[music playing]
[theme music playing]
[music fades]
Hi, Sharks. I am Richa and I'm 32 years old.
I'm Vani.
Richa and I have been through many phases in the past few years.
Teenage and motherhood.
We also witnessed many changes,
but teens saw the most change thanks to social media.
The age from eight years to early adulthood
is quite a sensitive phase.
Girls experience a lot of changes.
Emotional as well as hormonal changes.
- Their bodies undergo constant change. - That's right.
During this stage, they need acceptance and confidence.
Hmm.
Innerwear has an important part to play
in that acceptance and confidence.
And so, we present to you D'chica.
[music playing]
D'chica is an innerwear brand
And that is why,
today, we're not just their favourites,
but that of their moms too.
We want to make D'chica
the BFF of every teenage girl and young woman.
- Thank you. - Thank you.
- She's my brother's wife and is younger than me. - Oh.
We started a business together in 2014.
We ended up burning our fingers badly.
- What was it into? - Kids wear.
- We lost Rs. 70 lakhs. - Okay.
- Yours or had you raised it? - Ours, we hadn't raised money.
- Oh! - We call it an expensive B-school!
- I see. - [laughter]
That's a good way...
- I loved it. - A good way to look at it.
By 2018, we'd realised that this is not going to work.
So, we were thinking what to do next.
We tried to find the market gap
and were always in survey mode.
Back in 2018-19, if we looked up Amazon or others
for youth bras or innerwear for girls,
we'd see middle-aged ladies modelling innerwear.
If I were a mother,
I wouldn't find it right to buy that for my daughter.
If were a teen, I wouldn't connect with it.
It's boring. Why should I wear what a middle-aged woman is wearing?
So, we knew the gap existed.
We launched our first innerwear collection in 2020.
- I come from a media background. - Okay.
I studied Journalism from LSR, Delhi.
Do you do the manufacturing yourself
or have you given a contract to someone for it?
We currently have five manufacturing units
which we operate out of.
That's the whole thing.
The competition is a big white space.
People treat this as a category extension.
Which is the biggest brand?
- Jockey is the biggest brand. - Jockey.
Miss Jockey has eight to nine styles mostly.
- I could show you our products. - Please.
[light-hearted music playing]
Thank you.
This is a normal cotton panty.
Very good feel to the fabric.
- Good. Soft cotton. - Almost 100% cotton.
Combed cotton.
- There's a bit of Lycra for stretchability. - Yes.
- Otherwise, it's fantastic. - Yes.
- 95 and 5. - You haven't used polyester.
You have not retained hooks in this.
None of our products have hooks.
- So that it's easier to wear. - Yes.
- Less stressful. - They poke you.
- Right. - We still remember.
Our first experience wasn't comfortable.
Also, this is a common problem in women's innerwear.
You had to choose from a few sports bras
or cupped bras
with problems in sizing and discomfort.
Richa has developed silhouettes that are stretchable.
Dr. Garima is a new angle.
- No? - Dr. Garima is a consulting gynaecologist with us.
This is something new.
Yes, we do it for community building.
where they used to ask not only about the product
but very personal questions
which they probably couldn't have asked their families or others.
Who's the CEO among you?
We haven't filled in the designation of the CEO yet.
- I take all the... - Why not?
We lacked scale although we're looking at it.
We recently pulled in my brother for fulfilment.
- Once he's ready in a few months... - Your husband.
I'll take on the CEO's role
- [laughter] - So, 25 crores...
We got Rs. 25 crores pre-money back then.
Our burn last month was Rs. 10 lakhs,
No, it's more than that.
- Let me tell you everything. - [laughter]
Don't you think this team is too big for your size?
This team is big
It's going to 120 days right now
Let me tell you this, Vani.
If you've burnt Rs. 2.8 crores last year,
I could give you...
- Listen to her. - What you're not factoring is
that you'll have a 20% return...
Rs. 97 lakhs is net of returns.
- That hasn't come in yet. - I...
When you're operating at 120 days of credit,
it's as good as returns.
On average, my offline return rate
- is broadly 30%. - Okay, listen!
- You... - It doesn't work like that, Vani and Richa.
Right before the financial year, so many of the goods are sent back
that all your previous numbers go for a toss.
- For the full year. - We've already done that because we...
