[theme music playing]
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Sharks, like thousands of fellow Indians,
the two of us have also shared the same dream since childhood.
That one day, we will have our own restaurant,
a food brand, or at the very least, a shop selling chole bhature.
There will be a long queue.
Our branches will be everywhere and there will be a lot of money.
But Sharks, when we took the first step towards this dream,
our bubble burst, and we got a reality check.
We realised how much effort it takes to build a successful food brand.
First, finding a commercial,
compliant space in a prime location.
...money and time.
Half the people give up at this stage.
And those who muster the courage to move forward
often find themselves so caught up in these struggles
that they can't focus on building their brand.
To tackle this problem,
the food industry needs speed.
And we've brought just that with Speed Kitchen.
Hello, Sharks. My name is Shamin Kapoor.
Sharks, all of you must've heard
of co-working offices and co-living accommodations.
Today, we have a similar model
with Speed Kitchen
which is a co-working cloud kitchen.
Speed Kitchen is a company
that provides India's top food brands
and aspiring food entrepreneurs
with a comprehensive ecosystem...
that operates 24/7, 365 days a year.
Our kitchens are 100% compliant,
hygienic, ready-to-move-in,
and plug-and-play co-working cloud kitchens.
There's no need to worry about finding a kitchen
...or running after licences and authorities.
We handle all the facility maintenance...
Great food, providing customer service, and scaling their business.
With Speed Kitchen, a food brand
can launch operations from our kitchen in just four days
with minimal capital investment and low operating costs,
with specialised cooking equipment and staff.
Currently, we're present in four cities across India
with over 15 locations,
Our vision
is to create an ecosystem in India
where food brands can bypass the challenges
of kitchen infrastructure and compliance,
bringing them closer to achieving their dreams.
To make this vision a reality, our ask
is Rs. 2 crores in exchange for 3% equity.
So, Shamin and Paurav,
- welcome to Shark Tank Season 4. - Thank you so much.
Of starting a food brand or doing something significant in life.
So, when we grew up,
we decided to take this dream ahead.
As we pursued this dream, we realised that starting a food brand
involves much more
- than just food. - Which year did you start this?
Sir, we launched this in March 2021.
Just a year before starting this, I had returned to India.
I was in London.
I noticed something there.
How co-working kitchens, time multiplexing,
and how real estate can be utilised efficiently.
When we thought of bringing this concept to India,
we observed roadside bistros and a variety of food setups.
But if we want to follow the same path?
Could we have multiplied our business?
It meant first setting up a kitchen,
dealing with brokers,
negotiating with landlords,
and managing construction. It consumed a lot of time.
That's when we realised there was a clear gap.
If we could provide ready-made kitchens to people
and create them at scale.
Sir, I am a Civil Engineer by qualification.
I completed Civil Engineering in 2012.
- From? - VIT, Vellore.
That is a good college.
I returned to India after 11 months.
I joined Unitech as a planning engineer.
And then, I got a good opportunity with Saya Group.
They were doing a very big housing project.
I visited Korea for them.
I received training for three months.
- After that, I joined OYO. - Me?
[laughing]
- Thank you! What next? - Do you know him? Did you meet him?
- Yes! - Were you in the NCR team?
- Yes, sir. - What did you do at OYO?
When I received a call from them,
I had just returned from a trip to Europe.
Yes! You went to London, Korea and Europe.
I was asking what was your job profile in OYO.
Tell us your role in OYO.
I... Sir, I...
I joined OYO in July 2017.
- Okay. - As a Head of Transformation for Delhi NCR.
Those in Transformation are typically Civil Engineers.
They convert a hotel
to our brand's standards.
Correct! So...
[laughing]
That was the role.
- I will tell you what I did. - Tell us.
After that, I was with a team in the US.
They sent me to Indonesia for around 2-3 months.
[laughing]
I went from London to India, from India...
I still haven't reached London, sir.
What after that? How did you reach London?
From there, I was sent to Bangkok.
And then I returned to India.
This is nice.
And they sent me to London the next day.
Everyone should get a job like this.
- International player. - All thanks to OYO's team.
If you work in our company,
you get a chance to learn in multiple geographies.
Because we are in 40 countries.
But did OYO send you to London?
We had to work on planning in Scotland
because London was almost done.
- Okay! - Next, which country
- did you visit? - Where did you go after Scotland?
Next year, I returned to India, five days before COVID.
You quit?
I came to their office in India, but I didn't continue with OYO.
- Why? - I left the job.
I was not okay with the role I was given in India.
So, I thought of starting my own business.
Then, I was simultaneously conceptualising Speed Kitchen.
We launched the company in December 2020.
In March, we went live with our first centre in Indirapuram.
I completed my Bachelor's & MBA from Singapore.
After that, I've lived in India.
Initially, I was working with Housing.com
as a Performance Marketer.
Then I shifted to an IT company.
I was there for three years. After that, I joined Builder.ai,
a UK-based startup.
And then I focussed on Speed Kitchen full-time.
Tell me about your business. What does it exactly cater to?
What proposition do you have for your clients?
In layman's language, it's a co-working space for cloud kitchens.
First, we search for a real estate property
For example, if Ritesh runs a burger company
and you plan on starting a burger company,
we know that if Ritesh is running a burger company in Indirapuram,
we have the data on their average order volume
- and average order value. - This is sensitive data, right?
