1 00:00:15,000 --> 00:00:16,680 [theme music playing] 2 00:00:23,320 --> 00:00:25,240 [music intensifies] 3 00:00:30,720 --> 00:00:35,280 In Shark Tank, once again, to secure amazing deals and investments, 4 00:00:35,400 --> 00:00:39,080 the Founder and CEO of ACKO, Varun Dua, is here. 5 00:00:43,160 --> 00:00:45,280 [theme music playing] 6 00:00:52,680 --> 00:00:54,640 [theme music playing] 7 00:01:10,200 --> 00:01:12,000 Hello, Sharks! 8 00:01:14,200 --> 00:01:15,800 [chuckles] 9 00:01:20,160 --> 00:01:21,440 [thud] 10 00:01:21,560 --> 00:01:22,600 Oh my! 11 00:01:23,680 --> 00:01:27,920 The pitch has started, Sayali. What are you doing? 12 00:01:28,320 --> 00:01:31,200 Preeti, what has our grandma taught us? 13 00:01:31,320 --> 00:01:32,400 What? 14 00:01:32,520 --> 00:01:34,600 Before starting anything auspicious, 15 00:01:34,680 --> 00:01:36,960 you should offer jaggery to everyone. 16 00:01:37,040 --> 00:01:40,080 Hmm! But I can't break it. 17 00:01:40,360 --> 00:01:42,160 Sayali, everyone is aware 18 00:01:42,240 --> 00:01:44,560 that the fruits of labour are sweet. 19 00:01:44,640 --> 00:01:47,280 But that is a lot of hard work to have sweet. 20 00:01:47,520 --> 00:01:48,800 This is not done. 21 00:01:48,880 --> 00:01:50,600 I agree. 22 00:01:51,120 --> 00:01:54,560 Sharks, in ancient times, jaggery was used daily, 23 00:01:54,640 --> 00:01:56,880 but now, due to the effort it requires, 24 00:01:56,960 --> 00:02:00,040 it is limited to festivals. 25 00:02:00,120 --> 00:02:02,480 The jaggery sold in the market 26 00:02:02,640 --> 00:02:05,720 is often full of harmful chemicals, artificial colours, 27 00:02:05,840 --> 00:02:09,280 dirt, fungus, mould 28 00:02:09,360 --> 00:02:11,720 and sometimes even ants. 29 00:02:11,880 --> 00:02:14,760 And to solve all these problems, 30 00:02:24,480 --> 00:02:26,320 Gudworld is a brand 31 00:02:26,440 --> 00:02:29,640 that provides consumers with pure and hygienic jaggery 32 00:02:29,720 --> 00:02:34,320 in convenient sizes like 5 grams and 10 grams. 33 00:02:39,920 --> 00:02:42,040 ...are available in 12 naturally infused flavours 34 00:02:42,240 --> 00:02:45,680 - including turmeric, ginger and coffee. 35 00:03:07,720 --> 00:03:10,040 ...with modern technology 36 00:03:10,120 --> 00:03:12,320 to give this humble sweetener of India 37 00:03:14,520 --> 00:03:17,280 Since April 2021, 38 00:03:17,360 --> 00:03:18,960 we have sold 39 00:03:19,080 --> 00:03:22,280 more than 2 crore Gud Bites of Gudworld. 40 00:03:22,360 --> 00:03:23,240 Wow! 41 00:03:23,320 --> 00:03:26,360 Our vision is that in the next five years, 42 00:03:26,440 --> 00:03:30,880 1 crore people should consume Gud Bites from Gudworld every day. 43 00:03:30,960 --> 00:03:34,720 Sharks, to turn our vision into reality, 44 00:03:34,840 --> 00:03:37,280 our ask is Rs. 50 lakhs 45 00:03:37,440 --> 00:03:39,320 against 2% equity 46 00:03:39,400 --> 00:03:41,480 and tons of mentorship. 47 00:03:41,720 --> 00:03:45,000 So, Sharks, join us in making this world 48 00:03:45,200 --> 00:03:46,800 a Gudworld. 49 00:03:47,280 --> 00:03:48,880 All right! 50 00:03:49,000 --> 00:03:50,560 - Shinde sisters! - Yes. 51 00:03:50,760 --> 00:03:53,320 Are you biological sisters or cousins? 52 00:03:53,400 --> 00:03:54,600 We are real cousins. 53 00:03:54,680 --> 00:03:56,160 [laughing] 54 00:03:57,040 --> 00:03:58,080 What? 55 00:03:58,240 --> 00:04:00,000 - First cousins. - We're first cousins. 56 00:04:01,280 --> 00:04:03,560 - That is nice. - First cousin. 57 00:04:03,760 --> 00:04:06,280 Before we go ahead with the discussion, 58 00:04:06,360 --> 00:04:08,640 we would like to begin this auspicious journey 59 00:04:08,720 --> 00:04:10,000 with a tasting. 60 00:04:10,080 --> 00:04:12,720 - Let the auspicious start begin. - Yes, thank you. 61 00:04:14,640 --> 00:04:16,480 Aman, this is for you. 62 00:04:18,080 --> 00:04:19,760 Are we going to eat so much jaggery? 63 00:04:19,840 --> 00:04:22,400 - This is our packaging. - Which one is nice? 64 00:04:22,760 --> 00:04:23,880 All of them are nice. 65 00:04:23,960 --> 00:04:25,480 - This is for you, Varun. - Thank you. 66 00:04:25,560 --> 00:04:27,000 - Anupam, this is for you. - Wow! 67 00:04:27,080 --> 00:04:29,560 Saunf Gud Bites, Cardamom, 68 00:04:30,040 --> 00:04:31,880 Desi Ghee. Amazing! 69 00:04:31,960 --> 00:04:33,600 I want to try the Desi Ghee one. 70 00:04:35,360 --> 00:04:37,040 [music playing] 71 00:04:43,600 --> 00:04:45,760 And what is Masala Jaggery Powder? I've never heard of it. 72 00:04:45,760 --> 00:04:47,280 - Masala tea. - It's a flavour. 73 00:04:47,360 --> 00:04:48,360 It's very nice. 74 00:04:58,560 --> 00:05:01,680 I can really taste it. 75 00:05:01,840 --> 00:05:03,040 Your product is 'Gud'. 76 00:05:03,360 --> 00:05:04,520 - Thank you, Aman. - Thank you! 77 00:05:04,560 --> 00:05:05,440 Literally! 78 00:05:05,520 --> 00:05:07,680 - Well done, girls. - Thank you! 79 00:05:07,960 --> 00:05:11,280 So, this is not your innovation. 80 00:05:11,360 --> 00:05:13,720 You mentioned that your family 81 00:05:13,800 --> 00:05:16,960 has been running this business for 40 years. 82 00:05:22,400 --> 00:05:26,200 - Jaggery has been produced for over 3,000 years.- Agreed. 83 00:05:26,880 --> 00:05:29,600 - It's known as medicinal sugar. - Okay. 84 00:05:29,680 --> 00:05:31,080 - Is that true? - In Ayurveda. 85 00:05:31,240 --> 00:05:34,040 - Okay! - Because it is made through an unrefined process. 86 00:05:34,120 --> 00:05:37,600 Also, it contains trace amounts of minerals that are available in it. 87 00:05:37,680 --> 00:05:40,160 In ancient times, when jaggery was made 88 00:05:40,240 --> 00:05:41,880 without the use of chemicals, 89 00:05:41,960 --> 00:05:44,600 - it was considered beneficial for health. - Right! 90 00:05:44,680 --> 00:05:46,920 Currently, Gudworld is the only company making it. 91 00:05:47,000 --> 00:05:48,400 [laughing] 92 00:05:48,480 --> 00:05:51,680 If you are purchasing our product, 93 00:05:51,840 --> 00:05:53,880 then it is definitely much better than sugar. 94 00:05:54,000 --> 00:05:57,160 But are you claiming health benefits... 95 00:05:57,240 --> 00:05:58,960 - No! It's a sweetener. - No. 96 00:05:59,040 --> 00:06:00,200 - It's a sweetener. - A sweetener. 97 00:06:00,200 --> 00:06:02,040 In Delhi, people claim 98 00:06:02,120 --> 00:06:04,600 that you should have jaggery to keep your lungs healthy. 99 00:06:04,680 --> 00:06:08,120 Yes! Because it helps with cleansing the lungs. 100 00:06:11,320 --> 00:06:13,880 She loves to control the narrative. Amazing! 101 00:06:13,960 --> 00:06:17,040 Amazing! Go for it! We love it. 102 00:06:17,120 --> 00:06:19,160 You tell us, what should we ask you next? 103 00:06:19,280 --> 00:06:21,080 - You come and sit here. - No! 104 00:06:21,160 --> 00:06:23,920 - Keep at it. Don't get intimidated by this guy. - Keep at it. 105 00:06:24,000 --> 00:06:25,120 You are doing very good. 106 00:06:25,240 --> 00:06:27,200 I understood from your body language 107 00:06:27,320 --> 00:06:29,520 - that you will control this. So, very good. - Yes. 108 00:06:29,600 --> 00:06:33,000 We just want to start from our family history, 109 00:06:33,120 --> 00:06:35,040 - because Anupam said... - You... 110 00:06:35,120 --> 00:06:36,760 That it's not our innovation. 111 00:06:36,840 --> 00:06:38,840 - No, I didn't say that. - So... 112 00:06:39,120 --> 00:06:41,440 - Yes, go for it. - You think that 113 00:06:41,800 --> 00:06:43,560 - so... - Step back, Anupam. 114 00:06:43,640 --> 00:06:45,120 - That... - She'll put you in your place. 115 00:06:45,160 --> 00:06:48,560 - You need to move back. - This man needs an entrepreneur like you. 116 00:06:48,680 --> 00:06:50,440 - Yeah! He needs some schooling also. - To control him. 117 00:06:50,440 --> 00:06:52,160 With your permission, 118 00:06:52,240 --> 00:06:53,360 may I clarify? 119 00:06:53,440 --> 00:06:55,360 My question to you was 120 00:06:55,480 --> 00:06:57,400 that your family has been in this business for 40 years, 121 00:06:57,440 --> 00:07:02,040 - so how did you contribute to modernise it? - Yes! 122 00:07:02,160 --> 00:07:04,400 - I will explain. - Okay! 123 00:07:04,560 --> 00:07:06,920 40 years ago, when our family started this business, 124 00:07:07,000 --> 00:07:11,040 they used to make 5-10 kilo blocks of jaggery. 125 00:07:11,640 --> 00:07:15,400 It was used for animal feed, 126 00:07:15,520 --> 00:07:17,000 liquor industry, 127 00:07:17,160 --> 00:07:19,600 and also for human consumption. 128 00:07:20,240 --> 00:07:23,320 - Where are you from? - This is in Chhatrapati Sambhajinagar. 129 00:07:23,440 --> 00:07:25,720 It was known as Aurangabad. 130 00:07:25,800 --> 00:07:28,400 - Okay! Are you doing it from there? - Yes. 131 00:07:28,480 --> 00:07:30,520 In 2014, 132 00:07:30,640 --> 00:07:32,080 they realised that many people 133 00:07:32,160 --> 00:07:35,320 were producing the same product, turning it into a commodity. 134 00:07:35,440 --> 00:07:36,840 The margin wasn't good. 135 00:07:36,920 --> 00:07:39,560 In 2014, they shut down the plant. 136 00:07:39,640 --> 00:07:42,960 And after that, our thought process 137 00:07:43,040 --> 00:07:47,800 was to create jaggery that humans could consume. 138 00:07:48,040 --> 00:07:51,240 We know that the spices are adulterated. 139 00:07:51,320 --> 00:07:53,880 - Jaggery has much more adulteration. - Really? 140 00:07:53,960 --> 00:07:57,480 They add lime to whiten it, colour it to make it black, 141 00:07:57,600 --> 00:07:58,960 and use a lot of sulphur 142 00:07:59,080 --> 00:08:00,560 and cleansing agents in the process. 143 00:08:00,720 --> 00:08:03,040 In reality, no one can make jaggery 144 00:08:03,160 --> 00:08:05,040 without adding chemicals to it. That was the problem. 145 00:08:05,080 --> 00:08:06,840 When did you start making them? 146 00:08:06,920 --> 00:08:10,480 - We cracked these products in December 2019. - Okay! 147 00:08:15,000 --> 00:08:17,560 - Jaggery and chickpeas. - Even after many years 148 00:08:17,640 --> 00:08:22,440 we never felt the need to have jaggery. 149 00:08:22,560 --> 00:08:25,200 This happened because the sugar revolution took place. 150 00:08:25,280 --> 00:08:27,480 Sugar was convenient to use. 151 00:08:27,600 --> 00:08:30,480 All you have to do is take sugar and add it to your tea 152 00:08:30,640 --> 00:08:31,960 or milk. 153 00:08:32,040 --> 00:08:34,360 Jaggery comes in blocks. 154 00:08:34,440 --> 00:08:37,040 You don't have the time to manually break the block, Aman. 155 00:08:37,560 --> 00:08:39,520 That's why you use sugar. 156 00:08:39,680 --> 00:08:41,720 - Okay, ma'am! - Yes. 157 00:08:42,680 --> 00:08:44,520 [in Marathi] I liked your pitch. 158 00:08:44,640 --> 00:08:46,360 - Thank you! - [in Marathi] Thanks. 159 00:08:46,440 --> 00:08:49,320 I believe this jaggery trend. 160 00:08:49,400 --> 00:08:51,200 We've replaced it in our household. 161 00:08:51,280 --> 00:08:53,080 - Really? - My parents have started using 162 00:08:53,160 --> 00:08:54,400 - jaggery. - Replaced sugar with jaggery? 163 00:08:54,400 --> 00:08:55,520 Jaggery powder. 164 00:08:55,600 --> 00:08:58,640 I don't know the brand that they buy, but it's not like this. 165 00:08:58,760 --> 00:09:00,440 It's this big a piece and 166 00:09:00,560 --> 00:09:02,760 the shape is crooked and odd. 167 00:09:02,840 --> 00:09:03,880 Yes! It's typical... 168 00:09:04,000 --> 00:09:05,560 You have to break that too. 169 00:09:05,680 --> 00:09:07,560 But I've noticed that when you 170 00:09:07,680 --> 00:09:10,480 add a jaggery cube to tea, it won't dissolve. 171 00:09:10,800 --> 00:09:13,440 - I can see you have jaggery powder. - Yes. 172 00:09:13,560 --> 00:09:15,040 What is jaggery cube used for? 173 00:09:15,160 --> 00:09:17,200 After a meal 174 00:09:17,280 --> 00:09:18,640 you want to eat something sweet, 175 00:09:18,720 --> 00:09:22,160 so you have sweets made from sugar. 176 00:09:22,240 --> 00:09:24,960 If you replace them with jaggery cubes, you'll get an energy boost 177 00:09:25,040 --> 00:09:27,200 without consuming refined sugar 178 00:09:27,280 --> 00:09:30,040 or artificial colours. 179 00:09:30,160 --> 00:09:31,720 And your job will be done. 180 00:09:31,800 --> 00:09:32,920 And globally... 181 00:09:33,520 --> 00:09:35,720 - I hope it doesn't get worse. - 'Job will be done.' 182 00:09:35,800 --> 00:09:39,640 And globally, is your USP 183 00:09:44,480 --> 00:09:46,360 One is cubes. 184 00:09:46,440 --> 00:09:49,160 You could say that it has brought convenience. 185 00:09:49,320 --> 00:09:52,240 And the second one is innovative flavours. 