.
I am out for now.
But see you soon.
That consumer will be with you for maximum of 3 years.
9 months of pregnancy and then 2 years maybe.
If you try to sell them
the content at Rs. 700,
content or guidance plan,
it becomes even smaller.
When you try to make something niche
at premium pricing,
there is a very small segment
in India that will actually go for it.
Unless you're okay with making losses
and offering really cheap subscriptions.
You don't want to do that because then, you won't be profitable.
Right now, I believe the deal here is very deep funding.
I won't be able to help you much.
So, I am out.
Three Sharks are out.
Peyush, did you make up your mind?
- You decide, I'm contemplating. - Yes.
I will tell you my decision.
It's a noble cause,
helping the people of rural India.
- That's where pregnant women face challenges. - Right.
The problem in metros is negligible as far as my understanding goes.
My two sisters and my wife are in touch with a lot of people.
They have access to apps.
So, there isn't a problem here.
So, I don't quite understand what you're out to solve.
[intense music playing]
You raised funds at a valuation of Rs. 70 crores.
That's a great thing you did.
You have funds right now.
Use them, please.
And find product-market fit
so that you build a revenue model, okay?
Then you can scale and raise funds further.
So, I am out today.
But hopefully, Peyush will invest.
Dr. Malhotra, the challenge is...
The vision is great.
It's one thing to focus on the problem
and lose yourself to the cause.
And it's another thing to build a business.
This is headed in the direction of business, and fast.
If you lower the ticket size to sell subscriptions,
then revenue will decrease.
[intense music playing]
So, my concern is
that me coming on board or investing won't make a difference.
Rs. 3 to 4 crores won't suffice.
So, I can only tell you not to take a lot of money from me.
I'll give you Rs. 10 lakhs.
Okay.
Because you have funds.
Rs. 50 to 60 lakhs won't help.
I will give you the remaining as debt.
Rs. 60 lakhs debt will be at 10% interest.
'Advisory equity is one'
'where in exchange for someone's expertise'
'or strategic values, you provide them with shares of your company'
'without taking too much investment.'
'It is generally given for free.'
[tense music playing]
We'd like to discuss this.
Yes, please do. Come back quickly.
She will say yes to you, you know why?
It's because you provide business acumen and technology.
- I have a very strong feeling... - That...
- Yes, they'll say yes. Obviously, they'll say yes. - They'll say yes.
[intense music playing]
Welcome back. What have you decided?
Peyush, thanks for the offer.
We have a deal.
Congrats, you got a great Shark.
- Thank you. - Thank you so much.
- See you. - Thank you.
[euphoric music playing]
[bubbles rising]
Get-A-Whey is India's first healthy ice cream.
You and I are business people.
Let's do it!
The day our episode aired,
all the cities we supplied to back then,
saw their stocks running out.
We feel lucky
to have Sharks on board who were from different backgrounds.
One of the ideas was to partner up with restaurants
and have our ice creams on their menu.
In that connection, Aman helped us
by connecting us to around 6 to 7 restaurant groups.
Vineeta helped us learn
organisation structure and management aspects.
[buoyant music playing]
'They're a very creative and entrepreneurial team.'
Even with their name,
which was Get-A-Whey, it was a confusing name.
They agreed to a more easy-to-remember
and non-protein-focused name.
They even changed that name.
Hence, we decided to build something together.
She loved our product to the extent
that she said she wanted to invest in our company.
She recently invested a small amount.
With this partnership
and Shark Tank's help, we have established that 1 to 10.
Our target is to make a revenue of Rs. 300 crores.
We're headed in that direction now.
We've only just touched the tip of the iceberg I feel.
A lot of work in our journey is still pending.
[uplifting music playing]
[theme music playing]
[theme music fades]
Sharks, what's our new-age junk?
Unhealthy snacks.
We think of our stomachs as dustbins and keep stuffing them in!
Whether it be binge-watching Shark Tank episodes
or watching T20 matches.
The habit of mindless eating and binging has become so common
that it has birthed a Rs. 50,000-crore industry.
To make this habit nutritious
and guilt-free, we present The Healthy Binge.
and we're the founders of The Healthy Binge.
The Healthy Binge is a ready-to-eat snack
that is made from millets like jowar, ragi and quinoa.
[pleasant music playing]
On the weighing scale, to the left is The Healthy Binge,
and to the right is a packet of fried chips.
- It looks perfectly balanced, right? - Hmm.
- But looks can be deceiving. - [chuckles]
The Healthy Binge contains
dietary fibre equivalent to two apples,
iron equivalent to a bunch of spinach.
