1 00:16:01,600 --> 00:16:02,760 Arata! 2 00:16:03,440 --> 00:16:04,520 What's Arata? 3 00:16:04,680 --> 00:16:06,320 It's a big company! 4 00:16:06,720 --> 00:16:07,960 Why would they come here? 5 00:16:08,040 --> 00:16:09,560 For marketing! What else? 6 00:16:10,240 --> 00:16:11,760 [theme music playing] 7 00:16:31,280 --> 00:16:32,720 [music fades] 8 00:16:34,600 --> 00:16:35,720 Madhok, awesome party. 9 00:16:35,840 --> 00:16:38,040 Thanks, buddy. Your hair's better than the party! 10 00:16:38,160 --> 00:16:39,480 Don't use so much gel. 11 00:16:39,560 --> 00:16:41,320 You'll start losing hair and your hair will turn grey. 12 00:16:42,200 --> 00:16:45,320 Look. Neither will my hair fall nor turn grey. 13 00:16:45,560 --> 00:16:48,600 This is my mother's homemade hair gel recipe. 14 00:16:48,800 --> 00:16:50,160 - Try it. - Thank you. 15 00:16:50,240 --> 00:16:52,840 My gel already has chemicals and toxins. 16 00:16:52,920 --> 00:16:55,240 This has nothing! What do you even have? 17 00:16:55,400 --> 00:16:57,640 I told you. I have a mother. 18 00:16:57,720 --> 00:16:58,560 Sorry, 19 00:16:58,680 --> 00:16:59,520 Oh, God! 20 00:17:03,280 --> 00:17:06,480 - Looks good. - That's how Arata started. 21 00:17:09,480 --> 00:17:11,040 We went from this 22 00:17:12,120 --> 00:17:13,000 to this, 23 00:17:13,160 --> 00:17:15,280 and from this to that. 24 00:17:23,280 --> 00:17:25,280 And we're the founders of Arata. 25 00:17:27,000 --> 00:17:29,640 Arata is a high-performing hair care brand. 26 00:17:43,400 --> 00:17:45,120 No matter what your hair requirement is, 27 00:17:45,200 --> 00:17:47,280 we've already got products for you 28 00:17:47,320 --> 00:17:48,960 or will be making them in the coming days. 29 00:17:49,760 --> 00:17:50,960 The goal is to become 30 00:17:51,000 --> 00:17:54,160 India's best-selling high-performing hair care brand. 31 00:17:54,480 --> 00:17:56,480 Arata is fully online. 32 00:17:56,600 --> 00:17:57,600 We sell our products 33 00:18:11,640 --> 00:18:14,520 for 1.25% of the company. 34 00:18:14,600 --> 00:18:17,080 - Rs. 25,000? - The fare to Mumbai! 35 00:18:17,400 --> 00:18:18,480 Oh, God! 36 00:18:19,240 --> 00:18:21,760 Sharks, our actual ask today 37 00:18:21,880 --> 00:18:24,040 is Rs. 1 crore for 1.25% equity. 38 00:18:29,920 --> 00:18:31,800 Together, let's have a good hair day 39 00:18:31,920 --> 00:18:32,800 - every day! - Every day! 40 00:18:33,120 --> 00:18:35,880 - Dhruv and Dhruv, welcome to Shark Tank. - Yes. 41 00:18:36,000 --> 00:18:36,800 Thank you very much. 42 00:18:36,880 --> 00:18:38,920 From the time I got here, 43 00:18:39,080 --> 00:18:40,200 I have been wondering 44 00:18:40,240 --> 00:18:44,080 that your brand is funded and quite big already. 45 00:18:45,320 --> 00:18:48,080 Taapsee Pannu used to be your brand ambassador. 46 00:18:48,320 --> 00:18:50,120 So, why are you on Shark Tank? 47 00:18:50,240 --> 00:18:51,240 Is it just for the marketing, 48 00:18:51,360 --> 00:18:52,920 because you're not here to close a deal? 49 00:18:54,200 --> 00:18:55,640 Straight up! Fire! 50 00:18:56,520 --> 00:18:57,400 For clarity, 51 00:18:57,480 --> 00:19:00,400 we've solved 0 to 1 to a certain degree. 52 00:19:00,560 --> 00:19:02,600 Our ambition now is to go from 1 to 10. 53 00:19:03,160 --> 00:19:05,480 We're really excited to close a deal with you, 54 00:19:05,600 --> 00:19:07,120 but we would love to get smart money. 55 00:19:07,200 --> 00:19:09,120 If we get funding from you, 56 00:19:09,280 --> 00:19:11,880 then with the help of your experience and synergy, 57 00:19:12,040 --> 00:19:13,880 we can take this company even further. 58 00:19:14,200 --> 00:19:15,400 [music fades] 59 00:19:15,480 --> 00:19:16,640 What's your background? 60 00:19:16,720 --> 00:19:18,160 I did my schooling from Delhi. 61 00:19:18,280 --> 00:19:21,280 I did my college from University of Southern California, Los Angeles. 62 00:19:21,400 --> 00:19:24,080 Then I did banking in Dubai and the US. 63 00:19:24,160 --> 00:19:26,680 Then I started a food ordering app 64 00:19:26,760 --> 00:19:29,600 which I think Deepinder will remember. It was called Snacket. 65 00:19:30,360 --> 00:19:31,560 I, too, was born and raised in Delhi. 66 00:19:31,640 --> 00:19:33,200 I went to the UK for my undergrad. 67 00:19:33,280 --> 00:19:36,040 I completed BSc in Business Studies at Lancaster University. 68 00:19:36,160 --> 00:19:37,760 Then I was an associate 69 00:19:37,840 --> 00:19:39,360 in a startup consultancy in London. 70 00:19:39,440 --> 00:19:42,520 It helps Indian companies set up in UK and EU. 71 00:19:42,680 --> 00:19:45,880 And then, around that time, I had an overlap with Madhok. 72 00:19:45,960 --> 00:19:47,120 When did Arata start? 73 00:19:47,200 --> 00:19:49,520 The first transaction was quite romantic. 74 00:19:49,600 --> 00:19:51,680 On 14th of February, 2018. 75 00:19:54,840 --> 00:19:58,240 But I spoke to either of you during the WhatsApp communication. You? 76 00:19:58,320 --> 00:20:00,560 - You even sent me shampoos. - Yes. Correct. 