[theme music playing]
[music intensifies]
In Shark Tank, once again, to secure amazing deals and investments,
the Founder and CEO of ACKO, Varun Dua, is here.
[theme music playing]
Hello, Sharks!
[chuckles]
[thud]
Oh my!
The pitch has started, Sayali. What are you doing?
Preeti, what has our grandma taught us?
What?
Before starting anything auspicious,
you should offer jaggery to everyone.
Hmm! But I can't break it.
Sayali, everyone is aware
that the fruits of labour are sweet.
But that is a lot of hard work to have sweet.
This is not done.
I agree.
Sharks, in ancient times, jaggery was used daily,
but now, due to the effort it requires,
it is limited to festivals.
The jaggery sold in the market
is often full of harmful chemicals, artificial colours,
dirt, fungus, mould
and sometimes even ants.
And to solve all these problems,
Gudworld is a brand
that provides consumers with pure and hygienic jaggery
in convenient sizes like 5 grams and 10 grams.
...are available in 12 naturally infused flavours
- including turmeric, ginger and coffee.
...with modern technology
to give this humble sweetener of India
Since April 2021,
we have sold
more than 2 crore Gud Bites of Gudworld.
Wow!
Our vision is that in the next five years,
1 crore people should consume Gud Bites from Gudworld every day.
Sharks, to turn our vision into reality,
our ask is Rs. 50 lakhs
against 2% equity
and tons of mentorship.
So, Sharks, join us in making this world
a Gudworld.
All right!
- Shinde sisters! - Yes.
Are you biological sisters or cousins?
We are real cousins.
[laughing]
What?
- First cousins. - We're first cousins.
- That is nice. - First cousin.
Before we go ahead with the discussion,
we would like to begin this auspicious journey
with a tasting.
- Let the auspicious start begin. - Yes, thank you.
Aman, this is for you.
Are we going to eat so much jaggery?
- This is our packaging. - Which one is nice?
All of them are nice.
- This is for you, Varun. - Thank you.
- Anupam, this is for you. - Wow!
Saunf Gud Bites, Cardamom,
Desi Ghee. Amazing!
I want to try the Desi Ghee one.
[music playing]
And what is Masala Jaggery Powder? I've never heard of it.
- Masala tea. - It's a flavour.
It's very nice.
I can really taste it.
Your product is 'Gud'.
- Thank you, Aman. - Thank you!
Literally!
- Well done, girls. - Thank you!
So, this is not your innovation.
You mentioned that your family
has been running this business for 40 years.
- Jaggery has been produced for over 3,000 years.- Agreed.
- It's known as medicinal sugar. - Okay.
- Is that true? - In Ayurveda.
- Okay! - Because it is made through an unrefined process.
Also, it contains trace amounts of minerals that are available in it.
In ancient times, when jaggery was made
without the use of chemicals,
- it was considered beneficial for health. - Right!
Currently, Gudworld is the only company making it.
[laughing]
If you are purchasing our product,
then it is definitely much better than sugar.
But are you claiming health benefits...
- No! It's a sweetener. - No.
- It's a sweetener. - A sweetener.
In Delhi, people claim
that you should have jaggery to keep your lungs healthy.
Yes! Because it helps with cleansing the lungs.
She loves to control the narrative. Amazing!
Amazing! Go for it! We love it.
You tell us, what should we ask you next?
- You come and sit here. - No!
- Keep at it. Don't get intimidated by this guy. - Keep at it.
You are doing very good.
I understood from your body language
- that you will control this. So, very good. - Yes.
We just want to start from our family history,
- because Anupam said... - You...
That it's not our innovation.
- No, I didn't say that. - So...
- Yes, go for it. - You think that
- so... - Step back, Anupam.
- That... - She'll put you in your place.
- You need to move back. - This man needs an entrepreneur like you.
- Yeah! He needs some schooling also. - To control him.
With your permission,
may I clarify?
My question to you was
that your family has been in this business for 40 years,
- so how did you contribute to modernise it? - Yes!
- I will explain. - Okay!
40 years ago, when our family started this business,
they used to make 5-10 kilo blocks of jaggery.
It was used for animal feed,
liquor industry,
and also for human consumption.
- Where are you from? - This is in Chhatrapati Sambhajinagar.
It was known as Aurangabad.
- Okay! Are you doing it from there? - Yes.
In 2014,
they realised that many people
were producing the same product, turning it into a commodity.
The margin wasn't good.
In 2014, they shut down the plant.
And after that, our thought process
was to create jaggery that humans could consume.
We know that the spices are adulterated.
- Jaggery has much more adulteration. - Really?
They add lime to whiten it, colour it to make it black,
and use a lot of sulphur
and cleansing agents in the process.
In reality, no one can make jaggery
without adding chemicals to it. That was the problem.
When did you start making them?
- We cracked these products in December 2019. - Okay!
- Jaggery and chickpeas. - Even after many years
we never felt the need to have jaggery.
This happened because the sugar revolution took place.
Sugar was convenient to use.
All you have to do is take sugar and add it to your tea
or milk.
Jaggery comes in blocks.
You don't have the time to manually break the block, Aman.
That's why you use sugar.
- Okay, ma'am! - Yes.
[in Marathi] I liked your pitch.
- Thank you! - [in Marathi] Thanks.
I believe this jaggery trend.
We've replaced it in our household.
- Really? - My parents have started using
- jaggery. - Replaced sugar with jaggery?
Jaggery powder.
I don't know the brand that they buy, but it's not like this.
It's this big a piece and
the shape is crooked and odd.
Yes! It's typical...
You have to break that too.
But I've noticed that when you
add a jaggery cube to tea, it won't dissolve.
- I can see you have jaggery powder. - Yes.
What is jaggery cube used for?
After a meal
you want to eat something sweet,
so you have sweets made from sugar.
If you replace them with jaggery cubes, you'll get an energy boost
without consuming refined sugar
or artificial colours.
And your job will be done.
And globally...
- I hope it doesn't get worse. - 'Job will be done.'
And globally, is your USP
One is cubes.
You could say that it has brought convenience.
And the second one is innovative flavours.