- We appreciate that. - Please go on.
If at Rs. 10 crore sales, you're at -2.8 crores,
bringing any business from -20% to 0% in six months
without severely impacting business...
I can give you the math too.
There's optimism in the math is what I'm telling you...
- No, it's not... - We can end this conversation
and we can go back to Aman.
Oh! You don't think it's catchy.
Wasn't just Chica good?
- It's not... - We didn't find it catchy enough.
Bro, I think he's right.
Chica is a fantastic name for you
that is, if it's not taken in India.
Your logo is also quite loud.
- Gen Alpha is moving towards clean from loud. - Yes.
It's working so far. The kids are liking...
I shouldn't use kids. It's a non-brand word.
- Teens are liking it. - The thing about kids is
that eleven-year-olds don't think of themselves as kids.
They'll think of your logo as childish.
So, what happened was
we actually showed this logo to 50 different teams.
It had a few versions.
On the basis of that, this logo had the most acceptance.
We also liked it.
- A 15-year-old wouldn't find this childish. - Not at all.
So, Vani and Richa, unfortunately...
I want to be in,
but I don't think I'll get my money back.
- Ugh... - [laughter]
No, you will. I'll give you some more figures.
- You'll be convinced. - You...
- I'm not convinced about you, sorry. - Oh!
I believe you and I won't be able to work together if we collaborate.
So, unfortunately, I'll have to be out.
I would have loved it had you been in
because my daughter really likes you.
- I'd like your autograph. - Ah!
She bought a pair of boAt headphones
because it's Aman Gupta's company.
That's good. Do buy more headphones.
No, but thank you so much.
Don't stop buying headphones just because I'm out.
[all laugh]
- Vani and Richa. - Hmm.
The communication dynamic is just so odd.
I'm not able to put my finger on it.
Okay.
You talk a lot and don't listen.
Is that a normal thing for you?
You tell us, Richa.
I think she's very confident with her numbers.
We feel we're doing it right. We just want to explain it to you.
I understand, but do you understand one thing?
You already have offers.
- You have soft commitments. - Yes.
Why are you here then?
We would get your inputs.
For that, you need to listen.
You believe that we possess a certain experience
- that might accelerate your journey. - Definitely.
Let me give you an example.
I wanted to say it earlier also but you didn't give me the chance.
The games you're playing in terms of inventory and distribution,
you're going to have a huge problem before the end of this year
when your goods come back to you
and your numbers will not make sense, right?
You have to be open to understanding.
You just do not wish to accept it.
I don't see that spark right now, so I'm out.
Good luck.
[tense music playing]
Look. I always have this dilemma in Shark Tank.
The categories I'm not interested in have really amazing founders
and I get excited.
Today, it's the opposite. I really like this category
but I don't quite understand the founders.
- What don't you understand? - Our ability to work together.
- "What don't you understand?" - You don't listen.
- You know, you... - I listen.
I mean, we can do this together or as you wish.
What about you, Namita?
[pensive music playing]
Let's go aside and talk.
What's the unorganised and organised market size?
and teenage girls is 12 crores.
So, if their population is 20%...
If we take a conservative estimate of 10%,
What's their sale in this category?
- Miss Jockey's. - We couldn't get their sales
because their numbers weren't clear anywhere online.
What are Jockey's sales on Amazon as well as yours?
That'll give us an idea.
Today, I am out,
- but I wish you all the best with the other Sharks. - Thank you.
Vineeta and I are giving you an offer.
[joyous music playing]
What we like about your business is the category.
You're also focusing on education.
I think that's fabulous. Much needed.
There are a lot of things that we don't like, right?
Number one, inventory management.
because I don't listen either.
I talk a lot.
- That's great. - That to me is not a problem.
Please invite me to that board meeting.
- That will make me... - Who will listen?
[all laugh]
So, what we'd like to give you is
Rs. 80 lakhs for 2.5% equity
which comes to about Rs. 32 crores.
And royalty at 1% given that you're breaking even...
You've given a lot of information very honestly.
Nobody comes here
and gives the offline tertiary data willingly.
It just shows that you have too much enthusiasm,
but you're honest and you don't lie.
