[theme music playing]
In this journey of Shark Tank India,
we haven't just provided new investment opportunities
to pitchers and Sharks
but also brought business to every home.
You must have seen Season 3's impact trend on social media.
Be it Aman Gupta's and Cinnamon Kitchen's Priyasha's
playful banter.
I still like you.
Don't intimidate me like that.
[laughing]
Or be it new Shark Deepinder's keen observation.
Why do you have a phone number with nine digits instead of ten?
This season, in this Tank
there were a total of 12 Sharks.
50 episodes, 150 pitches.
There is a boss in every industry.
And I am the boss in this industry.
[laughing]
With this hearing solution,
even those who are deaf
can hear without having to go through surgery.
I am impressed. Very good innovation.
Wow! Well done!
More than 100 offers.
What should we do? Should we close the deal?
- Deal done. - All right!
After more than Rs. 70 crore investments,
season 3 has finally ended.
But a few pitches are pending, host!
I mean, friends. I am the host.
Gateway To Shark Tank India!
Where you will get one more chance
to present their brilliant businesses to Sharks.
Smart Mop is a smart household cleaning device.
It will replace your old mop at home.
Indians need a mop 2.0.
That's right!
Lea Clothing is a fashion brand
which celebrates women of every size and shape.
- How do both of you know each other? - Mother-daughter!
- Oh, really? - I can't believe it.
Renting's first-ever marketplace ultimate destination.
Is real estate your biggest category?
- No! - No?
We have come to you with a small budget film.
The name of the film is '$Krishnaram.'
- Will he be the hero... - The hero is 70 years old.
[laughing]
He can be your hero's son!
Let's start our special episode.
Gateway To Shark Tank India.
Co-presented by ACKO Insurance and PokerBaazi.
Co-powered by upGrad.
Banking partner IDFC First Bank.
ICICI Direct and Sensodyne.
[theme music playing]
Hello, Sharks! My name is Mehul.
One fine day, we were sitting by the college fountain and discussing
what to do as a part of our engineering project.
We thought of doing something in space-tech or renewable energy.
We should do something big
that will make our parents proud.
And that is when my mom called.
And she said, 'Son, bring a mop'
'on your way back home.'
Sharks, how could I tell my mom
that we are talking about space tech
and you are asking me to bring a mop?
But at that moment, we realised
that we are talking about serious things,
but we were still using the same old mop.
- Indians also need a mop 2.0. - That's right!
Because using the mop
wastes water, energy, and efficiency.
Smart mop is a smart household cleaning device
that will replace your old mop at home.
Sharks, if you've noticed, the innovations made
were either traditional, conventional mops
or expensive technology.
Our smart mop bridges the gap
between technology and affordability.
Smart mop has adaptive technology
to make such unique inventions
and products for the world by manufacturing them in India.
For that, our ask is Rs. 15 lakhs for 1% equity in our company.
- All right! - Amazing!
Sharks, if we have your permission,
- we would like to show a demo. - Would you like to try, Anupam?
Demo?
If you've seen all our seasons,
Anupam is usually the most enthusiastic Shark
- for demo. - Should I use the mop?
- Yes, sir. - Let's do it!
Drop the coffee thoroughly.
And just for fun, we will also make it a bit dirty.
Please make it as dirty as you can.
[comical music playing]
This is an extra button that gives out more water.
- So, you don't have to press it. - Okay.
The device understands
- when water needs to be sprayed out. - Understood.
As you can see,
Mr. Anupam is not pressing any button on the device.
Sharks, there are some sensors in it
which are detecting his movements.
And based on that,
- Is the water spraying automatically? - Yes.
What is this button for then?
- In case there is a hard stain. - If there is a hard stain.
- If you need extra water. - If you need more water.
So, it is fairly cleaner.
It is nice. It's pretty good.
I will come to the features now.
There is a 500ml water tank.
You can add liquid phenyl or any liquid you want.
You can clean approximately 1300 sq ft with 500 ml.
Let's assume your average 2 BHK house.
If you are in Mumbai, then 3 BHK house.
You can clean that much space.
It has a microfiber cloth
you can use for cleaning.
It is detachable.
You can detach it after using it.
Is your mom using it?
- Yes! - What is her feedback?
Initially, she was hesitant.
She was not sure whether she would be able to use it.
But after a few days, I took it from home
without informing her.
She called me and scolded me
for taking it away because she was using it.
- Wow! - We realised she didn't want to use a traditional mop.
She started telling her friends about it.
I hope your mom never asks you to make a headphone.
[laughing]
Instead of space tech, you started a mop company.
Renewable... Yes! We shifted from that idea.
We completed our education at National Institute of Engineering.
This college is in Mysuru.
What did you do after completing your education?
I got a placement from college,
TheMathCompany. Walmart Health & Wellness was my client.
I performed data analysis for them.
We worked for them for a year
so that we could save
and invest our money to create this device.
We received a grant and we jumped into this.
- We were determined to make this. - How much grant did you receive?
Rs. 23 lakhs.
- Is that all that you raised? - Yes!
- When was this? - 18 months ago.
Is this still a prototype?
No! This is not a prototype.
We have tested this product.
We are building this in our lab on our own
because orders were coming in.
Our team was excited.
Let's just deliver and understand what feedback people are giving.
We tweaked a sensor to tailor it specifically to our needs.
We have filed a patent.
And everything that you see is made in our lab.
- Lovely! - Indigenous 3D printed the PCB's.
- It's all made in India. - That might make it expensive.
I didn't sense that.
It might be happening automatically.
But in this
and regular mop... Forget the mop cloth.
In every household, including my house,
- people are using mops. It has the same bottom. - Yes.
That does the same thing.
It is barely any different. So, what am I missing?
If you mop every day. Spray plunger...
When you use that, you have a bucket to carry around.
That's a mechanical effort.
You said that you didn't feel anything.
