[music playing]
[theme music playing]
[theme music concludes]
Jay and I come from a family
whose last five generations have been in the business of tea.
We have seen our customers' needs changing.
In fact, like most youngsters,
Jay and I do not connect with conventional tea much.
Our generation has different demands altogether.
We want tea which tastes good,
is healthy,
has a lot of variety, takes no time to brew
and doesn't require much effort to brew either.
We bring an all-in-one solution to these problems.
- Oh. - So, Sharks, will you do this with us?
- Give me a C! - C!
- Give me a U! - U!
- Let's do a P! - P.
- Give me a J! - J!
- Give me an I! - I!
- So, Cup-Ji. - Cup-Ji.
[pleasant music playing]
At Cup-Ji, we've made paper cups
that have green tea at the bottom.
Every cup of Cup-Ji contains less than 8 calories
or having a good time in a beach cafe in Rameswaram,
Cup-Ji should be available everywhere.
- Or Cup-Ji? - Or Cup-Ji?
[Sharks chuckle]
Will you offer us tea?
- Yes. - Sure.
Which one's good?
The taste for your personality is coming soon.
- Oh, my! - Till then, you can just look at the packaging.
You're getting us tea to drink.
- Sure. - The tastemaker is coming.
This is nice. Let me see this.
I'll take the Paan.
- Amazing. - Interesting.
Smells so good.
Wow! The Paan smell is crazy.
- Great idea though. - It's a great idea.
- What flavour is it? - Chatkara.
- Wow. - I just find it cool.
Ma'am, for you, we have Kokam.
- This one? - Yes.
- For you, we've got Pomegranate. - Jasmine.
- Do you also have black tea? - Yes, sir.
For you, we have Caramel Black Tea
- which is this cup. - Oh, nice. I love it.
Sir, Paan Green Tea for you.
Thank you.
Does it contain premixed sugar?
- No... - This is very sweet.
- So, that option is available too. - Yes.
Look, I enjoyed the taste of it. It is good.
It's lovely.
- like green tea. - Yes. That's the vision.
- Absolutely. - Fantastic.
What's the price of one teabag of Lipton Green Tea?
Hence, the smallest particles of green tea go in it.
There is no scope to put real ingredients either.
What do you mean by real ingredients?
Take for instance our Rose Cardamom cup, which you have.
If you tear it, you will find dried rose petals,
cardamom husk and fennel seeds.
So, the bold and desi flavour that you get
comes from brewing real ingredients.
When you dispose of it, it will drip everywhere.
To bring convenience and consistency,
we have put them into paper cups.
Coming to your USP that is your sachet.
The barrier to entry is very low.
It's very easy to copy, right?
My father spent the last 25 years into the export of tea.
- You know each other... - Since childhood.
No, it's a funny story.
Our family is the same till the fifth generation.
Otherwise, we're uncle and nephew.
- Oh, really! - I'm the nephew at 27 years old
and he's the uncle at 24 years old.
- Wow! - What!
Like a cousin uncle, you mean?
- Yes. - Okay. Got it.
- I was waiting for you... - It has no connection to the packaging.
Then why aren't you making better-flavoured
and tastier green tea?
Why are you making this?
Very simple.
We made these blends.
We offered them to people at tea stalls, shops
and even in gardens.
People loved our blends,
but when they took it home and made it,
they did not have the same experience.
Why? When they made it at home...
The quantity.
Exactly.
They didn't know how much to put
or what the measured amount of green tea was.
Whether it should be consumed in a 130 ml mug or bigger
was their confusion.
I noticed that everywhere, the print on the box
is in Arabic for Middle Eastern countries.
we were nominated as the most innovative beverage.
Along with that, we were the only Indian company to get there.
During that time,
we got our first full-container load order
- for Saudi Arabia. - Wow.
We sent a second container there too.
We got an order for Dubai and Australia from there as well.
And we're also shipping the next container to Japan.
- Very good. - Very interesting.
What is your GTM strategy?
The first is export.
We'll need to spend Rs. 20 for every cup.
When we sell to offices,
we sell them at a price point which is quite convenient
for the admin to put to use.
This price point gives us a dual advantage.