So, Namita, we had raised
- We're willing to do Rs 80 lakhs for 2% equity... 80 lakhs
Which by the way, is very generous
given your offline dynamics,
We'll help you. I think this is a fabulous...
Vani, what's your daughter's name?
Devyani.
- I'll just write... - Oh! Thank you so much.
Only she can open it.
- Aw! - Aw!
- Just give it to her. - What a sweet guy.
Thank you so much. She will love it.
- Thank you. - All the best.
[joyous music playing]
[music fades]
[theme music playing]
[music fades]
Hi, Sharks.
I'm a new smartphone. People queue up to buy me.
I'm in high demand.
It's the same with me.
- Liar! - [laughs]
How are you the same?
You're a second-hand phone.
Hey, I'm no second-hand or old device.
I'm a refurbished device.
Just as old houses are renovated,
I, too, am fully renovated.
Scram! No one will believe you.
Guess what? I come with a warranty.
- Really? - That's not all.
I'm quite affordable.
You won't have to sell a kidney to buy me!
- Is that so? - Yes.
Then you're the same.
[music fades]
Greetings, Sharks. I'm Avneet.
We're from Delhi
and we furbish old phones
he gives his old phone in exchange.
We procure these exchanged phones
from big platforms like Amazon, Flipkart
we've recently launched
It has very few branded players.
Our vision is
to become a one-stop destination
for consumers in the refurbished market
for every refurbished product.
So, our ask is
This is available everywhere.
People refurbish old phones and then sell them.
What sets you apart from everyone else?
with its authentic parts.
We conduct a dual test on it before running an app.
We run a test when we receive the phone in a certain condition.
We test it once again once it is repaired.
But there are more businesses like yours.
- Cashify! - Cashify!
You said 1.5 million, right?
- 1.5 million phones. - 1.5 million phones.
When it comes to phones,
how many have Cashify sold?
In terms of number, they are three times more.
It makes them larger in size.
- Right! - What is the difference between them and you?
In the beginning,
our sole focus was entirely on offline operations.
There are no competitors in the market
at the scale at which we operate within the offline channels.
As of now, this overall industry is worth ¤5 million.
This entire industry is growing at 19%.
How much is the total electronics industry?
It should be around ¤25 to ¤30 billion.
The smartphone sector is valued at ¤25 billion.
This is based on reports that were published three years ago.
- You are saying it has compounded. - Yes.
Let's get to the point.
What is the magic behind the valuation of Rs. 400 crores?
Tell us about your sales.
What is B2R? Please elaborate.
- Business to retailer. - Offline.
- Business to retailer. - We sell it at retail stores.
- Is there a distributor, or do you sell them directly? - Directly!
How much business did you generate last month?
Your PAT amounted to Rs. 2 crores
on a sale of Rs. 170 crores.
The profit was approximately 1.5%.
- Yes, around 1.6%. - Okay.
EBITDA...
EBITDA was 1.67%.
Hold on!
- Your last year's sale was Rs. 187 crores. - Correct.
How much was the profit?
- 1.0... - In value.
We made a profit of around Rs. 3.5 to Rs. 4 Crores.
- Around Rs. 3.5 to Rs. 4 Crores... - After discounts.
The number doesn't add up.
[tense music playing]
We are receiving varying figures.
The PAT must not exceed Rs. 2 crores.
What was the EBITDA value, not in terms of percentage?
I will have to calculate the value.
1.67% of 187.
- It should be around Rs. 2.7 crores. - Yes.
Didn't you take a loan?
- We took a loan. - Then, EBITDA to PAT cannot be so low.
[tense music playing]
After EBITDA comes your interest cost.
You pay tax to the government.
The depreciation comes into it.
- The balance sheets... - The numbers seem wrong.
Why is there so much confusion
with numbers?
Converting in percentage...
You should have a good idea
of the sales and earnings your business generated last year.
I am out.
Whenever an entrepreneur comes to pitch,
it is important to know the numbers.
There are a lot of numbers.
When we asked about industry numbers, you got confused.
Then I asked for the number of sales, but you were unsure.
Even when I asked about profit. You are confused with numbers.
If you had been prepared better,
I would have felt more confident to find out more.
Let me tell you where I have an issue.
Ensure that you clearly explain the distinction between repairing
and refurbishing to your customers
and investors
in a straightforward manner. There was a lot of confusion.