With this data, you can approach the third burger company
and tell them that you can offer them space to operate in Indirapuram.
Why are brands sharing
these sensitive data with you? How will it benefit them?
The brands who work with us are not paying us a fixed rental.
So, we are not a fixed rental company.
We have a minimum guarantee and revenue share.
All my leases with the landlords
...of 12 months.
Its duration will be 3, 5, and 9 years.
Is the lock-in for the same duration on both sides?
Is the lock-in period you give to the landlord
and the one the client gives you roughly the same?
- Do you have photos of your cloud kitchen? - Yes, sir.
This is one of our kitchens in BKC.
...and five individual entities can utilise them,
allowing them to run multiple brands from each kitchen.
CCTV, Wi-Fi, gas bank,
plumbing, civil work,
security, facility managers,
garbage disposal.
Instead of making a kitchen for yourself,
you help others run their business.
The model is good.
For any brand, it works when they are starting off.
Why would brands
continue to share their revenue and data with you in the long run?
Once my business is successful in BKC,
I will move out.
That's something I've learned.
I've built a defensibility model.
What is that?
We've implemented a cap on revenue sharing.
- Implemented a cap? Okay. - Yes.
It ranges from 1.5x to 2x and in certain cases, it goes up to 2.5x.
1.5x of?
Minimum guarantee.
Or revenue share on net sales,
How much will you make?
Our minimum revenue share is 6%
and the maximum is 10%.
- ...and a 6% revenue share. - Hmm!
If their sales amount to Rs. 10 lakhs,
my invoice will be Rs. 60,000 plus GST.
Regarding capping, I informed them
that if their sales exceed Rs. 18 lakhs,
the 6% revenue share amounts to Rs.1.2 lakhs. It's an example.
For any sales above that,
is entirely their revenue, and I won't take any commission on it.
Sir, for every site I do it.
- How much is it? - For any property where I invest in CapEx,
if I calculate the return on it,
it comes out to be around 15% to 18%.
ROCE! ROCE means Return On Capital Employed.
This is a financial metric
that indicates how efficiently you have run your company.
For instance, if you invested Rs. 50 lakhs in a business
and made a profit of Rs. 30 lakhs,
your ROCE would be 60%.
It reflects the efficiency with which you managed the company.
Please tell us your revenue, cost and EBITDA.
We have been profitable
In the first year, we did Rs. 36.5 lakhs.
After that, it was Rs. 1.51 crores.
Followed by Rs. 3.25 crores.
And this year our sales will be around Rs. 5-Rs. 5.5 crores.
That will be the minimum.
How much have you made in the first six months, Paurav?
Rs. 3 crores.
Okay! What has been the bottom line in these years?
Sir, last year, our EBITDA was roughly around 13%.
And our PAT was 9.5%.
- Tell us. - Sir, the audited number shows an EBITDA of 4.5%
- Without that cost, my EBITDA would've been 13.5%. - It's 13%-18%.
- Okay! It went from 13% to 18%. - Correct.
You were telling us about fundraising costs.
Where did you raise funds from?
Inflection Point Ventures and HNI.
How much have you raised and for what valuation?
Sir, we have raised Rs 2.5 crores.
Pre-money valuation is Rs. 20 crores.
He also gives a lot of money. Why didn't you reach out to him?
I was not really in touch with him after 2020.
But I did try.
But he was busy with other things.
That's why you came here. Well done.
- An incredible business. - You have high energy.
- But your voice goes down in front of him. - I noticed.
- His pitch is... - No...
- It's high. - Yes, there is something.
- Once we mention Ritesh... - Something is fishy!
Nothing is fishy.
Believe me. We have worked together.
I have seen the highs and lows.
When it comes to his temper.
I know him closely. So, nothing is wrong.
His temper?
His temper can never go above this.
- He is always smiling here. - We don't believe you.
Okay, fine! Let's see what the site level unit economics
of one location is.
- If the top line for that location is Rs. 3 lakhs. - Hmm!
The fixed rental cost
is approximately Rs. 1.6 lakhs.
So, my CM1
is always around 44%-47%.
After that, we account for employment costs, office costs,
maintenance, and repair expenses,
the CM2, which represents the EBITDA number,
is 17%, as I mentioned earlier.
And after accounting
for depreciation and other expenses,
the PAT ranges from 11%-13%.
We were discussing the adjusted EBITDA earlier and got derailed.
So, let me tell you about the previous year.
At that time, my EBITDA was 11.5%.
And my PAT was 7.5%.
I've learnt things after starting my business.
Everyone runs a business,
but it's fun to work when it's profitable.
You can look the other person in the eye and speak.
We've taken very small steps.
We made a cloud kitchen and went to quite a few locations.
Then I realise that it is working.
So, we started with base kitchens.
We made small cloud kitchens.
They need food from a main place.
For example, Chef Ritu Dalmia, who had worked at the Ambani's wedding,
entrusted us with the design,
execution, and launch of her entire kitchen.
The base kitchens of the travel food services
that handle airport lounges
- Correct! - I'll give a classic example.
My third client was Chaayos
in Indirapuram, which was our first location.
They've been in the same kitchen number for four years.
To this day, they continue operating from that same kitchen.
- There must have been some customer churn by now. - Yes, sir!
What is the reason behind that?
Mainly, this churn comes from new brands, sir.
They begin their journey, but sadly, they fail to succeed.
To date, from an operations perspective,
no brand has left us because of that.
