1 00:00:10,000 --> 00:00:11,560 [music playing] 2 00:00:29,800 --> 00:00:31,440 [theme music playing] 3 00:00:48,920 --> 00:00:50,360 [music fades] 4 00:00:50,760 --> 00:00:53,080 Hi, Sharks. My name is Aarti Laxman. 5 00:00:59,280 --> 00:01:03,400 and today, our ask is Rs. 50 lakhs for 1.75% equity. 6 00:01:03,520 --> 00:01:04,600 Hmm, very specific. 7 00:01:07,080 --> 00:01:08,520 for three generations, 8 00:01:19,720 --> 00:01:22,120 and came up with Artinci. 9 00:01:23,600 --> 00:01:26,920 At Artinci, we offer ice creams, Indian sweets, 10 00:01:27,000 --> 00:01:28,280 cookies as well as cakes 11 00:01:32,440 --> 00:01:33,720 All these products 12 00:01:37,400 --> 00:01:39,640 and also low glycaemic index certified. 13 00:01:39,720 --> 00:01:40,920 Artinci has helped us 14 00:01:41,080 --> 00:01:44,120 spread happiness to over 50,000 people. 15 00:01:44,200 --> 00:01:46,680 Customers can buy our products on our website 16 00:01:46,800 --> 00:01:49,080 and other marketplaces. 17 00:01:49,160 --> 00:01:50,640 With the help of Artinci, 18 00:01:50,840 --> 00:01:52,800 we wish to provide every diabetic, prediabetic 19 00:01:52,920 --> 00:01:54,720 and health-conscious person 20 00:01:54,840 --> 00:01:58,160 the joy of eating guilt-free sweets again 21 00:01:58,440 --> 00:02:00,600 without jeopardising their health. 22 00:02:00,680 --> 00:02:01,840 So, Sharks, 23 00:02:02,080 --> 00:02:05,600 you too can gorge on guilt-free sweets with Artinci. 24 00:02:37,440 --> 00:02:39,160 - What's this? Ice cream? - Yes. 25 00:02:39,920 --> 00:02:40,760 Okay. 26 00:02:45,680 --> 00:02:47,320 [pleasant music playing] 27 00:02:54,480 --> 00:02:55,720 Yes. I'm going to get it. 28 00:02:55,800 --> 00:02:57,920 Sugar-free items have an aftertaste. 29 00:02:58,000 --> 00:03:00,440 This tastes like it has got sugar. 30 00:03:01,720 --> 00:03:03,080 Could I eat the coconut one? 31 00:03:03,200 --> 00:03:05,280 - No, that contains dairy. - It does! 32 00:03:05,560 --> 00:03:07,360 [pleasant music playing] 33 00:03:13,760 --> 00:03:15,400 Do you have a special sweetener? 34 00:03:21,560 --> 00:03:23,720 to prepare this ice cream sweetener. 35 00:03:50,560 --> 00:03:51,920 A different sweetener for bakery items. 36 00:03:52,000 --> 00:03:53,960 The 'mithai' and ice cream are yum. 37 00:03:54,040 --> 00:03:55,200 The cookie isn't great. 38 00:03:55,800 --> 00:03:58,320 Even the cheesecake is a bit... I've had better. 39 00:03:58,440 --> 00:04:01,320 - I'm getting that aftertaste that stevia... - Me too. 40 00:04:01,440 --> 00:04:04,840 - The Kaju Katli has a balance... - No. The ice cream has it too. 41 00:04:04,960 --> 00:04:06,280 - Right? - Yes. 42 00:04:06,400 --> 00:04:09,120 What were you doing before selling ice cream? 43 00:04:09,240 --> 00:04:11,240 Tell us about your educational background 44 00:04:37,120 --> 00:04:39,280 I started Artinci after that. 45 00:04:48,960 --> 00:04:49,760 2001. 46 00:05:41,040 --> 00:05:43,400 - Okay. - I was born in Delhi 6 also called Chandni Chowk. 47 00:05:43,520 --> 00:05:45,520 Consuming desserts runs in our veins. 48 00:05:45,600 --> 00:05:46,400 [soft chuckle] 49 00:05:46,480 --> 00:05:48,240 I moved to Mumbai in 1999. 50 00:05:48,320 --> 00:05:49,960 I studied MBA from KJ Somaiya College. 51 00:05:53,480 --> 00:05:54,720 I worked with Ipsos. 52 00:05:54,800 --> 00:05:57,240 Later, I got an opportunity to work with Nielsen in Dubai. 53 00:05:57,320 --> 00:05:59,440 So, I went there to Dubai for three and a half years. 54 00:05:59,560 --> 00:06:01,760 - Did she go with you to Dubai? - Yes. 55 00:06:01,840 --> 00:06:04,320 That's where she picked up all the baking and cooking. 56 00:06:04,440 --> 00:06:05,640 - Ah! - Those interests. 57 00:06:05,760 --> 00:06:08,280 Isn't the name Artinci a little... 58 00:06:08,360 --> 00:06:09,640 - It's named after Aarti. - Aarti. 59 00:06:09,720 --> 00:06:11,280 - The name? Artinci? - Artinci. 60 00:06:11,560 --> 00:06:16,160 The name Artinci, because desserts are an art with a science to them. 61 00:06:16,240 --> 00:06:17,920 Just as Leonardo da Vinci 62 00:06:18,000 --> 00:06:19,840 - was the master scientist and artist. - Oh! 63 00:06:19,920 --> 00:06:21,440 Art plus da Vinci. 64 00:06:26,000 --> 00:06:27,320 Wow! 65 00:06:31,040 --> 00:06:31,880 - Wow! - Wow! 66 00:06:52,680 --> 00:06:54,120 That cleared my head. 67 00:06:55,040 --> 00:06:57,160 Which was your first product? 68 00:06:57,240 --> 00:06:58,800 Ice cream was our first product. 69 00:06:59,000 --> 00:07:00,840 Sugar-free ice creams have been around for a long time. 70 00:07:04,200 --> 00:07:06,360 - You're testing for spikes! - Yes. 71 00:07:06,480 --> 00:07:07,840 Won't your ice cream cause a spike in sugar levels? 72 00:07:07,920 --> 00:07:09,120 No, 100%. 73 00:07:11,400 --> 00:07:12,880 So, my HbA1c is still 5.5%. 74 00:07:13,000 --> 00:07:15,320 Aarti's was 5.5. She reversed it to 5 now. 75 00:07:15,400 --> 00:07:17,080 Do you always track it? 76 00:07:17,240 --> 00:07:19,560 We've been tracking it for the last 3 to 4 months 77 00:07:19,640 --> 00:07:22,440 primarily because we were testing our products on ourselves. 78 00:07:22,520 --> 00:07:24,200 - Do you have the patch? - Both of us do. 79 00:07:24,280 --> 00:07:25,280 Could you show us the charts? 80 00:07:25,360 --> 00:07:26,800 - That's a very important point. - Yes. 81 00:07:27,560 --> 00:07:30,960 This is a comparison between two pieces of regular 'gulab jamun' 82 00:07:36,640 --> 00:07:38,400 - You've eaten something. - Right. 83 00:07:38,520 --> 00:07:42,840 - Your sugar spiked to above-normal levels. - Right. 84 00:07:42,920 --> 00:07:45,120 And over here, we see, you probably ate here, 85 00:07:45,240 --> 00:07:46,760 but the sugar did not spike. 86 00:07:46,840 --> 00:07:49,800 Right. A sugar spike is not caused only by sugar. 87 00:07:49,880 --> 00:07:51,520 - Okay. - It's essentially carbs. 88 00:07:51,640 --> 00:07:53,240 How do you eliminate the carbs? 89 00:07:53,320 --> 00:07:54,880 So, we first took out refined flour. 90 00:07:54,960 --> 00:07:58,200 Even the size of the 'gulab jamun' is calculated. 91 00:07:58,320 --> 00:07:59,120 Interesting. 92 00:07:59,280 --> 00:08:01,920 Would there be a difference if I compared the calories, 93 00:08:02,000 --> 00:08:03,400 or is the difference only in the GI? 94 00:08:25,640 --> 00:08:28,120 We have a centralised manufacturing facility in Bengaluru. 95 00:08:28,200 --> 00:08:29,520 What is its capacity? 96 00:08:40,280 --> 00:08:41,200 Net sales. 97 00:08:41,280 --> 00:08:43,960 - Okay. - The previous month we did Rs. 37 lakhs. 98 00:08:44,040 --> 00:08:46,760 Before that, we did around Rs. 34 lakhs. 99 00:08:46,920 --> 00:08:49,280 The previous year, we did Rs. 4.4 crores. 