[thrilling music playing]
[theme music playing]
Sharks, we are here to raise
Sharks, the good news is
is dominated by international brands.
When we talk about the Indian youth,
they easily get comfortable and durable shoes.
However, in addition to comfortable shoes,
they want stylish, fashionable and elegant shoes.
They hope to find such shoes from international brands.
But, Sharks, you know
that the Indian youth lose money if they buy international brands.
Bacca Bucci solves this problem.
Bacca Bucci is a Gen Z, youth-focused
boots for trekking and adventure and sports shoes.
Bacca Bucci offers all possible sub-categories to our youth
under one roof.
and make this Indian brand global
[upbeat music playing]
[song playing]
[song continues playing]
[song playing]
- Welcome to Shark Tank India Season 3. - Thank you!
- I also notice Deepinder and Aman. - Okay.
- They don't tie their shoelaces. - Yes.
Is it a trend?
Nowadays, it's a trend to tie shoelaces in multiple ways.
So it's quite common these days.
Maybe nowadays, international brands don't provide
breathable shoes to customers.
So they keep the shoelaces untied.
- Well said! - However, they do it for style too.
- Sir must have done it for style. - Don't exaggerate.
Please tell us about your background.
And how did you think of starting this?
We both have chartered accountancy backgrounds.
- Bravo! - Oh, nice!
We were doing jobs. I was in loan syndication.
Anuj was in EY.
When I was doing a job, I needed shoes.
When I compared the prices back in 2014,
there was a significant difference between online and offline prices.
In fact, online shoes were expensive and offline shoes were cheap.
So we decided to start selling shoes as a side hustle.
Gradually, we continued selling and today,
- we are doing it full-time. - All right.
Have you extended your business?
It's a category extension.
We launched T-shirts in the month of October.
Sir, boots for you.
[laughing] All right.
- Nice packaging. - Thank you so much.
Actually, we have a unique packaging for each segment.
[intriguing music plays]
We have two categories for boots.
One is Fashion Boots and the other one is Biking and Adventure Boots.
Thanks, guys.
Generally, shoe companies have a style language.
- Nike's logo is a swoosh sign. - Yes.
Adidas has three stripes as its logo.
It's easily identifiable and can become a fashion statement.
All your shoes have a different design.
We can't be sure if they are made by the same company.
- Hmm. - Did you do it deliberately? Or you didn't think it over.
As you can see, our brand logo is a circle.
It is the corporate logo.
We have three major categories.
Sneakers, boots and sports.
Where do you print "BB"?
We print these monograms on shoes of every category.
However, you'll see "BB Street" printed on Bacca Bucci Sneakers.
Will this be printed as well?
Ma'am, you'd see a tiny logo beside "street".
What will we see in the Active category?
- The word "active". - Just "active".
It's a little confusing.
There's no consistency in branding.
- For example, the logo. - Yes.
The space between the logo and the letter "b" is less
than the space between "bacca" and "bucci".
The design language will score two out of ten.
That's not a problem.
Your tagline, "creating culture for the generations to come".
- True. - What culture do you want to create?
How much does it cost?
It's for Rs. 1,699.
Your pricing is good.
It appears to cost Rs. 2,500 and not Rs. 1,699.
So I like the quality.
I think it's not a bad product.
It's nice, aspirational and has a funky design.
We might not get such products at this price point.
However, if we observe it closely, it lacks quality.
The finishing of the stitching isn't up to the mark.
Sir, the shoe you are holding has more than 27 components.
It's one of the most complex shoes in our portfolio.
How do you create a vibe?
How have you created a culture?
How can you call it a culture?
Sir, it's the designs we offer.
Just the design? Aren't you doing something for the content?
- Instagram. - We are creating content.
For a company that's trying to create a culture, having 72,000 followers
is too low.
Actually, before the Covid pandemic,
we used only black and brown colours in Bacca Bucci but during Covid,
we saw a shift in demand in the sneakers market.
We pivoted it after Covid
The price point on which we are giving this design...
Is price your differentiator?
Price... Yes, obviously.
You can't build scale on pricing alone.