77 00:20:00,640 --> 00:20:02,720 It was nice. I used your Super Shampoo. 78 00:20:02,760 --> 00:20:04,000 - It's nice. - Thank you very much. 79 00:20:04,520 --> 00:20:06,040 What does Arata mean? 80 00:20:06,120 --> 00:20:09,560 Arata means fresh and new in Japanese. 81 00:20:09,680 --> 00:20:11,320 Oh, it's a Japanese word. 82 00:20:12,800 --> 00:20:14,800 What is so special about the ingredients? 83 00:20:14,920 --> 00:20:18,320 We have perhaps launched India's first hair gel 84 00:20:18,400 --> 00:20:20,200 that is natural and good for your hair. 85 00:20:20,320 --> 00:20:22,200 We have used organic flax seeds. 86 00:20:23,280 --> 00:20:25,520 So, it's natural, alcohol-free, 87 00:20:32,120 --> 00:20:34,480 Because I'm very interested on the formulation side. 88 00:20:34,880 --> 00:20:37,160 Apart from this, we have other unique ingredients. 89 00:20:37,240 --> 00:20:39,040 Like Curcuma longa 90 00:20:39,160 --> 00:20:41,000 which is a derivative of turmeric. 91 00:20:41,080 --> 00:20:42,480 Curcuma longa 92 00:20:42,560 --> 00:20:44,840 improves hair growth. 93 00:20:44,920 --> 00:20:47,160 It is as effective as Minoxidil. 94 00:20:47,240 --> 00:20:50,000 It's not my research but a peer-reviewed study. 95 00:20:50,120 --> 00:20:51,920 It was supplied by our supplier. 96 00:20:52,040 --> 00:20:52,800 Does it have everything? 97 00:20:52,880 --> 00:20:53,760 No, it's a mix. 98 00:20:53,840 --> 00:20:54,880 - I'll take this. - Sure. 99 00:20:54,880 --> 00:20:56,840 - You'll get an unboxing experience. - Cool. 100 00:20:56,920 --> 00:20:57,960 Thank you. 101 00:21:01,680 --> 00:21:03,760 [music playing] 102 00:21:03,840 --> 00:21:06,920 What's your pricing right now? For example, 103 00:21:07,040 --> 00:21:08,080 - if I talk about Super Shampoo. - Yes. 104 00:21:19,920 --> 00:21:22,200 Earlier, we didn't have much scope for negotiation 105 00:21:22,280 --> 00:21:24,400 with our manufacturers for our gross margin. 106 00:21:24,480 --> 00:21:28,360 But now, our new range of shampoo and conditioners, 107 00:21:28,480 --> 00:21:29,560 if you look at the price, 108 00:21:29,640 --> 00:21:31,640 it's for Rs 299 MRP. 109 00:21:31,720 --> 00:21:33,640 I got it. So, your pricing has reduced now. 110 00:21:33,680 --> 00:21:34,320 - Yes. - Absolutely. 111 00:21:35,520 --> 00:21:37,720 Is sulphate-free better for you or with sulphate? 112 00:21:37,800 --> 00:21:39,920 As per medical advice, 113 00:21:40,000 --> 00:21:43,320 if you don't use sulphate, it won't clean properly. What's your view? 114 00:21:43,400 --> 00:21:46,960 It's an ongoing debate with respect to sulphates and silicones. 115 00:21:47,080 --> 00:21:49,040 One side says that silicones 116 00:21:49,120 --> 00:21:51,920 gives you the hydration required for your hair. 117 00:21:51,960 --> 00:21:53,840 The other side says that 118 00:21:53,920 --> 00:21:55,480 it's instant gratification 119 00:21:55,560 --> 00:21:58,080 but over time, it can ruin your hair. 120 00:21:58,160 --> 00:22:00,040 We realized one thing about our customers. 121 00:22:00,120 --> 00:22:01,880 Either you can give a natural product 122 00:22:01,960 --> 00:22:03,880 or a silicone or sulphate based product. 123 00:22:03,960 --> 00:22:05,800 If the product doesn't perform, they won't return. 124 00:22:05,880 --> 00:22:06,600 They won't 125 00:22:06,680 --> 00:22:10,200 rebuy it if their hair doesn't look glamorous, even if it's natural. 126 00:22:10,600 --> 00:22:12,600 We've noticed that if the performance is high, 127 00:22:12,760 --> 00:22:15,200 then natural is an added benefit. 128 00:22:16,040 --> 00:22:19,760 You said it in your pitch that the ingredients are alcohol-free, 129 00:22:19,880 --> 00:22:22,320 so is that consistent across the range? 130 00:22:22,400 --> 00:22:25,280 As some of them have cetyl alcohol, 131 00:22:25,360 --> 00:22:28,480 cetostearyl alcohol in these products. 132 00:22:29,360 --> 00:22:31,080 So is that a brand claim? 133 00:22:31,160 --> 00:22:33,680 We didn't say alcohol-free. Just to correct you, we said 134 00:22:33,760 --> 00:22:35,520 that we're chemical and toxin-free. 135 00:22:35,640 --> 00:22:38,920 No, you said that you make gels without alcohol. 136 00:22:39,000 --> 00:22:40,160 That is alcohol-free. 137 00:22:41,480 --> 00:22:44,720 If you go to website called EWG Skin Deep. 138 00:22:45,040 --> 00:22:49,080 It's basically a repository of ingredients, like Google. 139 00:22:49,160 --> 00:22:51,680 If you enter any ingredient of our products 140 00:22:51,760 --> 00:22:54,320 you will notice that the average is between 1 and 3, 141 00:22:54,600 --> 00:22:56,120 as per their toxicity score. 142 00:22:56,200 --> 00:22:58,400 1 to 3 being safe and non-toxic. 143 00:22:58,520 --> 00:23:00,800 4 to 10 being potentially toxic, 144 00:23:00,920 --> 00:23:02,000 and even carcinogenic. 