- How much percent churn was there? - Only around 10%-12%.
Give me the last number. How much is your occupancy rate?
Sir, on the portfolio level, it's around 80%-85%.
There are many other bands
in the market who are doing what you do, right?
In India, there is one more other than us.
It's a company in Bengaluru.
- Kitchens@. - Kitchens@, correct.
What is their traction?
Sir, Kitchens@ is dense in Bengaluru.
They roughly have around 350-400 kitchens.
And in their recent fund raise,
they've raised 135 million dollars.
How does their revenue scale compare to yours?
They were doing a top line of Rs. 22 crores per month.
Do they have more space or what is it?
If you look at the revenue scale, they are around 50 times more.
They also have company-operated food brands.
A huge chunk of their revenue comes from there as well.
This concept
- started with Uber founder Travis Kalanick. - Travis Kalanick.
He started Ghost Kitchen.
What has been its traction,
as it's been in the industry for 4-5 years now?
Their way of doing business is different.
In Western countries, they buy properties
because the rental yield is good.
In India, you don't get a rental yield, so we don't buy properties.
- They left, right? - Yes, they left.
Out of six of their kitchens, we are running three kitchens.
- How much cash do you have in your bank? - Rs. 3.5 crores.
- How much CapEx was invested? - How much... Exactly!
Exactly how much was put into CapEx?
Around Rs. 1-Rs. 1.5 crores.
How much is it per location?
My expense is Rs. 1,000 per sq. ft depending on the real estate size.
- If I have 1500 sq. ft, I spend Rs. 15 lakhs. - Rs. 25 lakhs.
- Rs. 15 lakhs for 1500 sq. ft. - Yes, 1500 sq. ft.
If you are giving me 1/10th
of your kitchen,
and if I want to set up my own kitchen,
will the total CapEx
be around Rs. 2-Rs.3 lakhs or not?
It will cost around Rs. 3-Rs. 3.5 lakhs.
Around Rs. 3-Rs. 3.5 lakhs.
- Shamin, he is the CEO. - Yes.
- What do you work as? - Sir, I look after the revenue.
How much is your equity split?
Sir, I own 70% of the company after the fund raise.
- And you? - 13%. Approximately 13%.
And the rest is with the investors.
No, sir. We have an ESOP pool of 4.2%.
And the remaining 12.5%,
approximately 13%, is with investors.
Then why are you here for Rs. 2 crores?
Sir, we are planning a big round, pre-series A.
We have secured a major contract as well.
For expansion across all of Maharashtra
- from an IPO listed company. - Which one?
ITC.
How much will the yearly order value be in rupees?
The monthly business is around Rs. 7.5 lakhs.
- Around Rs. 7.5-8 lakhs, sir. - So, Rs. 1 crore
- But I think it's a good thing. - And strength?
Very hard working, sir.
I get a sense of operational excellence from him.
That he's an operations fanatic.
Sir, I haven't met anyone who can take such risks.
Executioner. I think I'm
- an executioner. - You're making good money.
What's your plan? What do you want to become?
Sir, a one-stop solution for food.
I will do forward integration after 50 more locations.
I will introduce my company operated brands.
How big will it grow to be?
Sir, a company worth 500-1000 crores.
Because real-estate business is extremely unorganized.
You heard of what happened at Karol Bagh, and other places.
Yes.
If you provide a good space that's fire-compliant,
and is regularly audited,
with robust licenses,
then you enjoy working.
What are the negatives?
Sir, real estate is a perishable asset.
So, the negative is that it can remain vacant
so I won't earn anything, right?
So, I have a factor. I don't launch a location at 40%.
So, we're ruling out negative factors gradually.
Paurav and Shamin.
Lovely energy.
It's an interesting space.
I see one or two challenges.
And my calculation tells me
that it's ideal for those companies
that have capital and an urgency
as it's not cheaper.
The second challenge is that
on 80-85% occupancy,
you're making around 6-7% PAT.
Your only leverage
is that you will take it to 100% occupancy, which is rare.
EBITDA and PAT percentage don't give enough room
so which is why, as an investor
I don't see 100x potential.
So, Rs 2 crores at your valuation seems too high. So, I'm out.
Paurav, I feel that
I can't tell you how happy I feel seeing you and Shamin here.
Specifically you because I feel
that there can't be a better ambassador than you for OYOpreneur.
High-operational execution.
Good understanding of numbers.
Working hard means giving it your all.
No matter which market it is in the world,
you'd be glad to know that all the countries you named
is turning Rs 500-1000 crore revenue as of today.
You started from zero.
So, I'm so happy to see you.
I think there's significant value
to building infrastructure in the food industry.
You need help in 2-3 critical areas.
You will need capital in this business.
So, I can bring you real estate players
who will give you buildings with CapEx.
You're aware that we did the same.
Secondly, we will be able to share our real estate with you.
But I need more ownership to do this level of work.
You asked for Rs 2 crores.
At Rs 25-crore valuation,
I proposed 2.5 crores of investment, 10 percent of it.
Thank you.
Definitely, your operational excellence
...is evident in the numbers.
And this market seems promising.
So, I would like to take a bet too.
But I believe that
Ritesh has more experience in this field.
So, I'd like to join him in this deal.
- Precisely. - Creating an app,
or bringing in a lot of users,
this is not a sexy business.
And maybe that's why you're making profit too.
As founders, to pick a hard business
is not easy.