In simple words, we sell a product costing Rs. 5,000 in Puma,
at Rs. 2,000.
How much does Nike's entry-level shoe cost?
- Rs. 2,000. - Nike's entry-level shoe costs Rs. 2,500.
We could get some Nike shoes
at Rs. 1,800-Rs. 2,000 after discount
but they won't be appealing.
- But it bears the Nike logo. - Yes.
That matters.
When we talk about brand aspiration
and showing off, people don't want cheap items.
I hope you remember that before the launch of Tata Nano,
the Maruti 800 and Maruti Alto were famous brands.
Maruti 800 was the cheapest car in the market
and Maruti Alto was the second cheapest car in the market.
Do you know which car sold more out of these two cars?
- Maruti 800, I guess. - No.
Maruti Alto sold more.
- Maruti Alto was in demand after it was launched. - Nano was launched.
Okay.
Then Maruti 800 became the largest-selling car in the market.
- Hmm. - That's what I know.
- I see. - You can't win because of pricing.
- Correct! - Right!
You must build a brand to win.
You can win by being aspirational.
- Please share your sales figures. - Yes, tell us your sales figures.
Bowl them all over.
You gave a valuation of Rs. 250 crores so there must be some magic.
During FY22-23,
- Are you making a profit? - Of course, ma'am.
What is the EBITDA percentage?
- What is the gross margin? - It's 55%.
Of net revenue.
- What is the total performance marketing percentage? - It's 8.5%.
Please elaborate.
In terms of ranking
and sales, particularly in this industry.
We are in the top ten footwear brands on Amazon.
Are you in the top ten even after removing international brands?
No. Let me tell you category-wise.
We are the strategic partners for Amazon, Flipkart, and Myntra.
- you'll see Bacca Bucci shoes first. - Bacca Bucci.
When you write "sneakers",
you'll see Bacca Bucci on top and I'm not talking about sponsored ads.
- I'm talking about organic visibility. - Organic.
Our average rating on Amazon is 4.1 stars.
Sir, our product has value. Our NPS is 60.
What are your total returns?
16%-18%.
At Bacca Bucci, we didn't forego the conventional way of doing business.
We believe in the two pillars of business, growth and profitability.
One must enhance the product
to strengthen these two pillars.
One must make the product the king.
We want to use the money we get
for R&D and also invest in moulds.
We want to make it a premium category.
We also want to hire better teams.
Do you manufacture yourself?
Basically, they aren't allowed to manufacture for other online brands.
We consume their capacity wholly.
Firstly, I'm happy to see
fellow chartered accountants as entrepreneurs.
Rs. 80 crores sales with profits is not a joke.
So, congratulations!
However, I don't see a USP.
Branding... It's important to create a culture.
It can't be created on just pricing.
Right? I think you should focus on it.
But without a clear vision,
I'm not excited about this. So I'm out.
Big fashion brands don't invest in Amazon
because of value-seeking behaviour.
So it's not the ideal place for fashion discovery.
You earn 45% of business from Amazon
because your positioning in the consumer's mind is value for money.
Which is quite powerful.
Many big businesses in India
are based on value-for-money positioning.
I believe your genuine gross profit is 23%.
And it's before marketing expenses.
Because you add it after deducting gross margin and cost of selling.
That's the gross margin.
It's tough to build a fashion brand
at a 23% gross margin.
As an investor,
I'm interested in brand building and you aren't the right fit so I'm out.
When you were talking,
you talked about materials and pricing.
I was waiting for you to speak about brand elements.
I wanted to understand your culture and vibes.
I think you have a trading mentality because of your experience.
For that reason, I'm out.
I often tell my team members
that taste and class are more important than metrics.
If the brand has taste and class, metrics are a given.
There are glaring errors in your logo.
There's a design error. All right?
If you can't see that,
how will you build a good brand?
So I'm out.
Feedback taken.
You'll definitely see the changes in branding very soon.
- I talked about branding at the start. - Right.
I totally agree with the other Sharks. It's not up to the mark.
But numbers don't lie.
So there's something about you.
- One market segment is ignored. - Right.
Maybe you could relate to it but we can't.
