[music playing]
[Anupam] Ooh!
This is the very car which I use
for my product's marketing and branding.
Frankly, Sharks. I had no interest in studies.
I dropped out of college after a year
to start a business of my own.
After doing research for a year, I got to know
that the energy drink market in India was huge,
but the market was dominated by foreign brands.
So, I decided
to launch a pocket-friendly energy drink in India
which is healthy and tasty and has the best ingredients.
So, Sharks, I started Vold Energy Drink.
Sharks, we're available in Goa, Pune, Mumbai, Nashik and Beed
which is a total of five cities.
Sharks, who would like to make Vold Energy Drink
India's leading energy drink brand?
Sharks, to fulfil my dream,
Devesh, where did you say you were from?
Yes.
I had a strong dislike for Mathematics.
So, I switched to Geography after six months in eleventh grade.
- [chuckle] - Wow.
I had six friends back then.
I compelled them to switch to Geography too.
- Huh? - I had no company.
[laughs]
After the twelfth grade, I enrolled for the D.Pharm course.
I dropped out after a year.
How many friends' lives did you ruin there?
I didn't, it was an online course.
Devesh, you realised you didn't have an interest in studies.
Why did you enrol for it?
I didn't have an interest,
but if I studied the night before the exam,
I could attempt it.
You see, it was Covid season back then.
- Season! - I mean, it was the pandemic.
- And everyone was inclined towards medical... - Buddy!
Dad told me to get enrolled for the pharmacy course.
That's why I enrolled for the course.
Which year was this?
Um, 2021.
After 2021,
I wanted to start my own manufacturing business.
I mean, I wanted to make a brand.
I did a lot of searching,
and I finally settled on the concept of energy drinks.
I had faced those issues myself.
For instance, the pricing.
- Other energy drinks cost Rs. 100 and above. - Yes.
- And yours? - Rs. 60.
What does your father do?
My father has a welding workshop and owns wedding lawns.
What happened after?
Then I used to call companies
and tell them that I wanted to start my own brand.
They told me the budget would cross Rs. 30 lakhs
- as the minimum quantity was 3 lakh cans. - Right.
- So, 27 companies in India rejected my proposal. - I see.
One day, I found a contact in Gujarat.
I got in touch with him.
"Sir, here's the thing. I want to start and need your help."
He called me to Gujarat.
We discussed it at length and he agreed.
Then, I started Vold.
- You're persistent! - You have a fighting spirit.
- Persistent. - Very good.
Dad gave me Rs. 5 lakhs.
I travel everywhere by car.
My friends also take the car home.
So, that helps with marketing.
That's fantastic!
How about the product now? We need energy too.
- Sure, taste it. - Let's try it.
- Oh! It's in the car. - Whoa!
- He has a cool box! - Wow! Lovely.
[light-hearted music playing]
Oh.
What does Vold mean? Is it derived from bold?
I wanted a catchy name.
So, I went with Hold,
but it was already registered.
I was riding the motorbike one day and wondering what name to go with.
All the names were registered.
Then I said let's try Vold.
When I looked up the meaning on the internet,
force, assault and power came up as the meanings.
So, I went with Vold.
Who designed the logo and the packaging?
My friend and a graphic designer made it at home.
- Okay. - The concept was mine and he made the design.
It took me two days to come up with the design.
- Two days! - Yes.
they had started the business with an energy drink?
- Tzinga. - It didn't do well. So, they...
Why didn't it do well?
Precisely!
"Give me Tzinga." That sounds lousy!
"Give me Vold."
[hysterical laughter]
The name Vold exudes power.
- Tzinga is so lousy! - [laughs]
- "Give me Tzinga." - Don't talk about Sugar next.
- I'm scared of you. - [both laugh]
You claim this is a healthy drink, but is this really healthy?
- What are your thoughts? - It is healthy.
It contains inositol.
It is also helpful in PCOS among women.
If you add 'ashwagandha' to cigarettes,
would that make cigarettes healthy?
- No, it wouldn't. - Then why the false claim?
[sombre music playing]
- Yes. - Do you have an idea of its market size?
