1 00:00:09,960 --> 00:00:11,680 [music playing] 2 00:00:18,040 --> 00:00:20,280 [music playing] 3 00:00:24,960 --> 00:00:26,800 [music playing] 4 00:00:33,720 --> 00:00:35,440 [music playing] 5 00:00:52,920 --> 00:00:55,720 What are you thinking, uncle? 6 00:00:55,880 --> 00:00:59,400 Watching Shark Tank, I also strongly feel 7 00:00:59,480 --> 00:01:01,080 like starting a Ghee business. 8 00:01:02,800 --> 00:01:06,000 Like, Vineeta did an ad promotion with Ranveer. 9 00:01:06,080 --> 00:01:08,000 Similarly, I'll also find a big star 10 00:01:08,120 --> 00:01:09,600 to do an ad promotion. 11 00:01:09,680 --> 00:01:13,520 Uncle, these stars charge crores of rupees for a day's work. 12 00:01:13,640 --> 00:01:15,040 I don't have that. 13 00:01:16,200 --> 00:01:18,560 It's okay. You still have Creative Hatti. 14 00:01:18,640 --> 00:01:19,720 What's that? 15 00:01:19,800 --> 00:01:22,200 Look, when we think of Ghee, 16 00:01:22,280 --> 00:01:25,040 then we think of our grandma first. 17 00:01:25,840 --> 00:01:27,760 So we make grandma do the promotions. 18 00:01:27,840 --> 00:01:28,840 But dear, my grandma... 19 00:01:28,920 --> 00:01:30,200 Not your grandma, uncle. 20 00:01:31,440 --> 00:01:33,160 Your grandma has passed away. 21 00:01:33,240 --> 00:01:34,840 This grandma is immortal. 22 00:01:34,920 --> 00:01:36,880 Wait, grandma! 23 00:01:40,280 --> 00:01:44,040 So, to explain your business to your customers, we have grandma. 24 00:01:44,960 --> 00:01:45,960 Wow! 25 00:01:47,200 --> 00:01:49,520 We'll even have to offer discounts to customers. 26 00:01:49,520 --> 00:01:50,320 Of course. 27 00:01:50,400 --> 00:01:53,240 - Even for that we have grandma. - Awesome! 28 00:01:54,320 --> 00:01:56,320 On top of that, to wish customers 29 00:01:56,440 --> 00:01:58,720 on festival days like Diwali, 30 00:01:58,800 --> 00:02:01,200 you have grandma for that. 31 00:02:02,040 --> 00:02:03,560 That's amazing, Shallu. 32 00:02:03,640 --> 00:02:05,520 This grandma seems to be an all-rounder. 33 00:02:05,600 --> 00:02:07,480 My business is going to be a superhit. 34 00:02:07,560 --> 00:02:09,600 Uncle, start it first. 35 00:02:11,280 --> 00:02:15,000 So, sharks, Creative Hatti provides such solutions. 36 00:02:15,880 --> 00:02:18,360 Sharks, Creative Hatti is a platform 37 00:02:18,440 --> 00:02:19,720 where you get 38 00:02:32,200 --> 00:02:33,720 Our country is very diverse. 39 00:02:33,800 --> 00:02:35,360 We find people of different cultures. 40 00:02:35,440 --> 00:02:37,360 But if we go online to search for 41 00:02:37,400 --> 00:02:39,600 graphics, we only find limited options. 42 00:02:39,760 --> 00:02:42,160 We at Creative Hatti have brought a solution for this. 43 00:02:43,440 --> 00:02:45,800 The graphics from Creative Hatti are not just for startups, 44 00:02:45,880 --> 00:02:47,160 but are used even by 45 00:02:47,200 --> 00:02:49,840 large companies like Amazon, Flipkart and Paytm. 46 00:02:49,920 --> 00:02:51,320 All of them use it. 47 00:02:51,400 --> 00:02:53,520 Not just that, even a lot of companies 48 00:02:53,560 --> 00:02:55,600 on Shark Tank have used our graphics. 49 00:02:55,680 --> 00:02:57,920 And that's why on Instagram, 50 00:02:58,040 --> 00:02:59,840 Nisha is known as Shark Designer. 51 00:03:00,400 --> 00:03:03,880 And today, we have a stock of over 1 lakh characters. 52 00:03:26,640 --> 00:03:28,000 through Creative Hatti. 53 00:03:45,960 --> 00:03:47,640 from Panchkula, where did you meet? 54 00:03:48,400 --> 00:03:50,600 Me and Nisha have known each other from childhood. 55 00:03:50,680 --> 00:03:52,000 We went to school together. 56 00:03:52,120 --> 00:03:56,200 And we met these three amazing co-founders during graduation. 57 00:03:57,280 --> 00:03:58,880 And we decided that 58 00:03:58,960 --> 00:04:01,720 we'll transform this friendship into a business. 59 00:04:01,800 --> 00:04:03,920 We rented a small house 60 00:04:04,040 --> 00:04:07,000 and started our business from there. 61 00:04:55,600 --> 00:04:56,800 And you aren't married yet? 62 00:04:56,880 --> 00:04:58,480 - Me... - I'm married. - Who? 63 00:04:58,560 --> 00:04:59,920 Me and Mukesh. 64 00:05:00,040 --> 00:05:00,920 Nisha and Pawan. 65 00:05:01,000 --> 00:05:02,280 Oh! 66 00:05:02,360 --> 00:05:04,440 What about you, brother? 67 00:05:04,920 --> 00:05:06,200 He's with someone else. 68 00:05:06,320 --> 00:05:08,040 - Someone else. - Right. 69 00:05:08,920 --> 00:05:11,440 And now after marriage, all of you live in the same house? 70 00:05:11,520 --> 00:05:12,960 - Yes, we live in the same house. - All together. 71 00:05:50,520 --> 00:05:53,000 Let's come to the product now. 72 00:05:53,080 --> 00:05:54,760 What are your roles? 73 00:05:54,840 --> 00:05:56,280 Who does what in the company? 74 00:05:56,360 --> 00:05:58,360 I'm Mukesh, the CEO of the company. 75 00:06:06,080 --> 00:06:07,160 Explain the business. 76 00:06:07,240 --> 00:06:10,600 Sharks, this is the homepage of our website, Creative Hatti. 77 00:06:10,720 --> 00:06:13,920 You can download our characters and graphic templates. 78 00:06:20,280 --> 00:06:23,960 I want to show the illustrations of some amazing persons 79 00:06:24,200 --> 00:06:25,320 in a vector style. 80 00:06:25,400 --> 00:06:27,040 We are the top-notch freebies. 81 00:06:27,120 --> 00:06:29,240 [laughing] 82 00:06:30,400 --> 00:06:32,360 So... 83 00:06:32,840 --> 00:06:35,720 The heart and soul of our business are our characters. 84 00:06:35,800 --> 00:06:37,480 There are multiple poses. 85 00:06:37,560 --> 00:06:38,800 For example, Anupam, 86 00:06:38,880 --> 00:06:42,000 let's say you need a priest for Shaadi.com. 87 00:06:42,240 --> 00:06:44,240 Our priest, Mr. Rameshwar, 88 00:06:44,320 --> 00:06:46,720 I think is perfect for your business. 89 00:06:48,080 --> 00:06:51,240 And the price is Rs. 4000 for the entire character set? 90 00:06:59,680 --> 00:07:00,800 - It's mine? - Yes. 91 00:07:00,880 --> 00:07:02,640 And if there's any IP infringement? 92 00:07:13,520 --> 00:07:14,520 Understood. 93 00:07:15,320 --> 00:07:17,280 If someone downloads your images 94 00:07:17,400 --> 00:07:19,640 and distribute it on WhatsApp, how will you protect that? 95 00:07:20,400 --> 00:07:22,920 We can't stop the distribution. 96 00:07:23,000 --> 00:07:25,600 But if there's a big company or a corporate, 97 00:07:25,720 --> 00:07:28,160 they already understand that if they print it... 98 00:07:28,240 --> 00:07:30,640 Do you have any legal team to protect it? 99 00:07:30,720 --> 00:07:32,640 We don't have a legal team as of now. 100 00:07:33,120 --> 00:07:34,960 If someone copies you, 101 00:07:35,080 --> 00:07:37,200 then you don't send a legal notice? 