1 00:00:10,000 --> 00:00:11,360 [music playing] 2 00:00:30,440 --> 00:00:31,600 [theme music playing] 3 00:00:54,800 --> 00:00:56,080 [music fades] 4 00:00:56,200 --> 00:00:59,520 Sharks, it's the era of fitness and everyone wants to stay fit. 5 00:01:00,640 --> 00:01:03,040 Must you go to the gym to stay fit though? 6 00:01:04,000 --> 00:01:06,200 Bro, if going to the gym is such a problem, 7 00:01:06,360 --> 00:01:07,400 bring the gym home. 8 00:01:07,480 --> 00:01:08,320 Simple! 9 00:01:11,080 --> 00:01:14,080 - Oi! Who has space to set up a gym at home? - [chuckles] 10 00:01:14,280 --> 00:01:16,400 If you want a good gym at home, you don't need space, 11 00:01:16,680 --> 00:01:17,640 you need Aroleap. 12 00:01:19,880 --> 00:01:21,640 Greetings, Sharks. My name is Anurag. 13 00:01:55,440 --> 00:01:58,320 making it easier to incorporate strength training in one's lifestyle 14 00:01:58,400 --> 00:02:00,240 and in the next three years, 15 00:02:00,360 --> 00:02:03,360 we aim to see Aroleap's home gyms in over a lakh households. 16 00:02:14,960 --> 00:02:17,360 Why did you take the leap with Aroleap? 17 00:02:45,160 --> 00:02:47,200 When we conducted research on this space, 18 00:02:47,280 --> 00:02:49,160 we saw a clear-cut gap. 19 00:02:49,280 --> 00:02:51,720 If you wish to set up any fitness equipment at home, 20 00:02:51,800 --> 00:02:53,760 - you'll need a big room... - Hmm. 21 00:02:53,960 --> 00:02:55,640 And multiple equipment. 22 00:02:56,080 --> 00:02:57,200 So, we had an idea. 23 00:02:57,320 --> 00:03:00,480 If we were to replace physical weights 24 00:03:10,040 --> 00:03:13,120 This device is prominent in many foreign countries, right? 25 00:03:13,240 --> 00:03:15,720 There's a device called The Mirror. 26 00:03:20,960 --> 00:03:22,040 - This is different. - This... 27 00:03:22,120 --> 00:03:23,000 - Tell us its functions. - Sure. 28 00:03:23,080 --> 00:03:24,320 This has proper weights. 29 00:03:24,400 --> 00:03:26,680 Just as you add weights in the gym and squat... 30 00:03:26,800 --> 00:03:27,840 Where are the weights? 31 00:03:27,920 --> 00:03:29,560 Are you creating it through resistance? 32 00:03:29,680 --> 00:03:31,560 - Basically, there's a motor inside. - Hmm. 33 00:03:31,640 --> 00:03:34,120 We generate the weight using the motor. 34 00:03:34,400 --> 00:03:35,360 So, when you pull, 35 00:03:35,360 --> 00:03:37,200 the motor starts pulling in the opposite direction. 36 00:03:37,280 --> 00:03:39,320 - Our control algorithms... - So, that's how it works. Got it. 37 00:03:39,440 --> 00:03:41,760 That gives the same feel as lifting weights in the gym. 38 00:03:41,960 --> 00:03:42,920 Give us a demo. 39 00:03:43,000 --> 00:03:44,240 - Please. - Sure, we'll give you a demo. 40 00:03:44,400 --> 00:03:45,720 [soft music playing] 41 00:03:54,360 --> 00:03:56,680 you pull out both the handles. 42 00:03:56,760 --> 00:03:57,840 Using the pin at the top, 43 00:03:57,920 --> 00:04:00,000 the arms can be locked in multiple positions. 44 00:04:00,120 --> 00:04:01,360 This is the lowermost position. 45 00:04:02,360 --> 00:04:05,360 This is the mid position and this is the topmost position. 46 00:04:05,760 --> 00:04:09,840 The ends of the arms have hooks to attach different accessories. 47 00:04:10,840 --> 00:04:12,400 We provide accessories such as a rope, 48 00:04:19,640 --> 00:04:21,880 Up to 75 kg resistance is available. 49 00:04:26,520 --> 00:04:27,720 - Click and let go. - Click it. 50 00:04:28,080 --> 00:04:30,120 The weights have been engaged. Give it a go now. 51 00:04:30,400 --> 00:04:31,680 - Got it. - Yes. 52 00:04:32,640 --> 00:04:33,600 I want to try as well. 53 00:04:33,680 --> 00:04:35,600 Correct, I'll start a fresh exercise for you. 54 00:04:36,560 --> 00:04:38,000 You added more weight for me! 55 00:04:38,480 --> 00:04:40,520 Press the pedal once. Okay. 56 00:04:40,960 --> 00:04:42,600 - Yes, the weight is engaged. - The weight is engaged. 57 00:04:42,680 --> 00:04:43,520 [Peyush] Whoa! 58 00:04:43,600 --> 00:04:44,640 - Wow! - You can see. 59 00:04:56,400 --> 00:04:59,360 This essentially tells the machine how you are performing. 60 00:04:59,640 --> 00:05:00,680 On that basis, 61 00:05:00,760 --> 00:05:02,120 when you do the same exercise next time, 62 00:05:09,480 --> 00:05:11,600 - You can fix the bench here and do chest presses. - Okay. 63 00:05:11,680 --> 00:05:13,040 [music playing] 64 00:05:16,360 --> 00:05:17,520 How much does this cost? 65 00:05:17,640 --> 00:05:21,280 The price of the machine is Rs. 1.6 lakhs plus GST. 66 00:05:25,920 --> 00:05:28,440 Let me show you another mode called Spotter. 67 00:05:40,600 --> 00:05:41,880 This helps to prevent any muscle damage. 68 00:05:41,960 --> 00:05:42,840 - Correct. - Correct. 69 00:05:43,480 --> 00:05:44,880 [music playing] 70 00:05:47,960 --> 00:05:49,600 When you say personalised training, 71 00:05:58,320 --> 00:06:00,960 is the primary market homeowners or gym owners? 72 00:06:01,160 --> 00:06:02,840 Our primary target market is homeowners. 73 00:06:42,680 --> 00:06:43,680 The second is the DIY mode 74 00:06:43,800 --> 00:06:45,800 - in which you can feed your programmes. - Correct. 75 00:06:51,920 --> 00:06:53,920 You claim this does not exist anywhere else in the world. 76 00:06:54,040 --> 00:06:55,600 - It does, in the US. - What's the name? 77 00:06:55,920 --> 00:06:57,160 The company is called Tonal, sir. 78 00:06:57,320 --> 00:06:58,720 - How big is it? - How big is the company? 79 00:06:58,840 --> 00:07:00,080 Sir, Tonal is a unicorn. 80 00:07:00,160 --> 00:07:02,480 They do ¤150 million in a year. 81 00:07:02,600 --> 00:07:03,920 Do you know their growth rate? 82 00:07:04,000 --> 00:07:05,480 Sir, there was a spike during Covid. 83 00:07:05,560 --> 00:07:07,840 All such kinds of equipment saw a spike during Covid. 84 00:07:07,840 --> 00:07:08,720 What about after that? 85 00:07:08,800 --> 00:07:11,480 For the last two years, they have consolidated. 86 00:07:11,560 --> 00:07:13,560 They increased their price point significantly 87 00:07:13,640 --> 00:07:15,320 which is why their market in the US has shrunk. 88 00:07:15,400 --> 00:07:17,120 Sorry. I'm asking about the market 89 00:07:17,240 --> 00:07:18,960 because of the trend... 90 00:07:19,040 --> 00:07:22,560 - Even you conceived these devices in 2020. - Yes. 91 00:07:22,680 --> 00:07:25,160 This was the golden period for devices like that. 92 00:07:25,400 --> 00:07:27,680 If you take the example of Peloton, 93 00:07:27,800 --> 00:07:29,600 which became a very big company 94 00:07:29,680 --> 00:07:32,400 at least in terms of the valuation during Covid, 95 00:07:32,520 --> 00:07:35,280 we all know that its valuation took a big hit after that. 96 00:07:35,360 --> 00:07:36,440 That's true. 97 00:07:36,560 --> 00:07:37,720 So, what exactly happened? 98 00:07:49,880 --> 00:07:52,800 - Sir, this category is called connected fitness in the US. - Okay. 99 00:07:52,920 --> 00:07:55,240 - Excellent. - This category doesn't exist in India, we're creating it. 100 00:07:55,320 --> 00:07:56,120 All right. 101 00:07:56,320 --> 00:07:59,520 So, the market for connected fitness is about ¤3.5 to 4 billion 102 00:07:59,640 --> 00:08:01,080 - in the US. - In the US. 103 00:08:01,200 --> 00:08:04,040 It includes strength as well as cardio. 104 00:08:04,120 --> 00:08:05,440 Cardio has a lot of players. 105 00:08:05,520 --> 00:08:07,960 For instance, companies like Peloton, Echelon and others. 106 00:08:08,280 --> 00:08:10,080 There's no company in strength 107 00:08:10,160 --> 00:08:12,760 that has actually moved the needle significantly 108 00:08:12,840 --> 00:08:15,240 in terms of revenue or disruption of market. 