100 00:09:19,200 --> 00:09:20,440 Between us and the family, 101 00:09:20,560 --> 00:09:22,800 - we have invested almost Rs. 4 crores. - Wow. 102 00:09:22,880 --> 00:09:25,320 Is the equity with you two only or some other members of the family? 103 00:09:25,440 --> 00:09:26,360 The equity is with us. 104 00:09:26,480 --> 00:09:28,600 We own 72% of the equity of the company. 105 00:09:28,720 --> 00:09:30,000 Then you have done a round. 106 00:09:30,080 --> 00:09:32,120 The previous round took place last year 107 00:09:32,280 --> 00:09:33,880 with The Chennai Angels and LetsVenture. 108 00:09:33,960 --> 00:09:35,280 The total was Rs. 3.1 crores. 109 00:09:35,360 --> 00:09:38,040 The valuation post-money was Rs. 28.57 crores. 110 00:09:38,120 --> 00:09:40,160 Is it the same valuation you've asked for today? 111 00:09:40,280 --> 00:09:41,560 Yes, it's the same. 112 00:09:41,640 --> 00:09:43,520 What's the margin in the business? 113 00:09:43,600 --> 00:09:45,400 We've got a gross margin of 62% now. 114 00:09:45,480 --> 00:09:46,880 - How are you in a loss? - Yes. 115 00:09:46,960 --> 00:09:48,440 Where are you selling these goods 116 00:09:48,520 --> 00:09:50,240 and which channel is running into losses? 117 00:09:50,360 --> 00:09:52,840 So, we actually sell through the dark store network. 118 00:09:52,920 --> 00:09:55,480 We sell on Swiggy and Zomato and also on Amazon. 119 00:10:03,760 --> 00:10:04,640 so we pulled back. 120 00:10:04,760 --> 00:10:06,840 We ran dark stores. 121 00:10:13,080 --> 00:10:14,480 - which was completely unviable. - Oh! 122 00:10:14,640 --> 00:10:16,320 Didn't you work out the math? 123 00:10:16,440 --> 00:10:18,280 One plus one equals two. 124 00:10:18,360 --> 00:10:19,760 We did not do that very well. 125 00:10:19,840 --> 00:10:21,280 It's simple math. 126 00:10:21,360 --> 00:10:22,680 In hindsight, yes, it is. 127 00:10:22,800 --> 00:10:25,360 - You were selling at unit-level loss... - Correct. 128 00:10:25,480 --> 00:10:27,240 Which is senseless. 129 00:10:28,120 --> 00:10:29,440 You've corrected course now. 130 00:10:29,520 --> 00:10:30,680 Just to give you a sense. 131 00:10:30,840 --> 00:10:34,520 Our burn in November 2022 was Rs. 44 lakhs. 132 00:10:35,760 --> 00:10:38,320 we're at a loss of about Rs. 8 lakhs. 133 00:10:42,640 --> 00:10:44,320 It is now 62%. 134 00:11:05,960 --> 00:11:07,560 - Ouch. - Marketing is not the problem. 135 00:11:11,280 --> 00:11:12,320 So, I'll give you the shelf life. 136 00:11:12,440 --> 00:11:13,960 Cookies have a shelf life of 8 months. 137 00:11:14,040 --> 00:11:15,400 That of ice cream is 6 months. 138 00:11:22,880 --> 00:11:24,880 How much money is stuck in working capital as of now? 139 00:11:24,960 --> 00:11:27,000 - As of now, Rs. 6 to 7 lakhs. - That's it! 140 00:11:27,200 --> 00:11:28,720 - Then that's not a problem. - Why do you say it's a problem? 141 00:11:28,800 --> 00:11:30,400 No. The problem is 142 00:11:30,480 --> 00:11:32,640 because we only have inventory worth three weeks left. 143 00:11:32,720 --> 00:11:34,480 You must have some money left, right? 144 00:11:34,600 --> 00:11:35,440 Negligible. 145 00:11:35,520 --> 00:11:36,960 - How much? - Rs. 8 lakhs. 146 00:11:37,040 --> 00:11:39,200 - Rs. 8 lakhs in the bank! - You'll exhaust it by next month. 147 00:11:39,360 --> 00:11:40,920 - Exactly. - Huh? 148 00:11:41,000 --> 00:11:43,440 - You can't survive even until the funding. - How will you survive? 149 00:11:43,560 --> 00:11:46,320 So, we do have some soft commitments in the current round. 150 00:11:46,440 --> 00:11:49,680 Soft commitments only bring 8 months of cash in the bank. 151 00:11:50,040 --> 00:11:53,200 So, you have 8 months with a monthly salary of Rs. 8 lakhs 152 00:11:53,320 --> 00:11:55,400 and Rs. 8 lakhs left in the bank account. 153 00:11:55,720 --> 00:11:56,520 What's your plan? 154 00:11:56,600 --> 00:11:58,480 Our family has lent money to us. 155 00:11:58,560 --> 00:12:00,040 Okay, and you can take more. 156 00:12:00,120 --> 00:12:01,280 We can take a little more. 157 00:12:01,800 --> 00:12:02,880 What were you thinking? 158 00:12:02,960 --> 00:12:04,720 If you sold your product for a loss, 159 00:12:04,800 --> 00:12:06,760 - you'd ultimately run out of money. - Right. 160 00:12:06,840 --> 00:12:08,440 You must have had a plan. 161 00:12:08,560 --> 00:12:09,560 "Here's what I'll do." 162 00:12:09,640 --> 00:12:11,600 "I'll get some more cloud kitchens, and then what?" 163 00:12:11,760 --> 00:12:13,480 The plan that we had made 164 00:12:13,600 --> 00:12:14,880 had three channels. 165 00:12:14,960 --> 00:12:16,880 We didn't understand how Amazon worked at the time. 166 00:12:17,000 --> 00:12:18,720 The same problem was with the website too. 167 00:12:18,760 --> 00:12:21,880 We were not finding our way in performance marketing. 168 00:12:21,920 --> 00:12:23,840 So, we decided to go ahead with Swiggy and Zomato 169 00:12:23,920 --> 00:12:24,920 since we kind of understood it. 170 00:12:25,040 --> 00:12:27,000 That didn't happen to be a profitable channel, 171 00:12:27,080 --> 00:12:28,080 but a loss-making channel. 172 00:12:28,200 --> 00:12:30,480 So, our last year's revenue 173 00:12:30,600 --> 00:12:32,200 was 90% from Swiggy. 174 00:12:32,280 --> 00:12:33,680 This year, it is 60%. 175 00:12:33,760 --> 00:12:34,560 And the rest? 176 00:12:34,640 --> 00:12:37,040 The rest comes from Amazon and the website, 177 00:12:37,160 --> 00:12:38,800 and, Peyush, from B2B. 178 00:12:38,920 --> 00:12:42,280 I think fundamentally, your product is very solid. 179 00:12:42,360 --> 00:12:44,920 I tried your cake and I was shocked. 180 00:12:45,080 --> 00:12:46,960 I'll definitely be a consumer. 181 00:12:47,040 --> 00:12:48,520 Today, I am out. 182 00:12:49,600 --> 00:12:50,680 I think 183 00:12:50,880 --> 00:12:53,600 that right now, you need to find a path. 184 00:12:53,680 --> 00:12:54,680 In B2B, 185 00:12:54,880 --> 00:12:56,680 - you can make a lot of money. - You're right. 186 00:12:56,760 --> 00:12:59,000 I'll give you an example of HealthifyMe. 187 00:12:59,200 --> 00:13:00,720 They have consultants working with them 188 00:13:00,880 --> 00:13:03,080 and their consultants can actually recommend your product. 189 00:13:03,200 --> 00:13:04,680 You can do a tie-up with them. 190 00:13:05,040 --> 00:13:07,760 Right now that you've entered B2C, 191 00:13:07,840 --> 00:13:09,200 this is a brand-building game. 192 00:13:09,280 --> 00:13:10,640 That's slightly weak now. 193 00:13:10,720 --> 00:13:12,320 Good job, best of luck. 194 00:13:12,400 --> 00:13:13,720 I think you'll find your way. 195 00:13:15,120 --> 00:13:17,160 You're too much in love with your product. 196 00:13:17,480 --> 00:13:20,520 Focus a little on your product mix, batch size 197 00:13:20,880 --> 00:13:22,440 and what needs to be killed. 198 00:13:22,520 --> 00:13:24,680 Bring some depth to your products. 