145 00:23:02,080 --> 00:23:05,160 So, how much is cetyl alcohol as per this number rating? 146 00:23:05,440 --> 00:23:08,280 - Uh. I have to-- - It's definitely between 1 to 3. 147 00:23:09,000 --> 00:23:11,680 You're discussing so much about ingredients, 148 00:23:11,760 --> 00:23:13,080 - you are-- - It's important for her. 149 00:23:13,160 --> 00:23:16,200 No, summarize it by saying that it has alcohol. 150 00:23:18,560 --> 00:23:21,760 Do you know that there is alcohol in six ingredients? 151 00:23:21,880 --> 00:23:23,840 - No, that's okay. - It started with alcohol-free. 152 00:23:23,920 --> 00:23:25,760 - So that's why the conversation. - No, I agree. 153 00:23:25,840 --> 00:23:28,000 I'm giving a hint that we must get a chance to speak too. 154 00:23:28,120 --> 00:23:29,320 Yeah. Let Namita ask her question. 155 00:23:29,400 --> 00:23:31,280 Before I get killed by all of them. 156 00:23:33,760 --> 00:23:36,080 What is your primary online platform? 157 00:24:46,400 --> 00:24:48,800 I had read in between that 158 00:24:48,880 --> 00:24:50,160 you were funded well too. 159 00:24:50,240 --> 00:24:52,040 - Yes. - Please share your rounds quickly. 160 00:24:52,080 --> 00:24:52,480 Yes. 161 00:24:52,480 --> 00:24:56,960 Okay. Round 1 was Rs 3.5 crores, in January 2019. 162 00:24:57,080 --> 00:24:58,160 - Valuation? - Valuation? 163 00:24:58,240 --> 00:25:00,440 Valuation was Rs 11 crores. 164 00:25:00,840 --> 00:25:03,280 In 2020, we raised Rs 7 crores. 165 00:25:03,360 --> 00:25:05,440 And the valuation was Rs 18 crores. 166 00:25:05,520 --> 00:25:08,360 - In 2021? - In 2021, it was Rs 17 crores. 167 00:25:08,440 --> 00:25:09,600 - Wow! - That's huge. 168 00:25:09,720 --> 00:25:10,400 Valuation? 169 00:25:10,480 --> 00:25:13,400 Valuation was Rs 77 crores, post-money. 170 00:25:13,520 --> 00:25:14,400 Oh, wow. 171 00:25:14,880 --> 00:25:16,120 What's the valuation now? 172 00:25:16,200 --> 00:25:18,720 For you all, special VIP valuation, 173 00:25:20,160 --> 00:25:21,280 Rs 79 crores. 174 00:25:22,320 --> 00:25:24,360 Why are you framing it 175 00:25:24,440 --> 00:25:26,480 like VIP valuation of 176 00:25:26,560 --> 00:25:27,560 - Rs 79 crores? - Nothing like that. 177 00:25:27,560 --> 00:25:29,280 That was just humour. 178 00:25:30,560 --> 00:25:32,000 Tell me about the sales. 179 00:25:58,760 --> 00:26:00,520 Which is now 180 00:26:00,600 --> 00:26:03,280 profitable on a monthly basis. 181 00:26:03,360 --> 00:26:05,720 Last month, we closed at Rs 2 crores. 182 00:26:05,800 --> 00:26:06,600 For the first time, 183 00:26:06,640 --> 00:26:08,440 we've experienced profitability at EBITDA level. 184 00:26:08,520 --> 00:26:10,640 - How much profit? - 4 to 5 per cent. 185 00:26:10,760 --> 00:26:12,920 Rs 8 lakhs at EBITDA. 186 00:26:13,320 --> 00:26:15,080 Our MIS is pending. 187 00:26:15,160 --> 00:26:16,920 But our assumption is 188 00:26:17,000 --> 00:26:18,440 that it will be approximately Rs 5 lakhs. 189 00:26:18,520 --> 00:26:19,400 Before that? 190 00:27:01,040 --> 00:27:03,680 In the bank, we currently have Rs 50 lakhs. 191 00:27:04,760 --> 00:27:08,200 After raising Rs 28 crores, you're left with Rs 50 lakhs. 192 00:27:08,280 --> 00:27:10,480 We're left with Rs 50 lakhs in cash in bank but 193 00:27:10,560 --> 00:27:13,960 we have inventory worth Rs 4-4.5 crores. 194 00:27:20,640 --> 00:27:22,800 The company is growing at 40 per cent. 195 00:27:22,920 --> 00:27:25,880 It can't service 18 per cent debt. It's a suicide. 196 00:27:25,960 --> 00:27:27,880 Gun to head, actually, 197 00:27:27,960 --> 00:27:29,520 we realised it a long ago that 198 00:27:29,640 --> 00:27:31,400 we have to start getting profitable. 199 00:27:31,480 --> 00:27:33,480 Whatever we do, putting in all our efforts 200 00:27:33,560 --> 00:27:36,120 and we're doing whatever it takes to make sure the company survives. 201 00:27:36,240 --> 00:27:38,240 We've been in near two death experiences. 202 00:27:38,360 --> 00:27:41,400 But that doesn't give you the right to dodge another death experience. 203 00:27:41,480 --> 00:27:44,040 [music playing] 204 00:27:44,160 --> 00:27:46,480 The plan is not clear. 205 00:27:46,560 --> 00:27:49,280 Just the willfulness and determination is clear. 206 00:27:49,360 --> 00:27:51,120 You're saying that you will make it big. 207 00:27:51,200 --> 00:27:52,880 But the ground beneath you is giving up. 208 00:27:52,960 --> 00:27:55,280 [music playing] 209 00:27:55,360 --> 00:27:58,480 And you're calmly raising just Rs 1 crore. 210 00:27:58,640 --> 00:28:00,520 What is your plan? 211 00:28:00,640 --> 00:28:02,240 Do you have any term sheet? 212 00:28:02,320 --> 00:28:04,440 Right now, we have two LOIs. 213 00:28:08,440 --> 00:28:12,520 Mumbai Angels' minimum investment will be Rs 1.25 crores. 214 00:28:12,600 --> 00:28:15,400 And Inflection Point is Rs 80 lakhs to 2 crores. 215 00:28:15,480 --> 00:28:16,880 And other than that, 216 00:28:16,960 --> 00:28:19,200 hopefully, we will have some participation from the Sharks. 