Second, as Aman said,
financials should be on top of your mind.
EBITDA and PAT
are basic numbers. You should memorise them.
And for these reasons, I am out.
I have a couple of questions.
You said that this market is around ¤2.5 to ¤3 billion.
- Okay? - They said ¤5 billion.
Rs. 40 thousand crores.
Okay? Refurbish, not repair.
- Refurbish, yes. - Refurbish!
Two of the biggest players.
Their total business is Rs. 1000 crores.
Let's say Rs. 1500 crores.
Where did Rs. 38,000 crores go?
Anupam, like you said
small channels... As we said at the beginning
- the market is unorganised. - More than 80% of the market
is still unorganised.
It is 90%, not 50%.
That is what I said. More than 80% to 90% market is unorganised.
How many players do you think will survive till the end?
[suspenseful music playing]
What we believe is that seven or ten years down the line,
- the big brands will enter the refurbished industry. -Yes.
They will refurbish their phones
- and sell them. - Will your business cease or will you sell it?
No, that is not how it is.
Until then, if we add value
- in 10 years... - We might refurbish for them.
How big is your next biggest competitor?
Around Rs. 80 to 85 crores.
- Clearly! - Do you think ReFit
will focus on other gadgets too
or will you only deal with phones?
As of now, we want to concentrate on phones, Vineeta.
- So, first... - What will happen in five years?
After five years, we will continue to grow
and establish trust and make it a one-stop destination in the future.
- But for now... - Do you mean one place for other gadgets?
We will be focused on mobile phones for now.
How much loan did you take?
that you know the numbers. I think you're a little confused.
- Right? - Yes, sir. - I have an offer for you.
[suspenseful music playing]
Listen to me carefully. There are a couple of conditions.
Amit, I want you to listen to this too.
- Why me? - Why Amit?
- There is a condition with Amit in it. - The offer is for them.
- Amit is involved in the condition. - Okay, Amit.
First of all, if Amit joins me...
Because he has experience. Of course, not with phones.
But understands refurbishing cars
and what goes into it. The concept is similar.
So, if he joins me, we will give you your ask of Rs. 2 crores.
But I will take Rs. 100 as royalty on every phone.
[tense music playing]
That's not much.
You said you sell a phone for Rs. 7,000.
A royalty of Rs. 100 is not much.
It's 1.50%.
Until we make two times the money.
Okay? Once it's Rs. 4 crores,
you are off the hook on royalty.
After that,
we will take 1% equity in your business.
0.5% for each of us.
Okay! I will join Anupam's deal.
But with a 14% gross margin...
Forget net margin.
It is difficult to create a brand with a 14% gross margin.
Having said that, this is a sweet deal.
Sweet for whom?
For the Sharks.
I'll stick with the deal
Anupam and Amit agreed on.
1.50% royalty
on your annual sales
until Rs. 4 crores is recouped
from the initial Rs. 2 crores that I give you.
That is 2x returns.
And the equity you asked for, which is 0.5%.
She took our deal and gave you a discount.
[tense music playing]
0.5% equity
is Rs. 400 crores. I gave you a better deal of Rs. 400 crores.
There is a reason why I said 'if Amit would join us'.
Because he has expertise in this area.
But you will have to go to Jaipur for his expertise.
[suspenseful music playing]
Is there any alternative
to royalty that we can consider?
Tell me! You can make a counteroffer.
Just give us two minutes.
- We would like to discuss. - Come back with a counteroffer.
[suspenseful music playing]
Sharks, we have a counteroffer.
For whom?
- For all three of you. - Three of us? Okay.
Please tell us.
Skip the royalty.
and take Rs. 1 crore as equity
- for 0.5%. - 0.5%.
I also have a counteroffer.
If Anupam agrees to it.
We said we want Rs. 100 as royalty for each phone sold.
Make it Rs. 70 royalty per phone.
But you don't want to give royalty.
- We don't. - Why not?
- Are you businessmen? - We are.
You are getting Rs. 2 crores.
You mentioned that you are currently paying
a 15% interest rate in the market.
- But... - Hold on.
This boils down to what Aman said.
I don't think you understand business.
[tense music playing]
If you withdraw Rs. 2 crores from the market,
please explain how much is 15% interest on Rs. 2 crores.