The Indian energy drink market size
- How much share does Red Bull have? - 61%.
Gosh!
This market, you see... Take Red Bull for instance.
- Yes? - They sell a lifestyle.
In colleges, people think drinking Red Bull is cool...
- Yes, drinking something cool. - To drink.
- Correct? - Yes.
What are your brilliant strategies to defeat them?
I don't have enough budget for marketing as of now.
So, what I do is this.
I have bought 25 phone numbers in my and my friends' names.
I do marketing through WhatsApp.
I have the data on 80 crore Indians.
Of 80 crore people.
I took it from Instagram.
You don't get numbers on Instagram.
No, a guy placed an ad that you will get x numbers...
Yes! You bought an email list...
- Yes, email. - Whatever it is.
- You're sending marketing emails to them. - Ah, yes.
If you send over 500 texts on WhatsApp via API,
then your number gets banned.
That's why I bought 25 phone numbers.
Now that you've said this on TV,
WhatsApp is going to shut down your business.
No, they won't.
So, before getting a distributor,
this is what I do.
The numbers are as per a particular PIN code.
The data for Ahmadnagar is separate.
Pune will have its own data and so will Mumbai.
I upload all the files at night before I go to sleep.
The system automatically functions on the computer.
In one night, around 12,000 texts
are sent on WhatsApp to prospective customers.
- In that area. So, they approach distributors for Vold. - Yes.
- So, the distributor stocks up. - Yes.
You are very resourceful I must say!
Give us your numbers for monthly sales and expenses.
I started on 23 April 2023 which was the first month.
No. I take an advance payment for some of it
while some give post-dated cheques of 15 days or a month.
How many people are in your team?
I work alone.
- You do it single-handedly! - Yes, I do everything alone.
- You launched a brand single-handedly! - Yes.
- You made sales single-handedly. - Yes.
Is your company formed? Is it an LLP?
- Sole proprietorship? - Private Limited. OPC Pvt. Ltd.
Devesh, what is your ambition?
You said you want to take the world by storm.
- Sir, I... - How will you achieve it?
You're alone, Devesh. I salute your spirit, okay.
You have a solid marketing instinct and amazing resourcefulness.
It all checks off.
- How will you make this a big company? - Sir, I...
Do you have a strategy
- or are you relying solely on your spirit? - I have a strategy.
[tense music playing]
College festivals are just around the corner.
I will start marketing there.
That marketing will continue,
and the marketing on WhatsApp will also carry on.
How much money do you need to make this a Rs. 100-crore business?
I need Rs. 50 lakhs.
- You'll make a Rs. 100-crore business! - Yes.
[intriguing music playing]
How is it possible?
Your working capital will be more than this.
[sombre music playing]
This business rests solely on marketing.
Okay?
You claim with an investment of Rs. 50 lakhs,
you can make this a Rs. 100-crore business.
You haven't thought this through.
No! I can, sir.
- Other marketing... - You cannot!
How can an investment of 50 lakhs generate a Rs. 100-crore business?
- Tell me. - Um...
- You'll need a mere Rs. 8 crore just in working capital. - Yes.
- Your payment from the distributors will come after a month. - Yes.
- Then you also have... - No!
The payment of only 20% of the distributors
will come after a month.
- but I don't see that... - Okay.
As you don't have an R&D department.
For sales of Rs. 6 lakhs a month and Rs. 70 lakhs a year,
- you want a valuation of Rs. 25 crores. - Yes.
It's 30 to 35 times your revenue.
That isn't justified either.
I don't see how this will become a big business.
I don't see any depth.
For these reasons, I'm out. Four Sharks are left.
Sometimes, we do this on Shark Tank.
A lot of founders come here who are raw
but are high on zest and zeal.
So, sometimes, we take a bet on them to help them build a big business.
You have that in you,
but what I don't understand is
why you haven't thought ahead.
I would say
don't utilise any more of your dad's money.
Take the taping off your car and return it
until you don't figure out
- how to make this a business... - Okay.
And not just let it be a hobby.
That's why, I'm out. Good luck.
I really liked your passion.