186 00:09:56,640 --> 00:09:59,560 ...and then this powder. You don’t need to add any extra spices, 187 00:09:59,640 --> 00:10:01,560 sugar, or other sweeteners. 188 00:10:01,640 --> 00:10:04,000 It functions as a 2-in-1 solution. And your tea is ready. 189 00:10:04,080 --> 00:10:06,120 But anyone can copy that. There isn't... 190 00:10:06,240 --> 00:10:07,760 It will lack precision. 191 00:10:07,840 --> 00:10:09,400 If you've noticed, 192 00:10:09,480 --> 00:10:12,160 many brands have copied us. 193 00:10:12,440 --> 00:10:16,440 They've not cracked 5 grams. 194 00:10:17,200 --> 00:10:19,840 They can make 10-15 grams. 195 00:10:19,960 --> 00:10:22,240 But if you look at the precision of cubes... 196 00:10:22,400 --> 00:10:23,880 What's so difficult in this? 197 00:10:23,960 --> 00:10:25,400 - You just have to cut it. What is the big deal? - No! 198 00:10:25,400 --> 00:10:27,440 We have cracked the SOPs 199 00:10:27,560 --> 00:10:30,880 regarding the temperature and duration 200 00:10:39,400 --> 00:10:41,040 Where did you get the packaging and all made? 201 00:10:41,080 --> 00:10:42,560 How did you start? 202 00:10:42,640 --> 00:10:46,680 As I mentioned, in December 2019, the cube was ready. 203 00:10:46,760 --> 00:10:48,160 There was no packaging. 204 00:10:48,240 --> 00:10:52,040 I was fresh out of college and didn’t know what packaging was. 205 00:10:52,120 --> 00:10:57,200 - Thankfully, in February of 2020, APEDA gave us... - In Dubai. 206 00:11:12,360 --> 00:11:14,680 The experience in Dubai was a major turning point for us. 207 00:11:14,760 --> 00:11:16,360 We realised 208 00:11:16,440 --> 00:11:18,120 there was so much demand from abroad, 209 00:11:18,240 --> 00:11:20,200 while in India, people are already consuming jaggery. 210 00:11:20,240 --> 00:11:23,440 If we take this seriously, this can be a very big business. 211 00:11:23,560 --> 00:11:26,440 There are companies like 24 Mantra and Organic India. 212 00:11:31,800 --> 00:11:33,560 Please share the landscape of the market. 213 00:11:33,680 --> 00:11:35,320 The total market size 214 00:11:35,400 --> 00:11:38,160 is around Rs. 6,500 crores. 215 00:11:38,280 --> 00:11:39,640 - Global? - In India. 216 00:11:39,720 --> 00:11:41,720 - In India? - Yes. That's the jaggery market in India. 217 00:11:41,720 --> 00:11:44,280 Do you have any information about the global market size for jaggery? 218 00:11:44,320 --> 00:11:46,360 USD 4.2 billion. 219 00:11:47,440 --> 00:11:50,480 Where is the highest consumption of jaggery, in the US or China? 220 00:11:50,560 --> 00:11:52,280 China is the biggest importer. 221 00:11:59,600 --> 00:12:01,520 Should I go over the unit economics? 222 00:12:01,600 --> 00:12:03,280 [laughing] 223 00:12:03,360 --> 00:12:05,320 Feel free to share whatever you want. 224 00:12:05,400 --> 00:12:10,520 Last year, we generated a revenue of Rs. 1.48 crores. 225 00:12:11,760 --> 00:12:16,520 - This year? - In August, our sales were Rs. 37 lakhs. 226 00:12:17,000 --> 00:12:20,240 In September, Rs. 48 lakhs. 227 00:12:20,360 --> 00:12:23,320 And in October, Rs. 69 lakhs. 228 00:12:23,640 --> 00:12:26,000 Well done. You are growing rapidly. 229 00:12:26,080 --> 00:12:27,880 - People consume it more in winter. - In winter, people 230 00:12:27,920 --> 00:12:30,440 consume jaggery a lot. 231 00:12:30,560 --> 00:12:32,480 What are your estimated sales for this year? 232 00:12:43,520 --> 00:12:47,000 Currently, we are guessing 20%. 233 00:12:47,080 --> 00:12:49,480 But we are in talks 234 00:12:49,560 --> 00:12:52,240 with the biggest wholesaler in the US, 235 00:12:52,400 --> 00:12:55,720 and they are very interested. We have a visit scheduled. 236 00:12:55,800 --> 00:12:57,840 If it goes well, 237 00:12:57,960 --> 00:13:01,520 they will be buying approximately 45 tonnes from us. 238 00:13:01,600 --> 00:13:03,440 Tonnes? Do they take it in packs? 239 00:13:03,560 --> 00:13:05,720 - Yes, but... - Branded? 240 00:13:05,800 --> 00:13:07,960 Yes! Whatever we export 241 00:13:08,040 --> 00:13:10,360 or sell in the local markets 242 00:13:10,480 --> 00:13:12,440 has our brand on it. 243 00:13:12,520 --> 00:13:13,800 - In this format? - Yes. 244 00:13:13,920 --> 00:13:15,920 Could you break down the Rs. 69 lakhs? 245 00:13:16,040 --> 00:13:18,240 - Which channels are contributing how much? - Okay. 246 00:13:18,440 --> 00:13:22,280 Most of the contribution comes from the offline market. 247 00:13:22,400 --> 00:13:25,560 From GT, we get 45% 248 00:13:25,680 --> 00:13:27,440 and 15% from modern trade, 249 00:13:27,520 --> 00:13:29,640 making a total of 60%. 250 00:13:29,800 --> 00:13:33,440 E-commerce and the website contribute 15%, 251 00:13:33,520 --> 00:13:35,680 exports bring in 20%, 252 00:13:35,760 --> 00:13:38,120 and HoReCa accounts for 5%. 253 00:13:38,360 --> 00:13:40,680 - Okay. And GT is done through distributors. - Yes. 254 00:13:40,760 --> 00:13:42,680 How many stores and states are your products available in? 255 00:13:42,680 --> 00:13:46,280 It is available in approximately 2800 stores. 256 00:13:46,360 --> 00:13:49,240 It's majorly available in 6-7 states. 257 00:13:49,360 --> 00:13:52,720 If someone orders in small quantities, we supply them as well. 258 00:13:52,840 --> 00:13:54,000 How did you enter GT? 259 00:13:54,120 --> 00:13:56,760 - Seeds... - The seeds business is entirely offline. 260 00:13:56,840 --> 00:13:58,920 It's the same distribution chain mostly. 261 00:13:59,120 --> 00:14:04,080 No! We take guidance from them on how to acquire the first customer 262 00:14:04,240 --> 00:14:05,800 - and how to approach them. - Well done. 263 00:14:05,880 --> 00:14:07,880 We learn all these aspects from them, 264 00:14:07,960 --> 00:14:10,200 as the seeds business is entirely offline. 265 00:14:10,320 --> 00:14:12,680 And as I mentioned, we used to do a lot of free sampling. 266 00:14:12,760 --> 00:14:15,400 For example, if we kept 10 pouches, 267 00:14:15,600 --> 00:14:18,200 the distributor would offer 268 00:14:18,320 --> 00:14:19,880 a bite to their customers. 269 00:14:19,960 --> 00:14:23,360 And the customers were gladly buying two pouches. 270 00:14:24,200 --> 00:14:25,640 Show us your margin structure. 271 00:14:25,720 --> 00:14:29,000 Okay! Our hero product is 5-Gram Gud Bites 272 00:14:29,840 --> 00:14:32,120 with an MRP of Rs. 89. 273 00:14:32,240 --> 00:14:34,320 A 5% GST is applied, 274 00:14:34,400 --> 00:14:36,120 which amounts to Rs. 4.5. 275 00:14:36,200 --> 00:14:41,000 This brings our net price to Rs. 84.5, which is 95% of the MRP. 276 00:14:41,240 --> 00:14:45,600 Next, our raw material cost is 15%, 277 00:14:45,760 --> 00:14:48,120 inward logistics accounts for 3%, 278 00:14:48,240 --> 00:14:50,080 and packaging and labelling make up 2%. 279 00:14:50,200 --> 00:14:53,120 This means our total COGS is 20%. 280 00:14:53,320 --> 00:14:56,920 - As a result, our gross margin is 75%. Wow! 281 00:14:57,000 --> 00:14:59,160 Which comes to Rs. 66.7. 282 00:14:59,280 --> 00:15:03,960 - Fantastic. - After that, we have a distributor margin of Rs. 30, 283 00:15:04,200 --> 00:15:07,120 employee benefit expenses are 18%, 284 00:15:07,200 --> 00:15:08,800 shipping costs are 6%, 285 00:15:08,920 --> 00:15:11,440 and marketing expenses are 4.8%. 286 00:15:11,600 --> 00:15:14,720 This leads to an EBITDA of 14.2%, 287 00:15:14,800 --> 00:15:16,680 which is Rs. 12.6. 288 00:15:16,840 --> 00:15:19,320 Tell me something, do you receive advance payments in GT 289 00:15:19,400 --> 00:15:20,800 or are you required to extend credit? 290 00:15:20,840 --> 00:15:22,880 We mostly offer credit. 291 00:15:22,960 --> 00:15:24,280 For how many days? 292 00:15:24,400 --> 00:15:25,720 We give 90 days... 293 00:15:25,800 --> 00:15:27,960 - 90 days? - Yes. 294 00:15:28,200 --> 00:15:29,520 That's normal. 295 00:15:29,600 --> 00:15:32,040 It's not normal, especially in the food industry. 296 00:15:32,120 --> 00:15:33,280 - I'll tell you why. - Okay. 297 00:15:33,400 --> 00:15:35,760 During the off-season, like in April and May, 298 00:15:35,840 --> 00:15:39,040 it takes them more time to sell the products during that time. 299 00:15:39,160 --> 00:15:42,200 Currently, the fresh season is October, November, and December, 300 00:15:42,280 --> 00:15:44,120 when production also starts afresh. 301 00:15:44,200 --> 00:15:46,920 - How much were your secondary sales in October? - Rs. 10 lakhs. 302 00:15:47,280 --> 00:15:51,240 - Okay! - The expiry period is one year. 303 00:16:03,280 --> 00:16:05,680 Maybe that's why you get your payment in 90 days. 304 00:16:12,160 --> 00:16:15,280 ...because we wanted them to first get the products to people. 305 00:16:15,360 --> 00:16:16,600 Let them taste it, 306 00:16:16,680 --> 00:16:18,600 and as we establish a hold in the market, 307 00:16:18,680 --> 00:16:20,360 we would then definitely... 308 00:16:20,440 --> 00:16:23,440 - Good strategy. - Absolutely! The only problem with this is... 309 00:16:23,520 --> 00:16:26,360 Aman, let me finish. If you interfere... 310 00:16:26,480 --> 00:16:28,480 You can give your opinion later. 311 00:16:28,800 --> 00:16:30,400 We have a very different opinion on GT. 312 00:16:30,480 --> 00:16:33,520 But in GT, distributors put their money. 313 00:16:33,640 --> 00:16:36,760 - Yes. - So, they treat the products very well. 314 00:16:36,840 --> 00:16:39,400 They respect it and ensure it's not expired. 315 00:16:39,480 --> 00:16:42,120 The distributor stops respecting your inventory 316 00:16:42,240 --> 00:16:44,840 the moment they know that they 317 00:16:50,480 --> 00:16:53,600 There is a saying in the market, 'What is seen, is what gets sold.' 318 00:16:53,680 --> 00:16:54,560 - Yes. - Okay? 319 00:16:54,640 --> 00:16:57,400 You are selling 10 today, you never know, you'll sell 15 tomorrow. 320 00:16:57,520 --> 00:17:00,320 - There will be a day when you sell 20. - The opposite happens. 321 00:17:00,400 --> 00:17:02,680 If his money is invested, the inventory gets over soon. 322 00:17:02,760 --> 00:17:05,200 - If your money is invested, it doesn't clear. - If their brand 323 00:17:05,200 --> 00:17:06,360 - was big, they won't have done that. - No! 324 00:17:06,360 --> 00:17:07,480 - If... - They're learning. 325 00:17:07,560 --> 00:17:08,880 - They are just starting. - I know! 326 00:17:08,920 --> 00:17:10,680 - But 90 days credit... - Seeding the market, 327 00:17:18,160 --> 00:17:20,000 But that is the problem with the business. 328 00:17:20,080 --> 00:17:22,280 - They might get their inventory back. - It's not a problem. 329 00:17:22,280 --> 00:17:23,200 This happens in new businesses. 330 00:17:23,280 --> 00:17:26,240 - Let's move on. Are you not on quick commerce? - No. 331 00:17:26,360 --> 00:17:28,520 - Why? - We did approach, 332 00:17:28,600 --> 00:17:31,000 - but it didn't... - There is a queue. 333 00:17:31,080 --> 00:17:32,160 Yes, we are in the queue. 334 00:17:38,360 --> 00:17:40,240 Which products or brands appear? 335 00:17:40,320 --> 00:17:43,080 24 Mantra Organic and others have jaggery powder. 336 00:17:43,200 --> 00:17:45,520 Is there a significant difference between their pricing and yours? 337 00:17:45,560 --> 00:17:47,000 - Yes. - Does your product cost higher or lower? 338 00:17:47,000 --> 00:17:47,800 It costs more. 339 00:17:47,880 --> 00:17:50,520 - How much more? The basic jaggery and not the flavoured one. - Yes. 340 00:17:50,520 --> 00:17:52,040 It's 1.5 times higher. 341 00:17:52,120 --> 00:17:55,560 If the price is less by 33%, 342 00:17:55,640 --> 00:17:58,880 the customer checks the ratings 343 00:17:59,000 --> 00:18:01,440 and brand. And both these brands are known. 344 00:18:01,520 --> 00:18:03,720 - Hmm! - They don't care 345 00:18:03,800 --> 00:18:05,120 - where it was made. - Right! 346 00:18:05,200 --> 00:18:08,360 - You own a factory, your cost should be less. - Yes. 347 00:18:11,600 --> 00:18:13,520 When we achieve economies of scale... 348 00:18:22,840 --> 00:18:23,960 - Family? - From our farm. 349 00:18:24,080 --> 00:18:24,920 That's what I thought. 350 00:18:25,040 --> 00:18:27,640 Is sugarcane farming a huge business for them? 351 00:18:27,760 --> 00:18:28,920 - It is. - How big? 352 00:18:29,040 --> 00:18:32,680 - We have 400 acres of land. - Wow! 353 00:18:32,800 --> 00:18:37,240 We grow sugarcane on 100-150 acres of land. 354 00:18:46,000 --> 00:18:47,480 It's 60%. 355 00:18:47,600 --> 00:18:50,280 - Compared to buying from the market. - Yes. 356 00:18:50,400 --> 00:18:54,000 - So, your raw material cost is 20%. - Yes. 357 00:18:54,080 --> 00:18:55,880 - You get a discount from your family. - Yes. 358 00:18:55,960 --> 00:18:59,160 - Currently, your profit is 14%. - Hmm. 359 00:18:59,240 --> 00:19:01,640 It will go down slightly. 