109 00:08:15,400 --> 00:08:16,760 Tonal is the only company 110 00:08:16,880 --> 00:08:19,560 that's the market leader in strength and is doing really well. 111 00:08:19,640 --> 00:08:21,080 Is their machine similar to yours? 112 00:08:21,240 --> 00:08:22,560 - Yes, quite similar. - Okay, got it. 113 00:08:23,240 --> 00:08:24,560 Just this type of machine... 114 00:08:24,680 --> 00:08:26,280 Not electronic, that market is being created. 115 00:08:26,360 --> 00:08:29,960 What's the size of the home gym market in India? 116 00:08:30,480 --> 00:08:31,960 Sir, the top five players 117 00:08:45,000 --> 00:08:47,000 It's definitely high for the Indian market. 118 00:08:47,200 --> 00:08:49,440 Our primary focus will be the US. 119 00:08:49,760 --> 00:08:50,840 If you look at the US, 120 00:08:50,920 --> 00:08:52,600 there's no player at this price point. 121 00:08:53,520 --> 00:08:56,000 How much is Tonal selling for? What's their price? 122 00:08:56,080 --> 00:08:57,600 Sir, the device costs between Rs. 4 to 5 lakhs. 123 00:09:00,840 --> 00:09:02,400 - Let's understand that. - They don't want to sell in India. 124 00:09:02,480 --> 00:09:03,560 Tell us your sales. 125 00:09:08,120 --> 00:09:09,600 Sir, between Rs. 3 to 3.5 crores. 126 00:09:13,960 --> 00:09:14,840 - No, sir. - No. 127 00:09:15,160 --> 00:09:17,680 What will be your expenditure on Rs. 3.5 crores, 128 00:09:17,760 --> 00:09:18,840 or will you make a profit? 129 00:09:19,000 --> 00:09:20,560 - Sir, we will make a profit. - How much? 130 00:09:29,680 --> 00:09:32,760 Rs. 5 lakhs a month approximately and Rs. 30 lakhs in six months. 131 00:09:37,440 --> 00:09:40,080 We raised a seed round in October 2021... 132 00:09:40,160 --> 00:09:41,600 - From whom? - From institutional investors. 133 00:09:50,480 --> 00:09:52,360 Then why are they not? It's time. 134 00:09:52,440 --> 00:09:55,600 Sir, more than money, what we currently need is... 135 00:09:55,680 --> 00:09:57,440 We're not here for the money. 136 00:09:57,600 --> 00:09:58,600 Then what are you here for? 137 00:09:59,080 --> 00:10:01,040 We want founders on our cap table 138 00:10:01,040 --> 00:10:04,000 who have exposure to foreign markets. 139 00:10:05,520 --> 00:10:08,320 Would it be right to say that existing investors 140 00:10:15,160 --> 00:10:19,520 So, if we want, we could raise a round of Rs. 1 crore from... 141 00:10:19,600 --> 00:10:20,680 One crore is nothing. 142 00:10:20,760 --> 00:10:23,320 Your first round was Rs. 5 crores. Raising Rs. 1 crore now won't help. 143 00:10:24,320 --> 00:10:26,000 How much money is left in the bank? 144 00:10:26,360 --> 00:10:28,120 Sir, around Rs. 20 lakhs in cash, 145 00:11:07,360 --> 00:11:09,520 What's the ratio of your equity structure? 146 00:11:09,600 --> 00:11:12,040 Sir, we have an equal share. We each hold 21.5% equity. 147 00:11:18,040 --> 00:11:20,160 - I'm the CTO of the software side. - Okay. 148 00:11:20,280 --> 00:11:22,960 Rohit and Aman have taken care of the hardware side. 149 00:11:24,120 --> 00:11:25,760 I think, at this price point, 150 00:11:25,920 --> 00:11:28,280 - your market in India will be very small. - Yes. 151 00:11:28,400 --> 00:11:31,040 Hence, your vision is to focus on exports. 152 00:11:31,320 --> 00:11:33,480 You haven't demonstrated that yet. 153 00:11:33,560 --> 00:11:35,000 So, it's too early for me. 154 00:11:35,280 --> 00:11:36,560 For that reason, I'm out. 155 00:11:36,760 --> 00:11:38,040 [sombre music playing] 156 00:11:38,440 --> 00:11:40,400 So, one Shark is out and four are still in. 157 00:11:51,280 --> 00:11:52,400 I do strength training too. 158 00:11:52,480 --> 00:11:54,520 Had I got such a compact machine, I'd have bought it. 159 00:11:54,640 --> 00:11:56,960 It has a small market in India but the one abroad is big, 160 00:11:57,040 --> 00:11:57,960 which is evident. 161 00:11:58,840 --> 00:12:00,680 Azhar and I would like to make an offer to you. 162 00:12:06,080 --> 00:12:08,760 my personal opinion is that it's a great product. 163 00:12:08,840 --> 00:12:10,800 I am able to connect to it and also see the need for it. 164 00:12:10,880 --> 00:12:12,120 Gradually, the need will arise 165 00:12:12,200 --> 00:12:14,400 and people will be able to make gyms in their homes. 166 00:12:14,520 --> 00:12:16,080 So, we would like to invest. 167 00:12:16,200 --> 00:12:17,400 So, here is our offer. 168 00:12:17,520 --> 00:12:18,880 Rs. 50 lakhs at a valuation of Rs. 25 crores. 169 00:12:19,000 --> 00:12:20,960 That turns out to be 2% equity. 170 00:12:21,080 --> 00:12:23,520 And Rs. 50 lakhs debt at 12% interest. 171 00:12:31,560 --> 00:12:32,680 Congratulations! 172 00:12:32,760 --> 00:12:34,440 - You have an offer. - I think it's a fantastic offer. 173 00:12:34,520 --> 00:12:38,120 Look, in my opinion, you have made a good product. 174 00:12:38,880 --> 00:12:40,600 Your team has complementary skills. 175 00:12:41,080 --> 00:12:43,440 Are you here to take debt or equity? 176 00:12:43,520 --> 00:12:44,320 - Equity. - Equity. 177 00:12:44,440 --> 00:12:45,280 - Equity. - Equity. 178 00:12:45,400 --> 00:12:46,960 I'm willing to give you equity. 179 00:12:47,080 --> 00:12:48,240 [gripping music playing] 180 00:12:50,080 --> 00:12:51,840 I think you're making a big mistake 181 00:12:51,960 --> 00:12:54,920 by pushing a market that is not working. 182 00:12:57,680 --> 00:13:00,040 You do not have a PMF in this market. 183 00:13:13,760 --> 00:13:16,040 Creating a PMF in this market is extremely hard. 184 00:13:17,080 --> 00:13:19,320 Selling it in the US market from here is even harder. 185 00:13:20,520 --> 00:13:24,200 I think that you should capture the physiotherapy market. 186 00:13:24,720 --> 00:13:26,760 You happened to mention 187 00:13:27,040 --> 00:13:28,520 that you are getting a demand from them. 188 00:13:28,640 --> 00:13:30,000 You don't seem to realise, 189 00:13:30,120 --> 00:13:32,440 that might be your product-market fit. 190 00:13:33,440 --> 00:13:35,320 Given the use of your electronics, 191 00:13:35,480 --> 00:13:38,680 this could be packaged as a safety-first device. 192 00:13:39,520 --> 00:13:41,840 If you look at the physiotherapy market in India, 193 00:13:41,920 --> 00:13:42,880 it is massive. 194 00:13:44,920 --> 00:13:45,880 Would you be open 195 00:13:46,000 --> 00:13:48,040 to looking at only the physiotherapy market? 196 00:13:48,760 --> 00:13:51,200 It's okay if a fitness market is created along the way. 197 00:13:51,280 --> 00:13:52,120 Absolutely. 198 00:13:52,360 --> 00:13:54,400 All right then, I'll make you an offer. 199 00:13:54,480 --> 00:13:56,600 At the valuation you asked of Rs. 25 crores, 200 00:13:56,720 --> 00:13:58,640 I'll give you Rs. 1 crore in equity and no debt. 201 00:14:12,600 --> 00:14:15,480 but once you establish yourself, there's space for expansion. 202 00:14:16,400 --> 00:14:17,680 - You... - I have a different perspective. 203 00:14:18,520 --> 00:14:19,760 You can focus on this. 204 00:14:19,840 --> 00:14:21,760 Take it to the US. The product is ready. 205 00:14:21,880 --> 00:14:24,080 Why spend another year to align the product for physiotherapy use? 206 00:14:24,840 --> 00:14:26,680 Okay. I've made my decision too. 207 00:14:27,480 --> 00:14:28,840 I'm glad to meet you, sir. 208 00:14:28,920 --> 00:14:32,200 I think you're into core engineering. 209 00:14:32,320 --> 00:14:33,400 You also have a patent. 210 00:14:33,480 --> 00:14:36,240 I think the future is bright and the excitement is visible. 