[theme music playing]
[music playing]
[theme music playing]
Hello, Sharks! I heard you were missing me.
- So, here I am. - Yes, ma'am.
- Oh! - Okay!
No, actually! I am becoming a parent.
Congratulations!
Thank you! Actually, I am becoming
a plant parent.
[laughing]
But let me tell you, I love plants.
Also, there is a big confusion.
I am in love with both.
I am unable to choose which one to pick.
And this confusion is often seen in Shark Tank India.
Because a few times, you come across similar businesses.
Yes!
The confusion lies in deciding which businesses to send to you.
But today, something different is going to happen.
Peyush and Kunal, both of you are new to this, so let me tell you
that you will solve this confusion today by yourself.
Because today, there will be two pitchers
One pitcher is quite experienced.
He is experienced in this industry.
The second business is quite fresh and innovative.
But before I talk a lot about them,
let me tell you the rules.
You have to be good students right now.
- Are you ready for the rules? - Born ready.
Both the pitches will come back-to-back.
Meaning, one after the other.
They will both get an equal amount of time to pitch to you.
But after 45 minutes,
this buzzer will go off.
- [buzzer sounds] - Whoa!
But this is the most important thing, Anupam.
You enjoy talking a lot.
You make your decision beforehand.
So, hold your horses.
Because you can't share your decision on the spot.
Oh my God!
You can share your decision when both pitches are over.
Namita, your expertise
- will come into play only after both pitches are completed. - Done!
And when it comes to investment,
that's completely your decision.
It's up to you to invest or not.
Whether you want to invest in both or just one business
is up to you.
Are you ready to meet your two special pitchers?
- Bring it on! - Bring them on.
All right, let's have the two businesses here.
[theme music playing]
[music playing]
Hi, Sharks. I am Annu from Nurturing Green.
Hi, Sharks! I am Agam.
Hi, Sharks! I am Saksham. We are the founders of Kyari.
I had made a promise that I was going to be very fair.
So, we will choose
which pitcher will go first by tossing.
Oh! You are leaving it to luck and destiny.
Absolutely! It's written in the stars. We will toss.
The one who wins the toss will pitch first.
- Sure. - Yeah?
- Fair? - Fair.
- Who's going to call it? - We'll do it.
- Okay! Ready? - Yeah!
Sure! Tails!
- It is heads! - Heads.
Sharks, it's 'heads'.
This means Nurturing Green will go first.
- And Team Kyari, let's water the plants. Take them. - Sure.
We'll meet you soon.
- See you! Best of luck! - Best of luck.
Thank you!
I am the founder, CEO, and plant doctor of Nurturing Green.
Before I start my pitch,
- I want to give you a small gift. - Oh!
Oh!
- Oh, nice. - Thank you!
- God, I thought... - Oh, no!
As a small token of love and gratitude.
- Huh? - From me and all the Indians
you inspired to dream.
They are bad.
- Is it? - They are withered.
Oh! I am really sorry, Sharks.
We don't want it. Take it back.
A similar event unfolded in my life in the summer of 2009.
I was studying in Austria.
I gave a small bouquet to my mom.
For some reason, I couldn't call her that day.
And the next day, when I called to ask how she liked the bouquet.
And surprisingly, she told me,
'Son, I threw it away.'
And that is where it all started.
I returned to India and started Nurturing Green
with a small and simple idea.
That instead of gifting a bouquet that dies in a day,
how about you gift a life?
How about you gift a plant?
In 2010, I started Nurturing Green when I was 23.
Our plants are produced using state-of-the-art technology
through tissue culture.
We also provide
personalised plant parenting
through WhatsApp and AI...
We are not just organising and streamlining
the Rs. 1.2 lakh crores unorganised gardening category,
in fact, we are bringing the world's largest hobby, gardening,
- into the homes of millions of Indians. - All right!
So, Sharks! My ask is Rs. 1 crore for 1% equity.
Oh!
So, Sharks!
Are you ready to go green with Nurturing Green?