199 00:13:24,960 --> 00:13:27,360 It'll make your operations easier. 200 00:13:44,400 --> 00:13:45,840 when you're in trouble, 201 00:13:47,240 --> 00:13:48,560 - less is more. - Right. 202 00:13:48,720 --> 00:13:51,080 But today, I will not be able to invest. 203 00:13:51,160 --> 00:13:51,960 I'm out. 204 00:13:54,040 --> 00:13:56,280 Here's what I feel. Frankly, the products are okay. 205 00:13:56,360 --> 00:13:58,520 I believe from what I've seen so far, 206 00:13:58,760 --> 00:14:00,360 this is what I've gathered. 207 00:14:00,720 --> 00:14:03,880 Your business sense or commercial acumen 208 00:14:04,000 --> 00:14:05,080 is still very weak. 209 00:14:05,240 --> 00:14:06,720 I don't know what your brand is. 210 00:14:06,880 --> 00:14:08,560 You keep saying diabetes all the time, 211 00:14:08,640 --> 00:14:10,480 but never have you once said 212 00:14:10,600 --> 00:14:12,320 this is a dessert brand for diabetics. 213 00:14:12,720 --> 00:14:13,760 The second thing. 214 00:14:14,080 --> 00:14:17,120 You're building a brand on a very small scale. 215 00:14:17,200 --> 00:14:18,720 You have 4 to 6 categories. 216 00:14:18,840 --> 00:14:21,680 Cookies, ice creams, Indian sweets... 217 00:14:21,760 --> 00:14:23,880 The identity of Indian sweets is very different 218 00:14:24,000 --> 00:14:26,000 from an ice cream brand which is seen as Western. 219 00:14:26,480 --> 00:14:28,280 To try to create a brand, 220 00:14:28,360 --> 00:14:30,040 exotic-sounding Artinci, 221 00:14:30,160 --> 00:14:31,720 with all these different categories 222 00:14:31,840 --> 00:14:34,000 and limited capital taken from one's family, 223 00:14:34,160 --> 00:14:35,200 is impossible. 224 00:14:35,280 --> 00:14:37,280 You have to narrow down the surface area. 225 00:14:39,040 --> 00:14:41,160 Your circle of concern 226 00:14:41,320 --> 00:14:43,680 is way bigger than your circle of influence, 227 00:14:43,920 --> 00:14:45,360 and you are operating in that. 228 00:14:51,720 --> 00:14:52,800 Look, I am out 229 00:14:52,920 --> 00:14:56,040 because right now, you are kind of out of options. 230 00:14:56,120 --> 00:14:57,760 You have a fighting spirit. 231 00:14:58,000 --> 00:14:59,920 You ought to revive that fighting spirit. 232 00:15:00,040 --> 00:15:01,400 Go back to those basics, guys. 233 00:15:01,560 --> 00:15:02,880 Good luck and I'm rooting for you. 234 00:15:02,960 --> 00:15:03,880 Thank you, Anupam. 235 00:15:04,760 --> 00:15:08,240 I think what Cadbury tried to do in India 236 00:15:08,400 --> 00:15:13,360 was replacing Indian 'mithai' 237 00:15:13,440 --> 00:15:15,320 with chocolates during celebrations. 238 00:15:15,480 --> 00:15:18,080 'Mithai' is an inseparable part of Indian culture. 239 00:15:18,520 --> 00:15:22,400 And to make 'mithai' a healthier FMCG option 240 00:15:22,520 --> 00:15:25,400 led by diabetics 241 00:15:25,480 --> 00:15:27,040 is a huge opportunity! 242 00:15:27,120 --> 00:15:29,800 And everything else is a distraction. 243 00:15:30,920 --> 00:15:32,680 So, I will come... 244 00:15:33,160 --> 00:15:37,480 A, if you convert this into an FMCG 'mithai' brand 245 00:15:37,600 --> 00:15:39,240 which will sell on quick commerce platforms and online 246 00:15:39,360 --> 00:15:41,080 as well as retail channels. 247 00:15:41,200 --> 00:15:42,720 B, the branding. 248 00:15:47,680 --> 00:15:50,880 but India has not been able to relate to the name Artinci. 249 00:15:51,000 --> 00:15:52,080 [tense music playing] 250 00:15:52,320 --> 00:15:55,560 What cheap packaging and what a premium name! 251 00:15:55,640 --> 00:15:58,040 You're out to sell an ice cream that costs Rs. 199. 252 00:15:58,120 --> 00:15:59,680 With this kind of packaging, 253 00:15:59,760 --> 00:16:02,800 the consumer will be clueless about your brand. 254 00:16:03,920 --> 00:16:05,040 I can help you with that. 255 00:16:14,440 --> 00:16:15,840 I will not do the same. 256 00:16:15,920 --> 00:16:19,000 I will not repeat what Vineeta did by making you an offer. 257 00:16:19,080 --> 00:16:21,760 I am out, unfortunately. All the best. Have fun. 258 00:16:21,920 --> 00:16:22,760 Thank you, Aman. 259 00:16:23,680 --> 00:16:25,000 Guys, important decision. 260 00:16:25,080 --> 00:16:26,720 - We would like to make a counter-offer. - Tell me. 261 00:16:26,800 --> 00:16:29,200 Rs. 50 lakhs for 5% equity 262 00:16:29,560 --> 00:16:32,880 and we can give you a royalty of 1%... 263 00:16:37,560 --> 00:16:39,560 Please specify until what amount is recouped too. 264 00:16:39,640 --> 00:16:41,240 Up to 3x for sure. 265 00:16:41,320 --> 00:16:42,560 No. One and a half times. 266 00:16:42,640 --> 00:16:44,400 Yes. You were saying 1.5%... 267 00:16:44,480 --> 00:16:47,840 Till I make one and a half times, I'll take 1% of net revenue. 268 00:17:09,640 --> 00:17:11,160 'A percent or four lower or higher doesn't matter that much.' 269 00:17:11,400 --> 00:17:13,440 'Growing this company in the long run...' 270 00:17:13,480 --> 00:17:17,200 And taking it to the very people it was made for 271 00:17:17,280 --> 00:17:18,680 is very important for us. 272 00:17:18,760 --> 00:17:20,680 'We can get the desired valuation later on' 273 00:17:20,840 --> 00:17:24,360 'when we build it well and we build it on principles.' 274 00:17:24,440 --> 00:17:26,120 'We are patient enough to wait for that.' 275 00:18:31,720 --> 00:18:34,440 Oh, good gracious! 276 00:18:35,800 --> 00:18:37,520 Something explosive is about to go down here. 277 00:18:37,800 --> 00:18:38,920 Crazy. 278 00:18:40,160 --> 00:18:41,760 [theme music playing] 279 00:19:01,760 --> 00:19:03,200 [music fades] 280 00:19:03,400 --> 00:19:06,280 Sharks, I am infuriated to the point 281 00:19:06,360 --> 00:19:08,120 where I want to break things. 282 00:19:08,280 --> 00:19:09,800 - Oh, my! - Oh! 283 00:19:12,120 --> 00:19:13,320 [suspenseful music playing] 284 00:19:13,760 --> 00:19:15,520 He's headed towards you. [laughs] 285 00:19:15,800 --> 00:19:17,120 [suspenseful music playing] 286 00:19:20,320 --> 00:19:21,880 [blow lands] 287 00:19:22,760 --> 00:19:23,560 Oi! 288 00:19:25,120 --> 00:19:26,400 [loud crash] 289 00:19:28,040 --> 00:19:29,080 [kick lands] 290 00:19:33,840 --> 00:19:36,320 Oh! It's a rage room! I get it. 291 00:19:36,400 --> 00:19:38,640 - Oh! - Oh, no! Are you serious? 292 00:19:38,720 --> 00:19:40,600 - People with anger management issues. - Oh. 293 00:19:40,680 --> 00:19:43,000 Sharks, do you also get filled with rage 294 00:19:43,160 --> 00:19:45,640 - when someone runs a red light... - The one who used to is gone. 295 00:19:45,720 --> 00:19:47,320 [hysterical laughter] 296 00:19:48,240 --> 00:19:49,200 Sorry. 297 00:19:49,440 --> 00:19:50,480 Sorry. 