I feel that
you deserve to be helped.
Thank you so much.
I have two offers for you.
One, Rs 2 crores at 8%.
Or Rs 2.5 crores at 10%.
I think you're a solid guy.
I'm sure that you will
make money and launch an IPO.
But you don't need me.
I don't think that I can help you much as a shark.
- I know the answer to it. - [chuckling]
What is it? Tell me.
Apart from your time,
advice has a thing.
Because as mentioned, I have a range
and I'll be able to earn that much money or EBITDA.
What I'm doing for cloud kitchens today
can be done for more people in the future.
If you trust execution then,
I'm a soldier in front of my investors.
But again, I'm General in front of my team.
So, I follow this policy and I know
that if we build it, it will grow very quickly.
So, that's my vision.
I love associating with people like you.
So, I'll make you an offer.
Rs 2 crores at 10%.
It will be a lower valuation than them.
But I'm supporting you on ethics and morals.
Come to me whenever you need me.
You have all the offers now.
Do you want to take some time to think and let us know?
- Give us two minutes. - Yeah.
Speed Kitchen's speed decision making.
Very happy.
The Jan 2023 round that I mentioned,
the business has grown 4x ever since
so the valuation you've offered will take me two years behind.
My counter offer
will be straight-forward and applicable to all.
Rs 2 crores for 4%.
Or Rs 2.5 crores for 5%.
Uh, I don't want to go below Rs 2 crores at 10%.
And I don't want to negotiate with you.
If it's not agreeable...
No? No discussion?
You said that you won't negotiate. I'm willing to discuss.
- [laughing] Good one. - No negotiation
- on Rs 2 crores at 10%? - No.
- I'm out. - I'll go two years behind.
I billed a few discounts
that one year later in your business,
you were saying that you'll get it from ITC.
Even if I remove that,
still it's Rs 2.5 crores at 7.5%.
I'll make you a revised offer.
Rs 3 crores at 10%.
- Okay, you decide. - We can give it too. No issues.
Money is not a problem.
What's your offer?
Rs 2 crores at 6%.
This sounds fine.
- Rs 2 crores. - Now you three...
If you've learnt something
that we don't take time.
He has decided, tell us that the deal is final. Done!
- Sir, mid-offer. Please. - No!
- No. - It means a lot to me.
Rs 2 crores for 6%. Yes or no?
Become decisive.
Along with skillsets, their contacts, network.
We will get that too.
So, we feel that they will add a value to our company.
And they will help us grow.
Like they mentioned that we could've sped up a bit.
So, by coming together
our 4-5X might turn into 10X or 100X.
[music playing]
Welcome to Acko Changemakers where we really welcome change.
And it's beautifully portrayed here.
Behind me, on this Changemakers Wall.
We are building digitally empowered, sustainable future.
And our changemakers are Team Speed Kitchen.
Firstly, welcome, of course.
But congratulations on getting your cheque.
Thank you so much.
- How are you feeling? - Feeling good.
I'm sure you know that during Covid,
many cloud kitchens opened up but quickly closed down.
Because rental, operations, they don't have an idea.
And you're helping them.
So thank you for doing what you do.
Thanks.
The service is unique.
And this change is great.
But obviously, it becomes an echo chamber
where people feel that the industry is easy
with immense opportunities.
So, any advice to our viewers who want to get into this industry?
Points to keep in mind before doing so.
Market research is a must for any brand.
For those who wish to enter this field. And focus on execution.
Great advice. Thank you. I hope it brings a change.
- For people who want to get into this industry. - Sure.
And Acko is also bringing change with its revolutionary offering
in the insurance space.
Only buy a car from the showroom.
Don't be pressurized to buy a car insurance from there.
You didn't know that you don't need to buy a car insurance from them.
You can buy a new car insurance directly from Acko
and save up to Rs 36,000.
Guys, to celebrate you and your time in the Tank,
we have a memento on behalf of Acko and Shark Tank.
Thank you so much.
Congratulations!
Thank you.
[music playing]
Oh!
Unexpected.
[music playing]
Wow!
[music playing]
Whoa!
[music playing]
Whoa!
[music playing]
- Wow! Are you the founder? - Amazing.
Unbelievable.
Greetings, Sharks. I'm Sanjit Suhag.
And I'm Anjit Suhag.
- Oh! - What you just saw
was the excellence of Mudgar.
Mudgar is the world's original workout tool.
...core strength, and breathing.
It has so many benefits
and despite being a part of our culture,
we have forgotten it.
But today, we're on a mission to bring back this Mudgar.
Presenting Mudgar Club.
We not only manufacture Mudgar
but also teach how to use it.
Similarly, we want to make Mudgar
a part of modern lifestyle.
We're asking for Rs 50 lakhs for 10% equity.
So, Sharks, do you want to take Mudgar to every home?
- Greetings, Suhag brothers. - Greetings.
You are here to make the world strong.
So, I'd like to understand
how you guys
got motivated to promote Mudgar. What's your story?
I studied in Haryana. I did my 12th there.
Because of poor financial condition,
I had to move to Delhi after my 12th.
And I did an internship there.
I started running
and yoga too.
From basics, I moved to
Mysore style Ashtanga
and started practising it.
I quit that job
and started working as a freelancer yoga teacher.
It piqued my interest.
And that was the start of my Mudgar journey.
Which year was it?
2023.
By December, we started selling it.