- Rs. 30 lakhs. - Rs. 30 lakhs.
We asked for Rs. 70.
Considering Rs. 70 per phone,
based on your current scale, you will pay
less than Rs. 25 lakhs.
That too only if you are selling that many phones.
If you sell fewer phones, you will pay less.
But if you take a loan of Rs. 2 crores,
- you have to pay a fixed amount each month. - No!
- Our loans... - There is a difference.
You said we need to pay royalties until it reaches Rs. 4 crores.
- If I take a loan... - When you add interest and the principal amount,
it ends up being Rs. 4 crores. Please calculate.
How are you here to give equity
if you don't want your investors to make 2x?
Right now, none of us will make a deal without royalty.
And I think that is your cutoff.
So, we don't have a deal today.
Apologies, Sharks. We're not interested in offering royalties.
We don't have a deal without royalty.
So, thank you so much for coming to Shark Tank.
Where is the issue? In doubling the money,
or percentage?
- What is the issue? - I think there's an issue with their mindset.
- What is the problem? - This is a no-brainer for you.
If I figure out what's wrong, I'll fix it. What is the problem?
There are two things.
- You don't want to pay Rs. 4 crores, right? - Yes.
Also, the amount is...
I will give you another option. Let's see what Anupam has to say.
Instead of Rs. 4 crores, reduce the amount to Rs. 3 crores.
Even if you pay Rs. 30 lakhs in interest,
Rs. 1 crore is paid as interest in three years.
- I am okay with Rs. 3 crores. - What about equity?
- Okay! - If all three of us are in.
Yeah! Maybe all three can join.
Our offer is Rs. 2 crores
for 1% royalty of your sales,
plus 1% equity for all three.
Amit, Vineeta, and I will be part of this deal.
- Thank you! - Congratulations!
Thank you, sir!
[uplifting music playing]
[camera clicks]
[theme music playing]
- Hello, Sharks! - Hello! - Hi!
Why is it so bright here?
Shall we dim the lights?
Oh!
And follow me.
Place your hand on your heart, like this.
Take a deep breath.
And look towards the ceiling.
Picture your lover's face on the ceiling.
And that lover shouldn't be the one you married.
[laughing]
Say 'wow' three times after me.
- Wow! - Wow!
Close your eyes.
Exhale and relax.
Thank you
for welcoming me
with a 'wow!'
- Are you here to pitch or tear our family apart? - Exactly!
I have arrived to disrupt the world of Botox and fillers
with my own natural skincare solutions.
People refer to me as the Face Yoga Queen of India.
Because my techniques will definitely get all of us seen.
[theme music playing]
Our skin solutions are natural,
To help my holistic vision grow,
my ask is
Rs. 1.5 crores for 5% equity.
[music fades]
Vibhuti, welcome to Shark Tank Season 3.
Thank you.
Very confident pitch.
It seems like you've been doing this for many years.
Sir, I've been doing face yoga for ten years.
- I did not always look the way I did. - Seriously?
In 2014, I got to know
that I have an autoimmune skin condition
Is that you?
- Yes, absolutely. - All four?
Yes, that's right!
- My God! - Really?
You've also lost weight.
I'm a Ministry of AYUSH-certified Yoga Teacher and Evaluator, sir.
Oh, I see.
I follow a lot of yoga.
There are tons of face yoga videos online.
Why do we need to take your classes?
What different will you be teaching us?
Namita, the videos you watch on Face Yoga online,
90% of them are certified by me.
I created an institute
Is yoga your sole focus
or also the serums and oils over there?
To do face yoga,
serums and oils are really necessary.
If you do face yoga without oils,
you might stretch or pull your skin.
Other than that, we also do face yoga facials
in my Delhi centre.
Is that centre a salon?
- No, sir. It's a wellness centre in New Delhi. - Oh, okay.
The signature is one of my massages.
I've named it... It's a copyright massage
which I've named Vibhuti.
Could you show us your products?
[music playing]
So, I'm going to offer you
my double chin corrector.
- The first product. - I don't have it.
- I know! - Give it to them.
He didn't.
"I have the perfect jawline!"
- Anupam, for you... - Yes.
- My favourite hair perfume. - Oh! Hair...
[music playing]
The products have a sticker on them
and even the ingredients are not mentioned.
