1 00:00:14,720 --> 00:00:16,760 [thrilling music playing] 2 00:00:30,600 --> 00:00:32,840 [theme music playing] 3 00:00:57,680 --> 00:00:59,600 Sharks, we are here to raise 4 00:01:11,000 --> 00:01:12,560 Sharks, the good news is 5 00:01:21,840 --> 00:01:24,160 is dominated by international brands. 6 00:01:24,680 --> 00:01:26,960 When we talk about the Indian youth, 7 00:01:27,040 --> 00:01:29,480 they easily get comfortable and durable shoes. 8 00:01:29,560 --> 00:01:32,000 However, in addition to comfortable shoes, 9 00:01:32,080 --> 00:01:34,000 they want stylish, fashionable and elegant shoes. 10 00:01:34,080 --> 00:01:36,720 They hope to find such shoes from international brands. 11 00:01:37,800 --> 00:01:39,000 But, Sharks, you know 12 00:01:39,120 --> 00:01:43,320 that the Indian youth lose money if they buy international brands. 13 00:01:43,440 --> 00:01:45,640 Bacca Bucci solves this problem. 14 00:01:46,640 --> 00:01:49,160 Bacca Bucci is a Gen Z, youth-focused 15 00:01:54,600 --> 00:01:58,480 boots for trekking and adventure and sports shoes. 16 00:01:58,600 --> 00:02:01,840 Bacca Bucci offers all possible sub-categories to our youth 17 00:02:01,960 --> 00:02:03,000 under one roof. 18 00:02:32,120 --> 00:02:34,360 and make this Indian brand global 19 00:02:41,280 --> 00:02:43,680 [upbeat music playing] 20 00:02:45,920 --> 00:02:49,360 [song playing] 21 00:03:00,800 --> 00:03:04,920 [song continues playing] 22 00:03:08,920 --> 00:03:12,240 [song playing] 23 00:03:21,720 --> 00:03:24,320 - Welcome to Shark Tank India Season 3. - Thank you! 24 00:03:30,080 --> 00:03:33,400 - I also notice Deepinder and Aman. - Okay. 25 00:03:33,480 --> 00:03:35,480 - They don't tie their shoelaces. - Yes. 26 00:03:35,600 --> 00:03:36,760 Is it a trend? 27 00:03:37,480 --> 00:03:41,040 Nowadays, it's a trend to tie shoelaces in multiple ways. 28 00:03:41,120 --> 00:03:42,040 So it's quite common these days. 29 00:03:42,120 --> 00:03:45,640 Maybe nowadays, international brands don't provide 30 00:03:45,720 --> 00:03:47,200 breathable shoes to customers. 31 00:03:47,200 --> 00:03:49,680 So they keep the shoelaces untied. 32 00:03:49,760 --> 00:03:52,440 - Well said! - However, they do it for style too. 33 00:03:52,520 --> 00:03:55,400 - Sir must have done it for style. - Don't exaggerate. 34 00:03:57,200 --> 00:04:00,000 Please tell us about your background. 35 00:04:00,080 --> 00:04:02,240 And how did you think of starting this? 36 00:04:03,360 --> 00:04:05,960 We both have chartered accountancy backgrounds. 37 00:04:06,040 --> 00:04:06,920 - Bravo! - Oh, nice! 38 00:04:06,920 --> 00:04:10,040 We were doing jobs. I was in loan syndication. 39 00:04:10,120 --> 00:04:11,680 Anuj was in EY. 40 00:04:11,840 --> 00:04:14,040 When I was doing a job, I needed shoes. 41 00:04:14,120 --> 00:04:17,200 When I compared the prices back in 2014, 42 00:04:17,280 --> 00:04:20,360 there was a significant difference between online and offline prices. 43 00:04:20,440 --> 00:04:23,720 In fact, online shoes were expensive and offline shoes were cheap. 44 00:04:23,800 --> 00:04:28,600 So we decided to start selling shoes as a side hustle. 45 00:04:28,680 --> 00:04:31,720 Gradually, we continued selling and today, 46 00:04:31,800 --> 00:04:33,520 - we are doing it full-time. - All right. 47 00:04:37,840 --> 00:04:39,760 Have you extended your business? 48 00:04:39,840 --> 00:04:41,680 It's a category extension. 49 00:04:42,640 --> 00:04:45,520 We launched T-shirts in the month of October. 50 00:04:52,240 --> 00:04:53,520 Sir, boots for you. 51 00:04:53,600 --> 00:04:54,960 [laughing] All right. 52 00:04:56,120 --> 00:04:57,840 - Nice packaging. - Thank you so much. 53 00:04:57,920 --> 00:05:01,080 Actually, we have a unique packaging for each segment. 54 00:05:01,280 --> 00:05:03,920 [intriguing music plays] 55 00:05:06,600 --> 00:05:08,240 We have two categories for boots. 56 00:05:08,320 --> 00:05:11,120 One is Fashion Boots and the other one is Biking and Adventure Boots. 57 00:05:11,200 --> 00:05:12,720 Thanks, guys. 58 00:05:15,560 --> 00:05:19,200 Generally, shoe companies have a style language. 59 00:05:19,600 --> 00:05:22,960 - Nike's logo is a swoosh sign. - Yes. 60 00:05:23,280 --> 00:05:25,520 Adidas has three stripes as its logo. 61 00:05:25,600 --> 00:05:29,240 It's easily identifiable and can become a fashion statement. 62 00:05:29,520 --> 00:05:31,760 All your shoes have a different design. 63 00:05:32,880 --> 00:05:35,080 We can't be sure if they are made by the same company. 64 00:05:35,160 --> 00:05:38,800 - Hmm. - Did you do it deliberately? Or you didn't think it over. 65 00:05:39,600 --> 00:05:42,360 As you can see, our brand logo is a circle. 66 00:05:42,440 --> 00:05:43,680 It is the corporate logo. 67 00:05:43,760 --> 00:05:45,640 We have three major categories. 68 00:05:45,720 --> 00:05:47,520 Sneakers, boots and sports. 69 00:05:59,160 --> 00:06:00,880 Where do you print "BB"? 70 00:06:00,960 --> 00:06:03,160 We print these monograms on shoes of every category. 71 00:06:03,440 --> 00:06:06,720 However, you'll see "BB Street" printed on Bacca Bucci Sneakers. 72 00:06:06,800 --> 00:06:07,960 Will this be printed as well? 73 00:06:08,040 --> 00:06:11,520 Ma'am, you'd see a tiny logo beside "street". 74 00:06:11,760 --> 00:06:12,840 What will we see in the Active category? 75 00:06:12,960 --> 00:06:15,000 - The word "active". - Just "active". 76 00:06:16,400 --> 00:06:17,520 It's a little confusing. 77 00:06:18,360 --> 00:06:20,800 There's no consistency in branding. 78 00:06:21,840 --> 00:06:23,000 - For example, the logo. - Yes. 79 00:06:23,080 --> 00:06:26,080 The space between the logo and the letter "b" is less 80 00:06:26,200 --> 00:06:28,440 than the space between "bacca" and "bucci". 81 00:06:28,560 --> 00:06:31,560 The design language will score two out of ten. 82 00:06:37,000 --> 00:06:38,800 That's not a problem. 83 00:06:40,240 --> 00:06:45,200 Your tagline, "creating culture for the generations to come". 84 00:06:45,360 --> 00:06:48,120 - True. - What culture do you want to create? 85 00:07:15,240 --> 00:07:16,400 How much does it cost? 86 00:07:16,840 --> 00:07:18,080 It's for Rs. 1,699. 87 00:07:18,160 --> 00:07:19,760 Your pricing is good. 88 00:07:19,840 --> 00:07:22,720 It appears to cost Rs. 2,500 and not Rs. 1,699. 89 00:07:22,800 --> 00:07:24,920 So I like the quality. 90 00:07:25,480 --> 00:07:28,240 I think it's not a bad product. 91 00:07:28,240 --> 00:07:32,160 It's nice, aspirational and has a funky design. 92 00:07:33,000 --> 00:07:34,720 We might not get such products at this price point. 93 00:07:34,800 --> 00:07:39,080 However, if we observe it closely, it lacks quality. 94 00:07:39,160 --> 00:07:43,320 The finishing of the stitching isn't up to the mark. 95 00:07:44,000 --> 00:07:48,040 Sir, the shoe you are holding has more than 27 components. 96 00:07:48,240 --> 00:07:51,000 It's one of the most complex shoes in our portfolio. 97 00:07:52,200 --> 00:07:53,600 How do you create a vibe? 98 00:07:53,680 --> 00:07:56,080 How have you created a culture? 99 00:07:56,160 --> 00:07:57,200 How can you call it a culture? 100 00:07:57,280 --> 00:07:58,800 Sir, it's the designs we offer. 101 00:07:58,880 --> 00:08:00,840 Just the design? Aren't you doing something for the content? 102 00:08:00,920 --> 00:08:02,360 - Instagram. - We are creating content. 