1 00:00:10,080 --> 00:00:12,000 [music playing] 2 00:00:16,280 --> 00:00:19,080 On Shark Tank India, to reassure Sharks 3 00:00:19,320 --> 00:00:22,320 and to insure all of India, 4 00:00:22,640 --> 00:00:24,480 the founder and CEO of Acko is here. 5 00:00:24,600 --> 00:00:25,520 Varun Dua. 6 00:00:27,040 --> 00:00:28,880 [water bubbling] 7 00:00:32,120 --> 00:00:34,440 Nobody in my family does business. 8 00:00:34,520 --> 00:00:36,000 Nobody has ventured into entrepreneurship. 9 00:00:40,640 --> 00:00:43,840 My grandparents and my parents' generation 10 00:00:43,920 --> 00:00:45,240 valued safety a lot. 11 00:00:45,360 --> 00:00:47,280 To work and settle down. 12 00:00:48,120 --> 00:00:50,240 My father was in a public sector company. 13 00:00:50,320 --> 00:00:51,480 My mother was a school teacher. 14 00:00:51,600 --> 00:00:52,520 So, she finally 15 00:00:52,520 --> 00:00:55,320 retired as the Principal of a Maharashtra state board school. 16 00:00:56,280 --> 00:00:58,440 My first job was at an insurance company. 17 00:00:58,680 --> 00:01:01,280 Gradually, I realized this about myself that 18 00:01:01,360 --> 00:01:03,880 if I can move an actual thing 19 00:01:04,120 --> 00:01:05,800 or make a customer's life better, 20 00:01:05,880 --> 00:01:08,280 or if I can improve the efficiency of my department 21 00:01:08,360 --> 00:01:09,520 then I would enjoy it. 22 00:01:10,440 --> 00:01:12,880 I was raised in Mumbai. I used to live in Juhu, Bandra. 23 00:01:13,000 --> 00:01:14,280 Most of the working life. 24 00:01:15,280 --> 00:01:17,320 Firstly, I started a company in Mumbai. 25 00:01:17,440 --> 00:01:19,400 It used to make software for the insurance sector. 26 00:01:19,560 --> 00:01:23,040 Then I started distribution with that company. 27 00:01:24,040 --> 00:01:25,560 While doing that, I realized 28 00:01:25,640 --> 00:01:27,560 that the model I've chosen 29 00:01:27,640 --> 00:01:31,240 to solve the insurance sector or do something new, is not right. 30 00:01:31,440 --> 00:01:34,080 I would not say that it failed. But it wasn't a success either. 31 00:01:35,520 --> 00:01:39,320 And then I got the idea that I must manufacture my product. 32 00:01:39,400 --> 00:01:40,840 That's how Acko happened. 33 00:01:42,480 --> 00:01:44,200 It was in 2016. 34 00:01:44,280 --> 00:01:45,640 The company started in Mumbai. 35 00:01:45,720 --> 00:01:49,160 And I realized that if we must use technology, 36 00:01:49,280 --> 00:01:51,080 and make it big, 37 00:01:51,160 --> 00:01:53,040 then Mumbai may or may not be the right place. 38 00:01:54,800 --> 00:01:56,840 But I had to make a choice. So, I chose Bengaluru. 39 00:01:56,960 --> 00:01:59,880 Because the excitement and talent 40 00:01:59,960 --> 00:02:01,720 in Bengaluru can't be found anywhere else in India. 41 00:02:03,400 --> 00:02:06,920 A founder defines the culture of his company. 42 00:02:07,040 --> 00:02:09,200 But if I talk about Acko's culture 43 00:02:09,280 --> 00:02:10,480 then humility is one word. 44 00:02:10,560 --> 00:02:13,800 I find this virtue or quality very important. 45 00:02:15,440 --> 00:02:17,440 The bigger the team gets, 46 00:02:17,560 --> 00:02:19,280 the more complicated the company gets. 47 00:02:19,360 --> 00:02:20,880 There are many opinions. 48 00:02:21,040 --> 00:02:22,360 Sometimes, those opinions are good. 49 00:02:22,440 --> 00:02:24,480 Sometimes, those opinions also slow you down. 50 00:02:24,720 --> 00:02:27,160 But when the team's heart is in the right place, 51 00:02:27,280 --> 00:02:30,200 and they're thinking what's right for the customer. 52 00:02:31,480 --> 00:02:33,360 This long-term thinking 53 00:02:33,520 --> 00:02:36,080 and humility are bringing more people into this journey 54 00:02:36,200 --> 00:02:39,560 and they're confident about working with the right people. 55 00:02:39,640 --> 00:02:41,240 I think that's what defines Acko. 56 00:02:43,000 --> 00:02:45,720 When Shark Tank was announced in India three years ago, 57 00:02:45,920 --> 00:02:47,880 I was curious. 58 00:02:48,800 --> 00:02:51,520 When season 1 got over, we realized 59 00:02:51,600 --> 00:02:54,200 that we don't give India its due credit. 60 00:02:54,320 --> 00:02:56,560 It has just completely made entrepreneurship mainstream. 61 00:02:58,240 --> 00:02:59,840 The opinions on the Sharks, 62 00:03:00,080 --> 00:03:02,560 what the founder said or what happened, 63 00:03:02,760 --> 00:03:05,440 I have seen 11-12 year olds discuss it. 64 00:03:06,920 --> 00:03:08,200 It's fascinating 65 00:03:08,480 --> 00:03:10,760 that they're getting interested in entrepreneurship, 66 00:03:10,920 --> 00:03:12,720 business, innovation. 67 00:03:12,880 --> 00:03:14,800 Understanding investments and business. 68 00:03:16,120 --> 00:03:20,040 When I watch a pitch, I connect it to my business and get ideas. 69 00:03:20,240 --> 00:03:23,080 I want to feel that in flesh and blood. I want to see. 70 00:03:23,240 --> 00:03:24,640 I've learnt a lot from the show. 71 00:03:24,760 --> 00:03:27,400 So, I'm excited to see, in the hot seat, in the action. 72 00:03:27,560 --> 00:03:29,720 And form relationships with those founders. 73 00:03:30,040 --> 00:03:31,640 And hopefully have a long journey with them. 74 00:03:35,280 --> 00:03:36,840 [music playing] 75 00:03:46,720 --> 00:03:49,080 [music playing] 76 00:03:59,160 --> 00:04:01,360 Hello, Sharks. I'm Purvi Roy. 77 00:04:08,520 --> 00:04:11,720 Sharks, we've brought an upgrade in the luggage industry today. 78 00:04:11,880 --> 00:04:13,720 And we've made smart luggage. 79 00:04:14,880 --> 00:04:17,680 Like this Follow Me Suitcase, it follows you. 80 00:04:17,840 --> 00:04:20,480 So, you can go handsfree at the airport. 81 00:04:20,720 --> 00:04:22,880 Not just that, when you get tired of walking, 82 00:04:23,160 --> 00:04:24,880 you can sit on it. 83 00:04:24,960 --> 00:04:26,040 [laughing] 84 00:04:26,600 --> 00:04:28,040 You won't carry the luggage. 85 00:04:28,120 --> 00:04:29,680 The luggage will carry you hereafter. 86 00:04:30,040 --> 00:04:31,560 No matter how responsible we become, 87 00:04:31,720 --> 00:04:35,040 there's always the stress of losing one's wallet or mobile. 88 00:04:52,360 --> 00:04:54,320 sold our smart products to more than 35,000 people. 89 00:04:55,520 --> 00:04:57,400 Sharks, the vision of Arista Vault 90 00:04:57,720 --> 00:05:00,280 is to solve people's worry of losing things 91 00:05:00,400 --> 00:05:02,000 using our innovative products. 92 00:05:02,080 --> 00:05:05,680 And to give people a hassle-free travel experience. 93 00:05:06,000 --> 00:05:08,520 We're asking for Rs 45 lakhs 94 00:05:16,400 --> 00:05:19,800 Purvi and Atul, welcome to Shark Tank India Season 3. 95 00:05:19,880 --> 00:05:20,480 Thank you, Sir. 96 00:05:24,080 --> 00:05:27,000 I had a fashion show, India Runway Week in 2017. 97 00:05:27,160 --> 00:05:29,000 I met Atul and Colonel there. 98 00:05:29,080 --> 00:05:31,560 Colonel is our technology officer. 99 00:05:32,400 --> 00:05:35,000 So, we joined hands and decided 100 00:05:35,280 --> 00:05:37,680 to build this company where 101 00:05:37,880 --> 00:05:40,400 we can solve lost and theft hassles. 102 00:05:40,480 --> 00:05:43,360 We conceived the idea of Arista Vault in 2017. 103 00:05:43,440 --> 00:05:45,920 And we registered it in 2018. 104 00:05:46,040 --> 00:05:47,920 I had topped my class 10 exams. 105 00:05:48,000 --> 00:05:50,680 After that, I appeared for Railway Board exam and got selected. 106 00:05:51,280 --> 00:05:53,280 At the age of 17 years and 10 months, I was working 107 00:05:53,280 --> 00:05:55,040 as a ticket collector in railways. 108 00:05:55,040 --> 00:05:56,360 - Oh! - Wow! 109 00:05:56,440 --> 00:05:57,440 This is like Dhoni's story. 110 00:05:58,520 --> 00:06:01,120 Since I found that job monotonous, 111 00:06:01,240 --> 00:06:02,880 I wanted to do something better. 112 00:06:02,960 --> 00:06:06,360 Finally, this year, I quit my job and took retirement. 113 00:06:06,440 --> 00:06:09,160 I was one of the youngest to take VRS. 114 00:06:09,240 --> 00:06:12,240 I don't get it. If she started at 17-18, 115 00:06:12,640 --> 00:06:14,280 and you said that you recently joined. 116 00:06:14,360 --> 00:06:15,760 You retired last year. 117 00:06:16,200 --> 00:06:18,400 And you're saying that Colonel... 118 00:06:18,680 --> 00:06:19,600 He was there from the start. 119 00:06:19,680 --> 00:06:22,000 Is he fully involved or an advisor? 120 00:06:22,120 --> 00:06:25,320 He was the co-founder but now he's a mentor. 121 00:06:25,480 --> 00:06:27,920 So, he doesn't have equity in the cap table. 122 00:06:28,000 --> 00:06:29,480 - He has equity. - He has equity. 123 00:06:29,600 --> 00:06:31,160 - 2 per cent equity. - Okay. 124 00:06:31,280 --> 00:06:33,160 - How much equity do you both have? - 60, 20. 125 00:06:33,320 --> 00:06:34,040 What about the rest? 126 00:06:34,160 --> 00:06:35,400 The remaining is with investors. 127 00:06:36,040 --> 00:06:38,320 We have been supported by Ministry of Electronics and IT. 128 00:06:43,880 --> 00:06:45,560 And a VC invested Rs 25 lakhs. 129 00:06:45,640 --> 00:06:48,480 Main stage NGOs invested Rs 65 lakhs. 