- Right. - And you successfully built a business.
However, I don't understand how to make a deal.
Your ask is so unrealistic
that I can't come close to it.
So I wish you the best but I'm out.
I'll give you a piece of advice.
- Sure. - If you really want to understand customers,
stay close to them and develop products for them,
open offline stores. It'll increase your gross margin.
You'll be able to interact with the customers directly,
All right. Thank you, sir.
- Super! Good luck. - Thank you!
[music playing]
[theme music playing]
[theme music fades]
Hi, Sharks.
Just like you, we are parents too.
Parents these days face a common problem
which is the increasing screen time of our children.
They need a screen be it while eating,
when they are bored
or when they go outside.
If we try to take the screens from them...
Oh my God! Another level drama!
"Mom, ten minutes! Mom, five minutes!"
"Mom, 1.5 minutes!"
We melt and give them the screens.
It has become an addiction now.
What do we even do, Sharks?
Not in a boring way.
It is all in the voice of children.
comprehension and attention span.
We make all this content in-house.
and best exclusive kids audio platform
as an alternative to screens
but which is healthy, fun
and productive.
Our ask is Rs. 25 lakhs for 1.5% equity.
My son is 7.5 and my daughter is 5.
My daughter is 8 years old.
Did your children inspire you to start this business?
How did you start this venture?
And I am sure a lot of parents have noticed the same thing.
We were looking for alternatives for children to use.
We started working on this last September.
But we launched this last month, in the month of August.
we are focusing our product on PMF.
If you don't mind, can we demo the product?
- I think that will give you... - What a great segue.
and has come across Vobble,
they can check out our website
to learn more about us.
You can find our premium option
at the bottom of our website,
where you can download two episodes for free.
Or you can listen to stories and music on our website.
If you like our audio, then please
purchase our box from our website.
So, headphones are not included.
Headphones are included.
- But why? People own headphones from boAt or any other brand. - Yes.
Children want something they can touch that is tangible.
Otherwise, they will listen to the audio
from the app.
Are these headphones different from normal headphones?
- Does it provide an immersive experience? - Yes.
- So... - Let me explain.
when you open the box, you will see the headphones.
[laughing]
- Can we check it? - Of course.
I like your style.
Are these available in one colour?
- We've launched this in one colour. - Nice colour.
It is a neutral colour.
[theme music playing]
Thank you!
Oh! There is a phone too.
- Yeah, thanks. - Can we keep the phones?
Yeah!
There are two activity books inside the box.
Why did you give us the phone?
- For demo? Okay. - Our app is installed on it.
You can listen to it later.
Got it. Thank you.
Sowmya, did you make the entire content?
- Yes. - Interesting.
Will this cause a trademark issue?
Alice In Wonderland and Panchatantra
- My favourite. - Yes.
Oh, I loved the design.
- Very fun! - Thank you.
[music playing]
'The rabbit jumped down a large hole over there.'
- I heard Alice In Wonderland. - Yes?
- Is this your production? - Yes.
Thank you!
The child will have to keep a device with them.
No! The app is meant for parents.
That's why headphones and speakers
help keep the child away from the screen.
Are your products exclusively sold on your website?
I am the CEO.
I look after marketing, finance and operations.
- Sowmya! - I am the head of product.
- I look at the content, design... - Design and content! Very nice.
You mentioned that children get to learn a lot from this.
Have you measured
educational efficacy?
Is there a study on this?
Children who listen to audio
have seven times better vocabulary.
Because we didn't want to enter
into something that was harmful to children.
Tell us about pricing and costing.
Take OTT, for example. It is difficult
to make Indians pay for content.
With this box,
If you take 12 months subscription it will cost you Rs. 250.
If you take a monthly subscription, it will cost you Rs. 300.
You get more discount if you subscribe...
Wow! You didn't think much about pricing.
[suspenseful music playing]
Keep pricing aside.
Keep pricing on the side.
You said you have PMF.
We have been working on pilots since September.
- This product... - What do you think isn't working?
What is not working?
Currently, we are...
Our box... We currently have 200 users.