211 00:14:36,520 --> 00:14:39,440 Even with Rs. 20 lakhs in the bank, your excitement hasn't died down. 212 00:14:39,640 --> 00:14:43,240 - That's because I think you have that aura. - [Sharks laugh] 213 00:14:43,320 --> 00:14:44,600 [music playing] 214 00:14:45,520 --> 00:14:46,840 I totally agree with Anupam. 215 00:14:46,920 --> 00:14:50,360 As a CEO, your idea of capturing the US market is just bad. 216 00:14:50,480 --> 00:14:52,400 You can't capture the domestic market and want to go to the US. 217 00:14:52,480 --> 00:14:53,880 Rs. 1 crore isn't enough for the US. 218 00:14:53,960 --> 00:14:56,600 Airline tickets to and fro will exhaust all your capital. 219 00:14:57,160 --> 00:14:59,960 So, don't make this mistake or you'll waste more money. 220 00:15:00,760 --> 00:15:02,960 I am happy to join Anupam in his offer. 221 00:15:03,360 --> 00:15:05,720 I have one recommendation if Anupam is okay 222 00:15:05,800 --> 00:15:08,680 that we need to get a good salesperson on board who can.. 223 00:15:10,080 --> 00:15:11,880 Somebody has to go sell. 224 00:15:13,280 --> 00:15:15,720 So, Rs. 1 crore for 4%, Peyush and me. 225 00:15:22,160 --> 00:15:23,400 and Rs. 50 lakhs for 2% equity. 226 00:15:23,480 --> 00:15:24,560 What would you like to do? 227 00:15:25,600 --> 00:15:28,440 I wish to add one thing from our end. 228 00:15:28,560 --> 00:15:30,520 We have not set any conditions 229 00:15:30,640 --> 00:15:32,520 about venturing into physio or the US market. 230 00:15:32,600 --> 00:15:33,720 We are with you. 231 00:15:35,400 --> 00:15:38,600 Secondly, you need to work on your CAC and get customers, 232 00:15:38,680 --> 00:15:40,080 be it here or from the US. 233 00:15:40,240 --> 00:15:42,920 Azhar's as well as my expertise lies in generating traffic. 234 00:15:43,120 --> 00:15:44,480 It'd be a great help to you 235 00:15:44,560 --> 00:15:46,360 in strategising how to get customers... 236 00:15:46,360 --> 00:15:48,440 The Sharks have made their pitches. 237 00:15:48,600 --> 00:15:51,000 Quickly discuss it and tell us your decision. 238 00:15:51,160 --> 00:15:51,960 Thank you. 239 00:15:52,400 --> 00:15:55,000 - Outside... - Before you go, do you want debt or not? 240 00:15:55,160 --> 00:15:56,600 - Sir, we prefer equity. - Prefer no... 241 00:15:56,720 --> 00:15:58,440 Azhar, would you be okay if we change it? 242 00:15:58,840 --> 00:16:00,160 We match their offer. 243 00:16:02,200 --> 00:16:03,280 - Full... - Without condition. 244 00:16:03,360 --> 00:16:04,160 - Without any condition. - Okay. 245 00:16:13,000 --> 00:16:14,640 We ought to protect the interest of our investors. 246 00:16:14,640 --> 00:16:16,280 Let's make a counter-offer. 247 00:16:16,360 --> 00:16:17,280 The question is to whom. 248 00:16:17,360 --> 00:16:19,840 Had you all been out, my offer was going to be 249 00:16:19,960 --> 00:16:21,400 Rs. 1 crore at 10% equity. 250 00:16:21,480 --> 00:16:22,600 Oh, my! 251 00:16:22,960 --> 00:16:25,320 If the four of us collaborate, 252 00:16:25,400 --> 00:16:27,520 we could do Rs. 1 crore for 10% equity, 2.5% each. 253 00:16:29,360 --> 00:16:30,560 [music concludes] 254 00:16:33,200 --> 00:16:34,440 Yes. What have you decided? 255 00:16:34,720 --> 00:16:36,600 Sharks, thank you so much for all your offers. 256 00:16:36,760 --> 00:16:38,000 Could we make a counteroffer? 257 00:16:38,120 --> 00:16:39,280 - Sure! - Please... 258 00:16:39,400 --> 00:16:41,080 - We have a counteroffer. - They do too. 259 00:16:41,160 --> 00:16:44,000 You tell us your counteroffer first. I'm loving this. 260 00:16:44,120 --> 00:16:46,880 Azhar and Amit, would you be okay with Rs. 1 crore for 3% equity? 261 00:16:53,040 --> 00:16:54,480 I, personally, invest a lot of time. 262 00:16:54,560 --> 00:16:55,760 - Let's make this interesting. - Sir... 263 00:17:14,040 --> 00:17:15,840 Their Rs. 20 lakh capital is exhausted. 264 00:17:15,920 --> 00:17:17,360 They're going to write it off their books. 265 00:17:17,440 --> 00:17:19,000 Let's not joke about it. You agree? 266 00:17:19,160 --> 00:17:20,280 [dramatic music playing] 267 00:17:20,760 --> 00:17:23,520 You're getting Rs. 1 crore in the bank, they'll be very happy. 268 00:17:23,600 --> 00:17:24,880 Let's close it at Rs. 1 crore. 269 00:17:25,200 --> 00:17:26,840 - Rs. 1 crore... - This is the offer. 270 00:17:26,920 --> 00:17:28,760 - I told you... - Brother, think big. 271 00:17:28,840 --> 00:17:30,960 The journey after this will be drastically different. 272 00:17:31,160 --> 00:17:32,320 Making it here was different. 273 00:17:32,520 --> 00:17:34,000 [suspenseful music playing] 274 00:17:49,240 --> 00:17:51,120 All boys team. 275 00:17:52,520 --> 00:17:53,720 [music fades] 276 00:19:41,760 --> 00:19:43,240 [theme music playing] 277 00:19:59,160 --> 00:20:00,600 [theme music concludes] 278 00:20:01,280 --> 00:20:03,880 Sharks, look how dull this plant is. 279 00:20:03,960 --> 00:20:05,760 How do we revive it? 280 00:20:06,040 --> 00:20:08,840 Would applying an expensive cream fix it? 281 00:20:09,240 --> 00:20:11,920 No. We need to add manure to the soil. 282 00:20:12,160 --> 00:20:13,160 We need to water it 283 00:20:13,280 --> 00:20:15,120 and provide it with the essential nutrients. 284 00:20:15,280 --> 00:20:17,640 Only then it will be healthy from the roots. 285 00:20:17,760 --> 00:20:20,600 Similarly, understanding the root cause 286 00:20:20,760 --> 00:20:23,280 of the problems in our bodies is very important. 287 00:20:23,640 --> 00:20:25,880 For example, if you suffer from acne, 288 00:20:26,040 --> 00:20:27,880 the root cause for that could be gut health, 289 00:20:27,960 --> 00:20:30,720 hormonal health or liver health. 290 00:20:30,840 --> 00:20:33,280 Creams can only reduce acne, 291 00:20:33,440 --> 00:20:35,600 but if not addressed by the root, 292 00:20:35,720 --> 00:20:37,280 then the problem could persist. 293 00:20:37,440 --> 00:20:40,200 This is called understanding the root cause. 294 00:20:40,320 --> 00:20:41,920 Based on this philosophy, 295 00:20:41,920 --> 00:20:44,000 we solve problems not in the least amount of time, 296 00:20:44,200 --> 00:20:46,760 but from the root at Cosmix. 297 00:20:47,120 --> 00:20:48,120 Greetings, Sharks. 298 00:20:54,880 --> 00:20:55,880 [music playing] 299 00:21:08,480 --> 00:21:09,920 like hair supplements, 300 00:21:16,560 --> 00:21:19,480 on health and a healthy lifestyle 301 00:21:19,880 --> 00:21:23,000 so that they understand their health problems properly 302 00:21:23,320 --> 00:21:26,160 and select the right supplements as per their needs. 303 00:21:26,960 --> 00:21:30,920 We do not provide any quick fixes or make any false promises 304 00:21:31,000 --> 00:21:32,200 based on our values. 305 00:21:32,200 --> 00:21:35,040 We have supported over 1 lakh people 306 00:21:35,160 --> 00:21:37,120 in their health journey as of today. 307 00:21:37,280 --> 00:21:41,360 Sharks, marketing supplements responsibly is our duty. 308 00:21:41,440 --> 00:21:42,720 Our vision is 309 00:21:42,800 --> 00:21:45,080 to make Cosmix India's biggest 310 00:21:45,200 --> 00:21:48,640 and most trusted education-first supplement brand. 311 00:21:48,760 --> 00:21:51,280 So, our ask is 312 00:21:59,200 --> 00:22:03,720 Vibha! Soorya! Welcome to Season 3 of Shark Tank India. 313 00:22:13,120 --> 00:22:15,680 Cosmix was introduced because of the problems I faced. 