217 00:28:19,280 --> 00:28:20,800 Otherwise, there's always debt. 218 00:28:20,920 --> 00:28:23,680 [music playing] 219 00:28:23,760 --> 00:28:25,320 How much is your shareholding? 220 00:28:25,440 --> 00:28:26,720 43 per cent at the moment. 221 00:28:26,800 --> 00:28:29,720 - You guys are lovely entrepreneurs. - Thank you. 222 00:28:29,800 --> 00:28:30,920 - Solid products. - Thank you. 223 00:28:31,040 --> 00:28:33,720 I've used them myself and I can vouch for it. 224 00:28:33,760 --> 00:28:34,200 Thank you. 225 00:28:34,240 --> 00:28:36,840 What went wrong? 226 00:28:36,920 --> 00:28:40,320 The main issues are our biggest learn 227 00:28:40,560 --> 00:28:42,960 One, maybe we 228 00:28:43,160 --> 00:28:45,800 over-indexed our resources in the curl segment. 229 00:28:45,880 --> 00:28:49,560 The way we planned to take and grow in the market share, 230 00:28:49,640 --> 00:28:51,440 we couldn't. Number one. 231 00:28:51,560 --> 00:28:54,080 Second, we over-indexed on our website. 232 00:28:54,160 --> 00:28:56,640 I disagree with your second point. 233 00:28:56,720 --> 00:28:59,440 I've heard it from many women about Arata 234 00:28:59,520 --> 00:29:00,640 that it's about curling. 235 00:29:00,720 --> 00:29:02,400 - Because that was your USP. - Yes. 236 00:29:02,480 --> 00:29:03,840 And that was your hero. 237 00:29:03,920 --> 00:29:05,560 You could've made it big in that segment. 238 00:29:05,640 --> 00:29:08,960 But you raised so much capital that the pressure of growth 239 00:29:09,040 --> 00:29:11,440 has taken you away from the USP. 240 00:29:11,560 --> 00:29:14,040 Because most businesses 241 00:29:14,120 --> 00:29:16,440 die due to indigestion, not starvation. 242 00:29:16,560 --> 00:29:18,720 You raised so much capital that you did it all. 243 00:29:18,800 --> 00:29:23,120 We never started this brand as a curl brand. 244 00:29:23,200 --> 00:29:25,320 But if you're finding success in a certain space, 245 00:29:25,400 --> 00:29:27,800 then doubling that is also a good strategy. 246 00:29:27,880 --> 00:29:28,880 We did. 247 00:29:28,960 --> 00:29:31,800 It's already a cash cow. 248 00:29:37,880 --> 00:29:39,880 but also need to build a supporting cast. 249 00:29:39,960 --> 00:29:41,720 - Chotu-Motu. - What? 250 00:29:41,800 --> 00:29:43,400 - The small ones. - Yes. 251 00:29:43,520 --> 00:29:46,600 You have Rs 50 lakhs left. 252 00:29:46,720 --> 00:29:49,560 There is no sustainable differentiator. 253 00:29:49,840 --> 00:29:50,880 Okay. 254 00:29:50,960 --> 00:29:52,560 The valuation makes no sense. 255 00:29:52,680 --> 00:29:53,840 At present, 256 00:29:53,920 --> 00:29:56,600 - it seems difficult for me. - Alright. 257 00:29:56,920 --> 00:29:59,760 So, I'm out. Stop lying to yourself. 258 00:29:59,840 --> 00:30:02,560 That it's great that you're profitable now. 259 00:30:02,680 --> 00:30:03,960 A lot still needs to be done! 260 00:30:04,040 --> 00:30:06,840 You're still headed towards death. Good luck! 261 00:30:07,480 --> 00:30:10,160 [music playing] 262 00:30:10,280 --> 00:30:11,560 I'd like to give you an offer. 263 00:30:11,640 --> 00:30:12,600 [squealing] 264 00:30:13,920 --> 00:30:17,600 What I like from your conversation is that you've understood 265 00:30:17,840 --> 00:30:19,200 where the gaps are 266 00:30:19,440 --> 00:30:21,120 and you've understood what you need to do. 267 00:30:22,320 --> 00:30:23,840 How much can you accommodate? 268 00:30:23,960 --> 00:30:25,880 If we can understand 269 00:30:25,960 --> 00:30:27,520 what it is that you're willing to offer. 270 00:30:27,640 --> 00:30:29,200 [music playing] 271 00:30:30,280 --> 00:30:33,440 Okay, listen to the other Sharks first. 272 00:30:33,520 --> 00:30:35,760 Then if I'm the only one left 273 00:30:35,840 --> 00:30:37,080 then you can think and let me know. 274 00:30:37,200 --> 00:30:38,960 - Thank you. We appreciate that. - Thank you. 275 00:30:40,240 --> 00:30:41,960 - I have met you before. - Yes. 276 00:30:42,080 --> 00:30:43,280 - Love you guys. - Thank you. 277 00:30:43,360 --> 00:30:44,800 Love the work that you're doing. 278 00:30:45,040 --> 00:30:47,520 - You're doing well on Blinkit too. - Yes. 279 00:30:47,600 --> 00:30:48,440 - Isn't it? - Yes. 280 00:30:48,520 --> 00:30:49,720 I don't want to be out 281 00:30:50,240 --> 00:30:51,280 but I have to be out. 282 00:30:52,360 --> 00:30:54,760 Because as per Zomato and Blinkit's policy, we can't invest in 283 00:30:54,880 --> 00:30:58,040 restaurants or brand partners. 284 00:30:58,120 --> 00:31:01,080 - Neutrality is important for us. - Okay. 285 00:31:01,160 --> 00:31:03,480 So I have to be out. Sorry for that. 286 00:31:05,760 --> 00:31:07,600 I want to join you 287 00:31:07,680 --> 00:31:08,960 but I'm afraid 288 00:31:09,680 --> 00:31:11,960 because Rs 1 crore is not a joke. 289 00:31:12,040 --> 00:31:13,840 - Yes, Sir. - Not at all. 290 00:31:13,920 --> 00:31:15,840 You want help. I'm willing to help. 291 00:31:15,920 --> 00:31:18,440 Let's connect on WhatsApp and meet outside. 