That's my point.
- It's a seamless effort that you are putting in. - This needs effort.
The mop is heavy.
Ultimately, I am putting in effort.
The weight is 2.2 kg.
And it is a lot. Because we've 3D printed
what you can see here.
It will weigh lighter if we use ABS plastic.
Microfiber is not used extensively in India.
It is used in the US and Japan.
How often do we need to clean and change microfiber?
You can wash it after every use.
Can it clean typical apartments thoroughly?
Because you can see the dirt in the bucket while cleaning.
- There is hair in it as well. - Yeah!
We tested our product in 30 houses.
We chose a house where construction is taking place,
an apartment where the dust load is less
and I used it in my house which is a normal-sized house.
We also tested it in a bungalow.
It cleaned all the houses easily.
Our users started sweeping their houses less.
They mentioned that the effectiveness of microfiber is such
that it even draws in tiny dust particles during sweeping.
But why do 90% of people prefer using a mop cloth?
Why are they not switching to mops?
The spin mops exploded after the pandemic.
- Yes, a lot of them adopted that. - Yes.
Are you suggesting that people had to clean the house by themselves,
and people are not particularly concerned about making
- their aid's help easier. - Yes!
Out of 30 days,
your maid will not come to work for 5-6 days.
So, when they have to clean,
they need something which is convenient.
And they are willing to pay that premium.
How much will the price drop in retail
- when you implement it on a larger scale? - Rs. 3,000.
Won't it go anywhere below Rs. 3000?
We can bring it down to Rs. 2,500.
It is 3X-4X.
When the price is doubled,
that is for some value addition.
You keep mentioning that this is a smart mop.
I have done this in the US.
You press a button and it sprays water.
So, you press the button. Is this needed?
You mentioned the US.
Americans mentioned this to us at the Bengaluru Tech Summit
that they liked it because they use Swiffer.
This microfiber also has to be replaced, right?
Every six months.
Can you imagine... Just like Vineeta mentioned.
You have to clean the hair stuck on it
and then put it back.
Do you think microfiber
will be washed and reused for six months?
In an Indian household
where there is a lot of dust and dirt?
That's a very good question.
We received feedback from people.
They mentioned their desire of not wanting to clean the cloth.
That's why we are making a cleaning station
- which... - Oh my! Will you make a cleaning station
- for the microfiber? - Yes.
A small cleaning station where you can dock it.
Oh my!
What is the sensor doing? Why did you install a sensor?
- Bro, tell me one thing! - I...
- I have... - Why do you need area coverage?
- Because... - It is not moving on its own like Roomba.
- So... - Someone is guiding it.
Yes! Area is very important
because microfiber must operate on consistent wetness.
If the microfiber is 10 grams
it must retain 16 grams of water.
If it's more than that,
it will be swampy and your place will be messy.
You are really smart boys. You are only 24.
But my strong advice is that you should discontinue this
and use your engineering skills in something else.
I will explain why.
Number one, there is nothing smart about this mop.
It sprays water and measures the area covered through sensors.
There is no real value addition for double the price.
Secondly, trust me, with so much dirt
in Indian households, microfiber...
If you make a cleaning station, that's an additional expense.
That will be problematic. You have not thought it through.
Thirdly, targetting the household or TAM...
Right?
Other than COVID,
new, or value addition to warrant the name 'smart'.
I am out.
Please re-think whether you should continue this or not.
I want to come back to that sensor thing.
- Yes! - You said that the sensor's purpose is to
measure room size and determine the water
the microfiber should retain.
No! We call it adaptive because
your... Look!
My speed of cleaning might be faster than my mom's.
It is adoption to how much area you are covering.
It is not mapping the house.
It is mapping your speed.
- Your direction. - You can click a button.
Okay! If I am moving slowly, it will spray less water.
- If I am moving faster, it will spray more water. - Yes.
You can use the button to increase the speed.
- No! - User experience...
It is determining how much water is retained
- by microfiber. - There is an element of human smartness.
I have to understand at what speed I have to spray water.
Or when to spray!
We eliminated it for a seamless experience.
I love the name and the brand, Caspian.
It is a good idea.
The way you've positioned the product
is quite aspirational.
The precision with which you have put your skills to work
is impressive!
In my opinion, it's kind of excessive in terms of engineering.
You are looking at it from an engineer's perspective.
I would advise you to look at it from a user perspective.
They look at how it will benefit them.
And how much it will cost them?
You think like an engineer, most people don't think like that.
Your strength is becoming your weakness. Do you get it?
I am out for now.
I don't see a use case or a product-market fit as yet.
Good luck! I am out.
We kept asking you about why people are not choosing a mop
over a mop cloth.
But you couldn't give a unique insight of your consumer.
I cannot believe it is only affordability. I am sure.
There has to be an angle to it. It doesn't clean thoroughly.
They are not convinced that the floor isn't cleaned.
There is no feeling of it being clean... You couldn't explain it.
You are lost about the market.
So I don't think
you are ready as founders to raise the funds.
So, that's why, I am out.
In the product's product-market fit,
you mentioned
that for cleaning an average Indian household.
That is how you started your pitch.
I cannot see how this fits in that household.
That is why I am out.
But the precision you work with...
I am hoping! You are both young.
You will use this precision
in the future in the right place and create a good product.
Both of you are passionate entrepreneurs.
You are 24 years old. There is innocence.
I believe a business minded co-founder is a must nowadays.
All of them mentioned that you have a strong engineering mindset.
How a consumer is doing business in India?
You are yet to learn that.
Have you never thought
about whether or not you will face this problem?
We want guidance. We want to understand what we have to do next.
That's why we are on Shark Tank.
Let me be frank. This won't really work in India.
What else did you think of making?
For now, we have taken up a problem and we want to solve it.
I am out.
I was just looking...
Because this is not a problem I feel that needs to be solved.
I cannot be a part of this product.