130 00:06:48,800 --> 00:06:51,880 And in June-July, some angel investors 131 00:06:52,000 --> 00:06:55,240 and the department of science and technology invested in it. 132 00:06:55,400 --> 00:06:56,960 How much did they invest and at what valuation? 133 00:06:57,040 --> 00:07:00,840 The first investment of Rs 25 lakhs was at Rs 11 crores valuation. 134 00:07:01,040 --> 00:07:02,640 - Okay. - Rs 65 lakhs 135 00:07:02,800 --> 00:07:04,080 was at Rs 12 crores valuation. 136 00:07:04,160 --> 00:07:06,600 And now at Rs 20 crores valuation, we raised funds. 137 00:07:06,680 --> 00:07:07,560 How much? 138 00:07:07,640 --> 00:07:09,160 Rs 1.4 crores. 139 00:07:14,600 --> 00:07:16,960 I can travel on it. Show it to me. 140 00:07:17,800 --> 00:07:19,040 Here, you can 141 00:07:19,520 --> 00:07:20,800 switch it on. 142 00:07:28,840 --> 00:07:30,240 And your footrest will open. 143 00:07:30,360 --> 00:07:31,160 That's your footrest. 144 00:07:31,280 --> 00:07:33,960 Once the footrest opens, you can sit on it 145 00:07:44,320 --> 00:07:47,400 It's the best way to cut through queues. Sit on it and 146 00:07:47,560 --> 00:07:49,120 security line will automatically make way. 147 00:07:49,200 --> 00:07:50,200 - Isn't it? - Yes, Sir. 148 00:07:52,480 --> 00:07:54,520 - Oh, nice. - There's a USB for it. 149 00:07:54,600 --> 00:07:55,440 Not bad. 150 00:07:55,600 --> 00:07:57,960 And also there's a removable battery 151 00:07:58,040 --> 00:07:59,760 which just needs a click... 152 00:08:00,360 --> 00:08:01,160 - Oh! - Oh my! 153 00:08:01,240 --> 00:08:03,720 - What to do with it? - If we carry this with us, 154 00:08:03,800 --> 00:08:05,360 - You can take it to the cabin. - the staff will ask us to leave. 155 00:08:05,480 --> 00:08:07,720 - No, you can take it to the cabin. - We take it to the cabin. 156 00:08:07,840 --> 00:08:08,920 Do you want to try, Sir? 157 00:08:12,000 --> 00:08:14,200 - Make way. - Let's race. 158 00:08:14,360 --> 00:08:15,560 This button. 159 00:08:17,040 --> 00:08:17,920 Not bad. 160 00:08:19,560 --> 00:08:21,720 It's great. Takes weight. 161 00:08:22,080 --> 00:08:23,440 [music playing] 162 00:08:25,560 --> 00:08:27,640 - [bags collide] - Oh my, God! You guys! 163 00:08:27,720 --> 00:08:29,000 [indistinct] 164 00:08:30,200 --> 00:08:31,720 - But not bad. Try. - Try. 165 00:08:31,840 --> 00:08:33,640 [music playing] 166 00:08:42,000 --> 00:08:44,320 - Not bad, Radhika. - Not bad. 167 00:08:46,480 --> 00:08:49,000 You are more focused on the tech aspect, right? 168 00:08:49,080 --> 00:08:49,960 - Right now. - Yes. 169 00:08:50,080 --> 00:08:52,600 Will you please explain your technology? 170 00:08:52,760 --> 00:08:54,280 How is it exactly different? 171 00:08:55,040 --> 00:08:57,440 Okay, I'd like to give a demo. 172 00:09:03,520 --> 00:09:05,960 And I just double-tapped it. 173 00:09:06,560 --> 00:09:08,760 And my wallet will ring. 174 00:09:26,160 --> 00:09:29,480 As soon as they're 10 metres apart, both the alarms ring. 175 00:09:29,840 --> 00:09:31,200 Your mobile and wallet. 176 00:09:47,640 --> 00:09:50,120 And there's another interesting feature of map location. 177 00:09:50,200 --> 00:09:52,040 And another interesting feature is selfie. 178 00:09:55,720 --> 00:09:56,680 This wallet. 179 00:09:56,840 --> 00:09:58,800 And when you press it, 180 00:10:01,160 --> 00:10:02,040 Yes, using the phone. 181 00:10:02,040 --> 00:10:03,160 - So, it's a selfie button. - Yes. 182 00:10:03,240 --> 00:10:05,000 - It's a remote selfie button. - Remote selfie button. 183 00:10:05,680 --> 00:10:07,520 Our second technology is fingerprint lock. 184 00:10:07,640 --> 00:10:10,160 We have added it to bags. Third is Follow Me. 185 00:10:16,560 --> 00:10:19,000 Smart luggage starts from Rs 1500. 186 00:10:19,080 --> 00:10:21,000 It goes up to Rs 15,000. 187 00:10:30,680 --> 00:10:33,560 and other facilities. It's for Rs 5500. 188 00:10:33,680 --> 00:10:36,080 It is made with pure leather and has a good design. 189 00:10:36,160 --> 00:10:37,760 Apart from this, this is fingerlock 190 00:10:37,760 --> 00:10:39,680 backpack which is made out of pure leather. 191 00:10:39,800 --> 00:10:42,320 This is for Rs. 9500. 192 00:10:42,880 --> 00:10:44,680 If you look at that travel bag, 193 00:10:44,800 --> 00:10:46,800 the shining one made out of sugarcane leather. 194 00:10:46,880 --> 00:10:49,240 It starts from Rs. 3000. 195 00:10:49,320 --> 00:10:50,080 And this one? 196 00:10:50,280 --> 00:10:52,320 This one is for Rs. 50,000 now but 197 00:10:52,400 --> 00:10:54,400 in future this will range from Rs. 15,000 to Rs. 30,000. 198 00:10:54,400 --> 00:10:55,400 Rs. 50,000? 199 00:10:55,520 --> 00:10:56,520 Yes. 200 00:10:57,240 --> 00:10:58,520 That's too expensive. 201 00:10:58,720 --> 00:11:00,440 This is loaded with features and has all the versions. 202 00:11:00,520 --> 00:11:03,320 Ride on, follow me, it starts from Rs. 15,000. 203 00:11:05,920 --> 00:11:07,920 the traditional market size and this. 204 00:11:09,160 --> 00:11:12,440 Right now, luggage market is around ¤14 billion in India. 205 00:11:18,400 --> 00:11:20,120 There are two stats. One is, Rs. 50,000 crores 206 00:11:20,120 --> 00:11:21,640 and the other is ¤14 billion. 207 00:11:21,720 --> 00:11:23,600 That's a huge difference. 208 00:11:24,720 --> 00:11:26,440 And the market size of smart luggage 209 00:11:26,520 --> 00:11:29,640 will become Rs. 1000 crores in India in the next 5 years. 210 00:11:34,480 --> 00:11:36,680 Because of this, the upcoming technology is such that 211 00:11:36,920 --> 00:11:39,320 - airlines are... - 25% people lose their luggage? 212 00:11:47,520 --> 00:11:49,360 Sir, in a survey report, 213 00:11:49,440 --> 00:11:51,120 - Your statistics are a little off. - Yes. 214 00:11:51,320 --> 00:11:52,600 The total number that you mentioned... 215 00:11:52,600 --> 00:11:53,720 Your numbers don't seem right. 216 00:11:53,720 --> 00:11:55,280 Even ¤14 billion sounds wrong. 217 00:11:55,360 --> 00:11:57,720 Even this 1 out of 4 sounds wrong. 218 00:11:57,800 --> 00:11:59,600 Because losing 1 in 4 luggage is 219 00:12:00,000 --> 00:12:01,840 a very big problem. 220 00:12:01,960 --> 00:12:03,000 Luggage insurance industry 221 00:12:03,000 --> 00:12:03,680 would have emerged. 222 00:12:03,760 --> 00:12:06,400 I'm telling you because we do travel insurance. 223 00:12:06,480 --> 00:12:08,320 If it was 1 in 4, we'd have been shut down. 224 00:12:08,400 --> 00:12:11,920 You must've experienced losing your wallet or mobile phone 225 00:12:12,040 --> 00:12:13,600 many times. 226 00:12:13,800 --> 00:12:16,720 That doesn't mean you lose your wallet or phone every time. 227 00:12:16,880 --> 00:12:18,400 These are two different things. 228 00:12:19,400 --> 00:12:22,320 This is a 1 in 4 experience. 229 00:12:22,400 --> 00:12:25,000 I want to know a little bit about your manufacturing. 230 00:12:25,080 --> 00:12:27,920 Where are they manufactured and how? 231 00:12:29,160 --> 00:12:31,200 Ma'am, it's manufactured in Kolkata. 232 00:12:41,080 --> 00:12:42,520 Okay, tell me about your sales. 233 00:12:42,720 --> 00:12:45,760 Our sales in 2020-21 were Rs. 75 lakhs. 234 00:12:46,240 --> 00:12:48,880 In 2021-22, 1.57 crores. 235 00:12:49,200 --> 00:12:52,040 And in 2022-23, our sales were Rs. 3.6 crores. 236 00:12:52,040 --> 00:12:53,080 Very nice. 237 00:12:53,080 --> 00:12:55,120 Till now, we've registered sales worth Rs. 4 crores. 238 00:12:55,200 --> 00:12:55,840 Very nice. 239 00:12:55,840 --> 00:12:57,840 And we have orders worth Rs. 5 crores. 240 00:13:00,600 --> 00:13:02,720 This mainly sells on the website. 241 00:13:11,280 --> 00:13:12,840 But you don't have any offline stores? 242 00:13:13,240 --> 00:13:13,720 No. 243 00:13:13,920 --> 00:13:16,320 What sales are you expecting this year? 244 00:13:16,320 --> 00:13:18,200 We'll do around Rs. 9 crores. 245 00:13:18,280 --> 00:13:20,000 Rs. 9 crores. And secondly, 246 00:13:20,120 --> 00:13:22,440 the three categories that you have of 247 00:13:22,680 --> 00:13:24,520 luggage, smart wallets and the bags. 248 00:13:24,680 --> 00:13:28,400 Approximately, how much do each of these businesses contribute? 249 00:13:29,080 --> 00:13:30,920 We haven't launched the smart luggage yet. 250 00:13:30,920 --> 00:13:31,520 We haven't. 251 00:13:38,200 --> 00:13:40,560 - were 90% from smart wallets. - Smart wallets. 252 00:13:40,640 --> 00:13:43,120 This year, the smart bags that we've launched 253 00:13:43,240 --> 00:13:45,800 have increased our average order value too. 254 00:13:45,920 --> 00:13:49,200 And 30-40% of our sales from this 255 00:13:49,280 --> 00:13:52,120 is from bags and 50% is from wallets. 256 00:13:53,120 --> 00:13:53,920 What's the profit? 257 00:13:54,000 --> 00:13:55,760 Tell us the unit economics. 258 00:13:55,840 --> 00:14:00,320 As per unit economics, around 40% is our cost of goods sold. 259 00:14:00,560 --> 00:14:03,560 60% is gross margin and 20-25% is spent on advertising. 260 00:14:03,640 --> 00:14:07,040 Around 15% is spent on salaries and R&D. 261 00:14:07,160 --> 00:14:08,760 The rest is our profit. 262 00:14:08,840 --> 00:14:10,280 What's your profit? Tell us. 263 00:14:10,560 --> 00:14:12,800 Last month, we made a profit of Rs. 12 lakhs. 264 00:14:12,920 --> 00:14:14,080 On what sales? 