Hello, I am Rahul Dua.
Welcome to Shark Tank season 2.
Co-presented by Acko. Payments partner, Cashfree payments.
Ideas partner, Smallcase. Co-powered by PokerBaazi.
Money partner, Fi Money. Online food partner, Eatfit.
Eyewear partner, Lenskart.
I hope you are ready because pitchers, Sharks
and the host are ready.
You may see for yourself.
[music playing]
In life, courage is the magic
that fulfils your dreams.
[music playing]
- Wow! - To progress in life,
bold decisions must be made.
Peyush made a bold decision
of quitting his high-paying Microsoft job
and to have the courage
to start his business.
At the age of 55,
I quit my well-established, high-paying position
and made a bold decision to become an entrepreneur.
[music playing]
And to join an industry
that I have no experience in or have never explored.
Wow!
I made a bold decision too.
I'm from a traditional family
where drinking is never discussed.
I launched a beer brand.
[music playing]
My uncle supported me.
[laughs]
He not only convinced my family
but also became my business partner.
I wish everybody gets an uncle like him.
[laughs]
Sharks, India's beer industry is estimated at 65,000 crores.
Okay.
And only strong beer dominates the market.
It accounts for 85% of the market.
- Wow! - Wow!
And the brands in this sector
are one or two that's on top of the mind recall.
Especially, in the affordable price range.
It's a big gap so we
launched a premium, strong beer brand, Proost.
And we're the co-founders of Proost beer.
[music playing]
Proost is a mass, premium, affordable beer brand.
It's known for its premium quality, low bitterness,
high affordability, and high drinkability.
Apart from strong beers, we also have two other variants.
Light beer and wheat-crafted beer.
But our focus is on strong beer.
All our products are indigenous. It's made in India.
Our mission is to
offer premium quality beer to the common man at affordable prices.
Stronger than our beer
- is our distribution network. - Wow!
Sharks, we're available
- in around 1800 retail outlets. - Wow!
[music playing]
And we're proud
of having sold more than 70 lakh units.
Our vision is to create a mass, premium, affordable beer brand
that is not only a part of the Indian beer market
but dominates the global beer market as well.
Our ask is Rs. 1 crore
for 0.75% equity
in our company.
So, Sharks, say cheers, say Proost!
[music playing]
- Welcome to Shark Tank! - Thank you, ma'am.
Your valuation is high.
Strong valuation for your strong beer.
I've never tasted alcohol in my life.
I belong to a family where nobody has tried alcohol.
I know how difficult it is to convince such a family.
So, how did you do the magic?
It's a business. If we look at it that way,
then it's not like
we are promoting it.
We are simply doing business.
If I don't make it, someone else will.
Those who want to drink will anyway drink.
So, do you both drink or not?
We drink.
[laughs]
Did you teach him to drink or did he teach you?
He taught me to drink.
[music playing]
At the age of 55,
you made a big decision. What were you doing before that?
I have a diploma
and come from an engineering background.
I graduated in 1982.
When I did my diploma, I just wanted to earn money.
Hindustan Times was in circulation back then.
It had an employment page. There was an ad
which read that they wanted graduate engineers with 4-5 years of experienc
- To go abroad immediately. - Wow!
I seized the opportunity.
So, I wrote an application
and somehow, I got the interview call.
[music playing]
There were around 22-23 people lined up for the interview that day.
I was waiting since 10 AM and it was 8 PM.
Everybody left, even the receptionist.
Only I was waiting.
After ten minutes, a peon walked out
and asked me to come in.
When I went inside, there were 4-5 people sitting inside.
That's where my interview took place.
The first question was that neither am I a graduate engineer
nor do I have any experience. Then why did I apply?
I told them that I can do what
a graduate engineer or 4-5 years experienced person can.
You can ask me anything.
They took an interview, asked me questions
and finally, they hired me.
The company was Punj Lloyd.
I joined as a trainee supervisor.
[music playing]
And I quit the company as the global CEO.
Wow!
- Amazing! - Wonderful!
[music playing]
I worked for one company and left it because
I wanted to go ahead in life.
So, I decided to quit and try something.
Vijay, where is your factory?
Sir, we are operating on a lease model.
- Where is it? - It's in Punjab.
We recently had a tie-up in Haryana.
And we will have a third tie-up in Telangana.
I also want to ask that
- licensing is a part of it, right? - Yes.
In the beer and alcohol industry.