But if you make something next,
please think of me.
Don't be upset.
You are very bright engineers. Very sweet boys.
It's our duty to give you this feedback.
So, take it in the right spirit.
Stay hungry, stay foolish.
Looks like you will be in it for the long run
- and you will do very well. Good luck! - Thank you, Sharks.
- Thank you! - Bye!
Yogindra and Mehul welcome to PokerBaazi Zone.
I can't do seven.
So, I will call him on it.
And your time starts now!
Vipul Goyal, Tanmay Bhat, Kenny Sebastian, Rohan Joshi.
Samay Raina...
And your time is up!
You are the Baazigar Of The Day!
You win entry tickets to National Poker Series India
PokerBaazi, where you hold the cards.
[theme music playing]
- Hello, Sharks! - Hi!
I would like to narrate a story to you.
This story is about a historic garment
that was used as shapewear or underwear in the 1800s.
European women used to wear this
to achieve curves on their linear bodies.
I am talking about corsets.
Back then, corsets were made with ivory boning and fabric.
Women used to tie it as hard as they could
so that they could cinch their waist and achieve an hourglass figure.
You see, Sharks! It was really essential to achieve curves.
And we Indian women
are naturally well endowed and curvy
and we are always asked to hide our curves.
Who will explain to them that curves are good?
Hello, Sharks! My name is Lavanya.
We are the founders of Lea Clothing Co.
Lea Clothing is a fashion brand
that celebrates women of every shape and size.
We have also developed a proprietary sizing chart
specifically for Indian bodies.
Other than this, we have two sister brands.
Saanjh by Lea and L'ange by Lea.
We primarily sell online through our e-commerce store.
We are also available at major marketplaces.
so that they can wear them happily and without any worry.
For that, our ask is.
- Thank you! - Thank you!
- Lavanya! Kriti! - Yes?
Oh, wow!
It is a juxtaposition of being a woman.
We are ferocious and we are nurturing,
we are compassionate, yet we can be the providers.
To celebrate the beautiful complexity
- of being a woman, we came up with the name Lea. - Very nice.
Is purple your favourite colour?
Lavender is our signature. We have...
You can see Namita!
- If you make her stand there she will blend it. - I agree!
[laughing]
How do you both know each other?
- Mother-daughter. She gave birth to me. - Oh really? Wow!
- Yes! - I can't believe it!
Tell me the story behind your startup.
I went to the US for my undergrad.
I completed my double major
from University of California, Los Angeles. UCLA!
I came across many great boutique brands.
Corsets were a silhouette that was getting popular back then.
When I returned, I ran a Google search.
'Corsets online India.'
There wasn't any result.
This was at the end of 2019.
I felt that this was a gap.
That is when I came up with an idea for Lea.
Which would be a mid-premium brand.
Where we will focus on occasion wear such as
amazing dresses, your corset style tops.
Everything was done keeping curvy women in mind.
- My husband is a garment exporter. - Okay!
I help him with back-end operations.
So, I joined her to help her with back-end operations.
- Are you working with her full-time? - Yes, full-time.
You left your husband for your daughter.
- Yes! - I am all good with it.
- And you didn't want to join him? - No!
I wanted to start something of my own just like he did.
I saw him coming from a middle-of-nowhere town in Haryana
to becoming and creating an amazing business from the ground up.
That was very inspiring for me.
Lavanya, I can see your designs here.
It seems more like party wear.
The idea was to focus on occasion wear.
Be it birthdays, bachelorette parties,
bridal showers, or date nights.
We have been running this business for 3 years. We have customers
who have saved money and wore our dress on their birthday for 3 years.
How much is the average price?
For example, if I look at
- the red one. - Yes!
- That is quite elaborate. - Yes!
- Versus maybe the other red one with the heart shape. - Yes.
- That is slightly simpler. - Yes!
- The Red Isabelle dress is around Rs. 8,000. - Okay!
The price of the corset is Rs. 3,990.
And the price of the skirt is Rs. 3,290.
- Almost about Rs. 7,200. - Yes!
You will get such options on Amazon and Myntra, right?
Respectfully, not really!
We made six renditions of our first corset.
Before we finalised this.
- Are you wearing a corset? - Yes!
What makes it stand out?
There is a tailoring technique used.
It's a complex style garment.
Our tailors
are talented beyond belief.
The way we make it and the quality of the materials we use.
We use lining and fusing techniques.
And then we use boning.
That differentiates us from any other competitor.
If you can't convince them, confuse them.
- Excuse me! - [laughing]
This makes sense
- but fashion... - I got the point.
- It's a technique. - I understand.
- You have a gold dress. - Yes.
There's another dress behind it.
- I think it's maroon. - Wine dress.
- Wine-coloured dress. - Right.
Those two don't fit in with the overall sensibility at all.
As Ms Kriti said,
we have two sister brands.
- "Kriti"? Call her Mom. - Why don't you call her Mom?
My mom said it, of course.
I'm used to calling her that because I call her Ms Kriti in the office.
- So I'm habitual. - That's nice.
Right. The saris you see
belong to my Saanjh by Lea ethnic wear brand.
The one you touched belongs to L'ange by Lea.
Those are swimwear cover-ups.
The names you use are unique. Like "Saanjh and L'ange".
- Saanjh is a combination... - It has a story.
It's a combination of my maternal and paternal grandmothers.
- Santosh and Laajvanti. - What about L'ange?
When I was in college,
I was a part of the BREW Accelerator programme
and I gave the idea of a size-inclusive lingerie brand.
- L'ange. - So back in 2016, I devised L'ange.
It means angel.
- It was nostalgic. - [laughing]
You launched two more brands
so early in your journey.
Running three fashion brands is quite complicated.
Of course, but I think we are doing great. I'd like to say that.
- It happens when you fail to scale. - Right.
We observed that customers
were pairing our corsets with saris and Lehengas.