292 00:31:19,720 --> 00:31:21,400 I'm out now because I'm very scared. 293 00:31:23,520 --> 00:31:25,240 If you're still thinking 294 00:31:25,320 --> 00:31:27,040 that a VC will come in and save you 295 00:31:27,160 --> 00:31:28,400 then it's delusional. 296 00:31:28,480 --> 00:31:29,560 - Nobody will save us. - No. 297 00:31:29,640 --> 00:31:31,440 I mean we will save ourselves. 298 00:31:33,120 --> 00:31:35,760 If you bet on the jockey and not the horse, 299 00:31:35,840 --> 00:31:38,280 you will believe that we will do whatever pivot is needed. 300 00:31:38,360 --> 00:31:41,040 You're the jockeys too fast for the horse, is my problem. 301 00:31:43,040 --> 00:31:45,800 But anyway, let me speak to Namita and... 302 00:31:45,920 --> 00:31:46,920 - Thank you. - Thank you. 303 00:31:47,120 --> 00:31:48,240 Okay, fine. 304 00:31:50,520 --> 00:31:52,520 [mumbling] 305 00:31:52,800 --> 00:31:53,760 [mumbling] 306 00:31:53,880 --> 00:31:55,880 We can hear you. 307 00:31:56,080 --> 00:31:57,200 We know what you want. 308 00:31:58,280 --> 00:31:59,200 Joke. 309 00:31:59,320 --> 00:32:01,480 Let's convince Aman to come in with everybody else. 310 00:32:01,560 --> 00:32:02,800 [laughing] 311 00:32:02,880 --> 00:32:05,160 And I think Anupam may also be thinking about it. 312 00:32:05,600 --> 00:32:07,200 One thing is great. 313 00:32:07,320 --> 00:32:09,800 You guys haven't lost your sense of humour. 314 00:32:09,920 --> 00:32:12,640 You know, Anupam? If we lose it 315 00:32:12,720 --> 00:32:14,880 we won't be able to keep moving forward. 316 00:32:14,960 --> 00:32:17,200 Good! Great attitude. 317 00:32:19,480 --> 00:32:21,880 They're back. The queens. 318 00:32:21,960 --> 00:32:24,240 [music playing] 319 00:32:24,640 --> 00:32:26,840 It's the final offer. Namita and I will come in. 320 00:32:35,360 --> 00:32:36,600 Say yes or no. 321 00:32:37,360 --> 00:32:38,520 It's a good offer. 322 00:32:38,600 --> 00:32:39,720 - Could we have a minute to discuss? - Yes. 323 00:32:39,840 --> 00:32:41,920 - Yeah, sure. - Thank you. Be right back. 324 00:32:44,480 --> 00:32:47,200 Vineeta, he's saying they're killing it on Blinkit. 325 00:32:47,440 --> 00:32:48,280 Yeah, must be. 326 00:32:48,320 --> 00:32:49,920 And they just started quick commerce. 327 00:32:50,000 --> 00:32:51,320 - I know but quick commerce... - Quick commerce... 328 00:32:51,400 --> 00:32:54,040 Not on quick commerce like Swiggy and Zepto. 329 00:32:54,120 --> 00:32:55,120 Their sales will go up. 330 00:32:55,200 --> 00:32:57,520 We want to make it... continue at 60. 331 00:32:58,520 --> 00:33:01,440 And if they say no, we walk away. 332 00:33:02,120 --> 00:33:03,280 We can't make that call. 333 00:33:03,360 --> 00:33:06,160 [music playing] 334 00:33:10,560 --> 00:33:12,360 We don't have a counteroffer. 335 00:33:12,440 --> 00:33:14,680 We just have a question for clarity. 336 00:33:14,760 --> 00:33:16,480 - Regarding the offer. - Tell me. 337 00:33:16,560 --> 00:33:19,600 If we take Rs 1 crore at this valuation. 338 00:33:19,680 --> 00:33:23,040 You will get around 1.33 per cent equity in the company. 339 00:33:23,280 --> 00:33:26,480 And the differential of 0.6 340 00:33:26,560 --> 00:33:29,000 around 0.33 per cent each 341 00:33:36,600 --> 00:33:39,760 If advisory has any tax implication 342 00:33:39,840 --> 00:33:41,360 then the company 343 00:33:41,440 --> 00:33:43,040 which is Slick Organics... 344 00:33:43,120 --> 00:33:44,200 We will figure it out. 345 00:33:44,280 --> 00:33:45,120 Sure, we'll do that. 346 00:33:45,280 --> 00:33:46,920 - Wow! Good. - You got a deal. 347 00:33:52,800 --> 00:33:54,960 - Thank you for the grilling. - I'm very excited. 348 00:33:56,360 --> 00:33:57,640 Congrats, guys! 349 00:34:02,680 --> 00:34:03,920 So we're betting on the jockeys. 350 00:34:04,000 --> 00:34:05,640 - Yes, we're going to get better. - We promise you. 351 00:34:05,720 --> 00:34:07,480 - Thank you. See you! - Thank you. 352 00:34:08,000 --> 00:34:09,640 - Congrats! - Let's do this. 353 00:35:55,000 --> 00:35:56,960 And we're the founders of Vecros. 354 00:36:06,520 --> 00:36:08,760 I'd like to show you an interesting demo. 355 00:36:08,840 --> 00:36:11,960 A demo that probably none of you or anyone in India 356 00:36:12,040 --> 00:36:13,720 has ever watched. 357 00:36:14,280 --> 00:36:16,800 So, we're calling our flagship product Athera. 358 00:36:16,880 --> 00:36:18,280 And the hero of our pitch. 359 00:36:20,480 --> 00:36:23,120 [buzzing] 360 00:36:34,440 --> 00:36:35,760 Who's operating it? 361 00:36:39,960 --> 00:36:41,960 Prem just pressed a button 362 00:36:42,040 --> 00:36:44,040 and the drone automatically took off 363 00:36:44,120 --> 00:36:47,320 came inside, took a round, and landed. 