When you provide beverages for your employees free of cost,
they'll obviously have it.
If they like it, they will buy for their families.
They would buy from Amazon or the website for their families.
That builds an ecosystem for us.
Second in the institutional sales are key channels
like spas, salons, hospitals and college canteens.
They are great selling points for us
to provide tasty and innovative green tea to people.
When we tested this with the younger generation,
they absolutely loved it.
We've even gotten repeat orders from such places.
Give us your sales numbers. We don't have an idea of it yet.
In total, we have done sales of Rs. 62 lakhs
- They're not recurring. - It fluctuates slightly.
- It is sporadic. - Yes.
Institutional sales and D2C must be a small margin.
What about the rest?
Promotional gifting.
- So, most of your business is exports and gifting. - Yes, sir.
I can understand if consumers in India are ordering in bulk.
That sales has not increased, it is very low.
You have to burn cash in order to be a D2C brand.
Have you made a profit in a revenue of Rs. 62 lakhs?
Our burn is around Rs. 7 lakhs.
Is it Rs. 7 lakhs on Rs. 62 lakhs or per month?
- On Rs. 62 lakhs. - Rs. 62 lakhs.
What are you solving?
The branding is pretty. 10 on 10 marks for that,
but quite inconvenient in terms of storage. I would not keep...
50 to 100 teabags take up this much space.
I wouldn't be able to keep so many cups on the table for sure.
It isn't an easy-to-use product for that reason.
Secondly, your pricing.
You should rework your strategy.
it's way too expensive.
I don't see the possibility of making a mass customer base.
I am out, the rest of the Sharks remain.
So, Jay and Aakash,
in my view, your strength,
which is your family background
and your understanding of blends and exports,
can help you build a business of green tea.
Right now, your obsession towards the cup,
including the name,
that won't let you do that.
So, I am out for now.
I loved the effort and the thought
and the innovative thinking that you've put into this.
So, good luck.
What are the current online sales of green tea?
It's a Rs. 150-crore market.
A Rs. 100-crore market can be built within the next five years surely.
I'm out.
You have quite low aspirations.
Rs. 50-crore sales in three years isn't a big deal.
Your aspiration should have been to do Rs. 50 crores a month.
Sir, that is without you.
- If you come on board, we will do better. - [laughter]
Sir, we're really passionate about the product
and we know we've built a strong product.
There's no doubt about it.
That's a lot of work, you see.
Unfortunately, I am out.
I'm also out.
The issue is, like I told you, there is no barrier to entry
Secondly, exporting green tea from India is difficult
- because India is not known for green tea. - Yes.
The green tea that is popular and most consumed
is that of China and Japan, right?
You will need to create a market there.
This is a novelty item in D2C.
People might find it interesting for gifting.
When I saw it the first time, I thought it was very fascinating.
Ultimately, this won't form a habit, right?
I think you don't have the right product-market fit yet.
That's the reason, I'm out as well.
I think you need to do a little more work.
- Good luck, guys. - Okay?
- Bye. - Good luck.
- Prove all of us wrong by building something big. - Yes.
- All the best, guys. - Thank you.
Keep smiling.
[sad music playing]
[theme music playing]
[theme music concludes]
Sharks, when we wear clothes that are rough and cause irritation,
we get annoyed.
Take this for instance.
It makes a bold fashion statement,
but irritates the skin to no end!
I have the urge to take it off,
go back home
and change into a pair of comfortable pyjamas.
Imagine how babies feel
when we as adults can get so irritated.
A thousand different chemicals are used to make clothing for babies
that are available in the market.
These chemicals
could cause a lot of damage to their skin.
These very chemicals
also make their products
extremely uncomfortable to wear.
Sharks, look at this innocent baby.
Isn't it cute and happy?
If babies are happy, then so are their parents.
Sharks, we're here to make everyone happy
with A Toddler Thing.
Our vision is to provide safe, comfortable,
and affordable products to parents.
- Thank you! - Thank you!
I stayed for four years in Chennai.
I used to say... [speaking in regional language]
Please excuse us.
Though I speak in Hindi, I'm not perfect.
Your Hindi is better than her Tamil.
Like 100 million times better!
[laughing]
So don't worry.