So, which states' licenses do you hold at present?
[music playing]
Sir, at the moment, Delhi,
Haryana, Uttar Pradesh, Punjab, and Kerala.
We hold a license in five states.
You have covered the most important states.
No, Sir. The major five are yet to be covered.
The biggest market is Telangana, Andhra Pradesh,
Maharashtra, Karnataka, Rajasthan, West Bengal.
Why have you named the beer 69?
Is it to deliberately excite people?
- No, sir. - What's the reason?
It's FOMO, sir. Fear Of Missing Out.
When we launched, all brands had a number associated with them.
- 81. - 81, 91.
I understand 5000, 2000, as it indicates power.
But 69
or 81 doesn't indicate anything.
69 is a different connotation.
We're both aware.
That was the thought behind it.
Our idea was to be a bold, unapologetic brand.
To talk about things nobody else is talking about.
[music playing]
What are your sales?
What's your plan or target?
Our operations began in September 2018.
So, the first-year sales were 77 lakhs.
For the entire FY 18-19.
The sales for 19-20 were 3.21 crores.
The sales for 20-21 were 4.2 crores.
After COVID happened, we managed to grow, but less.
In 2021-22, the sales were 7.5 crores.
This year, we have made 12 crores until last month.
We will close this year
at about 35 crores.
Wow!
Why will you have five times the growth?
Ma'am, the market is so big. The consumer has no choice.
Presently, our capacity is 50,000 cases.
Our products get sold within 10 days of manufacturing.
Okay, tell me the economics.
How much does a beer cost?
- Sir, MRP? - Yes.
The MRP varies from market to market because of excise laws.
Okay.
This can is worth 100 rupees.
Out of which, 45 is for excise duty.
From 55, 33 rupees is COGS.
We're left with 22 rupees as gross margin.
The gross margin across states
differs and is high and low.
How much commission does the distributor and retailer charge?
The government has fixed the fee for distributors and retailers.
- What is the approximate amount? - 40-50 rupees.
What's your net margin?
Sir, we're burning in terms of net margin.
We're at a loss at present.
So, this is the biggest problem in this industry.
You have to give a lot of incentives to shops.
No, sir. There are no incentives.
Not in the strong beer market, sir.
Incentives are a part of the premium market.
So, why are you burning on the unit of economics?
Sir, we are selling 50,000 cases.
We break even on 1,10,000 cases.
In Delhi, whether I sell one case or
one lakh, or a crore cases, I have to pay 15 lakhs for the license.
Exactly.
I got it. You have many fixed costs.
It won't get covered unless the volume is increased.
How much money have you invested in the business?
Sir, as founders, we've collectively invested 3.5 crores.
We even took a debt at the initial stage.
To be bootstrapped, for the funding.
- Where did you take it from? - Punjab National Bank.
Our debt is 3.40 crores.
Did you mortgage something?
Yes, my property.
[music playing]
And what about the rest?
We have another debt for 50 lakhs.
Two GECL loans of 35 lakhs each. That makes it 70 lakhs.
What's the total debt and total equity?
The total debt is 4.3 crore.
And equity is around 5.5.
Just a moment. How much is the equity?
5.5 crores.
We hold 3.35.
Both of you hold 3.35. And?
- The remaining is with the investor. - Who are they?
There's an investor.
It's Punj Lloyd.
Okay, your workplace.
Yes, my workplace.
How much did they give you and at what valuation?
Post-money valuation 16.66 crores.
Okay.
- We received the money on Dec 4. - How much money was it?
- 2.7 crores. - Okay.
We are currently raising a round
for 15 crores. It's a convertible round.
We have already received 2.6 crores.
And we have signed term sheets for 9 crores.
At what valuation are you raising funds now?
133.
What's the value mentioned in the term sheet?
It's a convertible round.
So, the valuation cap is 100 crores.
There's a floor and ceiling, sir.
- What's the floor like? - The floor is 80.
- That's what I wanted to know. - The ceiling is 100.
But the floor only kicks in if we're not able to raise
in the next 12 months.
[music playing]
I want to be out of it.
I think you have the funds.
Your business is doing well too.
There's not much value that I can add to it.
You seem to be a strong player in your market.
That's my line.
So, it's Aman's dialogue.
[laughs]
Okay, I feel that
I don't have much value to add to it. So, I'm out.
But, congratulations!
- Thank you, sir. - Thank you.