Sharks, before we start,
may I give you an actual gift from Nurturing Green and me?
- Absolutely! - It better be good
- and not this. - Okay!
Yes! Kunal!
- How are you, Annu? - Good!
- How are you? - Good!
So, that plant is for Rs. 99.
- Do you and Kunal know each other? - Yes.
Okay! I thought so.
So, these are our plants. These are from our Care Category.
- What is this? - Nice! This is pretty.
That's the new range we launched for Rs. 99.
- So, Shark... - Thank you!
- Peyush, this is plant doctor. - Very beautiful.
One thing I love is the packaging.
Only good founders do that.
- I met Annu when he started. - Yes.
We met once in Cyber City around 2010.
- Oh, wow! - Yes.
You have a sharp memory.
One thing I like about you
And I read all of them.
Okay, Mr. Annu from Lucknow.
Welcome to Shark Tank Match Off.
I was happy to hear your pitch.
You said you started this in 2010.
When you've witnessed such a long journey,
- True. - So, that's why I can really relate to you.
Could you please share more about your education?
Where did you study from
and where did you learn about all this?
You mentioned your motivation behind this.
But where did you study this?
I was born in Lucknow.
Everyone in my family is an entrepreneur.
But everyone is a first-generation entrepreneur.
Someone rejoined their dad's business. I don't know why.
I didn't because
our ideologies don't match.
I was born in Lucknow and I completed my graduation there.
After that, I got a chance to do MBA.
There was a recession in 2009, so there were no jobs.
An opportunity came my way to participate
in a global business program in Austria.
I saw how the world works there
in ten months.
I realise how narrow my perspective was.
Over there, I had many ideas.
Of course, if I hadn't been there,
I wouldn't have gifted a bouquet to my mom.
And I might not have been on Shark Tank today.
After that, I worked for two months in Austria.
That's my only experience. Since then, I've been running this
for the last 14 years.
- Did you say Austria or Australia? - Austria.
- Austria! - Yes.
God and Google know everything,
that's where I got my knowledge from.
- Now, I am familiar with the chromosomes of every plant. - Wow!
You've been in the business for 14 years,
it must've evolved.
Currently, what are the main categories
you play with?
Sir, we started with the Gifting Category.
- That they have to gift a bouquet or plant the next day.- Right!
If you can do that as a supply chain business,
you win the game.
So, back then we slowed down gifting.
Because we realised that we don't have a supply chain.
Since the arrival of Qcom,
this has completely taken a U-turn.
So now, while sitting here,
Mostly indoor plants. That's a big category.
We do this with our partners like Home Centre,
HomeStop and others.
It is in marketplaces too.
Nowadays, I've noticed
that they give the contract...
That is landscaping.
Landscaping service.
Yes, that is a landscaping service. You rent a plant.
- Yes! - In offices,
you can tell us and we will
- install plants. - Do you manage everything?
- Now... - Do you do that?
- We started landscaping in 2017
and discontinued it in 2019.
Annu, the categories you picked,
such as Gifting, Home Decor and Home Gardening.
Why is this the sequence?
Is there a specific reason for choosing home gardening in the end,
considering there are a few companies growing in this sector
- in India? - Yes.
There's a company in the US that has grown significantly, called Sunday.
You have been in this space for 14 years,
you have a deeper understanding.
You also have a brand.
Why is this your sequence?
Because I got this idea from a gift, I started with the Gifting Category.
The next idea was to bring plants home.
So, we started plant decor.
Gradually, we went on with it.
For the first 4-5 years... I was 23.
I didn't know much about the business or category.
It took me 4-5 years to understand it.
If you could replay the last 14 years,
which category would you have focussed the most on?
- Home gardening. - I thought so.
Is there a distinction between you and others in the same business?
Our biggest USP is our quality.
We learnt that in the span of 13-14 years.
And it takes that long to learn everything.
What did you learn in this category?
All our plants are grown in a tissue culture lab.
- That is your lab. - The lab belongs to our partners
- and we have a contract with them. - Okay!