265 00:14:14,200 --> 00:14:15,360 Rs. 65 lakhs. 266 00:14:15,640 --> 00:14:17,240 - About 20%. - Not bad. 267 00:14:22,080 --> 00:14:24,160 will give you a profit of Rs. 2 crores? 268 00:14:24,280 --> 00:14:25,640 Around Rs. 1.5 to 2 crores because 269 00:14:29,920 --> 00:14:30,680 Before tax. 270 00:14:35,040 --> 00:14:36,480 About 40% of it. 271 00:14:36,600 --> 00:14:38,120 Sir, look at the industry. 272 00:14:38,480 --> 00:14:39,720 There are many incumbents. 273 00:14:40,120 --> 00:14:41,440 Forget technology for a second. 274 00:14:41,680 --> 00:14:43,360 Technology can always be replicated. 275 00:14:44,280 --> 00:14:47,440 There's no intellectual property here that can't be replicated. 276 00:14:48,360 --> 00:14:50,120 So, in such a state, I don't believe 277 00:14:50,120 --> 00:14:51,840 your business is worth Rs. 9 crores. 278 00:14:53,000 --> 00:14:55,280 I'll consider it to be around Rs. 4.5 crores because 279 00:14:55,480 --> 00:14:56,280 half is B2B. 280 00:14:56,400 --> 00:14:58,240 Your own margins here are very less. And 281 00:14:58,240 --> 00:14:59,920 you may want to scale up only in D2C. 282 00:15:00,000 --> 00:15:00,640 Yes. 283 00:15:00,800 --> 00:15:03,920 Then at this scale, how will you be able to compete with 284 00:15:04,000 --> 00:15:05,680 incumbents and challengers who are even 285 00:15:05,680 --> 00:15:07,400 more heavily funded and have distribution? 286 00:15:09,160 --> 00:15:12,400 Firstly, our focus is to build a D2C brand. 287 00:15:12,480 --> 00:15:14,840 We have even undertaken influencer marketing. 288 00:15:14,920 --> 00:15:16,720 We've bartered and not paid them. 289 00:15:16,800 --> 00:15:18,560 We have received millions of views. 290 00:15:18,640 --> 00:15:20,520 We receive maximum sales from the southern 291 00:15:20,520 --> 00:15:22,320 part of India. And in the non-Hindi belt, 292 00:15:22,440 --> 00:15:23,920 this is becoming very viral. 293 00:15:51,560 --> 00:15:53,480 I'd like to give Dubai's example, 294 00:15:53,640 --> 00:15:56,440 we have signed an exclusive MOU there. 295 00:15:56,520 --> 00:16:00,680 And they have committed to sales worth Rs. 10 crores in the first year 296 00:16:00,960 --> 00:16:03,400 We're working on a similar tie-up in USA. 297 00:16:03,480 --> 00:16:05,960 The biggest distributor of Apple in USA, 298 00:16:06,080 --> 00:16:08,800 is in discussions with us to launch the brand there. 299 00:16:09,480 --> 00:16:11,680 And as far as design is concerned, we're open. 300 00:16:11,840 --> 00:16:15,240 We're maintaining our design aesthetic as a luxury. 301 00:16:15,360 --> 00:16:17,240 To create the aspiration need. 302 00:16:17,360 --> 00:16:19,400 Your bags are good, not the luggage. 303 00:16:21,280 --> 00:16:23,320 Your fonts are different everywhere. 304 00:16:23,400 --> 00:16:27,040 It's different everywhere. You haven't thought of branding. 305 00:16:28,640 --> 00:16:32,200 Anyway, there are many things that you have to prove. 306 00:16:39,760 --> 00:16:42,560 Because the competitor doesn't have your advantage as of now. 307 00:16:42,640 --> 00:16:44,480 Because he finds the market to be small. 308 00:16:44,680 --> 00:16:47,360 But as soon as you grow, your competitors will jump in. 309 00:16:48,760 --> 00:16:51,040 You'll have to move fast, that's my suggestion. 310 00:16:51,120 --> 00:16:54,200 Strengthen your technology as soon as you can. 311 00:16:54,280 --> 00:16:56,120 And grow your brand so that 312 00:16:56,240 --> 00:16:59,040 you can compete with them in terms of technology and branding. 313 00:16:59,160 --> 00:17:01,480 I'm out for now and I wish you good luck. 314 00:17:03,560 --> 00:17:06,880 Purvi, Atul, I'm out of this today. 315 00:17:07,000 --> 00:17:09,400 There are two reasons. First, I think that 316 00:17:09,560 --> 00:17:12,160 there are so many features in this 317 00:17:16,280 --> 00:17:19,360 I found it very confusing. Maybe that's why it's being gifted more. 318 00:17:19,480 --> 00:17:20,800 Not self-consumption. 319 00:17:22,000 --> 00:17:23,400 Secondly, 320 00:17:23,600 --> 00:17:25,440 investing in a business which is mainly tech, 321 00:17:25,440 --> 00:17:27,120 without the tech co-founder, 322 00:17:27,240 --> 00:17:29,800 is a little difficult today, hence I'm out. 323 00:17:30,840 --> 00:17:34,160 I think that the tech part of this business. The luggage 324 00:17:34,400 --> 00:17:35,480 as a category 325 00:17:35,560 --> 00:17:37,600 may have 2-3 important features 326 00:17:37,720 --> 00:17:39,720 in the long term. Or maybe 4-5. 327 00:17:39,800 --> 00:17:42,000 And all the big luggage companies 328 00:17:42,080 --> 00:17:44,520 will create those important features. 329 00:17:45,120 --> 00:17:47,400 And they'll have distribution and trust. 330 00:17:47,840 --> 00:17:49,120 They already have the design. 331 00:17:49,200 --> 00:17:51,520 So, competing with them might be difficult for you. 332 00:17:51,720 --> 00:17:54,320 That's why I'd like to be out. 333 00:17:55,440 --> 00:17:56,560 I have two issues. 334 00:17:56,560 --> 00:17:59,280 One is, I find this business a bit early. 335 00:18:00,320 --> 00:18:02,760 My suggestion is that you should focus 336 00:18:02,840 --> 00:18:05,760 on what is your value proposition. This or that. 337 00:18:05,960 --> 00:18:07,600 Or is it the smart wallet. I think that 338 00:18:07,720 --> 00:18:11,040 if you focus on one thing and get scale in one thing, 339 00:18:11,160 --> 00:18:12,640 then think ahead. 340 00:18:13,760 --> 00:18:17,120 Secondly, I asked you about manufacturing. 341 00:18:17,360 --> 00:18:20,120 I'm not sure about your competitive advantage. 342 00:18:20,200 --> 00:18:22,520 You don't manufacture it yourself. 343 00:18:22,680 --> 00:18:25,440 I didn't find your design to be very distinctive. 344 00:18:25,560 --> 00:18:28,960 When I see your bags, the fingerprint technology 345 00:18:29,040 --> 00:18:30,960 looks very basic. 346 00:18:31,640 --> 00:18:34,000 - I'll be out for now. - Look... 347 00:18:34,080 --> 00:18:35,560 It's a solution looking for a problem. 348 00:18:47,640 --> 00:18:51,000 I don't think that people will complicate their lives so much 349 00:18:51,160 --> 00:18:53,120 for luggage or for travel. 350 00:18:53,440 --> 00:18:56,520 Technology works best when it's seamless. 351 00:18:57,760 --> 00:18:59,600 If I have to remember so many things like 352 00:18:59,680 --> 00:19:01,400 removing the batteries and charging it, 353 00:19:02,080 --> 00:19:03,720 it's too much over my head. 354 00:19:04,160 --> 00:19:06,880 I don't think that just tech 355 00:19:06,960 --> 00:19:10,040 will revolutionize the luggage industry. 356 00:19:10,200 --> 00:19:12,720 You'll have to be great at tech and design, 357 00:19:12,840 --> 00:19:14,200 and branding. 358 00:19:15,440 --> 00:19:16,760 But the flip side, 359 00:19:17,080 --> 00:19:19,280 you have doubled every year 360 00:19:19,640 --> 00:19:21,240 and set up a business worth Rs. 9 crores. 361 00:19:21,480 --> 00:19:22,080 Yes, Sir. 362 00:19:22,160 --> 00:19:24,080 You're making a profit of Rs. 1.5-2 crores 363 00:19:24,200 --> 00:19:28,160 this year itself. This isn't an ordinary thing, I think that's big. 364 00:19:29,440 --> 00:19:32,240 Everything in me is telling me not to make this offer. 365 00:19:32,320 --> 00:19:33,880 But your numbers are so good. 366 00:19:34,040 --> 00:19:36,000 So, I think there's a bet. 367 00:19:37,000 --> 00:19:40,120 Rs. 30 lakhs debt at 18% interest for 2 years. 368 00:19:41,240 --> 00:19:43,560 And Rs. 15 lakhs 369 00:19:43,800 --> 00:19:46,440 I'll give you 370 00:19:46,960 --> 00:19:48,160 for 1% equity. 371 00:19:53,840 --> 00:19:56,240 So, Anupam, we have a counter-offer. 372 00:19:56,360 --> 00:19:58,280 Rs. 20 lakhs for 1% equity. 373 00:19:58,560 --> 00:20:00,120 And Rs. 25 lakhs in debt. 374 00:20:00,200 --> 00:20:02,800 That we can take. 18% for 2 years. 375 00:20:09,080 --> 00:20:10,400 You have a Dubai deal, isn't it? 376 00:20:11,480 --> 00:20:13,320 Conditional upon that being confirmed. 377 00:20:15,200 --> 00:20:17,280 You said Rs. 10 crores sales in that. Remember that. 378 00:20:18,920 --> 00:20:20,440 - The deal is confirmed. - All right. 379 00:22:44,080 --> 00:22:48,000 Our ask is Rs. 55 lakhs for 1% equity. 380 00:22:52,200 --> 00:22:54,000 In the era of UPI, you buy a chocolate worth Rs. 2 381 00:22:54,080 --> 00:22:56,360 through your preferred UPI application. 382 00:22:56,440 --> 00:22:58,960 Shopkeepers have multiple QR codes 383 00:22:59,040 --> 00:23:00,680 and card machines to facilitate transactions. 384 00:23:00,800 --> 00:23:02,840 A significant number of transactions are still done in cash, 385 00:23:02,920 --> 00:23:05,040 and they continue to offer credit to customers. 386 00:23:05,120 --> 00:23:07,720 Sharks, the problem lies in the fact that these shopkeepers 387 00:23:07,800 --> 00:23:09,680 lack a convenient method 388 00:23:09,760 --> 00:23:11,120 to record these transactions. 389 00:23:11,240 --> 00:23:12,680 Although there are several apps available 390 00:23:12,760 --> 00:23:14,560 to assist with recording transactions, 391 00:23:14,680 --> 00:23:18,240 the issue is that their mobile phones aren't always on the counter. 