...and then this powder. You don’t need to add any extra spices,
sugar, or other sweeteners.
It functions as a 2-in-1 solution. And your tea is ready.
But anyone can copy that. There isn't...
It will lack precision.
If you've noticed,
many brands have copied us.
They've not cracked 5 grams.
They can make 10-15 grams.
But if you look at the precision of cubes...
What's so difficult in this?
- You just have to cut it. What is the big deal? - No!
We have cracked the SOPs
regarding the temperature and duration
Where did you get the packaging and all made?
How did you start?
As I mentioned, in December 2019, the cube was ready.
There was no packaging.
I was fresh out of college and didn’t know what packaging was.
- Thankfully, in February of 2020, APEDA gave us... - In Dubai.
The experience in Dubai was a major turning point for us.
We realised
there was so much demand from abroad,
while in India, people are already consuming jaggery.
If we take this seriously, this can be a very big business.
There are companies like 24 Mantra and Organic India.
Please share the landscape of the market.
The total market size
is around Rs. 6,500 crores.
- Global? - In India.
- In India? - Yes. That's the jaggery market in India.
Do you have any information about the global market size for jaggery?
USD 4.2 billion.
Where is the highest consumption of jaggery, in the US or China?
China is the biggest importer.
Should I go over the unit economics?
[laughing]
Feel free to share whatever you want.
Last year, we generated a revenue of Rs. 1.48 crores.
- This year? - In August, our sales were Rs. 37 lakhs.
In September, Rs. 48 lakhs.
And in October, Rs. 69 lakhs.
Well done. You are growing rapidly.
- People consume it more in winter. - In winter, people
consume jaggery a lot.
What are your estimated sales for this year?
Currently, we are guessing 20%.
But we are in talks
with the biggest wholesaler in the US,
and they are very interested. We have a visit scheduled.
If it goes well,
they will be buying approximately 45 tonnes from us.
Tonnes? Do they take it in packs?
- Yes, but... - Branded?
Yes! Whatever we export
or sell in the local markets
has our brand on it.
- In this format? - Yes.
Could you break down the Rs. 69 lakhs?
- Which channels are contributing how much? - Okay.
Most of the contribution comes from the offline market.
From GT, we get 45%
and 15% from modern trade,
making a total of 60%.
E-commerce and the website contribute 15%,
exports bring in 20%,
and HoReCa accounts for 5%.
- Okay. And GT is done through distributors. - Yes.
How many stores and states are your products available in?
It is available in approximately 2800 stores.
It's majorly available in 6-7 states.
If someone orders in small quantities, we supply them as well.
How did you enter GT?
- Seeds... - The seeds business is entirely offline.
It's the same distribution chain mostly.
No! We take guidance from them on how to acquire the first customer
- and how to approach them. - Well done.
We learn all these aspects from them,
as the seeds business is entirely offline.
And as I mentioned, we used to do a lot of free sampling.
For example, if we kept 10 pouches,
the distributor would offer
a bite to their customers.
And the customers were gladly buying two pouches.
Show us your margin structure.
Okay! Our hero product is 5-Gram Gud Bites
with an MRP of Rs. 89.
A 5% GST is applied,
which amounts to Rs. 4.5.
This brings our net price to Rs. 84.5, which is 95% of the MRP.
Next, our raw material cost is 15%,
inward logistics accounts for 3%,
and packaging and labelling make up 2%.
This means our total COGS is 20%.
- As a result, our gross margin is 75%. Wow!
Which comes to Rs. 66.7.
- Fantastic. - After that, we have a distributor margin of Rs. 30,
employee benefit expenses are 18%,
shipping costs are 6%,
and marketing expenses are 4.8%.
This leads to an EBITDA of 14.2%,
which is Rs. 12.6.
Tell me something, do you receive advance payments in GT
or are you required to extend credit?
We mostly offer credit.
For how many days?
We give 90 days...
- 90 days? - Yes.
That's normal.
It's not normal, especially in the food industry.
- I'll tell you why. - Okay.
During the off-season, like in April and May,
it takes them more time to sell the products during that time.
Currently, the fresh season is October, November, and December,
when production also starts afresh.
- How much were your secondary sales in October? - Rs. 10 lakhs.
- Okay! - The expiry period is one year.
Maybe that's why you get your payment in 90 days.
...because we wanted them to first get the products to people.
Let them taste it,
and as we establish a hold in the market,
we would then definitely...
- Good strategy. - Absolutely! The only problem with this is...
Aman, let me finish. If you interfere...
You can give your opinion later.
We have a very different opinion on GT.
But in GT, distributors put their money.
- Yes. - So, they treat the products very well.
They respect it and ensure it's not expired.
The distributor stops respecting your inventory
the moment they know that they
There is a saying in the market, 'What is seen, is what gets sold.'
- Yes. - Okay?
You are selling 10 today, you never know, you'll sell 15 tomorrow.
- There will be a day when you sell 20. - The opposite happens.
If his money is invested, the inventory gets over soon.
- If your money is invested, it doesn't clear. - If their brand
- was big, they won't have done that. - No!
- If... - They're learning.
- They are just starting. - I know!
- But 90 days credit... - Seeding the market,
But that is the problem with the business.
- They might get their inventory back. - It's not a problem.
This happens in new businesses.
- Let's move on. Are you not on quick commerce? - No.
- Why? - We did approach,
- but it didn't... - There is a queue.
Yes, we are in the queue.
Which products or brands appear?
24 Mantra Organic and others have jaggery powder.
Is there a significant difference between their pricing and yours?
- Yes. - Does your product cost higher or lower?
It costs more.
- How much more? The basic jaggery and not the flavoured one. - Yes.
It's 1.5 times higher.
If the price is less by 33%,
the customer checks the ratings
and brand. And both these brands are known.
- Hmm! - They don't care
- where it was made. - Right!
- You own a factory, your cost should be less. - Yes.
When we achieve economies of scale...
- Family? - From our farm.
That's what I thought.
Is sugarcane farming a huge business for them?
- It is. - How big?
- We have 400 acres of land. - Wow!
We grow sugarcane on 100-150 acres of land.
It's 60%.