These plants are cultivated in 70 acres of controlled polyhouses
and grow in four cities.
So, we already know with a 60%-70% possibility...
But these polyhouses are not owned by you.
They are not. We don't invest in it.
But we have many partners who are willing to take it to 700 acres.
After that, we have eight steps of quality checks.
For example, we count the leaves of our Syngonium.
If we say that we will give 25 leaves,
we keep our word.
Our second USP is that
through WhatsApp and AI,
we started the plant parenting journey.
If you scan it,
it will take you to WhatsApp
and show you personalised videos and audio.
- Yes! We... - How does that work?
We also realised that people's plants die.
And once that happens, they don't continue with gardening.
Our idea was that,
if we aim for long-term value
and want to generate revenue from customers,
we need to give them a little push
to get them back into gardening.
Even if you come to us after 20 years, we will offer
a 50% replacement for your plant.
Namita, would you purchase an iPhone
without first knowing its specifications?
Ouch!
Irrelevant!
For the first time, I agree with Namita.
- I believe the iPhone example is unrelated and out of context. - Yes.
Okay!
- Because the word 'AI' has been used a few times. - Yes.
What about this is AI?
In the last three years, we've made more than 200 videos.
Once you send a message,
it will start
giving you different content.
About how much to water and should it be kept indoors or outdoors.
It will answer your questions.
You've used a chatbot from a third party.
Yes.
I think 'AI' is over-positioning.
How many monthly active users do you have
Let's go to sales.
I'll start from last month. Our customer sales is Rs. 4 crores.
Whoa!
Net sales.
Our net sales is Rs. 2.53 crores.
We will at least make Rs. 28 crores.
Our target is Rs. 35 crores.
We've launched new categories.
- Quick commerce? - We launched in quick commerce.
About 30% of our overall share comes from quick commerce.
Also, 58% is online.
What is modern trade? Sorry! Reliance?
Home Centres, Reliance, et cetera.
And what percentage of business is gardening?
It is quite less. It's 1%.
We are only making Rs. 10-Rs. 15 lakhs.
So, 99% is non-gardening business.
You didn't tell us a lot about that.
In which direction will you take it?
A lot of gardening products that we've launched
is because we realised that a lot of people used to come and ask us...
How many SKUs do you have in gardening?
We launched a total of 12 SKUs.
And what percentage of gardening will your sales be in three years?
- Gardening products. - More than 50%.
- Okay! - Have you raised funds recently?
We made a small angel investment
with Vijay Shekhar Sharma, the founder of Paytm.
He joined us in 2019.
Explain the cap table.
I have approximately 68%.
8% family.
22% are friends who are also investors.
They gave me the first cheque.
2% is Vijay Shekhar Sharma and Nangias.
They invested in 2019.
How much did Vijay invest and at what valuation?
Rs. 37.5 crores pre-money.
- And how much did he invest? - 50 lakhs.
- After that, you didn't do any rounds. - No!
Are you the only player?
No, there are more players now.
- There is Ugaoo in Pune. - Yes, Ugaoo.
Ugaoo has recently raised Rs. 50 crores in funding.
- Rs. 47 crores. - Rs. 47 crores in funding.
How did that make you feel? You've been doing this for 14 years
and a new player got funded.
I mean, how did that feel? Why do you think they got funded?
I was clear from the beginning that I wanted to raise funds.
But I want to grow sustainably.
I'm not obsessed with creating a unicorn.
But I'm passionate about building an Indicorn.
- Of course! - Okay!
Now that you mentioned loss, tell me about the bottom line.
Sure! Last year, our EBITDA was Rs. 28 lakhs.
And we have always been a profitable business
until now, except for when there was COVID.
- That's amazing. - Even in the future, we want to be profitable.
This year, you've made Rs. 17 crores until now.
- Rs. 17 crores. - How much profit did you make?
It's approximately 3%-5%.
Explain the unit economics.
If our product is for Rs. 100 excluding GST,
Rs. 30 is our product cost.