How do you two know each other? And how did you get this idea?
I was pursuing engineering.
I didn't like engineering but I made friends.
In which college did you two meet?
Then I researched.
Of course, I like fashion
and I like to give my baby the best.
Then I came to know
that this industry is unregulated.
I wanted to solve this issue
so I contacted Ashwanth
because I felt he could help me start a business.
[laughing]
We met through the entrepreneurial cell in our college.
So I went to him saying,
"Ashwanth, this is my idea. How should we go about it?"
- So... - Actually,
I went to the US to do my Masters after completing engineering.
I completed my specialisation in data analytics and marketing.
- Which college? - Pace University, New York.
because of health issues.
I was at the lowest point of my life back then.
And then Swathi approached me with this idea.
I liked her idea.
Then I told her,
"I'll help you set up the business and the technical aspect
for six months." And...
And, Sharks, six years later, we are in front of you
in Shark Tank. So...
Yes!
Did you always want to be an entrepreneur?
Or are you from a business family?
I got married into a family having a textile background.
They are from Tiruppur.
I developed an interest in textiles because of that.
When I told my family, "I'll start a business in textiles",
they said, "Okay. Open a boutique.
It would be great!"
[laughing] "That would be perfect."
Which Bollywood film did you watch?
Exactly!
[giggling]
Are you always so energetic?
- Yes, a little bit. - Very much!
Look.
- He spoke, finally. - I face it daily!
He uttered a few words, finally.
So I was like, "No. I must do something different."
A product caught my eye
and back then it wasn't available in India.
I'm talking about cloth diapers.
I literally conceived both babies at the same time.
- A Toddler Thing... - Wow!
I have a five-year-old daughter, Arudha.
I raised both things at almost the same time.
I want to know the number of your SKUs.
- "28!" Okay. - Yes.
They are divided into Diapering Essentials, Muslin Essentials
and Baby Clothing.
Under Diapering Essentials, we make cloth diapers.
We also have Ultra Undies which are padded underwear.
We make Training Pants and nappies too.
Under the Muslin category, we have swaddles,
blankets and other such things.
Vineeta, you are holding a soft fabric made of aloe vera.
Wow! I love it! It's lovely!
- The packaging looks cute. - Thank you!
Very nice.
Please tell us your revenue split in terms of percentage.
- It's so soft. - Thank you!
Do you make every item with muslin and types of muslin?
- Yes! Yes! - Yes, we use muslin and types of muslin.
Even the diapers?
Mostly, cloth diapers are made with cotton.
- We have that too. - We also have cotton diapers.
Those are traditional 'langots'.
- Yes! - Yes.
So those are made with muslin.
Please tell us the advantages of muslin and aloe vera clothing.
We also make muslin ethnic wear.
Very interesting.
Swathi, I must compliment you
on the design element.
Your detailing, these pleats
and the feel of the material scream high fashion!
- Thank you! - You aren't making substandard material for kids.
So, well done.
Who is the designer? The brain behind this.
- It's a beautiful design. - Thank you so much!
All the creative work is done by me and my team.
- Okay. - So when you mention
that clothes are made with aloe vera or some other material,
does it affect the buying behaviour?
Definitely! You know, people understand its value nowadays.
Is it an urban and affluent phenomenon
or a common one?
with three machines and two tailors.
Gradually, we invested more money and started expanding.
Currently, we have 40 machines.
- So you are the CEO. - Yes!
What is the equity split?
She gave you the idea
but you have double her holding.
Amazing!
- No. - No.
I couldn't contribute much in capital
so he invested in me,
my idea, and my brand.
- Oh, nice! - Nice!
- Well done! - I was emptied!
Can you share the sales figures?
Gross margin is calculated on the net revenue
and not on unit economics.
Post-funding, we were pushing ourselves.
When did you get the funding?
During November-December.
Your business was smooth and profitable before funding.
- It was profitable. - After you got funding,
you started burning. Was it because of the investor pressure?
- Growth... - Scalability.
We started doing what we wanted to do for the last two years
after we received the money.
You shared your figures until March.
- Yes. - Please tell us the last month's too.
The first thing is that we focussed on our infrastructure.