103 00:08:08,320 --> 00:08:12,720 For a company that's trying to create a culture, having 72,000 followers 104 00:08:12,840 --> 00:08:14,120 is too low. 105 00:08:14,760 --> 00:08:16,920 Actually, before the Covid pandemic, 106 00:08:17,000 --> 00:08:20,280 we used only black and brown colours in Bacca Bucci but during Covid, 107 00:08:20,360 --> 00:08:23,840 we saw a shift in demand in the sneakers market. 108 00:08:23,920 --> 00:08:26,120 We pivoted it after Covid 109 00:08:33,480 --> 00:08:35,120 The price point on which we are giving this design... 110 00:08:35,200 --> 00:08:36,720 Is price your differentiator? 111 00:08:36,800 --> 00:08:38,560 Price... Yes, obviously. 112 00:08:38,680 --> 00:08:41,840 You can't build scale on pricing alone. 113 00:08:42,400 --> 00:08:44,840 In simple words, we sell a product costing Rs. 5,000 in Puma, 114 00:08:44,920 --> 00:08:46,200 at Rs. 2,000. 115 00:08:47,800 --> 00:08:50,240 How much does Nike's entry-level shoe cost? 116 00:08:50,480 --> 00:08:52,520 - Rs. 2,000. - Nike's entry-level shoe costs Rs. 2,500. 117 00:08:57,760 --> 00:08:59,760 We could get some Nike shoes 118 00:08:59,840 --> 00:09:02,960 at Rs. 1,800-Rs. 2,000 after discount 119 00:09:03,040 --> 00:09:04,760 but they won't be appealing. 120 00:09:05,480 --> 00:09:07,440 - But it bears the Nike logo. - Yes. 121 00:09:07,520 --> 00:09:08,440 That matters. 122 00:09:08,520 --> 00:09:10,600 When we talk about brand aspiration 123 00:09:10,680 --> 00:09:13,480 and showing off, people don't want cheap items. 124 00:09:14,360 --> 00:09:17,520 I hope you remember that before the launch of Tata Nano, 125 00:09:17,640 --> 00:09:20,560 the Maruti 800 and Maruti Alto were famous brands. 126 00:09:21,360 --> 00:09:23,560 Maruti 800 was the cheapest car in the market 127 00:09:23,640 --> 00:09:25,920 and Maruti Alto was the second cheapest car in the market. 128 00:09:26,040 --> 00:09:29,040 Do you know which car sold more out of these two cars? 129 00:09:29,800 --> 00:09:31,200 - Maruti 800, I guess. - No. 130 00:09:31,320 --> 00:09:32,120 Maruti Alto sold more. 131 00:09:32,200 --> 00:09:34,480 - Maruti Alto was in demand after it was launched. - Nano was launched. 132 00:09:34,880 --> 00:09:35,720 Okay. 133 00:09:35,800 --> 00:09:38,560 Then Maruti 800 became the largest-selling car in the market. 134 00:09:38,640 --> 00:09:40,240 - Hmm. - That's what I know. 135 00:09:55,560 --> 00:09:57,720 - I see. - You can't win because of pricing. 136 00:09:57,800 --> 00:09:58,600 - Correct! - Right! 137 00:09:58,680 --> 00:10:00,000 You must build a brand to win. 138 00:10:00,080 --> 00:10:02,560 You can win by being aspirational. 139 00:10:03,880 --> 00:10:05,560 - Please share your sales figures. - Yes, tell us your sales figures. 140 00:10:05,640 --> 00:10:07,440 Bowl them all over. 141 00:10:08,400 --> 00:10:11,960 You gave a valuation of Rs. 250 crores so there must be some magic. 142 00:10:12,040 --> 00:10:14,760 During FY22-23, 143 00:10:58,240 --> 00:11:00,280 - Are you making a profit? - Of course, ma'am. 144 00:11:00,360 --> 00:11:01,480 What is the EBITDA percentage? 145 00:11:09,400 --> 00:11:11,400 - What is the gross margin? - It's 55%. 146 00:11:11,520 --> 00:11:12,560 Of net revenue. 147 00:11:12,640 --> 00:11:15,800 - What is the total performance marketing percentage? - It's 8.5%. 148 00:11:15,880 --> 00:11:17,800 Please elaborate. 149 00:12:11,440 --> 00:12:13,160 In terms of ranking 150 00:12:13,240 --> 00:12:16,520 and sales, particularly in this industry. 151 00:12:16,600 --> 00:12:19,760 We are in the top ten footwear brands on Amazon. 152 00:12:20,680 --> 00:12:22,680 Are you in the top ten even after removing international brands? 153 00:12:22,760 --> 00:12:24,760 No. Let me tell you category-wise. 154 00:12:25,520 --> 00:12:29,840 We are the strategic partners for Amazon, Flipkart, and Myntra. 155 00:12:34,640 --> 00:12:37,040 - you'll see Bacca Bucci shoes first. - Bacca Bucci. 156 00:12:37,360 --> 00:12:38,960 When you write "sneakers", 157 00:12:39,040 --> 00:12:42,440 you'll see Bacca Bucci on top and I'm not talking about sponsored ads. 158 00:12:42,520 --> 00:12:44,080 - I'm talking about organic visibility. - Organic. 159 00:12:44,160 --> 00:12:46,560 Our average rating on Amazon is 4.1 stars. 160 00:12:50,600 --> 00:12:53,200 Sir, our product has value. Our NPS is 60. 161 00:12:57,920 --> 00:12:59,200 What are your total returns? 162 00:12:59,320 --> 00:13:00,680 16%-18%. 163 00:13:07,040 --> 00:13:10,920 At Bacca Bucci, we didn't forego the conventional way of doing business. 164 00:13:11,040 --> 00:13:15,120 We believe in the two pillars of business, growth and profitability. 165 00:13:16,240 --> 00:13:18,320 One must enhance the product 166 00:13:18,400 --> 00:13:20,160 to strengthen these two pillars. 167 00:13:20,240 --> 00:13:22,000 One must make the product the king. 168 00:13:22,080 --> 00:13:24,040 We want to use the money we get 169 00:13:24,120 --> 00:13:27,680 for R&D and also invest in moulds. 170 00:13:28,840 --> 00:13:30,840 We want to make it a premium category. 171 00:13:30,920 --> 00:13:33,000 We also want to hire better teams. 172 00:13:34,280 --> 00:13:35,680 Do you manufacture yourself? 173 00:13:42,960 --> 00:13:46,480 Basically, they aren't allowed to manufacture for other online brands. 174 00:13:46,560 --> 00:13:49,280 We consume their capacity wholly. 175 00:13:50,360 --> 00:13:51,960 Firstly, I'm happy to see 176 00:13:52,040 --> 00:13:54,600 fellow chartered accountants as entrepreneurs. 177 00:13:54,800 --> 00:13:57,920 Rs. 80 crores sales with profits is not a joke. 178 00:13:58,000 --> 00:13:59,200 So, congratulations! 179 00:13:59,360 --> 00:14:02,440 However, I don't see a USP. 180 00:14:03,080 --> 00:14:06,160 Branding... It's important to create a culture. 181 00:14:06,240 --> 00:14:08,280 It can't be created on just pricing. 182 00:14:08,360 --> 00:14:11,120 Right? I think you should focus on it. 183 00:14:11,200 --> 00:14:13,280 But without a clear vision, 184 00:14:13,400 --> 00:14:15,560 I'm not excited about this. So I'm out. 185 00:14:24,080 --> 00:14:29,400 Big fashion brands don't invest in Amazon 186 00:14:29,480 --> 00:14:32,840 because of value-seeking behaviour. 187 00:14:34,000 --> 00:14:37,560 So it's not the ideal place for fashion discovery. 188 00:14:37,680 --> 00:14:40,400 You earn 45% of business from Amazon 189 00:14:40,480 --> 00:14:43,920 because your positioning in the consumer's mind is value for money. 190 00:14:44,000 --> 00:14:45,600 Which is quite powerful. 191 00:14:45,960 --> 00:14:48,240 Many big businesses in India 192 00:14:48,320 --> 00:14:50,280 are based on value-for-money positioning. 193 00:14:50,360 --> 00:14:54,720 I believe your genuine gross profit is 23%. 194 00:14:54,800 --> 00:14:56,000 And it's before marketing expenses. 195 00:14:56,080 --> 00:14:58,720 Because you add it after deducting gross margin and cost of selling. 196 00:14:58,800 --> 00:14:59,760 That's the gross margin. 197 00:15:12,800 --> 00:15:15,120 It's tough to build a fashion brand 198 00:15:15,200 --> 00:15:18,400 at a 23% gross margin. 199 00:15:18,480 --> 00:15:20,080 As an investor, 200 00:15:20,160 --> 00:15:23,880 I'm interested in brand building and you aren't the right fit so I'm out. 201 00:15:49,720 --> 00:15:51,200 When you were talking, 202 00:15:51,320 --> 00:15:54,640 you talked about materials and pricing. 203 00:15:54,720 --> 00:15:58,200 I was waiting for you to speak about brand elements. 204 00:15:58,360 --> 00:16:00,840 I wanted to understand your culture and vibes. 