I don't have any interest in this area of strong beers.
And expertise.
And I don't think I can add value through my expertise either.
[laughs]
So I'm out.
As far as distribution is concerned,
- it's mostly state-run. - Yes.
[epic music]
That's one thing in India and where this isn't the case,
such businesses are run by sketchy players.
Hmm!
And it results in some mishaps too.
What have you thought about it?
How will you tackle it?
Sir, there is a private market in Delhi
operating for the last five years.
Our bad debt has always been less than 0.5%.
We don't invest too much money in the market to result in bad debt.
No, I'm not saying that.
I agree with you to an extent.
Who cares when people don't know about you?
But when you reach a high scale,
the alcohol mafia
comes to know about your presence. That's the reason,
your statement
"there aren't many brands for strong beer
and the market is not captured." This is the reason.
It's not that people don't know about the gap in supply.
The reason is the big players don't allow entry beyond a certain scale.
The real problem is that.
What have you thought about it?
After reaching the scale of Rs. 100 crores, what will you do?
How will you tackle this problem?
Sir, the main point is that mentors and advisors have come on board.
They have worked for big companies.
They have experience of around ten years.
And they know who are good customers.
[sweeping music]
The second point is products are sent through invoices to retailers.
If 1,000 cartons are sent to them,
their order for the next 1,000 cartons will be accepted
only after they pay for the last order.
I think you need an elder brother
along with your uncle.
You are right.
You need to do something about it.
Please rope him in, in your cap table.
I think
for a valuation of Rs. 100 crores
if I invest Rs. 1 crore...
I hope you agree to a valuation of Rs. 100 crores.
I'd get 1% equity. It's too less.
I reserve my money
for a founder who needs my skills,
my help
and the one who helps me earn loads of money.
For that reason, I'm out. Good luck.
I think you'll face a big problem.
Actually, I have many friends in this industry
and we collaborated with them.
[thrilling music]
I think after a level,
a struggle begins.
The thing is,
the big players start manufacturing such beers
and they arm-twist
the retailers and distributors so you could face problems in future.
I want to be out for now.
But you guys are fab.
- Thanks! - Thank you so much!
It requires heavy working capital
and it involves distribution too.
You already have the term sheets
at a good value.
Even if I invest money, 1% won't suffice.
It isn't enough to help generate my interest.
I wish you all the best but I want to be out for today.
Thank you!
- All the best! - Thank you!
[sweeping music]
[bubbling]
[dramatic music]
- Greetings, Sharks. - Greetings!
Don't all of you think
that you need a break from Fintech
and other such businesses?
- Of course! - Yes!
So please relax today,
listen to us for a few minutes and just chill.
Sharks, we sell ice and help people chill.
[carnival music]
It's an irreplaceable part of our lives today.
Sometimes it accompanied us at parties
and at other times, it helped heal our wounds.
We can be sure about one thing
that Devdas must have surely been supported by ice if not anyone else.
[laughing]
Sharks, it's not that we don't get ice in the market.
Have we ever thought about how ice is manufactured?
What kind of water do they use?
Was the water taken from RO, the kitchen sink
or a nearby drainage system?
Keeping all these things in mind, this industry needs
a hygienic and trusted brand.
So we launched Dr. Cubes.
[inspirational music]
Dr. Cubes gives you fresh and hygienic ice
Dr. Cubes has a record
of on-time delivery
through Swiggy, Zepto,
Blinkit, BigBasket and other such quick commerce e-platforms.
That's the reason, during a weekend we feel
"Mona, it's the real gold."
[laughing]
Dr. Cubes isn't just limited to home deliveries.
We handle the ice requirements for other industries too.
Also, we provide multiple types of ice.
It means businesses can be generated from minuscule problems.
[ethereal music]
Are these different types of ice?
[ethereal music]
I want to have a look before they melt.
- Sure, sir! - Sure!
- It's an unorganised industry. - That's true.
[upbeat music]
- It has a flower inside. - Yes. Flowers, fruits and a rose.
It's so big.
[upbeat music]
Its size
is so odd that when we drink... Look! It's clinking.
- Such cubes are used in cocktails and mocktails nowadays. - So big!
- Yes! - Right!
There's a saying, don't cast pearls before swine.
You don't drink so...
Do you prefer such ice cubes?
[comical music]
- Please tell me something. - Yes.
Most diseases,
especially throat infections
are caused due to unhygienic ice.