While doing infrastructural changes,
you shouldn't bring down your business
from Rs. 75 lakhs to Rs. 40 lakhs.
- Of course. - I understand that CAC is going out of control.
You pause, figure out the SKUs and the infrastructure
and then you restart with a lower CAC.
Then the business scales up and it makes sense.
These figures don't make sense.
We restarted our business only in August.
We started doing a lot of marketing
and pushing forward only in August.
We wanted to focus after rebranding...
- Oh! So you wanted to do rebranding. - Rebranding!
- Website... - You are losing Rs. 5 lakhs per month.
- Yes. - How much do you have in your bank account?
Right now, we have Rs. 80 lakhs in our account.
- Yes. - Your focus is to have a profitable business.
I hail from a fourth-generation business family.
- I can't sleep without profitability. - Very good.
My grandfather was 75 years old.
- He is 82 years old now. - Outstanding.
He understands VC investment and angel funding.
- Wow! - Wow!
Trust me, I just need an Excel sheet.
Use VLOOKUP function and do everything.
He sits with me for half an hour
and he'll tell me if I'm on the right path or not.
Very nice. And your dad?
They are all into jewellery manufacturing.
What are your sales channels? Websites or marketplaces?
Please share the maths. Your AOV and the other things.
[laughing] Because he'd have asked 18 follow-up questions.
You two are brimming with energy.
You are focused on profitability.
Just stick to it as it's an advantage you have.
I'm not interested in this category,
so unfortunately, I'll have to step out.
I'm sorry, but I'm out.
Thank you, Aman. Thank you so much.
I love the sustainability part and I'm a huge fan of your designs.
However, as an investor,
we have a vision of a scale to get an exit.
And when you said that a rebranding exercise
dipped your sales from Rs. 75 lakhs to Rs. 50 lakhs,
it made me nervous.
Right? Because it's a huge drop.
That drop has been there for three months.
You couldn't reach Rs. 75 lakhs readily again.
- All three categories have tough competition. - Right.
I don't see an exit as an investor.
For that reason, I'm out
but brilliant products. Congratulations!
Thank you so much.
Do you've an idea of the percentage of cloth in the total diaper market?
Probably 5%-6% right now.
How many crores is 5%?
- So it comes to Rs. 1,200 crores. - Yes!
If you get Rs. 80 lakhs, how big a business will you build?
By when? And how?
The revenue from the marketplaces is 20% right now.
We'll focus only on top-of-the-line products.
We'll make sure that the top-of-the-line products
contribute to 80% of our marketplace sales.
make me think you'll win eventually.
If your product is good, it finds its way eventually.
I'll make you an offer.
I'll give Rs. 40 lakhs against equity.
I want 2% equity.
- I'll give you Rs. 40 lakhs for the same. - Gosh!
And Rs. 40 lakhs in royalty format
only when you are profitable.
I'll take 3% of sales
at a minimum threshold. You have to pay only if you get a 7% profit.
I can't find the Hindi equivalent. It's "earnest".
You two are really earnest, sincere,
and honest founders. I love that.
Having said that, this is a niche market.
We can give a valuation of up to Rs. 70 crores.
Beyond that, there will be scalability issues.
The offer that I wanted to give...
We discussed it. It was in a much lesser range
than what Amit is offering. And I think it's a very good deal.
I don't even want to
put that offer out.
- And best of luck! I am out. - Thank you!
Guys, it was a pleasure to meet you.
You have the right intent.
The weakness is that
you are not clear about how you will scale.
I asked you about your strategy.
You gave me a checklist.
You want to do everything.
Right? So you haven't figured out as yet about
what steps you need to take to grow your business.
The market is crowded.
But we were thinking that this could be a niche business.
In fact, we were going to offer you. I was thinking Rs. 80 lakhs for 10%.
But Amit changed the calculation.
So, good luck, guys. I am out.
Tell us your decision.
[suspenseful music playing]
- Amit! Deal done! - Amit! It's a deal.
- Thank you so much! - Thank you.
[camera clicks]
- All the best, guys! - Thank you!
Good luck, guys! All the best!
[music fades]
[theme music playing]
Sharks, nowadays, a marriage might not last forever.
However, your bond with neck pain and back pain
is everlasting.