392 00:23:18,320 --> 00:23:21,840 It's often kept in their pockets, stored elsewhere, or being charged. 393 00:23:21,920 --> 00:23:23,320 They have to pull out their phone, 394 00:23:23,400 --> 00:23:26,080 unlock it, open the app 395 00:23:26,160 --> 00:23:28,120 and manually input transaction details. 396 00:23:28,280 --> 00:23:30,960 We observed something interesting. Shopkeepers often 397 00:23:31,200 --> 00:23:33,760 resort to using normal calculators. 398 00:23:33,840 --> 00:23:36,080 Such calculators are found in every shop. 399 00:23:36,160 --> 00:23:37,120 We came up with a concept 400 00:23:37,200 --> 00:23:38,920 where shopkeepers can use a calculato 401 00:23:39,040 --> 00:23:41,800 to document their transactions as either sales or expenses. 402 00:23:41,920 --> 00:23:43,520 So, Sharks, introducing 403 00:23:43,600 --> 00:23:46,280 the world's first smart calculator, Tohands Calculator. 404 00:23:50,960 --> 00:23:52,920 cash-in and cash-out, through which 405 00:23:53,000 --> 00:23:55,040 the shopkeeper can track 406 00:24:19,840 --> 00:24:21,720 and simple solution for the shopkeepers. 407 00:24:27,520 --> 00:24:29,760 in efficiently managing their finances. 408 00:24:29,840 --> 00:24:31,440 So, Sharks! Let's calculate the deal. 409 00:24:31,520 --> 00:24:33,760 Oh! Nice! 410 00:24:33,880 --> 00:24:35,880 - Welcome to Shark Tank! - Thank you, Varun. 411 00:24:36,000 --> 00:24:38,000 - Your pitch is quite interesting. - Thank you. 412 00:24:38,080 --> 00:24:41,280 First, I'd like each of you to share a bit about your background. 413 00:24:41,360 --> 00:24:44,120 Sharks, I am from Pratapgarh district in UP. 414 00:24:47,960 --> 00:24:49,600 After dropping out of college, 415 00:24:49,680 --> 00:24:52,240 I made first app. ByBuy seller app. 416 00:24:52,320 --> 00:24:54,760 It was during that process that I came up with Tohands smart Calculator 417 00:24:54,840 --> 00:24:57,000 Now, we are making smart calculators. 418 00:24:57,080 --> 00:24:58,320 I come from Tamil Nadu. 419 00:25:01,200 --> 00:25:02,440 in Erode. 420 00:25:02,520 --> 00:25:03,920 I am into hardware. 421 00:25:04,760 --> 00:25:06,160 I am Satyam, I am from Kanpur. 422 00:25:10,360 --> 00:25:12,040 How old are the three of you? 423 00:25:12,120 --> 00:25:13,960 - I am 22 right now. - 22? - Yes. 424 00:25:14,080 --> 00:25:16,040 - Wow! - I am 26. - And I am 31. 425 00:25:16,120 --> 00:25:17,760 - Who is the CEO? - I am. 426 00:25:17,880 --> 00:25:19,360 - You are 22 years old. - Yes. 427 00:25:19,600 --> 00:25:21,600 - And they are 26 and 31. - Yes. 428 00:25:21,680 --> 00:25:23,920 - Do they listen to you? - Yes, they do. 429 00:25:24,000 --> 00:25:25,400 Show us your product. 430 00:25:26,600 --> 00:25:28,360 [theme music playing] 431 00:25:36,480 --> 00:25:37,640 I can't turn this on. 432 00:25:37,760 --> 00:25:39,640 - Press the power button. - What? 433 00:25:39,720 --> 00:25:40,920 Press the button. 434 00:25:41,000 --> 00:25:42,320 It's not powering up, even though I'm pressing it. 435 00:25:42,400 --> 00:25:43,880 - It will take time. - Press the button properly. 436 00:25:43,960 --> 00:25:47,360 - It's slow! - Not the best initial response. 437 00:25:47,880 --> 00:25:48,880 It powered up. 438 00:25:49,000 --> 00:25:51,240 Version 3 is a prototype version. 439 00:25:51,320 --> 00:25:53,320 - Is this version 3? - It is version 3. 440 00:25:53,440 --> 00:25:55,520 The hardware is going through various iterations. 441 00:25:55,600 --> 00:25:58,120 The key thing to note is that version 3 442 00:25:58,240 --> 00:25:59,680 is not a finalized version. 443 00:25:59,760 --> 00:26:02,360 It is currently available in the market as a prototype. 444 00:26:02,440 --> 00:26:05,200 I'd like to demonstrate something, Aman. Let's say, 445 00:26:09,720 --> 00:26:12,680 You purchased a packet of bread for Rs. 45, 446 00:26:12,760 --> 00:26:14,960 milk for Rs. 23, 447 00:26:15,080 --> 00:26:17,600 and lentils for Rs. 80. 448 00:26:17,600 --> 00:26:19,520 - Okay. - The total amount comes to 148. 449 00:26:19,600 --> 00:26:22,160 Mr. Mishra has to click on the 'Cash-in' button to record the sale. 450 00:26:22,240 --> 00:26:24,160 Now, since you made an online payment, 451 00:26:24,280 --> 00:26:25,800 Mr. Mishra needs to click 452 00:26:25,880 --> 00:26:28,560 the 'Cash-in' button twice to change the payment type to 'online'. 453 00:26:28,640 --> 00:26:31,680 Once he hits 'Enter', the transaction will be saved 454 00:26:31,800 --> 00:26:34,040 and synced with our Tohands app. 455 00:26:34,120 --> 00:26:35,880 You can see the amount of Rs. 148 here. 456 00:26:35,960 --> 00:26:38,000 Aman doesn't pay with cash, he prefers credit. 457 00:26:38,080 --> 00:26:40,400 - So, show that. - We have a solution for it. 458 00:26:40,520 --> 00:26:43,040 Let's assume, you bought a packet of bread for Rs. 45, 459 00:26:43,120 --> 00:26:45,280 and lentils for Rs. 89 on credit. 460 00:26:45,360 --> 00:26:47,520 The merchant needs to select the 'Cash-in' button, 461 00:26:47,600 --> 00:26:50,360 - switch the payment method to 'credit', and press 'enter'. - Okay. 462 00:26:50,440 --> 00:26:52,800 The credit has been recorded now. 463 00:26:53,760 --> 00:26:55,320 Now, let's say a vendor 464 00:26:55,440 --> 00:26:57,280 came to Mr. Mishra's shop and Mr. Mishra 465 00:26:57,280 --> 00:26:59,160 purchased the items worth Rs. 10,000. 466 00:26:59,240 --> 00:27:01,360 Mr. Mishra will click 'Cash Out' after calculating 467 00:27:01,440 --> 00:27:03,760 the final amount and then press the 'Next Extra' button. 468 00:27:03,840 --> 00:27:07,760 - You will need to enter the user's mobile number. - Okay. 469 00:27:07,840 --> 00:27:09,760 Will the system recognize this mobile number 470 00:27:09,840 --> 00:27:11,560 if it is on your list? 471 00:27:11,640 --> 00:27:13,840 Each user has a customer ID, which will be recognized automatically. 472 00:27:13,920 --> 00:27:16,480 You don't need to enter the number again, just enter the ID. 473 00:27:16,560 --> 00:27:18,000 Basically, you are saying 474 00:27:18,120 --> 00:27:20,880 - that you are creating a ledger using a calculator on the go. -Yes. 475 00:27:21,000 --> 00:27:22,480 - On the go. - Is that right? - Correct. 476 00:27:22,600 --> 00:27:26,280 - Did you do an on-ground check with the retailers? - Yes. 477 00:27:26,360 --> 00:27:28,120 Are they using it as a regular calculator, 478 00:27:28,240 --> 00:27:31,400 or have they started keeping track of their accounts? 479 00:27:31,520 --> 00:27:33,200 Did you see the adoption? 480 00:27:33,320 --> 00:27:34,440 Yes, we have. 481 00:27:34,520 --> 00:27:36,960 Our product went viral on Instagram. 482 00:27:37,080 --> 00:27:38,920 It garnered over 30 million views and 483 00:27:38,920 --> 00:27:40,120 was shared more than 1 million times. 484 00:27:40,280 --> 00:27:41,520 What do you mean by 'it went viral'? 485 00:27:41,600 --> 00:27:42,880 Considering that this product 486 00:27:42,960 --> 00:27:46,160 - addresses a crucial need for shopkeepers. - It does. 487 00:27:46,280 --> 00:27:48,840 They will likely share it with other shopkeepers, don't you think? 488 00:27:48,920 --> 00:27:51,800 Getting a POS with a calculator 489 00:27:55,640 --> 00:27:57,280 When you made this, 490 00:27:57,360 --> 00:27:59,120 and showed it to a shopkeeper, 491 00:27:59,400 --> 00:28:00,520 what was their feedback? 492 00:28:00,640 --> 00:28:01,920 Currently, we document 493 00:28:02,000 --> 00:28:03,880 over 80,000 transactions on a monthly basis. 494 00:28:03,960 --> 00:28:05,080 How many shopkeepers contribute to this figure? 495 00:28:05,200 --> 00:28:06,320 Around 1000. 496 00:28:13,440 --> 00:28:15,960 Where are your 1000 shopkeepers 497 00:28:16,040 --> 00:28:18,000 based and what type of retailers are they? 498 00:28:18,120 --> 00:28:21,160 There are grocery stores, hardware stores, electronics stores, 499 00:28:21,240 --> 00:28:22,120 clothing stores, 500 00:28:22,200 --> 00:28:23,880 small clinics, 501 00:28:23,960 --> 00:28:25,480 and small manufacturing businesses that monitor their 502 00:28:25,480 --> 00:28:26,320 sales and expenses. 503 00:28:26,440 --> 00:28:28,880 Where are they based? In Tier 1 cities or Tier 2 cities? 504 00:28:28,960 --> 00:28:30,840 Majority is in Tier 1 cities for now. 505 00:28:34,960 --> 00:28:37,760 It is not something complex to build into an ordinary calculator. 506 00:28:38,720 --> 00:28:40,240 You just have to add a couple of buttons. 507 00:28:40,320 --> 00:28:42,280 This is not a very complicated thing 508 00:28:42,360 --> 00:28:45,000 that an existing calculator company cannot do. 509 00:28:45,160 --> 00:28:46,000 Why haven't they done it? 510 00:28:46,120 --> 00:28:47,800 They have always looked at it like a tool used to calculate. 511 00:28:47,880 --> 00:28:49,800 We view it as a tool 512 00:28:49,880 --> 00:28:51,480 for those who are unable to invest in a billing machine, 513 00:28:51,600 --> 00:28:54,600 offering them a simplified alternative. 514 00:28:54,680 --> 00:28:56,000 You are right. 515 00:28:56,360 --> 00:28:57,880 You must ensure that the phone remains powered on 516 00:28:57,960 --> 00:29:00,000 and activate the app. There is a lot of friction. 