But still, a hotelier
would search for cost advantage.
"I won't buy from you as the other brand is cheap
and I really don't care about
health. You know, customers accepted the product we serve."
What advantage do you give so that the hotel industry
buys your ice?
Whenever we tie up with another business,
our ice is tested on 65 parameters.
We provide them with the lab test report.
If their customer asks them,
"How did you make the ice? What procedure did you follow?
What are the tests it went through?"
They can show those tests to the customers as proof.
At the end of the day, a hotel or a pub values its reputation.
Do you have an estimate of how big this market is?
How much ice is sold?
by others in terms of cost?
In the Bengaluru market,
ice is sold for around Rs. 4 per kg
only because of our service.
- What services do you give? - The customer is paying double the price.
- You must have a good reason. - It's almost triple.
Ice is a product that must be delivered on-time.
So your service is just-in-time delivery.
Yes and irrespective
of our operational challenges,
we make sure that quality ice is delivered every time.
Do you supervise the delivery or use an e-commerce platform?
We have our own logistics department.
Let me explain our business to you in a simple way.
We aren't claiming that we are making a different kind of ice.
When we entered the market, we found that the customers were frustrated
for not getting ice on time.
The local players
didn't take professionalism and on-time service
- seriously. That's the reason... - That's true.
We started in 2017
with four old machines weighing 200 kg.
We expanded our plant with machines weighing 10 tons in 2019
- and now we produce at overcapacity. - Amazing.
We have logistics comprising five vehicles.
We cover 500 kilometres
within Bengaluru daily since 4:30 am early in the morning.
Currently, the fish and meat industry requires ice.
You know that the fish and meat industry saw a boom in Bengaluru.
Ice is the backbone of the fish and meat industry.
We have tied up deals with corporates
like the Tata Group,
Nature's Basket and other such companies.
They need tested and verified ice for fish and other such products.
We supply to them
and we can proudly say that for the last four to four and a half years,
- we have been supplying ice to all stores of Tata Group. - Very nice.
What about your sales?
It's a 60:40 ratio.
Your gross margin. Okay.
- What's your net margin? - 35%!
- Is it after delivery? - Yes.
[dramatic music]
I mean you are talking about Rs. 87.50 lakhs.
- Wow! - So that will be your profit.
It's a great business.
[dramatic music]
Why didn't anyone enter this business?
The RO Water brands
like Bisleri and Aquafina.
Why didn't they enter this business?
I have a brand setup and even distribution channels.
I don't even need to market it.
I just have to write Bisleri on my ice cube packet.
I will set up machines overnight,
a plant and grow my business.
[music playing]
What is the cost of setting up a plant of 10 tonnes?
It will cost you around 60 lakhs.
- Then anybody can do it. - Yes, anybody.
It is a very
high-end-operation job. It's not just about production.
We have to take care of logistics, on-time delivery,
handle customers,
and most importantly,
we serve big corporates
as well as small juice shops.
What is your per-delivery cost in the B2C domain?
In direct B2C,
we are using online platforms.
You don't own the B2C deliveries.
No.
- You only own wholesale delivery. - Yes.
How much will a delivery cost if you do it yourself?
Sir, around 22-25 rupees per kilogram.
But if we sell it at MRP
which is currently 85 rupees.
We sell it to Swiggy and Blinkit at 30 rupees.
One kg is 85 rupees?
[music playing]
- You just said 8 rupees. - Exactly.
That is on the B2B site.
Then, there's no demand and no business happening.
For occasional use, for parties,
someone might buy a packet or two in a year.
Otherwise, they use trays in their house to make ice.
Why would they pay 85 rupees? That's the problem.
B2C seems very difficult to do.
What's your focus? B2C or B2B?
Our focus is B2C.
Because we want to build our brand, Dr. Cubes over there.
If B2C is your focus,
and you're relying on Swiggy and all,
your USP is timeliness.
How will you guarantee that?
When we say on-time delivery,
it's for our direct customers.
Like, the hospitality industry, it's under our control.
But despite doing all that,
your business is based in Bengaluru. It's under 1 crore.
Despite being the only player,
either something is going wrong or the market is too small.
[music playing]
Look, I learnt something new today.
I realised that the water sector has been organized.
Presently, almost everybody
drinks Bisleri and other purified water.
RO or mineral water.
There's still a question mark and I'll do my research too.
Why isn't the ice industry organised yet?
