1 00:00:10,320 --> 00:00:12,320 Greetings! I'm Rahul Dua. 2 00:00:12,600 --> 00:00:14,640 I welcome you to Shark Tank season 2. 3 00:00:14,920 --> 00:00:17,760 Co-presented by ACKO. Payments partner, Cashfree payments. 4 00:00:18,000 --> 00:00:20,920 Ideas partner, Smallcase. Co-powered by PokerBaazi. 5 00:00:21,160 --> 00:00:24,000 Money partner, Fi Money. Online food partner, Eatfit. 6 00:00:24,320 --> 00:00:25,720 Eyewear partner, Lenskart. 7 00:00:26,040 --> 00:00:28,520 I hope you are ready because pitchers, Sharks 8 00:00:28,680 --> 00:00:30,120 and the host are ready. 9 00:00:30,200 --> 00:00:31,400 You may see for yourself. 10 00:00:47,840 --> 00:00:50,600 [ethereal music] 11 00:00:56,760 --> 00:00:59,040 [dramatic music] 12 00:01:33,520 --> 00:01:37,080 Sharks, we came here to tell you about a plant 13 00:01:37,160 --> 00:01:39,240 which has been growing in India for ages abundantly. 14 00:01:39,320 --> 00:01:41,680 During British rule, it was used 15 00:01:41,760 --> 00:01:44,280 to fence the railway tracks 16 00:01:44,360 --> 00:01:48,120 and now farmers use it to protect their fields. 17 00:01:48,240 --> 00:01:49,160 Amazing! 18 00:01:49,240 --> 00:01:50,520 Aside from that, 19 00:01:50,600 --> 00:01:54,960 nobody in India explored the potential of this plant. 20 00:01:55,040 --> 00:01:58,280 You know, familiarity breeds contempt. 21 00:01:59,800 --> 00:02:01,760 This plant is called Agave 22 00:02:02,760 --> 00:02:06,680 and it's also called Raamabaans. 23 00:02:10,920 --> 00:02:13,920 I started researching the Agave plant. 24 00:02:14,960 --> 00:02:18,000 Then I came to know about its true potential. 25 00:02:18,760 --> 00:02:20,720 One of the species of this plant 26 00:02:20,800 --> 00:02:22,960 is used to make Mexico's world-renowned tequila. 27 00:02:23,040 --> 00:02:24,520 [laughing] 28 00:02:24,640 --> 00:02:28,600 Sharks, when people in Mexico can make a world-renowned drink 29 00:02:28,680 --> 00:02:31,440 using this plant, why not in India? 30 00:02:32,080 --> 00:02:34,000 So I started making 31 00:02:34,080 --> 00:02:37,240 premium agave spirits from this plant 32 00:02:37,320 --> 00:02:40,400 and went on to launch my brand in Goa. 33 00:02:40,480 --> 00:02:43,640 I introduced a new alcohol category to India. 34 00:02:43,720 --> 00:02:45,040 Presenting DesmondJi. 35 00:02:45,120 --> 00:02:46,760 [exhilarating music] 36 00:02:54,520 --> 00:02:56,200 like Agave Spirits. 37 00:02:56,840 --> 00:02:58,920 We started this business in 2011 38 00:02:59,000 --> 00:03:02,600 and our innovation wasn't limited to Agave. 39 00:03:02,720 --> 00:03:04,520 We launched a new product. 40 00:03:04,600 --> 00:03:06,760 It's called Mahua Spirit. 41 00:03:06,840 --> 00:03:07,840 'Madhuca longifolia' 42 00:03:13,720 --> 00:03:17,680 It's significant to the tribal culture of Central India. 43 00:03:17,760 --> 00:03:18,920 Ouch! 44 00:03:19,360 --> 00:03:21,880 DesmondJi makes eight types of spirits, 45 00:03:27,600 --> 00:03:29,400 and forest-to-bottle brand. 46 00:03:34,040 --> 00:03:37,240 We have sold 12 lakh bottles till now 47 00:03:44,600 --> 00:03:47,000 is to use Indian raw materials 48 00:03:47,080 --> 00:03:50,200 to make innovative and international-quality alcohol 49 00:03:50,280 --> 00:03:52,040 and make it available to the world. 50 00:03:52,760 --> 00:03:54,200 Our ask is 51 00:04:01,600 --> 00:04:03,840 Welcome to Shark Tank India season 2! 52 00:04:03,920 --> 00:04:05,200 - Thank you so much! - Thank you! 53 00:04:20,000 --> 00:04:22,600 Please explain your journey. How did you reach here? 54 00:04:22,680 --> 00:04:25,640 And where did you pick up this co-traveller? Tell me that as well. 55 00:04:26,160 --> 00:04:30,240 I graduated from IIT Madras in mechanical engineering. 56 00:04:31,280 --> 00:04:34,160 I applied for a scholarship in the US 57 00:04:34,240 --> 00:04:37,720 for my Master's degree. Computer Science was a new subject back then. 58 00:04:37,800 --> 00:04:40,160 I started working in a technology bank. 59 00:04:40,240 --> 00:04:42,480 I came across a problem 60 00:04:42,600 --> 00:04:45,040 which I solved. The Y2K problem. 61 00:04:50,840 --> 00:04:52,840 using tools and services. 62 00:04:52,920 --> 00:04:56,160 I did some innovations and started a company. 63 00:04:56,240 --> 00:04:59,560 Later on, I decided to come to India for services. 64 00:04:59,640 --> 00:05:02,760 - I came to India and did a partnership with Wipro. - Awesome! 65 00:05:02,880 --> 00:05:05,640 Wipro remained my partner for eight years 66 00:05:05,720 --> 00:05:08,000 and I acted as the global consultant specialist 67 00:05:08,080 --> 00:05:10,840 in Y2K for 12 years. 68 00:05:10,920 --> 00:05:12,680 - So you earned a lot. - It's apparent. 69 00:05:12,760 --> 00:05:14,600 - Okay. - I earned enough to retire. 70 00:05:14,680 --> 00:05:15,840 Yes! 71 00:05:16,240 --> 00:05:18,760 I wanted to showcase India 72 00:05:18,840 --> 00:05:22,560 globally and by chance, 73 00:05:22,680 --> 00:05:24,880 my friends came to know 74 00:05:24,960 --> 00:05:27,120 that I used to do amateur bartending in the US. 75 00:05:27,240 --> 00:05:29,880 They requested that I serve cocktails to them. 76 00:05:39,400 --> 00:05:41,520 is manufactured in just one country. 77 00:05:41,600 --> 00:05:45,280 I started researching to find the answer to this question 78 00:05:45,360 --> 00:05:48,600 and I came across this plant on the internet. 79 00:05:48,680 --> 00:05:50,880 I did some basic quick-and-dirty research. 80 00:05:51,000 --> 00:05:55,240 The Mexican latitude maps to the Deccan Plateau. 81 00:05:55,360 --> 00:05:56,440 Temperature, soil 82 00:05:56,560 --> 00:05:59,520 - and rainfall matched the Deccan Plateau. - Wow! 83 00:05:59,600 --> 00:06:01,600 I had moved to Goa around that time. 84 00:06:01,720 --> 00:06:06,160 I met his dad who is a famous botanist. 85 00:06:06,280 --> 00:06:07,880 Botanist! Alright! Okay. 86 00:06:07,960 --> 00:06:10,640 I befriended a Feni distiller. 87 00:06:11,560 --> 00:06:14,200 I briefed them about my idea. 88 00:06:14,280 --> 00:06:15,720 "I have researched a lot. 89 00:06:15,800 --> 00:06:19,280 So let's go and search for this plant in the Deccan Plateau." 90 00:06:19,360 --> 00:06:21,800 We planned a seven-day trip. If we didn't find it we would've returned. 91 00:06:21,880 --> 00:06:23,800 We found it on the very first day. 92 00:06:23,920 --> 00:06:27,480 - I researched for four years. - Wow! 93 00:06:27,560 --> 00:06:29,760 I took four years and built Greenfield distillery. 94 00:06:29,840 --> 00:06:32,200 Then we manufactured the drink. 95 00:06:32,320 --> 00:06:36,960 We were launching a product in Goa when he graduated 96 00:06:37,040 --> 00:06:40,080 from IHM and he was 20 years old. 97 00:06:40,160 --> 00:06:42,760 - When did it happen? - 2011. 98 00:06:42,840 --> 00:06:46,280 Okay! You two have been together for 11 years. 99 00:06:46,400 --> 00:06:50,080 You made DesmondJi popular in the country. 100 00:06:50,160 --> 00:06:52,760 It's a great journey. Thank you for sharing with us. 101 00:06:53,760 --> 00:06:55,280 Desmond, tell me something. 102 00:06:55,360 --> 00:06:57,640 - You are talking about Agave. - Right. 103 00:06:57,720 --> 00:06:59,120 Is tequila equivalent to Agave? 104 00:06:59,240 --> 00:07:03,160 No. Tequila is made with a particular Agave species. 105 00:07:03,240 --> 00:07:05,120 It's called Agave Tequilana. 106 00:07:05,240 --> 00:07:09,320 We use blue-green Agave which is known as Agave Americana. 107 00:07:09,400 --> 00:07:13,280 What is the name of your drink made from Agave? 108 00:07:13,400 --> 00:07:14,200 Indian Agave. 109 00:07:14,280 --> 00:07:17,040 We are the only Agave manufacturers in Asia. 110 00:07:17,120 --> 00:07:18,640 Even Mahua wasn't made by anyone before. 111 00:07:18,720 --> 00:07:21,480 Mahua is made by tribals. 112 00:07:21,560 --> 00:07:24,360 Agave spirit isn't manufactured by anyone in India 113 00:07:27,880 --> 00:07:30,000 We make it in the country liquor category. 114 00:07:30,600 --> 00:07:32,640 We have three major markets. 115 00:07:32,720 --> 00:07:33,920 One is Maharashtra, 116 00:07:39,480 --> 00:07:41,480 Why didn't you try other cities like Delhi? 117 00:07:41,920 --> 00:07:43,480 There was no category for our drink. 118 00:07:43,560 --> 00:07:44,640 It becomes a problem. 119 00:07:44,720 --> 00:07:46,680 We need to first create Agave's category. 120 00:07:46,760 --> 00:07:49,600 Our bulk spirit buyer 121 00:07:49,680 --> 00:07:52,400 can't find a category so he's petitioning 122 00:07:52,480 --> 00:07:54,120 to get a category for Agave spirits. 123 00:07:55,120 --> 00:07:59,040 Suppose you create a category and make it famous, 124 00:07:59,240 --> 00:08:01,880 would there be a problem if you have competitors? 125 00:08:01,960 --> 00:08:03,560 Nobody makes it. 126 00:08:03,640 --> 00:08:04,760 [sweeping music] 127 00:08:04,840 --> 00:08:07,760 - Please see our video. - Please show it. 128 00:08:22,960 --> 00:08:24,280 It's a huge plant. Nice. 129 00:08:24,400 --> 00:08:26,600 - It's 44 acres in size. - It's spread across 44 acres. 130 00:08:26,720 --> 00:08:28,080 - 44 acres! - Wow! 131 00:08:28,160 --> 00:08:31,160 - Who does the land belong to? - It belongs to us. 132 00:08:32,000 --> 00:08:35,720 You can see the biggest cocktail glass in the world. 133 00:08:35,800 --> 00:08:37,440 [laughing] 134 00:08:37,520 --> 00:08:38,960 That's a fun video! 135 00:08:39,040 --> 00:08:41,560 It's a cocktail glass with a capacity of 40,000 litres. 136 00:08:41,640 --> 00:08:44,320 Its structural engineering and design are just one in the world. 