They looked stunning.
So we asked them,
"Would you like to get such offerings as you like these?"
And the answer was a resounding yes.
Then we launched Saanjh by Lea
and our launch product had corset-styled blouses
with hand embroidery and pre-stitched saris.
I think it's our biggest duty
to listen to our customers as a brand owner.
It's the same with L'ange.
Customers came to us asking,
"What should we wear under the Lea products?"
"What kind of bra should I wear?"
Overall, what's the percentage of corset-styled products
in Saanjh, L'ange, and Lea?
I'd say they comprise 75%-80% at least.
If we use hand embroidery
and elegant fabrics in Saanjh products,
the price point will increase.
You have to keep multiple sizes ready
because customisation also has challenges.
Of course.
How do you manage that?
Actually, we decided firmly not to have dead stock.
Good. Did you learn this from Dad?
That's right.
We didn't prepare
- more than 25 pieces in a particular style. - Okay.
Some of our products became a rage.
Many products go viral on social media.
For example, this piece was out of reach for three years.
To date, we introduced 6-7 colours.
That's the reason we keep extra inventory.
Hang on. The information you give is anecdotal.
We can't understand it.
Let's quantify his question.
For how many days do you keep an inventory?
How much is your dead stock?
We have an inventory of 1.5 months.
- 45 days. - Which is good.
The inventory is maintained for 45 days.
- In your warehouse? - Yes.
Please tell us its worth.
The inventory must be around Rs. 25-Rs. 30 lakhs.
- It's more. - It's more. Yes.
- Is Rs. 25 lakhs-Rs. 30 lakhs on cost? - Yes.
Is your margin 2x?
Our margin is 80%.
Unbelievable. An 80% gross margin.
- So your sales are Rs. 60 lakhs. - Rs. 60 lakhs.
Yes.
So I can tell you the numbers.
- Yes, please. - Please tell us.
When we launched,
we went viral on social media without investing much.
- Yes. - Our CapEx was just Rs. 25 lakhs.
Within four months, we broke even and became profitable.
- And we have been profitable ever since. - Very nice.
- When did you launch? - January, 2021.
What were your sales last month?
Rs. 4.35 was my gross sales.
During FY 21-22, my net sales were Rs. 1.5 crores.
My gross sales were Rs. 2.35 crores.
- So your business is doubling up every month. - Yes.
Why didn't you launch your own store?
Entering retail means a huge fixed cost.
- Yes. - Actually, I was about to open a store last year
but then I thought, "I'm earning so much organically.
So instead of spending money to open a store,
let's use it for inorganic and performance marketing.
Let's see the results."
The industry average of ROAS is 3%-3.5%
- but ours is 6%. - Wow! Amazing.
How much do you spend on marketing?
I spend very little as compared to other brands.
We are investing around Rs. 6 lakhs now.
Why didn't you launch your own store?
Actually, I was about to open a store last year
Let's see the results."
The industry average of ROAS is 3%-3.5%
- but ours is 6%. - Wow! Amazing.
How much do you spend on marketing?
I spend very little as compared to other brands.
We are investing around Rs. 6 lakhs now.
Did you ever think of experimenting and doubling up this amount
and spending Rs. 12 lakhs so that the sales double up?
I want to increase it and that's the reason I want funding.
Marketing expense is only 10%-12%.
Then where does the remaining
- 50%-60% go? - I'll give you a breakdown.
19% is spent on wages
and 18% is spent on advertising.
- Um... - Hang on. 18% is Rs. 6 lakhs, right?
No.
Rs. 6 lakhs is spent only on performance marketing.
That's what I thought.
You mean Instagram and reels are separate.
However, everything is in-house. We aren't paying for it.
- We have an in-house team. - I get it.
I get it but basically, your marketing expenses are Rs. 6 lakhs
plus Rs. 10 lakhs. So almost Rs. 16 lakhs.
No, not Rs. 10 lakhs.
18% of Rs. 40 lakhs.
- It's almost Rs. 10 lakhs. - All right.
I spend 9% on shoots because I like visuals...
- That's again marketing. - It's against marketing.
Add performance marketing and content creation expenses
- to give the exact figure. - All right.
18% plus 9% is 27%.
- Okay. - What else?
- Commissions. - I give 8% as commissions.
4% is spent on logistics
and 2% is spent on admin and overheads.
One more thing
makes us unique and that is our investment in fashion technology.
It's called the Lea Virtual Trial Room.
which is an avatar of your body.
You can customise it as per your size
and also your body shape.
Suppose my mom has a beautiful pear-shaped body.
She can select Pear Shape.
We can also customise according to our height and weight.
We can select our skin tone
and provide the exact measurements of our hip, waist and chest.
You can see how Carla Silk Corset fits on me.
- Who gave you the license? - We didn't seek a license. We made it.
- Okay. So the technologist... - We have a technology partner.
We partnered with them for this.
- Such 3-D try-ons are available. You shouldn't have made it. - No.
You could have used them. How much did you spend on it?
We spent Rs. 8.50 lakhs.
However, it's great that you made it.
It shows that you are versatile
and you handle designing products,
- business, marketing, and even technology. - Yes.
It demonstrates that at an early stage,
you are exhibiting entrepreneurial abilities.
On that basis, I'll give you an offer.
- I'll give you Rs. 1 crore. - All right.
- But I'll take 4% equity. - Okay.
- It means you get a Rs. 25 crore valuation. - Okay.
Additionally, I want 2% of sales as royalty
until I make 1.5x my money.
- 1.5 times your money. - Yes and then it ends.
Actually, we have been given commitments for fundraising.
- And based on that... - What are those?
- We are offered Rs. 1 crore at a Rs. 40 crore valuation. - Okay.
Western wear and occasional wear in women
is a small market and a high price point makes it even smaller.
All the brands on Instagram
are after those consumers
because they are the top 1 crore women
- with affordability. - Right.