364 00:36:47,440 --> 00:36:49,800 Also, you saw the 3D map. 365 00:36:49,920 --> 00:36:52,200 [music playing] 366 00:36:52,280 --> 00:36:54,160 Sharks, Athera is India's first 367 00:37:26,840 --> 00:37:29,480 So, Vecros innovated a drone 368 00:37:29,560 --> 00:37:32,280 that has 8 cameras, as you can see. 369 00:37:43,400 --> 00:37:46,600 and can also dodge obstacles, if any. 370 00:37:51,040 --> 00:37:53,240 we're going to launch our new product, Jasper. 371 00:37:58,080 --> 00:37:59,920 we want India to be recognised at the global stage 372 00:38:00,000 --> 00:38:02,720 and want to become the number one player in this category. 373 00:38:02,840 --> 00:38:05,880 So, Sharks, let's change the idea of what drones can do. 374 00:38:07,040 --> 00:38:08,160 We have one demo left. 375 00:38:08,240 --> 00:38:09,440 - Another demo? - Can we show you? 376 00:38:09,560 --> 00:38:10,480 Sure. 377 00:38:10,560 --> 00:38:13,760 I told you about a unique feature of obstacle avoidance. 378 00:38:13,840 --> 00:38:15,280 I'd like to show it to you live. 379 00:38:15,360 --> 00:38:16,280 What is obstacle avoidance? 380 00:38:16,360 --> 00:38:18,040 In obstacle avoidance, 381 00:38:18,120 --> 00:38:19,360 Prem will launch it again 382 00:38:19,440 --> 00:38:22,040 and the drone will hold itself autonomously 383 00:38:22,160 --> 00:38:24,520 and as soon as I get close to it, it will dodge. 384 00:38:24,600 --> 00:38:28,120 If you wish to participate, one of you can experience it. 385 00:38:28,200 --> 00:38:30,200 He is our obstacle. Wish to go? 386 00:38:30,280 --> 00:38:31,520 What? 387 00:38:32,360 --> 00:38:36,000 By chance, if it doesn't miss him, it's alright. 388 00:38:36,760 --> 00:38:38,760 [laughing] 389 00:38:39,440 --> 00:38:40,960 We love you, Anupam. 390 00:38:42,000 --> 00:38:42,920 Okay. 391 00:38:44,400 --> 00:38:45,600 [buzzing] 392 00:38:45,680 --> 00:38:46,640 Whoa! 393 00:38:46,720 --> 00:38:48,520 - What do I have to do? - He's scared. 394 00:38:50,240 --> 00:38:52,320 You have to run towards it, like you have to catch it. 395 00:38:53,480 --> 00:38:54,480 Come on. 396 00:38:55,640 --> 00:38:57,000 Oh my, God! 397 00:38:58,160 --> 00:38:59,960 Enough. 398 00:39:00,720 --> 00:39:01,920 Give me the remote. 399 00:39:02,000 --> 00:39:04,000 - Oh! - No, you can't control it. 400 00:39:15,200 --> 00:39:18,360 I know him. I know how his mind works. 401 00:39:19,560 --> 00:39:21,480 Move aside. 402 00:39:21,560 --> 00:39:23,920 [screaming] 403 00:39:25,240 --> 00:39:26,400 [buzzing] 404 00:39:27,440 --> 00:39:28,760 - Gosh! - That was wrong of you! 405 00:39:28,880 --> 00:39:31,280 - What did I do? I saved my back... - You removed the obstacle. 406 00:39:31,360 --> 00:39:32,800 It is so dangerous. 407 00:39:34,040 --> 00:39:35,280 Oh my God! 408 00:39:35,480 --> 00:39:36,960 Hang on. What happened? 409 00:39:37,200 --> 00:39:39,040 So, here's the thing. 410 00:39:39,120 --> 00:39:42,680 The drone was already trained in a particular orientation 411 00:39:42,800 --> 00:39:44,880 to look for a free path on its own. 412 00:39:45,120 --> 00:39:48,160 When its nose was changed or its... 413 00:39:48,240 --> 00:39:50,800 - Its heading was changed. - The heading changed. 414 00:39:50,960 --> 00:39:52,080 So, it got confused. 415 00:39:52,200 --> 00:39:53,360 That was risky. 416 00:39:54,160 --> 00:39:55,160 [tense music playing] 417 00:39:55,560 --> 00:39:57,960 I hope there is no damage. Can that be repaired? 418 00:39:58,040 --> 00:39:58,880 It can be repaired. 419 00:39:58,960 --> 00:40:00,400 - Its landing gear broke. - Yes. 420 00:40:00,480 --> 00:40:02,400 - We can replace that. - Or you could take her necklace. 421 00:40:02,560 --> 00:40:03,680 [Sharks laugh] 422 00:40:04,160 --> 00:40:05,480 Good to hear. Good to hear that. 423 00:40:05,600 --> 00:40:07,800 Tell us about yourself and your education. 424 00:40:37,080 --> 00:40:38,880 I thought of doing something in drones 425 00:40:39,200 --> 00:40:40,880 which was not attempted before. 426 00:40:41,000 --> 00:40:44,440 It struck me that India doesn't have GPS Denied Technology. 427 00:40:44,760 --> 00:40:47,840 I met Rajeshree on LinkedIn during the pandemic. 428 00:40:48,120 --> 00:40:49,040 Oh, on LinkedIn! 429 00:40:55,680 --> 00:40:56,960 Robotics was my passion. 430 00:40:57,080 --> 00:41:00,840 I wrote over six papers on it during the term of my graduation. 431 00:41:01,080 --> 00:41:03,720 I even got an offer to do a Masters and a PhD. 432 00:41:03,880 --> 00:41:07,240 When I came to IIT Delhi, I started working with him. 433 00:41:07,360 --> 00:41:10,120 I gave up that offer and continued with him. 434 00:41:10,320 --> 00:41:12,000 There are a lot of drone start-ups. 435 00:41:12,120 --> 00:41:13,960 The start-ups in India 436 00:41:14,080 --> 00:41:17,800 mostly work on flight time and avionics. 437 00:41:17,960 --> 00:41:19,520 The real gap lies in intelligence. 438 00:41:20,400 --> 00:41:22,320 The drones that the industry requires 439 00:41:22,440 --> 00:41:23,960 are not being made. 440 00:41:24,240 --> 00:41:26,840 Let's say this tank has a GPS Denied environment. 