137 00:08:44,400 --> 00:08:45,800 - Wow! - Wow! 138 00:08:45,880 --> 00:08:47,440 It's a water tank. 139 00:08:47,560 --> 00:08:49,800 - What is its height? - 40 feet. 140 00:08:49,880 --> 00:08:51,720 [dramatic music] 141 00:08:51,840 --> 00:08:53,120 My God! 142 00:08:54,080 --> 00:08:55,640 What about your sales? 143 00:08:55,760 --> 00:08:57,320 We earned a revenue 144 00:08:57,400 --> 00:09:00,760 of Rs. 12.42 crores in the last 12 months. 145 00:09:05,080 --> 00:09:06,720 Rs. 1.25 crores. 146 00:09:13,200 --> 00:09:15,200 Did your revenue decline in the last three months? 147 00:09:15,480 --> 00:09:16,920 We didn't have the capacity 148 00:09:17,000 --> 00:09:18,240 and the raw material to make it. 149 00:09:18,320 --> 00:09:20,160 We refused orders. 150 00:09:20,280 --> 00:09:21,720 Who are your customers? 151 00:09:21,800 --> 00:09:23,760 Bars and restaurants, wine stores 152 00:09:23,840 --> 00:09:26,600 and if you drink a margarita in Bengaluru, 153 00:09:26,720 --> 00:09:30,600 most probably it'd be DesmondJi's. Also, in reputed bars of Mumbai. 154 00:09:31,360 --> 00:09:33,680 - Why don't they buy imported ones? - It is expensive. 155 00:09:33,760 --> 00:09:36,400 Price! Ours is the most affordable 156 00:09:36,480 --> 00:09:38,360 and good quality too. 157 00:09:39,200 --> 00:09:41,400 What is your sales growth through the past years? 158 00:09:42,040 --> 00:09:46,160 Last year, we earned a revenue of Rs. 7.5 crores. 159 00:09:57,360 --> 00:10:00,960 Earlier, we didn't sell premium bulk spirits to anyone. 160 00:10:01,040 --> 00:10:05,200 Currently, we are focusing on Mahua to increase its sale. 161 00:10:05,280 --> 00:10:07,280 Because it's uniquely Indian spirit. 162 00:10:07,680 --> 00:10:09,560 We sell bulk premium spirits 163 00:10:09,640 --> 00:10:12,640 to other companies to make them premium. 164 00:10:12,720 --> 00:10:16,440 One brand buys all our premium spirits. 165 00:10:16,520 --> 00:10:19,120 People are after us to buy these 166 00:10:19,200 --> 00:10:21,040 but we say that we don't have the capacity. 167 00:10:24,000 --> 00:10:24,880 Rs. 14 crores. 168 00:10:26,120 --> 00:10:27,880 In your business of Rs. 14 crores, 169 00:10:27,960 --> 00:10:30,160 how much is earned by DesmondJi and B2B separately? 170 00:10:30,240 --> 00:10:31,320 [suspenseful music] 171 00:10:31,480 --> 00:10:32,920 It must be fifty-fifty. 172 00:10:35,200 --> 00:10:37,920 Last year, we made sales of Rs. 7.5 crores. 173 00:10:38,000 --> 00:10:41,440 And this year, you'll earn Rs. 7 crores. So DesmondJi brand is flat 174 00:10:41,520 --> 00:10:43,040 and B2B business is growing. 175 00:10:43,720 --> 00:10:45,880 No, they have a capacity issue. DesmondJi can also grow. 176 00:10:45,960 --> 00:10:47,040 Yes. There's a capacity issue. 177 00:10:47,120 --> 00:10:49,320 Our market goes dry regularly. 178 00:10:49,400 --> 00:10:52,880 Why aren't you growing the DesmondJi brand instead of supplying others? 179 00:10:53,160 --> 00:10:55,760 We get a good profit margin 180 00:10:55,880 --> 00:10:57,640 and once we sell... 181 00:10:57,760 --> 00:10:59,160 - You are stress-free. - Yes. 182 00:10:59,240 --> 00:11:01,000 What's your profit in Rs. 12 crores? 183 00:11:01,120 --> 00:11:03,720 Our gross margin is around 65%. 184 00:11:03,840 --> 00:11:04,800 Please tell us your net profit. 185 00:11:04,880 --> 00:11:07,480 - It's Rs. 2.5 crores out of Rs. 12 crores. - Not bad. 186 00:11:07,560 --> 00:11:09,840 So your EBITDA is 20%. 187 00:11:09,920 --> 00:11:11,120 What's your bank balance right now? 188 00:11:11,200 --> 00:11:12,800 It's around Rs. 6 crores. 189 00:11:12,880 --> 00:11:15,920 What is your constraint? Did you take a loan? 190 00:11:16,760 --> 00:11:18,880 No! Ours is a debt-free company. 191 00:11:18,960 --> 00:11:21,320 We were funded by investors 192 00:11:31,440 --> 00:11:35,120 We started with Greenfield Distillery in 2007. 193 00:11:35,200 --> 00:11:36,960 Between 2007 and 2011, 194 00:11:37,080 --> 00:11:39,200 we raised 1 million US dollars 195 00:11:39,280 --> 00:11:42,280 equivalent to Rs. 6 crores back then. 196 00:11:42,360 --> 00:11:44,920 And then we raised twice. 197 00:11:45,040 --> 00:11:48,240 In total, we raised 3 million dollars which is Rs. 18 crores. 198 00:11:48,320 --> 00:11:51,200 How much equity does the investor have? And who is your investor? 199 00:11:51,320 --> 00:11:54,720 The combined percentage of all the investors is 76%. 200 00:12:00,640 --> 00:12:01,760 Oh! 201 00:12:01,880 --> 00:12:03,120 What's your share in 24%? 202 00:12:07,800 --> 00:12:09,600 but it's valuable. 203 00:12:09,720 --> 00:12:10,840 How so? 204 00:12:11,440 --> 00:12:13,040 You raised ¤ 3 million 205 00:12:13,120 --> 00:12:15,360 which is Rs. 24 crores as of today. Right? 206 00:12:16,000 --> 00:12:18,040 You've built a business of Rs. 14 crores, 207 00:12:18,040 --> 00:12:19,280 half of which is B2B. 208 00:12:20,320 --> 00:12:23,760 Where is the value creation? How is 1% a lot then? 209 00:12:23,840 --> 00:12:25,760 [intense music playing] 210 00:12:25,840 --> 00:12:28,040 And you've brought a 100-crore business here. 211 00:12:28,600 --> 00:12:29,640 Who is the investor? 212 00:12:29,680 --> 00:12:31,240 There are many investors. 213 00:12:31,320 --> 00:12:33,400 There are around 67 angel investors. 214 00:12:34,120 --> 00:12:35,080 Wow! 215 00:12:35,200 --> 00:12:37,160 Gosh! Any private equity or VC? 216 00:12:38,000 --> 00:12:39,160 Not a single VC. 217 00:12:39,160 --> 00:12:42,440 But angel investors have invested as VCs. 218 00:12:43,120 --> 00:12:45,440 [intense music playing] 219 00:12:49,080 --> 00:12:51,560 As per my knowledge of this category, 220 00:12:51,640 --> 00:12:53,840 a snob value is attached to it. 221 00:12:55,840 --> 00:12:58,600 People like foreign brands. 222 00:12:58,640 --> 00:13:01,560 - They're image conscious because of society. - Hmm. 223 00:13:01,680 --> 00:13:03,520 Of course, there's a different section 224 00:13:03,600 --> 00:13:06,040 of people who will drink your brand and local brands. 225 00:13:06,120 --> 00:13:10,960 But it will be difficult to scale beyond a certain point. 226 00:13:12,120 --> 00:13:13,520 And for that reason, I am out. 227 00:13:13,600 --> 00:13:14,520 Thank you. 228 00:13:14,600 --> 00:13:19,360 Look. I think you've created an innovative business with a moat 229 00:13:19,400 --> 00:13:21,240 which isn't easy for others to enter. 230 00:13:22,840 --> 00:13:24,800 Personally, your business is good 231 00:13:24,840 --> 00:13:27,240 - and it will do well in the long term. - Hmm. 232 00:13:27,320 --> 00:13:30,360 I might regret this as a business deal. 233 00:13:30,480 --> 00:13:33,800 I believe this will grow to Rs. 100 crores from 12 crores. 234 00:13:34,680 --> 00:13:37,960 My personal interest is to invest in a tech business 235 00:13:38,040 --> 00:13:40,400 which will generate about Rs. 5000 crores in 10 years. 236 00:13:40,480 --> 00:13:42,800 So, I am out due to the opportunity cost. 237 00:13:42,880 --> 00:13:44,400 - Okay. - And personal interest. 238 00:13:44,560 --> 00:13:45,800 - Thank you. - Thank you, Peyush. 239 00:13:45,880 --> 00:13:49,800 You might have started this as a lifestyle business. 240 00:13:51,280 --> 00:13:54,280 You made a lot of money, you found a path. 241 00:13:54,400 --> 00:13:55,880 You raised funds after that. 242 00:13:55,960 --> 00:13:58,600 And before you knew it, you had diluted 76%. 243 00:13:58,720 --> 00:13:59,720 Now, you are stuck. 244 00:14:01,200 --> 00:14:02,600 76% is already diluted. 245 00:14:02,720 --> 00:14:04,400 So, Rs. 1 crore for 1% is out of the question. 246 00:14:04,480 --> 00:14:07,200 Your brand's business is Rs. 7.5 crores. 247 00:14:07,280 --> 00:14:08,480 Even if we value it, 248 00:14:08,560 --> 00:14:10,640 I'll take about 5 to 6% equity. 249 00:14:10,960 --> 00:14:12,960 That will take your dilution to 76 to 80%. 250 00:14:13,000 --> 00:14:14,360 It is non-sustainable. 251 00:14:14,360 --> 00:14:16,040 There will be no equity left with you. 252 00:14:17,480 --> 00:14:20,320 You'll have to gather your engineering mind 253 00:14:20,400 --> 00:14:23,280 and the wisdom you've earned in your journey, 254 00:14:23,440 --> 00:14:26,440 and think about what you should do. 255 00:14:26,600 --> 00:14:28,360 I'm not seeing a way out for you guys. 256 00:14:28,440 --> 00:14:32,000 But you know, miracles do happen. All the best. I am out. 257 00:14:33,560 --> 00:14:35,680 Here's my perspective. 258 00:14:35,800 --> 00:14:38,160 I'll ask for DesmondJi Agave when I step out to make a purchase. 259 00:14:41,520 --> 00:14:43,720 That's when the margins will also grow eventually. 260 00:14:43,800 --> 00:14:46,360 Where sales don't come in because your brand image is poor 261 00:14:46,440 --> 00:14:49,160 and someone else sells it, that will just lower the margin. 262 00:14:50,440 --> 00:14:53,080 I want to place some aggressive bets in life 263 00:14:53,160 --> 00:14:55,000 which can bring me profits. 264 00:14:55,240 --> 00:14:56,920 So, I am out for this reason. 265 00:14:56,960 --> 00:14:58,480 [intense music playing] 266 00:14:58,480 --> 00:15:00,160 I have just one suggestion. 267 00:15:00,240 --> 00:15:02,040 - You should take some debt. - Yes. 268 00:15:02,120 --> 00:15:03,760 Your business is doing so well. 269 00:15:03,840 --> 00:15:06,480 - Rs. 14 crores is no joke. The business is doing good. - Hmm. 270 00:15:06,560 --> 00:15:08,920 Leveraging your business is not a bad idea. 271 00:15:09,040 --> 00:15:11,480 - Leverage it and give it back with profits. - Yes. 272 00:15:11,480 --> 00:15:13,520 But take some debt leverage. 273 00:15:20,200 --> 00:15:22,240 I'll tell you one thing. Don't be disheartened. 274 00:15:22,320 --> 00:15:24,680 - You're quite profitable. Rack your brains. - Hmm. 275 00:15:24,760 --> 00:15:26,040 You can make profits. 