Rs. 31 is our trade commission and margin.
Advertisement is around 9%.
Our logistics is 5%.
Our salaries are around Rs. 17.
That is a lot now.
We also have miscellaneous. Our net margin comes to about 3-5%.
Have you built a large team
- that accounts for 17% of the expenses? - Yes.
My first angel investor
and my life investor was my girlfriend.
She is my wife now.
Currently, she is also the co-founder.
So, she just came on board.
We've put together a leadership board.
We have a leadership team of 7-8 people.
How much do you pay the CFO?
As far as gifting is concerned, I get it.
Packing and all, they play a very important role.
But when it comes to home gardening,
your biggest competition is local gardeners.
- True. - And that will be the case.
I agree.
You are saying that the business makes 3%-5%.
As more money flows in and competition increases,
this business will lose its value.
- No, that is not true. - What...
Where will the margins come from?
Where will the scale come from? That is not clear.
Let me explain one by one.
- Okay! - You mentioned the business makes 3%-5%.
- That is not true. - That's what you told me.
It is currently. Because our salaries take up 17%.
I will easily cap it at 10% by next year.
Out of that, 7%-8% will come from here.
I know how to make it 15%.
And I will do that.
At this stage, I've intentionally decided
to bring in talented people, so we've invested in them.
I don't know, but I think Kyari doesn't have a CFO
and COO.
- No! - Just those two boys are running it.
- Yes. - You are also in the startup mode.
That is a huge team with CEO, COO and CFO,
all of whom have high salaries.
Do you think it makes sense? Does it justify
what you are doing? How do you sleep well at night?
I believe now is the right time to build that team.
- Because this team will help us grow. - Got it!
And how many employees have been working for more than five years?
We have a total of 200 employees.
- 200 people? - In corporate...
200 includes are labourers
- and CCS who are in stores. - Okay.
45 employees in corporate.
We have more than 15-20 people who have been with us
for more than 5 years.
Those who are in stores, are they on a payroll?
- Yes, they are. - How many are in store?
200 minus 45.
We have around 150 CCS
and labourers on the farm.
How much revenue do stores like HomeStop bring in
to justify having someone in stores?
We have a clear business.
If the sales are below Rs. 2.5 lakhs, we don't need anyone.
- Okay! - It's on a sharing basis.
Between Rs. 2.5 lakhs-Rs. 5 lakhs...
- Once it reaches Rs. 5 lakhs, we bring in one more person. - Okay.
And when it's Rs. 10 lakhs, we bring in the third person.
If the revenue is below Rs. 50,000, we leave.
What will your employees say about you if we ask about you?
If you ask them, they will say, 'He is mean.'
'He scolds us, but at the end, when we think about it, '
'we realise he was right.'
'So we do what he says.'
Tell me something.
Where do you see your company in 3-5 years?
And how will you get there, according to you?
We have a vision of Rs. 100 crores in 2026.
- Kyari. - They will also be there.
I agree. And...
How will you reach Rs. 100 crores before them?
The lawn and garden category is worth Rs. 1.2 lakh crores.
- Ten players like me will come and go. - Yeah.
Even then everyone will make money.
There is enough room for everybody.
And how many are unbranded?
- Currently, 99% are unbranded. - They are unbranded.
- In the end, everyone is selling plants. - Yes.
What is the differentiator?
I believe I made one thing that can't be copied.
And that is grit and perseverance in our culture.
Annu, this is probably not the best answer
that an investor wants to hear.
In a way, many founders
claim that they have perseverance and grit.
But as an investor,
we focus on the moat within the product,
Because it's alive.
There is a company called Kyari.
Did you hear about them earlier?
Of course! You know who your competitors are.
What is the difference between both of you
in terms of business model and numbers?
It takes 5-7 years to make a supply chain.
Building partnerships isn't that simple.
Understanding this product knowledge isn't easy either.
If you just buy plants from the market
and show them, they'll perish at the customer's end.
In 14 years, I've come across 8-9 businesses
that came and left.