102 00:07:37,280 --> 00:07:38,640 We send them an email. 103 00:07:38,720 --> 00:07:40,640 Mostly, either they remove it, 104 00:07:40,760 --> 00:07:42,000 or pay for it. 105 00:07:42,120 --> 00:07:43,360 But how do you find out? 106 00:07:43,440 --> 00:07:44,680 Google image search. 107 00:07:44,760 --> 00:07:47,480 Google, Instagram, that's how we find out. 108 00:07:47,600 --> 00:07:49,280 You should invest in technology 109 00:07:49,400 --> 00:07:50,920 to detect infringement. 110 00:07:52,000 --> 00:07:54,240 But if I want the same priest, 111 00:07:54,320 --> 00:07:56,680 then it's not that it's exclusively for Anupam. 112 00:07:56,760 --> 00:07:59,520 But can I pay you more and take it exclusively? 113 00:07:59,600 --> 00:08:02,320 There's no exclusive model, but an upscaling model. 114 00:08:02,400 --> 00:08:04,760 We'll tell you to get it custom-made from us. 115 00:08:04,880 --> 00:08:06,520 Understood, got it. 116 00:08:06,640 --> 00:08:09,400 But these are similar to Shutterstock. 117 00:08:09,520 --> 00:08:12,320 No. These are our in-house characters. 118 00:08:12,400 --> 00:08:14,440 Shutterstock has contributor data. 119 00:08:14,520 --> 00:08:17,200 Plus, they have a diverse global data. 120 00:08:17,320 --> 00:08:19,080 No one has so much Indian data. 121 00:08:19,160 --> 00:08:20,920 We can say, a single business model 122 00:08:21,000 --> 00:08:23,800 but not exactly the same because we're tapping the niche market. 123 00:08:25,960 --> 00:08:28,880 Tell me something, does the fundamentals of your business 124 00:08:41,560 --> 00:08:42,840 As far as I understand, 125 00:08:52,520 --> 00:08:54,720 after this kind of AI development? 126 00:08:55,520 --> 00:08:57,760 AI, like Midjourney, 127 00:08:57,840 --> 00:09:01,160 takes data from various places in the internet and create it for you. 128 00:09:01,440 --> 00:09:03,480 But if no data exists, 129 00:09:03,560 --> 00:09:04,640 something no one has made, 130 00:09:04,760 --> 00:09:05,840 we even make that data. 131 00:09:05,920 --> 00:09:08,800 You can create brand new images on Midjourney. 132 00:09:08,920 --> 00:09:10,000 Even the ones that don't exist. 133 00:09:10,040 --> 00:09:11,880 There's a lot available for free. 134 00:09:12,840 --> 00:09:14,040 - No, sir.. - I mean... 135 00:09:14,120 --> 00:09:15,800 This is our speciality, sir. 136 00:09:15,880 --> 00:09:18,840 There's a lot available, but you won't find these ones. 137 00:09:18,920 --> 00:09:20,480 - How do you earn revenue? - How do you earn revenue? 138 00:09:20,520 --> 00:09:21,920 We have three revenue streams. 139 00:09:22,000 --> 00:09:23,320 Our own website. 140 00:09:39,040 --> 00:09:40,200 When did you start the company? 141 00:09:55,000 --> 00:09:56,040 Around 22%. 142 00:09:56,120 --> 00:09:57,240 And how much will you earn this year? 143 00:09:57,240 --> 00:09:59,160 This year, we're projecting Rs. 7 crores. 144 00:10:19,320 --> 00:10:20,840 The expense must mainly be on manpower? 145 00:10:20,880 --> 00:10:21,600 Yes, manpower. 146 00:10:21,680 --> 00:10:24,040 - What's your team size? - A team of 40, sir. 147 00:10:24,120 --> 00:10:26,600 So, your average order value is around Rs. 800. 148 00:10:26,680 --> 00:10:27,480 Yes, ma'am. 149 00:10:27,560 --> 00:10:29,200 It was mentioned as Rs. 4000 there. 150 00:10:38,200 --> 00:10:40,080 Actually, we're not investing in CAC right now. 151 00:10:45,600 --> 00:10:47,480 - your profit is Rs 12 lakhs. - Yes. 152 00:10:52,000 --> 00:10:54,520 - Yes. - So you will be in a big loss. 153 00:10:56,800 --> 00:10:59,640 The major part is spent on salaries now. 154 00:10:59,800 --> 00:11:01,520 The major share goes to the team. 155 00:11:14,200 --> 00:11:15,440 The revenue is Rs 55 lakhs. Where's the rest? 156 00:11:15,440 --> 00:11:17,520 We spend a bit on infrastructure. 157 00:11:17,640 --> 00:11:18,560 What's the infrastructure? 158 00:11:19,320 --> 00:11:22,440 Infra is basically the rent for the office. 159 00:11:22,520 --> 00:11:23,800 It can't be so high. 160 00:11:23,880 --> 00:11:25,760 Will you spend Rs 15 lakhs on rent in a place like Panchkula? 161 00:11:26,560 --> 00:11:28,680 No, we're not spending Rs 15 lakhs on it. 162 00:11:28,760 --> 00:11:29,800 We have three offices. 163 00:11:29,880 --> 00:11:32,200 Then systems, software licensing, 164 00:11:32,280 --> 00:11:33,720 team journey expenses, 165 00:11:33,880 --> 00:11:35,080 ChatGPT expenses. 166 00:11:35,160 --> 00:11:37,240 Then research, team expenses, 167 00:11:37,320 --> 00:11:39,600 we spend Rs 5-7 lakhs on this. 168 00:11:39,800 --> 00:11:40,920 That makes it Rs 30 lakhs. 169 00:11:41,680 --> 00:11:44,400 - We have to get to Rs 40 lakhs. - Yes. 170 00:11:44,520 --> 00:11:46,600 Have you deducted GST or not? 171 00:11:46,720 --> 00:11:49,080 No, we haven't deducted GST. It's all-inclusive. 172 00:11:49,200 --> 00:11:50,760 Rs 10 lakhs will be GST. 173 00:11:50,880 --> 00:11:53,480 - What's the GST in this category? - 18 per cent. 174 00:11:54,480 --> 00:11:57,320 As far as my understanding goes, your business 175 00:11:57,640 --> 00:11:59,040 is a freelancer business. 176 00:12:00,120 --> 00:12:02,720 Five freelancers have come together 177 00:12:02,800 --> 00:12:06,360 and are putting this up like a business to secure funds. 178 00:12:06,440 --> 00:12:08,800 That's not possible, as far as I know. 179 00:12:09,640 --> 00:12:12,560 The other threat of generative AI that we've already discussed. 180 00:12:12,640 --> 00:12:14,600 I think you're underestimating it. 181 00:12:14,680 --> 00:12:16,560 It will end your business. 182 00:12:17,720 --> 00:12:20,560 So, that's the reason, I'm out. But I wish you all the best. 183 00:12:20,760 --> 00:12:21,880 [music playing] 184 00:12:21,960 --> 00:12:24,200 I believe that 185 00:12:24,280 --> 00:12:26,800 to really build something large 186 00:12:26,920 --> 00:12:29,120 each of your IP 187 00:12:29,240 --> 00:12:31,760 that you're building like Fateh Singh, Nani, 188 00:12:31,920 --> 00:12:34,160 whatever you're creating, 189 00:12:34,240 --> 00:12:36,080 you have to make them popular. 190 00:12:36,160 --> 00:12:39,560 They will have eventually... Like AI influencers 191 00:12:39,640 --> 00:12:41,800 they will have their page on Instagram 192 00:12:42,840 --> 00:12:45,680 and they have to become a brand. Only then, 193 00:12:45,760 --> 00:12:46,600 they will continue. 194 00:12:46,720 --> 00:12:49,160 Else anybody can... What you're selling for Rs 4000, 195 00:12:49,240 --> 00:12:51,920 any designer will copy it and sell it for Rs 3000. 