360 00:19:01,880 --> 00:19:02,880 Why? 361 00:19:02,920 --> 00:19:04,320 If... 362 00:19:04,520 --> 00:19:06,280 - That's a nice question. - If you purchase from the market. 363 00:19:06,320 --> 00:19:07,600 You won't be able to say anything today. 364 00:19:07,640 --> 00:19:09,840 If you have to buy raw materials from the market, 365 00:19:09,920 --> 00:19:12,000 then your profitability will look low. 366 00:19:12,080 --> 00:19:15,520 We would rarely be required to buy it from the market. 367 00:19:16,040 --> 00:19:18,160 Because we can grow as much sugarcane as we want. 368 00:19:18,240 --> 00:19:20,120 We are barely using 5%. 369 00:19:20,200 --> 00:19:23,480 Are there more costs? Can the office be shared 370 00:19:23,560 --> 00:19:25,000 between the two companies? 371 00:19:25,080 --> 00:19:27,920 Yes! The packaging unit is a shared space. 372 00:19:43,320 --> 00:19:45,000 Yes, my family provided the funding. 373 00:19:45,080 --> 00:19:47,200 - How much have they invested? - Rs. 4.5 crores. 374 00:19:47,280 --> 00:19:49,280 How is the equity split? 375 00:19:49,360 --> 00:19:51,280 I have 45%. 376 00:19:51,800 --> 00:19:53,680 I have 25%. 377 00:19:53,760 --> 00:19:56,040 - Okay! - We have two brothers-in-law 378 00:19:56,160 --> 00:19:58,400 who share 15% each. 379 00:19:58,520 --> 00:20:00,680 One of them is head of production. 380 00:20:00,760 --> 00:20:02,000 He handles the entire thing. 381 00:20:02,080 --> 00:20:04,800 And one of them handles R&D. 382 00:20:04,960 --> 00:20:07,280 - Is he involved full-time? - Yes, he is. 383 00:20:08,280 --> 00:20:11,640 Preeti and Sayali, what are you doing on Shark Tank? 384 00:20:12,080 --> 00:20:14,160 You dominate the world of quick commerce. 385 00:20:14,280 --> 00:20:15,880 You're the king of e-commerce. 386 00:20:15,960 --> 00:20:17,480 We cracked GT. 387 00:20:17,560 --> 00:20:21,680 In order to grow the company, we need you. 388 00:20:21,760 --> 00:20:25,720 - Mentorship is one of the main things we are looking at. - Yes. 389 00:20:25,800 --> 00:20:29,400 Okay! Now that you are direct, I will do the same. 390 00:20:31,400 --> 00:20:33,000 I found both of you interesting 391 00:20:33,080 --> 00:20:34,320 - as entrepreneurs. - Thank you! 392 00:20:34,360 --> 00:20:37,000 And Preeti, you have a good hold on your business, 393 00:20:37,080 --> 00:20:39,200 management and strategy. 394 00:20:39,320 --> 00:20:41,720 And Sayali, you have a good hold on numbers. 395 00:20:41,800 --> 00:20:44,800 People often say that I am very sharp with my responses. 396 00:20:44,880 --> 00:20:46,240 Which is fine. It's a good thing. 397 00:20:46,320 --> 00:20:47,640 You speak your heart. 398 00:20:47,800 --> 00:20:49,560 - For sure. - I think you are the same. 399 00:20:56,400 --> 00:20:58,480 You are already in F2C. 400 00:20:58,600 --> 00:21:00,320 Even if you have to reduce pricing, 401 00:21:00,400 --> 00:21:01,760 that will be easy for you. 402 00:21:01,840 --> 00:21:04,240 You can lower your pricing and leave your competitors behind. 403 00:21:04,320 --> 00:21:05,600 You've got what it takes. 404 00:21:05,720 --> 00:21:07,520 Your main focus is delivering the product. 405 00:21:07,600 --> 00:21:10,040 - And I totally agree with your offline strategy. - Yes. 406 00:21:10,120 --> 00:21:12,680 I agree that you should expand more into the online space. 407 00:21:12,760 --> 00:21:14,840 - There is a massive market for jaggery. - Hmm! 408 00:21:14,960 --> 00:21:17,120 So, I will evaluate accordingly. 409 00:21:17,200 --> 00:21:19,000 So, I'll give you an offer. 410 00:21:20,720 --> 00:21:22,600 Rs. 50 lakhs for 6%. 411 00:21:23,280 --> 00:21:25,440 - Okay! Thank you, Aman. - Thank you, Aman. 412 00:21:28,080 --> 00:21:29,760 Factory-to-consumer model! 413 00:21:29,840 --> 00:21:31,760 What is that? 414 00:21:31,880 --> 00:21:33,000 It's simple. 415 00:21:33,080 --> 00:21:34,960 The factory-to-consumer model is one 416 00:21:35,040 --> 00:21:37,400 where the product manufactured in the factory 417 00:21:37,520 --> 00:21:39,480 is delivered directly to the customer. 418 00:21:39,560 --> 00:21:43,080 It can now be delivered directly or through online channels. 419 00:21:43,160 --> 00:21:45,480 The key difference is that there are no middlemen involved. 420 00:21:45,560 --> 00:21:49,280 Middlemen meaning dealers, retailers, or wholesalers. 421 00:21:49,400 --> 00:21:51,600 The advantage this model offers to companies 422 00:21:51,680 --> 00:21:53,240 is that it allows for better control over their brand 423 00:21:53,280 --> 00:21:56,000 and direct feedback from customers. 424 00:21:56,680 --> 00:21:59,320 I think you're building a solid business foundation. 425 00:21:59,760 --> 00:22:01,680 There is one challenge I can see. 426 00:22:01,760 --> 00:22:05,040 To scale this into a large business, 427 00:22:05,120 --> 00:22:08,480 your capital and supply chain structure 428 00:22:08,600 --> 00:22:10,760 will pose a challenge. 429 00:22:10,880 --> 00:22:14,000 For that reason, I am out. I have feedback for you. 430 00:22:14,080 --> 00:22:17,040 Utilise family members, but also build a strong team, 431 00:22:17,160 --> 00:22:18,880 as you'll need to speed up. 432 00:22:19,000 --> 00:22:20,560 Venture into the e-commerce market. 433 00:22:20,640 --> 00:22:22,480 You have capital available from your family. 434 00:22:22,560 --> 00:22:25,480 Put additional capital 435 00:22:25,560 --> 00:22:27,880 in hiring good talent 436 00:22:28,040 --> 00:22:29,680 and you can afford to do this. 437 00:22:29,760 --> 00:22:30,760 Okay? Best of luck. 438 00:22:30,840 --> 00:22:31,880 - Thank you, Peyush. - Thank you. 439 00:22:31,920 --> 00:22:35,240 I have a similar problem to Peyush's. 440 00:22:35,720 --> 00:22:37,840 As the company scales, 441 00:22:37,920 --> 00:22:40,760 - there are many connected pieces here. - Okay. 442 00:22:40,840 --> 00:22:43,800 And I am unable to find comfort in that connected aspect. 443 00:22:43,880 --> 00:22:45,880 I know, the family is involved. 444 00:22:45,960 --> 00:22:48,960 We started this business inspired by them. 445 00:22:49,040 --> 00:22:52,640 They would be very happy to give all the equity in our names. 446 00:22:52,720 --> 00:22:55,880 We have had a formal conversation on this. 447 00:22:56,000 --> 00:22:58,160 Secondly, they never interfere 448 00:22:58,240 --> 00:22:59,880 in business decisions. 449 00:23:00,000 --> 00:23:02,480 They do what we ask them to do. 450 00:23:02,560 --> 00:23:05,040 - I can see that. - The family is... 451 00:23:05,200 --> 00:23:07,200 - We are doing what you want us to do. - Yes. 452 00:23:07,280 --> 00:23:10,800 We can't do anything because they are blood relatives. 453 00:23:10,960 --> 00:23:13,080 [laughing] 454 00:23:13,160 --> 00:23:14,840 - You can fire them. - Good answer. 455 00:23:14,920 --> 00:23:16,560 But we will tell them 456 00:23:16,680 --> 00:23:19,600 that they won't take any decision, and they will listen. 457 00:23:19,680 --> 00:23:21,800 - No one can say 'no' to you. - That's impossible. 458 00:23:21,880 --> 00:23:23,000 Everyone is scared of you. 459 00:23:23,080 --> 00:23:24,920 I will come back to you. Let's... 460 00:23:25,000 --> 00:23:28,400 Okay! So, Preeti and Sayali, 461 00:23:28,560 --> 00:23:32,480 offering credit on products with a shelf life 462 00:23:32,560 --> 00:23:37,760 of less than a year and expanding so quickly is a considerable risk. 463 00:23:37,840 --> 00:23:40,160 The fact that your Rs. 30 lakhs primary sales 464 00:23:40,280 --> 00:23:41,840 only resulted in Rs. 10 lakhs secondary sales 465 00:23:41,840 --> 00:23:44,720 validates that 466 00:23:44,840 --> 00:23:48,840 you are taking a risk of products being expired 467 00:23:48,920 --> 00:23:50,720 and returned. Which is fine, 468 00:23:50,800 --> 00:23:51,880 because you can afford it. 469 00:23:52,000 --> 00:23:54,120 That's the reason I can't partner with you today. 470 00:23:54,360 --> 00:23:56,880 But the spark, 471 00:23:57,000 --> 00:23:59,400 energy and resilience you carry 472 00:23:59,480 --> 00:24:01,640 has inspired me a lot. 473 00:24:01,760 --> 00:24:04,960 There are very few people who come here and manage to silence Anupam. 474 00:24:05,040 --> 00:24:08,080 - So, I love you for that. - Thank you. 475 00:24:08,400 --> 00:24:11,840 - I'll do the same offer as Aman. - Okay. 476 00:24:12,400 --> 00:24:15,560 On the condition that only both of you have equity. 477 00:24:19,960 --> 00:24:22,320 - Okay, sure. - And all of that. That would be my offer. 478 00:24:26,360 --> 00:24:27,840 - Okay! - You decide. 479 00:24:27,920 --> 00:24:30,120 - Thank you, Anupam. Please give us two minutes. - Yeah! 480 00:24:30,320 --> 00:24:31,520 - Thank you! - Thank you! 481 00:24:33,200 --> 00:24:35,040 [music playing] 482 00:24:38,080 --> 00:24:41,080 Ah... Rs. 50 lakhs for 3%. 483 00:24:41,440 --> 00:24:43,880 [suspenseful music playing] 484 00:24:53,200 --> 00:24:56,320 Aman and Varun, thank you for your offers. 485 00:24:56,400 --> 00:24:58,920 We have a counter for both of you. 486 00:24:59,040 --> 00:25:00,040 All right! 487 00:25:00,120 --> 00:25:01,960 Rs. 50 lakhs for 3%. 488 00:25:04,000 --> 00:25:05,760 - Good! - Good counter. 489 00:25:08,600 --> 00:25:11,760 ...on Rs. 6 crores in sales is quite low. 490 00:25:13,520 --> 00:25:15,520 What about my condition? Is that acceptable? 491 00:25:15,600 --> 00:25:16,800 I am okay with your condition. 492 00:25:16,880 --> 00:25:20,680 But we can't offer that much equity at this amount. 493 00:25:20,760 --> 00:25:21,960 Nice! 494 00:25:22,240 --> 00:25:23,920 Sorry, at this price, I am out. 495 00:25:24,000 --> 00:25:25,840 Okay! Aman? 496 00:25:26,280 --> 00:25:29,160 - Sayali and Preeti, I have no issue with your family. - Yes. 497 00:25:29,240 --> 00:25:30,920 I sense that with your confidence 498 00:25:31,040 --> 00:25:33,720 and the way you're speaking, this will be resolved. It can be solved. 499 00:25:33,720 --> 00:25:35,880 Unfortunately, for me, 500 00:25:35,960 --> 00:25:39,120 Rs. 50 lakhs at just 3% isn't feasible for me. 501 00:25:39,200 --> 00:25:40,400 This requires a lot of work. 502 00:25:40,640 --> 00:25:41,640 Okay! 503 00:25:43,240 --> 00:25:46,120 3% will be too little. It won't be worthwhile. That's why I said 6%. 504 00:25:50,920 --> 00:25:53,400 "Aman is sweeter than jaggery." 505 00:25:54,320 --> 00:25:56,800 How about we meet halfway at 4.5%? 506 00:26:02,600 --> 00:26:05,880 Aman, let's both make an effort to make this work. 507 00:26:10,320 --> 00:26:13,120 Okay! Out of respect, I'll do 508 00:26:13,200 --> 00:26:16,440 Rs. 50 lakhs for 5%. Let's go. 509 00:26:19,240 --> 00:26:20,520 Done? 510 00:26:22,440 --> 00:26:23,480 Hold on! 511 00:26:23,560 --> 00:26:26,240 I must say, Preeti is amazing! 512 00:26:28,320 --> 00:26:30,480 - It's a good deal. - And I am a good guy. 513 00:26:30,720 --> 00:26:31,880 [chuckles] 514 00:26:36,280 --> 00:26:37,440 Ah... 515 00:26:38,680 --> 00:26:42,920 - Okay, we won't haggle for 0.5%. - Good! 516 00:26:43,200 --> 00:26:44,520 Aman, you have a deal. 517 00:26:44,600 --> 00:26:46,560 - Thank you! - Congratulations! 518 00:26:54,880 --> 00:26:56,080 - Congratulations! - Thank you! 519 00:27:06,360 --> 00:27:09,760 We achieved our end goal. 520 00:27:09,840 --> 00:27:14,200 Now, we really want to take this brand and our products 521 00:27:14,400 --> 00:27:15,800 all over the world. 522 00:27:15,880 --> 00:27:17,440 Do you also have sugar mills? 523 00:27:17,520 --> 00:27:20,520 Of course! We have 400 acres of land. What are you saying? 524 00:27:20,680 --> 00:27:21,800 Just saying! 525 00:27:21,880 --> 00:27:22,960 - Thank you! - Thank you! 526 00:27:23,040 --> 00:27:25,680 - That is mine too. - Thank you for the feedback, guys. 527 00:27:25,760 --> 00:27:27,240 Thank you! Best of luck, girls! 528 00:27:30,480 --> 00:27:32,240 Everyone in the family must be afraid of her. 529 00:27:32,480 --> 00:27:33,760 - Yes. - Agreed. 530 00:27:34,200 --> 00:27:35,560 - She is a pampered child. - Awesome! 531 00:27:35,600 --> 00:27:37,440 - True! She is. - The pampered child. 532 00:27:38,600 --> 00:27:40,200 - Hello, Sayali and Preeti. - Hello! 533 00:27:40,320 --> 00:27:43,000 - Welcome to our PokerBaazi zone where you hold the cards. - Thanks. 534 00:28:11,120 --> 00:28:13,800 ...to set priorities for these functions according to their needs. 