I don't agree with Anupam
that you should return the car or not do this.
You should keep the car.
This is your superb differentiator.
So, do keep it,
but I would like to say
- that you're in dire need of a co-founder. - Okay.
You have the passion and the vision,
but you need somebody
- who understands marketing, financials and business. - Yes.
You need someone with that acumen.
- So, you should get a co-founder on board. - Okay.
Increase your sales.
- Then, we'll meet again. - Okay.
Today, I'm out.
That's why I have a really strong desire to support you.
Red Bull used to do this when they started out 20 years ago.
- Sampling at college festivals... - Yes.
- They used to crush their cans and throw them outside bars. - Yes.
So that people would think
- it's a great product and they'd buy it too. - Yes.
You're replicating the same 20-year-old techniques now.
You haven't worked hard yet.
You haven't explored how you could make this a big brand
in tier 2 and tier 3 cities using social media.
That can help you grow much faster.
As of now, I don't find this investible, Devesh.
I am out.
Your marketing is very basic.
Yes, it is basic.
You won't be able to grow beyond a certain level
- as they said. - Yes.
When I start getting funds,
I will invest in better channels of marketing.
- It feels like... Have you heard of building castles in the air? - Yes.
- Aren't you building castles in the air? - No.
- Why is that? - I can do it, sir.
No, there's a difference between confidence and overconfidence.
- No... - How will you do it?
I will do it, sir. I will learn and implement.
As I was advised, I will get a co-founder on board
who has experience in marketing and all other areas.
I feel like my money will sink.
- No, sir. It won't. - Why not?
No, sir. I won't let it.
How?
I won't let it. I will get a co-founder
and you will also lend your expertise.
If not ten days, you could give me at least a day.
I will learn whatever you teach me in that one day
and grow the business by implementing it.
Okay. I'll give you an offer.
Wow!
- Okay? - A valuation of Rs. 1 crore.
And Rs. 40 lakhs debt at 12% interest
for two years.
That's right.
- Rs. 10 lakhs for 10% equity. - Okay.
- Rs. 1 crore valuation. Correct? - Yes.
I'll give you the rest Rs. 40 lakhs as royalty.
Royalty at 3% for every can sold
- It's a very good deal. - Great.
Your sales is a mere Rs. 30 to 35 lakhs.
This is a good valuation.
- It's the first step. - You'll get there.
- It'll be the same... - Shark, deal done.
You're really cool.
Oh my God! How sweet!
'Aman Gupta is a cool guy.'
he has turned boAt into a very big empire.
He can do the same for Vold too!
[joyous music playing]
[theme music playing]
[music fades]
'I tread against the waves,'
- 'what harm can the storm do me?' - Nice.
'I fly even with broken wings,'
'the direction of the wind also does change.'
'This rebellious mind is obstinate,'
'it does what it wants and spares no thought.'
Right?
Jewellery is also a form of self-expression.
We believe that
jewellery is more than just a piece of decoration.
It is a conversation starter.
That's why we started Quirksmith.
Quirksmith is a silver jewellery brand
inspired by poetry
Our product range includes
the Hazaaron Khwahishein Aisi Necklace
which will inspire you to dream.
Or the Aham Brahmasmi Thumb Ring
which will give you strength on your difficult days.
Our biggest USP is
our complementary skillsets.
Divya is the heart and soul of the entire set up.
And Pragya is the brain and body of this entire set-up.
And when the mind and body meet,
magic is bound to happen!
In the last seven years,
we have built a loyal community of over 3 lakh customers.
Not just in India,
we want people all over the world to wear their emotions.
Our ask is Rs. 80 lakhs for 1% equity.
'Who says the sky cannot be breached?'
'Throw a stone with all your might.'
Lovely.
[light-hearted music playing]
That is for you, Aman.
Thank you.
- Is all your jewellery from Quirksmith? - Yes.
- Yes. - Beautiful.
[light-hearted music playing]
- 'Not noise, but the rise of a new voice.' - New voice.
Beautiful.
I've given you Manmauji.
- [laughs] - Manmauji!
Given how carefree you are...