Do you follow the FDA registration process?
We are FDA-certified and CE-certified.
My feedback is
that the packaging of your skin care products
is extremely disappointing
- compared to everything else around the brand. - I understand.
This is my celebrity-favourite tool.
If you twist the bottom,
it will produce 6,000 microvibrations per minute.
[massager whirring]
You start by placing the massager
on the first point right below the eye.
Let the microvibrations get absorbed.
The maximum puffiness point lies just below the eye.
That's where you press down.
Then, press down on your temples.
Swipe in this manner.
Lift, and then, drain.
[light-hearted music playing]
I did the technique a few times.
It caused a tingling and a fresh sensation here.
I can feel it.
- Thank you. - So, it's definitely working.
Is this your own company? Are there any other investors?
It is 100% owned by me.
[Sharks chuckle]
Vibhuti, you have two revenue models.
- Three. - One... Okay.
One is Face Yoga
While it is good in the long term,
in the short term, you will lose even this business
if you maintain focus on that.
I knew you'd ask me this question.
This was a strategic call for us last year.
We had to decide whether to invest in marketing
or our physical space.
Because I am selling an experience
and not just education about face yoga,
we took that call internally.
I am not in this for the short term.
If I were, like every D2C brand,
I'd have been spending on marketing and playing the volume game.
I am here for the long term.
I want to build a long-term sustainable business.
A lot of energy goes into the wellness centres as well
and that is why I am adding it and stitching it together.
but products are your bread and butter.
How are they different?
I would say I am the biggest differentiator.
No. A person can't be the differentiator.
What is unique about your products?
- The ingredients are. - What are they?
Retinol causes photosensitivity in people
So, my collagen creams, in order to make them affordable,
we use organic revinage as well as bakuchiol oil.
Are you the only one in India who uses revinage?
I am the only one right now.
- The only one! - Yes.
What percent of your sales is that product?
as an alternative to retinol,
and you have the first mover advantage
and you're the only one in India doing this,
then why only Rs. 25 lakhs sales?
It should've killed the market.
This has sown a seed of doubt in my mind.
Do you even have a differentiator or not?
If you really did,
your product would've had more than Rs. 25 lakhs sales.
For that reason, I am out today.
Thank you.
I think we all want to understand.
Tell us your organic sales versus paid sales,
and your repeat rate.
That will help us gauge whether your product is stellar.
And our clients' stickiness
or cohort is about 30% overall,
- and 30% in a lifetime. Right? - Yes.
- Okay. - So, skincare brands such as face washes
have an M1 of 10-12%,
which is month one's repeat customers.
And 12... Lifetime should be over 60%
people start using it on a regular basis.
- I... - The numbers rise quickly.
I didn't read the numbers.
Had I known, I would have!
What was last month's profit?
Last month's sales were Rs. 40 lakhs.
Tell us your unit economics.
- We will know how good your numbers are. - Sure.
My product cost is 30%
From the logo and packaging to the ingredients.
Please work on that and you shall be more investable.
Best of luck, I'm out.
For now, I am out
because I feel that your businesses..
You're taking it in two directions.
If it becomes a pure play D2C within a year or two...
I'm not really interested in the services business.
When this heads in the direction of D2C and picks up scale,
then probably you should come back in Season 4.
For now, unfortunately, I'm out.
You were very confident.
You handled everyone's questions well.
I wasn't convinced how the product was ten times better.
I want to invest in companies where I feel
they're not just a marketing company but have a solid product.
That's where I probably missed the link.
So, I am out. All the best.
Thank you.
I don't think you can grow this business
by focusing on services and franchising.
You need to bring the focus back on the product.
I'm out for that reason.
Thank you so much.
Joining us on Ask The Shark today
- Welcome, sir. - Thank you, Rahul.
Sir, looking dashing as always.
Thank you so much and you're looking dashing too.
As always, sir.
Today's question is by Ravinder Singh from Bhopal.
Suppose people try your product and they like it,
they become repeats without you having spent on marketing.
Then you have to do brand investing first.
So, a burn can be of different types.
- If you see, I always ask for the unit economics. - Yes.
It is to gauge where the burn is
and whether the business is sustainable or not.
If the market is big and the product is good,
then the business will make its mark.