314 00:22:15,800 --> 00:22:17,320 When I was 16 years old, 315 00:22:17,440 --> 00:22:19,800 I found out that I suffered from PCOS. 316 00:22:24,880 --> 00:22:26,440 I was feeling very low. 317 00:22:26,520 --> 00:22:29,080 Unfortunately, advertisements were targeting 318 00:22:29,200 --> 00:22:31,320 my acne and hair loss at that time. 319 00:22:31,400 --> 00:22:34,560 - And no one was talking about internal health. - It's true. 320 00:22:34,640 --> 00:22:36,680 So, I wanted to create something for that. 321 00:22:36,760 --> 00:22:38,760 I was 16 years old back then. 322 00:22:38,880 --> 00:22:40,280 How old are you right now? 323 00:22:40,400 --> 00:22:41,880 I am 28. 324 00:22:41,960 --> 00:22:43,240 So, you started the business. 325 00:22:43,320 --> 00:22:46,320 Yes. I started this business in December 2019. 326 00:22:51,160 --> 00:22:53,400 - Oh, you are married now. Congratulations. - You are married. 327 00:22:53,480 --> 00:22:55,800 - We met in college. - Cosmic forces brought you together. 328 00:22:55,920 --> 00:22:56,920 [laughing] 329 00:22:57,000 --> 00:22:58,920 - You can say that. - Absolutely. 330 00:22:59,280 --> 00:23:01,480 Sorry, Sharks. I would like to pause for a minute. 331 00:23:01,560 --> 00:23:05,200 Because we want you to taste, touch, and feel our products. 332 00:23:05,200 --> 00:23:06,560 - Is that okay? - Sure! Lovely! 333 00:23:06,640 --> 00:23:07,480 Okay, thank you! 334 00:23:07,560 --> 00:23:09,560 [light-hearted music playing] 335 00:23:11,640 --> 00:23:13,600 Okay, these are the protein supplements. 336 00:23:13,680 --> 00:23:15,400 - No dairy. Vegan! - Vegan. 337 00:23:15,480 --> 00:23:16,840 Thank you! 338 00:23:17,360 --> 00:23:18,480 Sir, these are samplers. 339 00:23:18,560 --> 00:23:20,120 This is really nice. 340 00:23:20,440 --> 00:23:22,880 [light-hearted music playing] 341 00:23:25,160 --> 00:23:28,120 - What is this? - That's our happy gut shot. 342 00:23:28,200 --> 00:23:29,680 My Happy Gut, for digestion. 343 00:23:31,200 --> 00:23:32,560 It is slightly bitter. 344 00:23:32,640 --> 00:23:33,680 What are the ingredients? 345 00:23:44,800 --> 00:23:46,880 There are many supplements that offer quick fixes. 346 00:23:46,960 --> 00:23:48,640 But our formulations 347 00:24:02,280 --> 00:24:05,120 That is our Mahabaleshwar Strawberry protein. 348 00:24:05,200 --> 00:24:07,480 This is our newest category, 349 00:24:16,920 --> 00:24:19,680 - Secondly, protein is your highest-selling product. - Yes. 350 00:24:19,760 --> 00:24:23,280 Okay! I have tried every protein. I have also tried your protein. 351 00:24:23,400 --> 00:24:26,240 I loved your branding. Your logo is fantastic. 352 00:24:26,360 --> 00:24:27,480 I had ordered your product. 353 00:24:27,560 --> 00:24:29,560 But whenever I've tried protein, 354 00:24:29,640 --> 00:24:32,760 - it causes discomfort in my stomach. - Absolutely! 355 00:24:32,840 --> 00:24:35,840 Are you suggesting that we purchase Happy Gut after buying protein? 356 00:24:36,440 --> 00:24:37,440 No! 357 00:24:37,640 --> 00:24:40,520 We incorporate gut-friendly ingredients 358 00:24:40,600 --> 00:24:42,040 into our protein formulation 359 00:24:42,120 --> 00:24:45,360 so that the load on the stomach because of high protein 360 00:24:45,440 --> 00:24:46,560 is minimized. 361 00:24:46,680 --> 00:24:47,960 It is very gut-friendly 362 00:24:48,040 --> 00:24:49,960 - compared to... - Compared to other protein powders being sold? - Yes. 363 00:24:50,040 --> 00:24:51,320 Who is making these formulations? 364 00:24:51,400 --> 00:24:53,480 - Who is formulating... - I am a herbalist, sir. 365 00:24:59,920 --> 00:25:01,720 I'm responsible for managing operations, 366 00:25:01,720 --> 00:25:03,040 logistics, and manufacturing. 367 00:25:03,840 --> 00:25:06,440 Tell me something. There are so many formulations. 368 00:25:06,520 --> 00:25:07,880 Can't someone else replicate this? 369 00:25:07,960 --> 00:25:09,640 Is it something unique that only you can pull off? 370 00:25:09,720 --> 00:25:11,520 The formulation 371 00:25:11,640 --> 00:25:15,120 is developed by our team and Vibha. 372 00:25:15,240 --> 00:25:17,240 Do you manufacture it yourself, or is it contract manufacturing? 373 00:25:23,160 --> 00:25:24,600 Is there any scientific certification? 374 00:25:24,680 --> 00:25:26,760 We do perform pre-sale testing. 375 00:25:26,880 --> 00:25:28,720 We do it with a group of 376 00:25:28,800 --> 00:25:30,720 customers or a trial close. 377 00:25:30,800 --> 00:25:33,120 How do you test that your product is very effective? Tell me that. 378 00:25:33,200 --> 00:25:36,400 We provide our product and we give a set parameter. 379 00:25:36,480 --> 00:25:38,240 And we get feedback from them. 380 00:25:38,320 --> 00:25:40,920 Let us know about your sales so that we can determine the outcome. 381 00:26:02,560 --> 00:26:03,400 You are making money! 382 00:26:03,480 --> 00:26:05,520 - We have been profitable since day one. - Congrats. 383 00:26:05,600 --> 00:26:07,600 - Thank you. - What is the gross margin in the business? 384 00:26:16,960 --> 00:26:18,560 - No! - Bootstrapped? - No sir. We are bootstrapped. 385 00:26:25,120 --> 00:26:27,320 - Right! - Yes - And you have never raised money. - No. 386 00:26:27,400 --> 00:26:29,320 Why haven't you raised an investment yet? 387 00:26:29,400 --> 00:26:31,760 When we brought people on board, 388 00:26:31,840 --> 00:26:34,280 we wanted them to be very aligned with us. 389 00:26:34,400 --> 00:26:36,000 You want an authentic investor. 390 00:26:36,080 --> 00:26:39,200 Authentic investor. And we wanted to first figure out who we are. 391 00:26:46,080 --> 00:26:47,320 Well done. 392 00:26:47,520 --> 00:26:48,840 Why are you here? 393 00:26:48,920 --> 00:26:50,320 We require both mentorship 394 00:26:50,400 --> 00:26:52,200 and financial resources, of course. 395 00:26:52,280 --> 00:26:55,640 First, we want to do some amount of global expansion. 396 00:26:55,720 --> 00:26:59,000 But we also really want to put money 397 00:26:59,080 --> 00:27:00,960 into building our team. 398 00:27:01,080 --> 00:27:03,360 Got it! You've generated revenue of Rs. 10 crores up to this point. 399 00:27:03,440 --> 00:27:06,040 How many returning customers do you have, 400 00:27:06,040 --> 00:27:08,080 - and how many are new customers? - Every month, 401 00:27:08,080 --> 00:27:10,200 40% is from existing customers. 402 00:27:15,320 --> 00:27:17,480 How much is your growth without protein powder? 403 00:27:17,560 --> 00:27:18,640 The trend is similar. 404 00:27:18,760 --> 00:27:20,960 - Is it similar to protein? - It's the same trajectory. - Got it. 405 00:27:21,040 --> 00:27:22,960 What is the second and third SKU which is growing? 406 00:27:23,040 --> 00:27:25,080 My Happy Gut, our digestion supplement, 407 00:27:44,960 --> 00:27:46,000 The average rating is 4. 408 00:27:50,680 --> 00:27:54,120 - MuscleBlaze isn't plant protein. - Yes, it's very different. 409 00:27:54,200 --> 00:27:55,120 There is Cureveda, right? 410 00:27:55,200 --> 00:27:56,280 - Yes. - How big is it? 411 00:27:56,360 --> 00:27:57,680 - Worth Rs. 100 crores. - Rs. 100 crores. 412 00:27:57,800 --> 00:28:00,880 Which brand outperforms you in non-protein-based supplements? 413 00:28:00,960 --> 00:28:01,960 There is Gynoveda. 414 00:28:02,040 --> 00:28:03,160 How big are they? 415 00:28:03,280 --> 00:28:04,960 Gynoveda must be Rs. 100 crores. 416 00:28:05,080 --> 00:28:08,120 In what ways do you plan to outshine them? 417 00:28:08,400 --> 00:28:11,840 Our uniqueness stems from our expertise in formulation. 418 00:28:12,000 --> 00:28:14,680 Since we started manufacturing, 419 00:28:14,760 --> 00:28:17,320 the knowledge of herbs, we have been gradually incorporating them 420 00:28:17,400 --> 00:28:19,720 one by one, resulting in a fully-fledged facility 421 00:28:19,720 --> 00:28:20,840 that can manufacture... 