517 00:29:00,160 --> 00:29:02,080 There is no better way than this. 518 00:29:02,520 --> 00:29:05,400 However, in Western countries, 519 00:29:05,680 --> 00:29:08,520 utilizing POS 520 00:29:08,720 --> 00:29:11,200 resolves all the problems in one place. 521 00:29:11,400 --> 00:29:13,840 Have you introduced a transitional technology? 522 00:29:13,920 --> 00:29:15,720 As India is moving towards POS. 523 00:29:15,800 --> 00:29:17,880 Our point of view is that 524 00:29:17,960 --> 00:29:20,560 we had normal watches. 525 00:29:20,640 --> 00:29:21,560 Now, we buy smart watches. 526 00:29:30,080 --> 00:29:31,320 POS machines are expensive. 527 00:29:31,440 --> 00:29:32,360 They are also complex. 528 00:29:32,440 --> 00:29:33,520 You have to hire someone 529 00:29:33,640 --> 00:29:35,880 and train them to manage inventories. 530 00:29:36,000 --> 00:29:38,680 Majority of shops have 'galla' out in the open. 531 00:29:38,760 --> 00:29:41,600 They lack inventory for all the items. They don't have SKU data. 532 00:29:41,720 --> 00:29:43,920 Hence, it becomes challenging to implement POS in India. 533 00:29:44,080 --> 00:29:47,400 We are of the opinion that until the adoption of POS reaches a point 534 00:29:47,480 --> 00:29:49,680 where more than 50% of the shopkeepers 535 00:29:49,760 --> 00:29:51,160 start using it, 536 00:29:51,240 --> 00:29:52,960 this product will continue to be in demand. 537 00:29:54,360 --> 00:29:56,240 Hurry up and tell us your sales. 538 00:29:56,320 --> 00:29:58,520 Our total revenue is Rs. 29 lakhs. 539 00:29:58,640 --> 00:30:00,480 We started selling in January, From January until now. 540 00:30:03,320 --> 00:30:04,720 How much is this product made for? 541 00:30:04,800 --> 00:30:06,640 Rs. 2,200 is the cost of goods sold. 542 00:30:10,360 --> 00:30:11,840 There is a subscription on our app. 543 00:30:17,960 --> 00:30:19,800 July, and the previous month? 544 00:30:19,920 --> 00:30:21,400 Our sales in January were Rs. 1.5 lakhs. 545 00:30:21,520 --> 00:30:23,440 In July, our sales were Rs. 13 lakhs. 546 00:30:28,720 --> 00:30:31,560 We have a waiting list of 5,600 customers. 547 00:30:31,640 --> 00:30:33,120 Through which, we are selling to the customers. 548 00:30:33,200 --> 00:30:35,560 Didn't you raise funds for inventory? 549 00:30:35,640 --> 00:30:36,800 Are you bootstrapped? 550 00:30:36,880 --> 00:30:38,520 No, we raised funds. 551 00:30:38,600 --> 00:30:41,360 Pre-seed round of Rs. 55 lakhs from T-Hub and other investors. 552 00:30:41,440 --> 00:30:42,840 We raised it 553 00:30:42,920 --> 00:30:44,200 - last year. - How much has it been diluted? 554 00:30:44,280 --> 00:30:47,200 - It's a CCD investment. - How much is the cap? 555 00:30:47,400 --> 00:30:49,320 There is no cap. It was on post-money valuation. 556 00:30:49,400 --> 00:30:50,760 - How much? - 20% discount. 557 00:30:50,840 --> 00:30:52,400 - Has it been converted? - Yes, it has been. 558 00:30:52,480 --> 00:30:53,880 So, did you raise another round? 559 00:30:54,000 --> 00:30:56,120 - How much is it? Tell me in detail. - We raised a seed round 560 00:30:56,200 --> 00:30:57,120 for Rs. 3 crores. 561 00:30:57,200 --> 00:30:58,920 At a valuation of Rs. 29 crores. 562 00:31:03,480 --> 00:31:05,200 We are building up the production capacity. 563 00:31:11,040 --> 00:31:13,440 For version 4, 40% will be put towards inventory. 564 00:31:13,960 --> 00:31:15,560 Remaining 60% will be used for research and development and growth. 565 00:31:15,640 --> 00:31:17,480 Is Rs. 55 lakhs enough for you? 566 00:31:17,560 --> 00:31:19,320 We are headed towards larger scale manufacturing. 567 00:31:19,400 --> 00:31:21,600 We are also looking at the option of inventory finance. 568 00:31:22,160 --> 00:31:23,880 The problem we faced with version 3 569 00:31:23,880 --> 00:31:25,440 was that our supply chain was unstable. 570 00:31:25,520 --> 00:31:27,320 - Our vendor... - From where do you get it made? 571 00:31:27,440 --> 00:31:29,320 - For now, we assemble it in our office. - Oh! 572 00:31:29,400 --> 00:31:30,680 - That is nice. - Very impressive I think. 573 00:31:30,760 --> 00:31:31,680 Good job! 574 00:31:32,600 --> 00:31:34,920 What's your ownership structure? 575 00:31:35,040 --> 00:31:37,120 So currently, I own 34 per cent. 576 00:31:37,520 --> 00:31:38,880 I own 23 per cent. 577 00:31:38,960 --> 00:31:40,200 I own 13 per cent. 578 00:31:40,280 --> 00:31:42,440 That accounts for 70 per cent. 579 00:31:42,520 --> 00:31:43,680 Yes, it accounts for 70 per cent. 580 00:31:43,760 --> 00:31:45,200 ESOPs is 8 per cent. 581 00:31:45,280 --> 00:31:47,440 - 70 per cent between you three. - 8 per cent ESOPs. 582 00:31:47,520 --> 00:31:49,400 - 8 per cent. - I have 37 per cent. 583 00:31:49,520 --> 00:31:51,000 Yes, okay. Sorry. 584 00:31:52,000 --> 00:31:54,360 To make this, it costs you Rs 2200. 585 00:31:58,640 --> 00:32:00,120 The cost is so high. 586 00:32:00,200 --> 00:32:03,360 Yes, in version 4, you have colour LCD display. 587 00:32:03,400 --> 00:32:04,040 Okay. 588 00:32:16,320 --> 00:32:18,360 We will require Rs 3500 initially. 589 00:32:18,480 --> 00:32:20,320 - As a lot... - Large scale, the cost will reduce. 590 00:32:20,400 --> 00:32:22,960 You will be left with Rs 1500. What are your other costs? 591 00:32:23,040 --> 00:32:24,240 No, other costs are not high. 592 00:32:24,320 --> 00:32:26,120 Do you charge for subscription? 593 00:32:26,200 --> 00:32:27,720 Yes. The shopkeepers 594 00:32:27,800 --> 00:32:29,960 receive a free sample for use from us. 595 00:32:30,040 --> 00:32:31,400 They can use it as much as they want. 596 00:32:39,720 --> 00:32:41,680 - Per month? - How many people are subscribing? 597 00:32:41,800 --> 00:32:44,000 We will include subscription from Version 4. 598 00:32:45,360 --> 00:32:48,240 So, we received a lot of feedback about Version 3. So, in Version 4, 599 00:32:48,440 --> 00:32:49,880 for example, 600 00:32:54,760 --> 00:32:56,680 and they can pay for that exact amount. 601 00:33:27,200 --> 00:33:30,480 Interesting. You worked at the grassroots level. 602 00:33:30,560 --> 00:33:32,040 You understand the agony of shopkeepers. 603 00:33:32,120 --> 00:33:33,560 But I feel that 604 00:33:33,640 --> 00:33:35,160 in the front end, 605 00:33:35,240 --> 00:33:37,120 there are 2-3 things required for billing automation. 606 00:33:37,200 --> 00:33:38,440 There's cash register, 607 00:33:38,720 --> 00:33:41,040 which records the money debited and credited. 608 00:33:41,120 --> 00:33:42,120 - Right? - Yes. 609 00:33:42,200 --> 00:33:44,960 Secondly, at the complexity level, POS. 610 00:33:45,040 --> 00:33:47,920 You're saying that you will venture below that. 611 00:33:48,040 --> 00:33:48,440 Yes. 612 00:33:48,480 --> 00:33:49,800 Because in India 613 00:33:49,880 --> 00:33:52,200 you require this level of simplicity and you will tread up slowly 614 00:33:52,280 --> 00:33:53,560 because you're ultimately headed there. 615 00:33:53,640 --> 00:33:54,880 - Yes. - The way you said it. 616 00:33:54,960 --> 00:33:56,440 So, you're saying that 617 00:33:56,920 --> 00:33:59,480 forget the POS and cash register in the market. 618 00:33:59,560 --> 00:34:01,680 Buy my product and I'll take you on that journey. 619 00:34:01,720 --> 00:34:03,080 It doesn't fit somehow. 620 00:34:03,080 --> 00:34:04,880 What's the price of cash register? 621 00:34:04,960 --> 00:34:06,800 Between Rs 15 and 30. 622 00:34:06,880 --> 00:34:08,360 Cash register. And POS? 623 00:34:08,440 --> 00:34:09,240 More than Rs 40,000. 624 00:34:09,320 --> 00:34:11,480 Do you have to pay that money or do you get it for free 625 00:34:11,560 --> 00:34:13,040 so that you can bill through them? 626 00:34:13,120 --> 00:34:14,040 No, we have to pay. 627 00:34:14,120 --> 00:34:15,720 - You have to pay. - We have to set up a system. 628 00:34:15,720 --> 00:34:16,680 And I'd like to answer something. 629 00:34:16,680 --> 00:34:18,680 - Yes. - The billing machines at present 630 00:34:18,800 --> 00:34:20,520 have no online feature. 631 00:34:20,640 --> 00:34:22,720 If you make a sale through that cash register, 632 00:34:22,840 --> 00:34:24,040 at the end of the day, you get a roll. 633 00:34:24,120 --> 00:34:25,120 - Correct. - You receive input. 634 00:34:27,800 --> 00:34:29,920 If you want to check last month's sale, 635 00:34:30,040 --> 00:34:31,320 you have to pull out last month's roll. 636 00:34:31,440 --> 00:34:33,960 You will mostly see Trucount's cash register, 637 00:34:34,040 --> 00:34:36,880 and all their transactions are recorded offline. 638 00:34:37,000 --> 00:34:38,160 You have to print it out and store it. 639 00:34:38,240 --> 00:34:41,080 But basically, the business of cash registers. 640 00:34:41,120 --> 00:34:41,480 Yeah. 641 00:34:41,520 --> 00:34:43,240 If their business can function, 642 00:34:43,320 --> 00:34:46,520 in spite of there being a POS. So can yours. 643 00:34:46,680 --> 00:34:47,640 We believe that 644 00:34:47,760 --> 00:34:49,600 our product is affordable. 645 00:34:49,680 --> 00:34:52,560 Shopkeeper buys a phone worth Rs 10,000-15,000. 646 00:34:52,640 --> 00:34:54,040 They want to be smart. 647 00:34:54,120 --> 00:34:56,840 The first step is to use smart calculator, 648 00:34:57,040 --> 00:35:00,440 try the device and slowly they will adopt the technology. 