This is the problem we face nowadays.
Sharks, did you know
that chronic pain, also called musculoskeletal disorder,
Such as back pain, neck pain,
arthritis, and spondylitis.
Over 170 crore people worldwide
suffer from musculoskeletal disorder.
Physiotherapy lacks standardization.
If you don't do yoga properly, it can backfire.
To solve this problem,
we have introduced FlexifyMe platform.
It is a chronic pain management platform.
FlexifyMe is a chronic pain management platform
to take the customer's details.
The practice is delivered through a combination
to simplify chronic pain management,
ensuring nobody has to endure lifelong chronic pain.
to show you the user journey
and how this platform works.
If you guys don't mind, can we just show you the video?
- Yes. - Please go ahead.
And these are the different kinds of pain that we treat.
Neck pain, lower back, wrist,
hand, knee and ankle pain.
Those who suffer from pain visit our site
and then they fill up a form for a free demo assessment session.
This is a patented AI technology
When the dots turn purple,
it means you are exercising properly.
And in real-time, a score is associated with you.
It also explains which body parts are responsible
for the pain that you are feeling.
And ultimately, there is a plan
which is a weekly breakdown plan.
That includes how many days you have to do yoga, physiotherapy,
and self-practice.
After that, the patient
comes on board on our platform.
Up until now, everything was free of cost.
And then the onboarding of the patient starts.
It's possible that my body isn't flexible,
that's why I can't exercise with the right posture,
versus I can't exercise in the right posture because I am in pain.
- Right! - How does this tool determine
whether I am inflexible or if I'm in pain?
When you are on our platform,
we ask you multiple questions. Are you in pain?
When did it start?
After asking questions, these exercises are determined.
Based on the information we collect,
we map you either with an orthopaedic
or we also map you with a physiotherapist.
How many orthos and physios associated with you
can validate this?
I have back pain, just take me to an ortho.
What was the need for this gimmick?
We brought orthopaedic doctors
to our advisory board. They explained to us
which exercises
are used for which muscles and how.
When we started feeding that into our engine,
the engine gradually started to mature.
The idea is we are also putting the self-practice plan.
If the pain is bearable
and they prefer not to have a personal session,
our entire program
will be delivered as self-practice.
That's where the AI engine will play
a major role in giving you accurate exercises.
Let me talk to you as a normal consumer.
Sure.
If I am in pain,
I will never use technology. I will visit a doctor instead.
The doctor will never suggest me to use FlexifyMe.
How do you acquire consumers?
We do it through two channels.
First is Google.
When people suffer from pain,
they search for it on Google.
I believe in you this time and let's say, doing the right thing.
You have good sales I believe
to ask for a valuation of Rs. 50 crores.
In the last 12 months,
Your sale is around Rs. 4 crores. It's not much.
Tell us about growth. How much is your month-on-month growth?
A year ago, when we started,
our revenue was around Rs.3-4 lakhs.
Now, it is Rs. 32 lakhs, so month-on-month, we approximately
Firstly, what are your roles?
I am handling technology.
- You have a background in technology. - Yes.
- And you? - I handle sales.
Second, what is the competition in this area?
There are a few companies that have started in India.
Your physio something.
In the US, there are
Sword Health, Kaia Health. They are multi-billion dollar companies.
What is the pricing?
We have a subscription plan.
The average cost of 6 months is Rs. 16,000.
They get 25 live sessions.
How do you calculate this?
We charge around Rs. 800.
who work just with us.
Your technology got me really excited at the start.
You need a person to train now. How will it scale?
What is the need for this? I am still not clear.
That's a good question. That's why we introduced technology.
Our journey began with one-on-one sessions.
Later, technology came into play, followed by the introduction of AI.
Now, the idea is that the technology will scale
and our focus will be more on self-practice.
How many customers have availed your paid services last month?
Every month, approximately 190 to 200 new users are added.
No!
As I said, the technology is evolving.
We have a small library.
- It is small. - Our library only has 70 videos.
The funding round is ongoing. We are just closing our seed round.
With the help of that, we will create a library of 1,200 videos.
Share the valuation of your seed round.
- How much are you closing it at? - Tell us.