276 00:15:26,160 --> 00:15:30,040 And, sir, please give him a healthy percentage of equity. 277 00:15:30,120 --> 00:15:32,200 Only then do you have a future. Good luck. 278 00:15:32,360 --> 00:15:33,280 - Good luck. - Thank you so much. 279 00:15:33,320 --> 00:15:34,680 - Thank you. - Thank you so much. 280 00:15:34,800 --> 00:15:35,720 Cheers! 281 00:15:39,680 --> 00:15:42,440 [theme music playing] 282 00:15:50,320 --> 00:15:52,800 [theme music continues] 283 00:16:00,480 --> 00:16:05,480 [theme music fades] 284 00:16:06,680 --> 00:16:07,760 Ciao, Sharks. 285 00:16:07,960 --> 00:16:09,200 Mozzarella. 286 00:16:10,720 --> 00:16:12,680 - Bocconcini. - [chuckles] 287 00:16:12,760 --> 00:16:14,400 Stracciatella! 288 00:16:14,600 --> 00:16:16,040 Mascarpone! 289 00:16:16,160 --> 00:16:18,840 They're not names of Italian cities. 290 00:16:18,920 --> 00:16:21,360 They are the names of different Italian cheese. 291 00:16:21,640 --> 00:16:24,160 Italian food is incomplete without them. 292 00:16:25,160 --> 00:16:27,000 We, too, consume a lot of cheese. 293 00:16:27,080 --> 00:16:29,080 Whether it be pav bhaji or dosa, 294 00:16:29,200 --> 00:16:31,200 we add cheese to everything. 295 00:16:32,440 --> 00:16:35,840 But the cheese available in the market is highly processed. 296 00:16:36,160 --> 00:16:39,000 It contains artificial colours 297 00:16:39,080 --> 00:16:41,800 as well as added flavours. 298 00:16:41,880 --> 00:16:44,160 That's why they don't taste good. 299 00:16:55,720 --> 00:16:58,880 My name is Rajas Dhote and I'm from Mumbai. 300 00:17:00,320 --> 00:17:02,600 Crèmeitalia makes fresh cheese 301 00:17:02,720 --> 00:17:05,160 made from 100% fresh milk. 302 00:17:06,400 --> 00:17:07,800 It is 100% natural, 303 00:17:07,920 --> 00:17:10,120 and that makes it tasty as well as healthy. 304 00:17:10,800 --> 00:17:12,760 Across India, 305 00:17:13,000 --> 00:17:15,120 we are available in 220 stores in 18 cities. 306 00:17:19,960 --> 00:17:22,080 Sharks, our ask is 307 00:17:22,160 --> 00:17:25,000 Rs. 90 lakhs for 1.5% equity. 308 00:17:31,480 --> 00:17:33,320 - Cheese. - Cheese. 309 00:17:35,080 --> 00:17:36,240 What's the valuation? 310 00:17:36,320 --> 00:17:37,360 Rs. 60 crores. 311 00:17:37,440 --> 00:17:38,760 Do you speak Italian? 312 00:17:40,000 --> 00:17:40,880 Italian. 313 00:17:41,120 --> 00:17:42,000 Mamma mia! 314 00:17:42,640 --> 00:17:44,440 - Mamma mia! - [Sharks laugh] 315 00:17:44,640 --> 00:17:47,200 You might know more Italian than him. 316 00:17:47,320 --> 00:17:49,320 Chunky Panday said it in a movie. 317 00:17:49,400 --> 00:17:50,480 "I'm joking!" 318 00:17:50,560 --> 00:17:51,960 - "I'm joking!" - "The last pasta." 319 00:17:52,040 --> 00:17:54,360 - "The last pasta. I'm joking!" - "The last pasta." 320 00:17:55,640 --> 00:17:58,080 - You wanted us to taste something. - Yes. 321 00:17:59,640 --> 00:18:00,880 What is this, bro? 322 00:18:04,000 --> 00:18:06,600 - Mamma mia, the spoon fell! - [laughs] 323 00:18:08,240 --> 00:18:10,280 [intense music playing] 324 00:18:12,120 --> 00:18:13,760 Hmm. Nice. 325 00:18:13,800 --> 00:18:17,200 Tell us what we're eating. What is this? 326 00:18:17,280 --> 00:18:18,880 That's Jalapeño Sour Cream. 327 00:18:19,000 --> 00:18:20,520 That's Burrata. 328 00:18:25,720 --> 00:18:27,080 is Scamorza. 329 00:18:29,080 --> 00:18:30,080 That's Burrata. 330 00:18:30,200 --> 00:18:32,480 - Burrata. - It's our highest-selling product. 331 00:18:32,560 --> 00:18:34,880 - This is really fresh. - It tastes good. 332 00:18:34,960 --> 00:18:36,480 Yes, thank you. 333 00:18:37,080 --> 00:18:41,240 We want to be a specialist cheese manufacturer in India. 334 00:18:41,320 --> 00:18:43,720 There is no premium cheese brand yet. 335 00:18:43,800 --> 00:18:46,800 You'll see mass brands if you check the market. 336 00:18:46,880 --> 00:18:48,600 But there isn't a premium brand. 337 00:18:48,680 --> 00:18:50,920 [music playing] 338 00:18:51,000 --> 00:18:52,880 What drew you to cheese? 339 00:18:52,960 --> 00:18:56,080 - What have you done in life? - I was studying in London. 340 00:18:56,680 --> 00:18:58,680 I was pursuing print media management. 341 00:18:58,760 --> 00:19:01,880 My family business is that of printing and packaging. 342 00:19:02,000 --> 00:19:03,280 - I came to India. - Yes. 343 00:19:03,360 --> 00:19:05,600 I helped my dad run the business for 10 years. 344 00:19:05,720 --> 00:19:07,400 I wanted to do something of my own. 345 00:19:07,480 --> 00:19:11,520 The family business will go on. There was no excitement. 346 00:19:11,640 --> 00:19:15,840 I had no idea of the F&B business. 347 00:19:16,280 --> 00:19:18,480 My brother has this one friend. 348 00:19:18,760 --> 00:19:20,840 He ran a chain of quick-service restaurants. 349 00:19:20,920 --> 00:19:25,480 It occurred to me that he was in the food industry and I approached him. 350 00:19:25,720 --> 00:19:26,800 Did he not partner... 351 00:19:26,840 --> 00:19:28,760 - He's with me. He's my partner. - Where is he? 352 00:19:28,840 --> 00:19:31,920 What's his status, where is he and what's his shareholding? 353 00:19:32,040 --> 00:19:33,840 He has gone to Italy to pursue a course. 354 00:19:33,960 --> 00:19:36,360 - On this? - Yes, that's right. 355 00:19:36,440 --> 00:19:39,480 I hold 35.15%. 356 00:19:39,960 --> 00:19:42,000 He also holds 35.15%. 357 00:19:56,800 --> 00:19:58,600 - How much? - Rs. 1.3 crores 358 00:19:58,640 --> 00:20:00,360 at a valuation of Rs. 7 crores. 359 00:20:23,080 --> 00:20:25,600 My business was Rs. 27 lakhs in April. 360 00:20:25,720 --> 00:20:27,920 - Today, I am doing Rs. 62 lakhs. - Per month? 361 00:20:28,000 --> 00:20:30,440 Per month. So, it has multiplied 2.4 times. 362 00:20:31,720 --> 00:20:33,520 I want to set up a new plant. 363 00:20:33,600 --> 00:20:34,840 This new plant 364 00:20:34,880 --> 00:20:37,640 - will have four times the capacity of the previous one. - Wow! 365 00:20:37,720 --> 00:20:39,800 - You've left us speechless. - Hmm. 366 00:20:40,640 --> 00:20:43,440 Who else in India has such a cheese factory? 367 00:20:43,520 --> 00:20:45,000 Four people do. 368 00:20:45,080 --> 00:20:47,280 There's one in North and one in Gujarat. 369 00:20:47,360 --> 00:20:49,600 But very few people will be able to match 370 00:20:49,680 --> 00:20:53,040 - the scale that we will be manufacturing at. - Hmm. 371 00:20:53,160 --> 00:20:55,880 Tell me something. Freshness is your USP. 372 00:20:56,160 --> 00:20:57,040 - Freshness. - Right? 373 00:20:57,120 --> 00:20:59,000 Tell me about your delivery. 374 00:20:59,120 --> 00:21:02,760 - I am asking you this because as you scale... - Right. 375 00:21:02,840 --> 00:21:05,920 If you want freshness to be your USP, 376 00:21:06,000 --> 00:21:09,880 then keeping a good delivery partner pan-India 377 00:21:09,960 --> 00:21:12,640 - to keep the freshness intact, will add to your cost. - Yes. 378 00:21:12,720 --> 00:21:14,920 As per the plan we have laid out right now, 379 00:21:15,120 --> 00:21:18,640 we've set a special price with our delivery partners. 380 00:21:18,760 --> 00:21:20,120 But when the volumes increase, 381 00:21:20,240 --> 00:21:22,240 we will send the goods to them in bulk. 382 00:21:22,360 --> 00:21:25,120 Technically, our cost will go down. 383 00:21:25,200 --> 00:21:28,040 The price is currently high because we deliver lesser units. 384 00:21:28,160 --> 00:21:31,680 In future, we will be launching fresh dips. 385 00:21:31,760 --> 00:21:32,840 That will capture the market. 386 00:21:32,920 --> 00:21:35,000 - That would be good. - What dips? 387 00:21:35,360 --> 00:21:38,240 But your shelf life must be very short. 388 00:21:38,320 --> 00:21:41,040 - Your products must be getting stale. - Our RTV, 389 00:21:46,760 --> 00:21:48,280 Tell us your unit economics. 390 00:21:48,400 --> 00:21:50,880 Before we get into details, tell me something important. 391 00:21:50,960 --> 00:21:54,080 Bottom line, you did Rs. 62 lakhs last month. 392 00:21:54,200 --> 00:21:55,200 How much are you left with? 393 00:21:55,280 --> 00:21:58,240 - Rs. 9 lakhs out of Rs. 62 lakhs. - Rs. 9 lakhs. Okay. 394 00:21:58,440 --> 00:22:00,440 - After all the expenses. - Yes. 395 00:22:00,560 --> 00:22:03,200 Out of Rs. 62 lakhs, what is your restaurant's contribution? 396 00:22:03,240 --> 00:22:04,160 50%. 397 00:22:04,880 --> 00:22:08,240 I always have a question when I see these things. 398 00:22:09,440 --> 00:22:11,760 "Is this an indulgence of the rich?" 399 00:22:13,200 --> 00:22:16,800 But now Indians, even middle-class people... 400 00:22:16,840 --> 00:22:18,480 Can afford it. What's the price of one? 401 00:22:18,560 --> 00:22:22,560 A box of Burrata costs Rs. 335. 402 00:22:25,200 --> 00:22:29,040 First of all, I don't believe that cheese 403 00:22:32,280 --> 00:22:36,600 - I think that India is changing. - Right. 404 00:22:36,720 --> 00:22:38,680 People are becoming aspirational. 405 00:22:38,880 --> 00:22:40,680 You're bringing down the price of these products. 406 00:22:40,720 --> 00:22:43,800 If you buy imported burrata cheese, 407 00:22:43,880 --> 00:22:45,920 - a box will cost you Rs. 1000. - Yes. 408 00:22:46,000 --> 00:22:48,080 Is the cheese market in India even that big? 409 00:22:48,160 --> 00:22:50,960 Sir, you can't imagine how big the cheese market is. 410 00:22:50,960 --> 00:22:53,160 Tell us the market for fresh cheese and not just cheese. 411 00:23:00,720 --> 00:23:02,480 and mozzarella cheese for pizzas. 412 00:23:02,560 --> 00:23:04,760 That market is Rs. 700 crores. 413 00:23:04,880 --> 00:23:07,760 The market for fresh cheese is only Rs. 120 crores. 414 00:23:07,800 --> 00:23:09,040 Are your numbers correct? 