205 00:16:00,920 --> 00:16:05,200 I think you have a trading mentality because of your experience. 206 00:16:10,720 --> 00:16:13,040 For that reason, I'm out. 207 00:16:29,200 --> 00:16:31,560 I often tell my team members 208 00:16:31,640 --> 00:16:36,440 that taste and class are more important than metrics. 209 00:16:36,960 --> 00:16:40,440 If the brand has taste and class, metrics are a given. 210 00:16:40,640 --> 00:16:43,880 There are glaring errors in your logo. 211 00:16:45,600 --> 00:16:47,440 There's a design error. All right? 212 00:16:47,760 --> 00:16:49,480 If you can't see that, 213 00:16:49,760 --> 00:16:53,320 how will you build a good brand? 214 00:16:55,320 --> 00:16:56,200 So I'm out. 215 00:16:56,280 --> 00:16:57,240 Feedback taken. 216 00:16:57,320 --> 00:17:01,160 You'll definitely see the changes in branding very soon. 217 00:17:01,560 --> 00:17:04,320 - I talked about branding at the start. - Right. 218 00:17:04,440 --> 00:17:06,720 I totally agree with the other Sharks. It's not up to the mark. 219 00:17:08,440 --> 00:17:09,760 But numbers don't lie. 220 00:17:11,760 --> 00:17:13,400 So there's something about you. 221 00:17:13,840 --> 00:17:15,600 - One market segment is ignored. - Right. 222 00:17:15,680 --> 00:17:18,480 Maybe you could relate to it but we can't. 223 00:17:18,560 --> 00:17:20,440 - Right. - And you successfully built a business. 224 00:17:20,680 --> 00:17:22,600 However, I don't understand how to make a deal. 225 00:17:23,720 --> 00:17:26,040 Your ask is so unrealistic 226 00:17:26,360 --> 00:17:28,600 that I can't come close to it. 227 00:17:28,720 --> 00:17:30,160 So I wish you the best but I'm out. 228 00:17:30,280 --> 00:17:31,360 I'll give you a piece of advice. 229 00:17:31,480 --> 00:17:33,560 - Sure. - If you really want to understand customers, 230 00:17:33,680 --> 00:17:36,640 stay close to them and develop products for them, 231 00:17:36,640 --> 00:17:39,360 open offline stores. It'll increase your gross margin. 232 00:17:39,440 --> 00:17:41,560 You'll be able to interact with the customers directly, 233 00:17:47,680 --> 00:17:48,640 All right. Thank you, sir. 234 00:17:48,720 --> 00:17:50,440 - Super! Good luck. - Thank you! 235 00:17:51,880 --> 00:17:54,480 [music playing] 236 00:19:01,680 --> 00:19:03,280 [theme music playing] 237 00:19:24,360 --> 00:19:25,640 [theme music fades] 238 00:19:26,000 --> 00:19:26,880 Hi, Sharks. 239 00:19:27,400 --> 00:19:29,520 Just like you, we are parents too. 240 00:19:29,600 --> 00:19:32,640 Parents these days face a common problem 241 00:19:33,040 --> 00:19:36,040 which is the increasing screen time of our children. 242 00:19:36,880 --> 00:19:39,160 They need a screen be it while eating, 243 00:19:39,360 --> 00:19:41,400 when they are bored 244 00:19:41,600 --> 00:19:43,640 or when they go outside. 245 00:19:44,640 --> 00:19:47,440 If we try to take the screens from them... 246 00:19:47,560 --> 00:19:49,480 Oh my God! Another level drama! 247 00:19:49,560 --> 00:19:51,280 "Mom, ten minutes! Mom, five minutes!" 248 00:19:51,400 --> 00:19:53,000 "Mom, 1.5 minutes!" 249 00:19:53,120 --> 00:19:56,120 We melt and give them the screens. 250 00:19:58,440 --> 00:20:00,880 It has become an addiction now. 251 00:20:00,880 --> 00:20:02,960 What do we even do, Sharks? 252 00:21:03,880 --> 00:21:05,760 Not in a boring way. 253 00:21:15,000 --> 00:21:17,280 It is all in the voice of children. 254 00:21:28,760 --> 00:21:30,840 comprehension and attention span. 255 00:21:31,000 --> 00:21:33,880 We make all this content in-house. 256 00:21:39,800 --> 00:21:43,440 and best exclusive kids audio platform 257 00:21:44,400 --> 00:21:46,280 as an alternative to screens 258 00:21:46,400 --> 00:21:49,200 but which is healthy, fun 259 00:21:49,280 --> 00:21:50,680 and productive. 260 00:21:51,000 --> 00:21:54,520 Our ask is Rs. 25 lakhs for 1.5% equity. 261 00:22:03,200 --> 00:22:06,360 My son is 7.5 and my daughter is 5. 262 00:22:06,840 --> 00:22:08,360 My daughter is 8 years old. 263 00:22:08,440 --> 00:22:10,640 Did your children inspire you to start this business? 264 00:22:10,720 --> 00:22:12,240 How did you start this venture? 265 00:22:23,400 --> 00:22:26,320 And I am sure a lot of parents have noticed the same thing. 266 00:22:26,440 --> 00:22:31,640 We were looking for alternatives for children to use. 267 00:22:31,760 --> 00:22:35,040 We started working on this last September. 268 00:22:35,120 --> 00:22:38,200 But we launched this last month, in the month of August. 269 00:22:49,320 --> 00:22:51,880 we are focusing our product on PMF. 270 00:23:09,320 --> 00:23:11,120 If you don't mind, can we demo the product? 271 00:23:11,200 --> 00:23:13,200 - I think that will give you... - What a great segue. 272 00:23:19,640 --> 00:23:21,640 and has come across Vobble, 273 00:23:21,800 --> 00:23:23,560 they can check out our website 274 00:23:23,640 --> 00:23:27,240 to learn more about us. 275 00:23:39,880 --> 00:23:42,880 You can find our premium option 276 00:23:43,680 --> 00:23:47,160 at the bottom of our website, 277 00:23:47,480 --> 00:23:50,160 where you can download two episodes for free. 278 00:23:50,240 --> 00:23:53,360 Or you can listen to stories and music on our website. 279 00:23:53,800 --> 00:23:56,880 If you like our audio, then please 280 00:23:57,560 --> 00:23:59,680 purchase our box from our website. 281 00:23:59,760 --> 00:24:01,520 So, headphones are not included. 282 00:24:01,640 --> 00:24:02,600 Headphones are included. 283 00:24:02,680 --> 00:24:06,280 - But why? People own headphones from boAt or any other brand. - Yes. 284 00:24:06,920 --> 00:24:09,920 Children want something they can touch that is tangible. 285 00:24:10,000 --> 00:24:12,440 Otherwise, they will listen to the audio 286 00:24:12,600 --> 00:24:14,360 from the app. 287 00:24:14,440 --> 00:24:16,400 Are these headphones different from normal headphones? 288 00:24:16,480 --> 00:24:19,000 - Does it provide an immersive experience? - Yes. 289 00:24:19,080 --> 00:24:20,440 - So... - Let me explain. 290 00:24:34,640 --> 00:24:38,080 when you open the box, you will see the headphones. 291 00:24:38,200 --> 00:24:40,120 [laughing] 292 00:24:40,240 --> 00:24:42,400 - Can we check it? - Of course. 293 00:24:42,480 --> 00:24:44,720 I like your style. 294 00:24:45,440 --> 00:24:46,640 Are these available in one colour? 295 00:24:46,720 --> 00:24:48,840 - We've launched this in one colour. - Nice colour. 296 00:24:48,920 --> 00:24:50,480 It is a neutral colour. 297 00:24:50,640 --> 00:24:52,920 [theme music playing] 298 00:24:54,720 --> 00:24:55,720 Thank you! 299 00:24:56,640 --> 00:24:57,760 Oh! There is a phone too. 300 00:24:57,840 --> 00:24:59,080 - Yeah, thanks. - Can we keep the phones? 301 00:24:59,200 --> 00:25:00,360 Yeah! 302 00:25:00,440 --> 00:25:03,040 There are two activity books inside the box. 303 00:25:03,160 --> 00:25:04,160 Why did you give us the phone? 304 00:25:04,240 --> 00:25:06,080 - For demo? Okay. - Our app is installed on it. 305 00:25:06,160 --> 00:25:07,520 You can listen to it later. 306 00:25:07,600 --> 00:25:08,640 Got it. Thank you. 307 00:25:10,800 --> 00:25:13,080 Sowmya, did you make the entire content? 308 00:25:13,160 --> 00:25:14,600 - Yes. - Interesting. 309 00:25:15,000 --> 00:25:17,000 Will this cause a trademark issue? 310 00:25:17,080 --> 00:25:19,800 Alice In Wonderland and Panchatantra 311 00:25:32,520 --> 00:25:34,120 - My favourite. - Yes. 312 00:25:34,240 --> 00:25:35,920 Oh, I loved the design. 