Keeping that in mind, we chose Manmauji for you.
So, I have written a few lines on Manmauji as well.
'O, tread these paths with me blithe and carefree.'
'Why worry about the destination, I am happy-go-lucky.'
Ah!
Beautiful.
The one we gave to Namita
is the Hasrat Hai Shadeed Necklace.
This is hopeful.
The poem goes like this.
'You must have seen a cactus in bloom sometime.'
- Wow! - 'It must have found'
'an oasis even in the desert.'
'A plant will grow even out of a moist wall.'
'If the desire is strong, you will find the way.'
Wonderful.
Fantastic!
I love the way you put things.
Thank you.
I would just like to point out one thing.
What we gave you is a Musaafir Car Hanging
for CarDekho.
- So... - Oh, wow!
- Thank you. - It wasn't meant to be worn.
- It looks good. - Then what?
It's a car hanging.
It looks good on me too. I'm also a traveller.
[music fades]
What have you done before?
I passed out from NIFT.
Before I started Quirksmith,
I had worked for 15-16 years.
You have a lot of experience in jewellery.
- Yes. - And you?
I have a business background. I did my B.Tech
and M.Tech from IIT, Delhi in biochemical engineering
and biotechnology in 2007.
I joined Bain & Company after that.
I worked with them for six years.
After that, we were toying with the idea of doing something together
and in 2016, we launched Quirksmith online.
You started it together?
For almost two years, Divya was with her existing company...
Because her involvement was only limited to design.
It was part-time.
And she had to put in less time.
I quit InMobi
and set up a website on Shopify in the next three months.
I took the help of friends and built
the website in a bootstrapped manner.
Tell me something, you're such an amazing team
with complimentary skills, fantastic presentation,
great marketing, from what I see so far,
the full package.
You never raised any funding?
- Fully bootstrapped. - Yes, so far.
- How come? - We were on a good path till Covid.
We were doubling our sales every year.
When Covid hit, our business steeply went down,
our risk taking ability was also reduced at that time.
So we focused all our attention on building the brand.
Like that is the difficult part.
I think we've now achieved the difficult task of building a brand.
Now we're at a stage where
our online business has reached a certain scale.
This was last year, Namita, from 2022-23
we've invested in a team.
You can't base your valuation on the
team. Tell us last month's numbers.
What's the traffic on your website?
1.2 lakh visitors per month.
When your brand becomes strong, that will increase.
You'll have to work harder on building your brand.
And how much does it cost to manufacture?
The MRP is Rs. 3000.
Our average order value is around Rs. 2500.
your salary after so many years,
given your experience, must have been 1.5-2 crores.
Yes.
After that, for seven years, you did this business.
You made Rs. 24 lakhs between both of you.
Something is not adding.
Like I said,
we've come so far by improving on small things,
we've purposely not sold in marketplaces.
Getting a GMV on marketplaces
Because we were focusing on building our brand.
On our storytelling.
People aren't transacting online on websites nowadays.
Like I said, we attend pop-ups.
There's a lot of love for the brand. People
have been following us for 1.5 years.
They know all the stories.
But they haven't shopped yet.
Why didn't they? Is it because you're very expensive?
Is there a problem with the pricing?
We're very competitive.
Do your customers tell you that you're expensive,
or they don't?
No, in fact, for the designs we offer
we're quite well priced.
There's a perception that our jewellery
is very creative.
And I don't wear this on a regular basis.
It's not that we don't have those products.
What we have to do for our marketing now is that
we've to popularise the daily wear designs.
And we've built a very strong brand now
which people trust and believe in.
The next step from here is also to make things that
more and more people want.
You said multiple times that
our brand has been built.
When a brand is built,
wanting to pay that Rs. 3000
price point.
You'll find the answer.
You don't have it right now. I'm out.
Good luck.
I think your market segment is very niche as of now.
And as long as you don't change your
collections and pricing,
you'll take a lot of time to scale.
So, I hope you do that.
But I'm out for today. I wish you the best.
Great products.
Your presentation was also amazing.
But I see struggle and confusion somewhere.
I think this Hindi scripted jewellery is your identity.