298 00:19:50,720 --> 00:19:51,720 [soft chuckle] 299 00:19:52,000 --> 00:19:54,080 Sharks, don't you fly into a fit of rage 300 00:19:54,160 --> 00:19:55,480 when someone runs a red light, 301 00:19:55,640 --> 00:19:56,880 or you get frustrated with your boss, 302 00:19:56,960 --> 00:19:58,680 or when you don't get a deal on Shark Tank? 303 00:19:58,760 --> 00:20:02,120 We suppress these negative emotions and bottle them up 304 00:20:02,240 --> 00:20:03,880 which causes us harm 305 00:20:03,960 --> 00:20:06,200 and also affects our mental health. 306 00:20:06,200 --> 00:20:08,680 Sharks, imagine a room 307 00:20:08,840 --> 00:20:11,040 where you can vent out all your anger 308 00:20:11,120 --> 00:20:13,200 by breaking things, smashing them to smithereens, 309 00:20:13,320 --> 00:20:15,200 kicking things and throwing them! 310 00:20:15,280 --> 00:20:16,600 That place is The Rage Room. 311 00:20:17,480 --> 00:20:18,840 Greetings, Sharks. 312 00:20:21,360 --> 00:20:22,360 In The Rage Room, 313 00:20:22,480 --> 00:20:24,880 you can break things and vent your anger 314 00:20:37,120 --> 00:20:40,160 are waiting for the Hulk in you to take over! 315 00:20:40,240 --> 00:20:41,040 Nice. 316 00:20:41,160 --> 00:20:43,080 Sharks, the world sees such a lot of road rage, 317 00:20:43,160 --> 00:20:44,880 physical violence and domestic violence. 318 00:20:44,960 --> 00:20:48,880 The Rage Room gives you a chance to reduce these problems. 319 00:20:48,920 --> 00:20:51,040 The Rage Room is now available in Hyderabad. 320 00:20:54,320 --> 00:20:57,520 Our vision is to make India a stress-free country 321 00:20:57,720 --> 00:21:01,320 and to give people a memorable and destructive experience. 322 00:21:01,440 --> 00:21:02,600 [chuckles] Wow! 323 00:21:02,680 --> 00:21:05,120 My ask is Rs. 20 lakhs for 30% equity. 324 00:21:08,040 --> 00:21:09,440 So, Sharks, do we have a deal? 325 00:21:09,560 --> 00:21:11,480 Otherwise, I might blow a... 326 00:21:11,600 --> 00:21:14,000 - Fuse. - No, you could come here and try out The Rage Room. 327 00:21:14,080 --> 00:21:15,080 [laughs] 328 00:21:15,200 --> 00:21:17,920 - What an idea! - Yes... It's crazy. 329 00:21:18,040 --> 00:21:19,880 Delhi could really use one. 330 00:21:19,960 --> 00:21:21,600 Definitely, sir. After the deal is made, 331 00:21:21,720 --> 00:21:22,880 we'll open a franchise in Delhi. 332 00:21:23,000 --> 00:21:24,400 [Sharks laugh] 333 00:21:24,520 --> 00:21:25,520 Awesome. 334 00:21:25,960 --> 00:21:28,640 Suraj, very unique pitch. 335 00:21:28,720 --> 00:21:31,920 And you look like a sweet, gentle kid. 336 00:21:31,960 --> 00:21:32,880 - [laughing] - I... 337 00:21:32,920 --> 00:21:37,040 I was really curious to ask what led you to make this. 338 00:21:37,120 --> 00:21:39,200 So, since childhood, I've 339 00:21:39,280 --> 00:21:41,600 had short-temper and anger issues. 340 00:21:41,680 --> 00:21:44,840 So, I used to break phones. 341 00:21:44,920 --> 00:21:45,440 Oh, wow. 342 00:21:45,520 --> 00:21:47,760 That always helped me to feel better. 343 00:21:48,080 --> 00:21:50,520 So, I thought it would help rest of the people as well. 344 00:21:50,600 --> 00:21:52,080 You would break phones. 345 00:21:52,200 --> 00:21:54,000 This is the 30th phone I'm using. 346 00:21:54,080 --> 00:21:55,440 - 30th? - My God! 347 00:21:55,680 --> 00:21:57,120 Then the problem isn't solved yet. 348 00:21:57,200 --> 00:21:58,160 You're still breaking things. 349 00:21:58,240 --> 00:22:00,360 - It solved gradually. - Okay. 350 00:22:00,560 --> 00:22:02,160 Otherwise it would have been the 100th phone. 351 00:22:02,240 --> 00:22:03,680 [laughing] 352 00:22:03,760 --> 00:22:04,880 Did you try counselling? 353 00:22:05,000 --> 00:22:07,600 - I did when I was a kid. - So, this is better than that? 354 00:22:11,200 --> 00:22:12,600 But it's there in Germany. 355 00:22:12,680 --> 00:22:14,800 I had seen that they have cars 356 00:22:14,880 --> 00:22:17,200 - that people destroy. - Yes, Sir. 357 00:22:29,280 --> 00:22:30,200 What did she say? 358 00:22:32,280 --> 00:22:33,560 [laughing] 359 00:22:33,640 --> 00:22:34,840 Typical mom. 360 00:22:45,200 --> 00:22:48,960 So then we started producing once we got the idea. 361 00:22:53,320 --> 00:22:54,120 Last October. 362 00:22:54,240 --> 00:22:56,000 You started it in 12-13 days. 363 00:22:56,080 --> 00:22:57,720 - Yes. - Were you unoccupied? 364 00:22:57,840 --> 00:22:59,920 You just completed school. 365 00:23:02,680 --> 00:23:04,520 You quit that job and pursued it or 366 00:23:15,840 --> 00:23:17,560 Come on, let's break something. You break too. 367 00:23:29,840 --> 00:23:32,520 [music playing] 368 00:23:36,320 --> 00:23:38,080 Whoa! 369 00:23:38,360 --> 00:23:38,920 [hitting] 370 00:24:18,280 --> 00:24:19,760 Let me tell you my experience. 371 00:24:19,840 --> 00:24:21,280 I went inside. I hit once or twice 372 00:24:21,360 --> 00:24:24,960 and then the anger was rising. 373 00:24:25,080 --> 00:24:26,960 The more I was hitting, the aggression was rising. 374 00:24:27,040 --> 00:24:28,600 So, I think it's also negative. 375 00:24:28,680 --> 00:24:30,360 Basically, the aggression which you got 376 00:24:33,560 --> 00:24:35,480 - That is the big truth. - Yes. 377 00:24:37,120 --> 00:24:37,880 Sure, Sir. 378 00:24:37,960 --> 00:24:39,760 Do you have a video of any facility 379 00:24:39,880 --> 00:24:41,400 - in Hyderabad? - Yes, we have a few pictures. 380 00:24:43,120 --> 00:24:44,680 [music playing] 381 00:24:44,840 --> 00:24:45,600 Oh. 382 00:24:45,680 --> 00:24:46,760 - [bottle crashing] - Oh! 383 00:24:47,880 --> 00:24:50,200 [bottle crashing, thudding] 384 00:24:52,240 --> 00:24:55,680 - Has there been no incident so far? - No, Sir. Not at all. 385 00:24:55,760 --> 00:24:57,680 - But you're prone to it. - A 100 per cent. 386 00:24:57,760 --> 00:24:59,680 No, Sir. So, the suits you wore, 387 00:24:59,800 --> 00:25:01,400 we provide a much thicker suit with padding there. 388 00:25:01,480 --> 00:25:04,000 - I'm just saying... - Yet, if the baseball hits someone 389 00:25:04,120 --> 00:25:05,360 - it will hurt. - I'm also just saying that 390 00:25:05,480 --> 00:25:07,880 two people can get into a fight inside. What then? 391 00:25:15,600 --> 00:25:16,880 - So, this is... - This is like paintball. 392 00:25:35,120 --> 00:25:36,080 You forgot? 393 00:25:36,280 --> 00:25:37,480 But tell me something. 394 00:25:37,560 --> 00:25:39,080 What are the other use cases? 395 00:25:39,160 --> 00:25:40,960 Besides removing anger, 396 00:25:41,080 --> 00:25:43,560 is this used in sales training too? 397 00:25:50,520 --> 00:25:52,200 Offsite, team offsites and all. 398 00:26:24,680 --> 00:26:27,200 What is the ratio of men to women? 399 00:27:14,400 --> 00:27:17,120 - it promotes violent behaviour. - I don't think it's the same. 400 00:27:37,480 --> 00:27:39,320 You source it from a garbage vendor. 