422 00:28:20,920 --> 00:28:22,840 - You've set up a manufacturing plant. - Yes, sir 423 00:28:22,920 --> 00:28:24,360 How much money did you put into the plant? 424 00:28:24,440 --> 00:28:26,280 Rs. 40 lakhs. 425 00:28:34,680 --> 00:28:39,040 People really liked the brand, the brand's story and communication. 426 00:28:39,120 --> 00:28:40,640 Nowadays, consumers 427 00:28:40,720 --> 00:28:42,760 don't just focus on the product. 428 00:28:42,840 --> 00:28:45,520 They really focus on how we make them feel. 429 00:28:45,600 --> 00:28:47,840 How many orders did you get last month? 430 00:28:47,920 --> 00:28:50,800 On our website, we received nearly 9,000 orders. Close to 10,000. 431 00:28:56,720 --> 00:28:59,040 - Okay, I... -I would like to make you an offer. Hold on. 432 00:28:59,160 --> 00:29:00,200 I would like to make you an offer. 433 00:29:00,280 --> 00:29:02,040 We ask all the important questions 434 00:29:02,120 --> 00:29:03,320 and you give them an offer. 435 00:29:04,080 --> 00:29:06,680 I don't have to promote myself. 436 00:29:07,320 --> 00:29:09,240 - I am in healthcare. - Yes. 437 00:29:18,200 --> 00:29:20,400 I am strategising on how to increase your value 438 00:29:20,520 --> 00:29:22,120 to Rs. 200 crores within a span of 3 years. 439 00:29:32,200 --> 00:29:33,720 I admire your business model. 440 00:29:33,800 --> 00:29:35,760 I am interested in becoming a part of your team. 441 00:29:35,840 --> 00:29:38,400 But I think Namita Ma'am is giving you a good offer. 442 00:29:38,480 --> 00:29:40,440 She is the queen of this industry. 443 00:29:40,520 --> 00:29:42,000 I don't think I can 444 00:29:42,080 --> 00:29:43,800 give you a better deal. 445 00:29:43,880 --> 00:29:46,280 Therefore, I am out. But all the best. 446 00:29:46,360 --> 00:29:47,920 - Thank you so much. - Thank you. 447 00:29:48,000 --> 00:29:50,200 I have one question. I was checking your prices. 448 00:29:50,320 --> 00:29:53,080 This is one protein mix. How much is it priced at? 449 00:29:53,200 --> 00:29:54,160 Rs. 165. 450 00:29:57,960 --> 00:30:01,240 Probably, with our discount code, 451 00:30:01,320 --> 00:30:03,520 our product will be cheaper than theirs. 452 00:30:03,600 --> 00:30:04,920 - Got it! - Namita! 453 00:30:05,000 --> 00:30:07,520 [suspenseful music playing] 454 00:30:11,520 --> 00:30:13,040 I am not yet convinced 455 00:30:13,120 --> 00:30:15,960 that it is a 10X better product scientifically. 456 00:30:16,320 --> 00:30:18,800 I couldn't comprehend the potential defensibility of this 457 00:30:18,800 --> 00:30:19,840 from a product standpoint. 458 00:30:20,200 --> 00:30:23,320 Second, I felt that at this price point, I did not find 459 00:30:23,400 --> 00:30:26,240 the market scalability... If I come to this valuation, 460 00:30:26,320 --> 00:30:27,920 how much larger could it potentially grow? 461 00:30:28,000 --> 00:30:29,520 Because of these two reasons, I am out. 462 00:30:30,680 --> 00:30:31,880 Thank you! All the best. 463 00:30:31,960 --> 00:30:33,360 All right! I have a couple of questions. 464 00:30:33,440 --> 00:30:34,840 Let me share my thought process. 465 00:30:34,920 --> 00:30:36,880 - There are many D2C brands. - Yeah. 466 00:30:37,040 --> 00:30:39,600 To be honest, I lack interest in it. 467 00:30:39,720 --> 00:30:43,000 I feel that there is a huge opportunity 468 00:30:43,080 --> 00:30:44,720 to build a connected space. 469 00:30:44,800 --> 00:30:47,240 Let me take Nike's example as a brand. 470 00:30:47,360 --> 00:30:49,800 Nike developed its app-running ecosystem. 471 00:30:49,880 --> 00:30:50,920 And they get data. 472 00:30:51,000 --> 00:30:53,360 They are able to... Their focus is on athletes. 473 00:30:53,440 --> 00:30:57,840 Shoes are a means to improve the life of an athlete. 474 00:30:58,000 --> 00:31:01,120 I feel that I am very interested in long-term 475 00:31:01,200 --> 00:31:03,840 to build a technology angle 476 00:31:03,920 --> 00:31:06,200 to a D2C business like yours, 477 00:31:06,280 --> 00:31:08,880 where you are not just eating the product, 478 00:31:08,960 --> 00:31:11,360 you are also measuring and educating. 479 00:31:11,440 --> 00:31:13,000 It may create a full ecosystem. 480 00:31:13,080 --> 00:31:14,600 Nike is not for athletes. 481 00:31:14,680 --> 00:31:16,000 It's for the common man 482 00:31:16,080 --> 00:31:17,520 who wants to enjoy wearing basketball shoes. 483 00:31:17,600 --> 00:31:19,320 Which is why they don't know about building brands. 484 00:31:19,400 --> 00:31:22,280 But what I am saying is, if that is your interest, 485 00:31:22,360 --> 00:31:24,360 then I will be keen on your business and I can make you an offer. 486 00:31:24,440 --> 00:31:26,160 But think about it while you listen to them. 487 00:31:28,560 --> 00:31:31,160 There are those who believe that you must 488 00:31:31,240 --> 00:31:33,680 focus on marketing or technology. 489 00:31:33,760 --> 00:31:36,200 Anupam and I are into health. 490 00:31:36,280 --> 00:31:38,720 We understand it's purely a product play. 491 00:31:38,800 --> 00:31:41,120 We would like to come together. 492 00:31:41,640 --> 00:31:42,960 If we both come in, 493 00:31:43,040 --> 00:31:45,800 Namita had offered Rs. 1 crore for 2%. 494 00:31:45,880 --> 00:31:48,400 Which puts you at Rs. 50 crores. So, I will join in that. 495 00:31:48,480 --> 00:31:50,280 But, the additional condition is, 496 00:31:50,360 --> 00:31:53,120 give us 1% of your net sales as royalty 497 00:31:53,240 --> 00:31:54,960 until we make 2X of our money. 498 00:32:01,200 --> 00:32:03,280 I will also take the same royalty. 499 00:32:03,360 --> 00:32:05,960 1% net sales 500 00:32:16,360 --> 00:32:18,200 - But I want to be in that space. - Got it. 501 00:32:18,320 --> 00:32:20,920 - Right? - If you want to discuss and negotiate 502 00:32:21,000 --> 00:32:22,440 - then we can talk. - And I also want to add 503 00:32:22,520 --> 00:32:24,880 that I will not do this deal with 504 00:32:24,960 --> 00:32:27,160 other Sharks. I will do this alone. 505 00:32:27,400 --> 00:32:30,480 - Yeah! - Peyush wants you to become a technology company. 506 00:32:31,960 --> 00:32:33,320 You go and decide and then you come back. 507 00:32:33,400 --> 00:32:34,320 - Thank you! - Thank you! 508 00:32:34,440 --> 00:32:35,360 You have to decide if you want to 509 00:32:35,440 --> 00:32:37,400 build your company or work for Peyush. 510 00:32:38,360 --> 00:32:40,600 [mumbling] 511 00:32:40,680 --> 00:32:43,440 I haven't criticized your offer. I made my offer. 512 00:32:43,560 --> 00:32:46,640 And then you start doing this childish thing. 513 00:32:46,720 --> 00:32:48,760 You said you would turn it into a technology company. 514 00:32:48,840 --> 00:32:50,440 I am just sharing what I want to do. 515 00:32:50,560 --> 00:32:51,920 I don't want to invest in D2C. 516 00:32:52,000 --> 00:32:53,840 They are selling protein powder. 517 00:32:54,440 --> 00:32:56,120 'They want the valuation of Rs. 100 crores.' 518 00:32:56,200 --> 00:32:57,760 - You want it to be 2%. - Yes. 519 00:32:57,880 --> 00:32:59,560 You will be out if it's 1.50%. 520 00:32:59,640 --> 00:33:01,560 I am out if it's below 2%. 521 00:33:02,000 --> 00:33:05,000 - Okay! Let's see. - Let's see what she says. 522 00:33:05,080 --> 00:33:06,080 - Let's see what she says. - Yes, Vibha! 523 00:33:15,760 --> 00:33:17,720 But I cannot do it. I am done. 524 00:33:17,800 --> 00:33:19,440 - Thank you so much. - Thanks a lot. 525 00:33:19,520 --> 00:33:22,080 - I will counter you with one offer. - Okay. 526 00:33:22,160 --> 00:33:26,280 Why don't we do Rs. 1 crore for 1.50% instead of 2%? 