As you scale,
you'll face a marketing efficiency challenge
which is why you must sell offline.
- Exactly. - You'll have to open your stores
in the top 100 malls.
It'll help elevate your brand
- and you can solve the problem in marketing. - All right.
So my offer is the same as Anupam's.
- Rs. 1 crore for 4% equity plus... - It's always the same.
And I don't mind joining his deal
- Yes. - Okay. We'll come together.
However, I love more what you stand for.
- You are bringing a revolution. - Yes.
If you are okay, I'd like to join
- the two of you in your offer. - Oh, wow!
- Are you joining too? - I think this is...
- Do you want to join? - I said the same thing.
Fundamentally, you have done good work till now.
- So we are assuming you'll figure it out in the future. - Of course.
So I'd like to participate
and would love to join them.
- I love your entrepreneurial spirit. - Thank you.
- You received nice offers. - Right.
Unfortunately, I want to be out.
- No worries. - I can't
- show much interest in your business. It's okay. - No worries.
- But I think the truth is... - Yes.
- Having skin in the game is important. - Yes.
It's going to be hard work.
- Vineeta told you. - Yes.
So I think if you want four Sharks,
and you think everybody can help,
you must increase the equity.
- All right. - I'm proposing this on everybody's behalf.
I'm happy if all four of us join you.
- Okay. - We want Rs. 1 crore for 6% equity
and 2% royalty on sales.
- Could we take a moment and make a call, please? - Yes.
- Sure. - Sure.
- Hello. '- Yes.'
So we have got a deal and we need input.
Will she listen to you all?
- I think she is a bit enthusiastic. - Yes, but she's energetic.
- I don't think she has a listening problem. - Right.
- I felt... - I don't think she has such a problem.
[suspenseful music playing]
- Okay. - All right.
- We would like to offer a counter. - Please go on.
However, a 2% royalty on sales
till you recover 1.5% of your investment...
- 1.5x! - 1.5x.
It sounds like a loan.
- It's not like a loan. - We are also giving you equity.
- If I made an offer based only on equity... - Okay.
I would have given you a maximum valuation of Rs. 10 crores.
Most likely, my starting offer would be Rs. 8 crores.
- And you wouldn't have liked it. - Right.
To make the deal work,
I added the royalty component
because it isn't much compared to your profit.
It's tough to have a profitable business in fashion.
We have grown consistently
and have a good retention rate.
32% is my customer retention rate.
Lavanya, we made an offer because we have confidence in you.
Lavanya, please make a decision.
Rs. 1 crore for 4% equity
and reduce the royalty to 1% from 2%.
I think it could be amenable.
- Okay. - Rs. 1 crore
- for 4% equity as per the valuation is agreed. - No.
- Is it possible? - No.
- Four Sharks. - But it's too much.
[suspenseful music playing]
All right. We'll go for the deal.
I have a FOMO as I'm sitting alone.
- Thank you! - Thank you.
Lavanya and Kriti, greetings.
As you can see, I'm quite curvaceous.
Also, we have a lot of stigma attached to the outfits of girls.
What change will your brand
Lea Clothing bring in this direction?
I think the biggest change
is that we show curvy models
and plus-size models in our shoots.
The mindset of
appearing a certain way to wear such clothes must change.
I think it's a significant change.
It's a huge change and Acko welcomes your change.
After wearing beautiful clothes,
you all must buy a new car too.
- Why not? - Of course!
You may buy the car anywhere
but please get it insured by Acko.
You could get a discount
of up to Rs. 36,000! Isn't it great?
- Yes! - Amazing.
Lavanya and Kriti,
you made a great impact with your brand.
I want you two to leave your impact
on Acko Change Makers Wall. Please come.
[theme music playing]
[ethereal music playing]
Telugu industry is the second-largest
film industry in India.
- Aha! - [chuckling]
We brought a small project
related to this film industry.
I'm Umamaheshwar and I'm a producer.
We hail from the city famous for biryani and 'Baahubali',
Hyderabad and not Mahishmati.
In South India, cinema is a religion.
Cinema is a passion and also an emotion for us.
Our love for cinema is such that
we drink, sleep and eat cinema.
We made a film called '#Krishnarama' in 2023.
'#Krishnarama'
was released on the ETV Win app of the Eenadu television network.
These films earn double or four times the profit
and give competition to big films.
So we brought a small-budget film here.
To make this small-budget film big,
- our ask is Rs. 2 crores for 30% equity. - Wow!
I'm a film fan.
In fact, Gautami is one of my favourite actors.
I think she is fantastic.
The film you made before making the sequel is '#Krishnarama'.
We want to know more
to understand the probability of the success of the sequel.
Please elaborate on it.
Namita, it's a pre-approved project by ETV.
Rs. 2.62 crores.
Can we make a film within Rs. 2.6 crores? That's it?
It includes the payment for the artists and the production.
We made the sequel with the same artists in the US.
That's the reason,
- this project costs Rs. 4.5 crores. - It's more expensive.
No, I'm just asking. I don't know the cost.
Films can be made in Rs. 50-Rs. 60 lakhs.
In the first two weeks, it garnered
- Sir, Rs. 6-7 crores. - Rs. 6-7 crores.
Yes. We're talking about the number of people who'd visit a theatre.
- Eenadu owns the OTT platform. - Yes.
You garnered 40 million views over there so you counted it.
- Yes. - You decided
to multiply it with the ticket price.
- Yes. - You multiplied it with 3 lakh viewers to get Rs. 6-7 crores.
It's a fundamentally flawed argument.
You mean to say
that some content is released on the OTT.
Instead of releasing it on OTT, if it had been released in the theatre,
the viewers on OTT would view it in the theatre.
We can't guess
if 5% viewers would have gone,
10% or 15% viewers. In fact, none of the viewers could go.
When we decide to go to a theatre, we have a small window.
You can go on a weekend.