535 00:28:13,920 --> 00:28:16,800 Similarly, I want you to choose five out of the ten functions 536 00:28:16,920 --> 00:28:18,440 in front of you 537 00:28:18,600 --> 00:28:20,680 and set them in a priority list. 538 00:28:20,800 --> 00:28:21,640 - Okay! - Hmm! 539 00:28:21,720 --> 00:28:24,320 - We will choose 'Product' first. - Okay! 540 00:28:24,640 --> 00:28:27,080 - Where there's a product, there's business.- Agreed. 541 00:28:27,160 --> 00:28:29,680 I think 'Strategy' should go second. 542 00:28:29,840 --> 00:28:30,960 Okay. Interesting! 543 00:28:31,040 --> 00:28:34,240 If you have a product, you need a strategy to sell it. 544 00:28:34,320 --> 00:28:36,840 - Okay! - And then 'Sales'. 545 00:28:37,000 --> 00:28:39,560 - That's right! - Because sales is king! 546 00:28:39,680 --> 00:28:42,920 Once the products are sold, there will be cash flow. 547 00:28:43,040 --> 00:28:44,560 So, 'Finance & Accounting'. 548 00:28:44,640 --> 00:28:46,640 - Okay, very interesting. - Right! 549 00:29:08,960 --> 00:29:11,680 ...the skills and strategy of a true player, visit PokerBaazi app 550 00:29:11,840 --> 00:29:13,640 and play your winning hand and use strategy. 551 00:29:13,720 --> 00:29:15,520 Go and download PokerBaazi app now. 552 00:29:15,680 --> 00:29:18,600 'Shark Tank India, co-presented by ACKO Insurance, 553 00:29:18,680 --> 00:29:20,800 'PokerBaazi and Swiggy Instamart.' 554 00:29:20,880 --> 00:29:23,520 'Co-powered by Adani, and Jaguar Bath and Light.' 555 00:29:23,600 --> 00:29:26,600 'And partners, Rayzon Solar, ICICI Direct, ' 556 00:29:26,680 --> 00:29:28,480 'Lenskart and Sofy.' 557 00:29:29,680 --> 00:29:32,240 [theme music playing] 558 00:29:50,960 --> 00:29:54,680 Sharks, do you know what India's biggest resource is? 559 00:29:55,480 --> 00:29:57,080 Air pollution! 560 00:29:57,640 --> 00:30:01,320 Out of the 15 most polluted cities in the world, 561 00:30:01,520 --> 00:30:02,920 12 are in our country. 562 00:30:06,120 --> 00:30:08,600 You might think, 'What does it matter to me?' 563 00:30:08,680 --> 00:30:10,440 'The pollution is outside and I'm indoors.' 564 00:30:10,520 --> 00:30:13,280 Pollution from outside gets inside, 565 00:30:13,360 --> 00:30:17,400 and your AC keeps recirculating that same polluted air. 566 00:30:23,880 --> 00:30:27,320 ...we transform your AC into a 'Super AC' with AIRTH. 567 00:30:28,520 --> 00:30:30,920 Hello, Sharks. My name is Abhimanyu. 568 00:31:15,320 --> 00:31:16,520 But no one bought them. 569 00:31:16,600 --> 00:31:17,840 [laughing] 570 00:31:17,920 --> 00:31:20,760 Air purifier isn't something people are used to. 571 00:31:20,960 --> 00:31:22,840 Then we created a new product 572 00:31:22,960 --> 00:31:25,440 that can easily be integrated 573 00:31:25,520 --> 00:31:27,760 into the daily lives of ordinary people. 574 00:31:27,840 --> 00:31:30,480 But how do we sell a new product 575 00:31:30,560 --> 00:31:33,880 that no one has ever heard of? 576 00:31:34,160 --> 00:31:35,800 We faced a lot of setbacks. 577 00:31:36,160 --> 00:31:37,920 Investors backed out 578 00:31:38,080 --> 00:31:39,680 and some teammates left as well. 579 00:31:40,040 --> 00:31:42,280 People claimed that no one would buy this product 580 00:31:42,360 --> 00:31:43,560 and that everyone would laugh at us. 581 00:31:43,560 --> 00:31:44,960 But we are proud that 582 00:31:45,160 --> 00:31:48,080 we didn't just launch a new product, we created a whole new category. 583 00:31:48,440 --> 00:31:52,120 Today, this technology tested from IIT Kanpur and IIT Delhi, 584 00:31:52,240 --> 00:31:55,760 has successfully upgraded the ACs in more than 25,000 homes. 585 00:31:56,400 --> 00:31:59,000 In the future, along with home AC units, 586 00:31:59,080 --> 00:32:02,640 we will launch products designed for car and building ACs. 587 00:32:12,480 --> 00:32:13,680 Our ask is 588 00:32:13,760 --> 00:32:16,200 Rs. 60 lakhs for 1% in the company. 589 00:32:16,280 --> 00:32:17,840 - Nice! Very nice. - Too good. 590 00:32:38,680 --> 00:32:40,440 ...it should be under 30. 591 00:32:40,520 --> 00:32:42,040 - That... - That's the healthy zone. 592 00:32:42,160 --> 00:32:44,040 In Delhi, it's around 500. 593 00:32:44,120 --> 00:32:45,440 Sir, I am from Delhi. 594 00:32:46,680 --> 00:32:48,520 This is a normal AC. 595 00:32:49,080 --> 00:32:51,520 It has filters installed. 596 00:32:51,600 --> 00:32:53,800 These are mesh filters. 597 00:32:54,200 --> 00:32:56,280 A lot of companies claim 598 00:32:56,440 --> 00:32:59,080 - that they give PM filters to give you clean air. - Correct. 599 00:32:59,160 --> 00:33:00,720 That is this small filter. 600 00:33:00,800 --> 00:33:02,320 The small one. 601 00:33:02,400 --> 00:33:04,920 And then you also have AC filters, 602 00:33:05,000 --> 00:33:08,320 which you can buy from e-commerce. It's called 'AC filter'. 603 00:33:08,560 --> 00:33:10,040 This is that filter. 604 00:33:10,160 --> 00:33:12,280 We have all three here. 605 00:33:12,400 --> 00:33:14,840 [music playing] 606 00:33:17,320 --> 00:33:21,200 Now, PM2.5 is 47. 607 00:33:21,280 --> 00:33:23,560 Let's test the single pass efficiency. 608 00:33:23,640 --> 00:33:27,440 How clean is this air that is being filtered out? 609 00:33:27,600 --> 00:33:31,320 You can see that PM2.5 was around 50. 610 00:33:31,400 --> 00:33:33,240 It will still be around 50. 611 00:33:34,800 --> 00:33:38,480 Confirming that single pass efficiency is almost 0%. 612 00:33:38,560 --> 00:33:40,360 We will check our product the same way. 613 00:33:40,480 --> 00:33:41,880 - Yes, sure! - Okay! 614 00:33:42,000 --> 00:33:43,600 Now, we will show you 615 00:33:43,960 --> 00:33:46,240 AIRTH's AC purifier. 616 00:33:46,440 --> 00:33:48,240 It has three components. 617 00:33:48,600 --> 00:33:51,560 The first one is, can you see this shiny part? 618 00:33:51,640 --> 00:33:53,160 It is a magnetic tape. 619 00:33:53,320 --> 00:33:56,160 You have to put one magnetic strip on your AC 620 00:33:56,280 --> 00:33:58,160 and the second one is here. 621 00:33:58,280 --> 00:33:59,960 So that it sticks. 622 00:34:00,040 --> 00:34:01,960 Second is foam. 623 00:34:02,040 --> 00:34:05,400 That's because each AC has its own unique curve. 624 00:34:05,480 --> 00:34:06,600 We have to install it in every AC. 625 00:34:06,640 --> 00:34:10,920 The foam helps with installing the product on any AC. 626 00:34:11,080 --> 00:34:13,920 And then the third one is the filter section area. 627 00:34:14,120 --> 00:34:15,800 The colour you can see 628 00:34:15,880 --> 00:34:18,440 is a coating that we have filed for a patent. 629 00:34:18,520 --> 00:34:21,720 It can also destroy microorganisms too. 630 00:34:30,280 --> 00:34:32,800 We are placing the monitor here 631 00:34:33,040 --> 00:34:35,360 to measure the single pass efficiency. 632 00:34:38,240 --> 00:34:40,720 [music playing] 633 00:34:41,960 --> 00:34:42,840 Wow! 634 00:34:42,960 --> 00:34:43,960 Very nice. 635 00:34:44,000 --> 00:34:47,240 - What? Wow! - It's at 30, 29, 636 00:34:47,320 --> 00:34:49,240 - 27... - Oh my God! 637 00:34:49,400 --> 00:34:50,200 Yes! 638 00:34:50,280 --> 00:34:53,240 We are witnessing such an impressive demo for the first time. 639 00:35:03,080 --> 00:35:05,080 If it was 100, it would measure around 30, sir. 640 00:35:05,160 --> 00:35:06,440 Do one thing, 641 00:35:06,560 --> 00:35:09,680 give us the product so that we can check it out while you pitch. 642 00:35:10,000 --> 00:35:11,840 I'll take one and give the rest to others. 643 00:35:12,360 --> 00:35:14,640 [music playing] 644 00:35:15,160 --> 00:35:16,360 Thank you, Ravi! 645 00:35:16,480 --> 00:35:17,480 Thank you, ma'am. 646 00:35:17,720 --> 00:35:18,760 Thanks, mate. 647 00:35:19,760 --> 00:35:21,920 [music playing] 648 00:35:26,040 --> 00:35:27,720 I won't turn on the AC in December. 649 00:35:27,800 --> 00:35:30,680 An air purifier is made of a body, a fan and filter. 650 00:35:30,760 --> 00:35:33,280 There is a 'fan mode' in ACs. 651 00:35:33,520 --> 00:35:35,280 So, we are giving a use case 652 00:35:35,360 --> 00:35:38,000 that tells you how you can use your AC 653 00:35:38,080 --> 00:35:41,240 to ensure clean air and save yourself from air pollution. 654 00:35:41,360 --> 00:35:43,200 When you switch the AC to fan mode, 655 00:35:54,320 --> 00:35:57,040 Remove this attachment, 656 00:35:57,120 --> 00:35:58,360 and this is the Summer Version. 657 00:35:58,400 --> 00:35:59,640 It's modular. 658 00:35:59,720 --> 00:36:00,720 It is. 659 00:36:09,320 --> 00:36:10,600 ...without cooling the air. 660 00:36:10,680 --> 00:36:12,680 Electricity consumption is also less. 661 00:36:12,760 --> 00:36:15,280 But, what's the problem if we always use both? 662 00:36:15,360 --> 00:36:16,360 Airflow is low. 663 00:36:16,440 --> 00:36:18,200 - When you use both together. - Yes. 664 00:36:18,280 --> 00:36:19,520 This doesn't give less air. 665 00:36:19,640 --> 00:36:21,040 When it is blowing air 666 00:36:21,160 --> 00:36:24,760 - if the flow reduces because of this... - Yes? 667 00:36:24,840 --> 00:36:26,840 - the electricity bill should rise, right? - Correct. 668 00:36:26,880 --> 00:36:27,760 How high? 669 00:36:27,840 --> 00:36:29,640 It rises 1-3%. 670 00:36:29,760 --> 00:36:32,120 Which is, around, 30-45 watts. 671 00:36:41,960 --> 00:36:44,280 You're from Bihar. You're from Delhi. 672 00:36:44,400 --> 00:36:45,680 How did you meet each other? 673 00:36:45,760 --> 00:36:47,880 So, I'm born and brought up in Delhi. 674 00:36:47,960 --> 00:36:50,440 One of the main reasons I started working on air. 675 00:36:50,600 --> 00:36:52,040 Later... 676 00:36:52,120 --> 00:36:54,680 I did my bachelor's from NIT Kurukshetra. 677 00:36:54,760 --> 00:36:57,040 2012-2016, Civil Engineering. 678 00:36:57,160 --> 00:36:59,280 - Majored in Environment. And then... - Wow! 679 00:36:59,600 --> 00:37:01,600 - 2017-2019... - Nice. 680 00:37:01,760 --> 00:37:03,240 I did my Masters from IIT Mumbai. 681 00:37:12,520 --> 00:37:14,320 He was the Project Manager. 682 00:37:14,400 --> 00:37:16,880 When students like me had ideas 683 00:37:16,960 --> 00:37:19,320 he helped with his guidance. 684 00:37:19,400 --> 00:37:22,840 - Okay. - Later, I started Airth in 2020. 685 00:37:29,480 --> 00:37:30,880 Then, I went to Gwalior. 686 00:37:31,000 --> 00:37:32,720 I did my B.Tech in Mechanical Engineering. 687 00:37:32,800 --> 00:37:34,200 And then, I came to Gurugram. 688 00:37:34,320 --> 00:37:36,320 I did a private job, which I did not enjoy. 689 00:37:36,400 --> 00:37:38,120 Then, I began my first own start-up. 690 00:37:38,200 --> 00:37:39,680 That was into food and logistics. 691 00:37:44,280 --> 00:37:45,920 So, I had to shut down the operations. 692 00:37:46,040 --> 00:37:47,080 Later, I... 693 00:37:47,160 --> 00:37:49,600 learned about IIT Mumbai's pre-incubation programme. 694 00:37:49,640 --> 00:37:51,800 I applied for that and I got selected. 695 00:37:52,880 --> 00:37:53,880 What is the equity split? 696 00:37:54,000 --> 00:37:55,840 - I have 64%. - Yes. 697 00:37:55,920 --> 00:37:57,400 Abhimanyu has 2%. 698 00:37:57,480 --> 00:37:58,840 [chuckling] 699 00:37:58,960 --> 00:37:59,720 Where's the rest? 700 00:37:59,800 --> 00:38:02,800 The rest 17% is with investors. 701 00:38:02,920 --> 00:38:05,200 There's another Director who has 3%. 702 00:38:05,400 --> 00:38:07,520 And, 7% ESOPs. 703 00:38:07,600 --> 00:38:10,360 4%, uh, IIT Kanpur. 704 00:38:10,720 --> 00:38:14,680 Then, 1% is with a filter manufacturer. 705 00:38:14,760 --> 00:38:17,280 - Who is it? - Their name is Kanwal Enterprises. 706 00:38:17,360 --> 00:38:20,720 And, remaining is with our three mentors. 707 00:38:20,800 --> 00:38:22,240 And, who is your investor? 708 00:38:22,320 --> 00:38:24,800 Tandon group. So, they came in 2021. 709 00:38:24,880 --> 00:38:26,960 How much lifetime capital have you raised? 710 00:38:27,080 --> 00:38:28,160 3.3 crores. 711 00:38:28,240 --> 00:38:31,320 Do you ever feel the need for a co-founder? 712 00:38:31,440 --> 00:38:32,960 - Yes! - In what area? 713 00:38:33,040 --> 00:38:34,080 In all areas, if possible. 714 00:38:34,120 --> 00:38:36,200 It would be great if I could only manage technical. 715 00:38:36,280 --> 00:38:38,040 - But... - But, Abhimanyu can't do that? 716 00:38:38,160 --> 00:38:40,560 Abhimanyu has taken care of operations 717 00:38:40,640 --> 00:38:42,280 which is a huge headache. 718 00:38:42,360 --> 00:38:45,200 So, he has superbly managed the whole operations part. 719 00:38:45,280 --> 00:38:47,680 - He's your right-hand man, in a way. - Yes. 720 00:38:47,760 --> 00:38:50,040 - So, will you raise his equity with time? - Yes, correct. 