196 00:12:52,000 --> 00:12:53,720 The customer is not looking for Nani. 197 00:12:53,800 --> 00:12:55,160 The customer is looking for any Nani. 198 00:12:55,320 --> 00:12:58,160 India is so populated that 199 00:12:58,240 --> 00:13:00,400 someone can sell your product for cheap. 200 00:13:01,320 --> 00:13:04,320 I think right now that journey 201 00:13:04,400 --> 00:13:07,880 from Rs 7 crores to 50 crores, 202 00:13:08,000 --> 00:13:10,280 there seems to be team gaps 203 00:13:10,360 --> 00:13:11,960 and approach gaps for it. 204 00:13:12,040 --> 00:13:14,320 So, I'm out of it now. 205 00:13:15,280 --> 00:13:16,440 Best of luck. 206 00:13:17,080 --> 00:13:20,560 Your graphics will have a limited use. 207 00:13:20,640 --> 00:13:22,640 In branding or communication. 208 00:13:23,480 --> 00:13:27,600 It can be built to become Rs 30-40 crores worth, I've no doubt. 209 00:13:27,680 --> 00:13:29,000 But as an investor, 210 00:13:29,080 --> 00:13:31,000 to get an exit 211 00:13:31,120 --> 00:13:33,240 you have to reach a certain sale point 212 00:13:33,320 --> 00:13:36,840 which I'm not confident about with this character. 213 00:13:37,000 --> 00:13:38,680 And for that reason, I'm out. 214 00:13:40,400 --> 00:13:42,640 This business is 215 00:13:42,720 --> 00:13:45,720 not so large scale from an investment perspective. 216 00:13:45,960 --> 00:13:49,320 It's a partly services business with repeated custom orders. 217 00:13:49,400 --> 00:13:51,600 If I get into the other side partly, 218 00:13:51,680 --> 00:13:54,560 you should focus on the product business as it's very high ma 219 00:13:54,640 --> 00:13:57,600 Once the character is made, the money will keep coming. 220 00:13:58,800 --> 00:14:00,320 I'm out for that reason. But, 221 00:14:00,400 --> 00:14:02,360 I wish you all the best. I don't think you should raise funds. 222 00:14:02,440 --> 00:14:03,280 You're doing very well. 223 00:14:14,360 --> 00:14:16,640 - It's photography, so it's expensive - Exactly. It's hard work. 224 00:14:18,320 --> 00:14:20,360 If you make a community-driven platform 225 00:14:20,440 --> 00:14:24,120 where you're contributing, as we find very few Indian images right now. 226 00:14:24,520 --> 00:14:26,320 If you're making it community-based 227 00:14:26,400 --> 00:14:29,120 from character to community, then add photography. 228 00:14:29,200 --> 00:14:31,120 That will be a better idea to scale up the business. 229 00:14:32,400 --> 00:14:33,680 But for now, you're profitable. 230 00:14:33,760 --> 00:14:35,360 You just need to invest in your technology and build 231 00:14:35,360 --> 00:14:36,240 your community platform. 232 00:14:36,280 --> 00:14:38,080 And you're doing amazingly well, guys. Keep it up. 233 00:14:38,240 --> 00:14:39,120 Thank you. 234 00:14:39,880 --> 00:14:41,520 Unfortunately, I'm out too. 235 00:14:46,160 --> 00:14:47,800 But stay on it. 236 00:14:47,880 --> 00:14:50,480 You don't need investors. So don't get into it. 237 00:14:50,560 --> 00:14:52,240 - Superb! Very good pitch. - All the best. 238 00:14:52,320 --> 00:14:54,360 We wish the five of you best of luck. 239 00:14:54,440 --> 00:14:55,360 And we'll be rooting for you. 240 00:14:55,440 --> 00:14:57,200 - From... - Just love what you've built. 241 00:14:57,280 --> 00:14:58,800 - Thank you, Sharks. - Thank you. 242 00:15:18,480 --> 00:15:20,240 [music playing] 243 00:15:21,240 --> 00:15:22,640 Flyrobe. You know Flyrobe, right? 244 00:15:24,080 --> 00:15:24,640 What is it? 245 00:15:24,720 --> 00:15:26,640 It's the Indian version of Rent the Runway. 246 00:15:26,720 --> 00:15:28,640 Oh my, God! Flyrobe. 247 00:15:28,720 --> 00:15:30,800 This is a 10-year-old company that died. 248 00:15:30,800 --> 00:15:31,800 I know. 249 00:15:32,040 --> 00:15:34,000 Obviously, it's a reinvention game. 250 00:15:37,640 --> 00:15:40,160 [music playing] 251 00:15:47,880 --> 00:15:50,040 [music playing] 252 00:16:02,840 --> 00:16:03,760 What-the-Rahul? 253 00:16:03,840 --> 00:16:05,800 - Rahul, what are you doing here? - What-the-Rahul? 254 00:16:09,560 --> 00:16:10,200 Oh, very good. 255 00:16:10,280 --> 00:16:12,040 There's a dilemma. 256 00:16:12,120 --> 00:16:14,360 I'm here to find a solution for it. 257 00:16:14,560 --> 00:16:16,760 Meet her. She's Aanchal from Delhi. 258 00:16:17,000 --> 00:16:19,120 And they're Shweta and Rishabh from Bengaluru. 259 00:16:19,320 --> 00:16:20,880 Name your companies quickly. 260 00:16:20,960 --> 00:16:22,960 Our company is called Candid Men. 261 00:16:25,160 --> 00:16:26,680 And my company is called Flyrobe. 262 00:16:28,680 --> 00:16:30,080 Flyrobe and Candid Men 263 00:16:30,200 --> 00:16:34,600 are two great but similar businesses. 264 00:16:34,960 --> 00:16:38,280 So we were confused about whose pitch to send further. 265 00:16:38,640 --> 00:16:40,200 So we decided that 266 00:16:40,320 --> 00:16:42,360 why not give them both an equal chance? 267 00:16:49,240 --> 00:16:50,400 And for you to question them. 268 00:16:50,480 --> 00:16:52,320 After that, you will hear this. [buzzer rings] 269 00:16:53,080 --> 00:16:55,280 It means that time is up. 270 00:16:55,360 --> 00:16:57,200 But there's a small twist. 271 00:16:57,280 --> 00:16:59,720 As Sharks, you have to 272 00:16:59,840 --> 00:17:01,240 hold your decision till the end. 273 00:17:01,320 --> 00:17:03,920 Until both the pitches are complete. 274 00:17:04,000 --> 00:17:06,800 Your decision of investment or no investment, whatever it is, 275 00:17:06,880 --> 00:17:08,520 you won't reveal it until then. 276 00:17:09,960 --> 00:17:11,520 Whoever wins the toss will go first. 277 00:17:11,600 --> 00:17:13,520 And regarding the investment, 278 00:17:13,640 --> 00:17:15,840 it's your money so the decision is yours too. 279 00:17:25,800 --> 00:17:27,640 Shall we toss? Who's calling? 280 00:17:27,800 --> 00:17:28,960 I'll call for tails. 281 00:17:29,080 --> 00:17:30,080 You're calling for tails. 282 00:17:30,160 --> 00:17:32,000 So, you have heads. If we get heads, you will go first. 283 00:17:32,080 --> 00:17:33,800 - Done. - And if it's tails, you will. Done? 284 00:17:34,320 --> 00:17:37,360 On the count of three, two, one. 285 00:17:37,480 --> 00:17:39,880 [music playing] 286 00:17:40,200 --> 00:17:41,720 - Tails. - It's tails. Congratulations! 287 00:17:57,840 --> 00:18:00,360 that we're wearing suits today. 288 00:18:01,440 --> 00:18:05,240 She bought this suit for Rs 13,000. 289 00:18:05,400 --> 00:18:09,640 The MRP of my suit is Rs 13,000 too. 290 00:18:09,720 --> 00:18:14,160 But I got it for Rs 1500. 