- Hmm! - In the last one month itself.
has been in contact with the customers
to gather feedback ever since our launch.
And with whatever feedback we are getting,
we are looking at the next iteration.
What are your customers saying?
What is not working for them?
One of the biggest things...
We are also looking it in version 2.0.
It is the autonomy of the headphones.
Currently, it's a Bluetooth connected device.
So, parents have to always stay around.
We have started working on the 2.0 prototype.
What if the price increases?
Vineeta, our plan is... We've just launched our product.
We plan to unbundle our product in a quarter.
Those who don't have headphones can buy them.
Customers who only want to buy a subscription can do so.
Don't you think you are complicating things?
Do you have clarity on what you want to become?
- Yes. - I fail to comprehend
whether this is an alternative to screen time
or storytelling.
Have you done primary research
where you saw... You mentioned talking to your customers.
Have they stopped watching the screen?
From the beginning, we've been saying
that we won't replace anything.
We will give parents an alternative.
Even if we reduce the screen time by half,
we think that will be a big win for us.
Suppose I take the child's phone and play stories on YouTube
and I have the screen.
- The child is listening to the audio. - Okay.
It is also a storytelling immersive experience.
What will be the difference between that and this?
We are curating our content.
We are making our content safe.
If you go on YouTube
- or any other aggregator... - So start
a YouTube channel.
Start a YouTube channel. Why did you make this product?
There will be videos on YouTube.
- No! - Children go to
- other channels. - Podcast!
Do you know the biggest
audio streaming service...
One of the largest
audio streaming services. People believe it's Spotify.
People use YouTube only for audio.
Not video and audio.
- Hmm! - Yes.
Honestly speaking, our content is the difference.
We are creating IPs.
Ultimately, it comes down to that.
Absolutely!
- We are a content company! - We are a content company!
If you are a content company, ensure that it is distributed everywhere.
On YouTube and other places. I don't know other platforms.
- Do it everywhere! - When it comes to distribution,
we've just started.
We are doing it through our website.
But we are also listed on Amazon
with this box.
Additionally, we are also considering Hamely's
and various other offline distribution elements.
In terms of online, where you mentioned
Spotify and other platforms
where we give our content,
we plan to do that.
We want to create a library of our content.
And create a brand.
After that, we would like to dilute it on other platforms.
I will give you an offer.
I believe in your product.
- Yes. - Because
the age group of 4 to 10
is a good age group. Parents spend for their kids.
There are a lot of things that need to be figured out
because you are pre-revenue.
But you had me at Suppandi.
So, I will give you Rs. 25 lakhs for 5% equity.
I will value you at Rs. 5 crores.
First of all, congratulations. You got an offer.
I don't know based on what you've been given an offer.
I am not sure what you want to do.
I think, you don't have PMF and you won't get it.
Because you don't have clarity about what you want to do.
You noticed an issue with screen time.
You found an alternative to it.
You tried to look for an alternative.
The fundamental reasoning
is being questioned.
in my opinion as an investor.
It might be right for you. Maybe you can generate a cash flow.
Therefore, I am out.
I request that you
examine specific aspects of your business model.
If your product is on display in Hamleys
and if it isn't sold in 6 months,
the battery of the hardware will start to weaken.
When that happens, the parent
will have to send it to the service centre.
The problem these products face is providing good support.
Right? My point of view is
to make the package as soon as possible.
Provide excellent packaging and content
and price it at Rs. 1,500,
which is compatible with the device.
This can serve as an add-on for their device,
this is a hardware business or a content business.
You are using both items simultaneously.
I think, you need clarity on doing one thing, and that would be better.
So, I am out.
Thanks.
Do you want to create a company
in the content business?
Millions of people are doing that.
You can't make any progress in Rs. 25 lakhs.
Ours is a tech platform.
Our learning will be focused on what the child is listening to.
Based on that, we will create
more targeted content.
Currently, we are
doubling our content every month.
- Okay! So... - So...
- It will be very targeted. - I understand that.
You want them to access the app on a phone.
In that industry,
there are many people who have algorithms, large teams,
and millions of dollars.
I don't want to play that game. I am out.