721 00:38:50,120 --> 00:38:50,960 How high? 722 00:38:51,040 --> 00:38:52,800 I would be happy with 50-50 also. 723 00:38:52,880 --> 00:38:54,240 - I mean, between us. - Okay. 724 00:38:54,320 --> 00:38:55,680 Basis on contribution, definitely. 725 00:38:55,720 --> 00:38:57,680 - Don't forget what he's saying, Abhimanyu. - Yes. 726 00:38:58,680 --> 00:39:01,240 There are other filters available in the market for ACs. 727 00:39:01,360 --> 00:39:04,120 It will be a huge challenge if you fit it in your AC. 728 00:39:04,240 --> 00:39:05,240 Two things will happen. 729 00:39:05,280 --> 00:39:08,200 The dust-holding capacity of other filters is very low. 730 00:39:23,160 --> 00:39:24,440 You have it with you. 731 00:39:24,520 --> 00:39:26,760 You've used it for three months. 732 00:39:26,840 --> 00:39:29,360 But, all the dust and germs are inside it. 733 00:39:29,440 --> 00:39:32,800 Often, disease transmission happens due to resuspension. 734 00:39:32,880 --> 00:39:36,200 So, an air purifier can only protect you from air pollution. 735 00:39:50,000 --> 00:39:51,800 Sir, we filed a patent 736 00:39:58,560 --> 00:40:02,240 which suggests it is unique, novel and has industrial application. 737 00:40:04,480 --> 00:40:06,520 WIPO. The full form of WIPO is 738 00:40:06,600 --> 00:40:09,760 World Intellectual Property Organization. 739 00:40:10,400 --> 00:40:13,400 This is an agency of the United Nations 740 00:40:13,480 --> 00:40:14,720 whose work is... 741 00:40:14,800 --> 00:40:16,520 to protect and promote 742 00:40:16,600 --> 00:40:19,760 the intellectual properties worldwide 743 00:40:19,880 --> 00:40:22,800 like copyrights, patents and trademarks. 744 00:40:22,880 --> 00:40:27,000 This ensures that inventors and creators get their fair share 745 00:40:27,080 --> 00:40:29,960 and, innovations are used correctly. 746 00:40:31,200 --> 00:40:33,520 We have filed for two more additional patents. 747 00:40:51,400 --> 00:40:54,320 - And, meanwhile, it needs no maintenance or cleaning? - Yes. 748 00:40:54,400 --> 00:40:55,480 What is its price? 749 00:41:04,760 --> 00:41:07,560 An AC costs Rs. 30,000. 750 00:41:07,640 --> 00:41:08,720 They add the filter... 751 00:41:08,840 --> 00:41:12,520 and, after discounts, they sell it for Rs. 42-45,000. 752 00:41:12,600 --> 00:41:15,000 You'll have to pay Rs. 12,000 extra 753 00:41:26,000 --> 00:41:27,480 ...with a HEPA filter 754 00:41:27,560 --> 00:41:29,800 cannot sell for Rs. 32-33,000. 755 00:41:29,920 --> 00:41:33,760 The suppliers behind you will refuse you for this variant. 756 00:41:33,880 --> 00:41:36,240 Plus, it reduces the energy star rating. 757 00:41:36,320 --> 00:41:39,040 So, that's why, we sell more than such a huge 758 00:41:39,120 --> 00:41:40,880 legacy company. 759 00:41:41,320 --> 00:41:43,480 Where and how does this sell currently? 760 00:41:43,560 --> 00:41:45,160 How does the customer find out? 761 00:41:51,840 --> 00:41:55,160 - 70-80% of our sales. - Wow. 762 00:41:58,720 --> 00:42:02,360 So, we closed FY23-24 at 2.1 crores. 763 00:42:02,480 --> 00:42:05,000 In the last six months, we have done 2.2. 764 00:42:05,080 --> 00:42:07,440 Last month, we did 44 lakhs. 765 00:42:12,240 --> 00:42:13,120 The rest is net. 766 00:42:13,240 --> 00:42:15,680 - It will rise now as pollution has just started. - Yes, correct. 767 00:42:15,720 --> 00:42:19,360 So, we should be closing this financial year at 6-7 crores. 768 00:42:19,440 --> 00:42:21,080 Last year, how much did you make 769 00:42:21,120 --> 00:42:23,240 at the same time, in the first 6 months? 770 00:42:23,400 --> 00:42:24,960 As opposed to 2.2? 771 00:42:25,120 --> 00:42:26,320 7 plus 20. 772 00:42:27,400 --> 00:42:29,040 Year on year is 10x, then. 773 00:42:29,320 --> 00:42:30,040 - Yes. - Wow. 774 00:42:30,120 --> 00:42:31,680 I'll understand the unit economics. 775 00:42:31,760 --> 00:42:33,480 We sell it for Rs. 2,200. 776 00:42:33,600 --> 00:42:34,840 We remove GST. 777 00:42:34,920 --> 00:42:37,040 It comes to almost Rs. 1864. 778 00:42:37,120 --> 00:42:40,520 Then, our COGS is Rs. 620, 33%. 779 00:42:40,600 --> 00:42:43,480 - So, GP is 67% right now. - Hmm. 780 00:42:43,640 --> 00:42:45,840 Then, our platform fees. 781 00:42:45,960 --> 00:42:48,840 Around Rs. 266, 15%. 782 00:42:48,920 --> 00:42:51,960 - Then, our logistics, Rs. 100. - Okay. 783 00:42:52,040 --> 00:42:54,960 - CAC, averaging out, Rs. 300. - Yes? 784 00:42:55,040 --> 00:42:58,200 Other than that, fixed cost is Rs. 370. 785 00:42:58,600 --> 00:43:02,040 So now, CM 1 is almost Rs. 880 786 00:43:02,120 --> 00:43:05,240 and, CM 2 is Rs. 580. 787 00:43:05,320 --> 00:43:08,960 EBITDA-wise, there was a profit of almost Rs. 200, 11%. 788 00:43:09,040 --> 00:43:10,320 How much money did you make last year? 789 00:43:10,360 --> 00:43:12,600 - Sir, we did a loss of 43 lakhs. - Why? 790 00:43:12,680 --> 00:43:16,120 In the first 2 quarters, we only made sales of 7 and 20 lakhs. 791 00:43:16,240 --> 00:43:18,040 That's why. This year... 792 00:43:18,160 --> 00:43:20,520 we are mostly at break-even, month on month. 793 00:43:20,640 --> 00:43:23,680 In the two months of monsoon season, July and August 794 00:43:23,760 --> 00:43:27,080 we made a loss of 10-12 lakhs every month, EBITDA wise 795 00:43:27,160 --> 00:43:29,840 because of which, our EBITDA is -9% now. 796 00:43:29,920 --> 00:43:32,560 Otherwise, we are almost at break-even every month. 797 00:43:32,640 --> 00:43:34,480 But, will you make a profit this year or face a loss? 798 00:43:34,520 --> 00:43:35,680 We'll make a total profit. 799 00:43:35,760 --> 00:43:36,880 Why does it sell in other areas? 800 00:43:36,920 --> 00:43:39,280 We have more orders from South India than North India. 801 00:43:39,360 --> 00:43:41,320 Pollution is not a serious issue there. 802 00:43:41,400 --> 00:43:42,920 Sales are with what purpose? 803 00:43:43,040 --> 00:43:44,640 One of the top five cities 804 00:43:44,720 --> 00:43:46,640 in the last 6 months was Bangalore. 805 00:43:46,720 --> 00:43:47,880 When we spoke to people... 806 00:43:47,960 --> 00:43:50,400 we understood that the biggest problem is pollen. 807 00:43:56,280 --> 00:43:59,400 that they don't have to clean the inner filter every month. 808 00:43:59,480 --> 00:44:00,920 Some say, doctors said that 809 00:44:00,960 --> 00:44:03,520 he repeatedly falls ill due to polluted AC air. 810 00:44:03,600 --> 00:44:06,160 Someone uses it due to sinus problems. 811 00:44:06,240 --> 00:44:07,600 Okay, Ravi and Abhimanyu. 812 00:44:07,680 --> 00:44:09,640 I think, I really like two things. 813 00:44:09,720 --> 00:44:12,880 One, there is massive growth potential in this category 814 00:44:12,960 --> 00:44:14,520 because, the pollution problem 815 00:44:14,600 --> 00:44:17,400 is present in 12 Indian cities out of top 15. 816 00:44:17,480 --> 00:44:20,160 Unfortunately, it appears that 20-25 more cities will be added 817 00:44:20,240 --> 00:44:23,080 because this problem is arising in tier 2, tier 3 cities too. 818 00:44:23,200 --> 00:44:24,840 I'm really impressed that 819 00:44:24,960 --> 00:44:28,160 in category building businesses, like yours 820 00:44:28,240 --> 00:44:31,680 generally, marketing percentage is very high for growth. 821 00:44:31,760 --> 00:44:34,120 You're marketing with 20% of net revenue 822 00:44:34,240 --> 00:44:35,960 and growing by 3 times this year. 823 00:44:36,040 --> 00:44:39,000 So, I think, genuinely, no better example 824 00:44:39,080 --> 00:44:41,840 can be seen of a product-market fit. 825 00:44:41,920 --> 00:44:43,240 So, I'll make you an offer 826 00:44:43,360 --> 00:44:46,240 which is close to your last round valuation. 827 00:44:48,040 --> 00:44:49,040 Wow! 828 00:44:50,120 --> 00:44:52,000 Mine is simple, man. Uh... 829 00:44:52,400 --> 00:44:54,280 60 lakhs for 1% won't help. 830 00:44:54,360 --> 00:44:56,600 And, I feel, valuation is a little high. 831 00:44:56,840 --> 00:44:58,920 But, I'm willing to make you an offer. 832 00:44:59,160 --> 00:45:01,760 You've made a good innovation and invention. 833 00:45:01,840 --> 00:45:03,920 So, it's important to reach places with it. 834 00:45:04,000 --> 00:45:05,760 I think, price point is decent enough. 835 00:45:05,840 --> 00:45:08,600 So, it's a simple offer. 1 crore. 836 00:45:16,440 --> 00:45:17,320 That's my offer. 837 00:45:17,400 --> 00:45:20,800 Abhimanyu and Ravi, you are honest founders with very high humility. 838 00:45:21,160 --> 00:45:23,720 - Thank you. - I liked that a lot. 839 00:45:23,800 --> 00:45:25,560 But, having said that, I have... 840 00:45:25,640 --> 00:45:28,000 discomfort with one thing, and, for that reason I'm going to be out. 841 00:45:28,040 --> 00:45:29,920 I still don't believe 842 00:45:30,080 --> 00:45:31,560 with much conviction... 843 00:45:31,640 --> 00:45:33,520 It's a great market and business. 844 00:45:33,600 --> 00:45:36,520 The distribution and business management side of things. 845 00:45:36,600 --> 00:45:37,880 Who will scale that? 846 00:45:37,960 --> 00:45:40,040 And, I don't see a big hold on that. 847 00:45:40,120 --> 00:45:43,080 Given the point at which you are standing with the company right now. 848 00:45:43,360 --> 00:45:46,360 And, for that reason, I'm out. 849 00:45:46,720 --> 00:45:49,720 See, what I like about you is, your purpose is very clear. 850 00:45:50,080 --> 00:45:52,440 You are working on this problem. 851 00:45:52,680 --> 00:45:54,680 And, I think, there's resilience too. 852 00:45:54,760 --> 00:45:58,080 The struggle is your cap table right now. 853 00:45:58,160 --> 00:45:59,760 I have always believed that 854 00:45:59,840 --> 00:46:02,120 once the cap table is disturbed 855 00:46:02,520 --> 00:46:05,480 it needs a lot of patience and hard work to improve it. 856 00:46:06,360 --> 00:46:07,440 I don't have that. 857 00:46:08,400 --> 00:46:10,040 So, I'm out. Best of luck. 858 00:46:11,040 --> 00:46:14,240 Such innovations initially feel impossible. 859 00:46:14,640 --> 00:46:17,480 But, slowly, they become irreplaceable in the future. 860 00:46:17,560 --> 00:46:19,440 This seems to be that kind of an innovation. 861 00:46:19,520 --> 00:46:23,240 - Thank you. - Like, I say, VIRUS 1 was made in 3 Idiots in IIT. 862 00:46:23,360 --> 00:46:25,400 You guys went to IIT Mumbai 863 00:46:25,480 --> 00:46:28,160 - and made an AC purifier. Nice. - Air purifier. 864 00:46:28,240 --> 00:46:31,040 One more thing. I felt, your pedigree is very solid. 865 00:46:31,120 --> 00:46:34,720 You've fully given 5-7 years of your lives to this. 866 00:46:34,840 --> 00:46:38,240 To solve air pollution and air-related problems. 867 00:46:38,320 --> 00:46:41,360 And, I hated the design. It will have to be improved, if we go on. 868 00:46:41,480 --> 00:46:45,360 So, I will match Anupam's offer. 869 00:46:45,480 --> 00:46:48,160 - Uh, 1 crore for 5%. - Thank you. 870 00:46:48,480 --> 00:46:49,640 You guys want to think about it? 871 00:46:49,680 --> 00:46:54,040 So, counter offer is, 96 lakh rupees for 3% of the company. 872 00:46:55,280 --> 00:46:57,200 And, you three can come. 873 00:46:59,160 --> 00:47:03,520 I won't have fun at such low equity. Honestly. 874 00:47:03,640 --> 00:47:04,800 Sir, it will be fun. We'll make money. 875 00:47:04,840 --> 00:47:06,560 How much money? 876 00:47:06,640 --> 00:47:08,360 I won't get the time to talk to you. 877 00:47:08,440 --> 00:47:09,640 - So, shall we talk? - No... 878 00:47:09,680 --> 00:47:11,880 - Vineeta, do you want to talk? - Let's talk. 879 00:47:11,960 --> 00:47:13,360 We'll talk to them. 880 00:47:13,680 --> 00:47:14,800 Right? I love what you're doing. 881 00:47:14,840 --> 00:47:16,400 I don't even have a problem 882 00:47:16,480 --> 00:47:18,520 if you take 2 crores for 10%. 883 00:47:19,320 --> 00:47:21,440 All your funding problems will get solved. 884 00:47:22,560 --> 00:47:25,160 I mean, I won't have fun at 1%. 885 00:47:42,280 --> 00:47:43,320 3%, please. 886 00:47:43,400 --> 00:47:45,120 1% extra is advisory 887 00:47:45,200 --> 00:47:47,200 for both of us investing time and effort. 888 00:47:47,280 --> 00:47:49,000 I made you my original offer. 889 00:47:49,120 --> 00:47:52,080 Very close to what you wanted, but, you wanted all three. 890 00:47:52,240 --> 00:47:54,960 Now, multiple Sharks have some value. 891 00:47:55,080 --> 00:47:56,720 I'll definitely make money for you. 892 00:47:56,800 --> 00:47:57,880 Please let's do it at 3%. 893 00:47:57,960 --> 00:48:00,640 We have that belief or we wouldn't write the cheques. 894 00:48:00,720 --> 00:48:02,160 Bro, take more money. 895 00:48:02,200 --> 00:48:03,800 - Take 2 crores for 8%. - Not yet. 896 00:48:03,880 --> 00:48:06,320 - We'll take more at a higher valuation. - Heed me. 897 00:48:06,400 --> 00:48:08,400 What do you want? You want more money? 