291 00:18:15,240 --> 00:18:17,560 Because I've rented it. 292 00:18:17,640 --> 00:18:21,920 She spent Rs 11,500 more than me. 293 00:18:22,200 --> 00:18:23,400 On a suit 294 00:18:23,480 --> 00:18:26,640 - that she might never wear again. - Hmm. 295 00:18:26,920 --> 00:18:29,560 Because she's an emotional buyer. 296 00:18:29,640 --> 00:18:31,680 And I'm a logical buyer. 297 00:18:32,800 --> 00:18:36,080 We observed this psychology of men. 298 00:18:36,160 --> 00:18:40,160 We noticed that they want to wear a nice variety of clothes 299 00:18:40,240 --> 00:18:42,720 but they don't wish to spend so much 300 00:18:42,800 --> 00:18:44,920 on one-time occasion wear. 301 00:18:45,040 --> 00:18:48,320 But everyone deserves to look great at an event. 302 00:18:48,400 --> 00:18:50,040 So, we've brought to you, 303 00:18:50,120 --> 00:18:53,000 for our beloved men, Candid Men. 304 00:19:44,120 --> 00:19:46,280 men's number one choice. 305 00:20:03,360 --> 00:20:04,880 Come on, Rishabh! Shweta! 306 00:20:26,560 --> 00:20:27,680 [song fades] 307 00:20:28,720 --> 00:20:31,080 Rishabh! Shweta! I loved the clothes. 308 00:20:31,200 --> 00:20:32,320 - Thank you. - Thanks. 309 00:20:32,600 --> 00:20:33,800 Do you design it yourself? 310 00:20:43,760 --> 00:20:45,880 - He's my brother. - How did you start it? Okay. 311 00:20:46,000 --> 00:20:48,040 It so happened that 312 00:20:48,360 --> 00:20:51,400 two weddings fell in the same month 313 00:20:51,520 --> 00:20:54,480 and I bought three to four pairs of clothes. 314 00:20:54,560 --> 00:20:57,480 I spent around Rs. 30,000 to 35,000. 315 00:20:57,560 --> 00:21:00,160 It felt great when I wore it for the first wedding. 316 00:21:00,320 --> 00:21:03,520 When I wore the same clothes to the other wedding after two weeks, 317 00:21:03,720 --> 00:21:05,480 my excitement had died. 318 00:21:06,400 --> 00:21:07,960 I also realised one thing. 319 00:21:08,080 --> 00:21:10,000 I had spent Rs. 35,000 then, 320 00:21:10,080 --> 00:21:12,480 but didn't wish to spend that much again. 321 00:21:12,720 --> 00:21:15,440 So, it occurred to me that rentals had a good scope. 322 00:21:15,520 --> 00:21:16,400 Interesting. 323 00:21:16,520 --> 00:21:18,080 Please tell me your background. 324 00:21:18,320 --> 00:21:20,520 I've done Computer Science Engineering 325 00:21:20,600 --> 00:21:21,760 from VIT, Vellore. 326 00:21:22,800 --> 00:21:25,000 - My father was into the textile business. - Okay. 327 00:21:25,080 --> 00:21:27,920 I've seen how the textile business functions through him. 328 00:21:28,000 --> 00:21:28,920 Where is it based? 329 00:21:29,000 --> 00:21:30,960 - Erode, Tamil Nadu. - Okay. 330 00:21:34,920 --> 00:21:37,080 - No, I'm not at all angry. - Okay. 331 00:21:38,200 --> 00:21:41,560 Like my sister, I too studied Computer Science Engineering 332 00:21:45,720 --> 00:21:46,640 It's not anger. 333 00:21:46,880 --> 00:21:47,920 - Yes. - Otherwise, you're outspoken. 334 00:21:48,000 --> 00:21:49,920 Just not in front of your sister. Please continue. 335 00:21:50,040 --> 00:21:53,120 I worked for my dad's business also for a while. 336 00:21:53,480 --> 00:21:56,080 I was in the US for one and a half years 337 00:21:56,160 --> 00:21:57,280 to study for MS. 338 00:21:57,400 --> 00:21:58,920 Is she the CEO or are you? 339 00:21:59,080 --> 00:22:00,320 - She is. - I am the CEO. 340 00:22:00,400 --> 00:22:01,240 Got it. 341 00:22:01,320 --> 00:22:03,720 I have a question about this market. 342 00:22:03,800 --> 00:22:06,760 When Rent the Runway, a billion-dollar company, 343 00:22:06,880 --> 00:22:08,000 became big 15 years ago, 344 00:22:08,160 --> 00:22:10,800 many players tried in India after that. 345 00:22:11,040 --> 00:22:12,320 There's a stigma to it 346 00:22:12,440 --> 00:22:14,400 just as there is to repeating your clothes. 347 00:22:14,480 --> 00:22:18,080 Similarly, there's a stigma to wearing rented outfits as well. 348 00:22:18,240 --> 00:22:20,320 Do you see that changing? 349 00:22:21,120 --> 00:22:23,840 Ma'am, the stigma definitely exists, but it has significantly improved. 350 00:22:23,920 --> 00:22:27,120 Rental companies earlier 351 00:22:27,520 --> 00:22:31,040 would treat their customers from the angle of affordability. 352 00:22:31,120 --> 00:22:34,200 Only the customers who don't have money would rent clothes. 353 00:22:34,320 --> 00:22:37,320 They had that kind of stock too which wasn't in trend at all. 354 00:23:07,680 --> 00:23:09,840 What's the average price range of your outfits? 355 00:23:16,120 --> 00:23:17,520 Minimum four days. 356 00:23:27,080 --> 00:23:28,320 What's the average cost? 357 00:23:28,480 --> 00:23:29,600 Rs. 2,300, sir. 358 00:23:41,240 --> 00:23:44,480 then you need to rotate one outfit 15 to 20 times 359 00:23:54,760 --> 00:23:56,080 - On MRP. - On MRP. 360 00:23:56,160 --> 00:23:58,360 - Okay. - How much will this cost me otherwise? 361 00:23:58,480 --> 00:24:00,160 Minimum Rs. 6,000. 362 00:24:00,240 --> 00:24:03,200 I think a similar unbranded outfit will cost Rs. 4,000 to 5,000. 363 00:24:04,480 --> 00:24:07,560 If you're only going to wear it once, 364 00:24:07,720 --> 00:24:10,640 even then paying Rs. 1,300 is cheaper than Rs. 4,000, right? 365 00:24:10,760 --> 00:24:13,040 Okay. This one's for Rs. 1,300. What about the other products? 366 00:24:13,120 --> 00:24:16,200 - The rental for the Jodhpuri set is for Rs. 2,600. - Okay. 367 00:24:16,600 --> 00:24:18,760 This one's also for Rs. 2,600. 368 00:24:18,880 --> 00:24:22,160 This is heavy. It is for Rs. 5,500. 369 00:24:22,240 --> 00:24:23,520 How much would it cost? 370 00:24:23,640 --> 00:24:26,000 This will cost you at least Rs. 35,000 in the market. 371 00:24:27,560 --> 00:24:29,920 Are these branded outfits? 372 00:24:30,080 --> 00:24:32,800 - This is our... - We don't sell it under a brand name. 373 00:24:32,920 --> 00:24:34,240 - Not sell. Sorry. Rent. - Sorry. Rent. 374 00:24:34,320 --> 00:24:36,560 Do you also have a shop or is it an online rental only? 375 00:24:47,600 --> 00:24:50,960 we allowed customers to try our outfits there. 376 00:24:51,160 --> 00:24:52,360 Customers would come to the office 377 00:24:52,440 --> 00:24:55,120 after pre-selecting the outfits from the website. 378 00:24:55,200 --> 00:24:58,360 The sales personnel would keep those clothes in the trial room 379 00:24:58,440 --> 00:24:59,480 for them to try on. 380 00:24:59,560 --> 00:25:01,880 We wanted to see if a showroom 381 00:25:01,880 --> 00:25:04,320 would generate business if we opened one. 382 00:25:05,200 --> 00:25:07,000 How much business do the stores generate? 383 00:25:43,600 --> 00:25:46,040 So, you're growing with your own money. 384 00:25:46,120 --> 00:25:48,240 - Have you raised funding? - No. 385 00:25:54,160 --> 00:25:56,000 Are you profitable even at the company level? 