I'm not sure how you can take it forward
You're going to face a big challenge in moving from
occasion wear to daily wear.
And for that reason, I'm out. I wish you the best.
Thank you.
I really liked your complimentary skills.
You're like a yin-yang pair.
One person is doing the math and the other person is
- focusing on the design. - The mind and heart.
I still haven't understood the business part though.
How is this an expandable business?
But you're amazing founders.
And it's my gut feeling that this
talent can be used to do something big.
Okay.
I found your valuation ask to be very unreasonable.
The valuation in your original ask.
My offer will be Rs. 30 lakhs for 3%.
The rest Rs. 50 lakhs, I'll give in debt
for 12% and term of the loan would be 2 years.
has a sales of Rs. 4000 crores.
But we still feel that we haven't built the brand yet.
Brands keep evolving and we should keep building it.
That's how it works.
I'd like to say something.
You used a word "evolve".
Honestly, until now,
we planned to walk slowly.
But now for the first time, we've felt...
Since when?
- In the last six months? - The last six months.
- What did you feel? - That we need to grow big.
We've decided this now.
Realisation?
It's possible that we did so because so many years have passed.
And our team
- is so fun to work with... - Yes.
Seeing them grow
brings us so much joy that we can't express.
I understand your point.
But how will I get my money back?
We want to retail.
We want to start exporting.
You don't know how to export now.
- Yes. - Exactly.
We've learnt so much.
Are you ready to grow fast now?
Yes, absolutely.
I want adrenaline.
I love the rush. It has to be fast.
I have so much adrenaline that everyone gets tired.
[laughing]
I'll give you Rs. 30 lakhs.
At 3.3%, which is equal to Rs. 9 crores valuation.
The rest is Rs. 50 lakhs debt at 12% for 3 years.
Happy-go-lucky or traveller, make your pick.
Sir, we'll just take a minute.
- Thank you. - Thank you.
[music playing]
What do we do?
- We'll have to be together. - Yeah.
[music playing]
Thank you for your offers.
Thank you for your faith.
And thanks a lot
for giving us a crash course in such a short time.
You've removed a lot of curtains from our minds.
You've cleared a lot of questions and we enjoyed it.
- Do you even reject so lovingly? - Yes.
[laughing]
- Do you have a counter? - We don't have a counter, sir.
Why did you come here to waste our time?
No.
- They valued it at Rs. 80 crores. - But we can all...
Forget the valuation.
We made that big gap. It came down to 9 crores.
What's the problem? With the valuation?
Yes.
So, why didn't you give a counter?
- We... - Because of the debt.
I think that
debt and revenue financing is something we can get outside.
That's not our agenda.
You don't want debt. I'll modify the offer.
One second. For now, I'm out.
You came here and narrated such beautiful stories.
You said that you want
to learn and take it to the next level.
- That you need direction. - Yes.
I will stop believing the entrepreneurs
who come and pitch their businesses.
Something is not matching up.
There has to be some seriousness
in the way you're running your business, ma'am. Sorry.
[music playing]
I'm going to give you the final offer because I do believe
you'll build something large.
I'll convert the deal. Rs 30 lakhs for 3 per cent.
The equity offer is the same.
You will get Rs 50 lakhs
but in the royalty format.
In that, I'll charge you 2 per cent of sales as royalty.
When I get Rs 1 crore back for my investment of Rs 50 lakhs,
I'd like to give a counteroffer.
Please.
So you should've thought about that.
But I definitely wanted to join and support you guys.
It couldn't happen.
- But thanks a lot. - But I wish you all the best.
- Thank you so much. - I'm out now. Thank you.
Thank you.
Clear your confusion.
Do you want to go international or make it local?
Do you want to make daily wear, occasion wear,
emotion or purpose? I think you're confused.
Take some time out. Good luck!
- Thank you so much. - Thank you.
- All the best. - Thank you.
Thank you.
[music playing]
Very high hopes I had. I'm so disappointed.
[music playing]
Greetings, Sharks. Let me start with a question.
What's your most favourite place?
Our home.
Correct. But why?