898 00:48:08,480 --> 00:48:09,560 Would be happy. 899 00:48:12,440 --> 00:48:13,960 I'll lower it a little. 900 00:48:19,200 --> 00:48:21,120 Right now, why are you stuck between 3 and 4? 901 00:48:21,200 --> 00:48:23,000 Offer 3 crores at 10%. 902 00:48:23,080 --> 00:48:25,200 This is very difficult. 903 00:48:40,360 --> 00:48:41,280 Don't do it. 904 00:48:41,360 --> 00:48:42,960 [laughter] 905 00:48:43,040 --> 00:48:44,320 Don't do it, bro. 906 00:48:45,680 --> 00:48:48,440 Gosh! 1 crore at 3.7! 907 00:48:48,800 --> 00:48:49,640 What's the problem? 908 00:48:49,720 --> 00:48:51,640 - This is why he's a weak founder. - What's your problem? 909 00:48:51,680 --> 00:48:53,760 Ravi, what's wrong with 1 crore at 3.7? 910 00:48:54,400 --> 00:48:55,960 Why are you being so difficult? 911 00:48:56,040 --> 00:48:57,600 Take 2 crores, if you want. 912 00:48:57,680 --> 00:48:58,800 One second, I'll get out. 913 00:48:58,920 --> 00:49:01,240 Let me ask one last time. Yes or no, or, I'm out. 914 00:49:03,040 --> 00:49:05,600 I'm not going to argue so much about 0.2 or 0.1. 915 00:49:05,680 --> 00:49:07,080 She'll be alone, then. 916 00:49:07,520 --> 00:49:09,560 So, it's my last offer. Or, I'm out. 917 00:49:19,560 --> 00:49:22,120 [suspenseful music playing] 918 00:49:23,400 --> 00:49:24,400 It's a deal! 919 00:49:24,760 --> 00:49:25,920 - Awesome! - Whoo! 920 00:49:35,280 --> 00:49:38,040 - Sorry. - It's a solid innovation. Useful in the future. 921 00:49:40,040 --> 00:49:41,160 Thank you very much. 922 00:49:41,280 --> 00:49:42,640 It's good to fight for your equity. 923 00:49:42,680 --> 00:49:43,920 - Thank you. - And, very good product. 924 00:49:43,960 --> 00:49:45,440 - Thank you. - Thank you. 925 00:49:46,400 --> 00:49:48,600 Smile a little. You haven't smiled at all. 926 00:49:49,280 --> 00:49:50,480 [camera clicking] 927 00:49:50,880 --> 00:49:52,920 - Thank you very much. Bye. - Good, good, good. 928 00:49:58,520 --> 00:50:00,720 When Vineeta offered the solo deal 929 00:50:00,800 --> 00:50:02,880 I feel, I should have taken it. 930 00:50:02,960 --> 00:50:04,360 Things became messy after that. 931 00:50:04,480 --> 00:50:06,200 Anupam, why didn't you go for this man? 932 00:50:06,320 --> 00:50:08,120 - I did! I did! - He did, at the last. 933 00:50:08,280 --> 00:50:10,280 Anupam, can I say something? Can you listen? 934 00:50:10,440 --> 00:50:11,680 I thought, you were... 935 00:50:12,320 --> 00:50:13,520 - No, no. - on the edge. 936 00:50:13,640 --> 00:50:14,680 - You weren't even sure. - Not at all. 937 00:50:14,720 --> 00:50:17,000 - You thought, let it go. - No, not at all. 938 00:50:17,080 --> 00:50:18,680 - No. - I did not want less than... 939 00:50:18,760 --> 00:50:20,800 When you want it, I've seen how you want it. 940 00:50:20,880 --> 00:50:21,960 It was an option value deal. 941 00:50:22,000 --> 00:50:24,320 Then, you would have done 2 crores-5%, closed the deal. 942 00:50:24,400 --> 00:50:26,080 Not at 5%! 943 00:50:26,160 --> 00:50:27,240 It didn't make sense. 944 00:50:29,560 --> 00:50:31,240 [theme music playing] 945 00:50:35,280 --> 00:50:38,160 Welcome to Acko changemakers, where we really welcome change. 946 00:50:38,240 --> 00:50:41,440 And, we saw a beautiful portrayal of that on our changemakers wall. 947 00:50:41,840 --> 00:50:43,480 Technology isn't only an innovation 948 00:50:43,600 --> 00:50:45,600 it's a means to bring change to a changing world. 949 00:50:45,960 --> 00:50:49,160 And, our changemakers for today are with us, Ravi and Abhimanyu. 950 00:50:49,480 --> 00:50:50,600 How are you, guys? 951 00:50:50,800 --> 00:50:51,560 - Excellent. - Very good. 952 00:50:51,640 --> 00:50:53,360 In Metro cities especially, pollution 953 00:50:53,480 --> 00:50:55,080 has become a huge problem. 954 00:50:55,160 --> 00:50:57,280 So much so, that people have begun to evaluate 955 00:50:57,360 --> 00:50:59,240 if it is even worth it to live here. 956 00:50:59,440 --> 00:51:01,520 - Because, life is at risk. - Yes. 957 00:51:01,600 --> 00:51:03,600 The steps you are taking towards that 958 00:51:03,720 --> 00:51:06,800 are great and we really appreciate the changes that you're bringing. 959 00:51:06,880 --> 00:51:08,240 I want to ask a question 960 00:51:08,360 --> 00:51:10,240 from our audience sitting at home. 961 00:51:10,360 --> 00:51:12,320 What changes can they bring in their lives 962 00:51:12,400 --> 00:51:15,680 which can enable them to take steps to reduce air pollution? 963 00:51:15,800 --> 00:51:17,040 Firstly... 964 00:51:17,280 --> 00:51:19,360 - smokers should quit smoking. - Of course. 965 00:51:19,440 --> 00:51:22,560 Stop the people or family members around you who are smoking 966 00:51:22,640 --> 00:51:24,000 and, don't accept passive smoking. 967 00:51:24,040 --> 00:51:26,000 Secondly, at home... 968 00:51:26,080 --> 00:51:28,560 the incense sticks that we light 969 00:51:28,640 --> 00:51:30,080 do cause pollution. 970 00:51:30,160 --> 00:51:32,960 - Oh! - So, lessen usage of these things. 971 00:51:33,040 --> 00:51:36,240 As less as you can. You can use natural fragrances. 972 00:51:36,440 --> 00:51:39,200 And, thirdly, you should have good 973 00:51:39,320 --> 00:51:41,480 exhaust systems and chimneys. 974 00:51:41,560 --> 00:51:43,520 So that, when food is being cooked 975 00:51:43,600 --> 00:51:46,520 all the oils that spread smells etc. in the air 976 00:51:46,600 --> 00:51:47,800 can be emitted outside home. 977 00:51:47,880 --> 00:51:50,120 And then, upgrade your AC. 978 00:51:50,200 --> 00:51:52,240 It should throw clean air. With Airth. 979 00:51:52,320 --> 00:51:55,040 Of course. We'll use your Airth for everything. 980 00:51:55,120 --> 00:51:56,880 You're bringing a great change. 981 00:51:57,240 --> 00:51:58,680 Exactly like Acko is bringing 982 00:51:58,720 --> 00:52:01,320 a change in insurance with its revolutionary offers. 983 00:52:01,560 --> 00:52:04,600 Avoid incessant calls while buying car insurance. 984 00:52:04,760 --> 00:52:07,960 Avoid the confusion about price and policy coverage. 985 00:52:08,040 --> 00:52:09,880 Simply buy car insurance from Acko. 986 00:52:09,960 --> 00:52:11,840 It's easy, transparent, hassle-free. 987 00:52:12,000 --> 00:52:13,640 And, the premium is perfect. 988 00:52:13,960 --> 00:52:16,480 We appreciate the change you are bringing. 989 00:52:16,600 --> 00:52:18,240 And, for your time given to Shark Tank 990 00:52:18,320 --> 00:52:21,040 we have a gift for you from Shark Tank and Acko. 991 00:52:21,120 --> 00:52:22,240 Thank you, sure. 992 00:52:24,320 --> 00:52:25,320 Here you go. 993 00:52:28,160 --> 00:52:29,280 [camera clicking] 994 00:52:40,480 --> 00:52:42,280 [theme music playing] 995 00:52:50,360 --> 00:52:52,080 [dynamic music playing] 996 00:53:09,480 --> 00:53:12,560 Welcome to top brand India customer care. 997 00:53:12,640 --> 00:53:13,360 [laughing] 998 00:53:13,440 --> 00:53:16,040 - Press one for Hindi. - Oh! 999 00:53:16,120 --> 00:53:18,240 For English, press two. 1000 00:53:18,320 --> 00:53:19,320 [chuckling] 1001 00:53:19,440 --> 00:53:21,520 Press one for installation. 1002 00:53:21,880 --> 00:53:23,720 Press two for repair. 1003 00:53:23,800 --> 00:53:26,000 Press 3 to purchase AMC. 1004 00:53:26,080 --> 00:53:27,480 Stop it, bro. 1005 00:53:27,600 --> 00:53:30,080 Your call has been put on hold. 1006 00:53:30,480 --> 00:53:32,680 'All our customer service representatives 1007 00:53:32,800 --> 00:53:34,440 'are currently not available.' 1008 00:53:34,520 --> 00:53:37,280 'Please hold and we will attend to you shortly.' 1009 00:53:38,080 --> 00:53:40,320 So, Sharks, do you remember? 1010 00:53:40,600 --> 00:53:44,000 This is the hassle of talking to an agent in customer care. 1011 00:53:44,080 --> 00:53:47,280 After struggling so much, if you have... 1012 00:53:47,440 --> 00:53:51,000 saved your warranty card or bill with you 1013 00:53:51,080 --> 00:53:52,960 then, your complaint 1014 00:53:53,040 --> 00:53:55,400 will be registered in at least 10 minutes. 1015 00:53:55,480 --> 00:53:58,920 Or, your complaint will be lost in a black hole. 1016 00:53:59,240 --> 00:54:01,240 I wish there were a solution... 1017 00:54:01,400 --> 00:54:05,560 which could help us get our complaints registered. 1018 00:54:05,800 --> 00:54:07,600 There is! OneDios. 1019 00:54:19,840 --> 00:54:22,920 Only in six clicks and 60 seconds. 1020 00:54:30,160 --> 00:54:32,000 ...is around Rs. 40-50. 1021 00:54:36,360 --> 00:54:37,600 Our vision is... 1022 00:54:37,680 --> 00:54:39,520 to make easier... 1023 00:54:39,600 --> 00:54:42,280 the complaint registration journey of 30 crore households. 1024 00:54:42,400 --> 00:54:43,960 My ask from you is... 1025 00:54:44,040 --> 00:54:49,000 75 lakh rupees in exchange of 1.5% equity. 1026 00:54:49,200 --> 00:54:51,280 Do you want to 1027 00:54:51,360 --> 00:54:54,160 'request and relax' with OneDios? 1028 00:54:54,320 --> 00:54:55,120 Thank you. 1029 00:54:55,200 --> 00:54:57,000 Nitin Chawla from Ghaziabad. 1030 00:54:57,080 --> 00:54:58,960 Before coming to your 1031 00:54:59,200 --> 00:55:01,760 6 clicks and 60 seconds product 1032 00:55:01,960 --> 00:55:03,200 we'll find out more about you. 1033 00:55:03,280 --> 00:55:05,000 I have completed my B.Com. 1034 00:55:05,120 --> 00:55:09,200 I did my M.Sc Computer Science from Maharshi Dayanand University. 1035 00:55:14,720 --> 00:55:16,680 My interest lay in product development. 1036 00:55:16,760 --> 00:55:18,880 I was given a target that if I... 1037 00:55:18,960 --> 00:55:21,320 make sales of 15 lakhs in 3 months 1038 00:55:21,440 --> 00:55:23,320 then, they'll transfer me to development. 1039 00:55:23,400 --> 00:55:26,360 I achieved the target and I entered software development. 1040 00:55:26,440 --> 00:55:29,600 I joined another company after 2 years, Fujitsu Consulting. 1041 00:55:29,680 --> 00:55:33,000 I made my first mobile app in 2006 1042 00:55:33,240 --> 00:55:35,200 for Abu Dhabi Food Control Authority. 1043 00:55:35,320 --> 00:55:38,680 Then, I joined IBM as a Project manager. 1044 00:55:39,080 --> 00:55:41,480 And, I spent 12 years with IBM. 1045 00:55:41,600 --> 00:55:44,680 When I left IBM, I was leading the Electronics sector. 1046 00:55:52,880 --> 00:55:54,360 I made a prototype first. 1047 00:55:54,600 --> 00:55:56,360 I closed a customer. 1048 00:55:56,600 --> 00:55:59,240 And then, I resigned in January 2020. 1049 00:55:59,320 --> 00:56:00,520 So, this is a problem. 1050 00:56:00,600 --> 00:56:02,720 But, I don't understand your solution yet. 1051 00:56:02,800 --> 00:56:04,680 How will OneDios solve it? 1052 00:56:04,760 --> 00:56:06,440 OneDios has an app. 1053 00:56:06,640 --> 00:56:08,360 So, this is our home page. 1054 00:56:08,440 --> 00:56:10,280 Warranties are available here too. 1055 00:56:10,360 --> 00:56:13,040 Most customers click on 'book service now'. 1056 00:56:29,440 --> 00:56:31,760 So, let's say, my problem in breakdown is 1057 00:56:31,800 --> 00:56:33,160 'does not heat or cool'. 1058 00:56:37,320 --> 00:56:38,960 One, choose the address. 1059 00:56:39,080 --> 00:56:41,000 Second, choose an appointment date. 1060 00:57:00,920 --> 00:57:02,280 I believe that... 1061 00:57:02,400 --> 00:57:05,400 the brands don't have a mature infrastructure. 1062 00:57:05,480 --> 00:57:06,880 No supply of parts. 1063 00:57:06,960 --> 00:57:08,600 Service is sub-contracted. 1064 00:57:08,680 --> 00:57:10,480 Repairs don't happen for 15 days. 1065 00:57:10,560 --> 00:57:12,880 Nobody is ready to wait for 10-15 days 1066 00:57:12,960 --> 00:57:16,160 for any repair work on a TV etc. 1067 00:57:16,240 --> 00:57:20,200 And, most people nowadays will call a technician from 1068 00:57:20,360 --> 00:57:23,040 companies like Urban Clap today itself and then figure out 1069 00:57:23,120 --> 00:57:24,680 if they want to pay for it or not. 1070 00:57:24,800 --> 00:57:27,080 So, the value proposition in this is 1071 00:57:27,160 --> 00:57:30,960 that my 10-15 minutes of irritation on a phone call 1072 00:57:31,360 --> 00:57:32,440 is solved. 1073 00:57:32,520 --> 00:57:35,520 But, the repair work is still painful. 1074 00:57:35,720 --> 00:57:38,560 I can't see a very strong value proposition. 1075 00:57:38,640 --> 00:57:40,000 Am I missing something in it? 1076 00:57:40,080 --> 00:57:43,600 In India, 20 crore requests reach brands 1077 00:57:43,680 --> 00:57:45,040 which are in warranty. 1078 00:57:52,320 --> 00:57:54,480 It must be 20 crores for the brands. 