- What's your story? - I've passed 10th.
As my brother mentioned, our financial condition was bad.
So, I quit education and started working.
In 2023, I received a call in November.
And he said that he's starting this.
So, he asked me to come and take a look.
I went to Dehradun
and got into manufacturing.
I started enjoying it.
So, leadership...
In Haryana, leadership is a totally different craze.
Shall we try it?
I'll bring it.
Oh, god! Will we be able to lift it?
Absolutely. This is the lightest.
Thank you.
Praise be to Sultan! Smash it!
Train us like you would train your users.
Sure.
You have five students. Teach us.
Come on, Sultan.
The first movement that I teach
is called front lower 360.
If your left hand is below
then we will make a basic circle,
drop it on the left,
and complete the circle by moving to the right.
So, left to right.
Back to the starting position.
The second movement.
Drop it behind the left shoulder
and draw it from the right shoulder.
Back to the starting position.
- Left. - Oh!
To right.
It's paining.
- To right. - [laughs]
You must've all lifted
5kg dumbbells.
This is a Persian Meel.
But it's not possible to lift these.
- What are you saying? - They're 5 kg.
So, how is it lifted?
We place both the Persian Meel.
We will hold it
Swing it a bit.
Then lift it and hold.
- Don't try it. Looks tough. - Very easy.
- Swing, left. Yeah! - Oh, damn!
Swing, and then lift.
- Woah! - Save.
Oh!
Look at him!
- Brother! - Let's have a match.
Not bad.
What's this?
This is from Iran.
Whenever they want to do a pushup,
they used this board.
- Awesome. - And this?
This is from India.
- This is called a Samtola. - Okay.
So, it's mainly for the lower body.
My point is that when there are gyms,
why should we workout with Mudgar?
We feel that it's for them.
Not for common people.
Nobody told us that it's not for wrestling arena alone.
It's meant for everyone.
Is it a bigger issue that there are not people to teach?
Because trainers don't know.
Mudgar trainer as a career doesn't exist.
Tell me something. Why does it need to be made of wood?
Because these traveling sticks
- are found in gyms. People use it. - Yes, barbells.
One, even if this starts trending in gyms,
- that 3D movements are important. - Right.
So, why aren't there rods in the gym?
Second, why wood and not metal?
If you've done a pull-up,
or if you've worked out in gym, your hands develop calluses.
But if you work out for an hour with this Mudgar,
your hand will remain soft.
We are not against gyms.
So, we want to place mudgars inside gyms, as well.
But why don't you upload it on YouTube?
We've not used YouTube yet.
- We have some videos on Instagram. - Show your Instagram account.
The middle video has been viewed a lot.
Play it.
How many views does it have?
It has 17,000 likes
and around 5 lakh views.
When I started,
95 per cent of it was a male community.
- Only 5 per cent were females. - We can see both here.
What's the situation now?
There are 70 per cent females and 30 per cent males.
How many orders do you get via your social media?
All our orders come from social media.
What has been your sale for the last 11 to 12 months?
We sold around 5000 mudgars within a year.
How much does one mudgar cost?
A 5 kg mudgar is for Rs 4,000.
We increased the price three months ago.
Before that, a 5 kg mudgar would cost Rs 3,000.
Before that, it was around 15 to 18 lakh.
Gradually, we're shifting
to selling more products.
How much was it contributing to those 15 lakh?
50-50.
Our service and products are equal right now, as well.
Then, didn't both of them decrease?
I had 25 employees.
I decreased them to five
as I wanted to convert this to a pre-recorded course.
That's why I reduced my team
and increased my profit.
What was your marketing budget before?
It used to be around 4 to 5 lakh.
How much is this 5 lakh now?
We've earned a 30 per cent profit in these three months.
What was the profit and loss before three months?
We were breaking even.
So, are you earning 3 lakh per month now?
Yes.
We use that to pay salaries.
Okay. How much cash is there in your bank right now?
We have 2 lakh right now.
How much time does manufacturing take?
How much margin is there only in the product?
Let's take, for instance, one 5 kg mudgar.
We get a 2.5 feet log from a tree.
We have two options now.
How much does it cost to make it?
We pay Rs 2000 for manufacturing and shipping.
We manufacture mudgars of 3 kg to 10 kg.
Everything is natural.
That is also why
we started writing names.
We are trying to make a product
that stays for years together,
so even your children will know it is your mudgar.
After some decades, their children will say,
'That is my grandfather's mudgar.'
So, it is sustainable and has a prolonged usage.
Exactly!
In which channel do you invest the most for your marketing?
Our primary marketing channel is Meta,
especially Instagram.
Does a particular age group buy this more than the others?
Yes, 30 to 40 years.
What will you use your funding for?
Inventory building.
As I told you before,
we have to dry a log for six months.
We've never taken funding
or investment till now.
We started this venture with the 50,000 we had in our accounts.
So, we will build an inventory and invest more in wood.
Okay. Thank you for telling us about mudgars.
I don't know whether people
will accept and use it like an everyday product.
It might be of use, but not now.
That is why I am doubtful right now. Hence, I am out.
Your sense of purpose
and commitment to the cause
of taking mudgars to every household, as you've written on it...
- Hashtag every house will have mudgar. - Yes.
So, it has become a purpose of your life.
It is incredible.
But as of now, it's too early.
Looking at your numbers,
you're not even selling 100-150 mudgars per month.