313 00:25:36,520 --> 00:25:38,440 - Very fun! - Thank you. 314 00:25:39,880 --> 00:25:41,880 [music playing] 315 00:25:41,880 --> 00:25:45,080 'The rabbit jumped down a large hole over there.' 316 00:26:05,760 --> 00:26:08,720 - I heard Alice In Wonderland. - Yes? 317 00:26:08,800 --> 00:26:10,960 - Is this your production? - Yes. 318 00:26:15,760 --> 00:26:16,720 Thank you! 319 00:26:16,800 --> 00:26:19,760 The child will have to keep a device with them. 320 00:26:19,760 --> 00:26:22,040 No! The app is meant for parents. 321 00:26:26,400 --> 00:26:28,200 That's why headphones and speakers 322 00:26:28,280 --> 00:26:31,440 help keep the child away from the screen. 323 00:26:32,880 --> 00:26:35,120 Are your products exclusively sold on your website? 324 00:26:43,480 --> 00:26:44,720 I am the CEO. 325 00:26:44,800 --> 00:26:48,840 I look after marketing, finance and operations. 326 00:26:48,960 --> 00:26:50,560 - Sowmya! - I am the head of product. 327 00:26:50,640 --> 00:26:52,960 - I look at the content, design... - Design and content! Very nice. 328 00:26:54,240 --> 00:26:58,640 You mentioned that children get to learn a lot from this. 329 00:26:58,960 --> 00:27:00,160 Have you measured 330 00:27:00,760 --> 00:27:03,360 educational efficacy? 331 00:27:03,440 --> 00:27:05,280 Is there a study on this? 332 00:27:05,960 --> 00:27:07,360 Children who listen to audio 333 00:27:07,440 --> 00:27:09,400 have seven times better vocabulary. 334 00:27:21,880 --> 00:27:23,560 Because we didn't want to enter 335 00:27:23,640 --> 00:27:25,680 into something that was harmful to children. 336 00:27:27,080 --> 00:27:28,480 Tell us about pricing and costing. 337 00:27:49,480 --> 00:27:52,400 Take OTT, for example. It is difficult 338 00:27:52,480 --> 00:27:55,040 to make Indians pay for content. 339 00:27:56,320 --> 00:27:58,280 With this box, 340 00:28:10,440 --> 00:28:12,920 If you take 12 months subscription it will cost you Rs. 250. 341 00:28:13,000 --> 00:28:15,400 If you take a monthly subscription, it will cost you Rs. 300. 342 00:28:15,480 --> 00:28:17,360 You get more discount if you subscribe... 343 00:28:17,440 --> 00:28:19,720 Wow! You didn't think much about pricing. 344 00:28:19,800 --> 00:28:22,040 [suspenseful music playing] 345 00:28:22,120 --> 00:28:23,920 Keep pricing aside. 346 00:28:24,000 --> 00:28:25,400 Keep pricing on the side. 347 00:28:25,520 --> 00:28:27,760 You said you have PMF. 348 00:28:28,280 --> 00:28:32,200 We have been working on pilots since September. 349 00:28:32,320 --> 00:28:34,080 - This product... - What do you think isn't working? 350 00:28:34,160 --> 00:28:35,680 What is not working? 351 00:28:36,720 --> 00:28:40,040 Currently, we are... 352 00:28:40,120 --> 00:28:43,720 Our box... We currently have 200 users. 353 00:28:43,840 --> 00:28:46,200 - Hmm! - In the last one month itself. 354 00:28:59,160 --> 00:29:01,160 has been in contact with the customers 355 00:29:01,280 --> 00:29:03,800 to gather feedback ever since our launch. 356 00:29:03,880 --> 00:29:07,080 And with whatever feedback we are getting, 357 00:29:07,160 --> 00:29:09,240 we are looking at the next iteration. 358 00:29:09,320 --> 00:29:10,840 What are your customers saying? 359 00:29:11,360 --> 00:29:12,520 What is not working for them? 360 00:29:12,600 --> 00:29:14,520 One of the biggest things... 361 00:29:14,600 --> 00:29:16,960 We are also looking it in version 2.0. 362 00:29:17,040 --> 00:29:19,280 It is the autonomy of the headphones. 363 00:29:19,400 --> 00:29:21,000 Currently, it's a Bluetooth connected device. 364 00:29:21,080 --> 00:29:23,680 So, parents have to always stay around. 365 00:29:23,760 --> 00:29:27,320 We have started working on the 2.0 prototype. 366 00:29:35,800 --> 00:29:37,320 What if the price increases? 367 00:29:37,400 --> 00:29:39,720 Vineeta, our plan is... We've just launched our product. 368 00:29:39,840 --> 00:29:43,240 We plan to unbundle our product in a quarter. 369 00:29:43,320 --> 00:29:46,440 Those who don't have headphones can buy them. 370 00:29:46,520 --> 00:29:49,080 Customers who only want to buy a subscription can do so. 371 00:29:49,200 --> 00:29:51,120 Don't you think you are complicating things? 372 00:29:52,800 --> 00:29:55,120 Do you have clarity on what you want to become? 373 00:29:55,200 --> 00:29:57,560 - Yes. - I fail to comprehend 374 00:29:57,680 --> 00:30:01,320 whether this is an alternative to screen time 375 00:30:01,400 --> 00:30:02,960 or storytelling. 376 00:30:04,680 --> 00:30:07,400 Have you done primary research 377 00:30:07,520 --> 00:30:10,520 where you saw... You mentioned talking to your customers. 378 00:30:10,600 --> 00:30:12,400 Have they stopped watching the screen? 379 00:30:13,640 --> 00:30:16,000 From the beginning, we've been saying 380 00:30:16,080 --> 00:30:17,800 that we won't replace anything. 381 00:30:18,000 --> 00:30:20,000 We will give parents an alternative. 382 00:30:20,080 --> 00:30:22,800 Even if we reduce the screen time by half, 383 00:30:22,880 --> 00:30:24,720 we think that will be a big win for us. 384 00:30:25,920 --> 00:30:30,920 Suppose I take the child's phone and play stories on YouTube 385 00:30:31,000 --> 00:30:32,600 and I have the screen. 386 00:30:32,680 --> 00:30:34,000 - The child is listening to the audio. - Okay. 387 00:30:34,160 --> 00:30:36,600 It is also a storytelling immersive experience. 388 00:30:36,680 --> 00:30:38,080 What will be the difference between that and this? 389 00:30:38,160 --> 00:30:39,920 We are curating our content. 390 00:30:40,000 --> 00:30:42,200 We are making our content safe. 391 00:30:42,320 --> 00:30:44,000 If you go on YouTube 392 00:30:44,080 --> 00:30:45,760 - or any other aggregator... - So start 393 00:30:45,840 --> 00:30:47,240 a YouTube channel. 394 00:30:47,320 --> 00:30:49,680 Start a YouTube channel. Why did you make this product? 395 00:30:50,720 --> 00:30:52,480 There will be videos on YouTube. 396 00:30:52,560 --> 00:30:53,880 - No! - Children go to 397 00:30:53,960 --> 00:30:55,000 - other channels. - Podcast! 398 00:30:55,080 --> 00:30:57,280 Do you know the biggest 399 00:30:57,400 --> 00:30:58,560 audio streaming service... 400 00:30:58,640 --> 00:31:00,800 One of the largest 401 00:31:00,880 --> 00:31:02,640 audio streaming services. People believe it's Spotify. 402 00:31:03,880 --> 00:31:07,320 People use YouTube only for audio. 403 00:31:07,400 --> 00:31:09,000 Not video and audio. 404 00:31:09,080 --> 00:31:10,320 - Hmm! - Yes. 405 00:31:11,120 --> 00:31:13,640 Honestly speaking, our content is the difference. 406 00:31:13,720 --> 00:31:14,720 We are creating IPs. 407 00:31:14,800 --> 00:31:16,720 Ultimately, it comes down to that. 408 00:31:16,800 --> 00:31:17,920 Absolutely! 409 00:31:18,000 --> 00:31:19,400 - We are a content company! - We are a content company! 410 00:31:19,480 --> 00:31:22,280 If you are a content company, ensure that it is distributed everywhere. 411 00:31:22,600 --> 00:31:25,320 On YouTube and other places. I don't know other platforms. 412 00:31:25,400 --> 00:31:28,120 - Do it everywhere! - When it comes to distribution, 413 00:31:28,240 --> 00:31:30,120 we've just started. 414 00:31:30,200 --> 00:31:31,880 We are doing it through our website. 415 00:31:32,000 --> 00:31:33,800 But we are also listed on Amazon 416 00:31:33,880 --> 00:31:36,440 with this box. 417 00:31:36,520 --> 00:31:38,840 Additionally, we are also considering Hamely's 418 00:31:38,920 --> 00:31:41,720 and various other offline distribution elements. 