Because they thought they could buy from nurseries,
put their brand's name and sell them.
What's the pricing comparison between the two of you?
We start from Rs. 99.
And we proudly say
that we are L1 in every category and every product.
It starts from Rs. 99 and goes up to?
We go up to Rs. 4,999.
And how do you justify a Rs. 100 crores valuation
- with a business like that? - The revenue is Rs. 28 crores.
Our growth is 100%.
4% is the average
if you take the run rate at 4x.
...who have expressed their ability to scale with us.
But the warehouses aren't in place.
This money needs to go into the warehouse
as part of the CapEx expansion
and also for marketing.
[buzzer sounds]
- All right! Mr. Annu, very good pitch. - All right!
Thank you so much.
As you know, we will meet your competitors
and then we will decide.
- Thank you! - Thanks a lot, Annu.
- Thanks. - Thank you so much.
[theme music playing]
Sharks, after Covid,
people, tired of the concrete jungle
and cooped up during the lockdown, had just one demand.
Indoor plants!
Everyone wanted to make their space
more aesthetic, lively, and refreshing.
And now, thanks to Jaggu Dada,
everyone wants to plant a sapling.
That's true.
Perfect!
Sharks, plants do a lot for us,
but we don't give them much in return.
We bring them home and leave them in a corner.
And due to their daily busy schedule, they forget to water them.
To solve this problem
and to organise the growing indoor plant market,
we started Kyari 2.5 years ago.
Hello, Sharks! I am Saksham.
...we've strengthened our supply chain
from the ground up.
That's why we're able to ship more than 200 plants every day.
In the last 2.5 years,
we've served more than 5 lakh customers.
Our vision is to make Kyari
a part of your home decor journey
and make the plant care experience even better.
To fulfil our vision,
we need your support
and Rs 80 lakhs for 0.8% equity.
- Whoa! - What?
So, Sharks! Are you ready
to become a plant parent from a parent?
- We are biological brothers. - Yes.
- Who is the older brother? - I am. He is younger.
Tell me about you. How did this start?
Sharks, I was born and raised in the small city
of Sagar in Madhya Pradesh.
I ran small businesses when I was in school.
After 12th grade, I knew
I had to go to college for exposure
and to build a strong network,
while also starting my own business
in 1st & 2nd year of graduation.
I came to Indore in 2017.
And in 2018, in May,
we started our new venture, Robot Banao.
We were allotting electronic components.
In around three years, in 2nd, 3rd and 4th year.
We did a business of approximately Rs. 13 crores.
We were a profitable business.
After Covid, the market
for indoor plants was growing rapidly.
There were limited people who were operating in this category.
We thought this category was a perfect fit for us.
And the first thing we did
was make Amazon our marketplace
and launched our category.
And in 2022, we launched Kyari.
We encountered several supply chain challenges.
Delivering a live plant
in healthy condition is not an easy task.
It is a long process to fulfil that.
That is when we understood the process.
Your friend from Nurturing Green,
- Mr. Annu said that it took him 10-12 years... - Yes.
And it will take around that time for anyone
to crack the supply chain and solve related issues.
You said you managed to do that in just two years.
- In 1.5-2 years, right? - Yes.
Is this really that big a problem?
Different people are solving it at different paces.
And everyone is claiming that it is a big issue.
No, it's a real problem.
Yeah! But it can be easily solved.
Let me explain the problem.
We tied up with nurseries.
- It took them 10 years to set up. - Hmm!
So, the nursery partners who were already doing business,
were doing a business of Rs. 5-Rs.10 lakhs.
We gave them a good volume
and they were interested in working with us.
Got it. Thanks.
How many partners do you have?
We have three nursery partners.
The inventory and infrastructure is theirs.
And we have defined the quality parameters.
That we need so many leaves
- and be bushy. - Does it have to be 25 leaves?
- Sorry? - How many leaves?
- 25 leaves? - No, it depends
- on the plant. - Okay!
- Let's get to the products. Please tell us about it. - Sure.