Good luck!
So my offer stands at Rs. 25 lakhs for 5% equity.
Namita, we would like to add something.
- So... - The deal hasn't been closed yet, right?
We are raising Rs. 4 crores.
- We have received Rs. 3 crores in funding. - Oh!
On what valuation?
and guide you, I offering
Rs. 25 lakhs at 5%.
Because I think I am worth it.
If possible, what we would like to offer is 1.5%.
- We can... - 1.5% was a previous deal.
- I am at 5% and you are at 1.5%. - Yes.
Namita, we want to give you 0.5% as an advisory.
[camera clicks]
Well done! I love the product.
Good luck for the mission,
- Sowmya and Neha! - Thank you so much, Sharks!
[theme music playing]
Hello, Sharks! Greetings!
I went to a salon for a haircut.
He asked me to pay Rs. 400.
I got scared. I belong to a lower middle-class family.
We didn't have a lot of money.
When I got an opportunity to do business,
I chose salons.
Because I wanted to make these services affordable.
Now, with all due respect to all the salon owners,
the meaning of affordability in our country is flawed.
They set prices
and claim that they are affordable for the middle class.
But that is not true.
I would like to ask something to you, Sharks.
Is charging approximately Rs. 8,000 to 10,000
for smoothing treatment affordable?
Keratin treatment is anywhere between Rs. 5,000 to 8,000.
Is that affordable?
Now, let's talk about Be U Natural Salon.
[theme music playing]
Our cost for smoothing treatment
is Rs. 1,999, any length.
Our price for keratin treatment is only Rs. 999.
we do waxing of full arms, full legs, and underarms,
for only Rs. 49.
You must be wondering
that I keep saying 'affordable', but have I generated any revenue or not?
[Anupam laughing]
Be U Natural Salon
is poised to become India's number two salon
within the next 12 to 18 months
in the owned-salon category.
We can also be number one,
if I have your support.
My ask is
which will be possible with your support.
- What confidence! - Impressive!
- My God! - Welcome to Shark Tank, Mr. Deepak.
Thank you, sir.
- Are you from North India? - Delhi.
- You said the word brother. - [chuckles]
I started my career in 2005 as a waiter.
every graduate is either given the job of a waiter
or a room attendant with housekeeping.
I am talking about 2005.
- The scenario has changed slightly after 15 years. - After that?
I started with that.
My last job was with Marriott Hotels as a Training Head.
- Then I left them. - What did you do?
I opened a salon.
Take keratin or smoothening for instance.
How will you convince me about these treatments?
"Namita, I am charging a very low price,"
I will always praise my products.
The second approach is what our customers say about us.
Be U Natural Salon has over 1,500 reviews on Google.
There might only be one or two salons with such reviews.
The products are not that highly-priced.
This is a misconception.
A bottle of GK Hair Keratin
costs Rs. 18,000 with the MRP being Rs. 32,000.
You service 30 customers at Rs. 18,000.
It means the cost comes to about Rs. 600 per customer.
You wouldn't charge Rs. 9,000 for a 600-rupee service!
So, the margins in services are always very high.
Look. Salons charge you a lot
firstly because of the real estate costs.
The rental is high.
- Then the service experience. - Experience.
The gap between the chairs,
the quality of the beverages being served, the air-conditioning...
Some consumers want that whereas some don't.
Waxing and threading in metros at a price of Rs. 49
is not going to work as far as I understand.
Waxing at Rs. 49 is just a carrot.
The profit doesn't come from that 49-rupee service.
I said, "If you're a member".
If you're a member, you're bound to come every month.
A box of wax costs Rs. 55 and can service 6 customers.
In spite of charging Rs. 49, you're not making a loss,
but your customer acquisition cost goes down, right?
and many even shut down.
They shut down because their profit and loss statements
showed no profits.
The ones that are running are not making high profits either.
People are investing Rs. 2.5 crores in opening one salon
- which... - How much do you invest?
- The ambience is fine. There's a gap between chairs. - Yes.
- It's not bad. - The branding is nice.
If it's in a mall, the rent will be economical too.