419 00:31:41,800 --> 00:31:44,440 In terms of online, where you mentioned 420 00:31:44,520 --> 00:31:47,000 Spotify and other platforms 421 00:31:47,080 --> 00:31:49,080 where we give our content, 422 00:31:49,200 --> 00:31:50,120 we plan to do that. 423 00:31:50,200 --> 00:31:52,600 We want to create a library of our content. 424 00:31:52,680 --> 00:31:54,160 And create a brand. 425 00:31:54,240 --> 00:31:57,360 After that, we would like to dilute it on other platforms. 426 00:31:57,480 --> 00:31:59,400 I will give you an offer. 427 00:32:02,320 --> 00:32:04,120 I believe in your product. 428 00:32:04,200 --> 00:32:05,320 - Yes. - Because 429 00:32:05,440 --> 00:32:07,920 the age group of 4 to 10 430 00:32:08,000 --> 00:32:11,920 is a good age group. Parents spend for their kids. 431 00:32:12,000 --> 00:32:13,800 There are a lot of things that need to be figured out 432 00:32:13,880 --> 00:32:15,160 because you are pre-revenue. 433 00:32:15,240 --> 00:32:16,720 But you had me at Suppandi. 434 00:32:17,320 --> 00:32:21,520 So, I will give you Rs. 25 lakhs for 5% equity. 435 00:32:21,600 --> 00:32:23,840 I will value you at Rs. 5 crores. 436 00:32:36,400 --> 00:32:39,720 First of all, congratulations. You got an offer. 437 00:32:40,080 --> 00:32:42,640 I don't know based on what you've been given an offer. 438 00:32:42,720 --> 00:32:44,480 I am not sure what you want to do. 439 00:32:46,480 --> 00:32:49,520 I think, you don't have PMF and you won't get it. 440 00:32:51,360 --> 00:32:53,640 Because you don't have clarity about what you want to do. 441 00:32:54,000 --> 00:32:56,000 You noticed an issue with screen time. 442 00:32:56,080 --> 00:32:57,800 You found an alternative to it. 443 00:32:57,880 --> 00:32:59,320 You tried to look for an alternative. 444 00:32:59,400 --> 00:33:01,720 The fundamental reasoning 445 00:33:01,840 --> 00:33:02,920 is being questioned. 446 00:33:15,520 --> 00:33:17,600 in my opinion as an investor. 447 00:33:17,680 --> 00:33:20,120 It might be right for you. Maybe you can generate a cash flow. 448 00:33:20,200 --> 00:33:21,560 Therefore, I am out. 449 00:33:24,560 --> 00:33:25,960 I request that you 450 00:33:26,040 --> 00:33:29,360 examine specific aspects of your business model. 451 00:33:29,480 --> 00:33:31,760 If your product is on display in Hamleys 452 00:33:32,120 --> 00:33:34,280 and if it isn't sold in 6 months, 453 00:33:34,440 --> 00:33:36,920 the battery of the hardware will start to weaken. 454 00:33:38,400 --> 00:33:40,840 When that happens, the parent 455 00:33:40,920 --> 00:33:43,160 will have to send it to the service centre. 456 00:33:43,280 --> 00:33:45,960 The problem these products face is providing good support. 457 00:33:47,120 --> 00:33:49,920 Right? My point of view is 458 00:33:50,040 --> 00:33:52,360 to make the package as soon as possible. 459 00:33:52,480 --> 00:33:55,120 Provide excellent packaging and content 460 00:33:55,200 --> 00:33:58,440 and price it at Rs. 1,500, 461 00:33:58,520 --> 00:34:01,000 which is compatible with the device. 462 00:34:01,120 --> 00:34:03,760 This can serve as an add-on for their device, 463 00:34:13,600 --> 00:34:15,480 this is a hardware business or a content business. 464 00:34:15,560 --> 00:34:17,840 You are using both items simultaneously. 465 00:34:19,440 --> 00:34:22,640 I think, you need clarity on doing one thing, and that would be better. 466 00:34:22,760 --> 00:34:23,880 So, I am out. 467 00:34:24,240 --> 00:34:25,320 Thanks. 468 00:34:26,400 --> 00:34:28,880 Do you want to create a company 469 00:34:29,600 --> 00:34:31,400 in the content business? 470 00:34:31,480 --> 00:34:33,240 Millions of people are doing that. 471 00:34:33,320 --> 00:34:36,720 You can't make any progress in Rs. 25 lakhs. 472 00:34:38,200 --> 00:34:39,960 Ours is a tech platform. 473 00:34:40,040 --> 00:34:42,720 Our learning will be focused on what the child is listening to. 474 00:34:42,800 --> 00:34:45,400 Based on that, we will create 475 00:34:45,480 --> 00:34:47,800 more targeted content. 476 00:34:47,920 --> 00:34:49,800 Currently, we are 477 00:34:49,880 --> 00:34:51,680 doubling our content every month. 478 00:34:51,800 --> 00:34:52,800 - Okay! So... - So... 479 00:34:52,880 --> 00:34:54,720 - It will be very targeted. - I understand that. 480 00:34:54,800 --> 00:34:58,000 You want them to access the app on a phone. 481 00:34:58,080 --> 00:35:00,440 In that industry, 482 00:35:00,520 --> 00:35:03,800 there are many people who have algorithms, large teams, 483 00:35:03,960 --> 00:35:05,120 and millions of dollars. 484 00:35:05,200 --> 00:35:07,360 I don't want to play that game. I am out. 485 00:35:07,440 --> 00:35:08,520 Good luck! 486 00:35:10,520 --> 00:35:14,600 So my offer stands at Rs. 25 lakhs for 5% equity. 487 00:35:17,120 --> 00:35:20,480 Namita, we would like to add something. 488 00:35:33,520 --> 00:35:35,640 - So... - The deal hasn't been closed yet, right? 489 00:35:35,760 --> 00:35:38,000 We are raising Rs. 4 crores. 490 00:35:38,120 --> 00:35:40,120 - We have received Rs. 3 crores in funding. - Oh! 491 00:35:41,080 --> 00:35:42,200 On what valuation? 492 00:35:52,120 --> 00:35:54,880 and guide you, I offering 493 00:35:54,960 --> 00:35:56,880 Rs. 25 lakhs at 5%. 494 00:35:57,080 --> 00:35:58,280 Because I think I am worth it. 495 00:36:00,440 --> 00:36:04,840 If possible, what we would like to offer is 1.5%. 496 00:36:04,920 --> 00:36:07,720 - We can... - 1.5% was a previous deal. 497 00:36:07,800 --> 00:36:10,760 - I am at 5% and you are at 1.5%. - Yes. 498 00:36:10,880 --> 00:36:14,960 Namita, we want to give you 0.5% as an advisory. 499 00:36:31,680 --> 00:36:33,080 [camera clicks] 500 00:36:33,560 --> 00:36:35,040 Well done! I love the product. 501 00:36:35,120 --> 00:36:36,320 Good luck for the mission, 502 00:36:36,400 --> 00:36:38,640 - Sowmya and Neha! - Thank you so much, Sharks! 503 00:38:39,720 --> 00:38:42,400 [theme music playing] 504 00:38:53,280 --> 00:38:55,880 [theme music playing] 505 00:39:02,280 --> 00:39:04,000 Hello, Sharks! Greetings! 506 00:39:10,320 --> 00:39:12,240 I went to a salon for a haircut. 507 00:39:12,320 --> 00:39:14,400 He asked me to pay Rs. 400. 508 00:39:14,480 --> 00:39:16,880 I got scared. I belong to a lower middle-class family. 509 00:39:17,000 --> 00:39:18,080 We didn't have a lot of money. 510 00:39:18,160 --> 00:39:20,840 When I got an opportunity to do business, 511 00:39:20,920 --> 00:39:22,320 I chose salons. 512 00:39:22,440 --> 00:39:25,280 Because I wanted to make these services affordable. 513 00:39:25,360 --> 00:39:27,560 Now, with all due respect to all the salon owners, 514 00:39:27,640 --> 00:39:30,320 the meaning of affordability in our country is flawed. 515 00:39:30,440 --> 00:39:31,920 They set prices 516 00:39:32,000 --> 00:39:34,600 and claim that they are affordable for the middle class. 517 00:39:34,680 --> 00:39:36,040 But that is not true. 518 00:39:36,440 --> 00:39:38,240 I would like to ask something to you, Sharks. 519 00:39:38,600 --> 00:39:40,760 Is charging approximately Rs. 8,000 to 10,000 520 00:39:40,760 --> 00:39:43,680 for smoothing treatment affordable? 521 00:39:43,920 --> 00:39:46,360 Keratin treatment is anywhere between Rs. 5,000 to 8,000. 522 00:39:46,480 --> 00:39:47,640 Is that affordable? 523 00:39:48,080 --> 00:39:50,360 Now, let's talk about Be U Natural Salon. 