Can you share the products with us?
I'll go with the demo first.
Okay! What does 'Kyari' mean?
In MP and UP's regional language,
'Kyari' means flower bed.
Nice logo, nice brand.
- Yes. - Thank you!
I'll start with the first product.
We noticed that the biggest problem with plant parents was
Self-watering planters already existed in the market.
But no one worked
on its design or the right amount of water
that should go to each plant.
So, we wondered how much water the soil would need for a week.
Most indoor plants
require water in a certain proportion within 7-8 days.
We designed the pot with that in mind.
According to the soil volume,
that is how much water it should get.
The reservoir is on the top.
You have to fill the water from the top.
There are two pots. One is the inner pot
- and the other one is the outer pot. - Okay.
There is space between both the pots.
It's designed in a manner
so that it can hold water for a week.
- It was already available in the US and our market. - Okay!
We launched this recently. That was the first product.
- This is the maximum size we have. - Which one?
We noticed that we couldn't solve the problem
of over watering and under watering for plant parents.
Under watering was fixed,
but... Our main observation was
that housewives see that there is no water in the pot,
so they refill it with water.
There was something lacking in the communication.
- So, the problem of over watering started. - Yes.
And that caused the plants to die.
And then, we recently launched a product around four months ago.
It's called Hydrate. It's a water meter.
You have to insert this in any plant to this level.
...by absorbing water or moisture from the soil.
We made it. We saw it in Japan.
We have a third product, which is also quite innovative.
We've seen that
people already have plants.
I am selling a pot as a solution for them.
Other than that, can we deliver something that
could turn their existing planter into a self-watering planter?
So, we launched this product almost four months back.
And this helps the plant parent
- Yeah! - When we started Kyari,
we introduced the four-inch planter you can see here.
It starts from Rs 299
and goes up to Rs. 399.
Depending on the plant variety the person is shopping.
Last year we decided to start the NPD process.
All the products you see
were launched recently in the last 4 months.
If I talk about the revenue split, 90% of the business
- still comes from that particular plant. - Oh!
- Oh my! With the logo. - Nice!
- This one is for you. - Nice.
It says Snapdeal.
Thank you! Very nice.
- We have the Sugar logo also. - Nice.
Amazing! I love it. Thank you!
The water from the reservoir will flow down, right?
- No! You need to fill the water at the bottom. - The reservoir
- will go down, won't it? - No!
You must fill the water at the bottom.
It will automatically rise through capillary action.
- And leave it. - Got it.
- This is your old model, right? - Yes.
[music playing]
What is the price for this one?
This plant you are holding
costs around Rs. 725 on our website.
And the reservoir one?
The one that Namita is holding is for Rs. 349.
- This one! - Your attention to detail
needs to be appreciated. I can see
- there are rubber supporters at the bottom. - Thank you!
- Shock absorption. I mean... - Thank you!
- I guess so that it doesn't touch the ground. - Yes.
- And there is no noise. Very nice. - Thank you!
- How much is this for? - Rs. 299.
And Hydrate and other products?
We are planning to give Hydrate free of cost with our products.
And what about the products like compost?
These are fertilisers for organic purposes.
Exactly! You haven't spoken about them at all.
Understood.
- Let's get to the numbers. - Yes, the numbers, please.
So our last month sales were Rs. 2.63 crores.
[scoffs]
- Tell me the net amount. - Net of everything.
Considering the first six months from April...
No, you tell us about all the seven months.
Our numbers for seven months are Rs. 10.5 crores.
Okay. Good.
Speaking of financial year
2022-2023,
our sales were Rs. 1.75 crores,
Rs. 9.54 crores in the next year.
- Woah! - And till date,
our sales have reached Rs. 10.48 crores.
What is your target?
We will close the current financial year at approximately Rs.23 crores.
We are not making any profit yet.
In the first year, our loss
The first round of money was raised in April 2022.
We are family friends.
A person was a part of our past journey very closely.
So he invested at that time.
And we raised Rs. 2 crores at that time.