The rent is Rs. 1.8 lakhs.
How much business does this generate?
Around Rs. 10 to 12 lakhs a month during off season.
I am not that kind of a guy.
I know how much money comes in...
What kind of guy?
I mean people who are very particular about the accounts.
I know my numbers well.
You mean you're not like us.
- No, that is not what I meant. - Okay.
I don't get into the gross and net margins.
All of it is my money.
I do not owe anybody money.
I know the total money that comes in,
the total amount spent and how much is the profit.
So, your profit is Rs. 3 lakhs on a revenue of Rs. 10 lakhs.
Your rent is Rs. 2 lakhs.
Enrich has 75 salons in the country.
- Owned? - Other than that, there's no salon..
Naturals is there.
Out of 700 salons, they don't even own one.
Geetanjali, Meghna...
Geetanjali has about 100 salons.
10 to 15 are owned and the rest are franchises.
- Your average revenue from 6 salons is Rs. 30 lakhs. - Yes.
- From 5 salons. The sixth just opened. - 5.
- So. Rs. 5 to 6 lakhs revenue per salon. - Yes.
All the salons I know
do a revenue of Rs. 30 lakhs from one salon
whereas you're doing the same from 5 to 6 salons.
Please don't be offended,
but you're comparing apples and oranges here.
I can't be compared to Geetanjali and Looks.
They cater to South Delhi and Gurgaon.
- I don't have a salon in Gurgaon. - We got it.
I run salons typically in East Delhi.
How come they have franchises and you don't?
It's the quality that we try to give.
That isn't possible in a franchise business.
You lose control of them, okay?
- The margins are too tight. - True.
The training and culture are extremely important.
I admit we don't offer cappuccinos to our customers,
but every client is given delicious tea in a lovely cup.
Very nice.
That's great. Good. What's this?
When our business grew,
we began selling shampoos and masks in retail.
It occurred to me,
could we make our own products to do away with margins?
So, I began working on this.
The line is called Agami Professional.
It took me a long time to develop it.
We manufacture this keratin. I've developed it.
We approve of this
because I do 50 keratin treatments in a day.
No one else does.
- Very good. - No salon does.
The manufacturer has no clients to perform trials on.
That's why I am so confident.
After numerous trials spanning years,
we developed this keratin.
The keratin cost me Rs. 3,000.
Great. Deepinder wants to ask you something.
[whimsical music playing]
I have nothing to ask right now.
What is botox?
Botox is applied to the face. How do you apply it to the hair?
Botox repairs hair that is extremely damaged.
Suppose you come to me and say, "Deepak, I want a botox mask."
We don't do it blindly.
We will first understand your problem.
Identification of needs.
So, what is it that will actually treat your problem?
We identify that.
Then we will show you videos. "This is how your hair will look."
If you're comfortable with it,
then we will suggest a treatment whether it is botox or keratin.
Many times, what you suggest might not work for others.
Vineeta says to Namita, "I got botox done. It was great."
"You should try it too."
It doesn't work like that.
What suits Vineeta might not necessarily suit Namita.
Do you apply it externally or inject it?
No. All salon treatments are done with zero skin contact.
The treatments are done on the length,
half an inch from the scalp.
Tell me one thing. What about the investors?
The investors will come on board and teach us something new.
We'll build a team with the funds they bring in.
When my team is ready next month or the month after,
I will sell this keratin product B2B.
How so?
I'll sell to the other salons.
Keratin isn't available in India. We developed it.
We can sell this shampoo online.
Why is this named Agami and not Be U Natural?
My son's name is Agastya and daughter's is Miraya.
Oh!
In this industry,
who have built a relationship with clients,
move to a different salon,
they usually take their clients too.
What's your attrition?
Wonderful question.
- Zero. - Thank you.
I don't believe that.
I am HR...
I am flabbergasted to hear 0%.
I am from HR. I will tell you.
You need to listen to me attentively.
[laughs]
- You said people leave the company. - Yes.
Why is there the process
of orientation and induction in place?
There are weekly review meetings and checks.
This is generic.
Now, let's talk about attrition and switching jobs.