524 00:39:52,160 --> 00:39:54,280 [theme music playing] 525 00:39:54,360 --> 00:39:55,920 Our cost for smoothing treatment 526 00:39:56,000 --> 00:39:59,920 is Rs. 1,999, any length. 527 00:40:04,040 --> 00:40:06,760 Our price for keratin treatment is only Rs. 999. 528 00:40:10,760 --> 00:40:13,960 we do waxing of full arms, full legs, and underarms, 529 00:40:14,040 --> 00:40:15,480 for only Rs. 49. 530 00:40:18,640 --> 00:40:20,200 You must be wondering 531 00:40:20,360 --> 00:40:23,440 that I keep saying 'affordable', but have I generated any revenue or not? 532 00:40:23,520 --> 00:40:24,840 [Anupam laughing] 533 00:40:37,160 --> 00:40:39,280 Be U Natural Salon 534 00:40:39,360 --> 00:40:42,200 is poised to become India's number two salon 535 00:40:42,320 --> 00:40:44,200 within the next 12 to 18 months 536 00:40:44,280 --> 00:40:46,440 in the owned-salon category. 537 00:40:46,520 --> 00:40:48,080 We can also be number one, 538 00:40:48,160 --> 00:40:49,840 if I have your support. 539 00:40:49,960 --> 00:40:51,000 My ask is 540 00:40:59,880 --> 00:41:01,520 which will be possible with your support. 541 00:41:01,640 --> 00:41:04,520 - What confidence! - Impressive! 542 00:41:04,600 --> 00:41:06,480 - My God! - Welcome to Shark Tank, Mr. Deepak. 543 00:41:06,560 --> 00:41:07,240 Thank you, sir. 544 00:41:07,240 --> 00:41:09,040 - Are you from North India? - Delhi. 545 00:41:09,160 --> 00:41:12,040 - You said the word brother. - [chuckles] 546 00:41:16,120 --> 00:41:19,240 I started my career in 2005 as a waiter. 547 00:41:24,240 --> 00:41:26,200 every graduate is either given the job of a waiter 548 00:41:26,200 --> 00:41:28,040 or a room attendant with housekeeping. 549 00:41:28,200 --> 00:41:30,000 I am talking about 2005. 550 00:41:30,160 --> 00:41:33,640 - The scenario has changed slightly after 15 years. - After that? 551 00:41:33,760 --> 00:41:34,840 I started with that. 552 00:41:34,920 --> 00:41:38,200 My last job was with Marriott Hotels as a Training Head. 553 00:41:38,280 --> 00:41:40,160 - Then I left them. - What did you do? 554 00:41:40,240 --> 00:41:41,120 I opened a salon. 555 00:41:55,440 --> 00:41:58,680 Take keratin or smoothening for instance. 556 00:41:58,760 --> 00:42:01,680 How will you convince me about these treatments? 557 00:42:01,800 --> 00:42:03,800 "Namita, I am charging a very low price," 558 00:42:08,760 --> 00:42:10,720 I will always praise my products. 559 00:42:10,800 --> 00:42:14,520 The second approach is what our customers say about us. 560 00:42:14,600 --> 00:42:18,200 Be U Natural Salon has over 1,500 reviews on Google. 561 00:42:18,320 --> 00:42:20,480 There might only be one or two salons with such reviews. 562 00:42:20,560 --> 00:42:23,640 The products are not that highly-priced. 563 00:42:23,720 --> 00:42:25,240 This is a misconception. 564 00:42:25,400 --> 00:42:28,880 A bottle of GK Hair Keratin 565 00:42:29,000 --> 00:42:31,800 costs Rs. 18,000 with the MRP being Rs. 32,000. 566 00:42:31,920 --> 00:42:34,680 You service 30 customers at Rs. 18,000. 567 00:42:34,760 --> 00:42:37,960 It means the cost comes to about Rs. 600 per customer. 568 00:42:38,200 --> 00:42:40,520 You wouldn't charge Rs. 9,000 for a 600-rupee service! 569 00:42:40,600 --> 00:42:42,880 So, the margins in services are always very high. 570 00:42:42,960 --> 00:42:46,080 Look. Salons charge you a lot 571 00:42:46,200 --> 00:42:48,440 firstly because of the real estate costs. 572 00:42:48,520 --> 00:42:49,640 The rental is high. 573 00:42:49,800 --> 00:42:51,760 - Then the service experience. - Experience. 574 00:42:51,880 --> 00:42:54,120 The gap between the chairs, 575 00:42:54,200 --> 00:42:56,760 the quality of the beverages being served, the air-conditioning... 576 00:42:56,840 --> 00:43:00,840 Some consumers want that whereas some don't. 577 00:43:00,960 --> 00:43:04,560 Waxing and threading in metros at a price of Rs. 49 578 00:43:04,680 --> 00:43:08,200 is not going to work as far as I understand. 579 00:43:08,360 --> 00:43:10,920 Waxing at Rs. 49 is just a carrot. 580 00:43:11,000 --> 00:43:13,520 The profit doesn't come from that 49-rupee service. 581 00:43:13,600 --> 00:43:15,680 I said, "If you're a member". 582 00:43:15,800 --> 00:43:17,800 If you're a member, you're bound to come every month. 583 00:43:17,880 --> 00:43:22,240 A box of wax costs Rs. 55 and can service 6 customers. 584 00:43:22,400 --> 00:43:24,640 In spite of charging Rs. 49, you're not making a loss, 585 00:43:24,760 --> 00:43:27,520 but your customer acquisition cost goes down, right? 586 00:43:55,440 --> 00:43:56,640 and many even shut down. 587 00:43:56,720 --> 00:43:59,240 They shut down because their profit and loss statements 588 00:43:59,320 --> 00:44:00,160 showed no profits. 589 00:44:00,240 --> 00:44:03,400 The ones that are running are not making high profits either. 590 00:44:03,520 --> 00:44:05,760 People are investing Rs. 2.5 crores in opening one salon 591 00:44:05,880 --> 00:44:07,160 - which... - How much do you invest? 592 00:44:15,880 --> 00:44:18,960 - The ambience is fine. There's a gap between chairs. - Yes. 593 00:44:19,080 --> 00:44:21,000 - It's not bad. - The branding is nice. 594 00:44:21,080 --> 00:44:23,160 If it's in a mall, the rent will be economical too. 595 00:44:23,360 --> 00:44:25,840 The rent is Rs. 1.8 lakhs. 596 00:44:29,400 --> 00:44:30,920 How much business does this generate? 597 00:44:31,000 --> 00:44:34,280 Around Rs. 10 to 12 lakhs a month during off season. 598 00:44:44,760 --> 00:44:46,280 I am not that kind of a guy. 599 00:44:46,400 --> 00:44:48,400 I know how much money comes in... 600 00:44:48,480 --> 00:44:49,400 What kind of guy? 601 00:44:50,360 --> 00:44:53,480 I mean people who are very particular about the accounts. 602 00:44:53,560 --> 00:44:54,880 I know my numbers well. 603 00:44:54,960 --> 00:44:56,760 You mean you're not like us. 604 00:44:56,880 --> 00:44:59,640 - No, that is not what I meant. - Okay. 605 00:44:59,760 --> 00:45:01,800 I don't get into the gross and net margins. 606 00:45:01,960 --> 00:45:03,600 All of it is my money. 607 00:45:03,840 --> 00:45:05,600 I do not owe anybody money. 608 00:45:05,960 --> 00:45:08,080 I know the total money that comes in, 609 00:45:08,160 --> 00:45:10,080 the total amount spent and how much is the profit. 610 00:45:10,280 --> 00:45:13,520 So, your profit is Rs. 3 lakhs on a revenue of Rs. 10 lakhs. 611 00:45:14,280 --> 00:45:16,440 Your rent is Rs. 2 lakhs. 612 00:45:45,520 --> 00:45:47,800 Enrich has 75 salons in the country. 613 00:45:48,000 --> 00:45:49,800 - Owned? - Other than that, there's no salon.. 614 00:45:49,920 --> 00:45:51,000 Naturals is there. 615 00:45:51,320 --> 00:45:53,480 Out of 700 salons, they don't even own one. 616 00:45:53,560 --> 00:45:55,040 Geetanjali, Meghna... 617 00:45:55,200 --> 00:45:58,360 Geetanjali has about 100 salons. 618 00:45:58,440 --> 00:46:01,360 10 to 15 are owned and the rest are franchises. 619 00:46:01,480 --> 00:46:04,920 - Your average revenue from 6 salons is Rs. 30 lakhs. - Yes. 620 00:46:05,040 --> 00:46:06,840 - From 5 salons. The sixth just opened. - 5. 621 00:46:06,840 --> 00:46:09,280 - So. Rs. 5 to 6 lakhs revenue per salon. - Yes. 622 00:46:09,360 --> 00:46:10,960 All the salons I know 623 00:46:11,040 --> 00:46:12,920 do a revenue of Rs. 30 lakhs from one salon 624 00:46:13,040 --> 00:46:14,840 whereas you're doing the same from 5 to 6 salons. 