- Compared to buying from the market. - Yes.
- So, your raw material cost is 20%. - Yes.
- You get a discount from your family. - Yes.
- Currently, your profit is 14%. - Hmm.
It will go down slightly.
Why?
If...
- That's a nice question. - If you purchase from the market.
You won't be able to say anything today.
If you have to buy raw materials from the market,
then your profitability will look low.
We would rarely be required to buy it from the market.
Because we can grow as much sugarcane as we want.
We are barely using 5%.
Are there more costs? Can the office be shared
between the two companies?
Yes! The packaging unit is a shared space.
Yes, my family provided the funding.
- How much have they invested? - Rs. 4.5 crores.
How is the equity split?
I have 45%.
I have 25%.
- Okay! - We have two brothers-in-law
who share 15% each.
One of them is head of production.
He handles the entire thing.
And one of them handles R&D.
- Is he involved full-time? - Yes, he is.
Preeti and Sayali, what are you doing on Shark Tank?
You dominate the world of quick commerce.
You're the king of e-commerce.
We cracked GT.
In order to grow the company, we need you.
- Mentorship is one of the main things we are looking at. - Yes.
Okay! Now that you are direct, I will do the same.
I found both of you interesting
- as entrepreneurs. - Thank you!
And Preeti, you have a good hold on your business,
management and strategy.
And Sayali, you have a good hold on numbers.
People often say that I am very sharp with my responses.
Which is fine. It's a good thing.
You speak your heart.
- For sure. - I think you are the same.
You are already in F2C.
Even if you have to reduce pricing,
that will be easy for you.
You can lower your pricing and leave your competitors behind.
You've got what it takes.
Your main focus is delivering the product.
- And I totally agree with your offline strategy. - Yes.
I agree that you should expand more into the online space.
- There is a massive market for jaggery. - Hmm!
So, I will evaluate accordingly.
So, I'll give you an offer.
Rs. 50 lakhs for 6%.
- Okay! Thank you, Aman. - Thank you, Aman.
Factory-to-consumer model!
What is that?
It's simple.
The factory-to-consumer model is one
where the product manufactured in the factory
is delivered directly to the customer.
It can now be delivered directly or through online channels.
The key difference is that there are no middlemen involved.
Middlemen meaning dealers, retailers, or wholesalers.
The advantage this model offers to companies
is that it allows for better control over their brand
and direct feedback from customers.
I think you're building a solid business foundation.
There is one challenge I can see.
To scale this into a large business,
your capital and supply chain structure
will pose a challenge.
For that reason, I am out. I have feedback for you.
Utilise family members, but also build a strong team,
as you'll need to speed up.
Venture into the e-commerce market.
You have capital available from your family.
Put additional capital
in hiring good talent
and you can afford to do this.
Okay? Best of luck.
- Thank you, Peyush. - Thank you.
I have a similar problem to Peyush's.
As the company scales,
- there are many connected pieces here. - Okay.
And I am unable to find comfort in that connected aspect.
I know, the family is involved.
We started this business inspired by them.
They would be very happy to give all the equity in our names.
We have had a formal conversation on this.
Secondly, they never interfere
in business decisions.
They do what we ask them to do.
- I can see that. - The family is...
- We are doing what you want us to do. - Yes.
We can't do anything because they are blood relatives.
[laughing]
- You can fire them. - Good answer.
But we will tell them
that they won't take any decision, and they will listen.
- No one can say 'no' to you. - That's impossible.
Everyone is scared of you.
I will come back to you. Let's...
Okay! So, Preeti and Sayali,
offering credit on products with a shelf life
of less than a year and expanding so quickly is a considerable risk.
The fact that your Rs. 30 lakhs primary sales
only resulted in Rs. 10 lakhs secondary sales
validates that
you are taking a risk of products being expired
and returned. Which is fine,
because you can afford it.
That's the reason I can't partner with you today.
But the spark,
energy and resilience you carry
has inspired me a lot.
There are very few people who come here and manage to silence Anupam.
- So, I love you for that. - Thank you.
- I'll do the same offer as Aman. - Okay.
On the condition that only both of you have equity.
- Okay, sure. - And all of that. That would be my offer.
- Okay! - You decide.
- Thank you, Anupam. Please give us two minutes. - Yeah!
- Thank you! - Thank you!
[music playing]
Ah... Rs. 50 lakhs for 3%.
[suspenseful music playing]
Aman and Varun, thank you for your offers.
We have a counter for both of you.
All right!
Rs. 50 lakhs for 3%.
- Good! - Good counter.
...on Rs. 6 crores in sales is quite low.
What about my condition? Is that acceptable?
I am okay with your condition.
But we can't offer that much equity at this amount.
Nice!
Sorry, at this price, I am out.
Okay! Aman?
- Sayali and Preeti, I have no issue with your family. - Yes.
I sense that with your confidence
and the way you're speaking, this will be resolved. It can be solved.
Unfortunately, for me,
Rs. 50 lakhs at just 3% isn't feasible for me.
This requires a lot of work.
Okay!
3% will be too little. It won't be worthwhile. That's why I said 6%.
"Aman is sweeter than jaggery."
How about we meet halfway at 4.5%?
Aman, let's both make an effort to make this work.
Okay! Out of respect, I'll do
Rs. 50 lakhs for 5%. Let's go.
Done?
Hold on!
I must say, Preeti is amazing!
- It's a good deal. - And I am a good guy.
[chuckles]
Ah...
- Okay, we won't haggle for 0.5%. - Good!
Aman, you have a deal.
- Thank you! - Congratulations!
- Thank you!
We achieved our end goal.
Now, we really want to take this brand and our products
all over the world.
Do you also have sugar mills?
Of course! We have 400 acres of land. What are you saying?
Just saying!
- Thank you! - Thank you!
- That is mine too. - Thank you for the feedback, guys.
Thank you! Best of luck, girls!
Everyone in the family must be afraid of her.
- Yes. - Agreed.
- She is a pampered child. - Awesome!
- True! She is. - The pampered child.
- Hello, Sayali and Preeti. - Hello!
- Welcome to our PokerBaazi zone where you hold the cards. - Thanks.