415 00:23:09,120 --> 00:23:10,720 [tense music playing] 416 00:23:11,040 --> 00:23:14,480 I am talking about my current market which is Rs. 120 crores. 417 00:23:14,480 --> 00:23:16,360 The handful of companies we know, 418 00:23:16,440 --> 00:23:18,480 if we calculate their turnover, 419 00:23:18,600 --> 00:23:20,800 that's the size of the market as of today. 420 00:23:21,400 --> 00:23:24,480 Tell us the total market of all the categories you'll enter into. 421 00:23:24,560 --> 00:23:26,520 That cheese market is Rs. 4000 crores. 422 00:23:26,600 --> 00:23:29,720 - We are targeting Rs. 730 crores as of today. - Got it. 423 00:23:30,040 --> 00:23:34,600 In 2026, the cheese market will grow by 26%. 424 00:23:34,680 --> 00:23:36,400 - Every year? - Yes, every year. 425 00:23:36,560 --> 00:23:38,760 [tense music playing] 426 00:23:39,000 --> 00:23:41,640 Rajas, the market of fresh cheese, 427 00:23:41,720 --> 00:23:45,560 Rs. 120 crores as you mentioned, is quite an insignificant TAM. 428 00:23:46,320 --> 00:23:50,360 You spoke of foraying into that Rs. 700 crores market. 429 00:23:50,640 --> 00:23:53,400 Big players are already entrenched there. 430 00:23:53,880 --> 00:23:57,440 So, this business, in terms of growth, 431 00:23:57,960 --> 00:24:00,480 doesn't seem enticing and exciting. 432 00:24:02,240 --> 00:24:04,000 And for that reason, I am out. 433 00:24:04,120 --> 00:24:06,120 [intense music playing] 434 00:24:06,280 --> 00:24:07,760 Tell us your unit economics. 435 00:24:07,760 --> 00:24:11,200 - You own two businesses. One's B2B and the other is B2C. - Right. 436 00:24:11,280 --> 00:24:12,600 Tell us about both. 437 00:24:12,680 --> 00:24:17,160 Our margins in the HoReCa business are 30 to 35%. 438 00:24:28,080 --> 00:24:30,280 First, I want to... Sorry. 439 00:24:30,400 --> 00:24:32,240 I want to understand where your expenses lie. 440 00:24:32,320 --> 00:24:34,320 You told us the entire thing together. 441 00:24:34,440 --> 00:24:36,920 Are you asking about my factory cost? 442 00:24:37,000 --> 00:24:37,880 Tell us that. 443 00:24:37,920 --> 00:24:40,400 I'm left with 21%. 444 00:24:40,520 --> 00:24:42,640 [intense music playing] 445 00:24:43,600 --> 00:24:46,240 Does your cofounder oversee finance? 446 00:24:46,320 --> 00:24:47,320 Yes, he does. 447 00:24:47,400 --> 00:24:49,720 - It's evident. - That's why I can't understand you. 448 00:24:50,000 --> 00:24:52,640 You're saving 20%. 449 00:24:52,760 --> 00:24:53,600 No, he isn't. 450 00:24:53,600 --> 00:24:56,520 You said you saved Rs. 9 lakhs last month 451 00:24:56,560 --> 00:24:57,840 out of sales of Rs. 62 lakhs. 452 00:24:57,920 --> 00:24:59,640 So, that's approximately 15%. 453 00:24:59,760 --> 00:25:03,960 But I did say that HoReCa and retail combined were 21%. 454 00:25:04,040 --> 00:25:06,120 Tell us again how much you're left with. 455 00:25:06,440 --> 00:25:09,880 Rs. 9 lakhs out of Rs. 62 lakhs. 456 00:25:09,960 --> 00:25:11,480 - Okay, alright. - That's 15%. 457 00:25:11,560 --> 00:25:13,200 Alright. That's what I said. 458 00:25:13,840 --> 00:25:15,520 Who is the CEO? 459 00:25:15,800 --> 00:25:19,680 - He is. - He and I both are CEOs. 460 00:25:19,960 --> 00:25:22,640 Who is the chief then? 461 00:25:23,440 --> 00:25:25,720 He is the chief. 462 00:25:25,800 --> 00:25:27,880 [dramatic music] 463 00:25:28,320 --> 00:25:31,600 I don't think TAM is a cause of concern in this market. 464 00:25:31,720 --> 00:25:35,640 This category is still growing and you came at the right time 465 00:25:35,720 --> 00:25:38,720 as you have the opportunity of category creation. 466 00:25:39,240 --> 00:25:42,720 Your product and the packaging are good. 467 00:25:42,840 --> 00:25:45,440 I don't trust your team. 468 00:25:45,520 --> 00:25:48,200 Your numbers are confusing. I don't understand your margins. 469 00:25:48,280 --> 00:25:53,000 So I'm out. Otherwise, I would have been interested in this category. 470 00:25:54,160 --> 00:25:57,520 - Rajas Dhote, let me tell you my decision. I'm out. - Okay. 471 00:25:57,600 --> 00:25:58,800 There are two reasons. 472 00:25:59,520 --> 00:26:03,680 As I said, it's an upper, premium and luxury segment. 473 00:26:04,680 --> 00:26:07,320 Secondly, your pitch wasn't up to the mark today. 474 00:26:07,600 --> 00:26:09,440 When we don't know the sales figures of a business, 475 00:26:09,520 --> 00:26:12,560 it's difficult to bet on them. 476 00:26:13,920 --> 00:26:15,400 So I'm out. 477 00:26:16,360 --> 00:26:20,880 You look innocent and I liked talking to you 478 00:26:21,040 --> 00:26:24,240 but I don't find the sharpness in you to handle a business. 479 00:26:24,320 --> 00:26:25,680 [suspenseful music] 480 00:26:25,760 --> 00:26:27,000 So I'm out. 481 00:26:27,120 --> 00:26:28,640 - Okay. Thank you, Shark. - Thanks! 482 00:26:28,720 --> 00:26:31,680 Though there is confusion regarding the numbers, you are resolute. 483 00:26:32,200 --> 00:26:34,320 It's not easy to represent your business here. 484 00:26:34,720 --> 00:26:38,000 I can't invest due to a different reason. 485 00:26:38,120 --> 00:26:41,640 - Okay. - I think your business is 50% B2B currently. 486 00:26:41,720 --> 00:26:44,280 And it's speeding towards that sector. 487 00:26:44,360 --> 00:26:45,360 [sweeping music] 488 00:26:45,440 --> 00:26:47,440 - Right. - The second challenge is price erosion. 489 00:26:47,560 --> 00:26:50,320 - Right. - The profitability reduces soon 490 00:26:50,400 --> 00:26:53,600 because the market doesn't have the pricing power. 491 00:26:54,480 --> 00:26:55,640 So I'm out. 492 00:26:56,840 --> 00:26:59,400 I think you are doing well. 493 00:27:00,240 --> 00:27:03,000 You don't need investment as you are in profit. 494 00:27:03,080 --> 00:27:05,880 Please continue your business. You'll surely succeed in future. 495 00:27:05,960 --> 00:27:06,880 - Thank you, Sharks! - All the best! 496 00:27:06,960 --> 00:27:08,680 - All the best! - Thanks for your time. 497 00:27:08,760 --> 00:27:10,840 Thank you, Sharks. Thanks for your time. 498 00:27:13,400 --> 00:27:15,680 Rajas, Sharks relished eating your cheese. 499 00:27:15,760 --> 00:27:17,880 I'm sure people must have checked your website by now. 500 00:27:17,960 --> 00:27:19,880 You'll be flooded with orders. 501 00:27:20,000 --> 00:27:21,640 Please focus on your production. 502 00:27:31,640 --> 00:27:33,640 - Let's open your account. - Please! 503 00:27:33,720 --> 00:27:36,520 Cashfree Payments gives you out-of-the-world payment solutions 504 00:27:36,600 --> 00:27:38,480 for your out-of-the-world ideas. 505 00:27:40,640 --> 00:27:42,120 - are added to your account. - Thank you! 506 00:27:42,160 --> 00:27:43,680 High-growth Indian startups use Cashfree 507 00:27:43,760 --> 00:27:45,880 for hassle-free transactions. 508 00:27:48,360 --> 00:27:50,560 - I wish you the best and take care. - Thank you! 509 00:27:50,640 --> 00:27:53,240 [ethereal music] 510 00:27:59,640 --> 00:28:02,080 [dramatic music] 511 00:28:16,680 --> 00:28:20,520 Sharks, imagine that you are getting late for the office in the morning. 512 00:28:21,240 --> 00:28:24,120 And you need to refuel your car. 513 00:28:24,400 --> 00:28:27,560 The nearest fuel station has a long queue of vehicles. 514 00:28:28,680 --> 00:28:30,520 You'd waste two hours there. 515 00:28:31,400 --> 00:28:34,200 Let's talk about fuel companies now. 516 00:28:34,320 --> 00:28:38,720 There are more than 80,000 petrol pumps and CNG pumps in India. 517 00:28:38,800 --> 00:28:40,840 Even though we are so technologically advanced, 518 00:28:40,920 --> 00:28:43,280 the CNG companies only know 519 00:28:43,400 --> 00:28:45,640 the amount of fuel they sold in a day. 520 00:28:46,600 --> 00:28:49,320 They come to know about it only when a person manually notes it down. 521 00:28:49,400 --> 00:28:53,800 These companies have no idea about the vehicles getting fuelled. 522 00:28:54,520 --> 00:28:57,600 Whether the cylinders of those vehicles are tested or not. 523 00:28:57,680 --> 00:28:59,600 Also, if an attendant was present 524 00:28:59,720 --> 00:29:01,120 at the fuelling station at that time or not. 525 00:29:01,200 --> 00:29:04,400 Basically, there's no way to measure efficiency. 526 00:29:04,480 --> 00:29:05,920 [sweeping music] 527 00:29:06,000 --> 00:29:10,080 If we provide the basic information to the fuelling companies, 528 00:29:10,600 --> 00:29:14,960 they would efficiently manage their business and increase their profit. 529 00:29:15,880 --> 00:29:17,520 Hence we introduced Nawgati. 530 00:29:17,640 --> 00:29:19,640 [upbeat music] 531 00:29:21,800 --> 00:29:25,320 Greetings, Sharks! I'm Vaibhav Kaushik and I'm 24 years old. 532 00:29:26,520 --> 00:29:29,720 - I'm Aalaap and I'm also 24 years old. - Wow! 533 00:29:29,800 --> 00:29:32,280 I'm Aryan. I'm 23 years old. 534 00:29:32,360 --> 00:29:35,560 We are the cofounders of Nawgati and we hail from Noida. 535 00:29:36,560 --> 00:29:39,800 Sharks, Nawgati is an online ecosystem 536 00:29:39,880 --> 00:29:43,160 which solves the problems of companies and customers alike 537 00:29:43,240 --> 00:29:44,880 using two of our products. 538 00:29:46,080 --> 00:29:48,120 First, Nawgati Fuelling App 539 00:29:48,280 --> 00:29:50,080 and Aaveg dashboard. 540 00:29:50,760 --> 00:29:53,520 Currently, the Nawgati Fuelling App informs customers 541 00:29:59,240 --> 00:30:02,280 to save them time and money. 542 00:30:02,400 --> 00:30:03,320 [suspenseful music] 543 00:30:03,400 --> 00:30:04,960 We provide a dashboard 544 00:30:14,400 --> 00:30:16,600 They can monitor their attendants. 