625 00:46:14,920 --> 00:46:16,240 Please don't be offended, 626 00:46:16,360 --> 00:46:19,040 but you're comparing apples and oranges here. 627 00:46:19,320 --> 00:46:22,920 I can't be compared to Geetanjali and Looks. 628 00:46:23,040 --> 00:46:24,400 They cater to South Delhi and Gurgaon. 629 00:46:24,520 --> 00:46:26,160 - I don't have a salon in Gurgaon. - We got it. 630 00:46:26,280 --> 00:46:28,520 I run salons typically in East Delhi. 631 00:46:28,600 --> 00:46:30,280 How come they have franchises and you don't? 632 00:46:30,360 --> 00:46:32,960 It's the quality that we try to give. 633 00:46:33,120 --> 00:46:35,520 That isn't possible in a franchise business. 634 00:46:35,640 --> 00:46:38,080 You lose control of them, okay? 635 00:46:38,160 --> 00:46:40,280 - The margins are too tight. - True. 636 00:46:40,400 --> 00:46:43,400 The training and culture are extremely important. 637 00:46:43,560 --> 00:46:45,520 I admit we don't offer cappuccinos to our customers, 638 00:46:45,800 --> 00:46:49,320 but every client is given delicious tea in a lovely cup. 639 00:46:49,520 --> 00:46:50,400 Very nice. 640 00:46:50,480 --> 00:46:52,280 That's great. Good. What's this? 641 00:46:52,520 --> 00:46:55,280 When our business grew, 642 00:46:55,400 --> 00:46:58,280 we began selling shampoos and masks in retail. 643 00:46:58,360 --> 00:46:59,480 It occurred to me, 644 00:46:59,560 --> 00:47:02,680 could we make our own products to do away with margins? 645 00:47:02,760 --> 00:47:04,440 So, I began working on this. 646 00:47:04,520 --> 00:47:06,000 The line is called Agami Professional. 647 00:47:06,120 --> 00:47:08,200 It took me a long time to develop it. 648 00:47:08,320 --> 00:47:10,800 We manufacture this keratin. I've developed it. 649 00:47:18,080 --> 00:47:20,080 We approve of this 650 00:47:20,160 --> 00:47:22,120 because I do 50 keratin treatments in a day. 651 00:47:22,200 --> 00:47:23,440 No one else does. 652 00:47:23,520 --> 00:47:24,720 - Very good. - No salon does. 653 00:47:24,840 --> 00:47:27,360 The manufacturer has no clients to perform trials on. 654 00:47:27,640 --> 00:47:28,800 That's why I am so confident. 655 00:47:28,880 --> 00:47:31,000 After numerous trials spanning years, 656 00:47:31,120 --> 00:47:32,560 we developed this keratin. 657 00:47:32,640 --> 00:47:35,840 The keratin cost me Rs. 3,000. 658 00:47:39,720 --> 00:47:42,440 Great. Deepinder wants to ask you something. 659 00:47:42,520 --> 00:47:43,680 [whimsical music playing] 660 00:47:44,040 --> 00:47:45,240 I have nothing to ask right now. 661 00:47:45,320 --> 00:47:47,080 What is botox? 662 00:47:47,160 --> 00:47:49,480 Botox is applied to the face. How do you apply it to the hair? 663 00:47:49,600 --> 00:47:53,840 Botox repairs hair that is extremely damaged. 664 00:47:54,040 --> 00:47:57,480 Suppose you come to me and say, "Deepak, I want a botox mask." 665 00:47:57,560 --> 00:47:58,720 We don't do it blindly. 666 00:47:58,880 --> 00:48:00,720 We will first understand your problem. 667 00:48:00,800 --> 00:48:02,240 Identification of needs. 668 00:48:02,480 --> 00:48:06,160 So, what is it that will actually treat your problem? 669 00:48:06,360 --> 00:48:07,440 We identify that. 670 00:48:07,560 --> 00:48:10,720 Then we will show you videos. "This is how your hair will look." 671 00:48:10,800 --> 00:48:12,480 If you're comfortable with it, 672 00:48:12,560 --> 00:48:15,640 then we will suggest a treatment whether it is botox or keratin. 673 00:48:15,880 --> 00:48:18,240 Many times, what you suggest might not work for others. 674 00:48:18,320 --> 00:48:21,240 Vineeta says to Namita, "I got botox done. It was great." 675 00:48:21,320 --> 00:48:22,320 "You should try it too." 676 00:48:22,440 --> 00:48:23,240 It doesn't work like that. 677 00:48:23,360 --> 00:48:25,560 What suits Vineeta might not necessarily suit Namita. 678 00:48:25,640 --> 00:48:27,720 Do you apply it externally or inject it? 679 00:48:27,800 --> 00:48:31,400 No. All salon treatments are done with zero skin contact. 680 00:48:32,200 --> 00:48:33,600 The treatments are done on the length, 681 00:48:33,720 --> 00:48:35,320 half an inch from the scalp. 682 00:48:35,400 --> 00:48:37,880 Tell me one thing. What about the investors? 683 00:48:38,680 --> 00:48:40,840 The investors will come on board and teach us something new. 684 00:48:40,960 --> 00:48:43,640 We'll build a team with the funds they bring in. 685 00:48:43,720 --> 00:48:46,120 When my team is ready next month or the month after, 686 00:48:46,280 --> 00:48:49,640 I will sell this keratin product B2B. 687 00:48:49,800 --> 00:48:50,760 How so? 688 00:48:51,000 --> 00:48:52,160 I'll sell to the other salons. 689 00:48:52,240 --> 00:48:54,320 Keratin isn't available in India. We developed it. 690 00:48:54,920 --> 00:48:57,720 We can sell this shampoo online. 691 00:48:57,800 --> 00:49:00,600 Why is this named Agami and not Be U Natural? 692 00:49:00,720 --> 00:49:03,320 My son's name is Agastya and daughter's is Miraya. 693 00:49:03,480 --> 00:49:04,480 Oh! 694 00:49:04,720 --> 00:49:06,240 In this industry, 695 00:49:13,160 --> 00:49:15,800 who have built a relationship with clients, 696 00:49:15,880 --> 00:49:18,480 move to a different salon, 697 00:49:18,640 --> 00:49:20,640 they usually take their clients too. 698 00:49:20,840 --> 00:49:22,480 What's your attrition? 699 00:49:22,600 --> 00:49:23,880 Wonderful question. 700 00:49:23,960 --> 00:49:24,920 - Zero. - Thank you. 701 00:49:27,920 --> 00:49:29,040 I don't believe that. 702 00:49:29,120 --> 00:49:30,760 I am HR... 703 00:49:30,840 --> 00:49:32,600 I am flabbergasted to hear 0%. 704 00:49:32,680 --> 00:49:34,480 I am from HR. I will tell you. 705 00:49:34,560 --> 00:49:36,920 You need to listen to me attentively. 706 00:49:37,000 --> 00:49:37,880 [laughs] 707 00:49:38,000 --> 00:49:40,400 - You said people leave the company. - Yes. 708 00:49:40,520 --> 00:49:41,520 Why is there the process 709 00:49:41,600 --> 00:49:43,320 of orientation and induction in place? 710 00:49:43,480 --> 00:49:45,960 There are weekly review meetings and checks. 711 00:49:46,200 --> 00:49:47,480 This is generic. 712 00:49:47,680 --> 00:49:50,160 Now, let's talk about attrition and switching jobs. 713 00:49:50,280 --> 00:49:52,400 We run a program 714 00:49:52,680 --> 00:49:55,160 - for the underprivileged children of society. - Okay. 715 00:49:55,280 --> 00:49:59,600 They can't pay Rs. 1 to 2 lakhs for make-up or hairdressing courses. 716 00:49:59,680 --> 00:50:02,000 Not only do we teach them free of cost 717 00:50:02,240 --> 00:50:05,360 but we also give them a stipend of Rs. 5,000 a month to learn. 718 00:50:05,480 --> 00:50:07,000 We've taught them the culture. 719 00:50:07,120 --> 00:50:10,760 After learning that, they may leave if they wish to. 720 00:50:10,880 --> 00:50:14,840 Owing to that culture and love and the emotional bond we share, 721 00:50:14,920 --> 00:50:18,160 they will say, "Sir, we want to work with you." 722 00:50:18,240 --> 00:50:19,680 There are many people 723 00:50:19,880 --> 00:50:24,920 who quit if other salons offer them slightly higher salaries. 724 00:50:25,040 --> 00:50:27,720 This is the ground reality. 725 00:50:27,840 --> 00:50:29,480 Nobody stays because of love 726 00:50:29,560 --> 00:50:31,760 or just because you gave them a chance. 727 00:50:31,880 --> 00:50:34,120 So, the 0% attrition you said, 728 00:50:34,440 --> 00:50:36,000 I am not able to buy it. 729 00:50:36,200 --> 00:50:37,200 I agree with you, 730 00:50:46,360 --> 00:50:47,760 but you know succession planning! 