We run a program
- for the underprivileged children of society. - Okay.
They can't pay Rs. 1 to 2 lakhs for make-up or hairdressing courses.
Not only do we teach them free of cost
but we also give them a stipend of Rs. 5,000 a month to learn.
We've taught them the culture.
After learning that, they may leave if they wish to.
Owing to that culture and love and the emotional bond we share,
they will say, "Sir, we want to work with you."
There are many people
who quit if other salons offer them slightly higher salaries.
This is the ground reality.
Nobody stays because of love
or just because you gave them a chance.
So, the 0% attrition you said,
I am not able to buy it.
I agree with you,
but you know succession planning!
- You're amazing. - I believe you.
I believe you. People stay because of love.
Look, ma'am.
There are two kinds of people.
- The skilled and the educated. - Yes.
I might starve to death if I fail to run the business.
But a hairdresser
will take to the streets and give haircuts for Rs. 10
and be able to afford a meal.
I'm talking about skilled labour. They will stay.
So, you give the love and training to skilled labour
and not to the educated ones.
We don't have any.
- When we do, we'll build a program for them also. - Look.
Deepinder has something to ask you.
Poor guy!
- Don't make it up! - Deepinder.
I'm a fan of him.
- I don't want to ask anything. - We all are.
- Nothing. - Deepinder doesn't want to ask you,
so I will.
- Yours isn't a private limited company yet. - Right.
GST or income tax?
Both GST and income tax.
We're completely GST-compliant.
We pay the GST that we owe.
Deepak, I've made my decision.
Don't get investors for now.
Make money. You're already minting money. Enjoy.
I am out.
A salon called Drybar in the US had a similar vision.
They had the same model as you.
Beyond a point, they don't scale.
There is still a dominance
of the local salons owned by neighbourhood aunties.
You share a relationship with them and it is in close proximity.
They even offer services at home. They rule the market.
I know you will make Rs. 50 lakhs from 6 salons,
but to scale to a level
where the investor gets an exit
is what I believe India
and Indian customers are not ready for yet
and for a business model where pricing and own products
are the USP.
And for that reason, I am out,
but I loved your energy level.
The way you said, "I don't know the gross profit,"
"but I'm aware of succession planning."
Beautiful energy.
Keep it up.
If you are the only manufacturer of keratin,
why don't you just sell keratin
and build a big brand around it?
Do away with the daily hassles of running a salon
and do this instead.
Lakmé doesn't run salons with the intent of making revenue.
They run salons
because their products over there help to build credibility.
If I set out to sell Agami Professional without salons,
it won't sell.
When so many consumers review the product
and vouch for Agami Keratin, it becomes easier to sell.
- No, wrong! - That's not true.
Lakmé doesn't even get 1% business from their salons.
They don't do sampling there.
It's a hair business.
Their business is make-up and skin.
They are different companies
and there's no connection between them.
You're focused on culture.
Here's my advice.
Take debt from friends and family.
Your cash flow per outlet is good.
You could pay the debt off.
You will get to a certain scale.
Establish 20 to 30 outlets.
- Then approach investors. - Yes.
It's too early right now.
Yes? I'm out.
As a founder, you're phenomenal.
You know how to run a business.
You launched your own products to cut down on costs.
This is long-term and strategic thinking.
You are exceptional in all those aspects.
I am out because your business is not as big
for all the things that you mentioned.
The investor lacks clarity given the model you've built.
Whether you will crack it
and go from 6 to 600 outlets or not
is not clear as of now.
For that reason, I am out.
Let us suppose
you are making an approximate profit of Rs. 1 lakh per salon.
If we were to extrapolate,
you'll need to open 100 salons to get to a revenue of Rs. 1 crore.
Going from 0 to 6
and 6 to 100 is a whole new ballgame.
You won't be able to maintain the profitability by any means.
I don't quite understand how the investor will make money.
That's why, I am out too,
but good luck to you.
It was lovely meeting you.
All the Sharks are out. Thank you so much. All the best.
- Bye. - I have a suggestion. Rename your salon as Agami.
- Thank you, Sharks. - Thank you. Bye.
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