No way.
[chuckles]
- Protein equivalent to one egg. - Wow!
And calcium equivalent to half a glass of milk.
It contains comparatively less fat by 50%,
but is 100% tastier.
Wow!
What about calories?
we want them to rely on The Healthy Binge.
- Thank you, sir. - Thank you.
I was born in Nagpur and did my schooling there.
I later shifted to Pune.
I studied commerce at SP College.
I went to Australia for higher education.
I did my masters in finance from there
as well as did CPA.
I was working over there in various industries.
However, I had the urge to come back.
Every time my family and I visited India,
we always used to think why we were going back.
Our entire family is based here.
So, five years ago, we made the decision to come back.
I was certain of one thing.
I didn't want to return and take up a job in finance.
I wanted to do something of my own.
I wanted to do something in the food industry.
Here's the back story.
When I went to Australia for the first time,
I didn't even know how to cut vegetables.
But I learned cooking there.
The interesting thing was that my children...
They are very finicky eaters, both of them.
Two boys... Terrible eaters!
I always had the urge to cook something interesting for them.
So, I used to experiment with recipes for them to eat.
- So... - You're a hands-on father.
- Yes, absolutely. - Alright.
When I returned,
I was lucky to work with my father-in-law.
He's a renowned agriculturist.
I connected with farmers a lot then.
That's where I gained knowledge about millets.
They contain so many natural nutrients.
So, I thought why not do something in millets.
Make it into a modern snack so that everyone could relish it.
[pleasant music playing]
I grew up in Nagpur with Pranav.
Then I moved to Pune for higher studies.
We were planning on doing something for consumer-facing brands.
Since Pranav was already in the field
and we had millets, rice and others at our disposal,
we started this venture together.
Orange and purple is an amazing combination.
We did the complete designing together.
- The design is lovely. - Wow!
- Thank you. - I thought you approached an agency.
- Wow! - But very clean, clear and good design.
[uplifting music playing]
This tastes like Cheetos.
It contains cheese seasoning.
- In this masala, they usually add MSG. - [coughs]
- Guys, I have a question. - Sure.
And please be honest.
Do you add even a little MSG?
- Do you add that? - Ajinomoto.
- Not at all. - Alright.
- Very yummy. It's superb. - Thank you so much.
I cannot believe this is healthy.
- And it's quite affordable for Rs. 40. - Yes.
So, the idea was...
Fried chips sell obviously because they're cheap
and are readily available.
We wanted to make it available. That is a big task.
But at the same time, we wanted the pricing to be such
that someone who wanted to upgrade to a healthier option
could go for this.
What are your current sales?
Our sales have been Rs. 56 lakhs since our launch.
What!
In that case, always start with the last month.
You look better.
Yes, okay. Sorry.
What is the month-on-month growth for the last quarter?
What is your margin?
And then?
Our main burn is in salaries.
After 55% comes your marketing too.
When it comes to marketing,
our total expense is Rs. 1 lakh.
- That's Rs. 2 for marketing. - Yes.
Who do you pay salaries to?
We are not drawing salaries but we're booking Rs. 1 lakh each.
[intense music playing]
Along with that,
we have a food technologist and salespersons.
As also the production staff.
Is the food technologist making more products?
Actually, our manufacturing set-up
is an ISO 22000 and USFDA-certified facility.
We need food scientists to check the overall quality.
- You own the factory. - Yes, we do.
It's 15,000 square feet and located on the outskirts of Pune.
How much money did you invest?
We have invested Rs. 1 crore in total.
We grind the millets
and make flour out of them.
We mix it in this
and then we take it out from the machine.
They come out in this shape. They're literally white in colour.
We bake them to suck out the moisture,
and then season them.
Then comes batch coding.
We complete the entire process whilst maintaining strict hygiene.
How could you invest Rs. 1 crore in setting up a factory before sale?
Weren't you reluctant
or doubtful of what you'd do if the business failed?
We believe in our product. We have to back ourselves.
Don't you think that incumbents,
- who sell regular chips... - Yes?
At some point, this is not a big deal for them.
- Someone is popping them while some are baking. - Yes.
They can do it too.
It's not that easy.
We spent almost a year doing R&D and completed this.
- Being proprietary recipes, millets have a unique taste. - Hmm.
The integration we did with the product
is unique.
What is your factory's capacity?
Who's your competitor?
EAT Anytime, The Green Snack Co.
and Evolve Snacks, which come in the healthy snack category.
So many healthy chips brands have evolved
in the last season as well as this season.
If you go to the market, you'll see some more there.
What is happening?