The weekend works through marketing.
You need to spend more on marketing
as compared to production
to drive audiences.
And then you may hope that word-of-mouth will carry the film.
So guessing a film's response
in the theatre isn't possible.
Firstly, the theatrical billing will be deducted.
- Maybe it's 18%. - Yes.
The remaining 82%
- is further divided and 55% goes to... - The theatre.
- We produce it for the theatre. - To the theatre.
You'll eventually get 30%-35% after giving the distributor's share.
- Yes. - If the theatre earns Rs. 10 crores,
you'd get Rs. 2.5-Rs. 3 crores at last.
That's only for the theatre.
We have OTT and the satellite market.
- We have an audio market. - Some of the revenue comes from there.
It's hard to estimate the revenue of this film.
Please tell us about the other films.
What films did you make?
How much revenue did you make? And what was the investment?
How many films did you two shoot together?
We have made films in Rs. 1-Rs. 1.5 crores.
- We made five films. - You have already made five films.
Did any of them release in the theatre?
- All the five films. - Okay.
Mostly, the satellite television covered the cost of our films.
Please tell us specifically.
- You said Rs. 1.5 crores is the average budget of five films. - Yes.
What was your average earning
after subtracting all the expenses?
- Rs. 40-Rs. 50 lakhs. - Rs. 40-Rs. 50 lakhs.
How many films were a flop? And how many were a hit?
Two films flopped.
- Two films flopped. - Yes.
You are saying that there's a 50% chance of losing money.
- You said it. - No.
It depends on individual projects.
No producer or director
wakes up in the morning and says, "I want to make a flop film."
- Everybody is trying to make a hit film. - Yes.
- But invariably, 50% flop. - Yes.
At least it's your record.
Industrywide, 80% of films flop.
You want Rs. 2 crores from us.
How much revenue will Rs. 2 crores generate?
We expect Rs. 5 crore revenue in the US.
It's the gross revenue.
- It's the profit. - You get 30% or Rs. 2 crores
plus 75 lakhs.
It'll be Rs. 2.75 crores.
It's a lousy calculation.
No, there is also a minimum guarantee.
We have a fixed market on OTT and digital at least.
When it comes to distributors, the current environment isn't conducive.
Unless it's a big star's film, even the OTT aren't paying money.
You won't even get a spike...
in Krishnarama's views.
I don't understand why you've come on Shark Tank.
It's not possible that no one is funding you.
- It is. - Why so, Anupam?
Because nobody makes money in this business.
Today, they've become Bollywood's biggest directors.
- Yes. - Amongst the top, right?
They'd pitched a movie,
and the movie was exactly this, to a couple.
The couple comes to the US and then the film is shot there.
We actually made the film there.
They're also Telugu and Tamil, both of these guys.
From there, we went on and made another film together.
- Raj and DK became the top Bollywood directors... - Yes...
But I lost all the money I put in.
I studied this industry in depth.
I realised that the existing people in the industry,
the producers who have been doing this for a long time
are also in heavy debt, but they keep doing it.
Fortunately, it was not some producer scamming me.
Raj and DK themselves were naive.
They didn't know, they were learning, they were engineering.
Anupam, sorry. There were no OTTs in those days.
The producers who take a bet on OTT and say,
"Your money is safe in OTT, sir!",
back in the day, they had satellite TV.
People were paying Rs. 10 crores for satellite releases back then.
- How much money did you lose? - Not... A few crores.
It's fine. This is part of learning. It's the price of learning.
I don't think of it as a loss.
I think of it as an investment in learning,
but I've already learnt, you see!
If they gave you a deal,
"Anupam, Rs. 30 lakhs for 30% equity and act in the movie...."
No! I don't do Tollywood and Bollywood anymore.
- Only Hollywood and that's not what you're doing. - Hollywood...
- We're shooting in the US anyway. It's Hollywood. - Hollywood film.
Do you know how it is shot in the US?
You make it sound glamorous.
Three people will be shooting on the down-low.
- I feel his pain! - He's hurting.
- Here, 400 people do it. - We feel Anupam's pain.
Will you take him as the hero...
The hero is a 70-year-old man!
- How old are you? What's your age? - [laughter]
How about the hero's son then?
You showed up here as Kadappa.
You want me to be the hero!
Kattappa, not Kadappa!
- Why did Kattappa kill Baahubali? - Kadappa is a stone.
- Jokes apart, Uma and Raj. - Oh my God.
Let me explain our business model to you.
If we invest in 10 companies,
2 to 3 companies make a 5 to 10 times return,
6 to 7 of the companies have a gradual growth
but no liquidity.
The upside in this case is not 5 to 10x
because you've already taken too many assumptions.
So, our business approach and your business model
don't quite gel.
So, I'm out.
I don't have a great sense of the movie industry.
I understand numbers,
and the numbers say you didn't make profits in the past.
What you're promising isn't liquidative either.
Overall, for those reasons, I'm out.
Even if one was to invest in the movie business,
you should have taken the portfolio approach
because nobody can predict a hit or flop.
Everyone anticipates the movie to be a hit,
yet 80 to 90% of the movies flop.
This is like buying a lottery ticket.
If you're lucky, you win.
I am out for this reason, but good luck.
- Every investor has their own style of investing, right? - Yes.
My style is that I want to be with my companies long-term.
does not align with my style and time frame.
For that reason, I'm out.
- I hope this is a bigger success than your first one. - Thank you.
I am out as well.
If I invest Rs. 2 crores,
I expect a minimum growth avenue of Rs. 10 crores.
Unfortunately, I'm out.
- Thank you. - I hope this movie does well.
- Thank you. - Thank you.
- Thanks a lot. - Thank you.
The famous Raj and Simran duo is here.
Oh, I'm so sorry.
The Raj and Uma duo!
Welcome to the PokerBaazi zone.
You turned the serious, business ambience of Shark Tank
very film-like.