401 00:27:41,480 --> 00:27:44,280 And we send it back for recycling after everything's done. 402 00:28:07,400 --> 00:28:09,080 - Yes. - What made you think that you 403 00:28:09,120 --> 00:28:11,800 can pitch a part-time business on Shark Tank? 404 00:28:19,120 --> 00:28:21,280 No, from your perspective, it's fine. 405 00:28:21,360 --> 00:28:23,440 But from an investor's perspective, 406 00:28:23,520 --> 00:28:26,120 you are just giving it a few hours of your day. 407 00:28:26,200 --> 00:28:27,560 Because you have a daily job. 408 00:28:27,640 --> 00:28:30,080 That's why he's willing to give 30 per cent for you to do it. 409 00:28:30,160 --> 00:28:31,360 Oh, okay. 410 00:28:31,920 --> 00:28:33,200 No, Sir. 411 00:28:33,280 --> 00:28:35,000 Suraj, it's different. 412 00:28:35,080 --> 00:28:36,560 I've never experienced anything like this. 413 00:28:36,640 --> 00:28:39,800 You brought out the Delhi-Gurgaon animalistic tendency in us. 414 00:28:39,880 --> 00:28:43,200 But if you wish to do it, then do it seriously. 415 00:28:43,600 --> 00:28:45,520 If you're not serious, how can we be? 416 00:28:45,600 --> 00:28:48,160 Unfortunately, for now, I'm out. 417 00:28:50,000 --> 00:28:51,120 Suraj, I'm out too. 418 00:28:51,200 --> 00:28:53,800 I'd like to give you a serious feedback. 419 00:28:53,880 --> 00:28:57,120 Because mental health globally is a serious issue. 420 00:28:57,320 --> 00:28:57,800 Sure. 421 00:29:03,360 --> 00:29:06,200 If that doesn't work out, then counselling. 422 00:29:06,520 --> 00:29:08,920 We have to be responsible to not misguide the public. 423 00:29:20,320 --> 00:29:21,840 I don't think 424 00:29:21,920 --> 00:29:25,840 this can solve the problem that you're trying to solve. 425 00:29:25,880 --> 00:29:27,080 It could aggravate it. 426 00:29:28,360 --> 00:29:30,000 And without clear, 427 00:29:36,000 --> 00:29:38,080 that you're trying to present here. 428 00:29:38,200 --> 00:29:39,840 So, I'm out. 429 00:29:41,920 --> 00:29:45,760 What you're doing without data, without validation 430 00:29:45,840 --> 00:29:46,920 is wrong. 431 00:29:47,520 --> 00:29:50,440 I think it's irresponsible. 432 00:29:51,280 --> 00:29:52,680 And it's not a business. 433 00:29:52,920 --> 00:29:53,960 So, I'm out. 434 00:29:56,880 --> 00:29:59,720 Suraj, provided there is scientific proof, 435 00:30:13,640 --> 00:30:14,760 So, I'm out. 436 00:30:15,520 --> 00:30:17,000 - Okay, Suraj. Well done. - Good luck! 437 00:30:22,040 --> 00:30:23,600 I want to break something. 438 00:30:23,720 --> 00:30:25,960 - You make me so angry. - [screaming] 439 00:30:26,560 --> 00:30:28,240 Very good. [hitting] 440 00:30:28,400 --> 00:30:29,680 - Yeah. - Yes! That felt good. 441 00:30:29,720 --> 00:30:31,720 - It actually feels good. - [laughing] 442 00:32:24,960 --> 00:32:26,400 - Greetings, Sharks. - Greetings, Sharks. 443 00:32:26,480 --> 00:32:29,640 Sharks, may I know your clothing size? 444 00:32:29,720 --> 00:32:31,440 What's the matter? Are you hesitant? 445 00:32:35,520 --> 00:32:37,760 But we answer these questions every day. 446 00:32:37,840 --> 00:32:40,200 Why are you so tall? Why are you so thin? 447 00:32:40,280 --> 00:32:42,280 Why are you so small? Why are you so fat? 448 00:32:42,360 --> 00:32:44,760 Clothes are supposed to fit our body. 449 00:32:44,840 --> 00:32:47,080 But to fit into these clothes, 450 00:32:47,160 --> 00:32:48,960 we will go to any extent. 451 00:32:49,040 --> 00:32:52,280 Even if it's at the cost of our mental health. 452 00:32:52,400 --> 00:32:55,960 Everyone knows that women are the ultimate multitaskers. 453 00:32:56,040 --> 00:32:57,720 We can manage office work, 454 00:32:57,800 --> 00:33:00,160 domestic chores, pick up kids from school, 455 00:33:00,240 --> 00:33:03,200 but we can't change our outfit for every task. 456 00:33:03,280 --> 00:33:05,320 Can there be clothes 457 00:33:05,400 --> 00:33:07,240 that look formal at work 458 00:33:07,320 --> 00:33:09,400 at the same time feel casual and comfortable at home? 459 00:33:09,480 --> 00:33:12,320 We found the answer in athleisure. 460 00:33:12,400 --> 00:33:15,720 Athleisure means athletic plus leisure. 461 00:33:15,800 --> 00:33:17,480 It's an industry 462 00:33:17,600 --> 00:33:19,120 where you make clothes 463 00:33:19,160 --> 00:33:22,160 that you can wear for sports and performance, 464 00:33:22,280 --> 00:33:23,560 and for domestic chores too. 465 00:33:23,640 --> 00:33:24,760 And the promise is 466 00:33:24,840 --> 00:33:27,800 that you will always look stylish. 467 00:33:27,880 --> 00:33:30,600 Sharks, aastey is India's first and 468 00:33:30,720 --> 00:33:34,800 only sustainable, size-inclusive, athleisure wear company. 469 00:33:45,360 --> 00:33:48,600 Our leggings are available in 8 sizes. 470 00:33:48,680 --> 00:33:49,840 But also in 3 lengths. 471 00:33:49,920 --> 00:33:52,960 So, a total of 24 sizes. 472 00:34:01,360 --> 00:34:04,480 we can create a high-quality, recycled polyester product. 473 00:34:08,160 --> 00:34:10,880 A few months ago, we went live in marketplaces too. 474 00:34:17,440 --> 00:34:20,000 But now, this is the athleisure industry. 475 00:34:20,120 --> 00:34:24,440 Globally, its market size is Rs 30 lakh crores and it's growing. 476 00:34:24,560 --> 00:34:28,200 And Sharks, we have sold more than 20,000 units. 477 00:34:28,320 --> 00:34:29,480 We have one vision. 478 00:34:29,560 --> 00:34:31,800 We want to make clothes for all kinds of women. 479 00:34:31,920 --> 00:34:34,240 Without paying heed to their size and lifestyle. 480 00:34:34,320 --> 00:34:37,840 And yes, we want women to live aastey. 481 00:34:37,920 --> 00:34:41,400 We're asking for Rs 80 lakhs for 2 per cent equity. 482 00:34:48,160 --> 00:34:51,360 Good presentation, guys. Let's not make them tired. 483 00:34:51,440 --> 00:34:53,000 Girls, thank you so much. 484 00:34:53,120 --> 00:34:55,080 - Thank you, girls. - Thank you so much. 485 00:34:55,880 --> 00:34:57,200 Where are you from? 486 00:34:57,280 --> 00:34:59,080 I'm from Delhi but I live in Mumbai. 487 00:34:59,200 --> 00:35:01,400 - Oh, wow. - I'm from Mumbai but I live 488 00:35:01,440 --> 00:35:02,320 in Bengaluru. 489 00:35:02,320 --> 00:35:04,120 [chuckling] 490 00:35:04,640 --> 00:35:06,480 I was born and raised in Delhi. 491 00:35:06,600 --> 00:35:08,160 Then I went to the US for education. 492 00:35:08,240 --> 00:35:09,960 I studied at Drexel University in the US. 493 00:35:10,040 --> 00:35:11,360 It's in Philadelphia. 494 00:35:14,440 --> 00:35:15,960 I landed a job at Wall Street. 495 00:35:16,040 --> 00:35:17,640 Then I earned a lot. 496 00:35:17,720 --> 00:35:18,880 - Which company? - BlackRock. 497 00:35:18,960 --> 00:35:20,920 - Okay. - During that period, I realized 498 00:35:21,000 --> 00:35:22,200 that I'm not interested in it. 499 00:35:22,240 --> 00:35:24,000 I wanted to return to India to build something of my own. 500 00:35:24,080 --> 00:35:25,640 So, I returned. 