...to set priorities for these functions according to their needs.
Similarly, I want you to choose five out of the ten functions
in front of you
and set them in a priority list.
- Okay! - Hmm!
- We will choose 'Product' first. - Okay!
- Where there's a product, there's business.- Agreed.
I think 'Strategy' should go second.
Okay. Interesting!
If you have a product, you need a strategy to sell it.
- Okay! - And then 'Sales'.
- That's right! - Because sales is king!
Once the products are sold, there will be cash flow.
So, 'Finance & Accounting'.
- Okay, very interesting. - Right!
...the skills and strategy of a true player, visit PokerBaazi app
and play your winning hand and use strategy.
Go and download PokerBaazi app now.
'Shark Tank India, co-presented by ACKO Insurance,
'PokerBaazi and Swiggy Instamart.'
'Co-powered by Adani, and Jaguar Bath and Light.'
'And partners, Rayzon Solar, ICICI Direct, '
'Lenskart and Sofy.'
[theme music playing]
Sharks, do you know what India's biggest resource is?
Air pollution!
Out of the 15 most polluted cities in the world,
12 are in our country.
You might think, 'What does it matter to me?'
'The pollution is outside and I'm indoors.'
Pollution from outside gets inside,
and your AC keeps recirculating that same polluted air.
...we transform your AC into a 'Super AC' with AIRTH.
Hello, Sharks. My name is Abhimanyu.
But no one bought them.
[laughing]
Air purifier isn't something people are used to.
Then we created a new product
that can easily be integrated
into the daily lives of ordinary people.
But how do we sell a new product
that no one has ever heard of?
We faced a lot of setbacks.
Investors backed out
and some teammates left as well.
People claimed that no one would buy this product
and that everyone would laugh at us.
But we are proud that
we didn't just launch a new product, we created a whole new category.
Today, this technology tested from IIT Kanpur and IIT Delhi,
has successfully upgraded the ACs in more than 25,000 homes.
In the future, along with home AC units,
we will launch products designed for car and building ACs.
Our ask is
Rs. 60 lakhs for 1% in the company.
- Nice! Very nice. - Too good.
...it should be under 30.
- That... - That's the healthy zone.
In Delhi, it's around 500.
Sir, I am from Delhi.
This is a normal AC.
It has filters installed.
These are mesh filters.
A lot of companies claim
- that they give PM filters to give you clean air. - Correct.
That is this small filter.
The small one.
And then you also have AC filters,
which you can buy from e-commerce. It's called 'AC filter'.
This is that filter.
We have all three here.
[music playing]
Now, PM2.5 is 47.
Let's test the single pass efficiency.
How clean is this air that is being filtered out?
You can see that PM2.5 was around 50.
It will still be around 50.
Confirming that single pass efficiency is almost 0%.
We will check our product the same way.
- Yes, sure! - Okay!
Now, we will show you
AIRTH's AC purifier.
It has three components.
The first one is, can you see this shiny part?
It is a magnetic tape.
You have to put one magnetic strip on your AC
and the second one is here.
So that it sticks.
Second is foam.
That's because each AC has its own unique curve.
We have to install it in every AC.
The foam helps with installing the product on any AC.
And then the third one is the filter section area.
The colour you can see
is a coating that we have filed for a patent.
It can also destroy microorganisms too.
We are placing the monitor here
to measure the single pass efficiency.
[music playing]
Wow!
Very nice.
- What? Wow! - It's at 30, 29,
- 27... - Oh my God!
Yes!
We are witnessing such an impressive demo for the first time.
If it was 100, it would measure around 30, sir.
Do one thing,
give us the product so that we can check it out while you pitch.
I'll take one and give the rest to others.
[music playing]
Thank you, Ravi!
Thank you, ma'am.
Thanks, mate.
[music playing]
I won't turn on the AC in December.
An air purifier is made of a body, a fan and filter.
There is a 'fan mode' in ACs.
So, we are giving a use case
that tells you how you can use your AC
to ensure clean air and save yourself from air pollution.
When you switch the AC to fan mode,
Remove this attachment,
and this is the Summer Version.
It's modular.
It is.
...without cooling the air.
Electricity consumption is also less.
But, what's the problem if we always use both?
Airflow is low.
- When you use both together. - Yes.
This doesn't give less air.
When it is blowing air
- if the flow reduces because of this... - Yes?
- the electricity bill should rise, right? - Correct.
How high?
It rises 1-3%.
Which is, around, 30-45 watts.
You're from Bihar. You're from Delhi.
How did you meet each other?
So, I'm born and brought up in Delhi.
One of the main reasons I started working on air.
Later...
I did my bachelor's from NIT Kurukshetra.
2012-2016, Civil Engineering.
- Majored in Environment. And then... - Wow!
- 2017-2019... - Nice.
I did my Masters from IIT Mumbai.
He was the Project Manager.
When students like me had ideas
he helped with his guidance.
- Okay. - Later, I started Airth in 2020.
Then, I went to Gwalior.
I did my B.Tech in Mechanical Engineering.
And then, I came to Gurugram.
I did a private job, which I did not enjoy.
Then, I began my first own start-up.
That was into food and logistics.
So, I had to shut down the operations.
Later, I...
learned about IIT Mumbai's pre-incubation programme.
I applied for that and I got selected.
What is the equity split?
- I have 64%. - Yes.
Abhimanyu has 2%.
[chuckling]
Where's the rest?
The rest 17% is with investors.
There's another Director who has 3%.
And, 7% ESOPs.
4%, uh, IIT Kanpur.
Then, 1% is with a filter manufacturer.
- Who is it? - Their name is Kanwal Enterprises.
And, remaining is with our three mentors.
And, who is your investor?
Tandon group. So, they came in 2021.
How much lifetime capital have you raised?
3.3 crores.
Do you ever feel the need for a co-founder?
- Yes! - In what area?
In all areas, if possible.
It would be great if I could only manage technical.
- But... - But, Abhimanyu can't do that?
Abhimanyu has taken care of operations
which is a huge headache.
So, he has superbly managed the whole operations part.
- He's your right-hand man, in a way. - Yes.