545 00:30:16,720 --> 00:30:19,520 Moreover, they can find out the amount of fuel purchased 546 00:30:19,600 --> 00:30:23,360 by a particular vehicle and the amount paid by them. 547 00:30:23,440 --> 00:30:24,560 [sweeping music] 548 00:30:24,640 --> 00:30:28,000 We provide various kinds of key metrics 549 00:30:28,080 --> 00:30:30,760 so that the safety and efficiency 550 00:30:30,840 --> 00:30:33,000 of their business are maximised. 551 00:30:34,080 --> 00:30:35,760 As of now, Nawgati 552 00:30:35,840 --> 00:30:39,360 is already working with India's biggest gas company Indraprastha Gas 553 00:30:39,480 --> 00:30:42,480 and India's biggest oil company Indian Oil. 554 00:30:43,360 --> 00:30:44,440 Additionally, 555 00:30:44,520 --> 00:30:48,880 we will soon start working with 13 more Indian oil and gas companies. 556 00:30:50,120 --> 00:30:52,480 Our app has been downloaded 6 lakhs times 557 00:30:52,560 --> 00:30:54,680 and we have 1.25 lakh monthly active users. 558 00:30:56,240 --> 00:30:58,200 Daily 15,000 people 559 00:30:58,280 --> 00:31:00,800 use our app for 15 minutes. 560 00:31:01,880 --> 00:31:06,480 The locations of all the Indian CNG stations can be found on our app. 561 00:31:07,920 --> 00:31:11,000 We have come here to make this vision a reality 562 00:31:11,080 --> 00:31:14,240 by asking you for Rs. 67 lakhs for 2% equity in our company. 563 00:31:20,160 --> 00:31:23,560 a fulfilling one with Nawgati? 564 00:31:24,560 --> 00:31:27,040 Vaibhav, Aalaap and Aryan, 565 00:31:27,120 --> 00:31:29,760 - welcome to Shark Tank. - Thank you! 566 00:31:29,840 --> 00:31:33,920 We Sharks become energetic when we see young entrepreneurs. 567 00:31:34,000 --> 00:31:35,680 Wonderful to see you here. 568 00:31:35,760 --> 00:31:38,480 What does Nawgati mean? 'Naav' means boat. 569 00:31:39,160 --> 00:31:42,320 In Sanskrit, Nawgati means navigation. 570 00:31:42,400 --> 00:31:45,760 But its spelling has a 'v'. If your spelling has 'w', it's a speedboat. 571 00:31:45,880 --> 00:31:47,760 You must say boat 572 00:31:47,840 --> 00:31:50,600 because Aman will be interested in you right away. 573 00:31:51,240 --> 00:31:53,360 - Here's the cheque. - "Take your cheque." 574 00:31:53,480 --> 00:31:56,360 - We would like to give you a demo. - Show us a demo. 575 00:31:56,440 --> 00:32:00,240 Sharks, this is our consumer-facing Nawgati Fueling App. 576 00:32:00,360 --> 00:32:02,480 [joyful music] 577 00:32:02,560 --> 00:32:06,160 This app informs our consumers about the stations available nearby. 578 00:32:06,240 --> 00:32:08,360 By what time they'd reach there 579 00:32:08,600 --> 00:32:11,920 and the waiting time after reaching there. 580 00:32:12,680 --> 00:32:14,280 This information is available on Google nowadays. 581 00:32:14,360 --> 00:32:17,240 We knew this question will be asked. 582 00:32:17,320 --> 00:32:19,240 - The thing is... - They are so elated. 583 00:32:19,320 --> 00:32:23,520 "We are prepared for the question they asked." 584 00:32:23,600 --> 00:32:27,200 You can find the gas stations using Google 585 00:32:27,280 --> 00:32:30,280 but you won't get to know the waiting time. 586 00:32:30,720 --> 00:32:33,640 We know the exact level of congestion at the gas station. 587 00:32:34,000 --> 00:32:36,560 Suppose, there is a parking lot nearby 588 00:32:36,640 --> 00:32:38,840 but you could mistake it for congestion. 589 00:32:39,520 --> 00:32:41,400 You prepared this using Google Map API, right? 590 00:32:41,480 --> 00:32:44,040 - Yes. The traffic API is definitely made using it. - Right? 591 00:32:44,120 --> 00:32:44,920 Let's proceed. 592 00:32:45,040 --> 00:32:48,640 Let's come to the star of the show that helps Nawgati earn money. 593 00:32:48,760 --> 00:32:50,120 [laughing] 594 00:32:50,200 --> 00:32:52,640 It's good that you called it the star of the show 595 00:32:52,720 --> 00:32:54,880 because it's quite obvious. 596 00:32:55,040 --> 00:32:57,440 These things are eventually a part of the map. 597 00:32:57,520 --> 00:32:59,280 [tense music] 598 00:33:09,880 --> 00:33:10,680 Very good! 599 00:33:10,760 --> 00:33:14,160 They connect their device to the CCTV and dispensers 600 00:33:14,240 --> 00:33:16,880 to get the data of the transactions done at a particular time. 601 00:33:16,960 --> 00:33:19,040 [sweeping music] 602 00:33:19,120 --> 00:33:21,760 Let me show you the features available in Aaveg. 603 00:33:23,160 --> 00:33:26,480 The yellow icon you see is an autorickshaw. 604 00:33:26,680 --> 00:33:29,800 The icons of cars represent a four-wheeler. 605 00:33:30,960 --> 00:33:35,000 The +1 symbol shows that one car is waiting at the dispenser. 606 00:33:35,080 --> 00:33:39,520 - Dispenser means the unit used to fill gas or petrol. - Okay. 607 00:33:39,720 --> 00:33:40,680 Let me tell you about the cross. 608 00:33:40,720 --> 00:33:42,120 If you go to the CNG station, 609 00:33:42,200 --> 00:33:45,000 they affix a yellow rod in the front. 610 00:33:46,040 --> 00:33:48,760 What if the car moves by mistake while the nozzle is affixed? 611 00:33:48,840 --> 00:33:50,120 CNG is highly combustible 612 00:33:50,160 --> 00:33:52,160 and there are chances of a fire breaking out. 613 00:33:53,560 --> 00:33:56,280 This station that we're showing, 614 00:33:56,360 --> 00:33:59,000 they don't have stop signs or don't use stoppers. 615 00:33:59,040 --> 00:34:00,440 Hence, you see a cross. 616 00:34:01,200 --> 00:34:03,960 - This information is important for companies. - Yes. 617 00:34:04,000 --> 00:34:05,960 - It's a part of their SOPs. - Yes. 618 00:34:06,040 --> 00:34:09,720 Is the company penalised if they don't comply with the rules? 619 00:34:09,840 --> 00:34:10,680 - Yes. - Yes. 620 00:34:10,720 --> 00:34:13,320 Let's go to the overview screen. Let me show you. 621 00:34:13,400 --> 00:34:16,800 A gas company keeps track of how many kilograms of gas they've sold. 622 00:34:16,920 --> 00:34:18,480 They usually make manual entries. 623 00:34:19,240 --> 00:34:22,640 What we've done is integrated it with dispensers and CCTVs. 624 00:34:22,640 --> 00:34:24,120 We can tell that 625 00:34:24,200 --> 00:34:27,920 out of 1000 kg of gas, 50% was given to autorickshaws. 626 00:34:28,040 --> 00:34:30,960 30% to cars and 20% to heavy motor vehicles. 627 00:34:32,680 --> 00:34:34,440 I'll show you point-wise utilisation now. 628 00:34:34,520 --> 00:34:35,800 - Dispensers... - I can't see. 629 00:34:35,800 --> 00:34:36,800 - Let me come closer. - Sure. 630 00:34:36,880 --> 00:34:38,800 - I want to understand this. - Please come. 631 00:34:38,880 --> 00:34:40,920 Here's the point-wise utilisation. 632 00:34:41,000 --> 00:34:44,520 Nozzles are being used only for about 10 to 15%. 633 00:34:45,160 --> 00:34:47,200 The rest of the time is wasted collecting payments 634 00:34:47,240 --> 00:34:48,960 or opening the bonnets of cars. 635 00:34:50,600 --> 00:34:52,840 There's scope for companies to improve efficiency here 636 00:34:52,960 --> 00:34:54,680 by reducing the time taken. 637 00:34:56,040 --> 00:34:59,600 - Hydro testing is performed on CNG vehicles every 3 years. - Correct. 638 00:34:59,680 --> 00:35:01,240 In the absence of hydro testing, 639 00:35:01,320 --> 00:35:04,440 there are chances of an explosion taking place at the CNG station. 640 00:35:05,760 --> 00:35:08,840 One cylinder explodes and the station is shut for 6 months. 641 00:35:09,800 --> 00:35:11,920 The company suffers a loss of Rs. 2 to 3 crores. 642 00:35:12,920 --> 00:35:15,480 But checking the metal detector 643 00:35:15,600 --> 00:35:17,200 in CNG vehicles every time is not possible 644 00:35:17,200 --> 00:35:18,480 and neither do people do it. 645 00:35:19,160 --> 00:35:20,120 We link it with 646 00:35:20,160 --> 00:35:23,080 the Petroleum and Explosives Safety Organization's (PESO) database 647 00:35:28,520 --> 00:35:30,960 Within two seconds, the station operator gets a text 648 00:35:31,040 --> 00:35:33,320 whether the car is good to go to be fuelled up. 649 00:35:33,440 --> 00:35:34,440 Very nice. 650 00:35:35,200 --> 00:35:36,240 How do you make money? 651 00:35:36,320 --> 00:35:39,800 Aaveg offering is live through the subscription model. 652 00:35:41,080 --> 00:35:43,200 We take a fixed amount from every oil and gas company 653 00:35:43,240 --> 00:35:45,880 for every station each month. 654 00:35:45,960 --> 00:35:47,160 What is that amount? 655 00:35:47,280 --> 00:35:49,360 It ranges between Rs. 5000 to 25,000. 656 00:35:56,440 --> 00:35:58,800 for congestion if they want to know the waiting time. 657 00:35:59,680 --> 00:36:02,600 A different rate to find out whether hydro testing has been done. 658 00:36:03,720 --> 00:36:05,920 A different rate for transaction billing. 659 00:36:06,000 --> 00:36:06,920 From fuel stations. 660 00:36:07,000 --> 00:36:08,480 - From companies. - Companies. 661 00:36:08,600 --> 00:36:10,160 Companies. Petrol pump owners are not paying for this. 662 00:36:10,200 --> 00:36:11,320 - Correct? - They will. 663 00:36:11,400 --> 00:36:12,840 - We will... - In future. 664 00:36:13,080 --> 00:36:15,200 [tense music playing] 665 00:36:15,320 --> 00:36:16,160 Just companies for now. 666 00:36:16,240 --> 00:36:17,640 Okay. And you've nothing to do with consumers. 667 00:36:17,680 --> 00:36:19,520 Six months free for consumers... 668 00:36:19,600 --> 00:36:21,760 - Then they will pay too. - Yes. 669 00:36:21,840 --> 00:36:24,880 Why will petrol pump owners and customers pay you? 670 00:36:25,000 --> 00:36:26,920 - I'll tell you why. - Why will they pay you? 671 00:36:27,000 --> 00:36:28,880 - You're saving them Rs. 2 crores. - Yes. 672 00:36:28,920 --> 00:36:30,360 With respect to compliance. 673 00:36:30,440 --> 00:36:32,640 - They will pay you for that alone. - Absolutely. 