There is a big market.
That way, we are unique.
We are in a position to grow better as well.
Who's the CEO? Elder brother or younger?
- Elder brother. - And you hold the same equity?
In April 2021.
I have a question.
When you both fight...
Do you fight or have disagreements?
We do have disagreements at times...
- On operational issues. - Yes.
How do you resolve it and don't you think it would pose a problem later?
- No, we talk it out. We're upfront. - Yes.
We do come across operational problems.
"I don't like this. You're not doing it right."
- He says, "We'll take it, we'll work on it." - Yes.
- "And I'll come back with a better solution." - Positive..
What if he doesn't meet the target?
Suppose he doesn't perform.
- He's not performing. - No way.
He's a very good salesman.
I will tell you a story about this as well.
We were returning from an event in Mumbai at 1 am.
We had boxes of the product.
He convinced Maganlal Chikki to buy them.
He sold snacks to Maganlal Chikki at 1 am saying they will sell.
- I think his D2C angle... - Yes.
His experience with Amazon will be very helpful.
I found you amazing entrepreneurs.
Thank you so much, sir.
I think it's early-stage and there are losses.
Yes.
- It might need more investment. - Yes.
I'm willing to go all in.
- Wow! - Thank you so much.
- If you want Rs. 1 crore, I'm willing to give it for 10%. - Wow.
- Wow! - Good Lord!
- Well done. - Good job!
Wow! Thank you, sir.
May I ask a few questions
- and then let you know? - Okay, sure.
Vineeta, you could give your decision.
Out of the few direct competitors you mentioned,
I'm an investor in one of them.
- Okay. - There's a direct conflict. Besides, you've got a great offer.
It doesn't make sense for me to partner with you.
I wish you grow 100x from here. Best of luck.
- Thank you so much, Vineeta. - Thank you so much.
- I really feel proud when a company from Pune comes. - Yes.
- So, congratulations. - Thank you.
You received an offer from a great Shark without negotiating.
Yes, absolutely.
I don't think I can help you as much as Peyush.
[intense music playing]
For that reason, I am out, but I wish you the best.
- Thank you so much. - Thank you.
I liked how your product tastes.
- But I also believe that this category... - Yes?
Is getting extremely crowded.
You'll have to spend heavily on marketing if you wish to make it.
I am out for this reason.
- I think Rs. 10 crores is a rich valuation. - Yes.
But you have an offer. So, I think you should take it.
- Thank you. - Thank you so much.
- You're such hustlers. - Yes.
- Have you tried Swiggy or Zepto? - Yes!
- We want to do it. We've been pursuing them. - Okay.
And what was the outcome?
- They didn't give a fig, sir. - Fig!
"They didn't give a fig!" Fantastic answer!
I invested in Beyond Snack in season 1 at sales of Rs. 20 lakhs.
They make Rs. 2 crores a month now.
Crazy! The small packet that they introduced
shot up sales exponentially!
When there's offline penetration
into small cities and small shops,
then obviously the packaging will also change.
We could come up with the ten-rupee pack.
- Can you? - Yes, definitely doable.
Okay. Let me show you what's written over here.
'Always look for the extra in the ordinary.'
- That's a belief I have. - Yes.
You guys are extraordinary entrepreneurs.
- I'll tell you why. - Okay, thank you.
There are people who are hustlers,
and then there are those who hustle hard but stay humble.
- You guys are also humble. - Yes.
- The way you talk... - Yes.
You exude humbleness and humility.
Thank you.
The offer that Peyush made...
[intense music playing]
so that our Sunday goes well upon sharing this news.
- Let's do it. - You have the zeal.
One more reason. We should get free chips when we party on Saturday.
[Sharks laugh]
Until when do I offer banana chips?
[Sharks laugh]
Thank you so much.
- Thank you, guys. Thank you so much. - Thanks...
- Bye, all the best. - Thank you.
- Good.
[euphoric music playing]
[vocalising] Oh, my!
[vocalising]
[funky music]
Wow!
Hello!
Wow!
Woo-hoo!
Wow! There are more!
- Nice! Super! - Wow!
What an entry, sir!
- Well done! - Thank you, girls!
- Thank you! - Thank you, girls!
[funky music]
- Hi, Sharks! - Hi!
The most common thing in what you just saw was denim.
Denim is something that you can wear anywhere and on every occasion.
For date night or as college outfits.
We can wear denim as traditional wear.
But, Sharks, if you notice the Indian Denim market today,
it is full of international fast fashion brands
which are either expensive
or not designed according to Indian women's body type
or unsuitable for our weather.