- So, will you raise his equity with time? - Yes, correct.
How high?
I would be happy with 50-50 also.
- I mean, between us. - Okay.
Basis on contribution, definitely.
- Don't forget what he's saying, Abhimanyu. - Yes.
There are other filters available in the market for ACs.
It will be a huge challenge if you fit it in your AC.
Two things will happen.
The dust-holding capacity of other filters is very low.
You have it with you.
You've used it for three months.
But, all the dust and germs are inside it.
Often, disease transmission happens due to resuspension.
So, an air purifier can only protect you from air pollution.
Sir, we filed a patent
which suggests it is unique, novel and has industrial application.
WIPO. The full form of WIPO is
World Intellectual Property Organization.
This is an agency of the United Nations
whose work is...
to protect and promote
the intellectual properties worldwide
like copyrights, patents and trademarks.
This ensures that inventors and creators get their fair share
and, innovations are used correctly.
We have filed for two more additional patents.
- And, meanwhile, it needs no maintenance or cleaning? - Yes.
What is its price?
An AC costs Rs. 30,000.
They add the filter...
and, after discounts, they sell it for Rs. 42-45,000.
You'll have to pay Rs. 12,000 extra
...with a HEPA filter
cannot sell for Rs. 32-33,000.
The suppliers behind you will refuse you for this variant.
Plus, it reduces the energy star rating.
So, that's why, we sell more than such a huge
legacy company.
Where and how does this sell currently?
How does the customer find out?
- 70-80% of our sales. - Wow.
So, we closed FY23-24 at 2.1 crores.
In the last six months, we have done 2.2.
Last month, we did 44 lakhs.
The rest is net.
- It will rise now as pollution has just started. - Yes, correct.
So, we should be closing this financial year at 6-7 crores.
Last year, how much did you make
at the same time, in the first 6 months?
As opposed to 2.2?
7 plus 20.
Year on year is 10x, then.
- Yes. - Wow.
I'll understand the unit economics.
We sell it for Rs. 2,200.
We remove GST.
It comes to almost Rs. 1864.
Then, our COGS is Rs. 620, 33%.
- So, GP is 67% right now. - Hmm.
Then, our platform fees.
Around Rs. 266, 15%.
- Then, our logistics, Rs. 100. - Okay.
- CAC, averaging out, Rs. 300. - Yes?
Other than that, fixed cost is Rs. 370.
So now, CM 1 is almost Rs. 880
and, CM 2 is Rs. 580.
EBITDA-wise, there was a profit of almost Rs. 200, 11%.
How much money did you make last year?
- Sir, we did a loss of 43 lakhs. - Why?
In the first 2 quarters, we only made sales of 7 and 20 lakhs.
That's why. This year...
we are mostly at break-even, month on month.
In the two months of monsoon season, July and August
we made a loss of 10-12 lakhs every month, EBITDA wise
because of which, our EBITDA is -9% now.
Otherwise, we are almost at break-even every month.
But, will you make a profit this year or face a loss?
We'll make a total profit.
Why does it sell in other areas?
We have more orders from South India than North India.
Pollution is not a serious issue there.
Sales are with what purpose?
One of the top five cities
in the last 6 months was Bangalore.
When we spoke to people...
we understood that the biggest problem is pollen.
that they don't have to clean the inner filter every month.
Some say, doctors said that
he repeatedly falls ill due to polluted AC air.
Someone uses it due to sinus problems.
Okay, Ravi and Abhimanyu.
I think, I really like two things.
One, there is massive growth potential in this category
because, the pollution problem
is present in 12 Indian cities out of top 15.
Unfortunately, it appears that 20-25 more cities will be added
because this problem is arising in tier 2, tier 3 cities too.
I'm really impressed that
in category building businesses, like yours
generally, marketing percentage is very high for growth.
You're marketing with 20% of net revenue
and growing by 3 times this year.
So, I think, genuinely, no better example
can be seen of a product-market fit.
So, I'll make you an offer
which is close to your last round valuation.
Wow!
Mine is simple, man. Uh...
60 lakhs for 1% won't help.
And, I feel, valuation is a little high.
But, I'm willing to make you an offer.
You've made a good innovation and invention.
So, it's important to reach places with it.
I think, price point is decent enough.
So, it's a simple offer. 1 crore.
That's my offer.
Abhimanyu and Ravi, you are honest founders with very high humility.
- Thank you. - I liked that a lot.
But, having said that, I have...
discomfort with one thing, and, for that reason I'm going to be out.
I still don't believe
with much conviction...
It's a great market and business.
The distribution and business management side of things.
Who will scale that?
And, I don't see a big hold on that.
Given the point at which you are standing with the company right now.
And, for that reason, I'm out.
See, what I like about you is, your purpose is very clear.
You are working on this problem.
And, I think, there's resilience too.
The struggle is your cap table right now.
I have always believed that
once the cap table is disturbed
it needs a lot of patience and hard work to improve it.
I don't have that.
So, I'm out. Best of luck.
Such innovations initially feel impossible.
But, slowly, they become irreplaceable in the future.
This seems to be that kind of an innovation.
- Thank you. - Like, I say, VIRUS 1 was made in 3 Idiots in IIT.
You guys went to IIT Mumbai
- and made an AC purifier. Nice. - Air purifier.
One more thing. I felt, your pedigree is very solid.
You've fully given 5-7 years of your lives to this.
To solve air pollution and air-related problems.
And, I hated the design. It will have to be improved, if we go on.
So, I will match Anupam's offer.
- Uh, 1 crore for 5%. - Thank you.
You guys want to think about it?
So, counter offer is, 96 lakh rupees for 3% of the company.
And, you three can come.
I won't have fun at such low equity. Honestly.
Sir, it will be fun. We'll make money.
How much money?
I won't get the time to talk to you.
- So, shall we talk? - No...
- Vineeta, do you want to talk? - Let's talk.
We'll talk to them.
Right? I love what you're doing.
I don't even have a problem
if you take 2 crores for 10%.
All your funding problems will get solved.
I mean, I won't have fun at 1%.
3%, please.
1% extra is advisory
for both of us investing time and effort.