441 00:41:26,920 --> 00:41:27,920 How do we fly the drone here? 442 00:41:28,000 --> 00:41:30,400 In order to autonomously fly drones, 443 00:41:38,200 --> 00:41:39,320 Why is that so? 444 00:41:39,400 --> 00:41:41,600 - The world has autonomous cars now. - Yes. 445 00:41:49,120 --> 00:41:52,600 Autonomous systems come with a 100 kg payload weight 446 00:41:52,640 --> 00:41:54,120 where you can fit a supercomputer. 447 00:41:54,240 --> 00:41:56,520 When it comes to a drone, even one gram is very important. 448 00:41:56,680 --> 00:41:59,080 So, your invention is miniaturisation. 449 00:42:13,200 --> 00:42:15,120 It has a market share of 37%. 450 00:42:15,200 --> 00:42:17,760 The first is Defence with a 48% market share. 451 00:42:17,920 --> 00:42:20,560 The rest is consumer and other applications. 452 00:42:20,800 --> 00:42:22,600 So, inspection and mapping 453 00:42:22,800 --> 00:42:25,280 - which is your area of work... - Yes. 454 00:42:25,400 --> 00:42:28,320 How big a market is it for drone services and products? 455 00:42:28,560 --> 00:42:32,000 As per the report, it's a 20 billion market in India. 456 00:42:32,120 --> 00:42:33,000 Twenty billion! 457 00:42:34,320 --> 00:42:36,600 - In INR or dollars? - Dollars. 458 00:42:37,800 --> 00:42:39,840 - No, that seems implausible. - The number is inflated. 459 00:42:41,080 --> 00:42:44,040 You didn't take up business courses at IIT Delhi, did you? 460 00:43:01,880 --> 00:43:04,280 - Are you the only company? - Yes, Deepinder. 461 00:43:04,360 --> 00:43:06,080 - In India, right? - Yes. 462 00:43:06,120 --> 00:43:07,160 There must be others abroad. 463 00:43:07,240 --> 00:43:08,960 - There's one in the US. - Yes, a leader in the US. 464 00:43:09,080 --> 00:43:10,360 Who is the leader in the US? 465 00:43:10,440 --> 00:43:11,360 - Skydio. - Skydio. 466 00:43:11,640 --> 00:43:13,880 - Are they not in India at present? - No. 467 00:43:13,960 --> 00:43:16,640 - When are they coming? - Well, regulations are a problem. 468 00:43:16,760 --> 00:43:18,680 The import of drones is now banned. 469 00:43:23,800 --> 00:43:25,720 They might come in the next two or three years. 470 00:43:26,600 --> 00:43:31,200 Do you sell services, products or operating systems? 471 00:43:31,280 --> 00:43:32,200 What do you exactly do? 472 00:43:32,400 --> 00:43:34,880 We operate via two models. 473 00:43:34,960 --> 00:43:36,240 The first is the Enterprise Model. 474 00:43:43,680 --> 00:43:46,080 The next model is for drone service providers 475 00:43:46,160 --> 00:43:47,680 who need a fleet of drones. 476 00:43:57,920 --> 00:44:00,120 What are your sales or revenue? 477 00:44:00,200 --> 00:44:03,080 Our revenue last month was around Rs. 9 lakhs. 478 00:44:03,160 --> 00:44:04,360 Nokia is one of our clients. 479 00:44:04,440 --> 00:44:06,240 We showed them our proof of concept 480 00:44:06,320 --> 00:44:09,480 and they gave us a letter of intent for ten drones. 481 00:44:18,000 --> 00:44:19,880 How many people in India 482 00:44:20,040 --> 00:44:22,240 are registered as drone manufacturers? 483 00:44:22,320 --> 00:44:23,320 200 companies. 484 00:44:23,400 --> 00:44:25,800 100 of them must be bigger than you. 485 00:44:25,880 --> 00:44:27,320 - In business and size, yes. - In size. 486 00:44:27,440 --> 00:44:29,600 For them, this is just a natural extension 487 00:44:29,680 --> 00:44:31,280 if this becomes profitable. 488 00:44:31,920 --> 00:44:33,520 How many do you currently sell? 489 00:44:33,640 --> 00:44:35,120 We are pre-revenue now. 490 00:44:48,000 --> 00:44:49,600 We've gotten acquisition offers. 491 00:44:49,680 --> 00:44:50,520 - You got them? - Yes. 492 00:44:50,640 --> 00:44:53,080 - What did they offer you? - Around 70% of the company. 493 00:44:53,200 --> 00:44:56,000 - For how much? - Rs. 15 crores for 70%. 494 00:45:01,800 --> 00:45:03,200 Our team is quite small right now. 495 00:45:03,280 --> 00:45:06,120 We want to bring passionate people like us on board 496 00:45:06,240 --> 00:45:08,000 and defeat our competition easily. 497 00:45:08,080 --> 00:45:09,800 - There's no harm in dreaming. - Yes, sir. 498 00:45:09,920 --> 00:45:11,280 How will you grow big? 499 00:45:16,920 --> 00:45:20,640 Did you never feel the need for a business co-founder? 500 00:45:21,360 --> 00:45:23,280 He'll focus on the business while you focus on the product. 501 00:45:23,400 --> 00:45:25,320 Our current focus is on growing the business. 