- So, it's hard to bet on it. - Right. - That's why I'm out.
- Thank you. - Thank you.
I've seen this many times.
Most historic things go out of trend
- when the value they add to our lives decreases. - Yes.
Many times, after a couple of decades,
- we try to build it out of nostalgia. - Right.
But the reality is
that it went out because it is not required.
It would never go out of trend if it were valuable enough.
So, I don't see a possible business here
as it might not be in demand.
That is why I want to be out.
This business seems early to me.
Mudgars will return to our minds
- because they came to Shark Tank. - Right.
That will be your greatest service.
I am out today, but I wish you all the best.
- Thank you. - Thank you.
You don't have any professional experience.
Despite that, you've proved that
this business has early signs of community building
and generated a profit of 3 lakh from revenue of 10 lakh.
I give you credit for that.
Thank you.
But your business has some challenges.
If you want to build this community,
- you need to hire trainers. - Right.
You have to build a community.
- You have to form a brand. - Right.
So, realistically, this business has a long way to go.
It is not a short-term business effort.
But this business can become a movement.
Absolutely!
If I don't support such a business at this early stage,
it will go against my thesis.
- So, I want to support you. - Thank you.
My offer is this. I will invest Rs 50 lakh in your company
for 12.5 per cent equity.
Your business will have some ups and downs.
I will support you with it.
Of course! I will try to use most of your products.
- Yeah, definitely. - My best wishes are with you.
You have this offer from me. You can decide.
Amazing! Congratulations!
Ritesh, the deal is final.
[camera shutter clicking]
Best of luck.
- All the best best. - Thank you. - Thank you.
[theme music playing]
My perspective is that these people marketed
this product on social media in one year
and got hundreds of people to utilise it
as an entirely new experience.
It may be nostalgia or an experience.
You can make a business return in nostalgia by selling 100 people.
But their worst case
is not so bad, so I hope
the better case, where it becomes a movement, can be disproportionate.
I feel you need not think that far in an investment like this.
I believe they're doing a good job. The founders are promising.
- Their product's quality is amazing. - Yeah.
They need support.
It's great that someone is supporting them on this stage.
- Absolutely! - Good job.
- Super awesome, Ritesh! - Thank you.
Mudgar Club, welcome to the PokerBaazi Zone
where you hold the cards.
Business has phases, too.
- You start with the introductory phase. - Yes.
Then, your sales go up and growth increases.
- Then, you sustain, and it leads to maturity. - Right.
I've heard you have a story
of a phase you want to tell us.
Yes. I want to tell you a story about our introductory phase.
When we started,
many people questioned
- how a woman could touch God Hanuman's mace. - Oh!
Then,
we developed a marketing strategy to inform people
that this practice was related to health
and had no connection with gender.
So, today, 70 per cent of women practice with us,
The entire prize pool
is 100 crores.
I hope you use this and enjoy it.
[camera shutter clicking]
Download the PokerBaazi app. Make your winning hand.
'Shark Tank India, co-presented by Acko Insurance,
'PokerBaazi and Swiggy Instamart,'
'co-powered by Adani and Jaquar Bath and Lights,'
'and partners Rayzon Solar, ICICI Direct,'
'Lenskart and Sofy.'
[theme music playing]
You must've heard that kids learn a lot while playing.
We raise slogans about being vocal for locals.
But even today, the toys we get in India
talk about the world but not about India.
So we thought of doing something unique and fun.
Vineeta, the tray you have
can send kids to Chandrayaan using Vikram Sarabhai's rocket.
Ritesh, if you want to draw Warli, Madhubani,
and Lippan art in a mess-free way,
you can use these pens.
Kunal, you can join these magnetic pieces
and go to Lanka from Ayodhya.
Aman, look at it through Mr India's red lens
and you will see how Maratha soldiers
climbed massive forts.
These toys are a combination of History, Geography and culture.
Kids won't realise how much they learned while playing.
So, Sharks, welcome to Play with Imagimake.
- Namaste! My name is Ravi. - I am Disha.
Take quilling, for instance.
...kids come up with endless questions.
Making the entire ocean together
enhances their compassion and collaborative spirit.
That is how we Imagimake!
It means we hand over your imagination in your own hands.
Since we started in 2014,
we've sold more than
- 1 lakh products to households every month. - Wow!
Apart from online channels,
we're available in more than 4000 offline stores.
...and compassion
worldwide through our innovative toys and games.
Sharks, we ask
- for Rs 1.5 crore for 0.5 per cent equity today. - Oh!
300 crores!
Ravi and Disha, welcome to Shark Tank season 4.
- Thank you. - Thank you.
I have to tell you.
I've played with several of your products.
I have two to three of your Mapology kits.
- Thank you. - I love the product.
I also have this quilling kit.
I was placing a new battery in it two days ago using a knife.
My boys love quilling.
How much would you rate them out of ten as a consumer?
The products would be around ten.
- Amazing! - They're very engaging.
You need to use an app for a few of their products.
My problem is that
they don't get downloaded and work well.
If you check our overall product portfolio,
only one of our products needs an app.
It's not a significant part of our portfolio.
Okay. Let's talk about business now.
When did you start it?
We started the Imagimake activity centre in 2012.
Its concept was
that kids could come there and get involved in creative ideas.
At the same time, it was a retail space.
We used to deal with toys and craft supplies there.
We saw good growth on platforms like Amazon and Flipkart.