I made you my original offer.
Very close to what you wanted, but, you wanted all three.
Now, multiple Sharks have some value.
I'll definitely make money for you.
Please let's do it at 3%.
We have that belief or we wouldn't write the cheques.
Bro, take more money.
- Take 2 crores for 8%. - Not yet.
- We'll take more at a higher valuation. - Heed me.
What do you want? You want more money?
Would be happy.
I'll lower it a little.
Right now, why are you stuck between 3 and 4?
Offer 3 crores at 10%.
This is very difficult.
Don't do it.
[laughter]
Don't do it, bro.
Gosh! 1 crore at 3.7!
What's the problem?
- This is why he's a weak founder. - What's your problem?
Ravi, what's wrong with 1 crore at 3.7?
Why are you being so difficult?
Take 2 crores, if you want.
One second, I'll get out.
Let me ask one last time. Yes or no, or, I'm out.
I'm not going to argue so much about 0.2 or 0.1.
She'll be alone, then.
So, it's my last offer. Or, I'm out.
[suspenseful music playing]
It's a deal!
- Awesome! - Whoo!
- Sorry. - It's a solid innovation. Useful in the future.
Thank you very much.
It's good to fight for your equity.
- Thank you. - And, very good product.
- Thank you. - Thank you.
Smile a little. You haven't smiled at all.
[camera clicking]
- Thank you very much. Bye. - Good, good, good.
When Vineeta offered the solo deal
I feel, I should have taken it.
Things became messy after that.
Anupam, why didn't you go for this man?
- I did! I did! - He did, at the last.
Anupam, can I say something? Can you listen?
I thought, you were...
- No, no. - on the edge.
- You weren't even sure. - Not at all.
- You thought, let it go. - No, not at all.
- No. - I did not want less than...
When you want it, I've seen how you want it.
It was an option value deal.
Then, you would have done 2 crores-5%, closed the deal.
Not at 5%!
It didn't make sense.
[theme music playing]
Welcome to Acko changemakers, where we really welcome change.
And, we saw a beautiful portrayal of that on our changemakers wall.
Technology isn't only an innovation
it's a means to bring change to a changing world.
And, our changemakers for today are with us, Ravi and Abhimanyu.
How are you, guys?
- Excellent. - Very good.
In Metro cities especially, pollution
has become a huge problem.
So much so, that people have begun to evaluate
if it is even worth it to live here.
- Because, life is at risk. - Yes.
The steps you are taking towards that
are great and we really appreciate the changes that you're bringing.
I want to ask a question
from our audience sitting at home.
What changes can they bring in their lives
which can enable them to take steps to reduce air pollution?
Firstly...
- smokers should quit smoking. - Of course.
Stop the people or family members around you who are smoking
and, don't accept passive smoking.
Secondly, at home...
the incense sticks that we light
do cause pollution.
- Oh! - So, lessen usage of these things.
As less as you can. You can use natural fragrances.
And, thirdly, you should have good
exhaust systems and chimneys.
So that, when food is being cooked
all the oils that spread smells etc. in the air
can be emitted outside home.
And then, upgrade your AC.
It should throw clean air. With Airth.
Of course. We'll use your Airth for everything.
You're bringing a great change.
Exactly like Acko is bringing
a change in insurance with its revolutionary offers.
Avoid incessant calls while buying car insurance.
Avoid the confusion about price and policy coverage.
Simply buy car insurance from Acko.
It's easy, transparent, hassle-free.
And, the premium is perfect.
We appreciate the change you are bringing.
And, for your time given to Shark Tank
we have a gift for you from Shark Tank and Acko.
Thank you, sure.
Here you go.
[camera clicking]
[theme music playing]
[dynamic music playing]
Welcome to top brand India customer care.
[laughing]
- Press one for Hindi. - Oh!
For English, press two.
[chuckling]
Press one for installation.
Press two for repair.
Press 3 to purchase AMC.
Stop it, bro.
Your call has been put on hold.
'All our customer service representatives
'are currently not available.'
'Please hold and we will attend to you shortly.'
So, Sharks, do you remember?
This is the hassle of talking to an agent in customer care.
After struggling so much, if you have...
saved your warranty card or bill with you
then, your complaint
will be registered in at least 10 minutes.
Or, your complaint will be lost in a black hole.
I wish there were a solution...
which could help us get our complaints registered.
There is! OneDios.
Only in six clicks and 60 seconds.
...is around Rs. 40-50.
Our vision is...
to make easier...
the complaint registration journey of 30 crore households.
My ask from you is...
75 lakh rupees in exchange of 1.5% equity.
Do you want to
'request and relax' with OneDios?
Thank you.
Nitin Chawla from Ghaziabad.
Before coming to your
6 clicks and 60 seconds product
we'll find out more about you.
I have completed my B.Com.
I did my M.Sc Computer Science from Maharshi Dayanand University.
My interest lay in product development.
I was given a target that if I...
make sales of 15 lakhs in 3 months
then, they'll transfer me to development.
I achieved the target and I entered software development.
I joined another company after 2 years, Fujitsu Consulting.
I made my first mobile app in 2006
for Abu Dhabi Food Control Authority.
Then, I joined IBM as a Project manager.
And, I spent 12 years with IBM.
When I left IBM, I was leading the Electronics sector.
I made a prototype first.
I closed a customer.
And then, I resigned in January 2020.
So, this is a problem.
But, I don't understand your solution yet.
How will OneDios solve it?
OneDios has an app.
So, this is our home page.
Warranties are available here too.
Most customers click on 'book service now'.
So, let's say, my problem in breakdown is
'does not heat or cool'.
One, choose the address.
Second, choose an appointment date.
I believe that...
the brands don't have a mature infrastructure.
No supply of parts.
Service is sub-contracted.
Repairs don't happen for 15 days.
Nobody is ready to wait for 10-15 days
for any repair work on a TV etc.
And, most people nowadays will call a technician from
companies like Urban Clap today itself and then figure out
if they want to pay for it or not.
So, the value proposition in this is
that my 10-15 minutes of irritation on a phone call
is solved.
But, the repair work is still painful.
I can't see a very strong value proposition.