731 00:50:47,880 --> 00:50:49,160 - You're amazing. - I believe you. 732 00:50:49,280 --> 00:50:51,600 I believe you. People stay because of love. 733 00:50:51,760 --> 00:50:52,600 Look, ma'am. 734 00:50:52,680 --> 00:50:53,800 There are two kinds of people. 735 00:50:53,880 --> 00:50:57,000 - The skilled and the educated. - Yes. 736 00:50:57,120 --> 00:51:00,840 I might starve to death if I fail to run the business. 737 00:51:00,920 --> 00:51:02,480 But a hairdresser 738 00:51:02,560 --> 00:51:05,040 will take to the streets and give haircuts for Rs. 10 739 00:51:05,120 --> 00:51:06,600 and be able to afford a meal. 740 00:51:07,000 --> 00:51:09,560 I'm talking about skilled labour. They will stay. 741 00:51:09,680 --> 00:51:12,240 So, you give the love and training to skilled labour 742 00:51:12,360 --> 00:51:14,040 and not to the educated ones. 743 00:51:14,120 --> 00:51:15,440 We don't have any. 744 00:51:15,440 --> 00:51:17,680 - When we do, we'll build a program for them also. - Look. 745 00:51:17,920 --> 00:51:20,040 Deepinder has something to ask you. 746 00:51:20,400 --> 00:51:21,680 Poor guy! 747 00:51:21,760 --> 00:51:24,480 - Don't make it up! - Deepinder. 748 00:51:24,560 --> 00:51:25,600 I'm a fan of him. 749 00:51:25,680 --> 00:51:27,240 - I don't want to ask anything. - We all are. 750 00:51:27,400 --> 00:51:29,920 - Nothing. - Deepinder doesn't want to ask you, 751 00:51:30,000 --> 00:51:31,080 so I will. 752 00:51:31,520 --> 00:51:33,880 - Yours isn't a private limited company yet. - Right. 753 00:51:49,280 --> 00:51:50,680 GST or income tax? 754 00:51:50,760 --> 00:51:51,960 Both GST and income tax. 755 00:51:52,040 --> 00:51:53,920 We're completely GST-compliant. 756 00:51:54,040 --> 00:51:57,080 We pay the GST that we owe. 757 00:51:57,160 --> 00:51:59,240 Deepak, I've made my decision. 758 00:52:00,480 --> 00:52:02,560 Don't get investors for now. 759 00:52:02,640 --> 00:52:05,680 Make money. You're already minting money. Enjoy. 760 00:52:05,680 --> 00:52:06,480 I am out. 761 00:52:07,760 --> 00:52:11,920 A salon called Drybar in the US had a similar vision. 762 00:52:12,120 --> 00:52:13,480 They had the same model as you. 763 00:52:13,640 --> 00:52:15,640 Beyond a point, they don't scale. 764 00:52:16,520 --> 00:52:17,960 There is still a dominance 765 00:52:18,040 --> 00:52:21,000 of the local salons owned by neighbourhood aunties. 766 00:52:21,280 --> 00:52:24,920 You share a relationship with them and it is in close proximity. 767 00:52:25,200 --> 00:52:27,760 They even offer services at home. They rule the market. 768 00:52:27,840 --> 00:52:32,120 I know you will make Rs. 50 lakhs from 6 salons, 769 00:52:32,320 --> 00:52:34,280 but to scale to a level 770 00:52:34,360 --> 00:52:36,520 where the investor gets an exit 771 00:52:36,720 --> 00:52:38,680 is what I believe India 772 00:52:38,760 --> 00:52:41,160 and Indian customers are not ready for yet 773 00:52:41,320 --> 00:52:44,360 and for a business model where pricing and own products 774 00:52:44,520 --> 00:52:45,600 are the USP. 775 00:52:45,800 --> 00:52:47,080 And for that reason, I am out, 776 00:52:47,080 --> 00:52:50,320 but I loved your energy level. 777 00:52:50,440 --> 00:52:52,680 The way you said, "I don't know the gross profit," 778 00:52:52,760 --> 00:52:54,400 "but I'm aware of succession planning." 779 00:52:54,520 --> 00:52:55,880 Beautiful energy. 780 00:52:56,000 --> 00:52:56,920 Keep it up. 781 00:52:58,200 --> 00:53:01,200 If you are the only manufacturer of keratin, 782 00:53:01,480 --> 00:53:03,360 why don't you just sell keratin 783 00:53:03,440 --> 00:53:05,640 and build a big brand around it? 784 00:53:06,640 --> 00:53:09,640 Do away with the daily hassles of running a salon 785 00:53:09,800 --> 00:53:11,800 and do this instead. 786 00:53:11,960 --> 00:53:15,280 Lakmé doesn't run salons with the intent of making revenue. 787 00:53:15,480 --> 00:53:16,880 They run salons 788 00:53:17,000 --> 00:53:19,160 because their products over there help to build credibility. 789 00:53:19,280 --> 00:53:21,960 If I set out to sell Agami Professional without salons, 790 00:53:22,040 --> 00:53:22,880 it won't sell. 791 00:53:23,040 --> 00:53:25,560 When so many consumers review the product 792 00:53:25,640 --> 00:53:28,880 and vouch for Agami Keratin, it becomes easier to sell. 793 00:53:28,960 --> 00:53:30,400 - No, wrong! - That's not true. 794 00:53:30,520 --> 00:53:34,960 Lakmé doesn't even get 1% business from their salons. 795 00:53:35,080 --> 00:53:36,280 They don't do sampling there. 796 00:53:36,400 --> 00:53:37,320 It's a hair business. 797 00:53:37,440 --> 00:53:39,480 Their business is make-up and skin. 798 00:53:39,600 --> 00:53:40,800 They are different companies 799 00:53:40,880 --> 00:53:42,160 and there's no connection between them. 800 00:53:47,360 --> 00:53:49,360 You're focused on culture. 801 00:53:49,440 --> 00:53:50,560 Here's my advice. 802 00:53:50,680 --> 00:53:52,800 Take debt from friends and family. 803 00:53:52,960 --> 00:53:55,320 Your cash flow per outlet is good. 804 00:53:55,440 --> 00:53:56,920 You could pay the debt off. 805 00:53:57,120 --> 00:53:58,480 You will get to a certain scale. 806 00:53:58,560 --> 00:54:00,360 Establish 20 to 30 outlets. 807 00:54:00,760 --> 00:54:02,880 - Then approach investors. - Yes. 808 00:54:02,960 --> 00:54:04,720 It's too early right now. 809 00:54:05,040 --> 00:54:06,120 Yes? I'm out. 810 00:54:08,120 --> 00:54:10,080 As a founder, you're phenomenal. 811 00:54:10,080 --> 00:54:11,880 You know how to run a business. 812 00:54:11,960 --> 00:54:15,080 You launched your own products to cut down on costs. 813 00:54:15,200 --> 00:54:18,400 This is long-term and strategic thinking. 814 00:54:18,520 --> 00:54:20,760 You are exceptional in all those aspects. 815 00:54:20,840 --> 00:54:24,560 I am out because your business is not as big 816 00:54:24,640 --> 00:54:26,960 for all the things that you mentioned. 817 00:54:27,040 --> 00:54:30,840 The investor lacks clarity given the model you've built. 818 00:54:30,920 --> 00:54:32,160 Whether you will crack it 819 00:54:32,240 --> 00:54:35,760 and go from 6 to 600 outlets or not 820 00:54:36,040 --> 00:54:38,720 is not clear as of now. 821 00:54:38,880 --> 00:54:40,360 For that reason, I am out. 822 00:54:42,000 --> 00:54:44,280 Let us suppose 823 00:54:44,360 --> 00:54:47,880 you are making an approximate profit of Rs. 1 lakh per salon. 824 00:54:47,960 --> 00:54:49,840 If we were to extrapolate, 825 00:54:50,280 --> 00:54:54,640 you'll need to open 100 salons to get to a revenue of Rs. 1 crore. 826 00:54:55,760 --> 00:54:58,600 Going from 0 to 6 827 00:54:58,840 --> 00:55:01,160 and 6 to 100 is a whole new ballgame. 828 00:55:01,320 --> 00:55:04,600 You won't be able to maintain the profitability by any means. 829 00:55:04,680 --> 00:55:08,320 I don't quite understand how the investor will make money. 830 00:55:08,440 --> 00:55:09,720 That's why, I am out too, 831 00:55:10,120 --> 00:55:11,440 but good luck to you. 832 00:55:12,800 --> 00:55:14,440 It was lovely meeting you. 833 00:55:14,520 --> 00:55:16,960 All the Sharks are out. Thank you so much. All the best. 834 00:55:17,040 --> 00:55:19,640 - Bye. - I have a suggestion. Rename your salon as Agami. 835 00:55:25,040 --> 00:55:26,840 - Thank you, Sharks. - Thank you. Bye. 836 00:55:27,760 --> 00:55:28,640 [music fades]