If it's an opportunity, then it's huge.
Then it needs to be branded.
You have to invest 100-300 crores in such businesses
because it's a mass business. It's a small item.
[music playing]
It can't be changed with
the investment that you're asking for.
RO water companies also have the opportunity to get into this.
So, there are many unknown spots. I'm out.
But you've found a great opportunity.
Congratulations on that!
My estimate is that your sales are low.
Because there is no demand.
And that demand is low
because of the Indian consumer mindset.
And for that reason, I'm out.
Have you studied any global benchmarks?
Any ice company
in the US or China that has grown to be a giant?
- Yeah, Reddy Ice. - Where is it?
- The US. - How big is it?
They do it across the US.
- Oh, wow! - The US market
is 233 billion dollars.
- Wow! - Ice industry alone.
What's the valuation of Reddy Ice?
I'm sorry. I don't have those numbers.
Oh!
I think
you're hard-working and sincere.
I get a very honest feeling when I talk to you.
But your instinct
that has made you grow your business so far,
it won't take you ahead.
You are playing by your gut feeling.
You have to now step back and understand the industry.
You're here to build a big business in this industry.
But when asked about the valuation of the biggest company in the US,
you're unaware of it.
I will advise you
to think and plan how to make it big.
But, it's unclear to me yet.
So, I'm out. Good luck to you!
I reckon that it's a wholesale business
where you have to sell lots of ice at a cheaper rate.
Don't venture into B2C.
The Average Order Value is 85 rupees.
How much ice can a person buy? Not more than 1 kg or 2 kg.
My interest lies more in the B2C segment.
But frankly, I think you shouldn't make it B2C.
[suspenseful music]
So I want to be out today.
- But all the best to you. - Thank you so much.
I think there comes a moment in every industry
when it turns organised from unorganised.
[suspenseful music]
For example, the chicken industry and the meat industry.
Licious and TenderCuts entered the market
and they became the bigger brands.
I'm not sure
but Dr. Cubes can become such a brand
as it has the potential.
But I have no idea where this industry is heading.
[suspenseful music]
I wish you all the best
so that you become such a company in this industry.
- Thank you so much. - Thank you!
- I'm out for now. - Thank you!
- We salute your entrepreneurship. - Thank you!
- Good luck, guys! - Good luck!
- Thank you! - Thank you!
[sweeping music]
[ethereal music]
Sharks, an average person
wakes up in the morning, gets ready
and starts his day with enthusiasm.
He resolves to be productive the whole day before leaving home
but as soon as he sets out,
he faces rejection.
"Autorickshaw driver, will you drop me at the metro station?"
And they get an uncaring and
- expressionless reply... - No!
"I'll get a taxi."
But they get a message, 'your ride got cancelled.'
Sharks, we are from Bengaluru
and my name is Girish Nagpal.
[motivational music]
MetroRide is an AI-based, 100% EV platform
Awesome.
[thrilling music]
This problem has been there for ages.
Why can't these services be offered on normal bikes?
Please share your journey with us
and how long have you been doing this?
I used to live in South Bengaluru near JP Nagar 5 years ago.
I used to commute for 70 to 90 minutes daily.
When the Metro started, I thought my life would become easier.
I tried thrice to reach the metro station.
Nobody is ready to give a ride for such a short distance.
To make the long story short, I went back to using my private vehicle.
I always felt
that a Metro ride
is too convenient as it's air-conditioned and cheap.
- Most importantly, our ETA remains fixed. - That's right.
And it's ironic
that even though 19 Metros are operating currently,
almost every Metro
I'm not experienced in this field but I'm an experienced businessman.
Both of us have twenty years of experience.
I've worked in leadership positions for 15 years in corporates.
- Kaaman, what about you? - I'm from a technical background.
I worked in Oracle for 6 years and then I went to the US.
I worked in the US for 12 years in various companies.
I met Girish in India in 2020.
We are friends of 15 years after staying together as roommates.
You left a well-paying job in the US
and moved to India for a start-up.
Sir, I haven't moved here yet.
- Oh! - There's a story behind it.
When we started this business in 2020,
Girish shared his problem with me. I faced the exact problem in the US.
So our plan is to launch in the US
and set up a base over there
so that we get the first mover advantage.
Shall I show you a demo?
- A demo will help you understand. - Please show us.
This demo is for Hyderabad.
- Is it a live demo? - It's a live production app.