1079 00:57:54,560 --> 00:57:57,000 But, as a consumer, I need this 1080 00:57:57,200 --> 00:57:58,520 maybe once a year. 1081 00:57:58,600 --> 00:58:00,320 Sir, we have observed... 1082 00:58:00,440 --> 00:58:04,000 that one customer adds 3-4 requests in a year. 1083 00:58:16,760 --> 00:58:18,720 Sir, we are a tech platform. 1084 00:58:18,920 --> 00:58:21,640 We only do complaint registration 1085 00:58:29,800 --> 00:58:32,840 People will come to the website of our company 1086 00:58:32,960 --> 00:58:34,080 ...or, go to you? 1087 00:58:34,160 --> 00:58:36,440 Why would I? I would never go on OneDios. 1088 00:58:37,160 --> 00:58:39,920 Sir, let's understand the process once. 1089 00:58:40,000 --> 00:58:42,120 How the customer actually behaves. 1090 00:58:42,200 --> 00:58:43,840 I go on to Google first. 1091 00:58:43,960 --> 00:58:46,120 I write, 'brand plus customer care'. 1092 00:58:46,200 --> 00:58:47,640 Then, I find a number. 1093 00:58:47,720 --> 00:58:50,560 80% of complaints are registered from customer care. 1094 00:58:59,320 --> 00:59:00,960 ...phone numbers on Google. 1095 00:59:01,040 --> 00:59:03,000 Then, they make calls to the brand. 1096 00:59:03,120 --> 00:59:05,160 How will you change that behaviour? 1097 00:59:05,280 --> 00:59:07,160 We started retailer onboarding. 1098 00:59:07,240 --> 00:59:09,800 We told the retailer about this app. 1099 00:59:09,880 --> 00:59:12,280 Simply add the customer's mobile number first. 1100 00:59:20,240 --> 00:59:21,800 Okay, let's solve this. 1101 00:59:21,920 --> 00:59:23,960 - The problem is real, Anupam. - One second. 1102 00:59:24,040 --> 00:59:25,760 No, it's real, but, not too big. 1103 00:59:25,840 --> 00:59:27,440 - How will it make money... - It is big. 1104 00:59:27,520 --> 00:59:29,080 He himself admits it's not big. 1105 00:59:29,160 --> 00:59:31,040 - 20 crore complaints a year. - Right. 1106 00:59:31,120 --> 00:59:33,560 You said, it costs a brand Rs. 50 to solve it. 1107 00:59:33,640 --> 00:59:36,920 So, if we calculate 20 crores with Rs. 50 1108 00:59:37,000 --> 00:59:39,600 it is a cost of 1000 crore rupees. 1109 00:59:46,320 --> 00:59:47,320 Through voice commands. 1110 00:59:47,400 --> 00:59:50,720 How much is my cost now? It falls by 90%. 1111 00:59:50,800 --> 00:59:52,720 So, this market, worth 1000 crores 1112 00:59:52,840 --> 00:59:54,520 comes down to 100 crores. 1113 00:59:54,600 --> 00:59:57,240 How much will you earn in a 100 crore market? 1114 00:59:57,320 --> 00:59:59,760 2%-3%-4%-5%? 1115 00:59:59,880 --> 01:00:00,880 There's no market, right? 1116 01:00:00,920 --> 01:00:02,360 Sir, let's use your own numbers. 1117 01:00:02,440 --> 01:00:05,520 The market for complaint registration is 1000 crores. 1118 01:00:05,600 --> 01:00:07,880 I'll talk only about 10% now. 1119 01:00:07,960 --> 01:00:10,640 That customer has entered my app now. 1120 01:00:10,720 --> 01:00:13,400 So, I am selling him extended warranty now. 1121 01:00:13,480 --> 01:00:15,320 I am giving him buyback. 1122 01:00:15,400 --> 01:00:17,560 I am giving him brand offers. 1123 01:00:17,640 --> 01:00:21,480 Where the acquisition cost on my platform is Rs. 200 1124 01:00:21,680 --> 01:00:24,000 I am receiving Rs. 25 too. 1125 01:00:24,200 --> 01:00:26,800 - Very interesting. - To come on my app. 1126 01:00:26,880 --> 01:00:29,160 - We sell large appliances on Flipkart. - Right. 1127 01:00:29,240 --> 01:00:31,480 After a sale, it automatically moves 1128 01:00:31,600 --> 01:00:33,400 towards service and installation. 1129 01:00:33,520 --> 01:00:35,920 An extra column offering extended warranty appears. 1130 01:00:36,000 --> 01:00:38,320 Click it and buy if you want. It's simple. 1131 01:00:38,400 --> 01:00:42,240 Let's say, you sold a large appliance of boAt and I bought it. 1132 01:00:42,400 --> 01:00:44,440 I want to request repair now. 1133 01:00:44,880 --> 01:00:47,160 Should I go to Flipkart or not? 1134 01:00:47,240 --> 01:00:49,720 So, we're telling Flipkart... 1135 01:00:49,800 --> 01:00:53,320 you don't need to send data to individual brands. 1136 01:00:53,400 --> 01:00:55,600 Consume our single API 1137 01:00:55,680 --> 01:00:57,240 and we'll send it to all the brands. 1138 01:00:57,320 --> 01:01:00,760 And, you're getting Rs. 25 per request for this from the brands? 1139 01:01:00,840 --> 01:01:03,960 We get Rs. 5 to Rs. 35. 1140 01:01:04,080 --> 01:01:04,960 Depending upon volume. 1141 01:01:05,040 --> 01:01:06,600 And, you have all brands now? 1142 01:01:06,680 --> 01:01:09,840 So, we have 20 brands which are integrated. 1143 01:01:09,920 --> 01:01:12,400 And, we have played smart too. 1144 01:01:12,480 --> 01:01:15,720 For example, Samsung is not integrated with me today. 1145 01:01:15,800 --> 01:01:17,480 You add a Samsung request. 1146 01:01:17,560 --> 01:01:20,320 In 1 hour, an operations guy from my call centre 1147 01:01:20,440 --> 01:01:22,320 will call up the Samsung call centre 1148 01:01:22,400 --> 01:01:24,520 and register a request on your behalf. 1149 01:01:24,640 --> 01:01:26,600 That is a cost for me. 1150 01:01:26,680 --> 01:01:29,080 But, when I integrate the APIs... 1151 01:01:29,160 --> 01:01:30,280 They want to increase volume 1152 01:01:30,360 --> 01:01:32,560 - so that Samsung returns to them... - Increase volume. 1153 01:01:32,640 --> 01:01:33,920 - Yes. - and becomes a customer. 1154 01:01:34,000 --> 01:01:35,960 Your thesis that... 1155 01:01:36,040 --> 01:01:39,480 customer will buy extended warranty and other products... 1156 01:01:39,560 --> 01:01:41,280 I'll tell you something simple. 1157 01:01:46,320 --> 01:01:48,040 and try to sell it later... 1158 01:01:48,120 --> 01:01:49,960 - It doesn't sell. - We tried. No, it does sell... 1159 01:01:50,000 --> 01:01:51,800 but, only one who needs repair buys it. 1160 01:01:51,880 --> 01:01:53,840 So, that business never scales. 1161 01:01:53,920 --> 01:01:55,320 And, we've tried this. 1162 01:01:55,400 --> 01:01:56,960 And, we wasted our money. 1163 01:01:57,040 --> 01:01:59,120 So, with your thesis on cross-sell 1164 01:02:04,160 --> 01:02:05,920 The retailer that we took on board 1165 01:02:06,000 --> 01:02:08,120 was firstly told by us... 1166 01:02:08,240 --> 01:02:10,480 'sell your brand warranty' 1167 01:02:10,560 --> 01:02:12,000 'don't sell third party'. 1168 01:02:12,080 --> 01:02:14,480 If the customer misses it there 1169 01:02:14,560 --> 01:02:16,880 then, he learns from POSM 1170 01:02:21,280 --> 01:02:24,040 I can purchase warranty from here later. 1171 01:02:24,200 --> 01:02:28,400 12% of customers directly purchase warranty from our app. 1172 01:02:28,480 --> 01:02:32,960 This year's numbers are 1.2 crores in revenue from warranty sales. 1173 01:02:41,520 --> 01:02:43,960 So, this year, till date, we have... 1174 01:02:44,040 --> 01:02:47,800 made a revenue of 3.25 crores. 1175 01:02:47,880 --> 01:02:49,960 - In six months? - Seven months. 1176 01:02:50,080 --> 01:02:54,320 Last year, we made a revenue of 3.57 crores. 1177 01:02:54,880 --> 01:02:59,200 This year, we've earned 2.1 crores from request registration 1178 01:02:59,520 --> 01:03:02,600 and, 1.15 crores from extended warranty. 1179 01:03:02,680 --> 01:03:05,200 Is this selling on the app or retailers are selling the 1.15? 1180 01:03:05,320 --> 01:03:07,800 Retailer is selling 85% 1181 01:03:07,880 --> 01:03:09,600 and 15% is selling on the app. 1182 01:03:09,680 --> 01:03:11,800 Sorry, there are a lot of things. 1183 01:03:11,920 --> 01:03:13,600 I have studied the market a little. 1184 01:03:13,680 --> 01:03:17,480 Several large appliances are sold on EMI. 1185 01:03:17,560 --> 01:03:21,120 And, they bundle their own warranty with the loan. 1186 01:03:21,200 --> 01:03:24,400 There's a retailer, a lender and a brand. 1187 01:03:24,520 --> 01:03:26,880 - And, outside players like us too. - Hmm. 1188 01:03:27,000 --> 01:03:29,640 Often, brands don't even ask to sell their warranty. 1189 01:03:29,720 --> 01:03:31,920 Bajaj Finance is selling my products, so... 1190 01:03:32,040 --> 01:03:33,040 let him earn the warranty 1191 01:03:33,080 --> 01:03:35,000 because the lending product is more important. 1192 01:03:35,120 --> 01:03:36,640 There are a lot of variables in this. 1193 01:03:36,760 --> 01:03:39,120 What you're saying sounds a little over-simplified to me. 1194 01:03:39,200 --> 01:03:40,800 And also, if you said that... 1195 01:03:40,880 --> 01:03:44,640 80% of your 1.2 crores is coming from your app... 1196 01:03:44,720 --> 01:03:45,880 Then, the game would have been... 1197 01:03:45,920 --> 01:03:47,960 Then, it would mean, you're bringing consumers. 1198 01:03:48,160 --> 01:03:50,440 Then, your margin has value. 1199 01:03:50,920 --> 01:03:52,160 What is your margin? 1200 01:03:52,320 --> 01:03:54,280 I have a 22% margin in it. 1201 01:03:54,560 --> 01:03:55,600 Impossible! 1202 01:03:55,680 --> 01:03:57,880 What commission do you give a retailer, on an average? 1203 01:03:58,000 --> 01:04:00,280 We give 30%-45%. 1204 01:04:00,360 --> 01:04:03,640 So, that's what other players also roughly give. So, it's a game. 1205 01:04:03,720 --> 01:04:06,880 They'll go to someone who pays 50. 1206 01:04:06,960 --> 01:04:11,440 You earned 2.1 crore margin, sorry, revenue in request registration? 1207 01:04:11,520 --> 01:04:12,520 Right. 1208 01:04:12,560 --> 01:04:15,120 - What was your cost? - 90%. 1209 01:04:15,200 --> 01:04:17,080 Why? You don't pay salaries? 1210 01:04:17,200 --> 01:04:20,520 My cost of manpower is in two parts. 1211 01:04:20,760 --> 01:04:22,880 One, my marketing guys. 1212 01:04:22,960 --> 01:04:25,600 The operations team that forwards requests. 1213 01:04:25,800 --> 01:04:28,520 That costs me around 6 lakh rupees monthly. 1214 01:04:28,600 --> 01:04:30,440 Our second team is Product Team. 1215 01:04:30,520 --> 01:04:32,520 That costs us 15 lakh rupees monthly. 1216 01:04:32,640 --> 01:04:35,800 - So, you made 2.1 crores in 6 months? - Right. 1217 01:04:35,880 --> 01:04:38,600 - 6 plus 15 is 21. - Right. 1218 01:04:38,720 --> 01:04:40,320 How much is 6 times that? 1219 01:04:40,400 --> 01:04:43,840 - So, 1.3 crores. - 1.3 crores. Any other expenses? 1220 01:04:43,960 --> 01:04:46,400 - Office expenses. - Let's assume 1.5 crores. 1221 01:04:46,480 --> 01:04:48,400 - Right. Correct. - You save 50-60 lakhs. 1222 01:04:48,640 --> 01:04:50,360 What does this have to do... 1223 01:04:50,760 --> 01:04:52,480 with extended warranty sales? 1224 01:04:52,560 --> 01:04:55,880 All your extended warranty sales are coming from retailers. 1225 01:04:56,000 --> 01:04:57,400 You initially said... 1226 01:04:57,520 --> 01:04:59,400 that your business is 1227 01:04:59,480 --> 01:05:02,680 to manage call complaint registration. 1228 01:05:02,760 --> 01:05:04,920 - Yes. - Then, we did some digging. 1229 01:05:12,240 --> 01:05:14,000 Then, with more digging, we learned 1230 01:05:14,080 --> 01:05:16,640 - all your extended warranty is coming from retailers. - Right. 1231 01:05:16,720 --> 01:05:20,320 So, registration of complaint is not connected to it. 1232 01:05:21,280 --> 01:05:24,400 You are taking us all over the place without getting to the point. 1233 01:05:24,880 --> 01:05:27,200 And, if anyone questions you 1234 01:05:27,280 --> 01:05:30,000 and wants to go into depth 1235 01:05:30,120 --> 01:05:33,400 you smirk secretly, like... 1236 01:05:33,480 --> 01:05:35,000 'I'll show them!' 1237 01:05:36,360 --> 01:05:37,680 'They know nothing!' 1238 01:05:39,040 --> 01:05:42,400 If he's done work in his industry, show him respect. 1239 01:05:42,640 --> 01:05:44,720 [tense music playing] 1240 01:05:48,400 --> 01:05:51,760 Bro, your business is finished. 1241 01:05:52,480 --> 01:05:55,240 You can say whatever you like here. 1242 01:05:55,840 --> 01:05:57,680 But, if you want the truth... 1243 01:05:58,640 --> 01:06:01,280 then, the third-person technology is going to end. 1244 01:06:01,360 --> 01:06:02,520 Game has moved on. 1245 01:06:02,600 --> 01:06:04,560 But, the 25 rupees that you get 1246 01:06:04,640 --> 01:06:06,240 will keep reducing 1247 01:06:06,360 --> 01:06:08,520 until it becomes zero! 1248 01:06:08,680 --> 01:06:11,400 As far as your extended warranty sales go... 1249 01:06:11,520 --> 01:06:13,440 I'm unable to trust the numbers. 1250 01:06:13,520 --> 01:06:16,800 The way you beat around the bush. 1251 01:06:17,480 --> 01:06:19,840 And, finally, have you heard of... 1252 01:06:20,240 --> 01:06:22,160 'if you can't convince them, confuse them?' 1253 01:06:22,200 --> 01:06:23,360 That's what you're doing. 1254 01:06:23,560 --> 01:06:26,280 I'm not confused, but, I'm not convinced either. 