386 00:25:56,080 --> 00:25:56,960 - Yes. - Yes. 387 00:25:57,080 --> 00:25:57,960 Fantastic. 388 00:25:58,200 --> 00:26:00,240 Give us the unit economics of your Hyderabad store. 389 00:26:00,320 --> 00:26:02,440 Until now, the Hyderabad store... 390 00:26:02,520 --> 00:26:04,760 - No, monthly. Last month. - Last month. 391 00:26:04,880 --> 00:26:06,200 Last month was Rs. 10 lakhs. 392 00:26:15,400 --> 00:26:17,480 On average, you rent out one product 393 00:26:17,600 --> 00:26:19,760 - at 20% of the MRP. - Yes. 394 00:26:19,840 --> 00:26:21,360 So, how do you calculate COGS? 395 00:26:21,440 --> 00:26:23,160 - The clothes that we buy... - Yes? 396 00:26:23,240 --> 00:26:26,520 Those designs will become obsolete in a year 397 00:26:26,640 --> 00:26:28,440 and we'll have to replace them after a year. 398 00:26:28,520 --> 00:26:31,320 So, you take the number of wears in a year 399 00:26:31,440 --> 00:26:35,360 and divide it by the total purchase price 400 00:26:35,440 --> 00:26:38,200 to arrive at per rental cost price. 401 00:26:38,320 --> 00:26:39,400 - Is that what you do? - Yes. 402 00:26:39,520 --> 00:26:42,080 What's the usage of one outfit in a year? 403 00:27:21,160 --> 00:27:22,640 That's our EBITDA. 404 00:27:23,080 --> 00:27:25,120 That can't be your EBITDA. 405 00:27:26,360 --> 00:27:27,720 Are you making 40% EBITDA? 406 00:27:53,240 --> 00:27:54,800 If the unit economics is done, may I ask something? 407 00:27:54,800 --> 00:27:55,760 Sure, please do. 408 00:27:56,480 --> 00:27:58,480 Has it happened that people don't return the outfit? 409 00:27:58,560 --> 00:28:00,960 Yes, but it's less than 1%. 410 00:28:01,040 --> 00:28:02,440 Fraud isn't a big issue. 411 00:28:02,560 --> 00:28:04,760 - For now. - Not a big issue till the number is small. 412 00:28:04,840 --> 00:28:07,280 Okay. This industry saw a lot of competitors. 413 00:28:07,400 --> 00:28:10,080 There was a company called Flyrobe. Have you heard of them? 414 00:28:10,240 --> 00:28:11,040 Yes, we have. 415 00:28:11,160 --> 00:28:13,360 They've got funding too. 416 00:28:13,520 --> 00:28:16,560 - Yes. - Have you heard they weren't doing well? 417 00:28:17,400 --> 00:28:19,680 Yet you decided to get into this. 418 00:28:19,800 --> 00:28:22,400 What we're doing is quite different. 419 00:28:22,600 --> 00:28:26,000 Firstly, the stores they opened were huge. 420 00:28:26,120 --> 00:28:29,120 They spent a lot of money on the rent itself. 421 00:28:29,120 --> 00:28:31,800 Basically, our models are different. 422 00:28:31,880 --> 00:28:34,880 We source a lot of things in-house. 423 00:28:35,040 --> 00:28:37,160 We have also realised that 424 00:28:37,240 --> 00:28:41,400 men as consumers don't care what the brand is. 425 00:28:42,440 --> 00:28:44,120 What's your plan three years from now? 426 00:28:44,200 --> 00:28:45,520 How big will your business be? 427 00:28:45,600 --> 00:28:47,040 And how? How will you achieve it? 428 00:28:58,760 --> 00:29:01,440 How many stores would you have when you do sales of Rs 54 crores? 429 00:29:03,400 --> 00:29:04,320 15 to 20. 430 00:29:05,680 --> 00:29:07,240 I think 15. 15... 431 00:29:07,360 --> 00:29:10,240 - You said the monthly profit per store will be Rs. 10 lakhs. - To 20. 432 00:29:10,320 --> 00:29:12,080 So, Rs. 1.5 crores x 12 is Rs. 18 crores. 433 00:29:12,920 --> 00:29:15,880 Your numbers don't seem clear to me as per your strategy. 434 00:29:15,960 --> 00:29:17,720 You're quoting big numbers, 435 00:29:17,800 --> 00:29:20,280 but the backward math is not in place. 436 00:29:20,360 --> 00:29:23,320 - You'd need 40 to 50 stores, right? - Yes. 437 00:29:23,480 --> 00:29:25,640 - Why don't you know the math? - Sorry. 438 00:29:25,760 --> 00:29:27,640 The time to say sorry is over. 439 00:29:28,720 --> 00:29:30,280 You're on Shark Tank now. 440 00:29:30,280 --> 00:29:32,760 So, you haven't thought about a long-term strategy. 441 00:29:32,840 --> 00:29:35,520 You saw the business was doing well 442 00:29:35,600 --> 00:29:37,880 - and this is how it can be grown. - Grow. Yes. 443 00:29:38,000 --> 00:29:41,200 How much money goes into building one store? 444 00:29:41,280 --> 00:29:43,200 - Around Rs. 60 lakhs. - Rs. 60 lakhs. 445 00:29:43,280 --> 00:29:44,800 - Rs. 60 lakhs! - To make 40 stores, 446 00:29:44,920 --> 00:29:46,840 you'll need at least Rs. 25 to 30 crores. 447 00:29:46,920 --> 00:29:47,720 Yes. 448 00:29:48,600 --> 00:29:49,600 What do you think 449 00:29:49,720 --> 00:29:53,120 your biggest strength will be going forward? 450 00:30:31,960 --> 00:30:32,800 - Definitely, thank you. - Thank you. 451 00:30:32,920 --> 00:30:34,280 - All right. - Thank you so much. 452 00:30:36,000 --> 00:30:37,400 [theme music playing] 453 00:30:45,000 --> 00:30:45,880 Hi. 454 00:30:46,000 --> 00:30:47,360 [theme music concludes] 455 00:30:47,680 --> 00:30:50,560 Sharks, do you see this 'lehenga'? 456 00:30:50,960 --> 00:30:53,680 After one picture of it on Instagram, 457 00:30:53,760 --> 00:30:55,600 the 'lehenga' was no more. 458 00:30:56,000 --> 00:30:59,920 We wish to wear something new and designer on every occasion. 459 00:31:00,160 --> 00:31:02,440 That isn't sustainable for the planet 460 00:31:02,560 --> 00:31:04,880 or our pockets. 461 00:31:17,920 --> 00:31:19,400 you can now rent 462 00:31:40,400 --> 00:31:43,120 like Gaurav Gupta, Amit Aggarwal, 463 00:31:43,120 --> 00:31:45,440 Sabyasachi as well as Shantnu Nikhil. 464 00:31:49,760 --> 00:31:52,520 to open over 100 Flyrobe stores in India. 465 00:32:01,760 --> 00:32:03,720 [upbeat song playing] 466 00:32:25,040 --> 00:32:27,000 Very nice designs, Aanchal. 467 00:32:27,160 --> 00:32:28,280 - Thank you. - Lovely. 468 00:32:43,160 --> 00:32:44,760 - I am not a designer. - Okay. 469 00:32:44,840 --> 00:32:46,480 - I'm a lawyer by profession. - Wow. 470 00:32:46,600 --> 00:32:48,600 I worked as a lawyer in Delhi for seven years. 471 00:32:48,760 --> 00:32:49,600 I didn't see that. 472 00:32:49,680 --> 00:32:51,880 I did not found Flyrobe. 473 00:32:52,360 --> 00:32:55,040 I founded Rent It Bae with my partners. 474 00:32:55,160 --> 00:32:56,520 We acquired Flyrobe, 475 00:32:56,600 --> 00:32:59,440 which was the largest player in this space. 476 00:33:06,600 --> 00:33:08,680 We knew we wanted to make a tech-enabled business. 477 00:33:08,760 --> 00:33:09,880 We started online sales ourselves. 478 00:33:09,960 --> 00:33:11,680 We opened our first store ourselves too. 479 00:33:20,680 --> 00:33:21,720 "Are you interested?" 480 00:33:22,200 --> 00:33:23,200 - Whoa! - So... 481 00:33:23,360 --> 00:33:25,400 They had raised funds from big-scale investors. 