- Is it real? Okay. - It's real. It isn't a recording.
- Good! - As soon as I open the app,
I get two options, Shared Ride or Private Ride?
Shared Ride means they must share with someone
and they won't be dropped home.
Private Ride means you'd ride alone and you'd be dropped off at home.
When I chose Shared Ride in this app,
it showed the closest pickup point
which is a hospital called Shenoy Hospital.
I'll choose the drop point to be Parade Ground Metro Station
which is the closest metro station.
As soon as I click on 'book now',
it asks for the number of seats I want.
We have allowed a maximum of two seats per booking.
The cost is Rs. 16.50 but if we hire an autorickshaw,
it costs a minimum of Rs. 100.
We get two options after clicking 'book now'.
I'll go for 'find me a driver' and the ride will be booked.
As you can see, I have been assigned
- a three-wheeler driver named Sagaya Rani. - Wow!
She'll reach within one minute
but normally, it's between 2 to 5 minutes on average.
Please cancel it. She might reach there.
- Come on! - Gosh! She came here for real.
- She's here! - Good Lord!
- Sagaya Rani is our driver-partner from Bengaluru. - Wow!
How was your experience working with them?
Come on.
When you book a ride in Uber, you have no idea where you are going
- but they roam within a 4 km radius when they use our app. - I got it.
- During an emergency, one can go home. - Yes!
Very good!
There are so many players in the same business.
- Bike Taxis are there. Many apps aggregate autorickshaws. - Right!
What model do you follow?
If you have a closer look, all these companies
compete with public transport.
Our business model collaborates with public transport.
That's the reason, we already
tied up a deal with The Hyderabad Metro.
We signed an agreement for a joint GTM with them.
Interesting.
within a 3 to 4-km radius.
I fail to understand something. We can see Bike Taxis
- at stations nowadays. - Yes!
We can see EVs and autorickshaws too.
They serve within a 3 to 4-km radius.
Are you aggregating these vehicles? Or do you use your vehicles?
We are doing both things.
- When we launched our model in Delhi, EVs were present there. -Yes!
Of course, there was an availability
but they didn't have an option so they joined us.
When we launched in Bengaluru, there were hardly any electric vehicles.
It took us six months to build an ecosystem in that model.
Anybody who wants to work
and wants to earn good money
can come and join our platform.
I'm not sure about a few things so I have some questions. Please clarify.
There are two types of problems in this industry.
Density
And peak demand.
When you try to add more density,
to satisfy peak demand but the more you add,
the driver will have lesser rides.
On non-peak time.
- Agreed. - But to meet the peak demand,
when you add more vehicles,
the problem is that the driver
won't have business during non-peak hours.
Correct.
An auto driver charges 100 rupees
to take you from the station to a location.
That's why the charge!
- Because he knows that... - Yes.
- Correct. - I will have to earn the profit now
because there won't be much business the rest of the day.
So, how are you making money?
We have a 12 to 4 slot.
When the metro is not in use, our services hit a low too.
So, we have made B2B tie-ups.
Ultimately, asset utilisation
- and driver income are important. - Correct.
If it isn't utilized and the driver doesn't make an income,
you can't make a profit.
- The driver will quit. - Yes.
No matter what your story is.
But you're going to compete with Rapido, Cityflo,
which is a point-to-point commute for corporate travellers.
With Chalo, Ola, and Uber too.
Anupam spoke of the scale.
How many vehicles have you taken onboard?
We have almost 150 vehicles on board.
- 150 is less, right? - Yes.
That's why the waiting time is only 2 minutes.
[music playing]
150 vehicles. How many rides do they make in a day?
All of them are on-demand, sir.
Private and shared.
Out of 25, 15 is from ride services,
and 10 is from B2B tie-ups.
No.
10 out of 15 so 67%
is expenses. So you can say, 33%.
You didn't get the point.
He's simply asking you
you earned 100 rupees for this ride.
How much do you pay the driver and how much do you keep?
Sir, the model is different.
- What's the model? - MG model.
- Salary-basis. - It's not like Uber.
Not a salary. There's a minimum guarantee.
And you own the lease.
It's not on lease, sir. It's on rent.
Is the agreement in your name or the driver?
The rental agreement is in our name and...
It's direct. Don't beat around the bush.
[music playing]
Kaaman and Girish, this is needed.
But, I have two issues.
Number one, a valuation of 70 crores is too high.