674 00:36:34,360 --> 00:36:36,160 Are consumers paying you? 675 00:36:36,280 --> 00:36:39,360 - Consumers haven't started yet. - Okay. And they won't even pay you. 676 00:36:41,040 --> 00:36:41,960 What for? 677 00:36:42,040 --> 00:36:43,240 Consumers won't pay. 678 00:36:44,160 --> 00:36:46,360 Understand the mindset of a CNG consumer. 679 00:36:46,440 --> 00:36:47,640 He's saving money. 680 00:36:47,640 --> 00:36:49,480 He bought a CNG car for the mileage. 681 00:36:49,560 --> 00:36:51,840 Taxi drivers specifically are out of the question. 682 00:36:53,400 --> 00:36:56,080 CNG has two primary segments. 683 00:36:56,160 --> 00:36:57,400 Private and commercial. 684 00:36:57,480 --> 00:36:59,160 - Right. - Commercial, yes. 685 00:36:59,240 --> 00:37:01,880 They might not pay for an app. 686 00:37:01,960 --> 00:37:06,360 But their fleet operator may take a plan. 687 00:37:07,680 --> 00:37:09,400 They may take a plan. 688 00:37:10,360 --> 00:37:13,360 Your business can sustain itself even without that. 689 00:37:13,400 --> 00:37:14,760 Why are you going into quicksand? 690 00:37:14,840 --> 00:37:15,760 Yes. 691 00:37:16,520 --> 00:37:18,560 What is your current monthly revenue? 692 00:37:18,640 --> 00:37:22,080 Our current month's billing will be around Rs. 4 lakhs. 693 00:37:22,720 --> 00:37:26,720 We will make a revenue of Rs. 2.5 crores this financial year. 694 00:37:27,480 --> 00:37:29,840 From customers that materialised through the pilot stage. 695 00:37:29,920 --> 00:37:31,840 - Who? - IGL, Indian Oil, 696 00:37:31,920 --> 00:37:34,320 - Mahanagar Gas, Gujarat Gas, Sabarmati Gas... - From them? 697 00:37:34,400 --> 00:37:35,720 All of these companies. 698 00:37:36,920 --> 00:37:39,200 What is your projected revenue for 2023-24? 699 00:37:39,280 --> 00:37:40,520 20x. Rs. 50 crores. 700 00:37:40,640 --> 00:37:41,920 - Rs. 50 crores. - Yes. 701 00:37:42,040 --> 00:37:43,040 How so? 702 00:37:43,120 --> 00:37:47,520 So, we are currently deploying directly with companies. 703 00:37:47,640 --> 00:37:50,400 In the beginning, companies will allot 5 to 6 fuel stations. 704 00:37:50,480 --> 00:37:53,520 And as it rolls out, it increases to 1000 to 2000 stations. 705 00:37:54,040 --> 00:37:55,120 But there will come a time 706 00:37:55,160 --> 00:37:57,080 when suppose one or two companies fully implement it, 707 00:37:57,120 --> 00:37:58,520 then how will your business grow? 708 00:37:58,560 --> 00:38:01,240 There are over 80,000 petrol pumps as of now. 709 00:38:01,320 --> 00:38:03,880 This number will increase to 125,000 by 2025. 710 00:38:04,720 --> 00:38:06,640 Assuming everyone goes with your solution. 711 00:38:07,800 --> 00:38:10,080 What if someone else launches this in the meantime 712 00:38:10,200 --> 00:38:11,800 at Rs. 2000 per station? 713 00:38:11,840 --> 00:38:13,880 Companies will switch from your Rs. 5000. 714 00:38:14,480 --> 00:38:17,920 We are ensuring to build very strong relations. 715 00:38:22,400 --> 00:38:24,400 So, you can't bank on relations. 716 00:38:26,080 --> 00:38:29,040 If you sell something for Rs. 5000 and I start offering it at Rs. 500, 717 00:38:29,120 --> 00:38:31,920 then relations will take a back seat 718 00:38:32,120 --> 00:38:35,360 to financial discipline, you see? 719 00:38:36,080 --> 00:38:40,320 What is it you are doing that no one can compete with you? 720 00:38:40,440 --> 00:38:43,560 No one has access to the fuelling data. 721 00:38:43,640 --> 00:38:44,720 There's nothing defensible about it. 722 00:38:44,760 --> 00:38:47,240 If I start my company in future, 723 00:38:47,320 --> 00:38:49,920 then I can compete with you, right? 724 00:38:51,160 --> 00:38:56,040 I could install the software and hardware of 4 CCTVs 725 00:38:56,120 --> 00:38:57,600 using software on my computer. 726 00:38:57,640 --> 00:39:00,000 I'll be able to track it too. I'll build a dashboard. 727 00:39:00,640 --> 00:39:02,080 What is your equity split? 728 00:39:02,200 --> 00:39:04,920 35%, 29% and 23%. 729 00:39:10,120 --> 00:39:11,080 What's the valuation? 730 00:39:11,160 --> 00:39:13,440 - Rs. 33 crores that we're asking you. - Okay. 731 00:39:13,520 --> 00:39:16,720 Other than that, a consortium of angels 732 00:39:16,800 --> 00:39:20,640 that has former leadership of tech companies are coming on board. 733 00:39:20,640 --> 00:39:23,600 They have confirmed to give Rs. 80 lakhs just this morning. 734 00:39:24,360 --> 00:39:26,120 Okay. Are you making profits or losses? 735 00:39:26,200 --> 00:39:29,240 We'll be billing for the first time. So, we're making a loss. 736 00:39:33,000 --> 00:39:34,440 - Rs. 6 lakhs. - Okay. 737 00:39:34,480 --> 00:39:37,240 This number will go up to Rs. 15 lakhs over the next 2 months. 738 00:39:37,560 --> 00:39:38,440 Why? 739 00:39:38,760 --> 00:39:41,240 We wish to hire four more tech employees. 740 00:39:41,320 --> 00:39:44,960 We also want to outsource a portion to expand operations 741 00:39:45,080 --> 00:39:46,400 as well as hire some people. 742 00:39:52,800 --> 00:39:54,040 I am of the opinion 743 00:39:54,160 --> 00:39:56,960 that consumers will not pay for this. 744 00:39:58,360 --> 00:40:00,840 I'm not able to appreciate it 745 00:40:01,000 --> 00:40:02,680 and for that reason, I am out. 746 00:40:03,520 --> 00:40:06,920 I'd have been interested if this had a tech moat. 747 00:40:07,000 --> 00:40:09,840 But more companies will enter because of an operational moat. 748 00:40:09,920 --> 00:40:13,400 So, I am out but I wish you the best of luck. 749 00:40:13,560 --> 00:40:14,760 - Thank you so much, sir. - Thank you. 750 00:40:14,840 --> 00:40:16,720 Do you know what oligopoly means? 751 00:40:22,280 --> 00:40:25,920 This isn't just oligopoly, but government oligopoly. 752 00:40:26,000 --> 00:40:26,840 Yes. 753 00:40:27,440 --> 00:40:30,240 It's very hard to make money in this. 754 00:40:31,360 --> 00:40:32,680 I started a company 755 00:40:32,760 --> 00:40:34,760 where we sold our goods to a government company. 756 00:40:34,840 --> 00:40:37,040 I used to stand in queues all day. 757 00:40:37,120 --> 00:40:38,560 I had to shut down my company. 758 00:40:39,800 --> 00:40:41,920 I believe this is a very hard business 759 00:40:42,080 --> 00:40:43,440 and for that reason, I am out. 760 00:40:44,280 --> 00:40:46,320 I have a piece of advice for you. 761 00:40:47,560 --> 00:40:50,520 Aggregate a massive number of users. 762 00:40:52,160 --> 00:40:53,280 The rest is up to you. 763 00:40:53,360 --> 00:40:55,600 I wish you the best. Research the consumer angle. 764 00:40:55,760 --> 00:40:59,800 When you get 1 crore users, that's when it'll work for you. 765 00:41:24,520 --> 00:41:25,360 It's doable. 766 00:41:25,440 --> 00:41:27,640 Negotiation is in our blood. 767 00:41:28,000 --> 00:41:30,200 Get it? We need to have some aim! 768 00:41:31,360 --> 00:41:33,240 Okay, tell us your decision. 769 00:41:33,320 --> 00:41:35,080 [tense music playing] 770 00:41:36,800 --> 00:41:40,160 Thank you for the offer. We have a counteroffer. 771 00:41:40,240 --> 00:41:42,160 - Oh, no. - Yes, go on. 772 00:41:42,240 --> 00:41:44,240 Rs. 67 lakhs for 2.5% equity. 773 00:41:50,600 --> 00:41:52,240 Either it will succeed or fail. 774 00:41:53,560 --> 00:41:56,480 You were ambitious to say you'll hit Rs. 50 crores next year. 775 00:41:56,520 --> 00:41:57,960 That's a bit unrealistic. 776 00:41:59,160 --> 00:42:00,360 But you might even do it. 777 00:42:00,440 --> 00:42:03,400 Don't lose us over such a trivial issue. 778 00:42:03,680 --> 00:42:05,560 [intense music playing] 779 00:42:05,640 --> 00:42:06,960 Can you increase the amount then? 780 00:42:07,040 --> 00:42:08,560 What will you do with all that money? 781 00:42:08,640 --> 00:42:11,000 There should be a little negotiation on both ends. 782 00:42:11,040 --> 00:42:12,920 Fine, let's close this if you wish to negotiate. 783 00:42:12,960 --> 00:42:15,480 This is my last offer after which I'm out. Okay? 784 00:42:15,600 --> 00:42:17,840 [intense music playing] 785 00:42:18,520 --> 00:42:20,320 Rs. 67 lakhs for 3% equity. 786 00:42:42,000 --> 00:42:44,480 Normally, I say let's set it ablaze, but I will not say it today. 787 00:42:44,560 --> 00:42:46,880 - It's fuel! - We want to avoid that! 788 00:42:47,120 --> 00:42:48,520 Never at a fuel pump! 789 00:42:48,560 --> 00:42:51,240 - We'll douse the fire. - That was a good one. 790 00:42:51,280 --> 00:42:53,160 [music playing] 791 00:42:54,960 --> 00:42:59,800 Aman and Amit chose Nawgati and also invested in it. 792 00:43:00,200 --> 00:43:01,520 It's your turn to choose now. 793 00:43:01,760 --> 00:43:03,160 Smallcase is giving you the option 794 00:43:03,200 --> 00:43:05,720 to choose one of the top-industry stock portfolios. 795 00:43:05,920 --> 00:43:08,640 It's about investing your money long-term. 796 00:43:08,920 --> 00:43:10,040 And the choice is yours. 797 00:43:10,080 --> 00:43:11,000 So, what will it be? 798 00:43:11,040 --> 00:43:14,320 Will it be the IT industry's stock portfolio IT smallcase? 799 00:43:14,400 --> 00:43:17,200 Or the banking industry's stock portfolio banking smallcase? 800 00:43:17,280 --> 00:43:20,000 We own an IT company, so we prefer IT. 801 00:43:20,080 --> 00:43:22,640 India has so much potential to expand. 802 00:43:22,720 --> 00:43:25,920 Even the oil and gas space we are currently working in, 803 00:43:26,320 --> 00:43:29,440 - resources are lying untapped. - Okay. 804 00:43:30,160 --> 00:43:32,120 So, with IT smallcase's help, 805 00:43:32,120 --> 00:43:35,160 - you would like to tap oil and gas resources. - Yes. 806 00:43:35,240 --> 00:43:38,200 This is a confluence of two industries pretty much backed on IT. 807 00:43:38,280 --> 00:43:40,280 Would you like to do the honours yourself 808 00:43:40,320 --> 00:43:41,680 by choosing IT smallcase? 