[upbeat music]
Sharks, on the other hand, Indian Denim brands
mainly cater to male customers
and they aren't aspirational for our Indian youth.
Sharks, to solve this problem
we are presenting our brand FREAKINS to you.
[motivational music]
FREAKINS is a denim fast fashion apparel brand
that launches different styles every week
for Indian women's body types
and it is Gen Z-focused.
Our vision is quite clear.
People should think of Freakins when they think of denim.
So today our ask is Rs. 70 lakhs for 1% equity.
Please introduce yourselves.
I started Freakins as soon as I graduated.
It was out of insight.
My friends used to buy denim and got it trimmed or altered.
They were influenced by western OTT content
but weren't getting products in their height and size.
And that's how it started.
My background and my family supported me.
We are into manufacturing of textiles
We do it for other companies.
Then why not just for ourselves?
My uncle Sachin and I started using
the same fabric and raw stock to make products for ourselves.
It has been three years
and Freakins was being considered as an option
to be acquired by one of the large online marketplaces.
I met Puneet there.
Did Puneet work there?
Yes, Shark. I used to work for Nykaa.
I worked as the chief strategy officer there.
I got Freakins' deal in the very first week.
Shaan and I clicked instantly.
If we wanted to make a fast fashion brand in India,
we needed full-stack ownership.
I called up Shaan and proposed a collaboration
and make a mark.
And that's how we came together.
How do you feel about the fact that you went to Nykaa to collect
a cheque and you met Puneet?
Um, we acquired him, right?
Wonderful! [laughing]
Well done!
- Does your uncle have a share in this company? - Yes!
- Yours is 54%? - Yes!
- What an amazing feat! - Wow!
What an acquisition! He acquired the company.
[laughing]
I'll answer that.
We had a vision to make it a big business when we started out.
We had the supply chain, the marketing department
and the Gen Z consumer brand too.
We lacked big time on biz ops
because of which we incurred losses in the last three years.
You lack what?
Business operations.
[tense music]
Sachin owned the other 60%.
When I came, I took 60% equity.
As of now, we have commitments of Rs. 4.5 crores.
- And we have also signed... - At what valuation?
We signed it on a 20% convertible note.
What's the cap?
We are in discussion to lock the cap at Rs. 30 crores
or Rs. 60 crores
but there's flexibility as friends and family members are involved.
They give money because of our reputation.
We are going out to raise money
with Dexter this month.
During our discussions,
we agreed upon a valuation of around Rs. 70 crores.
- That's the reason, we gave this valuation. - Okay.
What are your designations?
I'm handling the marketing department, so I'm the CMO.
- You're the CEO. - Yes!
- We made something for each one of you. - Wow!
- Can we give them? - Please bring the bribes soon.
[chuckling]
[joyful music]
Thank you so much!
[joyful music]
It's good, my friend.
Mine is printed.
Oh! It's Lenskart's pair of glasses.
- Not bad. - Please tell us your sales figures.
I'll share my net sales with you.
Yes. The family was funding it through stock
because we were already the manufacturers.
- So inventory capital was being utilised. - Alright.
What about this year?
That is my fault.
We didn't know our gross margins for two years.
We were selling it very cheap.
We didn't have knowledge of inventory turns.
So we were just pushing it out. We were hoarding inventory.
We were doing sales but we had no clue about the profit
and loss.
Everything got structured in April
and our gross margin increased from 38% to 63%.
Guys, what a freaking mess!
[tense music]
You lost Rs. 60 lakhs last month.
Who bore it?
As of now, Rs. 60 lakhs are paid by Sachin
as vendor payments which we owe to him.
You are a part of his business.
- You own 54% of the company. - That's right.
But still, the company is under a loss
and his family is bearing the loss.
- If you get Rs. 70 lakhs today... - Yes.
- Will you do the vendor payment and retire the debt? - Yes!
- As of now... - I'm out!
[racy music]
It's a mess.
I'm not sitting here to invest in a company for its past.
- No, Anupam. - I'll invest money towards its future.
[sweeping music]
Either you said a wrong thing or I heard you wrong. What is it?
Exactly, Anupam. Let me clarify this thing.
As part of our current losses,
we have to pay Rs. 20 lakhs per month for the COGS.
We haven't done those payments till now.
Our commitment of Rs. 4.5 crores
and our sales for this month
will be used to retire
a total working capital debt of Rs. 1.5 crores.
We'll follow payment terms
of 120 days with our vendors in future.
Are the people giving you a fund of Rs. 4.5 crores
ready to let you retire a debt of Rs. 1.5 crores?