Because it's not made of bricks, but emotions.
A house is an abundance of dreams and promises.
A house stands with you through thick and thin.
Every corner of the house has a story to narrate.
Because it's not made of bricks, but emotions.
Wow.
- Beautiful. - These emotions outpour
when we decorate our homes.
Because somewhere a home
is an extension of our personality.
But when we talk of decorating a home,
there are two questions in front of us.
How long will it take to gather these materials?
And how much will we spend?
Sharks, with our 40 years of textile manufacturing experience
we can assure you
that a picture-perfect home of good quality and unique design
can be built in a short time span within affordable rates.
You might ask me how.
Welcome to the world of Urban Space.
[music playing]
And we're the co-founders of Urban Space.
- We are from Ahmedabad. - What a cool name!
Urban Space fulfills all your home-furnishing needs.
We are the only brand
that makes such a wide variety of products
To decorate your home.
Sharks, we want
that whenever someone thinks of decorating their home,
Urban Space must become their one-stop home furnishing solution.
So, today, we're asking for
Rs 1.8 crores for 1 per cent equity in our company.
A valuation of Rs 180 crores.
- Yes. - Yes.
Why is your valuation so high?
Aman, our ARR this year is Rs 45 crores.
Yes, so ARR is not because of that.
[music playing]
No, Ma'am. By October end,
we would have made Rs 29 crores.
Tell me the revenue for 2 years. This year, you'll make 45.
- What was it last year? - Rs 20.5 crores.
We have been into textile manufacturing for 40 years.
You're together for 40 years?
- No, family business. - Family is into it for 40 years.
I remember that when we used to raise funds,
husband-wife team
used to be at the lowest rung in the venture capitalists' hierarchy.
So, at the end of the pitch, we used to say with fear
as a disclaimer that we're married.
But I like that Shark Tank is changing things.
And people are openly, confidently
and proudly say that they're a husband-wife team.
- Yes. - In 2016,
you got married.
And that's when you found this problem and started this business.
I started in 2018.
So, whose idea was it?
No, it was her idea to venture into e-commerce.
Okay.
- These 1200 SKUs. - Yes.
Tell us more about it. What are your top categories?
- We have 5 major categories. - Hmm.
First of all, we have a backward integration.
We have our manufacturing setup.
Today, our e-commerce marketing spend is
Are you the most affordable on most platforms?
- No. - Then what's the reason?
Spending so less on marketing.
One is over the years,
we have identified the competition
like you have to identify the keywords in marketplaces.
We spend heavily in our cataloguing.
So, we have live shoots.
The customer receives the product as shown.
Our review, rating for maximum products is around 4.5
So, you're saying that you made Rs 1 crore on the sales.
Sir, that's what the balance sheet will say.
How does it matter what the balance sheet says?
- You're standing here. - We haven't withdrawn it.
You could've sent me the balance sheet.
I'm asking you.
You're telling me that the balance sheet will say so.
So, according to our ratios, we would've made around Rs 1 crore.
You made Rs 1 crore last month.
Tell me something. Why are you here?
Your business is good. It's profitable,
it's growing well,
if you take someone's investment, you know that
it becomes a fiduciary duty
for you to ensure returns to that person.
Why do you even wish to get on that treadmill?
Sir, that's why it's said that the right investor is important.
Who can understand business philosophy,
how the business wants to grow,
and we'll drive it according to that and not
just chase top line.
As a company, we are very focused
on the bottom line and profitability.
- Let's say you're at an ARR of Rs. 45 crores now. - Yes.
How and by when will you get to Rs. 1,000 crores?
Our first goalpost is
to reach an ARR of Rs. 100 crores by Diwali 2025.
Our goalpost is to reach a top line of Rs. 1,000 crores by 2030.
How will you do it?
Why haven't big brands emerged?
Why is this market so unorganised?
Trident India is the biggest domestic player at Rs. 1,500 crores.
Even they don't have a 3% market share, right?
Small... - Yes. So, why isn't this a branded industry?
The first reason is this.
Until now, this was a functional product.
Now, because of a lifestyle change,
decor has become an aspirational product.