482 00:33:25,480 --> 00:33:28,160 - Yes, exactly. - How much did you raise in 2018? 483 00:33:28,240 --> 00:33:30,400 We raised a Rs. 1.5 crore round at the time. 484 00:33:45,320 --> 00:33:47,440 the CAC in western wear was not reducing. 485 00:33:47,560 --> 00:33:50,800 - Logically, not many people wear western wear daily. - Yes. 486 00:33:50,880 --> 00:33:52,920 So, they changed the product to ethnic wear. 487 00:33:53,040 --> 00:33:54,880 Now ethnic wear was to be rented out online. 488 00:33:54,960 --> 00:33:56,680 They realised it was important to open stores. 489 00:34:09,800 --> 00:34:10,960 What was the deal? 490 00:34:11,040 --> 00:34:12,160 This was a slump sale. 491 00:34:39,320 --> 00:34:42,200 - we opened our first franchise store in Bengaluru. - What year? 492 00:34:42,280 --> 00:34:44,120 - 2020. - March 2020. 493 00:34:44,240 --> 00:34:46,920 - Covid struck after a week. - Ouch! Right. 494 00:34:47,080 --> 00:34:49,200 We were trying to scale the offline business, 495 00:34:49,280 --> 00:34:51,000 but that completely tanked. 496 00:34:51,480 --> 00:34:53,160 We'd have constant fights with existing investors 497 00:34:53,240 --> 00:34:55,200 because our monies were due which they refused to give us. 498 00:34:55,320 --> 00:35:00,760 We raised our money last over here on 1 April 2020. 499 00:35:00,920 --> 00:35:02,000 How much was raised in total? 500 00:35:02,080 --> 00:35:04,160 - Including Rs. 1.5 crores... - Total Rs. 8 crores. Yes. 501 00:35:04,280 --> 00:35:06,400 Rs. 6 crores there, so that's Rs. 7.5 crores. 502 00:35:06,520 --> 00:35:07,960 - You raised that too. - We raised Rs. 8 crores in total. 503 00:35:08,040 --> 00:35:10,640 - Rs. 8 crores in total. - Rs. 8 crores till date. 504 00:35:10,720 --> 00:35:12,360 How much equity was diluted? 505 00:35:27,880 --> 00:35:30,040 54%. 506 00:35:30,200 --> 00:35:31,360 Micro VC funds. 507 00:35:31,480 --> 00:35:32,440 Oh, wow. Okay. 508 00:35:52,280 --> 00:35:53,280 Explain your business model. 509 00:35:53,360 --> 00:35:56,800 Physically, we have 7 stores as of right now. 510 00:36:04,400 --> 00:36:05,960 So, we have 9 stores in total. 511 00:36:06,080 --> 00:36:08,480 We have dual products. 512 00:36:08,480 --> 00:36:10,160 One is our in-house inventory 513 00:36:23,320 --> 00:36:25,000 What's your average rental price? 514 00:36:34,040 --> 00:36:35,160 In the C2C model, 515 00:36:35,360 --> 00:36:38,240 we basically give the customer 30% of the rental price. 516 00:37:03,200 --> 00:37:07,200 - what's your bottom line at a store? - 27% at our store. 517 00:37:12,000 --> 00:37:14,160 - Got it. This is the bottom line or EBITDA. - Yes. 518 00:37:14,280 --> 00:37:15,840 - Yes. - Okay, thank you. 519 00:37:15,840 --> 00:37:17,360 What was the sales figure for this year? 520 00:37:38,640 --> 00:37:40,200 Over the course of the next five months, 521 00:37:40,320 --> 00:37:41,880 - we will make 60% of our revenue. - How much will you make? 522 00:37:41,960 --> 00:37:43,280 How much profit will you earn from Rs. 7 crores? 523 00:37:43,360 --> 00:37:45,960 Rs. 7 crores will be our GMV. 524 00:37:46,040 --> 00:37:47,560 We will earn a profit of 15%. 525 00:38:07,120 --> 00:38:08,680 if you have taken our franchise, 526 00:38:08,760 --> 00:38:11,680 we will provide you with 20% luxury stock of your store, 527 00:38:23,960 --> 00:38:25,800 - They cannot do that. - This is how a franchise works. 528 00:38:25,880 --> 00:38:27,600 - Why? - Because our barcodes are attached. 529 00:38:27,680 --> 00:38:29,200 Also, we check it every day. 530 00:38:29,280 --> 00:38:32,320 They can trade in cash. Franchisees work their way around. 531 00:38:32,440 --> 00:38:33,760 We had faced this issue. 532 00:38:33,840 --> 00:38:35,600 So, there is a 0% fraud rate. 533 00:38:35,680 --> 00:38:37,240 - Currently, the fraud rate is 0%. - Okay. 534 00:38:37,320 --> 00:38:38,880 Because the deterrent effect is solid. 535 00:38:38,960 --> 00:38:40,560 They will not get any stock from us. 536 00:38:40,680 --> 00:38:42,560 You cannot run your store without luxury stock. 537 00:38:42,640 --> 00:38:44,680 Aanchal, your business is confusing to me. 538 00:38:44,760 --> 00:38:46,200 Because 539 00:38:46,280 --> 00:38:48,960 the companies with around 3 stores... 540 00:38:49,040 --> 00:38:51,000 If I look at the net revenue 541 00:38:51,080 --> 00:38:53,920 that is recorded in the books that investors are interested in. 542 00:38:54,000 --> 00:38:56,720 Your net revenue with 9 stores 543 00:39:01,920 --> 00:39:04,240 Your 7 stores generate revenue equivalent 544 00:39:04,240 --> 00:39:06,480 - to that of 2 to 2.5 stores of another company. - 2.5 stores. 545 00:39:06,600 --> 00:39:07,560 2.5 stores. 546 00:39:07,640 --> 00:39:10,280 The revenue I disclosed is the revenue of 2.5 stores. 547 00:39:10,400 --> 00:39:11,680 - Which was last year's revenue. - Yes! 548 00:39:11,760 --> 00:39:14,560 - The rest of... - How much was your last month's net revenue? 549 00:39:14,640 --> 00:39:16,400 Until now, we have generated Rs. 2.8 crores. 550 00:39:41,480 --> 00:39:44,280 with approximately 3 stores, with an average order value of 2,300. 551 00:39:44,400 --> 00:39:46,360 If we exclusively sell men's clothing will get the same numbers. 552 00:39:46,440 --> 00:39:48,080 However, the women's market is vast, 553 00:39:48,160 --> 00:39:49,760 and we cannot disregard its potential. 554 00:39:50,120 --> 00:39:52,160 Even funded players struggled to keep up, 555 00:39:52,240 --> 00:39:54,200 why are you doing this? What sets you apart from others? 556 00:39:54,880 --> 00:39:56,760 I believe this business 557 00:39:56,840 --> 00:39:59,640 requires a shift in consumer mindset. It will require some time. 558 00:39:59,760 --> 00:40:01,640 When Ola and Uber were first introduced, 559 00:40:01,760 --> 00:40:03,800 hardly anyone used taxis for their daily commute. 560 00:40:03,920 --> 00:40:05,800 The mindset gradually changed. 561 00:40:05,880 --> 00:40:07,120 Celebrities are talking about this now. 562 00:40:07,240 --> 00:40:10,040 When Sonam Kapoor mentions in Karan Johar's show 563 00:40:10,120 --> 00:40:12,000 that we are not crazy to splurge on expensive clothes. 564 00:40:12,000 --> 00:40:12,880 All our clothes are borrowed. 565 00:40:13,040 --> 00:40:14,600 Sara Ali Khan walks the ramp, 566 00:40:14,720 --> 00:40:17,320 shows off her dress and says this is borrowed fashion. 567 00:40:17,440 --> 00:40:21,040 It is also expanding the narrative of sustainability, right? 568 00:40:21,120 --> 00:40:22,480 The mindset is changing. 