- Yes. We'll retire it... - What's wrong with retiring a debt?
You don't fund a company...
You fund a company for growth and not to retire debt.
Anupam, basically, during these six months,
when we decided to work together,
I informed Sachin about our commitments.
"We'd close a deal and use that money
but the business should keep growing.
So please continue supplying the stock."
We know that our business is not yet profitable
but we are reducing our losses.
And we have also paid Rs. 1 crore to Sachin as a secondary deal.
The company suffered a loss so they decided to close down the company.
Instead of closing down the company, Puneet joined them
and he took the responsibility of running the company.
And he'd free them of their debts. Am I right?
You may take Rs. 1 crore.
Also, you received Rs. 1 crore.
I gave Rs. 1 crore plus
- the previous debt... - Who gave Rs. 1 crore?
The money raised from friends and family
was Rs. 4.5 crores.
We paid Rs. 1 crore out of it as secondary sales.
Rs. 1.5 crores were paid to retire all the debt
and the rest of the money will be utilised in the business
plus we will raise money too.
By the end of this year, we'll break even.
I made my decision.
Puneet, you have taken a good bet
and it's worth your time.
You could make it successful
as businesses experience turnarounds.
For me, it's not investible
because it's complicated.
Maybe I want you to come here after a year
once you make the company debt-free and earn sales of Rs. 30 crores.
Then I would be open to investing
but not today.
Guys, I made my decision too.
Currently, you said
that you suffered losses of Rs. 3.5 crores, Rs. 2.5 crores,
Rs. 1.5 crores and Rs. 60 lakhs recently in succession.
I prefer investing in cash-flow businesses
but I wish you the best.
As I said, by the end of this year, we'll be profitable.
In fact, the current September month
has been our best month. We earned
and 65% in the marketplaces.
The new season has just begun.
We don't give discounts even during sale shopping.
We don't give any kind of discounts.
But still, we sell really well in the sale too.
Secondly, a month ago,
Myntra gave us an MOU
where they want us to be exclusive on their platform.
They have given us a commitment.
We'll earn a revenue of Rs. 40 crores in the first year
and we'll earn Rs. 70 crores in the second year.
What were your total marketing expenses in September?
We spent Rs. 12 lakhs in total
on performance marketing.
and you haven't invested in the brand.
Your only focus is performance and commodity trading right now.
You said that you don't give a discount. It's no big deal.
Even the best brands give a discount nowadays.
If a deal is going on and the Myntra sales are on,
everybody likes to buy in the sale
to get a little bit of discount.
Maybe you guys can do well. I'm out for now.
[adventurous music]
you may not give a discount. If your product is good,
you can't be forced to give a discount.
I feel if you want to build a brand,
- pricing should be consistent. - I'm sorry! I want to interrupt.
We do optical discounting.
- My friend... - It's okay but he's out.
He said no and he's out.
No. I got it.
Why are you agreeing with him?
That's okay. She's not agreeing but they do give a discount.
[dramatic music]
Optical illusion means
you feel there's something present
but it isn't really present.
In the same way, optical discount means
a situation where a company increases the price of the product
and gives a discount on the increased price.
The consumer feels they are getting a discount
but in reality, there's no discount.
You know, the first thing is,
this round can only be raised
if other people also invest
as a debt of Rs. 1.5 crores is too high.
And I don't think
your company should get a valuation of more than Rs. 20 crores.
So assuming
that it's part of a bigger round,
I would be okay to come in
with Rs. 50 lakhs for 2.5% equity
which gives you a valuation of Rs. 20 crores.
Vineeta, thank you for the offer.
If you allow us, we have a counteroffer.
Please tell me your counteroffer.
Vineeta, the reason we are insisting
is due to our future investors.
But, boss, she'll add value.
Definitely, she'll add value.
And others may not add value.
Peyush, the thing is, the people who made a commitment in the last
six months helped us improve the business health.
I can't give you more valuation.
She has given a non-negotiable offer
of Rs. 50 lakhs for 2.5% equity.
Please tell us your decision.
[dramatic music]
Vineeta, the deal is done!
They must be tired of sitting in the same posture.
[ethereal music]
- Thank you! Congratulations! - Thank you!
Yes!
- Thank you, Sharks! - Bye!
- Thank you, guys! - Good one, guys! All the best!
'In today's Shark Xperience segment, Namita,'
'Noor from Aligarh has a question for you.'
'I liked your book'
'as it provides varied insights.'
'Please tell me something. Out of the five Sharks,'
'who are the Sharks of Shark Tank India'
'and who are the Dolphins?'