501 00:35:25,920 --> 00:35:28,640 I was doing a job in a tech company in India. 502 00:35:28,720 --> 00:35:30,160 When did you return to India? 503 00:35:30,240 --> 00:35:32,160 I came in 2012. 504 00:35:32,280 --> 00:35:33,960 When did you launch this startup? 505 00:35:34,040 --> 00:35:36,200 We started this 2.5 years ago. 506 00:35:36,800 --> 00:35:39,520 I studied at Columbia University in New York. 507 00:35:43,280 --> 00:35:45,640 - You did Master's at Columbia. - Yes. 508 00:35:45,760 --> 00:35:46,800 Whose idea was it? 509 00:35:46,880 --> 00:35:51,200 It was our idea. In 2019, 510 00:35:51,320 --> 00:35:54,360 there was a lot of buzz about athleisure. 511 00:35:54,440 --> 00:35:56,000 We started an Instagram page. 512 00:35:56,080 --> 00:35:58,760 And we wrote on the page that women take a lot of pressure 513 00:35:58,880 --> 00:36:01,800 so we should take it easy. We were thinking of a word for it 514 00:36:01,880 --> 00:36:04,320 and I was reminded that my grandma 515 00:36:04,440 --> 00:36:07,040 would stop us whenever we would run and say, "Go slowly (aastey)." 516 00:36:07,120 --> 00:36:09,200 Life is simple. Take it easy. 517 00:36:10,000 --> 00:36:12,120 It's a nice name because I recently read 518 00:36:12,240 --> 00:36:14,640 that have you ever met a relaxed woman? 519 00:36:14,720 --> 00:36:15,800 No, we don't exist. 520 00:36:15,880 --> 00:36:18,880 So much mental load, and endless responsibilities 521 00:36:18,960 --> 00:36:20,520 are constantly on us while we run. 522 00:36:20,600 --> 00:36:25,160 So, in a category like athleisure you won't expect a name like this 523 00:36:25,240 --> 00:36:27,360 because you would think of hustling. 524 00:36:27,440 --> 00:36:29,320 But a name like aastey... 525 00:36:29,440 --> 00:36:31,400 You conveyed our message to everyone. 526 00:36:31,480 --> 00:36:33,080 Our message to women is that 527 00:36:33,160 --> 00:36:35,800 take it easy, and that's what our page says. Live aastey. 528 00:36:36,640 --> 00:36:39,640 We are a big community now. 529 00:36:39,720 --> 00:36:42,120 When we started that page for fun, 530 00:36:42,200 --> 00:36:45,720 we went from 0 to 2000 followers and got really happy. 531 00:36:46,400 --> 00:36:47,960 Then that number kept increasing. 532 00:36:48,080 --> 00:36:51,280 Today, the community has more than 2 lakh women. 533 00:36:52,600 --> 00:36:55,080 What is the engagement like? Open one of your popular reels. 534 00:36:55,160 --> 00:36:56,640 Yeah, you can open the first one. 535 00:36:56,720 --> 00:36:57,760 Do you have a count of the likes? 536 00:36:57,840 --> 00:36:58,880 Yeah, we have, uh... 537 00:36:59,000 --> 00:37:00,880 463. 538 00:37:02,320 --> 00:37:03,560 Okay, not a big deal. 539 00:37:03,680 --> 00:37:04,680 The engagement is okay. 540 00:37:04,800 --> 00:37:06,880 Girls love it. They are following it. 541 00:37:06,960 --> 00:37:08,120 [laughing] 542 00:37:08,200 --> 00:37:10,840 - No, it's not about following. - You don't qualify. 543 00:37:11,240 --> 00:37:13,480 I mean people are not very excited. 544 00:37:13,600 --> 00:37:15,000 They're not excited about every reel. 545 00:37:15,080 --> 00:37:16,760 If it's a 'get ready with me' video, 546 00:37:16,840 --> 00:37:18,680 then young people share it. 547 00:37:18,800 --> 00:37:21,880 If it's a normal video where we're showing them how to wear it, 548 00:37:21,960 --> 00:37:23,160 then people don't get excited, 549 00:37:23,240 --> 00:37:25,520 the purpose of it is to convey the features to the public. 550 00:37:26,360 --> 00:37:28,440 - There's a brand called Lululemon. - Yes. 551 00:37:28,520 --> 00:37:31,320 You were in the US and Lululemon did very well. 552 00:37:31,400 --> 00:37:33,000 - It is one of the most... - Absolutely. 553 00:37:33,120 --> 00:37:35,280 - Celebrated brands right now. - They're coming to India. 554 00:37:35,360 --> 00:37:37,040 Their price point is slightly higher. 555 00:37:37,120 --> 00:37:37,920 Slightly! 556 00:37:39,200 --> 00:37:40,240 It is quite high. 557 00:37:40,320 --> 00:37:42,320 - Yes! - It is very high. 558 00:37:42,400 --> 00:37:45,000 So, somewhere, you were inspired by the story of Lululemon. 559 00:37:45,080 --> 00:37:46,320 We're highly inspired. 560 00:37:46,400 --> 00:37:48,640 In fact, our first manufacturer 561 00:37:48,720 --> 00:37:52,040 who made our EULs or Extreme Uplift Leggings, 562 00:37:55,280 --> 00:37:56,240 We wanted to make sure 563 00:37:56,280 --> 00:37:59,040 that our leggings gave the same look, feel and fit, 564 00:37:59,120 --> 00:38:00,880 but at one-tenth the price. 565 00:38:00,960 --> 00:38:01,840 Based in China? 566 00:38:01,920 --> 00:38:04,200 Our first collection was made out of China. 567 00:38:04,280 --> 00:38:07,360 Thereafter, we started manufacturing it in India. 568 00:38:11,120 --> 00:38:13,280 - They cover athleisure, activewear.. Everything. - Yes. 569 00:38:13,400 --> 00:38:15,760 Do you compete with them as well? 570 00:38:16,360 --> 00:38:17,520 It hasn't happened until now 571 00:38:17,600 --> 00:38:19,160 because they're at a different price point. 572 00:38:26,000 --> 00:38:27,400 [music playing] 573 00:38:31,440 --> 00:38:32,680 The quality is good. 574 00:38:32,840 --> 00:38:34,160 It has four pockets. 575 00:38:40,160 --> 00:38:43,800 - You said you use 100% recycled polyester. - Yes. 576 00:38:43,880 --> 00:38:44,920 This is 100% cotton. 577 00:38:45,000 --> 00:38:48,040 We use 100% recycled polyester in our activewear products. 578 00:38:48,200 --> 00:38:49,920 That does not need polyester. 579 00:38:50,040 --> 00:38:52,280 Okay. So, wherever you're using polyester, 580 00:38:52,360 --> 00:38:53,480 - it is recycled. - Yes. 581 00:38:53,520 --> 00:38:55,000 - Otherwise, you use cotton. - Yes. 582 00:38:55,080 --> 00:38:55,880 Okay, thank you. 583 00:38:56,720 --> 00:38:59,200 There are a lot of players in this category right now. 584 00:38:59,320 --> 00:39:00,520 You're not the only player. 585 00:39:00,640 --> 00:39:02,600 There are some large players and mid-size players. 586 00:39:02,680 --> 00:39:03,960 What's your current scale? 587 00:39:04,040 --> 00:39:07,440 We started this business one and a half years ago. 588 00:39:10,480 --> 00:39:11,800 What are your monthly sales? 589 00:39:11,880 --> 00:39:14,600 Our total sales for the last three months were Rs. 15 lakhs. 590 00:39:14,760 --> 00:39:16,480 - 15 lakhs. So, Rs. 5 lakhs a month. - Last three months. 591 00:39:16,600 --> 00:39:18,000 Yes, in the last three months. 592 00:39:18,120 --> 00:39:21,720 How many brands in India must be into athleisure currently? 593 00:39:21,800 --> 00:39:23,000 There are quite a few. 594 00:39:23,080 --> 00:39:25,840 How are you different from those brands? 