Since then,
we have only focused on
expanding our product portfolio,
increasing distribution,
and reaching more countries.
Countries?
- Countries? - Yes, countries.
- We have arranged a demo for you. If we have your permission... - Yes.
- Please. - Why not?
- Aman, if you have time, Disha can give a demo. - Sure.
All right. Thank you very much for volunteering.
Can do this. - Fish is a little related to boats and sharks.
- Sure, that is why. - I'll do it.
There is glue here, as you can see.
Which colour fish do you want to make?
Okay.
Please press this button.
Our coil is in the making.
Fine. Stop! Excellent! Okay.
Which alphabet is this?
[laughing]
You see, madam. Listen.
I have volunteered to make this.
- It doesn't mean you ask me this. - He only knows four alphabets.
Okay. There's B here.
Let's pick it from here and put it in B.
Perfect! Excellent!
We'll stick it like this.
We have to give it a shape now.
Something like this one.
We will pinch it. One,
and two.
Perfect! You can stick it here now. Okay.
Perfect, and one more.
Now, that's the world's greatest boatman
making the world's best fish.
Oh!
You wanted me here just for that.
[laughing]
Not bad.
- May I? - Please.
Sir, that is our patented tool.
It gives children a hands-free and mess-free quilling experience.
So, we address different purchase prompts,
starting from Rs 199, it goes up to Rs 2000.
What is your bestseller product?
Sir, we have an India map puzzle.
- Can you show it to us so we'll understand? - Sure.
Aman, we have Spin and pop kit for you.
- It's an automated bracelet maker. - Okay.
Thank you.
He is holding the World map puzzle.
In that kit, you can see
puzzle pieces of all the countries in the world.
While playing with our India map puzzle,
the kids place the Indian map together like a puzzle.
They learn a lot from it.
Which state is in the East? Which one's in the West?
Which state is bigger? Which one is small?
The upgraded version you're seeing here
also has flashcards.
Your tray had Madhya Pradesh's flashcard.
You scratched it
and read about tigers in the Kanha national park.
Similarly, kids can learn a lot through these flashcards.
Raavan is kidnapping Sita here. Right?
Yes. It's like this. Place it like this.
We were very curious after seeing the map
because you've given such small things here.
- Have you designed all these products? - Yes.
- Okay. - Disha heads the product design.
We have two investors too, in our cap table.
Who will make the final decision regarding which Shark you will go with?
If there is a disagreement.
- Both of us. - We'll take a joint decision.
Please tell us your channel distribution, first.
How is it distributed between retail and online?
- 35% comes in from our e-commerce export. - Okay.
Out of the remaining 65%, 35% is from our domestic online channel,
like Amazon, Flipkart or our website.
18% comes from general trade and modern trade.
And 12% is from quick commerce and other channels.
Which is the biggest country outside India where you distribute?
The USA is the biggest market for us.
The export numbers that I told you,
almost 90% of that is from the USA.
If I begin from 2021,
we made a revenue of 13 crores.
In 2021-22 we made 29 crores.
In 2022-23 we made 40 crores
and in 2023-24 we closed at 56 crores.
- Wow. - Wow, well done.
And this year, so far
we have clocked YTD October at 42.5 crores.
How much are you expecting this year?
100 crores.
We are targetting around 87 to 90 crores.
Lovely.
- Amazing. Well done. - Incredible.
What was the bottom line?
- Tell us the EBITDA margin. - EBITDA.
In 2020-21 it was 15 lakhs positive.
2021-22 it was minus 35 lakhs.
2022-23 it was minus 90 lakhs
and in 2023-24 it was minus 30 lakhs
This year the YTD is at 1.2 crore positive.
For the full year our projection is around 2.4 CR.
Who has funded your business?
We have taken two rounds of funding.
Our first round in 2020-21,
And the second round was with Pidilite Ventures.
What was the amount and what was the valuation?
We raised 20 crores in the second round.
And we have sufficient funds to run the company.
- What's the cash in the bank right now? - Eight crores.
That's great money.
Then you might be having a large inventory?
We have eight crores worth of inventory,
and receivables are around 5.5 crores.
We procure all the components from third-party vendors.
And all these components reach our factory, where the final assembly,
quality control and dispatch is done.
You have everything set. It's a solid pedigree.
You've done good work.
And sales are also great.
You've come towards profitability.
You've raised good funding and you understand your business.
Everything is going fine. What will you do coming on Shark Tank?
Just like how all of you have done good work in your spaces...
Tell us something new. We've already heard this too many times.
- I'm telling the facts. - You're directly...
But if you had come sooner, there wouldn't be a need to come at 300.
You are from ISB, you could've looked for our email ID from ISB
and emailed any one of us, we would have joined you at a lesser price.
We still have a long way to go.
If you were to double what you're doing today
in the US every year,
and scale rapidly,
what help would you need to do that?
It will be a capital intensive business there,
But is there a reason?
Why did you choose USA? Is there a bigger margin?
Because like you clearly mentioned, the working capital is higher.
And I think my time is a little limited.
I don't think you people need my time as much. It's my personal view.
Unfortunately, I'd like to stand out on this one.
Sorry to hear that.
- Ravi, Disha, incredible business. - Thank you.
And it felt really good
to see the 'Make in India' products from India
- are turning into so many global businesses. - True.
The purpose of my life,
You are very successful founders.
Today, I'm out.