649 00:35:01,240 --> 00:35:03,840 There is a bit of a use case. 650 00:35:04,280 --> 00:35:05,920 - There is a bit of a use case. - Yeah. 651 00:35:06,000 --> 00:35:07,520 Yes, but as far as I know 652 00:35:07,640 --> 00:35:11,120 use case is primarily for cash ledger. 653 00:35:11,200 --> 00:35:12,640 Not as a POS system. 654 00:35:17,280 --> 00:35:20,440 No, calculating is fine. But to pull out GST records. 655 00:35:20,480 --> 00:35:21,480 - No. - That's not possible. 656 00:35:21,480 --> 00:35:24,680 So, only how much cash is in the drawer. 657 00:35:24,760 --> 00:35:26,120 - The ledger. - Yes, that's what he's saying. 658 00:35:26,160 --> 00:35:26,880 How much money is in the drawer. 659 00:35:26,880 --> 00:35:28,480 - Money. - It's a physical ledger book. 660 00:35:28,560 --> 00:35:30,600 Our value proposition for shopkeepers is pretty simple. 661 00:35:30,720 --> 00:35:32,040 It helps keep account of every penny. 662 00:35:32,160 --> 00:35:33,840 - We got it. - Who gave, how much, 663 00:35:33,920 --> 00:35:35,400 and what was the payment type? 664 00:35:35,480 --> 00:35:37,160 Nobody else has made this. 665 00:35:37,240 --> 00:35:38,280 Not yet. 666 00:35:38,360 --> 00:35:39,440 Good. Not bad. 667 00:35:39,520 --> 00:35:41,200 I think it's got a use case. 668 00:35:42,160 --> 00:35:44,360 But, Praveen, at the age of 22, 669 00:35:44,440 --> 00:35:47,080 your depth of work is very impressive. 670 00:35:47,160 --> 00:35:48,360 Very commendable. 671 00:35:48,760 --> 00:35:51,960 The way you explained the problems of shopkeepers. 672 00:35:52,080 --> 00:35:54,160 You spend a lot of time in the market. 673 00:35:54,360 --> 00:35:56,320 I've been working on this problem for the last 6 years. 674 00:35:56,360 --> 00:35:57,080 - 6 years? - Yes. 675 00:35:57,080 --> 00:35:58,680 Earlier, he had a company in this domain. 676 00:35:58,800 --> 00:36:00,600 Earlier, we used to make ByBuy Seller app 677 00:36:00,720 --> 00:36:02,680 where shopkeepers could create their shops online 678 00:36:02,760 --> 00:36:03,920 and could sell in nearby areas. 679 00:36:04,000 --> 00:36:07,480 We had 7000 shopkeepers. My job was to bring them on board. 680 00:36:07,600 --> 00:36:10,800 I noticed that there's an aunty in a store in Bangalore. 681 00:36:10,840 --> 00:36:13,960 She used to calculate the amount, write it on the paper, 682 00:36:14,040 --> 00:36:15,400 and then use a calculator again 683 00:36:15,520 --> 00:36:17,840 to calculate the numbers on the paper to find the final amount. 684 00:36:17,960 --> 00:36:18,960 To calculate the sales for the day. 685 00:36:19,040 --> 00:36:21,560 I got an idea that what if we can record it? 686 00:36:21,640 --> 00:36:23,400 How did you decide to make a team? 687 00:36:23,480 --> 00:36:26,920 I've always felt that it's all about a team. I'm not doing it alone. 688 00:36:27,000 --> 00:36:28,760 My team does everything. 689 00:36:28,840 --> 00:36:30,840 He's making the hardware, he's making the software, 690 00:36:30,920 --> 00:36:32,360 I'm just marketing it. 691 00:36:32,440 --> 00:36:35,280 I have a team of 22 people. They work really hard. 692 00:36:35,360 --> 00:36:36,720 My work is not much. 693 00:36:36,800 --> 00:36:38,960 - Your sales-- - It's the same with me. 694 00:36:39,040 --> 00:36:40,640 How do you do sales, Praveen? 695 00:36:40,720 --> 00:36:42,440 Our sales are online at present. 696 00:36:43,200 --> 00:36:45,200 Multiple times, 697 00:36:45,360 --> 00:36:47,280 our product went viral. 698 00:36:47,400 --> 00:36:48,640 Indian Express wrote about it. 699 00:36:48,720 --> 00:36:50,480 We made the highest initial sale after that. 700 00:36:50,560 --> 00:36:53,560 After that, a YouTuber made a video and we had great sales. 701 00:36:53,640 --> 00:36:54,960 Then after that 702 00:36:55,040 --> 00:36:56,960 whenever we do sales, we meet the customer. 703 00:36:57,040 --> 00:37:00,600 I used to handle the customer support until July. 704 00:37:00,680 --> 00:37:03,080 - Okay. - All the customers know me. 705 00:37:03,160 --> 00:37:04,800 I used to get direct feedback from them. 706 00:37:06,480 --> 00:37:08,040 Amazing. What else will you do? 707 00:37:08,120 --> 00:37:10,280 What next after calculator? Or is the end of it? 708 00:37:10,400 --> 00:37:12,080 In the next 2-3 years, we will 709 00:37:12,120 --> 00:37:14,120 deploy 1 million units in the market. 710 00:37:14,200 --> 00:37:15,480 - Okay. - Yeah. 711 00:37:17,720 --> 00:37:20,800 - Oh. - Oh! 712 00:37:21,640 --> 00:37:24,920 I'd like to do Rs 30 lakhs as equity. 713 00:37:25,000 --> 00:37:27,840 And Rs 25 lakhs as debt at 12 per cent. 714 00:37:28,080 --> 00:37:30,080 - For? - For 1 per cent. Same. 715 00:37:31,360 --> 00:37:33,400 - For how many years? - 2 years. 716 00:37:39,240 --> 00:37:40,920 - It's a good offer. - It's a good offer. 717 00:37:42,800 --> 00:37:44,920 Tell me what's your biggest 718 00:37:45,320 --> 00:37:48,440 differentiator or variable for long-term sustainability? 719 00:37:49,480 --> 00:37:51,040 A good quality hardware. 720 00:37:51,160 --> 00:37:53,000 And solid distribution. 721 00:37:53,080 --> 00:37:54,400 - Look, Praveen. - No. 722 00:37:54,400 --> 00:37:56,040 Conceptual questions are never-ending. 723 00:37:56,120 --> 00:37:57,000 What do you want to do? 724 00:37:57,080 --> 00:37:59,040 [music playing] 725 00:37:59,120 --> 00:38:00,800 Okay, I can also make an offer. 726 00:38:02,680 --> 00:38:04,800 - Oh! Another offer! - Another offer. 727 00:38:21,160 --> 00:38:23,800 So, I'll make the same offer as Varun. 728 00:38:28,560 --> 00:38:30,840 Actually, I think combined between both of us. 729 00:38:30,880 --> 00:38:31,280 Yes. 730 00:38:31,280 --> 00:38:33,040 - We both belong to this domain. - Absolutely. 731 00:38:44,760 --> 00:38:46,240 Partnerships will require more effort. 732 00:38:46,320 --> 00:38:48,320 - Because that relationship is long-term. - Okay! 733 00:38:48,400 --> 00:38:51,120 - In banks and financial... - Banks and financial services. 734 00:38:51,880 --> 00:38:52,840 I am out. 735 00:38:54,040 --> 00:38:57,040 You said you needed help with partnerships. 736 00:38:58,640 --> 00:39:01,280 If you needed help with brand and sales, 737 00:39:01,400 --> 00:39:02,840 I would've thought it made sense 738 00:39:02,920 --> 00:39:04,280 to get involved in this wrestling match. 739 00:39:04,360 --> 00:39:06,800 - Really? - So, enjoy the wrestling match. 740 00:39:08,320 --> 00:39:10,360 You are amazing. 741 00:39:10,600 --> 00:39:12,280 Great entrepreneurial spirit. 742 00:39:12,360 --> 00:39:13,760 I believe 743 00:39:13,840 --> 00:39:17,680 that until the release of version 4, 744 00:39:17,800 --> 00:39:20,920 we won't have proof of where this company is headed. 745 00:39:21,080 --> 00:39:22,480 It seems like you will make it work. 746 00:39:22,560 --> 00:39:24,200 Moreover, you have attractive offers 747 00:39:24,280 --> 00:39:26,040 and he has increased the valuation for you. 748 00:39:26,120 --> 00:39:27,760 I can't offer such a high valuation. 749 00:39:27,840 --> 00:39:29,120 Unfortunately, even I am out. 750 00:39:29,280 --> 00:39:30,240 Thank you so much. 751 00:39:30,320 --> 00:39:32,560 - Do you need debt? - Debt? No! 752 00:39:32,680 --> 00:39:35,000 Take Rs. 55 lakhs 753 00:39:35,120 --> 00:39:36,400 for 1.50% and end it. 754 00:39:41,920 --> 00:39:44,120 Keeping that in mind, we've come up with this offer. 755 00:39:44,200 --> 00:39:46,680 You've already diluted 20% of the equity. 756 00:39:46,760 --> 00:39:49,160 The reason I was giving debt is because I don't want to 757 00:39:49,240 --> 00:39:51,800 dilute too much equity. Currently, we only have proof of concept. 758 00:39:53,320 --> 00:39:55,640 - But debt is too early in the process. - I agree. 759 00:39:55,760 --> 00:39:57,320 - Right! - I would like to delay it. 760 00:39:57,440 --> 00:39:58,920 Let's give you better terms. 761 00:39:59,000 --> 00:40:01,200 - Instead of 12%, make it 10%. - Yes, I am okay with it. 762 00:40:08,760 --> 00:40:11,280 - Don't you want to take debt whatsoever? - Not yet. 763 00:40:11,360 --> 00:40:13,120 Listen! Rs. 60 lakhs for 2%. 764 00:40:25,400 --> 00:40:26,920 And there is Varun Dua 765 00:40:27,000 --> 00:40:29,200 and Radhika ma'am's offer of Rs. 60 lakhs for 2%. 766 00:40:29,320 --> 00:40:31,520 [suspenseful music playing] 767 00:40:32,960 --> 00:40:34,200 I have a counteroffer for Mr. Varun, 768 00:40:34,200 --> 00:40:35,800 Ms. Radhika and Mr. Anupam. 769 00:40:35,880 --> 00:40:37,840 Rs. 80 lakhs for 2% equity. 770 00:40:43,680 --> 00:40:46,120 Currently, your fair valuation... 771 00:40:46,280 --> 00:40:48,600 - Around Rs. 20 crores. - With thousand... Not even that much. 772 00:40:48,680 --> 00:40:51,520 The maximum valuation should be Rs. 10-15 crores. 773 00:40:53,840 --> 00:40:56,160 I increased the valuation because there was intensity here. 774 00:40:56,240 --> 00:40:57,880 But I think it is unfair 775 00:40:57,960 --> 00:40:59,760 to give that kind of valuation 776 00:40:59,880 --> 00:41:00,880 at this point. 777 00:41:01,160 --> 00:41:03,960 So, I will be out. They can bring down the valuation. 778 00:41:04,040 --> 00:41:05,400 Because that is the right valuation. 