527 00:33:26,360 --> 00:33:28,520 And 1% royalty, till it becomes 1x. 528 00:33:34,480 --> 00:33:37,120 - It is a good offer. - I will do Rs. 1 crore for 1%. 529 00:33:37,480 --> 00:33:39,640 And royalty only till I get my money back. 530 00:33:47,280 --> 00:33:48,400 Vibha, decide. 531 00:33:48,480 --> 00:33:50,000 We are okay with whatever you decide. 532 00:33:53,200 --> 00:33:55,240 We want to counter with 533 00:34:03,360 --> 00:34:05,120 - for 1% along with royalty? - I will do it if you say 'yes'. 534 00:34:05,200 --> 00:34:06,600 If you say 'yes' now, I will do it. 535 00:34:16,400 --> 00:34:17,360 Please give us a minute. 536 00:34:17,440 --> 00:34:20,320 - No! Rs. 1 crore. 1.50... - Rs. 1 crore with 1% royalty. 537 00:34:21,200 --> 00:34:23,920 It's an expense. It's a 1% expense. 538 00:34:27,360 --> 00:34:28,800 - Okay, ma'am. I agree. - With me? 539 00:34:28,880 --> 00:34:30,240 Namita, we have a deal. 540 00:34:37,600 --> 00:34:39,040 You've made the worst choice. 541 00:34:39,160 --> 00:34:40,320 We will make this big. 542 00:34:40,960 --> 00:34:42,040 [camera clicks] 543 00:34:42,160 --> 00:34:43,480 - Guys, good luck! - Thank you! 544 00:34:43,600 --> 00:34:45,520 - Thank you. It was really great. - I am a customer. 545 00:34:45,600 --> 00:34:48,400 - Thank you so much! Thanks. - Good luck! 546 00:34:50,800 --> 00:34:52,280 - Should I do the victory dance? - No! 547 00:34:52,280 --> 00:34:53,560 - You got it too expensive. - Victory dance. 548 00:34:53,640 --> 00:34:55,680 Oh! Royalty! I got royalty, dude. 549 00:35:52,640 --> 00:35:55,840 [theme music playing] 550 00:36:14,560 --> 00:36:16,000 - Hi, Sharks! - What's up? 551 00:36:22,760 --> 00:36:23,600 Impressive! 552 00:36:23,600 --> 00:36:26,560 Sharks, all of you look stunning today. 553 00:36:26,640 --> 00:36:28,920 - Thank you. - Great jackets! Great dress! 554 00:36:29,000 --> 00:36:32,480 But you need fabric to make amazing garments. 555 00:36:32,560 --> 00:36:35,600 - Yes. - Fashion brands 556 00:36:35,680 --> 00:36:38,400 have to struggle a lot to source their fabric. 557 00:36:38,480 --> 00:36:40,000 Let's say, Nikita from Nagpur 558 00:36:40,080 --> 00:36:41,880 aspires to start her own clothing label. 559 00:36:42,200 --> 00:36:44,720 She will have to travel to different places to procure fabrics. 560 00:36:44,800 --> 00:36:46,880 For cotton, she will have to travel to Bhiwandi. 561 00:36:46,960 --> 00:36:48,840 Erode for viscose. 562 00:36:48,960 --> 00:36:50,120 And Tiruppur for nets. 563 00:36:50,240 --> 00:36:52,280 Since Nikita's brand is quite unique, 564 00:36:52,360 --> 00:36:54,960 she wants customised designs. 565 00:36:55,040 --> 00:36:56,600 The problem has just begun. 566 00:36:56,680 --> 00:37:00,800 Fabric also needs pre-treatment, printing, 567 00:37:00,960 --> 00:37:03,200 dyeing, and colour fastness. 568 00:37:03,320 --> 00:37:06,160 And no one is willing to do business on a small scale. 569 00:37:06,280 --> 00:37:08,240 All designers and private labels 570 00:37:08,320 --> 00:37:09,840 encounter this issue. 571 00:37:09,960 --> 00:37:11,800 To streamline the process of fabric sourcing 572 00:37:31,880 --> 00:37:33,200 200 vendors in India 573 00:37:42,640 --> 00:37:44,600 to make fabric sourcing, design, 574 00:37:44,720 --> 00:37:47,640 customization, and fashion trends 575 00:37:47,720 --> 00:37:50,680 just a click away for all fashion brands and designers. 576 00:37:50,760 --> 00:37:53,080 And for that, our ask is 577 00:38:01,720 --> 00:38:03,680 - Was there a previous investment? - Yes, sir. 578 00:38:03,800 --> 00:38:06,040 We're currently raising a round 579 00:38:06,040 --> 00:38:08,000 for which we've received a commitment of Rs. 8 crores 580 00:38:14,360 --> 00:38:17,440 - Fabriclore, welcome to Shark Tank. - Thank you. 581 00:38:17,520 --> 00:38:19,840 Did you draw inspiration from The Yarn Bazaar? 582 00:38:28,360 --> 00:38:32,560 We started the B2B business in January, rather pivoted it. 583 00:38:32,680 --> 00:38:33,520 Prior to that, 584 00:38:33,600 --> 00:38:36,200 we ran Fabriclore as a consumer brand for six years. 585 00:38:43,560 --> 00:38:46,520 They'd buy three or five metres of fabric 586 00:38:46,600 --> 00:38:48,880 - and get it stitched from the boutique. - I see. 587 00:38:48,960 --> 00:38:51,880 In January, we pivoted it to cater to private labels and brands. 588 00:38:52,920 --> 00:38:56,200 Tell us about your background. How did you get into this business? 589 00:38:56,280 --> 00:39:00,240 I was born in a village near Jaipur 590 00:39:00,320 --> 00:39:01,480 - called Kukas. - Kukas. 591 00:39:01,560 --> 00:39:04,200 I did my engineering in Delhi. 592 00:39:04,280 --> 00:39:07,600 Then I got an opportunity with a US-based company. 593 00:39:07,760 --> 00:39:10,600 They wanted to establish an engineering set-up here. 594 00:39:10,800 --> 00:39:11,760 So, they invited me. 595 00:39:11,880 --> 00:39:14,760 Then I started my engineering company in 2009. 596 00:39:14,840 --> 00:39:16,840 I've done BCA and MBA 597 00:39:17,000 --> 00:39:19,960 after which I joined Vijay's engineering company. 598 00:39:20,120 --> 00:39:22,120 And after that, I joined Fabriclore. 599 00:39:22,200 --> 00:39:23,840 You haven't gotten to the clothes background yet! 600 00:39:23,920 --> 00:39:25,920 - We will now. - We'll get to it now. 601 00:39:26,040 --> 00:39:27,760 I was born in Jaipur. 602 00:39:27,840 --> 00:39:29,200 Vijay is my cousin brother. 603 00:39:29,480 --> 00:39:32,920 We already had a fabric and textile trading business. 604 00:39:33,040 --> 00:39:34,480 I didn't understand my dad's business. 605 00:39:34,560 --> 00:39:36,960 I couldn't open the shutter of the shop early in the morning. 606 00:39:37,120 --> 00:39:38,800 I did have a desire to do something though. 607 00:39:38,880 --> 00:39:41,080 At the time, e-commerce was booming. 608 00:39:41,200 --> 00:39:44,840 I started a domestic marketplace for women entrepreneurs. 609 00:39:44,920 --> 00:39:47,720 I began selling my fabrics online too. 610 00:39:47,920 --> 00:39:51,640 Fortunately, nothing else sold apart from the fabrics. 611 00:39:51,840 --> 00:39:55,560 So, I discussed the opportunity with both of them 612 00:39:55,680 --> 00:39:57,480 and asked them if we could give it a shot. 613 00:39:57,480 --> 00:40:00,680 In March 2016, we started the company. 614 00:40:26,280 --> 00:40:28,480 - We didn't make profits, but we did break even. - Okay. 615 00:40:40,720 --> 00:40:41,680 This was at a time 616 00:40:41,800 --> 00:40:44,680 when we used to dispatch 7,000 orders on a monthly basis. 617 00:40:45,000 --> 00:40:46,400 We were a team of 90 people 618 00:40:46,480 --> 00:40:48,360 and we had raised around Rs. 10 crores. 619 00:40:48,440 --> 00:40:49,720 You had raised Rs. 10 crores! 620 00:40:49,800 --> 00:40:50,880 You raised an investment! 621 00:40:50,960 --> 00:40:52,280 - Yes. - At what valuation? 622 00:41:15,040 --> 00:41:17,640 We might have had a crore rupees in the bank back then, 623 00:41:26,280 --> 00:41:28,760 that private labels and designers were the biggest problem 624 00:41:28,840 --> 00:41:30,960 as that involved fabric discovery, 625 00:41:39,720 --> 00:41:42,000 and said we now have two options. 626 00:41:42,280 --> 00:41:45,160 Either we close this company or we make a pivot. 627 00:41:45,440 --> 00:41:47,120 The pivot would be so strong 628 00:41:47,240 --> 00:41:49,960 that we'd need to shut this down on an immediate basis. 629 00:41:50,280 --> 00:41:52,280 They heard us out and the discussion lasted a month. 