But with the best of wishes,
and being tremendously impressed with what you've built.
All the best.
- Thank you. - Thank you.
My views are also almost similar.
And for that reason, I'm out.
But very good business.
In case you feel I can help somewhere, I'm just a call away.
The scale that you're at, you have 350 employees.
And almost 100 crore, this year.
It's a profitable company, with a factory. Make in India.
All the check boxes are there.
Four to five years ago, your revenue was 13 crores.
I mean, the journey from zero to 13,
you know, everyone will watch your story
and think, 'It's such a successful company.'
It looks like an overnight success. But people forget
- that there is a 12-year struggle before success came. - Absolutely.
Based on what I think makes sense,
I'll offer you 50 lakhs of equity at 0.5%,
which was your ask. Which was your last round's valuation.
And one crore debt at 10%, three years.
...then maybe you can consider this offer.
Nice, you've got an offer. Now we have Ritesh.
In your business, you've built a bottoms-up competency
in your innovation, design infrastructure and distribution.
I think for that reason,
you have a disproportionate opportunity going forward.
I think India is certainly a significant market,
but it is equal or bigger than the opportunities
It would be wrong if you don't get an offer after coming here.
- She gave it. - Vineeta has given it.
I will try to do slightly better than that.
I want to offer you 1.5 crore, the ask that you have placed.
But for 1.5%.
Instead of 0.5%.
- What? - It's the same. - How?
- It's the same valuation. - Same?
- How much did you offer? - It's lesser.
- It's the same. - Right?
- Valuation is 100 crores, right? - You gave 1.5 crores at 1.5%, right?
- You gave 100. - Yes, it's the same.
You said 1.5 crores at 1.5%, right?
Yes, one second. What was your offer?
- I... - 50 lakhs, 0.5%.
Okay, you offered 50 lakhs at 0.5%.
- And you offered 1.5 crore at 1.5%. Her offer is technically better - Okay.
Because her Pre-Money will become 99.5
and your Pre-Money will be 98.5.
[laughing]
- Oh, my God. That's great. - Okay.
I'm loving your Math.
That was fun.
He's got some solid logic.
I made a mistake with the numbers.
I will edit my offer slightly.
1.2% at 1.5 crore.
'Probably try to figure it out.'
Azhar, man! Azhar is a star.
[laughing]
Oh, my God. This was too good.
This was too good.
'If you look at it that way,'
- 'his Pre-Money is less.' - My day is made.
Yes, sir.
So, Vineeta and Ritesh, thank you so much for the offer.
We'd definitely like to see how we can take it forward.
We feel we have demonstrated the growth in the last one year,
which should give the valuation an uptake.
We have to very gracefully decline the offer.
- Oh. Directly declined. - We absolutely
- understand that. - We fully understand.
And if I had a private equity firm,
then I would close my eyes, invest in you and take you to an IPO.
- Thank you. - But this is not my investment model now.
But I would love to help you.
- I'm based in Bombay, as well. - Sure.
Let me know how I can help you.
- Sure. - Thank you so much.
The gap between our expectation of valuation
and the offer made by the Sharks was quite wide.
We felt
it would be tough to bridge this gap in the negotiation process.
That's why we did not give them a counteroffer.
- Keep up the good work. - Thank you.
- Yes. - Do well.
All the best.
'Typically, if you are a consumer company in India'
But high-growth companies get it.
But more than that, I feel, would be too much.
It would be unfair for many other companies,
which get maximum P/E in the same range.
For that reason I did not raise the deal.
Team Imagimake, I can't tell you how nostalgic
you have made us all feel.
And everyone was fighting about which toy they wanted.
- You made us feel like kids. - Wow. - Thank you.
And that's exactly what your brand does.
- Sure. - Absolutely. - For the child and the joy it brings.
While watching your pitch
I was really excited about a few products.
- I logged on to Swiggy Instamart and saw your products there. - Right.
- I ordered one. And here it is within 10 minutes. - Wow.
- I can't tell you I'm overjoyed. Thank you, sir. - Oh, wow.
I have ordered the Window Art.
Fantastic.
So, thank you for making me also feel like a child today.
And great pitch. I loved it.
What you asked at the valuation, you're such juggernauts.
- It's amazing to have you here. - Thank you.
You can help me with this. We'll do this together.
- Looking forward to it. - Sure.
Guys, just like how I did not have to wait
for their products,
if you also want their products,
it's available on Swiggy Instamart.
It will reach you in 10 minutes.
Yo! Welcome to 'Ask The Shark.'
...a decent, big man,
We are quite close. No big deal about it.
We have with us the founder and group CEO of OYO, Mr Ritesh Agarwal.
Ashish, I always believe
that the heart should be big, not the bank balance.
Your heart is big.
Then why should I increase your bank balance?
Why don't you believe your words?
[laughing]
- Can I ask you a question? - Please.
Today's question is from Yagya Awasthi
from Prayagraj. He's 28 years old.
Because in India there is a standard definition of start-ups.
- Technology-driven, young founder. - Hmm
And 10x, 20x growth.
There are many other companies that are start-ups.
- Someone might be running a small factory. - Hmm.
There's a company that's exporting a specific component.
These are generally called SMEs.
If you look at their numbers,
then all the companies are profitable
and all of them have grown with great difficulties, so they'll never close.
I will ask them on your behalf. We'll meet you on the next 'Ask the Shark,'
with a new question and a new Shark.