- Amit and Manjeet, I have an offer. - Wow!
I am well-versed in your business.
- And the need for physios will only increase... - Exactly!
With the terrible lifestyle we have.
But I don't think Rs. 38 crores is a fair valuation.
Your round hasn't closed yet.
That's why I am giving you a lower valuation.
Because I think you can accommodate me.
Where you bring me in before that closes.
I've done it in the past.
Rs. 50 lakhs for 2.5%.
That is a Rs. 20 crores valuation.
Rs. 50 lakhs as debt
So... You have received a good offer.
So, I will stay out of it.
- But people genuinely face this problem. - Big problem.
All the best!
But it is mostly unorganised.
People have started a chain offline.
They had to shut it down.
People also started this online.
Those are the reasons I am out. Good luck!
Thank you!
The challenge in this is that in India, when people are in pain,
they don't want to put in the work.
So, there has to be a cultural shift.
Also, it will be necessary
And as a minority shareholder, I cannot add much value.
So, for that reason, I am out.
I disagree with everyone.
They don't understand the market.
They've never visited physiotherapy centres and seen how crowded it is.
My point is, I understand your business.
And a great man once said,
I am the boss of this market.
[laughing heartily]
Namita, don't rush. I am still talking.
What is the company going to shape up like?
Our gross margin will be close to about 70%.
And how much is the CAC? How much are you spending to
- acquire a client? - Our CAC is Rs. 4500.
- It almost doubles. - More margin?
- Yes! - Exactly!
In the next 12 months,
Great! I'm satisfied with it so far. They have the potential to scale.
I think it is more of a technology company than a pharma company.
- Wrong! Networks matter! - Oh!
[suspenseful music playing]
Both of you are into tech. You need me, not a techie.
We need to create awareness of this.
Even the most intelligent individuals have misconceptions.
Just imagine, an average person may have numerous misconceptions.
This needs a lot of awareness.
This is where I can help you, because this is what I am into.
And I am going solo.
I don't share healthcare deals.
Even I am going solo. I don't want to share it with you.
- Oh my! Not bad! I like it. - This is going to be fun.
I believe I can help you with customer acquisition.
She mentioned that you need specialists. I agree, but
we don't need thousands of them. Networking won't be helpful.
It's a technology company and only needs back-end operations.
I don't want you to
ask me to take a down round from what you did last time.
Oh my! Nice.
I will invest 50 lakhs in equity for 1%.
I am giving you what you asked for.
Namita, you have expertise.
I will revise my offer.
Rs. 50 lakhs for 1.5%.
And the other Rs. 50 lakhs in debt
Who will they choose?
Of course, me!
They can also choose Amit.
I don't think they need you.
- Are you kidding me? - I am serious!
How will you help them?
Let's find out what happens in an exciting situation.
Welcome!
We would like to thank both of you for the offer.
We really want your expertise.
But at the same time, acquiring customers is also important.
To be fair to our past investors,
we cannot go lower than that.
So, our counter offer is,
- We don't want to do this together. - Pick one!
I hope you make the right choice.
It's a tech company. Customer acquisition will play a big part.
What do you want to do?
I will give you a final offer.
Rs. 50 lakhs for 1.32%.
Which is what you want.
And Rs. 50 lakhs in debt
Okay! Amit, what is your response?
I have the same response. I am giving you what you asked for.
Rs. 50 lakhs for 1.32%.
- We'll make this big. I understand this market. - Definitely!
This will grow.
Congratulations, guys! Very happy for you.
[upbeat music playing]
Friends, welcome to Ask The Shark.
These are your questions, so you will get the answer.
I am just a medium. We have a Shark here.
We have someone who is a reservoir of information.
COO and founder of Shaadi.com, Mr. Anupam Mittal.
- Sir, welcome! Thank you so much! - Thank you!
- Thank you so much for giving us your valuable time, sir. - Anytime!
Sir, Karan Gill from Chandigarh.
He writes, 'Hello, Anupam. I like your style.
You are my style icon.
and liquidation preference.
- So, mainly around the commercial agreement. - Okay.
And the legal terms
like governance rights, board seats,
- if there is a dispute, how will it be resolved? - Understood.
All that is included in a shareholder agreement.