809 00:43:43,640 --> 00:43:46,280 Congratulations. Smallcase gifts you 810 00:43:46,360 --> 00:43:48,280 the IT smallcase portfolio worth Rs. 51,000 811 00:43:48,440 --> 00:43:51,520 straight into your demat account. Congratulations! 812 00:43:51,600 --> 00:43:53,280 - Congratulations. - Thank you so much. 813 00:43:53,360 --> 00:43:54,600 Congratulations to you too. 814 00:43:55,080 --> 00:43:57,200 I'll say it when you download the Smallcase app. 815 00:43:57,320 --> 00:44:01,000 Portfolios managed by the finest financial experts await you. 816 00:44:01,080 --> 00:44:02,520 So hurry! Well done. 817 00:44:02,800 --> 00:44:04,040 Congratulations once again. 818 00:44:04,720 --> 00:44:08,440 [theme music plays] 819 00:44:19,680 --> 00:44:22,880 [theme music fades] 820 00:44:24,600 --> 00:44:27,760 Sharks, the future is electric. 821 00:44:28,840 --> 00:44:32,680 But electric cars are very expensive. 822 00:44:33,880 --> 00:44:36,280 Sharks, why do we buy cars? 823 00:44:36,560 --> 00:44:39,760 We pay the full price but it depreciates with time. 824 00:44:40,800 --> 00:44:44,040 But millennials and Gen Z don't want to buy them, 825 00:44:44,160 --> 00:44:45,920 they merely want experiences. 826 00:44:46,800 --> 00:44:50,680 To solve both these problems, we present SWYTCHD. 827 00:44:50,760 --> 00:44:52,560 [music playing] 828 00:44:55,480 --> 00:44:59,120 An all-inclusive electric vehicle subscription business. 829 00:45:10,000 --> 00:45:11,760 In one monthly payment, 830 00:45:20,760 --> 00:45:23,120 When the month ends, the customer has a choice 831 00:45:23,240 --> 00:45:25,800 to switch from one vehicle to the other. 832 00:45:27,240 --> 00:45:29,640 If they don't want another vehicle, 833 00:45:29,760 --> 00:45:31,760 they can stop their subscription. 834 00:45:31,840 --> 00:45:34,040 SWYTCHD provides customers with this flexibility. 835 00:45:35,120 --> 00:45:36,840 In 8 months of operations, 836 00:45:36,840 --> 00:45:41,720 Bengaluru has given us 127 cars through monthly active subscribers. 837 00:45:41,840 --> 00:45:44,920 We have over 700 people on our waitlist. 838 00:45:46,560 --> 00:45:48,560 Sharks, we have come here 839 00:45:56,880 --> 00:46:00,200 don't buy and depreciate. Subscribe and appreciate. 840 00:46:00,240 --> 00:46:01,080 Thank you. 841 00:46:01,240 --> 00:46:03,760 [music playing] 842 00:46:03,840 --> 00:46:04,880 Wow! 843 00:46:05,120 --> 00:46:06,560 Sameer, you're looking electric! 844 00:46:06,920 --> 00:46:07,920 Thank you. 845 00:46:08,000 --> 00:46:09,680 - You're 29 years, right? - Yes. 846 00:46:09,800 --> 00:46:11,640 Tell us your background. 847 00:46:11,720 --> 00:46:13,320 Then we'll switch to the business. 848 00:46:13,400 --> 00:46:15,880 Certainly, Peyush. My background is in automotive. 849 00:46:16,440 --> 00:46:18,600 For over a decade, I've worked with Jaguar Land Rover, 850 00:46:18,680 --> 00:46:21,200 the car business, in the UK. 851 00:46:22,000 --> 00:46:24,120 Most recently, I was the Global Head of Pricing, 852 00:46:24,160 --> 00:46:26,240 pricing strategy and competitive intelligence. 853 00:46:26,640 --> 00:46:28,960 I have worked in many senior leadership and management roles 854 00:46:29,000 --> 00:46:30,040 at Jaguar Land Rover. 855 00:46:30,120 --> 00:46:32,720 Senior manager in marketing and commercial, 856 00:46:32,800 --> 00:46:34,800 business planning manager for autonomous cars, 857 00:46:34,880 --> 00:46:36,440 corporate strategy manager of... 858 00:46:36,440 --> 00:46:39,240 - Well-versed in the automotive... - You did all of this at 29! 859 00:46:39,320 --> 00:46:40,840 Yes, I was the youngest manager 860 00:46:40,920 --> 00:46:43,160 and youngest member of the senior leadership team ever 861 00:46:43,160 --> 00:46:44,440 in history. 862 00:46:44,920 --> 00:46:46,640 One of the inspirations of SWYTCHD is that 863 00:46:46,720 --> 00:46:48,960 I got a perk when I became a manager. 864 00:46:49,040 --> 00:46:51,560 That was I could switch between a Jaguar and Land Rover. 865 00:46:51,640 --> 00:46:54,440 One car, every six months 866 00:46:54,520 --> 00:46:57,880 or every 6000 miles or 9000 kilometres. 867 00:46:59,400 --> 00:47:02,400 Sameer, what do you change every 6 months now? This bike! 868 00:47:02,560 --> 00:47:04,880 - No, this is available on a monthly subscription. - Okay. 869 00:47:04,960 --> 00:47:06,520 You can change monthly if you so wish. 870 00:47:06,600 --> 00:47:08,240 But you got that idea from there. 871 00:47:08,360 --> 00:47:10,840 - Yes. - You could switch cars there. 872 00:47:11,440 --> 00:47:12,560 I have three questions. 873 00:47:13,960 --> 00:47:16,640 - The first question is on subscriptions. - Yes? 874 00:47:17,320 --> 00:47:20,240 Subscription models just didn't get a positive response in India. 875 00:47:21,120 --> 00:47:22,160 What's the reason for that? 876 00:47:22,240 --> 00:47:26,000 - Yes. Globally, petrol and diesel subscriptions don't run. - Okay. 877 00:47:26,080 --> 00:47:28,320 - But the EV model might. - Yes. 878 00:47:28,400 --> 00:47:29,960 Why? Because of economics... 879 00:47:30,080 --> 00:47:31,960 Yes, if you want to buy it... 880 00:47:32,000 --> 00:47:32,920 - Yes? - Expensive. 881 00:47:33,920 --> 00:47:36,360 - It's really expensive. - Okay, I got it. 882 00:47:36,480 --> 00:47:37,400 Second question. 883 00:47:37,720 --> 00:47:38,760 All these companies, 884 00:47:38,800 --> 00:47:41,520 including Ather as well as Bounce here, 885 00:47:41,600 --> 00:47:43,680 offer subscription models. 886 00:47:43,720 --> 00:47:46,680 - If you want to buy an expensive car, you can pay monthly. - Yes. 887 00:47:46,760 --> 00:47:47,640 Correct? 888 00:47:48,640 --> 00:47:50,560 Yes. You can take a loan and pay EMIs. 889 00:47:50,680 --> 00:47:52,480 So, the first problem is addressed. 890 00:47:52,600 --> 00:47:56,560 - You can take an expensive car on a loan. - Okay. 891 00:47:56,960 --> 00:47:58,480 Your main benefit is 892 00:47:58,560 --> 00:48:01,520 that today, you're driving a red car and you switch to blue next month. 893 00:48:01,600 --> 00:48:02,920 - Yes... - That's your only benefit. 894 00:48:02,960 --> 00:48:05,160 - No... - There's one more that he mentioned. 895 00:48:05,800 --> 00:48:09,640 Insurance, breakdown and charging. These services. 896 00:48:10,400 --> 00:48:12,920 If you buy a car, you'll have to do all this yourself. 897 00:48:13,040 --> 00:48:15,200 Insurance... Let me clear up the confusion. 898 00:48:15,280 --> 00:48:17,600 You only need to drive the car. 899 00:48:18,560 --> 00:48:20,360 But, Sameer, it boils down to the same thing. 900 00:48:20,400 --> 00:48:22,080 [intense music playing] 901 00:48:22,840 --> 00:48:24,680 First, you said you offer cost benefit. 902 00:48:24,720 --> 00:48:26,480 - That's why one must opt for it. - Yes. 903 00:48:26,960 --> 00:48:27,840 Now you are saying 904 00:48:27,960 --> 00:48:31,160 - that convenience is a major factor. - Yes, both are. 905 00:48:31,240 --> 00:48:34,280 - Yes. - Alright? Let's forget about convenience. 906 00:48:34,400 --> 00:48:37,560 Because I don't think it helps in making a proposition 907 00:48:37,640 --> 00:48:38,920 as it has already been tried. 908 00:48:39,000 --> 00:48:41,560 Yes, but my customers 909 00:48:41,920 --> 00:48:43,360 fall in the range of 25 years to 40 years. 910 00:48:43,440 --> 00:48:44,760 [dramatic music] 911 00:48:44,880 --> 00:48:46,240 - They don't want to buy. - Yes. 912 00:48:46,320 --> 00:48:49,040 Millennials and Gen Z in tier-1 cities 913 00:48:49,160 --> 00:48:51,920 - already have assets. - The cap is reduced. 914 00:48:52,040 --> 00:48:55,560 I think any model in India 915 00:48:55,800 --> 00:48:57,520 where the asset ownership 916 00:48:58,240 --> 00:49:01,240 doesn't belong to the one using it, becomes a challenge. 917 00:49:01,320 --> 00:49:03,000 Because the asset is destroyed. 918 00:49:03,080 --> 00:49:06,040 If six people ride this vehicle, 919 00:49:06,160 --> 00:49:07,960 it won't last even for six months. 920 00:49:08,080 --> 00:49:09,560 [sweeping music] 921 00:49:09,640 --> 00:49:12,000 Firstly, it's a vehicle for personal use. 922 00:49:12,080 --> 00:49:16,440 We don't provide SWYTCHD for logistics, Zomato and Swiggy usage. 923 00:49:21,320 --> 00:49:24,240 No. We own 127 vehicles. 924 00:49:24,360 --> 00:49:27,680 Only 31 out of them are shown as assets and mentioned in books. 925 00:49:28,280 --> 00:49:31,080 The rest of them are leased under an operating lease agreement. 926 00:49:34,840 --> 00:49:36,840 buy them and provide them to us on lease. 927 00:49:40,600 --> 00:49:42,880 It could be 36 to 48 months for cars. 928 00:49:42,960 --> 00:49:45,320 Who is taking the risk of asset deterioration? 929 00:49:45,400 --> 00:49:47,360 The owner is taking the risk. 930 00:49:48,480 --> 00:49:50,320 What is your cost of capital? 931 00:49:50,440 --> 00:49:53,640 - Please explain the business first. - What is your cost of capital? 932 00:49:53,720 --> 00:49:55,240 Okay. If a vehicle costs Rs. 1 lakh... 933 00:49:55,360 --> 00:49:57,000 [ethereal music] 934 00:49:57,080 --> 00:49:59,520 The lease term is for 36 months. 935 00:49:59,640 --> 00:50:03,800 There's an assumption of 50% depreciation 936 00:50:03,880 --> 00:50:05,840 - by the financier. - In three years? 937 00:50:05,960 --> 00:50:07,320 - Three years. - Yes, three years. 938 00:50:07,400 --> 00:50:09,320 So my monthly payments 939 00:50:09,400 --> 00:50:12,240 are 50%. Rs. 50,000 divided by 36. 940 00:50:12,720 --> 00:50:15,720 Plus interest on the principal amount of Rs. 1 lakh. 941 00:50:15,800 --> 00:50:17,880 [upbeat music] 942 00:50:17,960 --> 00:50:20,280 So my payment would be 943 00:50:20,360 --> 00:50:24,040 between Rs. 2,400 to Rs. 2,750 944 00:50:24,120 --> 00:50:27,920 depending on the value of interest. It could be 12.5%, 15% or 16%. 