My second issue is that, as we all discussed,
for an existing player to copy this
is not too difficult as demand increases.
Thirdly, with 150 vehicles
you're too early for such a high valuation.
I will not be able to match it.
For that reason, I'm out. But it's definitely a need.
You used many fancy words in the beginning.
AI-based, EV.
How does it make a difference whether it's EV, petrol, or diesel?
You're not making the car.
The cost will matter. The consumer will get it at less.
That is not the point.
Uber tried it. Ola too.
All the global players have tried it.
There are so many problems like waiting time,
finding the person. Although, you have prescheduled spots.
If a person is delayed by two minutes, it's difficult.
I think there is no model or business here.
On a small scale, there are many players.
They can take up 15-500 cars and do this business.
Beyond that, you're going to fight with the giants.
For that, you need millions of dollars, if not billions.
For that reason, I'm out. Good luck!
Uh, I'm out too.
But, I think you're smart.
Get that going, rather than other revenue models.
Put them behind.
And focus on this. All the best!
[music playing]
there are local-level financers.
They receive daily payments.
The driver earns and pays him every day.
The lender is lending the vehicle
- but we can take it from anyone. - Will he scale it up?
No OEM would do that.
- In fact... - Understand the problem.
Have you decided?
I'm trying to explain how the model should've been.
And he's telling me that's how the model should be.
No.
- I will believe that... - You're right.
So, you...
[laughs] No, you're right.
So, coming back...
This is called reverse shark tank. Will you invest in him?
- It's their pitch. Right? - What do you mean?
- Have you decided yet? - Nothing.
I think you guys are trying to influence the decision.
I'm trying to teach them something here.
- Okay, share your decision. - Yes, please do.
I am not taking a decision right now.
I was suggesting how the model should be.
Is that okay?
[music playing]
I have an understanding of this space.
- Okay. - Thanks.
Please tell them. They're waiting.
[music playing]
So, coming back, if they allow me to explain.
[music playing]
I don't understand the yield of your asset.
That's my problem and I don't have time to understand more.
I would like to meet you in person to understand this.
I'm out now.
Given the time constraint, but I want to meet you later.
Look, I was interested
but the valuation doesn't fit me well.
Oh!
But become successful in a city first.
You have already planned about the US.
So, you're not fully into this business.
But you're doing a good job
and I'm impressed with your user interface, it's in-depth.
It's nice but we don't have much time.
It's one of those things that I may regret later. Best of luck!
Kaaman and Girish, thank you so much.
See you! Bye!
[music playing]
2/3rd of a shark's brain
is used to detect odour.
And this skill
allows them to rule over the sea.
[laughs]
Not because
humans have certified it.
Greetings, Sharks! I'm Arvind Arora.
And I'm here from Bengaluru to represent my skill-based startup
Conker App in front of you all.
My professional career started as an offline teacher
and then I started teaching chemistry online.
I worked with ed-tech companies and watched them grow into unicorns.
[music playing]
Our youth says that there are no jobs.
Whereas, industries say that jobs are available.
But we don't have skilful youth.
And Conker App is the solution.
[music playing]
Through experts
we offer skill-based courses.
We also offer jobs and opportunities.
For this, a student has to simply
download Conker App
and after that, select a course based on their skill set.
After completing the course,
they have to submit their resume.
In the last six months, Conker App
Conker App must be the top of the mind recall.
I'm asking for nothing.
I want all of you to support me.
I'm in.
Thank you so much, sir.
- Closed? - Yes.
Okay, I'm done.
What is your ask, Arvind? Please specify it.
My first offer is that
I will accept even a rupee
and I would like to offer you 0.1% equity in exchange.
The second offer is that
if all of you participate
then whatever you invest
I will offer you double the equity
and dilute it at the current valuation.
Because we know your importance.
Don't beat around the bush.
Yes.
Current valuation, double, single, don't say all this.
- Please tell us how much you need. - Okay.
- I want Rs. 40 lakhs for 1% equity. - Rs. 40 lakhs for 1% equity.
Yes, but in case we get Rs. 40 lakhs for 1% equity,
we want to dilute 2% only.
What do you mean? I don't understand.
[dramatic music]
I have made my decision and I'm out.
I'm sorry!
You aren't able to share your requirement.
What do you want, my friend?
Actually, we raised pre-seed funding at Rs. 20 crore valuation.