569 00:40:22,560 --> 00:40:23,480 - I have a doubt. - Okay. 570 00:40:23,600 --> 00:40:25,680 The person who purchased Gaurav Gupta's dress 571 00:40:25,760 --> 00:40:28,080 worth Rs. 4.5 lakhs, 572 00:40:28,160 --> 00:40:29,800 will that person 573 00:40:29,920 --> 00:40:32,800 have an interest in earning money from rentals? 574 00:40:32,880 --> 00:40:34,160 Basically, 575 00:40:34,280 --> 00:40:36,680 the person who owns a Gaurav Gupta dress 576 00:40:36,800 --> 00:40:38,480 cannot do anything about it. 577 00:40:38,600 --> 00:40:40,560 There is no market for used ethnic items in India. 578 00:40:40,640 --> 00:40:42,480 But she will think about when to wear it next. 579 00:40:42,560 --> 00:40:44,160 It's not a wedding dress that she won't wear again. 580 00:40:44,280 --> 00:40:45,680 If she decides to wear it, we will give it to her. 581 00:40:45,800 --> 00:40:49,280 If the dress gets damaged, are you compensating them with Rs. 4.5 lakhs? 582 00:40:50,040 --> 00:40:52,680 We take rent and security deposit from our customers. 583 00:40:52,760 --> 00:40:54,760 The security deposit doesn't cover the entire value of the dress. 584 00:41:05,400 --> 00:41:08,320 - My heart races when you talk so fast. - Breathless. 585 00:41:08,400 --> 00:41:09,840 I am sorry. 586 00:41:09,920 --> 00:41:11,800 - No, it's a good thing. - No problem. 587 00:41:11,880 --> 00:41:13,960 Answer my question and we will understand. 588 00:41:14,120 --> 00:41:16,920 What is your customer retention rate in C2C? 589 00:41:17,240 --> 00:41:19,160 I have an approximate number. 590 00:41:19,240 --> 00:41:22,160 We have received clothing from people we reached out to last year, 591 00:41:22,240 --> 00:41:24,160 and approximately 15% to 20% of them 592 00:42:06,520 --> 00:42:08,960 - Yes! - Thank you! Love your energy and passion. Keep going. 593 00:42:09,080 --> 00:42:10,120 - Very nice seeing all of you. - All the best. 594 00:42:10,200 --> 00:42:12,000 - Thank you! - Go, girl! 595 00:42:13,040 --> 00:42:16,040 [theme music playing] 596 00:43:40,280 --> 00:43:42,080 [theme music playing] 597 00:43:51,760 --> 00:43:57,120 Running this business poses significant operational challenges. 598 00:44:12,360 --> 00:44:16,240 of scalability beyond metropolitan areas, 599 00:44:16,640 --> 00:44:18,000 regardless of the obstacles encountered. 600 00:44:19,640 --> 00:44:21,400 And for that reason, I am out. 601 00:44:23,400 --> 00:44:27,360 Rishabh and Shweta. Just like Namita, 602 00:44:27,480 --> 00:44:30,640 I decided never to enter the rental business. 603 00:44:33,160 --> 00:44:38,600 There are two crucial elements that you have 604 00:44:38,680 --> 00:44:40,040 successfully mastered. 605 00:44:40,160 --> 00:44:42,680 First, you mentioned that in one year 606 00:44:42,760 --> 00:44:44,480 you rent one piece of clothing 607 00:44:44,560 --> 00:44:47,120 eight times on average. 608 00:44:48,280 --> 00:44:51,160 Second, you mentioned that your fraud rate 609 00:44:51,240 --> 00:44:52,800 is less than 1%. 610 00:44:52,880 --> 00:44:55,760 I thought that achieving these two metrics 611 00:44:55,840 --> 00:44:58,000 would be unattainable for a rental business. 612 00:44:58,080 --> 00:44:59,440 You have managed to accomplish that, 613 00:44:59,520 --> 00:45:01,200 which shows your strong execution capabilities. 614 00:45:01,200 --> 00:45:03,840 But your team needs improvement. 615 00:45:03,960 --> 00:45:06,000 [suspenseful music playing] 616 00:45:06,120 --> 00:45:08,480 So, I have an offer for you. 617 00:45:08,560 --> 00:45:11,640 This is conditional upon my verification of these two numbers. 618 00:45:12,760 --> 00:45:17,760 The average unit is utilized 8 times annually. 619 00:45:17,840 --> 00:45:20,280 And the fraud rate is less than 1%. 620 00:45:20,600 --> 00:45:24,240 So, my offer is Rs. 60 lakhs... That was your ask. 621 00:45:36,280 --> 00:45:37,480 [laughing] 622 00:45:40,040 --> 00:45:45,240 But this year's projection is Rs. 6 crores in revenue. 623 00:45:55,600 --> 00:45:57,000 He will give you a brilliant offer. 624 00:46:01,040 --> 00:46:02,480 I will take a couple of minutes. 625 00:46:02,560 --> 00:46:04,880 - I will go next! - It's stressing me out. 626 00:46:12,680 --> 00:46:15,120 I am impressed with the execution strength shown by both of you. 627 00:46:15,240 --> 00:46:16,800 I love such founders. 628 00:46:16,920 --> 00:46:18,920 I didn't get clarity on your plan of action. 629 00:46:19,040 --> 00:46:20,480 But we can jump-start with it. 630 00:46:20,560 --> 00:46:21,600 I have an offer for you. 631 00:46:22,600 --> 00:46:25,720 Rs. 60 lakhs which was your ask for 5% 632 00:46:31,600 --> 00:46:34,360 Shweta, super impressed. You are sharp and analytical. 633 00:46:34,440 --> 00:46:35,560 So, congratulations. 634 00:46:35,640 --> 00:46:37,840 I think you will make it big. 635 00:46:41,800 --> 00:46:44,400 You will need a minimum of Rs. 50 crores. 636 00:46:44,480 --> 00:46:45,880 I firmly believe that 637 00:46:45,880 --> 00:46:48,920 it is not advisable to invest in VCs for the upcoming 2 to 4 years. 638 00:46:50,680 --> 00:46:53,760 In order to take this risk, as Vineeta proposed, 639 00:46:53,880 --> 00:46:57,320 it must account for 8% to 10% of your company. 640 00:46:57,400 --> 00:46:58,880 You won't accept that. 641 00:46:58,960 --> 00:47:00,360 So, I am out. 642 00:47:01,440 --> 00:47:03,600 I wish you all the best. 643 00:47:05,120 --> 00:47:06,520 You hurt them. 644 00:47:08,200 --> 00:47:10,600 Rishabh! Shweta! Brilliant entrepreneurs. 645 00:47:10,680 --> 00:47:13,400 Don't give 5% or 10% of equity at this stage. 646 00:47:13,480 --> 00:47:14,840 I am out. 647 00:47:15,760 --> 00:47:18,440 You require minimal assistance now. Open 2 or 3 additional stores. 648 00:47:19,560 --> 00:47:21,680 And you will see an increase in valuation. 649 00:47:22,080 --> 00:47:23,920 They aren't giving you the right valuation. 650 00:47:25,200 --> 00:47:26,280 He is out. 651 00:47:29,920 --> 00:47:32,760 We have a counteroffer for both of you. 652 00:47:42,000 --> 00:47:45,080 But the valuation is Rs. 20 crores. You won't budge. 653 00:47:45,400 --> 00:47:47,560 We will make a profit of Rs. 2 crores 654 00:47:49,640 --> 00:47:51,040 I can't proceed with a valuation of Rs. 20 crores. 655 00:47:51,120 --> 00:47:53,520 - So... - May I suggest something? 656 00:47:53,600 --> 00:47:57,120 Feel free to propose a valuation along with the percentage of equity. 657 00:47:57,240 --> 00:47:59,240 In case, you manage to achieve a PAT of Rs. 2 crores, 658 00:47:59,320 --> 00:48:00,800 consider clawing back some equity. 659 00:48:02,240 --> 00:48:03,440 Yes, that is fine with us. 660 00:48:03,520 --> 00:48:04,840 3% with a clawback. 