945 00:50:28,000 --> 00:50:32,240 And I charge Rs. 4,500 per month for this. 946 00:50:33,880 --> 00:50:37,440 Loans are given for new cars. If I buy a car, 947 00:50:37,520 --> 00:50:39,400 I can get a loan at 8% to 9%. 948 00:50:39,480 --> 00:50:41,720 Yes. Anyway, you'll pay between 8% and 11%. 949 00:50:41,800 --> 00:50:44,440 Right? So your model is prohibitive 950 00:50:44,560 --> 00:50:47,720 because you want to charge more than double in the name of convenience. 951 00:50:48,000 --> 00:50:50,560 You may compare the cost of ownership, 952 00:50:50,640 --> 00:50:52,880 EMI, insurance, servicing 953 00:50:52,960 --> 00:50:55,000 and the cost of charging 954 00:50:55,080 --> 00:50:56,840 versus my monthly subscription. 955 00:50:56,920 --> 00:50:59,000 A car loan is for 5 years normally. 4 or 5 years. 956 00:50:59,080 --> 00:51:00,240 Please explain in the light of a loan. 957 00:51:00,320 --> 00:51:03,200 - Help me understand as a consumer. - EMI for 5 years is Rs. 30,000. 958 00:51:03,280 --> 00:51:05,200 Insurance would cost Rs. 4,000. 959 00:51:05,280 --> 00:51:07,200 The charging bill will be Rs. 1,500. 960 00:51:07,320 --> 00:51:10,800 And the servicing cost will be 961 00:51:10,880 --> 00:51:12,720 Rs. 1,000 per month. 962 00:51:12,800 --> 00:51:15,840 - It adds up to Rs. 38,000 but you charge Rs. 40,000. - Rs. 39,000. 963 00:51:15,920 --> 00:51:18,080 - Around Rs. 40,000. - So you are more expensive. 964 00:51:19,080 --> 00:51:22,240 Sameer, let me tell you something as a consumer. 965 00:51:22,320 --> 00:51:24,360 You said that the insurance costs Rs. 4,000. 966 00:51:24,440 --> 00:51:27,760 - The insurance amount lessens every year. - Yes. 967 00:51:28,280 --> 00:51:31,120 After five years, the amount will be half. Do you agree? 968 00:51:31,200 --> 00:51:33,640 - Yes. - The way you are selling the product 969 00:51:33,720 --> 00:51:36,600 makes me feel that you are misleading me. 970 00:51:38,400 --> 00:51:41,400 You said that the monthly insurance cost is Rs. 4,000. It's not true. 971 00:51:41,480 --> 00:51:43,400 [sweeping music] 972 00:51:43,480 --> 00:51:45,280 - Please share your sales figures with us. - Yes. 973 00:51:45,360 --> 00:51:48,760 - Go on. - Actual monthly subscribers are 127. 974 00:51:56,560 --> 00:51:58,160 - Rs. 5.6 lakhs. - Yes. 975 00:51:58,240 --> 00:52:00,400 Last month we earned Rs. 3.7 lakhs. 976 00:52:00,520 --> 00:52:02,840 Growing well. Not bad. 977 00:52:02,920 --> 00:52:04,960 - Alright. - Prior to that it was Rs. 2.1 lakhs. 978 00:52:10,120 --> 00:52:12,000 The confirmed orders will help us reach 979 00:52:12,080 --> 00:52:13,720 a run rate of Rs. 13 lakhs per month this year. 980 00:52:13,840 --> 00:52:15,560 Did the corporates give you confirmed orders? 981 00:52:15,640 --> 00:52:19,160 We operate in both B2C and B2B models. 982 00:52:19,280 --> 00:52:20,720 In the B2B segment, 983 00:52:20,840 --> 00:52:24,320 it's meant for the white-collared employees of corporates. 984 00:52:24,400 --> 00:52:26,320 - Not for logistics. - It's not for delivery. I got it. 985 00:52:26,400 --> 00:52:28,400 This model will work in the corporate sector. 986 00:52:30,480 --> 00:52:31,880 It's important to understand the customer. 987 00:52:31,960 --> 00:52:34,600 You are still in the UK, mentally. 988 00:52:35,160 --> 00:52:37,080 Your style and elegance are appealing 989 00:52:37,160 --> 00:52:40,240 but I feel you don't know the Indian consumer yet. 990 00:52:41,040 --> 00:52:42,160 That's my personal view. 991 00:52:42,240 --> 00:52:45,200 You must study the Indian consumers first. 992 00:52:45,280 --> 00:52:49,520 For this reason, I feel that this model may not work 993 00:52:50,000 --> 00:52:52,880 and due to that reason, I'm out. 994 00:52:53,240 --> 00:52:56,360 I believe that over a period of time, 995 00:52:56,440 --> 00:52:59,000 - this industry will consolidate. - I fully agree. 996 00:52:59,120 --> 00:53:00,840 - And it would become affordable. - Right. 997 00:53:00,920 --> 00:53:04,760 At that point, the masses which is the bigger TAM 998 00:53:04,880 --> 00:53:08,640 will intend to pay EMI and own the vehicle. 999 00:53:10,160 --> 00:53:13,160 That's the reason, your business 1000 00:53:13,240 --> 00:53:16,320 doesn't appear to be profitable in the long term. 1001 00:53:16,440 --> 00:53:18,680 [suspenseful music] 1002 00:53:18,800 --> 00:53:22,080 - And for that reason, I'm out. - Alright. I accept your decision. 1003 00:53:22,960 --> 00:53:26,720 I think your work holds a proposition. 1004 00:53:26,800 --> 00:53:30,960 - The challenge is you estimated the depreciation at 50%. - Yes 1005 00:53:31,400 --> 00:53:35,200 - And instead of taking the risk you passed it to the owner. - Yes. 1006 00:53:35,720 --> 00:53:39,240 - Suppose I buy 50 vehicles in future. - Okay. 1007 00:53:39,320 --> 00:53:43,040 And the vehicles break in three years. 1008 00:53:43,120 --> 00:53:44,760 I'd bear a loss 1009 00:53:44,840 --> 00:53:47,800 - but I won't collaborate with you in future. - Okay. 1010 00:53:50,120 --> 00:53:52,080 And I'll spread the word 1011 00:53:52,200 --> 00:53:55,200 - that your brand can't be trusted. - I understand. 1012 00:53:55,640 --> 00:53:57,560 So I'm out today. 1013 00:53:59,800 --> 00:54:01,960 Firstly, let me tell you 1014 00:54:02,040 --> 00:54:04,160 - that your current business... - Yes? 1015 00:54:04,240 --> 00:54:06,480 - It's called financial arbitrage. - Correct! 1016 00:54:13,080 --> 00:54:14,960 [tense music] 1017 00:54:15,040 --> 00:54:16,000 Secondly, 1018 00:54:16,080 --> 00:54:18,440 the true test of these businesses 1019 00:54:18,520 --> 00:54:21,880 is during a black swan event. 1020 00:54:26,560 --> 00:54:29,360 - Okay. - The lending businesses and financial arbitrage businesses. 1021 00:54:29,440 --> 00:54:31,160 Only those companies survive 1022 00:54:31,240 --> 00:54:33,880 whose balance sheets are strong. 1023 00:54:35,200 --> 00:54:36,280 You must have enough capital. 1024 00:54:36,360 --> 00:54:39,720 Over 20 years, they become the large finance companies 1025 00:54:39,800 --> 00:54:41,480 - that we see. - Correct! 1026 00:54:41,560 --> 00:54:44,520 I don't see that stability in you now. 1027 00:54:45,880 --> 00:54:48,040 For this reason, I'm out today. 1028 00:54:49,040 --> 00:54:53,000 But I'll surely take the address of your tailor. Thank you very much! 1029 00:54:53,080 --> 00:54:54,280 I'll give. Thank you! [laughing] 1030 00:54:54,360 --> 00:54:56,720 [laughing] 1031 00:54:58,040 --> 00:54:59,880 Sameer, please don't listen to them. I'm the only one left. 1032 00:54:59,960 --> 00:55:01,600 I'm interested in this business. 1033 00:55:02,480 --> 00:55:05,360 - I want to do this business for sure. - Okay. 1034 00:55:05,480 --> 00:55:09,520 I'm okay with subscriptions but I don't see the depth in you. 1035 00:55:10,560 --> 00:55:14,400 If you can sell me your business in the next 3 minutes, I'll fund you. 1036 00:55:14,480 --> 00:55:15,680 - Your last chance. - Alright. 1037 00:55:15,760 --> 00:55:18,680 [sweeping music] 1038 00:55:19,960 --> 00:55:22,640 Our consumers are millennials and Gen Z. 1039 00:55:22,720 --> 00:55:24,920 Sameer, suppose I'm Gen Z. 1040 00:55:25,000 --> 00:55:27,040 Now please sell the product to me. 1041 00:55:29,000 --> 00:55:30,880 Why do you want to purchase? 1042 00:55:30,960 --> 00:55:33,720 If you subscribe to everything, 1043 00:55:33,800 --> 00:55:36,800 personal travel is something similar. 1044 00:55:37,080 --> 00:55:38,600 Why do you want to buy if you can 1045 00:55:38,720 --> 00:55:41,920 enjoy the benefits of a subscription? 1046 00:55:42,240 --> 00:55:44,520 Sameer, you are being generic in your pitch. Right? 1047 00:55:46,040 --> 00:55:48,840 I expect you to explain 1048 00:55:48,920 --> 00:55:52,560 the benefits of SWYTCHD 1049 00:55:52,640 --> 00:55:54,440 versus buying a personal vehicle. 1050 00:55:55,280 --> 00:55:57,200 I'm an Indian consumer. 1051 00:55:57,320 --> 00:55:58,960 - The benefits... - I understand in terms of money. 1052 00:55:59,040 --> 00:56:01,080 There's an EMI of Rs. 4,500. 1053 00:56:01,160 --> 00:56:02,920 - Correct! - It costs Rs. 4,200. 1054 00:56:03,000 --> 00:56:06,160 Whether it's feasible or not. The Indian consumer calculates this way. 1055 00:56:07,200 --> 00:56:09,040 - Every family thinks this way. - Okay. 1056 00:56:09,120 --> 00:56:13,400 Let me tell you that I want to be out as you couldn't convince me. 1057 00:56:13,520 --> 00:56:15,200 [sweeping music] I understand! 1058 00:56:15,280 --> 00:56:18,400 I want to be out today but I'm interested in this model. 1059 00:56:18,480 --> 00:56:21,320 If you make a sharper pitch, we may meet later. 1060 00:56:21,400 --> 00:56:23,680 - Thank you! Bye! - Thank you! 1061 00:56:23,760 --> 00:56:25,720 - Sameer, I hope you remember what I said. - Yes. 1062 00:56:25,800 --> 00:56:28,800 Instead of SWYTCHD if you pitch STITCHED, we'll be interested. 1063 00:56:29,560 --> 00:56:31,840 Second entrepreneurial journey. Thank you! 1064 00:56:31,960 --> 00:56:33,960 - Good luck! - Good luck! 1065 00:56:50,000 --> 00:56:51,680 and be the ultimate Home Shark. 1066 00:56:52,480 --> 00:56:54,520 'In today's Shark Xperience segment, Aman, ' 1067 00:56:54,600 --> 00:56:57,040 'Hashib from Ernakulam has a question for you.' 1068 00:56:57,160 --> 00:57:00,200 'You are famous in addition to being rich.' 1069 00:57:00,280 --> 00:57:04,360 'How do you deal with the newfound fame and your fans?' 1070 00:57:04,440 --> 00:57:07,080 'Doesn't it distract you from your work?' 1071 00:57:07,160 --> 00:57:10,680 Hi, Hashib! That's a good question. Nowadays, the lines are blurred.