779 00:41:05,480 --> 00:41:06,840 I won't offer a higher bid. 780 00:41:08,400 --> 00:41:10,600 If there was no previous round, 781 00:41:10,800 --> 00:41:13,080 I wouldn't have valued it at more than Rs. 15 crores. 782 00:41:13,160 --> 00:41:15,080 - Because effectively, this is a pre-revenue company. - I agree. 783 00:41:15,160 --> 00:41:17,280 It might get difficult to raise money in the future. 784 00:41:18,120 --> 00:41:20,720 You have one offer. Rs. 60 lakhs for 2% 785 00:41:20,800 --> 00:41:22,400 from Varun and Radhika. So, tell us. 786 00:41:26,720 --> 00:41:28,280 Radhika and Varun, we have a deal. 787 00:41:35,240 --> 00:41:36,640 [camera clicks] 788 00:41:38,880 --> 00:41:40,640 We got a deal! 789 00:41:41,400 --> 00:41:42,640 - The founder is amazing! - Good founder 790 00:41:42,720 --> 00:41:45,400 - but expensive. - This is the young person you want to give capital to. 791 00:41:45,480 --> 00:41:48,520 Rooted! He knows his business. Solving an Indian problem. 792 00:41:48,600 --> 00:41:50,320 He will do whatever it takes. He will pivot, but figure things out. 793 00:41:50,400 --> 00:41:52,040 - He will do something sensible. - He will make something. 794 00:41:52,120 --> 00:41:52,960 He will! 795 00:43:03,800 --> 00:43:07,000 Sharks, we found out about a brilliant scheme. 796 00:43:08,240 --> 00:43:10,200 You can double your money in 21 days. 797 00:43:11,360 --> 00:43:12,720 - Hold on! - Huh? 798 00:43:12,800 --> 00:43:14,520 This is a scam and not a scheme. 799 00:43:15,640 --> 00:43:16,520 Sharks! 800 00:43:16,680 --> 00:43:20,080 You must have heard about such schemes in movies or the market. 801 00:43:20,480 --> 00:43:22,320 But there is one place where your money is safe 802 00:43:22,520 --> 00:43:23,920 - and that is gold. - Hmm! 803 00:43:24,240 --> 00:43:26,960 And that's why Indians have been investing in gold for many years. 804 00:43:27,400 --> 00:43:30,640 Indian women have around 25,000 tonnes of gold. 805 00:43:36,680 --> 00:43:38,680 worth of gold and gold jewellery is purchased. 806 00:43:43,400 --> 00:43:45,560 advance purchase plans or gold jewellery savings plans. 807 00:43:51,960 --> 00:43:54,320 In 10+1 schemes. 808 00:43:54,560 --> 00:43:56,800 Shivani visits the jeweller on a monthly basis 809 00:43:56,880 --> 00:43:58,960 to deposit money. 810 00:43:59,200 --> 00:44:01,040 And the jeweller gives her the 11th month's instalment 811 00:44:01,120 --> 00:44:02,680 as a discount 812 00:44:02,800 --> 00:44:04,400 so that she can buy jewellery from him. 813 00:44:04,520 --> 00:44:07,680 But Sharks, the drawback of such schemes is the lack of flexibility. 814 00:44:07,880 --> 00:44:11,200 As customers can't withdraw funds or switch to a different jeweller. 815 00:44:11,360 --> 00:44:13,680 You have to decide on a jeweller today 816 00:44:13,800 --> 00:44:15,680 to buy jewellery after one year. 817 00:44:16,000 --> 00:44:18,240 Shivani was facing a similar problem. 818 00:44:18,400 --> 00:44:20,520 Therefore, we made our app Plus. 819 00:44:25,280 --> 00:44:28,200 Plus is an easy-to-use gold and jewellery savings app. 820 00:44:56,840 --> 00:44:59,520 And they have saved around Rs. 45 lakhs on our app. 821 00:45:03,240 --> 00:45:05,400 Our vision is to channelise 822 00:45:05,520 --> 00:45:07,600 a sizeable amount of the jewellery sa market 823 00:45:07,680 --> 00:45:09,400 through our app in the next five years. 824 00:45:10,440 --> 00:45:12,040 In order to accomplish this vision, 825 00:45:12,160 --> 00:45:13,720 we need your support 826 00:45:13,840 --> 00:45:16,120 and Rs. 60 lakhs for 1% equity in our company. 827 00:45:30,040 --> 00:45:31,840 First is monthly savings, 828 00:45:31,920 --> 00:45:34,400 which is similar to how you invest with the jeweller. 829 00:45:51,440 --> 00:45:54,760 The best part is that if you miss an instalment 830 00:45:55,000 --> 00:45:56,320 you are not charged a penalty. 831 00:46:09,080 --> 00:46:10,840 their savings in the digital passbook, 832 00:46:48,360 --> 00:46:50,280 But it doesn't make sense frankly. 833 00:46:50,400 --> 00:46:51,920 - Okay. - It's a savings app. 834 00:46:55,360 --> 00:46:58,040 If I was Aman, I could just put this money 835 00:47:02,840 --> 00:47:04,320 This market is unorganized. 836 00:47:04,520 --> 00:47:06,760 The audience that participates in this market 837 00:47:06,880 --> 00:47:08,720 is not investing in mutual funds now. 838 00:47:08,960 --> 00:47:10,640 - Is it because it's a cash market? - They... 839 00:47:10,720 --> 00:47:13,040 No, Ma'am. It's an awareness or education issue. 840 00:47:16,200 --> 00:47:19,200 is attached to local, neighbourhood, 841 00:47:19,320 --> 00:47:20,600 or trusted family jewellers. 842 00:47:20,720 --> 00:47:22,520 They deposit every month 843 00:47:22,680 --> 00:47:24,120 and the scheme is so made up 844 00:47:24,200 --> 00:47:26,080 that making charges get discounted. 845 00:47:26,080 --> 00:47:26,880 - And other things. - Correct. 846 00:47:26,880 --> 00:47:28,560 And you can lock the gold price. 847 00:47:28,680 --> 00:47:30,840 - Yes. - That's the most important thing. 848 00:47:30,960 --> 00:47:32,920 It's not happening here. It's just savings. 849 00:47:33,040 --> 00:47:34,360 So, both sides, it works. 850 00:47:34,440 --> 00:47:36,680 So we have focused it on jewellery because 851 00:47:36,800 --> 00:47:39,920 this market is desperate for innovation at present. 852 00:47:40,000 --> 00:47:42,520 No, it's a generic statement. What innovation? 853 00:47:42,520 --> 00:47:44,000 This has nothing to do with jewellery. 854 00:47:45,520 --> 00:47:48,200 You applied a jewellery use case, that's different. 855 00:47:53,680 --> 00:47:56,480 The jeweller is actually using this as cost of acquisition. 856 00:47:56,720 --> 00:47:59,160 Pushing the discount back to the 857 00:47:59,240 --> 00:48:01,880 customer as perceived value. 858 00:48:02,080 --> 00:48:06,480 And the existing behaviour in India regarding gold jewellery purchase, 859 00:48:06,760 --> 00:48:09,760 that entire perceived value is being packaged here. 860 00:48:09,880 --> 00:48:11,400 That's my understanding. 861 00:48:12,080 --> 00:48:13,640 Explain the customer's math 862 00:48:13,720 --> 00:48:16,240 and jeweller's math separately 863 00:48:16,400 --> 00:48:18,080 in a simple manner once. 864 00:48:18,920 --> 00:48:21,360 When a user saves on our app, 865 00:48:21,480 --> 00:48:24,000 let's say they have saved Rs 1 lakh for once. 866 00:48:24,080 --> 00:48:25,360 - The math will be easy. - Okay. 867 00:48:25,440 --> 00:48:27,960 - On the app, the return is Rs 10,000 - Correct. 868 00:48:41,080 --> 00:48:43,240 from our jeweller partners anytime. 869 00:48:43,400 --> 00:48:45,720 So overall, you're saying that a jeweller's 870 00:48:45,720 --> 00:48:47,760 cost of customer acquisition is 10 per cent. 871 00:48:48,200 --> 00:48:50,000 - That's what you're roughly saying. - Yes. 872 00:48:50,080 --> 00:48:52,080 That 10 per cent, as an affiliate, 873 00:48:52,360 --> 00:48:53,800 you are receiving that 10 per cent. 874 00:48:54,080 --> 00:48:55,800 - We give it to the user. - You're giving it to the user. 875 00:48:55,880 --> 00:48:57,000 So, how will you make money? 876 00:48:57,200 --> 00:49:00,800 We have a take rate from this investment. 877 00:50:27,360 --> 00:50:31,560 You're collecting money from people, saving it, 878 00:50:31,680 --> 00:50:33,200 how are you regulated? 879 00:50:33,320 --> 00:50:35,200 How do you pool it? 880 00:50:36,280 --> 00:50:38,800 The money never hits our bank. 881 00:50:38,920 --> 00:50:40,960 - It goes directly to NBFC. - Directly to NBFC. 882 00:50:41,040 --> 00:50:43,280 It happens after Aadhaar and PAN KYC is done. 883 00:50:43,360 --> 00:50:45,120 So, you're their distributor, 884 00:50:45,480 --> 00:50:47,440 - digital distributor. - Yes. 885 00:50:47,560 --> 00:50:50,240 What is the underlying risk of this NBFC 886 00:50:50,320 --> 00:50:52,440 - that you're giving money to? - Lendbox, that is an NBFC. 887 00:50:52,560 --> 00:50:54,160 They have a product named Per Annum. 888 00:50:54,400 --> 00:50:55,880 We have integrated it. 889 00:50:56,120 --> 00:50:58,280 In this, they just 890 00:50:58,400 --> 00:51:01,200 lend 2 per cent to public with a credit score of 750 or more. 891 00:51:09,880 --> 00:51:12,280 Those are high-risk businesses. 892 00:51:13,880 --> 00:51:16,040 The NPA of this platform is 0.4 per cent. 893 00:51:16,200 --> 00:51:17,560 - It's 0.4 per cent right now. - Yes. 894 00:51:31,200 --> 00:51:33,360 It's risky if you lend at 12 per cent. 895 00:51:33,720 --> 00:51:34,280 Yeah. 896 00:51:34,480 --> 00:51:36,800 It looks like the bet that's asking for investment 897 00:51:37,600 --> 00:51:40,200 as it can invest better than the others. 898 00:51:41,360 --> 00:51:42,960 Everyone thinks that. 899 00:51:43,240 --> 00:51:44,440 Tell me something. 900 00:51:44,920 --> 00:51:46,160 What is the risk-free rate? 901 00:51:46,320 --> 00:51:48,880 I think somewhere between 6.75 and 7. 902 00:51:53,600 --> 00:51:55,720 There is no such thing in the world called risk-free. 903 00:51:56,680 --> 00:51:59,760 Every percentage point that increases after 6 per cent 904 00:52:00,440 --> 00:52:02,160 indicates a bigger risk. 905 00:52:02,320 --> 00:52:04,000 So, you can never claim 906 00:52:04,240 --> 00:52:05,760 that at 12 per cent 907 00:52:06,360 --> 00:52:08,040 it's kind of risk for you. 908 00:52:08,240 --> 00:52:10,000 Actually, you have to first stop lying to yourself. 