It is a business of films.
Correct! Let's play an exciting game.
- 7. - A lot of confidence.
- What do you think? - No, he can name more.
- So, your call is... - I can name more!
- That he will name at least 7. - Yes.
And your time starts now.
- Anupam Kher, Amjad Khan... - [clock ticking]
Amitabh Bachchan,
- Shah Rukh Khan, Anil Kapoor... - And your time is up.
- Uma has become today's... - Simran.
[laughter]
He has become the Baazigar Of The Day.
You get entry tickets to the National Poker Series India
worth Rs. 1 lakh
where you can play interesting games
and the chance to win exciting prizes.
PokerBaazi, where you hold the cards.
Download now.
[theme music playing]
[theme music fades]
I'm a vendor.
I have a rental business of electronics.
I have a huge inventory but no customers.
Where do I find customers now?
My son bought an expensive drum set.
Now, he wants to play the piano.
What do I do with such an expensive drum set?
Don't worry, guys, when you have Rentit4me,
the first-ever renting marketplace and the ultimate destination.
Rentit4me is a trusted platform
where out of our wide range of products,
such as furniture, home appliances, electronics, musical instruments,
medical equipment, automobiles and much more.
We list the products of local rental vendors
on our platform
Apart from this, you can list
your personal products on our mobile application
and rent them out,
making it an extra income.
We quit our jobs and started Rentit4me in 2023.
Today, we have over 400 vendors
Our ask is Rs. 1.5 crores for 5% equity.
First, tell me, are you guys related to each other by any chance?
Monali is my wife
- and Gunjan is my sister. - Oh, nice.
When did you start this?
We launched it in July 2023.
What did you do before that? Give us your background briefly.
I did my schooling in Delhi.
I'm an electronics and telecom engineer.
I've worked for telecom companies like Bharti Airtel and Hughes
for 16 years.
16 years. Wow.
I did my schooling in Jaipur.
After that, I did my BSc in Biotechnology.
I've done my MBA from Amity University, Noida.
I'm a gold medallist and I came top of my batch.
My campus placement was with Ernst & Young through them.
I worked there for almost 14 years.
When I left the job,
I was Vice President, Strategy and Transactions.
I did my schooling at Don Bosco in Delhi.
Then I did engineering in electronics and communication.
Then I did my MBA from IIFT,
Indian Institute of Foreign Trade, Delhi.
I headed sales at Cisco for 8 years.
Your team is so qualified.
I am intimidated.
- [laughs] - I feel so underqualified.
Thank you, Sharks.
- Means a lot to us. - Lovely.
Is your biggest category real estate?
No.
No! Okay.
Our hot-selling category currently is
electronics and home appliances.
I don't quite get this.
This work has already been done.
People have made good businesses in this category.
I think Furlenco is one.
That is one more player that is doing well.
The rest have shut shop.
What did you discover?
- What's different? - It's a good question.
What's new? What's different?
We're doing this differently than the other players.
We onboard local vendors on our platform
and make them our partners.
We do our deliveries through them.
All the big companies have their own inventory.
It isn't a level playing field at the moment.
No one is digitising smaller rental companies.
Everyone is dealing in buying and selling marketplaces.
No marketplace exists
that provides a level playing field to these small rental players.
We want to be their face.
We also want them...
Just as big companies like Amazon and Flipkart
deal in buy and sell,
we want them to get an opportunity to operate on a level playing field.
How many vendors have you on-boarded?
400 vendors so far.
On a daily basis, we onboard 4 to 5 vendors.
out of which 10 to 15 listings have gone on rent.
It will be clearer if you give us a product demo.
Sharks, this is our website.
You can view the product categories here.
Choose the rental duration.
Then select the start date and choose the rental duration.
Select it for 3 months.
Select the start date.
Select the duration and then 'Add to cart'.
Oh, okay.
Then make the payment and complete the transaction.
Once the payment is done,
on your email and mobile,
you will get the order confirmation and delivery details.
You took the total amount in advance.
- All 3 months. You take rent for 12 months also in advance. - Right.
- That's Rs. 13,000 rent for the AC for 3 months. - Right.
How much does a new 2-ton AC cost?
More than Rs. 45,000.
- Rs. 45,000... - Rs. 45,000.
- That's for a new AC. - Yes.
If I want to buy a refurbished AC, I could get it for about Rs. 25,000.
I'll be paying a rent of Rs. 13,000 for 3 months.
Why will I not buy a new one?
Here's what happens.
This is majorly relevant to the moving population.
A lot of people currently with jobs in Mumbai
get transferred to say, Delhi.
They'll move to Delhi for 3 months.
That's short-term use. They cannot buy everything, right?
Secondly, the maintenance.
You don't need to pay for that. The vendor maintains it.
Despite that, people don't prefer renting it.
They feel that buying the product
and selling it later on will be cheaper for them.
This cost is too steep for a three-month rental.
It isn't viable.
What's the scale of your business now?
We started in July 2023.
We have done sales of Rs. 1.42 crores to date.
Last month?
Rs. 23.24 lakhs.
What was your margin?
Our margin is 12%.
When we started in Q2,
we did Rs. 36 lakhs.
We did Rs. 42 lakhs in Q3.
In Q4, we've already done Rs. 63 lakhs.
Is the difference marketing?
So, 23% is our performance marketing
and our team's expense.
- 12% is your profit. - Yes.
- You're making Rs. 3 lakhs every month. - Yes.
For the education you mentioned, your salaries should have been high...
Do you have an objective number of the market size?
What is the rental market size in India?
Outside of real estate and car.
Apart from properties,
the market size is Rs. 18,000 crores.
India or globally?
India.
and do not wish to sell.
Is this Rs. 9,000 crores getting monetised?
This is the market potential of the circular economy.
- Potential. - Potential or market? Not potential.
In today's date, what is the rental market size
for ACs, sofas and the other products you mentioned?