595 00:39:25,960 --> 00:39:28,440 - None of them are sustainable. - Got it. 596 00:39:28,560 --> 00:39:30,240 What percentage of your products is sustainable? 597 00:39:30,520 --> 00:39:31,640 All our products are sustainable. 598 00:39:31,720 --> 00:39:33,040 Not the cotton products or the cotton T-shirts. 599 00:39:33,120 --> 00:39:34,600 - It's organic... - It's organic cotton. 600 00:39:34,680 --> 00:39:36,160 All our products are sustainable. 601 00:39:36,320 --> 00:39:38,080 So, sustainability is one difference. 602 00:39:38,200 --> 00:39:39,040 What else? 603 00:39:39,080 --> 00:39:41,240 And then, we truly believe it's our design. 604 00:39:41,320 --> 00:39:45,240 Just because of sustainability and design, you can win this market! 605 00:39:45,320 --> 00:39:46,800 There isn't place for so many players. 606 00:39:46,920 --> 00:39:48,400 I believe two to three players will thrive. 607 00:39:48,480 --> 00:39:50,240 What is your plan and your vision now? 608 00:39:50,320 --> 00:39:51,840 We've built a good brand. 609 00:39:51,920 --> 00:39:53,680 We've created a good product. 610 00:39:53,760 --> 00:39:56,160 We've partnered with good manufacturers. 611 00:39:56,280 --> 00:39:58,920 We have come here to make this a Rs. 100-crore brand! 612 00:39:59,000 --> 00:40:01,120 So, you have not raised any investment yet. 613 00:40:01,200 --> 00:40:02,320 - We have. - We did. 614 00:40:02,440 --> 00:40:04,400 - Investment... - We raised pre-revenue. 615 00:40:04,520 --> 00:40:05,800 How much did you raise and at what valuation? 616 00:40:05,880 --> 00:40:07,120 We raised Rs. 10 crores. 617 00:40:07,200 --> 00:40:09,240 - At what valuation? - Rs. 40 crores. 618 00:40:09,360 --> 00:40:11,120 The first thing we did with that money was 619 00:40:11,240 --> 00:40:14,920 to place an order for our bestseller product, the EUL. 620 00:40:15,040 --> 00:40:15,840 What is EUL? 621 00:40:36,400 --> 00:40:37,400 and soon do well. 622 00:40:37,600 --> 00:40:40,720 And within six months, we had spent a lot of money on it. 623 00:40:40,800 --> 00:40:41,720 Define 'a lot'. 624 00:40:41,800 --> 00:40:43,000 When we started the business, 625 00:40:43,120 --> 00:40:47,760 - we launched the website in June 2022. - Hmm. 626 00:40:47,920 --> 00:40:51,920 We did a meagre sales in May of Rs. 2 lakhs without the website. 627 00:40:51,960 --> 00:40:53,280 Then we did Rs. 3 lakhs sales. 628 00:40:53,400 --> 00:40:55,720 Followed by Rs. 5 lakhs and Rs. 10 lakhs sales. 629 00:40:55,800 --> 00:40:59,400 Then the festive season arrived and we were sure we would grow 630 00:40:59,480 --> 00:41:01,200 and we decided to spend more money. 631 00:41:01,360 --> 00:41:03,840 However, our returns were only Rs. 12 lakhs. 632 00:41:04,440 --> 00:41:06,280 We suffered a setback. 633 00:41:06,320 --> 00:41:08,360 Around February of 2023 634 00:41:08,520 --> 00:41:10,040 is when things looked a little better for us. 635 00:41:10,160 --> 00:41:13,120 From Rs. 12 lakhs, we jumped to Rs. 35 lakhs. 636 00:41:13,200 --> 00:41:15,040 After that, we did Rs. 47 lakhs sales. 637 00:41:15,120 --> 00:41:17,880 Next three months, we continuously almost touched Rs. 50 lakhs. 638 00:41:17,960 --> 00:41:19,120 At what marketing cost? 639 00:41:19,200 --> 00:41:21,400 - At Rs. 30 lakhs... Yes. - 30 lakhs a month. 640 00:41:24,480 --> 00:41:27,720 - The moment you stopped marketing, the entire sales dried up. - Yes. 641 00:41:27,880 --> 00:41:29,800 - Ever since, our ad spend has been zero. - Yes, zero. 642 00:41:29,880 --> 00:41:30,920 We were petrified. 643 00:41:31,000 --> 00:41:32,960 We said our entire reserve would dry up. 644 00:41:33,040 --> 00:41:35,360 Please know that our team at this time 645 00:41:35,440 --> 00:41:37,960 - was just four people running the company. - And now? 646 00:41:38,080 --> 00:41:38,880 - Two. - Two. 647 00:41:39,000 --> 00:41:40,120 - One and two. - How much money is left? 648 00:41:40,200 --> 00:41:41,000 Zero. 649 00:41:42,040 --> 00:41:42,920 - Zero! - Yes. 650 00:41:43,000 --> 00:41:43,840 What do you mean? 651 00:41:44,360 --> 00:41:47,040 You invested more money from your own pocket. 652 00:41:47,120 --> 00:41:47,960 - Yes. - We did. 653 00:41:48,040 --> 00:41:50,800 - No... - We are making a profit now. 654 00:41:54,000 --> 00:41:55,720 Almost Rs. 2 lakhs. 655 00:41:55,800 --> 00:41:57,240 What were last month's sales? 656 00:41:57,320 --> 00:41:59,040 Rs. 1.7 lakhs in November 2023. 657 00:41:59,200 --> 00:42:00,080 Whoa! 658 00:42:00,400 --> 00:42:01,760 Hey! You just said Rs. 5 lakhs. 659 00:42:01,840 --> 00:42:04,120 No. I said we did a total business 660 00:42:04,240 --> 00:42:06,040 of Rs. 15 lakhs in the last three months. 661 00:42:06,280 --> 00:42:08,800 - You said sales were Rs. 1.5 lakhs. - Yes. 662 00:42:08,880 --> 00:42:10,640 - You have zero money. - Yes. 663 00:42:10,840 --> 00:42:12,680 Where's the business? What are we investing in? 664 00:42:13,120 --> 00:42:14,360 [sombre music playing] 665 00:42:20,400 --> 00:42:23,920 - The biggest problem in the fashion business is that of stock. - Yes. 666 00:42:24,080 --> 00:42:25,680 - So, you must have inventory. - Yes. 667 00:42:25,840 --> 00:42:28,200 - How many rupees worth of? - Rs. 1.5 to 2 crores. 668 00:42:28,240 --> 00:42:30,040 - How long has it been unsold? - Six months. 669 00:42:30,240 --> 00:42:31,320 [tense music playing] 670 00:42:32,240 --> 00:42:33,880 - Have you paid for it? - Yes. 671 00:42:33,960 --> 00:42:36,000 You don't have assets either as such. 672 00:42:36,200 --> 00:42:37,120 No, just the inventory. 673 00:42:37,240 --> 00:42:38,280 And liabilities? 674 00:42:38,480 --> 00:42:39,760 - We do have liabilities. - What are they? 675 00:42:39,880 --> 00:42:42,240 We have liabilities of almost around Rs. 1 crore. 676 00:42:42,360 --> 00:42:43,440 Gosh! 677 00:42:43,640 --> 00:42:46,080 - What are the liabilities? - We have to pay off Meta Ads. 678 00:42:46,600 --> 00:42:47,440 How will you pay them? 679 00:42:47,560 --> 00:42:49,240 - We also have accounts receivable. - From? 680 00:42:49,360 --> 00:42:50,920 - Of Rs. 30 lakhs. - From whom? 681 00:42:55,320 --> 00:42:57,360 - [Sharks clamouring] - You're in bad shape, bro. 682 00:42:58,640 --> 00:43:01,440 Either you don't realise it or you do, but are not admitting it. 683 00:43:01,920 --> 00:43:04,120 The Indian consumer hasn't accepted you. 684 00:43:04,240 --> 00:43:07,920 I think you're currently in a very sticky situation 685 00:43:08,000 --> 00:43:09,600 and if I were to invest in this situation, 686 00:43:09,640 --> 00:43:12,760 I think you'll first pay off Meta, then comes your unsold stock. 687 00:43:12,840 --> 00:43:14,880 You don't have a fundraise on the cards. 