So, now, all of a sudden,
the doors to growth and brand play have opened.
Say you hire an interior designer.
Then you choose if you want pink curtains
or purple or whatever it may be.
Then you visit the shop which is in your local vicinity.
You buy cloth from there.
So, then what brand are you talking about?
So, the first thing is the cost.
The cost of cloth is a minimum Rs. 600 to 700 per metre.
For French windows,
it takes about four curtains that cost Rs. 10,000.
You're right. I agree.
We provide the same thing for Rs. 2,000 to 2,500.
How?
You can look at our products.
- We have our products too. - Show them to us.
Okay.
[light-hearted music playing]
The factory this is manufactured in belongs to you.
Yes.
Does it belong to a parental business
or has this company set up the factory?
The land belongs to the parental company.
Our manufacturing facility
sees the production mostly for Urban Space.
We have another company
where we do white labelling for other brands.
So... - Hang on. It causes confusion when you say 'we'.
- By we, do you mean yours? - Yes.
- Or the family's? - Ours.
So, you mean to say that other than Urban Space,
- you own a B2B business also. - Yes.
That is not related to the family.
- It belongs to you both. - Yes.
Today, you've come to raise money for Urban Space,
- not for the B2B. - No.
Other than that, you also have a family business
in which you have a share but are not active.
- We don't have a share in it. - You don't.
5% of your sales is the revenue of that company...
- Yes. - The manufacturing company,
which is your company
who is making this for you.
How much money do you take home from there?
Sir, the net profitability of that company is 5%.
So, you keep that at breakeven
and let the profit be here.
No, you said you had a B2B business.
- That's a different company. - No, it's the same.
The one who manufactures for us
also manufactures for the B2B business.
So, what's the total profit?
Last year, we did sales worth Rs. 12 crores.
- That's what I was saying. - Rs. 60 to 70 lakhs.
So, Rs. 2 crores is for you and Rs. 10 crores for others.
- Correct. - Understood.
When you bring such a structure in Shark Tank
that you have interest in something else too,
it starts seeming a little uninvestable to me.
Guys, I don't think you need to head towards investment.
Some businesses are not investable.
For instance, Trident, a listed company you just mentioned,
they've touched Rs. 1,500 crores after so many years...
I don't know this industry well enough
for it to have grown that much.
So, I'm out,
but I just hope you guys do well.
You will get to Rs. 200 or 300 crores,
but for me as an investor
to get an exit seems a little difficult.
Today, I am out.
Thank you.
I still don't see this as a brand story.
Secondly, in this category,
online sales are quite hard.
So, at the scale you're already at,
I believe you must be getting quite close to Amazon's market size.
So, scaling from here in online will be very tough for you.
So, that's the reason I am out.
Are you planning on entering offline sales?
It is not restricted that we cannot go offline.
This is the beginning.
Taking it to the next space,
when the branding play and offline play must be done
comes with experience which we've come here to seek.
Look, as far as I've understood your business,
your product is good.
I found you to be amazing.
The plan of action isn't quite clear to me.
It's a little hazy. That used to happen to me too.
You'll do it. It's a profitable business.
A lot of people would be inspired by you.
The valuation is a point of friction for me.
You check off on everything.
Good founders, everything is very nice.
If valuation is the problem, then go lower.
It's a valuation issue right now.
Offer them a good valuation.
Yes, I'll decide that. Let me do that.
I'm helping you.
I don't need your help, bro.
I'll put in that Rs. 1.8 crores. I need 2% equity.
And I'll be taking a 5% royalty...
Ooh!
On sales. Yes, it's high. I know, but margins are also high here.
So, 5% in royalty
until Rs. 1.8 crores becomes 1.5x basically.
Very Sharky offer.
Look. Whether you can
make a brand in this business or not, I don't know.
- Okay. - As a trusted outlet
for selling home goods is where you can add value.
That could perhaps be a brand.
You have good designs,
the quality is fine and the price is great.
Amit gave you a good offer.
I could do one thing.
I could lower the royalty for you.
- Okay. - I'll make you an offer.