630 00:41:52,360 --> 00:41:57,440 In August, our existing investors gave us another Rs. 2.8 crores. 631 00:41:57,520 --> 00:41:58,520 At what valuation? 632 00:42:06,520 --> 00:42:10,080 How did you convince the investors to increase the valuation 633 00:42:10,160 --> 00:42:13,360 when your original business had almost gone to zero? 634 00:42:13,480 --> 00:42:14,440 I don't get it either. 635 00:42:14,560 --> 00:42:15,720 So, what happened at the time was 636 00:42:15,840 --> 00:42:18,760 when we built our digital assets over six years, 637 00:42:18,960 --> 00:42:21,080 our Domain Authority was somewhere around 42. 638 00:42:21,160 --> 00:42:23,360 We had convinced the investors that 639 00:42:23,520 --> 00:42:25,320 if they gave us a chance to pivot, 640 00:42:25,440 --> 00:42:29,880 we would keep the sales numbers around Rs. 50 to 70 lakhs. 641 00:42:29,960 --> 00:42:32,520 Those numbers wouldn't go down despite the drastic pivot. 642 00:42:32,640 --> 00:42:33,840 We gave them a guarantee. 643 00:42:33,920 --> 00:42:36,800 Peyush, he's a good salesman to summarise it. 644 00:42:37,800 --> 00:42:38,960 - Tell me something. - Thank you. 645 00:42:39,040 --> 00:42:42,360 We want to know when you started the new model. 646 00:42:42,520 --> 00:42:44,360 What is your current run rate? 647 00:42:44,440 --> 00:42:46,960 Is the valuation you're about to get in the current round 648 00:42:47,200 --> 00:42:49,200 from previous investors or new ones? 649 00:42:49,320 --> 00:42:51,400 When January 2023 started, 650 00:42:51,480 --> 00:42:54,880 we had anticipated that only until March or April... 651 00:42:54,960 --> 00:42:57,560 That our capital would last us only until March or April. 652 00:42:57,640 --> 00:42:59,760 We couldn't completely stop B2C. 653 00:42:59,840 --> 00:43:00,920 Including that Rs. 2 crores? 654 00:43:01,040 --> 00:43:03,440 The Rs. 2.8 crores we raised in August will also be exhausted 655 00:43:03,520 --> 00:43:05,240 - by March. - You live too much on the edge! 656 00:43:05,760 --> 00:43:08,520 Come March and we didn't have any money left. 657 00:43:08,600 --> 00:43:09,960 We, that is the founders, 658 00:43:10,080 --> 00:43:14,000 took a home loan of Rs. 1.1 crores and injected it into the company. 659 00:43:19,080 --> 00:43:21,080 You've got guts. Time will tell if this was foolhardy. 660 00:43:21,160 --> 00:43:23,600 This is a classic case of entrepreneurs 661 00:43:23,680 --> 00:43:27,240 who jump first and then learn to fly after deploying the parachute! 662 00:43:27,360 --> 00:43:30,680 You're playing on the edge at every turn. That's great. 663 00:43:30,760 --> 00:43:33,680 So, by March, we'd taken a home loan. 664 00:43:33,800 --> 00:43:36,360 Then came May and June, 665 00:43:36,520 --> 00:43:39,320 and we realised the company didn't have enough money. 666 00:43:39,400 --> 00:43:41,360 We could either take orders, 667 00:43:41,520 --> 00:43:42,840 pay the employees 668 00:43:43,080 --> 00:43:44,720 or the founders could take their salaries. 669 00:43:45,480 --> 00:43:47,440 So, we stopped taking our salaries. 670 00:43:47,560 --> 00:43:48,920 For the last seven months, 671 00:43:49,040 --> 00:43:51,040 none of the founders have taken salaries. 672 00:43:51,160 --> 00:43:52,440 What were your salaries earlier? 673 00:43:52,520 --> 00:43:54,320 Our salaries were Rs. 6 lakhs combined. 674 00:43:54,400 --> 00:43:56,320 - Combined, Rs. 2 lakhs each. Okay. - Yes, right. 675 00:43:56,400 --> 00:43:58,560 I'd like to say one thing here, Sharks. 676 00:43:58,640 --> 00:44:00,320 Our team was very supportive. 677 00:44:00,440 --> 00:44:03,040 There was a time when we were scared to go to the office. 678 00:44:03,120 --> 00:44:06,160 What managerial inertia would we even take to the office? 679 00:44:06,320 --> 00:44:08,480 - But... - So, you don't have money now. 680 00:44:09,920 --> 00:44:13,040 We began approaching investors in July. 681 00:44:13,120 --> 00:44:14,960 - New investors? - Yes. 682 00:44:15,240 --> 00:44:16,360 [laughs] 683 00:44:16,480 --> 00:44:19,120 The investors agreed to give us Rs. 8 crores. 684 00:44:19,200 --> 00:44:21,440 Commendable! Hats off to you! 685 00:44:21,720 --> 00:44:22,680 Thank you. 686 00:44:23,440 --> 00:44:24,800 The money has not yet come in. 687 00:44:51,480 --> 00:44:53,080 You want Rs. 56 crores. 688 00:44:53,200 --> 00:44:55,200 I've agreed to Rs. 55 to 56 crores 689 00:44:55,280 --> 00:44:56,720 - because... - Because that will protect you. 690 00:44:56,800 --> 00:44:59,800 - So that your equity is over 50%. - Doesn't fall below 50%. Yes. 691 00:44:59,880 --> 00:45:00,720 I see. 692 00:45:00,800 --> 00:45:02,240 What did you learn from all of this? 693 00:45:02,320 --> 00:45:06,280 We learned that inventory-led and advertising-led models 694 00:45:06,360 --> 00:45:08,240 are neither scaleable nor profitable. 695 00:45:08,360 --> 00:45:09,280 Didn't you learn 696 00:45:09,360 --> 00:45:11,560 that the problem you were trying to solve wasn't the problem? 697 00:45:50,880 --> 00:45:52,720 your revenue should have risen and not dropped. 698 00:45:53,760 --> 00:45:56,000 Amit, we don't have working capital as of now. 699 00:45:56,080 --> 00:45:58,040 We have booked orders of Rs. 85 lakhs 700 00:45:58,160 --> 00:45:59,520 and we're able to fulfil only up to 70 lakhs monthly. 701 00:45:59,600 --> 00:46:01,400 So, we've stopped taking more orders. 702 00:46:02,440 --> 00:46:03,840 As for your B2B sales, 703 00:46:03,920 --> 00:46:06,280 do you have an offline team to sell the products 704 00:46:06,400 --> 00:46:08,480 or do all your sales come through the website? 705 00:46:08,560 --> 00:46:10,400 We have opened an experience studio. 706 00:46:18,320 --> 00:46:20,520 of our experience studio in Jaipur is 90%. 707 00:46:25,240 --> 00:46:27,480 No one is asking the most important question. 708 00:46:27,600 --> 00:46:29,160 What are the types of customers? 709 00:46:48,360 --> 00:46:51,480 Don't these factories in the export business buy from you? 710 00:46:51,560 --> 00:46:53,920 - They're not our target audience. - Not currently. 711 00:46:54,000 --> 00:46:55,200 The reason I am asking is 712 00:46:55,200 --> 00:46:58,440 because your majority that brings in Rs. 1 crore to 40 crores 713 00:46:58,720 --> 00:47:00,480 involves such a lot of hassle. 714 00:47:00,560 --> 00:47:03,160 It has multiple SKUs with such low MOQs. 715 00:47:03,280 --> 00:47:04,760 You're almost like B2C. 716 00:47:04,840 --> 00:47:05,960 No, I'd like to clarify. 717 00:47:06,040 --> 00:47:08,000 Our entire business model is made-to-order. 718 00:47:16,720 --> 00:47:18,040 that our turnaround time, 719 00:47:18,160 --> 00:47:20,880 which normally is 30 to 45 days... 720 00:47:20,960 --> 00:47:24,400 - Our turnaround time is 2 to 3 weeks... - That's your USP. 721 00:47:24,400 --> 00:47:26,160 - That's your USP. - Your rates must be higher. 722 00:47:26,240 --> 00:47:27,280 Yours are custom-made. 723 00:47:27,360 --> 00:47:29,080 If you lower the MOQ, the rates will increase. 724 00:47:29,160 --> 00:47:31,440 - That's what ensures the margin. - How much does the rate go up by? 725 00:47:31,520 --> 00:47:33,960 The price goes up by 10 to 12%. 726 00:47:34,040 --> 00:47:35,200 The company is now at break even, right? 727 00:47:35,280 --> 00:47:36,440 No. We're in losses, 728 00:47:36,520 --> 00:47:38,760 because our revenue is only Rs. 40 to 50 lakhs. 729 00:47:38,880 --> 00:47:41,280 What's your monthly burn? What is the current status? 730 00:47:41,360 --> 00:47:43,160 Our sales last month were Rs. 40 lakhs. 