661 00:48:05,680 --> 00:48:08,440 [suspenseful music playing] 662 00:48:08,520 --> 00:48:10,920 Okay! I will offer this to you now. 663 00:48:20,160 --> 00:48:23,560 you will be eligible for an additional 2% clawback. 664 00:48:23,640 --> 00:48:25,040 So, you will get the deal at 3%. 665 00:48:25,120 --> 00:48:26,200 Same offer. 666 00:48:45,520 --> 00:48:47,360 - Congratulations! - Thank you! 667 00:48:47,440 --> 00:48:49,840 Super excited. 668 00:48:51,280 --> 00:48:52,960 [camera clicks] 669 00:48:53,200 --> 00:48:55,200 [theme music playing] 670 00:49:03,400 --> 00:49:04,280 Welcome back! 671 00:49:04,360 --> 00:49:06,560 - Hi! - Aanchal! - Did you drink water? -Yes! 672 00:49:06,640 --> 00:49:07,920 - I drank water. - Are you calm now? - Yes! 673 00:49:08,000 --> 00:49:09,920 - All right! - Aanchal, 674 00:49:10,000 --> 00:49:11,760 honestly, your business 675 00:49:11,840 --> 00:49:13,800 has operational challenges. 676 00:49:13,880 --> 00:49:15,360 Especially, since it is a C2C business. 677 00:49:15,440 --> 00:49:17,280 So, it's a very 678 00:49:17,520 --> 00:49:19,920 challenging business for me personally. 679 00:49:20,000 --> 00:49:22,200 So, I am out! But I wish you the best. 680 00:49:22,480 --> 00:49:23,840 Thank you! 681 00:49:23,920 --> 00:49:25,760 Aanchal, sometimes, 682 00:49:25,840 --> 00:49:29,640 having high energy and intelligence can lead us 683 00:49:29,760 --> 00:49:32,720 to hustle in too many directions, 684 00:49:32,800 --> 00:49:36,680 inadvertently causing complications for ourselves. 685 00:49:36,800 --> 00:49:38,840 Your operational metrics 686 00:49:38,920 --> 00:49:42,320 are not as good as those of other businesses 687 00:49:42,400 --> 00:49:44,120 in this industry. 688 00:49:44,600 --> 00:49:46,000 So, I think you should 689 00:49:46,080 --> 00:49:49,200 simplify it more before you raise more capital. 690 00:49:49,280 --> 00:49:51,280 For that reason, I am out. 691 00:49:52,680 --> 00:49:55,720 Aanchal, I never imagined that renting could be so profitable. 692 00:49:55,840 --> 00:49:58,160 However, when I learned about the number of stores you both have. 693 00:49:58,280 --> 00:50:00,600 It convinced me that this market exists. 694 00:50:01,120 --> 00:50:04,760 But I don't think the plan of action you chose 695 00:50:04,840 --> 00:50:06,680 is accurate. 696 00:50:06,760 --> 00:50:09,000 You need to complicate things less 697 00:50:09,200 --> 00:50:10,560 and concentrate on it. 698 00:50:10,640 --> 00:50:11,960 Then you may do well. 699 00:50:12,040 --> 00:50:13,640 - I am out today. - Sure. 700 00:50:13,800 --> 00:50:15,640 Aanchal, I beg to differ. 701 00:50:17,120 --> 00:50:19,120 I think your energy is what sets you apart 702 00:50:19,200 --> 00:50:22,400 in this industry where funded players struggle to make an impact, 703 00:50:22,480 --> 00:50:23,960 you left a mark there. 704 00:50:24,560 --> 00:50:26,200 The franchise partners are generating revenue 705 00:50:26,280 --> 00:50:27,680 and you are also reaping profits. 706 00:50:27,760 --> 00:50:29,200 I like your energy. 707 00:50:29,280 --> 00:50:31,320 And you are channelling it effectively. 708 00:50:31,440 --> 00:50:32,480 When I asked you, 709 00:50:32,600 --> 00:50:34,200 you mentioned that you've tried many things. 710 00:50:34,280 --> 00:50:35,840 There were complications at the start, but not any more. 711 00:50:35,840 --> 00:50:36,960 You've solved the issue. 712 00:50:37,040 --> 00:50:38,000 I loved you for that. 713 00:50:38,120 --> 00:50:39,680 And for that, I will give you an offer. 714 00:50:39,760 --> 00:50:41,040 Wow! 715 00:50:43,400 --> 00:50:44,960 - Why are you so surprised? - Wonderful! 716 00:50:45,080 --> 00:50:46,920 - Okay! - Lovely! 717 00:50:55,280 --> 00:50:57,840 that your CAP table is quite messy. 718 00:50:59,080 --> 00:51:02,840 54% with a micro VC? 719 00:51:03,880 --> 00:51:05,560 I am confused 720 00:51:05,640 --> 00:51:09,200 if will I invest in you or micro VC. 721 00:51:10,040 --> 00:51:11,760 So, that's my biggest challenge. 722 00:51:11,840 --> 00:51:13,440 And that's the reason, I am out. 723 00:51:13,760 --> 00:51:14,400 Good luck to you! 724 00:51:14,640 --> 00:51:15,640 - Thank you. - You have an offer. 725 00:51:15,720 --> 00:51:16,600 I hope it works out. 726 00:51:16,720 --> 00:51:17,960 Thank you so much. 727 00:51:18,120 --> 00:51:21,120 Can I take some time and come back? Thanks. 728 00:51:28,800 --> 00:51:30,400 [phone ringing] 729 00:51:31,480 --> 00:51:32,880 - Hello! - Ricky! 730 00:51:33,200 --> 00:51:37,520 - Yes? - We have one offer from Aman. - Okay. 731 00:51:37,600 --> 00:51:40,360 5% equity for Rs. 50 lakhs. 732 00:51:40,560 --> 00:51:42,800 - Can you negotiate? - Sure. How much? 733 00:51:43,920 --> 00:51:47,600 He advised the first pitcher not to give 5% for Rs. 50 lakhs. 734 00:51:47,720 --> 00:51:49,840 [mumbling] 735 00:51:49,960 --> 00:51:53,000 Her CAP is messy. How are you taking 5%? 736 00:51:55,120 --> 00:51:57,400 [suspenseful music playing] 737 00:52:02,520 --> 00:52:04,120 Welcome, Aanchal! 738 00:52:04,480 --> 00:52:05,840 Aanchal, before you say anything, 739 00:52:05,920 --> 00:52:07,680 you should keep your equity safe. 740 00:52:07,760 --> 00:52:09,800 - Think before you make this deal. - Sure. 741 00:52:17,840 --> 00:52:19,560 [laughing] 742 00:52:19,640 --> 00:52:23,440 If you would like to reduce the equity. 743 00:52:23,560 --> 00:52:24,600 He won't like to do that. 744 00:52:24,680 --> 00:52:26,600 Kindly consider reducing the equity. It is a request. 745 00:52:26,680 --> 00:52:28,640 The current proportion of equity 746 00:52:28,760 --> 00:52:30,960 necessitates raising additional rounds. 747 00:52:31,080 --> 00:52:33,600 So, my ask is 748 00:52:42,800 --> 00:52:45,120 But sometimes Sharks are unfair and unreasonable. 749 00:52:45,200 --> 00:52:47,320 That is between you guys. 750 00:52:47,920 --> 00:52:51,280 I cannot accept Rs. 50 lakhs for 3%. 751 00:52:52,520 --> 00:52:54,680 As everyone mentioned, nobody would 752 00:52:54,760 --> 00:52:58,280 consider entering this industry for the next 2 to 3 years. 753 00:52:58,360 --> 00:53:00,240 So, you will have to build it more. 754 00:53:00,360 --> 00:53:01,280 I am prepared. 755 00:53:01,280 --> 00:53:02,600 - There was a window of 10 years. - I think you can do it. 756 00:53:02,680 --> 00:53:04,800 - Yes, I am prepared. - I will give you a counteroffer. 757 00:53:13,720 --> 00:53:15,360 [camera clicks] 758 00:53:16,040 --> 00:53:17,720 - Thank you, Aanchal. All the best. - Thank you so much. 759 00:53:17,800 --> 00:53:19,520 - All the best, Aanchal. - Thank you!