909 00:52:10,080 --> 00:52:11,720 - It's not true. - Sure. 910 00:52:11,800 --> 00:52:12,720 Alright. 911 00:52:13,280 --> 00:52:14,960 A 6-year-old NBFC 912 00:52:15,080 --> 00:52:18,400 that hasn't seen many cycles, anything can happen. 913 00:52:18,480 --> 00:52:20,320 12 per cent is a very dangerous game. 914 00:52:20,720 --> 00:52:22,200 So, what is the other option? 915 00:52:22,320 --> 00:52:24,920 Let's say, you aren't able to give 10 per cent to the user. 916 00:52:25,000 --> 00:52:25,960 What will you do? 917 00:52:26,040 --> 00:52:28,920 There seems to be an advent risk for the user. 918 00:52:29,000 --> 00:52:30,640 The NBFC brings in that risk. 919 00:52:43,320 --> 00:52:44,320 It's transparent. 920 00:52:44,440 --> 00:52:46,120 They will make 6 per cent with FDs. 921 00:52:46,200 --> 00:52:47,320 They will be able to see it here. 922 00:52:47,400 --> 00:52:49,280 And the user will be able to decide for self. 923 00:52:49,400 --> 00:52:51,400 Our FD partnership is already done. 924 00:52:53,240 --> 00:52:54,560 - With whom? - Bajaj Finserv. 925 00:52:54,640 --> 00:52:57,840 But the marketing of the jeweller's discount, 926 00:52:57,920 --> 00:53:00,680 which is your real use case, it works. 927 00:53:00,760 --> 00:53:01,880 So it's over and above that. 928 00:53:01,960 --> 00:53:03,400 So, reduce this to 4 per cent. 929 00:53:03,600 --> 00:53:05,800 Add the jeweller's part and project it. 930 00:53:05,880 --> 00:53:08,520 Because that's your real use case and you're hiding it. 931 00:53:09,400 --> 00:53:11,360 Vineeta, we are moving towards it. 932 00:53:11,440 --> 00:53:13,280 - Why haven't you done it yet? - Because... 933 00:53:13,280 --> 00:53:15,120 - We... - It's the industry hygiene. 934 00:53:15,200 --> 00:53:17,600 These partnerships are time-taking. 935 00:53:17,800 --> 00:53:19,040 So you don't have one yet. 936 00:53:19,160 --> 00:53:20,560 No, we recently closed a partnership. 937 00:53:20,560 --> 00:53:22,240 - Just one, not others. - Yes. Recently, 938 00:53:22,320 --> 00:53:24,360 - we closed it. - So you haven't been able to do it. 939 00:53:25,280 --> 00:53:26,200 What's the status of your sales? 940 00:53:26,280 --> 00:53:28,520 As I mentioned, we went live three months ago, right? 941 00:53:28,600 --> 00:53:31,120 In the first month, we registered savings of Rs 5 lakhs on the app. 942 00:53:31,400 --> 00:53:34,000 In the second month, the savings increased to Rs 10 lakhs. 943 00:53:34,080 --> 00:53:36,280 During Diwali, festive season, 944 00:53:36,520 --> 00:53:40,040 our savings increased. The total savings on app was Rs 32 lakhs. 945 00:53:40,240 --> 00:53:43,080 - Okay. - It's Rs 45 lakhs already. 946 00:53:47,680 --> 00:53:48,760 We raised two rounds. 947 00:53:48,840 --> 00:53:50,360 The first round was during the ideation stage. 948 00:53:50,440 --> 00:53:51,880 VCats, WFC, 949 00:53:51,960 --> 00:53:54,640 JITO group. There were a few individuals too. 950 00:53:54,760 --> 00:53:56,880 We raised Rs 2.59 crores. 951 00:53:57,000 --> 00:53:58,480 At Rs 20 crores pre-money valuation. 952 00:53:58,600 --> 00:53:59,440 Okay. 953 00:53:59,600 --> 00:54:02,600 After that, we launched our recent MVP. 954 00:54:02,680 --> 00:54:05,600 Before we launched it, we opened our last round 955 00:54:05,720 --> 00:54:08,680 in which we've recently closed SHA at Rs 4 crores. 956 00:54:08,960 --> 00:54:10,000 At what valuation? 957 00:54:10,080 --> 00:54:11,440 This is Rs 40 crores, post money. 958 00:54:15,160 --> 00:54:16,240 What's the revenue? 959 00:54:16,360 --> 00:54:18,920 Calculate. It's around Rs 50,000. 960 00:54:19,000 --> 00:54:20,800 - Yes, more or less. - Rs 50,000. 961 00:54:20,920 --> 00:54:22,880 - You can call it pre-revenue. - 1% approximately. 962 00:54:22,960 --> 00:54:24,080 - Pre-revenue. - Yes. 963 00:54:27,760 --> 00:54:30,000 In the last 5 years, brands that have emerged 964 00:54:30,160 --> 00:54:32,080 are scaling very fast, right? 965 00:54:33,040 --> 00:54:34,600 But your business 966 00:54:34,720 --> 00:54:36,160 is not into jewellery. 967 00:54:37,640 --> 00:54:41,520 You're a savings or wealth management platform, plus 968 00:54:41,760 --> 00:54:43,600 lead generation for jewellery. 969 00:54:44,600 --> 00:54:46,600 But it's very complex. 970 00:54:46,920 --> 00:54:51,040 - The revenue and business model are still not clear. - Okay. 971 00:54:51,040 --> 00:54:53,360 So, for that reason, I'm out. 972 00:54:55,160 --> 00:54:57,880 I think your lack of judgement 973 00:54:57,960 --> 00:55:00,360 to put this money into an NBFC 974 00:55:00,440 --> 00:55:02,320 that works on 12 per cent interest. 975 00:55:02,520 --> 00:55:04,080 I think that's questionable. 976 00:55:05,160 --> 00:55:06,000 Because 977 00:55:06,120 --> 00:55:09,640 taking such a risk is something I wouldn't want 978 00:55:09,840 --> 00:55:12,200 someone I'm trusting my money with to take. 979 00:55:12,400 --> 00:55:14,840 Okay? So, I'm out. But best of luck. 980 00:55:16,520 --> 00:55:19,840 Fundamentally, I don't find your use case to be strong. 981 00:55:19,920 --> 00:55:22,040 You want to enable savings. 982 00:55:22,200 --> 00:55:24,520 Very big, regulated platforms 983 00:55:24,600 --> 00:55:26,680 like mutual funds are doing it very well. 984 00:55:26,880 --> 00:55:28,640 And there is less awareness. 985 00:55:28,720 --> 00:55:29,960 But it's on the rise. 986 00:55:31,400 --> 00:55:35,240 Also, I think your understanding of regulatory and risk is weak. 987 00:55:35,520 --> 00:55:37,360 Not only because of this NBFC 988 00:55:37,440 --> 00:55:40,560 but even if you want to give other options in the future, 989 00:55:40,960 --> 00:55:43,120 I find it to be a grey area for regulations. 990 00:55:43,240 --> 00:55:44,560 So, I'm out. 991 00:55:45,240 --> 00:55:48,000 Have you heard of MSS? 992 00:55:48,160 --> 00:55:49,040 No. 993 00:55:49,120 --> 00:55:51,160 MSS is Mummy Savings Scheme. 994 00:55:51,240 --> 00:55:53,920 When there's no money anywhere, mom lends money. 995 00:55:54,720 --> 00:55:57,960 Moms have a psychology to save money. 996 00:55:58,080 --> 00:56:00,240 Something that is not risky. 997 00:56:00,360 --> 00:56:02,040 She'll never come here 998 00:56:02,600 --> 00:56:04,280 because this is already so risky. 999 00:56:04,400 --> 00:56:07,200 And why does she even visit her local jeweller? 1000 00:56:07,280 --> 00:56:09,280 Because she trusts him. 1001 00:56:09,440 --> 00:56:10,960 She'll never come to you. 1002 00:56:12,680 --> 00:56:15,760 I don't know how you're going to make this product-market fit. 1003 00:56:15,840 --> 00:56:18,280 How will you turn it around, what complications, I don't know. 1004 00:56:18,440 --> 00:56:20,360 Unfortunately, I'm out of this. 1005 00:56:21,800 --> 00:56:24,880 If the making charges part doesn't work, 1006 00:56:26,240 --> 00:56:29,360 and if this IRR that you're offering of 10% 1007 00:56:29,440 --> 00:56:32,600 dips down to 4-6%, 1008 00:56:32,960 --> 00:56:35,560 then will that business work? What's your honest opinion? 1009 00:56:35,640 --> 00:56:36,640 Yes, it will. 1010 00:56:36,720 --> 00:56:37,760 How? 1011 00:56:38,320 --> 00:56:41,280 Interest of 4-5% interest from risk-free savings 1012 00:56:41,480 --> 00:56:44,440 and a discount of 8-9% 1013 00:56:44,600 --> 00:56:45,680 comes from the jeweller. 1014 00:56:45,760 --> 00:56:47,640 It's available with us today. 1015 00:56:47,840 --> 00:56:50,280 - Okay. - We started with P2P because... 1016 00:56:50,360 --> 00:56:52,840 the flexibility we wanted, we found there. 1017 00:56:53,000 --> 00:56:54,840 - And it's not that... - What flexibility did you want? 1018 00:56:54,920 --> 00:56:56,800 We wanted flexibility of withdrawal. 1019 00:56:56,880 --> 00:56:59,600 So that the user can withdraw his money whenever he wants. 1020 00:56:59,720 --> 00:57:01,280 And we wanted quick integration 1021 00:57:01,360 --> 00:57:03,880 and validate in the market whether our users 1022 00:57:03,960 --> 00:57:06,480 are able to trust us and save on this app. 1023 00:57:06,640 --> 00:57:10,160 I have a discount for 320 jewellers 1024 00:57:10,280 --> 00:57:12,760 - already decided. - What's the deal with the jeweller? 1025 00:57:12,760 --> 00:57:14,320 There's a separate deal with every jeweller. 1026 00:57:14,320 --> 00:57:15,360 What's the average deal? 1027 00:57:26,120 --> 00:57:29,440 Rs. 60 lakhs at Rs. 40 crore valuation at 1.5%. 1028 00:57:29,520 --> 00:57:30,800 That's the offer. 1029 00:57:48,720 --> 00:57:50,560 Thanks a lot. You won't regret it. 1030 00:57:51,040 --> 00:57:52,760 [music playing] 1031 00:57:57,800 --> 00:57:59,080 I liked the founders. 1032 00:57:59,200 --> 00:58:00,400 That space is getting created. 1033 00:58:00,480 --> 00:58:03,120 If you can tie up with enough jewellers 1034 00:58:03,200 --> 00:58:05,840 and start getting good discounts from them. 1035 00:58:05,920 --> 00:58:08,120 It becomes a treasury management business. It's a float business. 1036 00:58:08,200 --> 00:58:09,200 Yes.