731 00:47:59,520 --> 00:48:00,640 We're not able to serve it. 732 00:48:00,760 --> 00:48:02,600 - So, you're in debt. - That's right. 733 00:48:02,680 --> 00:48:03,800 How much in total? 734 00:48:03,880 --> 00:48:06,240 About Rs. 3.5 to 4 crores. 735 00:48:14,880 --> 00:48:17,000 - Doesn't make sense. - You're on the verge of losing your house. 736 00:48:17,080 --> 00:48:18,600 If this round does not go through as intended... 737 00:48:18,680 --> 00:48:19,720 You just keep smiling. 738 00:48:19,800 --> 00:48:21,040 I can't figure out 739 00:48:21,120 --> 00:48:23,840 whether you're so strong that you're just unruffled! 740 00:48:23,920 --> 00:48:26,000 Anupam, we've been through so much in our lives. 741 00:48:26,120 --> 00:48:27,120 We can't go any lower than this. 742 00:48:27,240 --> 00:48:29,000 When you look up, you're staring at the bottom. 743 00:48:29,080 --> 00:48:29,920 That's how it is. 744 00:48:30,600 --> 00:48:31,960 [laughs] You're right. 745 00:48:32,080 --> 00:48:36,240 - Yes. Right now, you are in debt of about Rs. 4 crores. - Right. 746 00:48:36,320 --> 00:48:39,280 - And you're negotiating valuation with investors. - That's right. 747 00:48:39,400 --> 00:48:40,920 So, I am wondering 748 00:48:42,640 --> 00:48:43,920 I am not negotiating. 749 00:48:44,040 --> 00:48:47,040 The existing investors are saying they could do a downround 750 00:48:47,120 --> 00:48:48,480 but won't go below Rs. 56 crores. 751 00:48:48,600 --> 00:48:49,680 - The discussion is going on. - You... 752 00:48:49,760 --> 00:48:50,920 - Who controls the company? - This... 753 00:48:51,000 --> 00:48:52,600 There's a good solution to this. 754 00:48:56,520 --> 00:48:59,400 but if you meet your performance metrics, 755 00:48:59,520 --> 00:49:01,640 then you'll clawback a certain percentage of shares. 756 00:49:01,920 --> 00:49:06,120 It'd be acceptable to both new as well as old investors. 757 00:49:18,520 --> 00:49:19,400 Thank you, Anupam. 758 00:49:19,480 --> 00:49:22,040 This is a new thought. It hadn't occurred to us until now. 759 00:49:27,080 --> 00:49:29,040 And we've seen the result. 760 00:49:29,040 --> 00:49:32,200 Even after your business shut down, 761 00:49:32,280 --> 00:49:34,200 your investors are ready to give you money at a higher valuation. 762 00:49:34,280 --> 00:49:37,320 Your business has too many complexities, 763 00:49:37,400 --> 00:49:40,320 and as I can see, you're playing with fire here. 764 00:49:40,480 --> 00:49:42,240 Your price seems a little high to me 765 00:49:42,360 --> 00:49:45,400 given the scale and the amount you're burning. 766 00:49:45,520 --> 00:49:49,920 So, I would like to be out fundamentally because of your price. 767 00:49:50,000 --> 00:49:51,400 But, anyway, all the best. 768 00:49:51,400 --> 00:49:53,800 - Hopefully, you will do good. - Thank you. 769 00:49:54,160 --> 00:49:56,560 My fundamental problem is loss-making. 770 00:49:56,640 --> 00:50:00,360 After a dilution of almost 49% 771 00:50:00,560 --> 00:50:03,280 your valuation is around Rs. 56 crores. 772 00:50:03,360 --> 00:50:05,560 The fundamentals of your business 773 00:50:11,120 --> 00:50:13,240 Two Sharks are out. What is your equity split? 774 00:50:31,840 --> 00:50:33,440 That is our next step now. 775 00:50:33,560 --> 00:50:35,800 You are blessed! I would say you are lucky 776 00:50:35,880 --> 00:50:37,600 that someone is giving you Rs. 8 crores 777 00:50:37,680 --> 00:50:40,280 whereas you are taking it casually 778 00:50:40,400 --> 00:50:42,000 and planning to negotiate. 779 00:50:42,080 --> 00:50:45,520 Fundamentally and ethically, it is against my values. 780 00:50:45,600 --> 00:50:47,320 I would repay Rs. 4 crores if I am getting 781 00:50:47,320 --> 00:50:48,960 - Rs. 8 crores so I can sleep peacefully. - That's our plan. 782 00:50:49,040 --> 00:50:49,720 - Absolutely right, Sir. - 'Yes.' 783 00:50:49,800 --> 00:50:51,480 But, otherwise, glad to meet you. 784 00:50:51,560 --> 00:50:53,920 I think you are likely 785 00:50:54,240 --> 00:50:56,280 to make it big after learning from your mistakes. 786 00:50:56,400 --> 00:50:58,160 But today, I am out. 787 00:50:58,400 --> 00:50:59,840 - 'Best of luck.' - Thank you, Peyush. 788 00:50:59,920 --> 00:51:02,360 As a CEO, I would like to give a piece of advice. 789 00:51:07,520 --> 00:51:10,680 The source or valuation doesn't matter for now. 790 00:51:10,880 --> 00:51:12,680 I personally don't think 791 00:51:12,760 --> 00:51:15,320 that I am able to understand the strategy where you shut it down 792 00:51:15,400 --> 00:51:18,040 and then pivoted it at an astronomical scale. 793 00:51:18,120 --> 00:51:20,080 You're saying the working capital is squeezed 794 00:51:20,160 --> 00:51:21,880 so it can't be scaled. 795 00:51:21,960 --> 00:51:24,280 It's a chicken and egg situation. I am out for today. 796 00:51:26,200 --> 00:51:27,360 I am out 797 00:51:28,160 --> 00:51:30,840 because at this valuation I have no hope 798 00:51:30,920 --> 00:51:33,280 of getting my money back. 799 00:51:33,360 --> 00:51:35,120 - Alright. Good luck. Glad to meet you. - Thank you. 800 00:51:35,200 --> 00:51:36,200 - Thank you. - 'All the best, guys.' 801 00:51:36,280 --> 00:51:37,800 - Thank you so much. - Thank you. 802 00:51:41,280 --> 00:51:43,320 The competition that China is giving 803 00:51:43,440 --> 00:51:46,480 is impossible to face by people. 804 00:51:46,560 --> 00:51:50,040 Since the past 4 to 5 years, 805 00:51:50,440 --> 00:51:53,160 we see a scope, but the situation was so bad before that. 806 00:51:53,240 --> 00:51:55,440 But I am noticing the new designers 807 00:51:55,520 --> 00:51:57,600 on the Instagram market 808 00:51:57,680 --> 00:51:59,000 who are manufacturing clothes at a small scale 809 00:51:59,080 --> 00:52:00,960 and need supply... 810 00:52:01,080 --> 00:52:04,080 But their cash burn model is so high... 811 00:52:04,160 --> 00:52:06,200 The cash burn must be zero in B2B sales. 812 00:52:06,280 --> 00:52:07,200 I don't understand 813 00:52:07,280 --> 00:52:09,560 - their right to win. - Imagine the cash burn despite it. 814 00:52:09,640 --> 00:52:12,080 - It is their load... - Their mindset is an issue. 815 00:52:12,160 --> 00:52:13,120 I think their load... 816 00:52:13,200 --> 00:52:15,960 I think their business only needs a stronger execution. 817 00:52:16,040 --> 00:52:17,880 - Exactly! - He needs a stronger team. 818 00:54:15,720 --> 00:54:18,240 [music playing] 819 00:54:24,280 --> 00:54:25,560 Welcome to the show, Sir. 820 00:54:25,640 --> 00:54:27,520 Sir, today's question is by Yash from Mumbai. 821 00:54:27,640 --> 00:54:30,480 He has asked an interesting question in English mixed with Hindi. 822 00:54:48,160 --> 00:54:49,920 I wanted to do business. 823 00:54:50,000 --> 00:54:53,560 Since 2011, I started with my fight for business 824 00:54:53,680 --> 00:54:56,120 so I would come up with a new business idea every month. 825 00:54:56,360 --> 00:54:59,080 - Just like that, one day, - Got it. 826 00:54:59,160 --> 00:55:00,760 I got an idea of 'news in 60 words'. 827 00:55:00,840 --> 00:55:02,120 And, thankfully, it worked well. 828 00:55:02,200 --> 00:55:04,000 It gave a good start to my journey. 829 00:55:04,120 --> 00:55:06,800 I never thought of changing the industry. 830 00:55:06,880 --> 00:55:10,240 It so happened that I started moving on in that direction. 831 00:55:10,520 --> 00:55:12,920 A beautifully put, honest answer! 832 00:55:13,040 --> 00:55:15,560 I have met a few people 833 00:55:15,640 --> 00:55:17,120 who are doing good in life 834 00:55:17,200 --> 00:55:20,000 which was like luck by chance, just like you.