Am I missing something in it?
In India, 20 crore requests reach brands
which are in warranty.
It must be 20 crores for the brands.
But, as a consumer, I need this
maybe once a year.
Sir, we have observed...
that one customer adds 3-4 requests in a year.
Sir, we are a tech platform.
We only do complaint registration
People will come to the website of our company
...or, go to you?
Why would I? I would never go on OneDios.
Sir, let's understand the process once.
How the customer actually behaves.
I go on to Google first.
I write, 'brand plus customer care'.
Then, I find a number.
80% of complaints are registered from customer care.
...phone numbers on Google.
Then, they make calls to the brand.
How will you change that behaviour?
We started retailer onboarding.
We told the retailer about this app.
Simply add the customer's mobile number first.
Okay, let's solve this.
- The problem is real, Anupam. - One second.
No, it's real, but, not too big.
- How will it make money... - It is big.
He himself admits it's not big.
- 20 crore complaints a year. - Right.
You said, it costs a brand Rs. 50 to solve it.
So, if we calculate 20 crores with Rs. 50
it is a cost of 1000 crore rupees.
Through voice commands.
How much is my cost now? It falls by 90%.
So, this market, worth 1000 crores
comes down to 100 crores.
How much will you earn in a 100 crore market?
2%-3%-4%-5%?
There's no market, right?
Sir, let's use your own numbers.
The market for complaint registration is 1000 crores.
I'll talk only about 10% now.
That customer has entered my app now.
So, I am selling him extended warranty now.
I am giving him buyback.
I am giving him brand offers.
Where the acquisition cost on my platform is Rs. 200
I am receiving Rs. 25 too.
- Very interesting. - To come on my app.
- We sell large appliances on Flipkart. - Right.
After a sale, it automatically moves
towards service and installation.
An extra column offering extended warranty appears.
Click it and buy if you want. It's simple.
Let's say, you sold a large appliance of boAt and I bought it.
I want to request repair now.
Should I go to Flipkart or not?
So, we're telling Flipkart...
you don't need to send data to individual brands.
Consume our single API
and we'll send it to all the brands.
And, you're getting Rs. 25 per request for this from the brands?
We get Rs. 5 to Rs. 35.
Depending upon volume.
And, you have all brands now?
So, we have 20 brands which are integrated.
And, we have played smart too.
For example, Samsung is not integrated with me today.
You add a Samsung request.
In 1 hour, an operations guy from my call centre
will call up the Samsung call centre
and register a request on your behalf.
That is a cost for me.
But, when I integrate the APIs...
They want to increase volume
- so that Samsung returns to them... - Increase volume.
- Yes. - and becomes a customer.
Your thesis that...
customer will buy extended warranty and other products...
I'll tell you something simple.
and try to sell it later...
- It doesn't sell. - We tried. No, it does sell...
but, only one who needs repair buys it.
So, that business never scales.
And, we've tried this.
And, we wasted our money.
So, with your thesis on cross-sell
The retailer that we took on board
was firstly told by us...
'sell your brand warranty'
'don't sell third party'.
If the customer misses it there
then, he learns from POSM
I can purchase warranty from here later.
12% of customers directly purchase warranty from our app.
This year's numbers are 1.2 crores in revenue from warranty sales.
So, this year, till date, we have...
made a revenue of 3.25 crores.
- In six months? - Seven months.
Last year, we made a revenue of 3.57 crores.
This year, we've earned 2.1 crores from request registration
and, 1.15 crores from extended warranty.
Is this selling on the app or retailers are selling the 1.15?
Retailer is selling 85%
and 15% is selling on the app.
Sorry, there are a lot of things.
I have studied the market a little.
Several large appliances are sold on EMI.
And, they bundle their own warranty with the loan.
There's a retailer, a lender and a brand.
- And, outside players like us too. - Hmm.
Often, brands don't even ask to sell their warranty.
Bajaj Finance is selling my products, so...
let him earn the warranty
because the lending product is more important.
There are a lot of variables in this.
What you're saying sounds a little over-simplified to me.
And also, if you said that...
80% of your 1.2 crores is coming from your app...
Then, the game would have been...
Then, it would mean, you're bringing consumers.
Then, your margin has value.
What is your margin?
I have a 22% margin in it.
Impossible!
What commission do you give a retailer, on an average?
We give 30%-45%.
So, that's what other players also roughly give. So, it's a game.
They'll go to someone who pays 50.
You earned 2.1 crore margin, sorry, revenue in request registration?
Right.
- What was your cost? - 90%.
Why? You don't pay salaries?
My cost of manpower is in two parts.
One, my marketing guys.
The operations team that forwards requests.
That costs me around 6 lakh rupees monthly.
Our second team is Product Team.
That costs us 15 lakh rupees monthly.
- So, you made 2.1 crores in 6 months? - Right.
- 6 plus 15 is 21. - Right.
How much is 6 times that?
- So, 1.3 crores. - 1.3 crores. Any other expenses?
- Office expenses. - Let's assume 1.5 crores.
- Right. Correct. - You save 50-60 lakhs.
What does this have to do...
with extended warranty sales?
All your extended warranty sales are coming from retailers.
You initially said...
that your business is
to manage call complaint registration.
- Yes. - Then, we did some digging.
Then, with more digging, we learned
- all your extended warranty is coming from retailers. - Right.
So, registration of complaint is not connected to it.
You are taking us all over the place without getting to the point.
And, if anyone questions you
and wants to go into depth
you smirk secretly, like...
'I'll show them!'
'They know nothing!'
If he's done work in his industry, show him respect.
[tense music playing]
Bro, your business is finished.
You can say whatever you like here.
But, if you want the truth...
then, the third-person technology is going to end.
Game has moved on.
But, the 25 rupees that you get
will keep reducing
until it becomes zero!
As far as your extended warranty sales go...
I'm unable to trust the numbers.
The way you beat around the bush.
And, finally, have you heard of...
'if you can't convince them, confuse them?'
That's what you're doing.
I'm not confused, but, I'm not convinced either.
- I'm out, good luck. - Okay.
You told me two problems.
One is repair, and other is extended warranty.