Rs. 1.8 crores. I'll take 2% equity.
There will be a royalty at 3% of your sales.
- Okay. - Okay?
Until I make 2x of my money.
- Manufacturing... - As founders,
we want all your eggs to be in one basket
if we are to invest in your company. That's the only thing.
Related party transactions are problematic.
What we can do is not keep it under us
and make it completely third-party operated.
However, we don't wish to include manufacturing in the D2C business.
You could take a minute to think and then tell us your decision.
Sure, we'll do that.
Yes.
[tense music playing]
You gave a steep valuation.
It is quite a steep valuation.
- Do we desperately want a deal? - [mumbling]
What do we do?
Do you want to combine if they're open to it?
- We can. - You should.
- Yes, let's do it. - It'd be best.
[music playing]
Amit and Anupam...
[suspenseful music playing]
We will not give royalty.
The maximum we can stretch in terms of equity is 1.25%.
so you're willing to pay 1.25% for it.
If you don't want royalty,
each person should get at least 5% equity,
if we combine.
Initially, you said you were here for mentorship.
Now, you wish to make this a price round.
Amit, I disagree.
- A business has a certain value because it has been built. - True.
We're not here to raise a round.
I believe ours is a very fair ask of 4x for a profitable business
whose proof of concept is almost at Rs. 50 crores.
Think along these lines. When will we get our returns?
Only when you get to a valuation of Rs. 1,000 crore at least,
without further dilution.
Do you see the chances of that happening?
As an entrepreneur, you'll say yes because you're an optimist.
If you look at it from a business-analysis point of view,
it is highly unlikely.
So, please understand it has to be a win-win.
Yes.
Look. You seem highly experienced to me.
You're not looking for mentorship.
You're looking for a marketing platform which you've already got.
I wish you the best. I'm out.
Anupam, maybe, it's not just that.
They're very clear about what they want and how much they'll dilute.
See, Namita. I'll tell you. I'll explain.
- So, if you don't get your deal... - Let me...
- Let me explain. - Don't say they're coming just for marketing.
And I'll tell you, as founders,
even if you're coming for marketing,
- how is it wrong? It's good. - That's okay.
When did I say it was wrong?
I said I can't go ahead with the deal.
- So, where does the deal stand? - It's over.
Royalty is off the table.
That's fine, guys. We wish you all the best.
Great business built. Build something large.
- Thank you. - Thank you.
- Take care. - See you.
[music playing]
Thank you so much for giving us your valuable time, sir.
Thank you, Rahul.
We've understood due diligence.
Now, let's understand Shark Tank's due diligence process.
Shark Tank's due diligence process is somewhat like this.
Generally, as far as big investments go,
like in our companies, the process is very rigorous.
They talk even to the employees,
meet the customers
and also carry out reference checks.
They'll even check your university degree.
It goes into such detail.
Usually, because the investment happens fast and the process is fast,
- we hire a third-party agency. - Got it.
Usually, one for legal, financial and sometimes, commercial.
They do their jobs and submit their reports.
On the basis of that, we ask our questions,
seek clarification and then, we either go ahead with it or not.
Got it.
- It isn't easy. - Yes, of course.
- It's not simple. - Correct.
I've watched people come to the Tank and fake numbers.
They say the wrong market size or the revenue.
- They say they have an offer from other investors. - Yes.
- Whereas they don't have any offers. - Yes.
- On the basis of that, they take a higher valuation. - Right.
All of this gets checked later on.
That is why in diligence, the success ratio...
There is a chance of failure.
Hence, I request all the entrepreneurs
that when they give out information on Shark Tank,
- be very careful. - Yes.
- Ensure it is authentic. - Yes.
Say what is true.
No need to hype up figures. Just give a caveat.
"We think the market size is Rs. 2,000 crores,"
- "but we're not sure." - Sure.
If you say 2,000 crores, someone will invest on the basis of that.
Later, you have left a point open and will be caught during diligence.
Exactly. Were you aware of this? You weren't, right?
This is why I ask you to watch Ask The Shark.
My questions are good too. Hear them out.
Okay? Stay tuned.