- We opened a second round too at Rs. 40 crores. - Okay.
The founder of Zerodha, Nikhil Kamath
invested in our business.
What's the total round you raised in those Rs. 40 crores?
We'll dilute 10% equity.
- So you are getting Rs. 4 crores. - Yes.
How much money has been committed by now?
Sir, we have a commitment of Rs. 1.5 crores.
That's the reason, I requested
Rs. 40 lakhs for 1% equity
but as we value you, so we want
You raised an important issue of skills.
We don't want to take the route of traditional exams.
We offer a YouTube course for mastery.
We offer mastery courses on How to Teach Online,
Facebook, LinkedIn
and many such courses.
Let me brief you about a special course.
We have elders at home
like my dad who can't operate a smartphone.
We designed a course
in which 17-18 years old adolescents
teach people how to use a smartphone.
As you told us about your business, please share your sales figures too.
What was your revenue last month? And what was your profit?
I liked your cause.
- We run a company called CollegeDekho. - Okay.
I have a personal interest in education technology.
So I want to know what excites you.
Your ambition... What makes you happy?
Today's youth want
to grow on Instagram, Facebook and YouTube and earn money.
Sir, as a YouTuber,
the earnings on YouTube
start from Rs. 3 lakhs
and one can earn up to 1 to 2 crore rupees.
My friend, even you don't earn that much.
Sir, I earn that amount as I'm a YouTuber.
What's the name of your channel?
Sir, A2 Motivation channel with 14 million subscribers.
Your revenue is less as it's just Rs. 1.2 crores in six months.
Sir, Conker is different from A2 Motivation.
- So they are different. - A2 Motivation is my personal channel
where I use the network to sell our courses. It's our USP.
It's like running two businesses simultaneously.
How will it work?
- Sir, the thing is... - Hold on! First, clarify this.
How much do you earn through A2 Motivation per month?
It depends.
You may share the average figure.
Yes, of course!
What is the content you use for 14 million subscribers?
Sir, I make motivational and fact videos.
- Please show us a demo. - Okay.
Did you earn subscribers through marketing or organically?
Sir, organically.
- So you are an established influencer and creator. - Yes.
- Please show us a demo. - Sure.
[sweeping music]
- Is it free content or paid? - It's paid content.
Please show us the content.
Sir, we gave a mastery course for making reels.
'It's recorded between 3 seconds to 90 seconds. Okay?'
'When I make skit reels, '
'I shoot those reels for around 40 to 60 seconds.'
Such content is free.
Ouch!
Too many things!
Arvind, when we join a business as investors,
we look for a focused founder.
Even if you merge both companies,
they are characteristically different.
So I don't have the confidence
that you'd be able to handle both and for that reason, I'm out.
- This space is too crowded. - That's right.
How do you plan to become number one?
Sir, we'll focus specifically on tier-2, tier-3 and tier-4 cities.
Secondly, we plan to make content in regional languages too.
The big players make their content mostly in English.
Many apps like Seekho
- make content in vernacular languages. - Okay.
- Do you know about Seekho? - No, sir. I heard it only now.
- You don't? - No, sir.
How many active users do you have daily and monthly?
Our daily active users are 6,000
what is the lowest DAU/MAU ratio?
- Um... - 3%.
If it's around 3%,
there can't be a worse DAU/MAU ratio.
It's the ratio between daily active users and monthly active users.
- And your figure is around 3%. - Yes.
It means your product isn't working.
There's no engagement in this product.
What is your cost
of customer acquisition for a paid customer?
Sir, 22%.
Again... Please don't mislead me.
Please tell me the exact cost in rupees.
Sir, I need to check the data.
You don't know the data! Then how will you run the business?
[tense music]
I think you aped the teachers who made successful companies
and you entered this business blindly.
I don't think you should do that.
EdTech isn't growing much.
I think you are an amazing influencer and creator.
Please continue your work. Good luck to you. All the best.
Thank you so much.
It was nice meeting you.
The figures you shared are unbelievable
because maybe you don't know them or you're confused.
But let me tell you because of the sales figures you shared
with me, I want to be out.
The reason you grew on YouTube is...
When I asked you to give a demo of your class,
you looked original.
But when you pitched to us, you lost the originality.
Post Covid, people discontinued online classes.
So the future is uncertain.
We need to be careful about the goings on in this industry.
- Thank you! All five Sharks are out. All the best. - Thank you!
[epic music]