I totally disagree with you on extended warranty.
- I don’t think you have 22% arbitrage. - Okay.
I will always go to the brand as a customer.
Even if I have to wait for 10 minutes.
So, I have trust issues with this whole business
as a brand and as a customer.
- So, unfortunately, I'm out. - Okay, thank you.
Nitin, this business is a little complex.
It is personally conflicting for me too
because, I sell warranty too.
And, warranty is a very cutthroat business.
And, it is a play of commissions.
You must be getting some arbitrage opportunity right now.
It's a small game that's fitting.
Because of my personal experience and conflict
and a little confusion, I'll be out.
Thank you.
I think, the solution you've found
will work for a few years
but, the way technology is seeing an evolution
a lot is moving towards AI.
Right? And, WhatsApp is playing a very large role.
I can tell you from my own experience.
And, I don't see that tech capability and tech DNA
in your company yet
to make a bet on that disruption today.
So, I am out because of that. Best of luck.
Have you raised funding?
The total funding I raised is 16.5 crores.
Wow! Okay, from where?
Indian Angel Network.
LetsVenture, VCats, Haldiram group.
Amber Enterprises, IPV.
What and when were the rounds?
First round was family and friends round.
My friend added 2.5 crores.
We started the business.
We plowed through first and second COVID.
We raised funds of 8.5 crores
in 2021 end.
From Indian Angel Network and Amber Enterprises.
Then, in end of 2023
we again raised funding of 5.5 crores.
From VCats and IPV.
What was the valuation in the last round?
35, 50, floor cap.
How much was your profit last year?
We faced a loss of 5.5 crores last year.
- And... Right. - 5.5 crores?
And, this year?
We have a loss of 1.3 crores this year.
You just said there was a profit.
- One second. - No, loss.
No, when we saw the numbers...
You're making several partnerships. All your costs are variable.
So, where is your money going?
Because, your retention is very high too.
You receive Rs. 20 for each complaint.
Then, how is the money burning?
Our fixed costs are the same
since the start. 65 lakhs on a monthly basis.
Only revenue is increasing
because, requests and warranties are increasing.
How is it 65 lakhs? You just said, cost is 16 lakhs.
Sir, we have the cost of product team.
- 15 lakhs. - You included everything.
- You said 6 lakhs for marketing. - 15 lakhs plus 6 lakhs.
- And, rest is 15 lakhs. - 15 lakhs.
15 lakhs is cost of product team.
6 lakhs is cost of our customer care.
12 lakhs is cost of field staff.
Office costs, server costs.
In total, it is 60-65 lakhs.
- Monthly expense bills. - 65 lakhs.
You raised 16.5 crores
um, and built a business over 4 years, which
is in the zone of
6 crore revenue and -60% EBITDA.
It's not a very good outcome so far.
A lot of money has already gone into it.
I don't think I'll be able to invest another 75 lakhs in this today.
I'm out.
- Okay, best of luck. - Thank you.
Thanks, everyone. Thank you.
Any brand gains trust
when you see its ads.
One needs money for ads.
I came to raise money.
Never mind. I've already faced 200 plus rejections. This was one more.
- It was confusing. - He's a sales guy.
- But, why would he speak wrongly? - He'll tell you anything.
But, why?
All your life, you have succeeded because of your ability to sell.
He started in sales, did product whatever!
- Ended in sales. - But, you can sell without lying, right?
He's not lying, he's-he's in the grey zone.
- Hello, Mr. Nitin. - Hello.
- How are you? - All good. You tell me.
Great. Meeting you was great. I saw your excellent pitch.
- How was your experience? - It was excellent.
- It was good? - Very good.
- Did you get any feedback, something to learn? - A lot.
Excellent. I saw your product.
- Our whole family will be your loyal customers. - Thank you.
You're doing great work.
I hope you continue hustling for your mission.
- Sure. - And, I noticed your busy lifestyle.
So, I thought, we both have busy lifestyles.
I know what you need.
I immediately opened Swiggy Instamart, and
ordered a few things to make life better for you.
- Thank you. - A charging station to help you charge your battery.
Some stationery items.
And see, they're here in 10 minutes.
Excellent.
Thank you so much. Here you go.
Thank you very much.
And, tell me if you need anything else.
Order noise-cancellation headphones.
It will reduce disturbance during work.
- Let's order that. It will come in 10 minutes. No worries. - Sure.
Friends, you too order anything you want.
I mean, you have to pay, not for free.
It will come in 10 minutes. Order on Swiggy Instamart.
Order now.
[theme music playing]
Even when he eats cold food, he holds it in his mouth for 15 seconds
and eats it once it's warm.
[laughter]
We have with us the founder and CEO of Acko, Mr. Varun Dua.
We have our sources.
I didn't know myself. Your information is wrong.
It's wrong?
- Okay. Ready for the question? - Yes.
- It can be a spicy question. Okay? - Yes.
The question was sent to us by Akshay More.
He's from Mumbai, 30 years old.
...especially after COVID
that health insurance is important.
And, I often say that we are a little risk-friendly.
- We drive on the wrong side of the road too. - Yes.
We believe that we'll be fine.
- It happens to others, not to us. - Yes.
I think, that's changing and the awareness is rising.
But, it's still not enough.
I have only one suggestion for the viewers listening.
You invest in Mutual Funds.
You invest in stocks, in gold.
- You want to see your money growing. - Hmm.
Spend it on yourself first.
- Because, you're not getting any immediate returns. - Wow!
You won't see your money growing.
So, you postpone it a little.
Postponing it is not right.
Awareness is rising, but...
I think, it will take some more time in India.
One more question. Should an entrepreneur enter this space?
If Akshay More asks me
if he wants to become my competition, what should I say?
But, uh, on a serious note.
Health insurance is a little difficult
but, not too much.
And, in the next 10-20 years, this space is going to rise very high.
So, as an entrepreneur, if you want to try something in it
If you want to ask a Shark such questions like Akshay
to come into competition with them
then, send your questions.
Go to the Sony LIV app and choose your favourite Shark.
I'll ask the question.
See you in the next Ask The Shark with a new question and a new Shark.