502 00:45:35,920 --> 00:45:37,040 Rajeshree and Prem, 503 00:45:40,840 --> 00:45:42,040 the B2B one, 504 00:45:42,160 --> 00:45:43,960 I don't have much knowledge of it. 505 00:45:44,080 --> 00:45:46,280 What the demand in India is or what the needs are. 506 00:45:46,800 --> 00:45:49,360 I won't be of much help to you. 507 00:45:49,480 --> 00:45:51,400 For that reason, I'm out. 508 00:45:52,640 --> 00:45:53,880 As we discussed, 509 00:45:53,960 --> 00:45:56,360 there are bigger drone companies out there than you. 510 00:45:56,480 --> 00:45:57,720 I may be wrong, 511 00:45:57,840 --> 00:45:59,520 but my assumption is 512 00:45:59,600 --> 00:46:02,440 that if one of these companies wanted, 513 00:46:02,640 --> 00:46:04,760 they could enter the market 514 00:46:05,120 --> 00:46:07,720 and easily compete with you. 515 00:46:08,040 --> 00:46:10,480 For that reason, I'm out, but I wish you the best. 516 00:46:11,440 --> 00:46:12,680 I feel that 517 00:46:12,840 --> 00:46:16,280 you're being pulled in the direction of services, 518 00:46:16,360 --> 00:46:17,680 and you have to because of revenue, 519 00:46:17,760 --> 00:46:20,520 so you will lose focus on R&D and tech. 520 00:46:20,600 --> 00:46:21,760 My suggestion to you is 521 00:46:21,880 --> 00:46:24,200 you should get into a partnership 522 00:46:24,280 --> 00:46:26,760 with a tech-commercialisation organisation 523 00:46:27,400 --> 00:46:30,200 that can open those doors for you 524 00:46:30,320 --> 00:46:33,040 while you focus on the technology. 525 00:46:33,160 --> 00:46:34,760 I don't quite see that right now 526 00:46:34,840 --> 00:46:36,480 and I won't be able to help you with that. 527 00:46:36,600 --> 00:46:37,440 So, I am out. 528 00:46:37,480 --> 00:46:38,440 - Good luck. - Thank you. 529 00:46:39,200 --> 00:46:42,440 You said spatial AI drone. 530 00:46:43,400 --> 00:46:46,840 Anupam twitched one button and it crashed. 531 00:46:48,080 --> 00:46:50,000 The terminology you used 532 00:46:50,040 --> 00:46:51,560 and the demo you showed us 533 00:46:52,120 --> 00:46:54,520 didn't seem to match in my opinion. 534 00:46:55,440 --> 00:46:57,480 Secondly, your competition is really high. 535 00:46:58,000 --> 00:46:59,480 A hundred companies are bigger than you. 536 00:46:59,800 --> 00:47:01,680 They are doing more R&D than you. 537 00:47:01,800 --> 00:47:04,960 So far, I have not understood why you guys are special. 538 00:47:06,040 --> 00:47:09,560 The third point is, you said you're a hardware company. 539 00:47:09,920 --> 00:47:12,120 Now, you say you're shifting to services. 540 00:47:12,680 --> 00:47:15,000 If you wish to move to services, 541 00:47:15,120 --> 00:47:18,480 why can't you use anyone else's hardware to make that shift? 542 00:47:18,600 --> 00:47:19,880 You can do that, right, or not? 543 00:47:19,960 --> 00:47:22,040 Their hardware isn't that capable. 544 00:47:22,120 --> 00:47:24,200 It's 3.5. You could import it. 545 00:47:25,160 --> 00:47:27,200 Make it on 3 since it's just services. 546 00:47:27,280 --> 00:47:29,000 Services will have a roadmap. 547 00:47:29,080 --> 00:47:31,920 You'll start one thing and go on to make many others. 548 00:47:32,560 --> 00:47:35,960 So, either be a services company or a hardware company. 549 00:47:36,400 --> 00:47:40,080 At an early stage, both things are too much to do. 550 00:47:40,840 --> 00:47:43,040 For these three reasons, I'm out. 551 00:47:44,040 --> 00:47:47,160 You must know this business. I didn't understand it yet. 552 00:47:47,240 --> 00:47:48,320 It will take more time. 553 00:47:48,720 --> 00:47:51,440 What I liked about you was you turned down an offer 554 00:47:51,560 --> 00:47:53,960 and decided to follow your dreams. 555 00:47:54,760 --> 00:47:56,000 I will make you an offer. 556 00:47:56,920 --> 00:47:58,480 - Whoa! - Wow! 557 00:47:59,720 --> 00:48:01,880 Rs. 10 lakhs for 1% equity. 558 00:48:02,520 --> 00:48:05,520 The rest Rs. 90 lakhs debt for 3 years 559 00:48:15,600 --> 00:48:17,440 We're already closing a round. 560 00:48:17,760 --> 00:48:19,200 Pre-money valuation at Rs. 20 crores 561 00:48:19,400 --> 00:48:21,640 and Rs. 2 crores oversubscribed at post-money valuation. 562 00:48:21,720 --> 00:48:24,480 So, if you want to offer the same valuation... 563 00:48:24,840 --> 00:48:26,520 Um, we'd love to have you. 564 00:48:26,600 --> 00:48:28,400 Basically, that will be Rs. 20 lakhs 565 00:48:28,480 --> 00:48:29,360 - for 1%. - 1%. 566 00:48:31,000 --> 00:48:33,960 Rs. 20 lakhs for 1% equity at a valuation of Rs. 20 crores, 567 00:48:34,040 --> 00:48:35,040 as you had said. 568 00:48:35,640 --> 00:48:39,440 The rest is debt at 10% interest for 3 years. 569 00:48:45,800 --> 00:48:46,800 - Comfortable? - Yes. 570 00:48:48,160 --> 00:48:51,920 Yes. Aman, I think we have a deal. 571 00:49:09,040 --> 00:49:10,360 [camera shutter clicking] 572 00:49:11,240 --> 00:49:12,080 - Thanks a lot. - Bye. 573 00:49:12,240 --> 00:49:13,280 We'll meet in Delhi. 574 00:49:13,640 --> 00:49:15,120 [Sharks giggle] 575 00:49:15,240 --> 00:49:16,680 Don't fly back on your drone. 576 00:49:16,840 --> 00:49:17,800 - No. - [both chuckle] 577 00:51:55,280 --> 00:51:57,120 Hello, friends. Welcome to Ask The Shark. 578 00:51:57,160 --> 00:51:59,840 Joining us today is Deepinder Goyal of Zomato, 579 00:51:59,920 --> 00:52:01,240 also called Deepi. 580 00:52:01,360 --> 00:52:03,240 Rudra from Indore has asked a question. 581 00:52:51,480 --> 00:52:52,720 - Right? To summarise. - Absolutely.