1255 01:06:26,360 --> 01:06:28,200 - I'm out, good luck. - Okay. 1256 01:06:29,200 --> 01:06:31,000 You told me two problems. 1257 01:06:31,080 --> 01:06:34,440 One is repair, and other is extended warranty. 1258 01:06:34,560 --> 01:06:37,520 I totally disagree with you on extended warranty. 1259 01:06:37,640 --> 01:06:41,120 - I don’t think you have 22% arbitrage. - Okay. 1260 01:06:47,360 --> 01:06:49,440 I will always go to the brand as a customer. 1261 01:06:49,520 --> 01:06:52,480 Even if I have to wait for 10 minutes. 1262 01:06:52,600 --> 01:06:55,480 So, I have trust issues with this whole business 1263 01:06:55,560 --> 01:06:57,720 as a brand and as a customer. 1264 01:06:57,840 --> 01:06:59,720 - So, unfortunately, I'm out. - Okay, thank you. 1265 01:07:00,240 --> 01:07:02,880 Nitin, this business is a little complex. 1266 01:07:02,960 --> 01:07:04,840 It is personally conflicting for me too 1267 01:07:04,960 --> 01:07:06,280 because, I sell warranty too. 1268 01:07:06,360 --> 01:07:08,640 And, warranty is a very cutthroat business. 1269 01:07:08,720 --> 01:07:10,760 And, it is a play of commissions. 1270 01:07:10,880 --> 01:07:14,040 You must be getting some arbitrage opportunity right now. 1271 01:07:14,120 --> 01:07:16,080 It's a small game that's fitting. 1272 01:07:16,160 --> 01:07:18,520 Because of my personal experience and conflict 1273 01:07:18,920 --> 01:07:21,880 and a little confusion, I'll be out. 1274 01:07:22,120 --> 01:07:23,120 Thank you. 1275 01:07:27,360 --> 01:07:29,160 I think, the solution you've found 1276 01:07:29,320 --> 01:07:31,160 will work for a few years 1277 01:07:31,240 --> 01:07:33,840 but, the way technology is seeing an evolution 1278 01:07:33,920 --> 01:07:36,040 a lot is moving towards AI. 1279 01:07:36,200 --> 01:07:39,000 Right? And, WhatsApp is playing a very large role. 1280 01:07:39,080 --> 01:07:40,800 I can tell you from my own experience. 1281 01:07:40,920 --> 01:07:44,120 And, I don't see that tech capability and tech DNA 1282 01:07:44,200 --> 01:07:46,240 in your company yet 1283 01:07:46,320 --> 01:07:48,920 to make a bet on that disruption today. 1284 01:07:49,040 --> 01:07:51,720 So, I am out because of that. Best of luck. 1285 01:07:52,120 --> 01:07:53,200 Have you raised funding? 1286 01:07:53,320 --> 01:07:55,800 The total funding I raised is 16.5 crores. 1287 01:07:55,880 --> 01:07:57,600 Wow! Okay, from where? 1288 01:07:57,680 --> 01:07:58,800 Indian Angel Network. 1289 01:07:58,880 --> 01:08:01,400 LetsVenture, VCats, Haldiram group. 1290 01:08:01,560 --> 01:08:03,600 Amber Enterprises, IPV. 1291 01:08:03,680 --> 01:08:04,920 What and when were the rounds? 1292 01:08:05,000 --> 01:08:06,760 First round was family and friends round. 1293 01:08:08,040 --> 01:08:10,520 My friend added 2.5 crores. 1294 01:08:10,640 --> 01:08:11,920 We started the business. 1295 01:08:12,040 --> 01:08:14,160 We plowed through first and second COVID. 1296 01:08:14,240 --> 01:08:16,240 We raised funds of 8.5 crores 1297 01:08:16,560 --> 01:08:18,160 in 2021 end. 1298 01:08:18,240 --> 01:08:20,760 From Indian Angel Network and Amber Enterprises. 1299 01:08:20,960 --> 01:08:22,880 Then, in end of 2023 1300 01:08:22,960 --> 01:08:25,160 we again raised funding of 5.5 crores. 1301 01:08:25,240 --> 01:08:26,720 From VCats and IPV. 1302 01:08:26,800 --> 01:08:28,400 What was the valuation in the last round? 1303 01:08:28,440 --> 01:08:30,560 35, 50, floor cap. 1304 01:08:30,760 --> 01:08:32,440 How much was your profit last year? 1305 01:08:32,520 --> 01:08:34,920 We faced a loss of 5.5 crores last year. 1306 01:08:35,240 --> 01:08:37,160 - And... Right. - 5.5 crores? 1307 01:08:37,280 --> 01:08:38,160 And, this year? 1308 01:08:38,240 --> 01:08:39,880 We have a loss of 1.3 crores this year. 1309 01:08:39,960 --> 01:08:41,480 You just said there was a profit. 1310 01:08:41,560 --> 01:08:42,880 - One second. - No, loss. 1311 01:08:43,040 --> 01:08:45,200 No, when we saw the numbers... 1312 01:08:48,120 --> 01:08:51,480 You're making several partnerships. All your costs are variable. 1313 01:08:51,600 --> 01:08:53,640 So, where is your money going? 1314 01:08:53,720 --> 01:08:55,840 Because, your retention is very high too. 1315 01:08:55,920 --> 01:08:58,440 You receive Rs. 20 for each complaint. 1316 01:08:58,560 --> 01:09:00,480 Then, how is the money burning? 1317 01:09:00,560 --> 01:09:02,160 Our fixed costs are the same 1318 01:09:02,240 --> 01:09:04,840 since the start. 65 lakhs on a monthly basis. 1319 01:09:04,920 --> 01:09:06,640 Only revenue is increasing 1320 01:09:06,760 --> 01:09:09,320 because, requests and warranties are increasing. 1321 01:09:09,400 --> 01:09:12,560 How is it 65 lakhs? You just said, cost is 16 lakhs. 1322 01:09:12,640 --> 01:09:14,520 Sir, we have the cost of product team. 1323 01:09:14,600 --> 01:09:15,880 - 15 lakhs. - You included everything. 1324 01:09:15,920 --> 01:09:18,120 - You said 6 lakhs for marketing. - 15 lakhs plus 6 lakhs. 1325 01:09:18,160 --> 01:09:19,760 - And, rest is 15 lakhs. - 15 lakhs. 1326 01:09:19,880 --> 01:09:21,680 15 lakhs is cost of product team. 1327 01:09:21,760 --> 01:09:23,960 6 lakhs is cost of our customer care. 1328 01:09:24,040 --> 01:09:27,240 12 lakhs is cost of field staff. 1329 01:09:27,720 --> 01:09:30,280 Office costs, server costs. 1330 01:09:30,360 --> 01:09:32,760 In total, it is 60-65 lakhs. 1331 01:09:32,840 --> 01:09:34,720 - Monthly expense bills. - 65 lakhs. 1332 01:09:34,840 --> 01:09:37,880 You raised 16.5 crores 1333 01:09:37,960 --> 01:09:40,680 um, and built a business over 4 years, which 1334 01:09:40,760 --> 01:09:42,680 is in the zone of 1335 01:09:42,760 --> 01:09:47,000 6 crore revenue and -60% EBITDA. 1336 01:09:47,080 --> 01:09:49,520 It's not a very good outcome so far. 1337 01:09:49,880 --> 01:09:51,760 A lot of money has already gone into it. 1338 01:09:51,880 --> 01:09:55,320 I don't think I'll be able to invest another 75 lakhs in this today. 1339 01:09:55,760 --> 01:09:57,040 I'm out. 1340 01:09:57,320 --> 01:09:58,640 - Okay, best of luck. - Thank you. 1341 01:09:58,840 --> 01:10:00,360 Thanks, everyone. Thank you. 1342 01:10:00,720 --> 01:10:02,800 Any brand gains trust 1343 01:10:02,880 --> 01:10:04,240 when you see its ads. 1344 01:10:04,320 --> 01:10:06,280 One needs money for ads. 1345 01:10:06,400 --> 01:10:08,080 I came to raise money. 1346 01:10:08,160 --> 01:10:12,440 Never mind. I've already faced 200 plus rejections. This was one more. 1347 01:10:12,520 --> 01:10:14,840 - It was confusing. - He's a sales guy. 1348 01:10:14,920 --> 01:10:17,000 - But, why would he speak wrongly? - He'll tell you anything. 1349 01:10:17,040 --> 01:10:17,760 But, why? 1350 01:10:17,840 --> 01:10:21,440 All your life, you have succeeded because of your ability to sell. 1351 01:10:21,520 --> 01:10:24,080 He started in sales, did product whatever! 1352 01:10:24,200 --> 01:10:26,080 - Ended in sales. - But, you can sell without lying, right? 1353 01:10:26,120 --> 01:10:28,920 He's not lying, he's-he's in the grey zone. 1354 01:10:29,360 --> 01:10:30,800 - Hello, Mr. Nitin. - Hello. 1355 01:10:30,880 --> 01:10:32,520 - How are you? - All good. You tell me. 1356 01:10:32,600 --> 01:10:36,240 Great. Meeting you was great. I saw your excellent pitch. 1357 01:10:36,400 --> 01:10:38,280 - How was your experience? - It was excellent. 1358 01:10:38,360 --> 01:10:39,520 - It was good? - Very good. 1359 01:10:39,600 --> 01:10:42,360 - Did you get any feedback, something to learn? - A lot. 1360 01:10:42,440 --> 01:10:45,360 Excellent. I saw your product. 1361 01:10:45,720 --> 01:10:48,960 - Our whole family will be your loyal customers. - Thank you. 1362 01:10:49,080 --> 01:10:50,040 You're doing great work. 1363 01:10:50,080 --> 01:10:52,040 I hope you continue hustling for your mission. 1364 01:10:52,120 --> 01:10:54,640 - Sure. - And, I noticed your busy lifestyle. 1365 01:10:54,720 --> 01:10:57,120 So, I thought, we both have busy lifestyles. 1366 01:10:57,200 --> 01:10:58,720 I know what you need. 1367 01:10:58,840 --> 01:11:00,720 I immediately opened Swiggy Instamart, and 1368 01:11:00,800 --> 01:11:03,080 ordered a few things to make life better for you. 1369 01:11:03,160 --> 01:11:05,800 - Thank you. - A charging station to help you charge your battery. 1370 01:11:05,880 --> 01:11:07,280 Some stationery items. 1371 01:11:07,360 --> 01:11:09,040 And see, they're here in 10 minutes. 1372 01:11:09,160 --> 01:11:10,160 Excellent. 1373 01:11:10,840 --> 01:11:12,760 Thank you so much. Here you go. 1374 01:11:13,160 --> 01:11:14,160 Thank you very much. 1375 01:11:14,200 --> 01:11:15,960 And, tell me if you need anything else. 1376 01:11:16,240 --> 01:11:18,600 Order noise-cancellation headphones. 1377 01:11:18,960 --> 01:11:21,040 It will reduce disturbance during work. 1378 01:11:21,120 --> 01:11:23,440 - Let's order that. It will come in 10 minutes. No worries. - Sure. 1379 01:11:23,480 --> 01:11:25,720 Friends, you too order anything you want. 1380 01:11:25,800 --> 01:11:27,960 I mean, you have to pay, not for free. 1381 01:11:28,040 --> 01:11:30,160 It will come in 10 minutes. Order on Swiggy Instamart. 1382 01:11:30,280 --> 01:11:31,280 Order now. 1383 01:11:31,320 --> 01:11:34,080 [theme music playing] 1384 01:11:40,800 --> 01:11:43,160 Even when he eats cold food, he holds it in his mouth for 15 seconds 1385 01:11:43,200 --> 01:11:44,000 and eats it once it's warm. 1386 01:11:44,080 --> 01:11:45,320 [laughter] 1387 01:11:45,400 --> 01:11:48,720 We have with us the founder and CEO of Acko, Mr. Varun Dua. 1388 01:11:51,640 --> 01:11:52,960 We have our sources. 1389 01:11:53,040 --> 01:11:56,400 I didn't know myself. Your information is wrong. 1390 01:11:56,480 --> 01:11:57,480 It's wrong? 1391 01:11:58,360 --> 01:12:00,640 - Okay. Ready for the question? - Yes. 1392 01:12:00,720 --> 01:12:02,360 - It can be a spicy question. Okay? - Yes. 1393 01:12:02,400 --> 01:12:04,080 The question was sent to us by Akshay More. 1394 01:12:04,120 --> 01:12:05,480 He's from Mumbai, 30 years old. 1395 01:12:17,400 --> 01:12:19,120 ...especially after COVID 1396 01:12:19,200 --> 01:12:20,920 that health insurance is important. 1397 01:12:21,040 --> 01:12:23,880 And, I often say that we are a little risk-friendly. 1398 01:12:23,960 --> 01:12:26,320 - We drive on the wrong side of the road too. - Yes. 1399 01:12:26,400 --> 01:12:28,480 We believe that we'll be fine. 1400 01:12:28,560 --> 01:12:31,480 - It happens to others, not to us. - Yes. 1401 01:12:31,680 --> 01:12:34,080 I think, that's changing and the awareness is rising. 1402 01:12:34,160 --> 01:12:35,240 But, it's still not enough. 1403 01:12:35,280 --> 01:12:38,400 I have only one suggestion for the viewers listening. 1404 01:12:38,720 --> 01:12:40,360 You invest in Mutual Funds. 1405 01:12:40,440 --> 01:12:43,000 You invest in stocks, in gold. 1406 01:12:43,080 --> 01:12:45,560 - You want to see your money growing. - Hmm. 1407 01:12:45,640 --> 01:12:47,240 Spend it on yourself first. 1408 01:12:47,320 --> 01:12:49,640 - Because, you're not getting any immediate returns. - Wow! 1409 01:12:49,840 --> 01:12:51,720 You won't see your money growing. 1410 01:12:51,920 --> 01:12:53,920 So, you postpone it a little. 1411 01:12:54,000 --> 01:12:56,560 Postponing it is not right. 1412 01:12:56,640 --> 01:12:58,360 Awareness is rising, but... 1413 01:12:58,440 --> 01:13:00,440 I think, it will take some more time in India. 1414 01:13:00,520 --> 01:13:03,560 One more question. Should an entrepreneur enter this space? 1415 01:13:03,640 --> 01:13:05,480 If Akshay More asks me 1416 01:13:05,560 --> 01:13:08,680 if he wants to become my competition, what should I say? 1417 01:13:08,760 --> 01:13:10,920 But, uh, on a serious note. 1418 01:13:11,040 --> 01:13:13,560 Health insurance is a little difficult 1419 01:13:13,640 --> 01:13:15,240 but, not too much. 1420 01:13:15,320 --> 01:13:18,800 And, in the next 10-20 years, this space is going to rise very high. 1421 01:13:19,040 --> 01:13:21,800 So, as an entrepreneur, if you want to try something in it 1422 01:13:54,720 --> 01:13:57,320 If you want to ask a Shark such questions like Akshay 1423 01:13:57,480 --> 01:13:58,720 to come into competition with them 1424 01:13:58,760 --> 01:14:00,160 then, send your questions. 1425 01:14:00,240 --> 01:14:02,400 Go to the Sony LIV app and choose your favourite Shark. 1426 01:14:02,480 --> 01:14:03,480 I'll ask the question. 1427 01:14:03,520 --> 01:14:06,240 See you in the next Ask The Shark with a new question and a new Shark.