688 00:43:14,920 --> 00:43:17,840 So, it's like putting money in the well for me. 689 00:43:17,920 --> 00:43:19,080 Unfortunately, I'm out. 690 00:43:19,200 --> 00:43:20,320 [intense music playing] 691 00:43:24,120 --> 00:43:28,000 - You spent all of it primarily towards marketing. - Hmm. 692 00:43:28,080 --> 00:43:30,560 And I don't think you created a brand. 693 00:43:30,720 --> 00:43:32,880 Had you created a brand, 694 00:43:33,080 --> 00:43:35,800 - then out of your sales of Rs. 50 lakhs... - Yes? 695 00:43:35,880 --> 00:43:40,000 At least 20 to 30% repeat customers 696 00:43:40,160 --> 00:43:41,600 would have given you some sales. 697 00:43:41,680 --> 00:43:44,960 It wouldn't drop to Rs. 1.7 lakhs a month which is your current sale. 698 00:43:45,080 --> 00:43:46,480 I genuinely think 699 00:43:46,520 --> 00:43:50,080 that you ought to rethink your entire business model. 700 00:43:50,160 --> 00:43:51,000 - Yes. - Hmm. 701 00:43:51,200 --> 00:43:52,040 I'm out. 702 00:43:53,200 --> 00:43:54,080 You need help. 703 00:43:54,160 --> 00:43:56,360 And you need help not as an investor, 704 00:43:56,480 --> 00:43:58,080 you need help as a co-founder, 705 00:43:58,440 --> 00:44:00,080 which I cannot do today. 706 00:44:00,160 --> 00:44:04,120 I don't think either of you has understood how to build a brand. 707 00:44:05,000 --> 00:44:07,800 A brand is built with a purpose and with a certain thought process. 708 00:44:07,880 --> 00:44:09,320 You could play around with the ROAS now, 709 00:44:09,400 --> 00:44:11,080 - but it's just short-term thinking. - Hmm. 710 00:44:11,160 --> 00:44:13,480 From short-term, you need to move to long-term thinking 711 00:44:13,640 --> 00:44:15,320 if you still want to pursue this. 712 00:44:15,400 --> 00:44:18,120 You began your pitch with aastey's philosophy 713 00:44:21,360 --> 00:44:23,720 - I think only that will build your brand. - Yes. 714 00:44:23,960 --> 00:44:25,080 I am out. 715 00:44:26,280 --> 00:44:27,680 I still don't get it. 716 00:44:27,760 --> 00:44:30,440 If I have an inventory worth Rs. 1.5 crores, 717 00:44:30,800 --> 00:44:33,240 then anyhow, within three months, 718 00:44:35,800 --> 00:44:38,280 I'd come up with a strategic plan with my partners, 719 00:44:38,440 --> 00:44:41,800 I'd wear the leggings myself and advertise on Instagram... 720 00:44:41,880 --> 00:44:43,600 I'd do anything in three months 721 00:44:43,680 --> 00:44:46,720 to sell that inventory and convert it to cash. 722 00:44:46,800 --> 00:44:47,840 - That's what we're doing. - We're trying. 723 00:44:47,920 --> 00:44:48,960 Why are you... 724 00:44:49,040 --> 00:44:50,120 Then how is it possible 725 00:44:50,200 --> 00:44:52,040 that your sales are a mere Rs. 1.5 to 3 lakhs? 726 00:44:52,760 --> 00:44:54,600 Is it that perhaps you are always... 727 00:44:54,680 --> 00:44:58,280 You've been professionals and have worked for big companies. 728 00:44:58,400 --> 00:45:00,360 Is that why you don't know how to hustle? 729 00:45:00,960 --> 00:45:03,120 - No. - Hustling is in our veins, 730 00:45:03,240 --> 00:45:05,400 but we're going through a rough patch 731 00:45:05,480 --> 00:45:07,160 and have learnt from our mistakes. 732 00:45:08,040 --> 00:45:09,560 Your biggest problem is 733 00:45:09,640 --> 00:45:12,720 that in the gold rush of 2021, 734 00:45:12,840 --> 00:45:15,200 you got pre-revenue funding. 735 00:45:15,320 --> 00:45:18,200 And the companies who get funding easily, 736 00:45:18,320 --> 00:45:19,840 many of the times, 737 00:45:19,960 --> 00:45:21,760 they start to lose their financial discipline. 738 00:45:21,880 --> 00:45:24,480 So, the financial indiscipline you have displayed, 739 00:45:24,560 --> 00:45:28,560 where despite the hand-to-mouth situation 740 00:45:28,800 --> 00:45:30,560 you still haven't figured out 741 00:45:30,640 --> 00:45:34,280 how to liquidate your Rs. 1.5-crore inventory, 742 00:45:34,400 --> 00:45:36,480 that is baffling me! 743 00:45:37,680 --> 00:45:39,680 Good luck, Jeevika and Kanupriya. I am out. 744 00:45:40,600 --> 00:45:41,440 Thank you. 745 00:45:41,560 --> 00:45:43,280 I believe you have two options. 746 00:45:43,560 --> 00:45:47,040 The first is that you completely focus on EUL. 747 00:45:47,160 --> 00:45:48,840 Just that, and don't do anything else. 748 00:45:48,960 --> 00:45:51,000 The business will be small but it'll be sustainable. 749 00:45:51,120 --> 00:45:52,000 - Yes. - True. 750 00:45:52,080 --> 00:45:53,000 The second option is 751 00:45:53,160 --> 00:45:55,560 you stop this and take up commercial roles. 752 00:45:55,680 --> 00:45:58,040 I believe you might have learnt about business, 753 00:45:58,120 --> 00:46:00,040 but commercial acumen... 754 00:46:00,120 --> 00:46:01,800 - Yes. - Or business sense... 755 00:46:01,920 --> 00:46:04,000 You're learning that very slowly 756 00:46:04,160 --> 00:46:05,640 and it might be too late. 757 00:46:05,720 --> 00:46:07,000 For that reason, I am out. 758 00:46:07,840 --> 00:46:09,280 I'll tell you one thing before you go. 759 00:46:09,360 --> 00:46:11,400 Failure is the stepping stone to success. 760 00:46:11,720 --> 00:46:13,960 So, hope for the best. 761 00:46:15,040 --> 00:46:16,080 All right, best of luck. 762 00:46:16,160 --> 00:46:17,320 All right, guys. Good luck. 763 00:46:17,640 --> 00:46:19,120 Thank you. 764 00:46:19,520 --> 00:46:20,880 [poignant music playing] 765 00:46:21,880 --> 00:46:25,280 How can you be sitting on Rs. 3-crore inventory at MRP? 766 00:46:25,400 --> 00:46:26,680 - I would... - And Rs. 1.5 lakhs sales. 767 00:46:26,760 --> 00:46:28,520 I'd have gone to shops and sold them. 768 00:46:28,640 --> 00:46:30,480 - Do whatever it takes! - Sell it and liquidate it. 769 00:46:30,560 --> 00:46:32,360 - [Sharks clamouring] - Door-to-door! 770 00:46:32,440 --> 00:46:34,520 - Why can't you do that? - Sell it at 10% or 20% of MRP! 771 00:46:34,640 --> 00:46:35,760 Buy all you can! 772 00:46:37,000 --> 00:46:38,200 [music playing] 773 00:46:39,440 --> 00:46:41,360 Welcome to Ask The Shark, friends. 774 00:46:41,440 --> 00:46:43,320 Joining us on Ask The Shark today 775 00:46:43,440 --> 00:46:45,680 is the Co-Founder and CEO of Sugar Cosmetics, 776 00:46:45,760 --> 00:46:46,600 Ms. Vineeta Singh. 777 00:46:46,680 --> 00:46:48,240 - Welcome, ma'am. - Thank you. 778 00:46:48,400 --> 00:46:52,160 Ma'am, today's question is by Ramya Aerra from Telangana. 779 00:46:52,400 --> 00:46:53,560 Here it is. 780 00:47:10,200 --> 00:47:12,480 that is closest to our hearts, 781 00:47:12,640 --> 00:47:15,560 because it takes years to build a big business. 782 00:47:15,680 --> 00:47:16,880 And during that journey, 783 00:47:16,960 --> 00:47:20,480 if you are not passionate about that problem, 784 00:47:20,720 --> 00:47:22,160 - then you will give up. - Right. 785 00:47:22,280 --> 00:47:24,000 If you are passionate about it,