My question is, what is the market size for that?
It doesn't matter. So what if it isn't on Google?
Businesses were made even before Google.
- If you... - There are many ways to triangulate data.
You should be familiar with estimating, triangulation,
taking out proxies... There are many ways.
The simplest would be to identify how many vendors are in a city.
Ask a couple of vendors how much business they do
and multiply it by cities.
If you go about it logically in that manner,
then it makes sense.
I don't think your numbers are right.
I have one question.
What's written over there?
- Rentit4me. - Rentit4me.
- R4ME, that means... - No. What is your website?
- Rentit4me.com. - Rentit4me.com.
Why does the logo say 'R4ME'?
Shouldn't the name be Rentit4me?
That's in small font
and you've made a fancy logo which I can't read.
The name of our application on the Apple Store and Google Store
is Rentit4me.
Then why is your logo 'R4ME'?
It's Rentit4me!
Very poor thinking in terms of logo.
Anyway. Look, sir.
People are tired of doing this business
and the dynamics are already proven.
The economics doesn't sit well.
Secondly,
your understanding of business, through question and answer...
The market size you told us
and the dynamics of the marketplace which are already established,
that is coming across as very poor.
Finally, your sense of consumer business
also seems doubtful to me.
When I look at your logo, it's entirely senseless.
You're in Shark Tank,
the biggest opportunity to advertise your brand
so that you can increase your business,
and here you are with R4ME!
So, I'm sorry but I'm very disappointed
because it's reflecting very poor judgement on your part.
I'm out for these reasons. Good luck.
I don't think that your app is also too user-friendly now.
For instance, basic things like
when I look at the listing of the AC,
I see a generic picture
and not the picture of the AC that I would be getting.
The biggest thing about a marketplace is
that even if the search results are very few,
at least there should be reviews, ratings,
correct pictures and authenticity that build trust.
This marketplace gives me the feeling
of a fake marketplace.
I would not try it out for the lack of trust.
So, I don't think this business is investible at the moment.
I'm out.
We Sharks often fight amongst ourselves
because we want a deal.
That feeling that you get on seeing an entrepreneur
that I want this deal
is because of two reasons.
Either they are so sharp
in their thinking and their pitch
that you go, "Wow! I want to bet on him or her."
Or then, secondly, the numbers.
There's this glow in your eyes when you see the numbers.
There was no conviction in your pitch.
We asked you so many questions,
but you were not able to give us answers which convinced us.
Secondly, your numbers also are poor.
That is the reason I'm out.
I've understood what you three have been saying.
You've taken a big risk.
I don't think I can support you here.
I don't think the financial matrices would ever match either
or I would get my investment back.
Unfortunately, I am out.
When the internet was made,
do you know which were the first businesses to be made?
- Let's take Shaadi.com for example... - Thank you.
And Naukri.com.
Or the example of MakeMyTrip.
The first businesses to be made on the internet were marketplaces.
This was a really obvious business.
There would be demand as well as supply.
The internet would bring them together to build those businesses.
So, the marketplaces that had to be made
might have potentially been already made.
Now, we're 25 years post the advent of the internet.
Marketplaces were the first to be made.
Potentially, the renting business couldn't have been made.
If it could be, people would have made it 10 or 20 years ago.
As I mentioned, fundamentally,
in the renting business,
the ratio of renting to price
also seems a bit off to me here.
I don't think a business could be built here.
So, I'd like to be out for that reason.
- Thank you so much, guys. - Thank you.
- All the best. - Thank you.
Bye.
Gunjan, please come over here.
Nitin and Monali, don't be scared.
I've taken your sister on rent for a short while.
Welcome to the PokerBaazi zone.
- How about 7? - Hmm.
7!
Gunjan, what do you think? Can they do it?
Yes, they can.
The family's honour rests on you today.
And your time starts now.
Water.
- Fresh air. - Air.
Um, green grass.
- Hurry up! - Love!
You seem to be really focused.
The entire family doesn't think about rent-free things.
Anyway!
Gunjan was here with me.
Um, she did say that you'd do it,
but you could not.
She is my favourite and she's standing beside me.
'Welcome to the special episode'
'which is completely dedicated to the environment.'
'Cool The Globe is a carbon handprint app'
'which helps people reduce their carbon footprint.'
'How can I become eco-friendly in day-to-day life?'
'The app shows me over a hundred ways to do that.'
'Digital Paani is an IoT-enabled software'
'that just like a doctor tracks the health of treatment plants'
'and manages it with the right expertise.'
'Today, Digital Paani power plants'
'treat over 90 million litres of wastewater.'
'Canvaloop is a bio-material science company'
'that uses agricultural waste'
'such as hemp, banana, the stems of oil seeds'
'and pineapple leaves by converting them'
'into textile fibres and yarns'
'using our zero-waste proprietary technology.'
'This is Levi's jeans!'
'Sir, it contains 20% of our fibre.'
- 'It's yours, from Surat! - From our unit.'
- 'Yes. - To Levi's?'
- 'Yes. - Not bad.'
'Are you profitable?'
'We are not profitable.'
'Our building segment is about to become a profit centre.'
'We're now investing in the product and sales and marketing'
'especially for the industrial segment.'
'Are you an environmental activist'
'or do you really want to build a business?'
'I started out as an activist.'
'And I realised this.'
'We only had 30 years'
'to avoid the worst effects of climate change.'
'We need to do this in 30 years,'
'and we need to see this as an entrepreneur,'
'not just as me personally, but as a world.'
'Where the question of it arises,'
'I think we could manipulate this, right?'
'It will show the data of the carbon saved'
'which could be greater than manifold the reality.'
'How much would you need?'
'I don't have the precise figure.'
'You wish to build a big company.'
'You want to invest in a plant with a 1-lakh tonne capacity'
'and you don't know how much you need to invest!'
[music playing]