Our valuation was Rs. 40 crores back then.
We have closed the second round in the last October.
We raised Rs. 5.4 crores
at a valuation of Rs. 50 crores.
Some of our investors in the same round
couldn't arrange the funds in time
till the round closed and hence there was an addition
in March 2024 where we received Rs. 1.05 crores
on a convertible note
making it a cap of Rs. 70 crores and the floor being Rs. 40 crores.
[intense music playing]
...from Rs. 50 crores to Rs. 40 crores.
We reduced the floor to Rs. 40 crores
because when we initiated the discussion with them
we agreed upon it
- in the start itself. - No! Your funds got depleted.
- Am I right? - No, that's not true.
We did accumulate Rs. 5.5 crores last year.
Why would anyone shrink their floor?
Our round that started in October hadn't closed yet
and we had committed to their proposal by then.
Because our last round total led to Rs. 40 crores,
we committed to them at Rs. 70 crores.
What is your total dilution till now?
What about the rest of the capital?
40% belongs to me,
- 37% belongs to Saksham. - And?
- An ESOP pool of 7%. - Okay.
We are almost 16% diluted.
Tell me your cash in bank.
Cash in bank is around Rs. 33 lakhs.
- That's great! - Oh!
We have lots of receivables yet.
Yes, we are.
- Then? Receivables? - But we bill the e-trade on Amazon.
Where we follow a payment cycle...
- What is the time period? - A payment cycle of 45 days.
And we receive the money in around 55 days.
And do you sell your products via quick commerce?
Not yet.
You are only selling on Amazon, is it?
We are selling through our website.
Split?
- 60% sales are through our website. - Okay.
Almost 30% sales are through Amazon
and 10% sales from corporate businesses.
Let's get the the amount of your receivables. What is it?
Our receivables amount to Rs. 2.09 crores.
And what if you don't get your money?
We have a working capital.
- We have kept a CC limit. - What is your working capital?
- Rs. 2 crores. - Okay.
How much of the debt money have you used?
- Are you speaking about the utilised limit? - Yes.
This month we received the amount...
- Disbursement? - Yes.
- Our limit was Rs. 1.60 crores. - Okay.
Out of which Rs. 1.32 crores is
- the bank balance. - Okay.
So you have used Rs. 30 lakhs.
- Yes, Rs. 30 lakhs. - And what are your payables?
Approximately, Rs. 1.7 crores.
The money is blocked in the inventory.
What is the inventory?
We have an inventory of Rs. 1.45 crores.
Rs. 1.45 crores of inventory in plants!
We have launched different categories
and the first orders from all of them have been delivered.
We have stock left in each category.
I think you are facing an issue with the unit economics of per unit data.
Let's talk about the unit economics.
Speaking of website business,
I did not withdraw any salary
until this year.
Both of us withdraw Rs. 50,000 each.
This business can shut down. Aren't you scared?
Uh...
- Our working capital will sustain for another 8 months. - No.
You don't have it.
- Your salaries next month are Rs. 30 lakhs. - Yes.
- Around Rs. 26 lakhs. - You will pay salaries of Rs. 33 lakhs.
Because your receivables and payables are similar.
The money will get transferred from one place to another.
You won't be able to liquidate the inventory.
[intense music playing]
You have been honest so far.
You must have approached a Venture Capitalist.
We have had a word with many Venture Capitalists
- in the whole process. - There you go.
- We had a discussion with Fireside recently. - Okay.
We are still having discussions with some of them.
We still don't have any commitments yet.
As per your current conversations,
what is the size of round and the valuation?
We are trying to raise Rs. 25 crores.
You are paying Rs. 26 lakhs every month as salaries
...for which you have only Rs. 33 lakhs left.
Didn't you consider to reduce your marketing budget
to Rs. 10 lakhs for a month
which would give you a budget of giving salaries for two months
just to make sure that the employees aren't stranded?
Vineeta, it was a festive month
and October is considered as
the best month for the industry of e-commerce.
We were focus sing on capturing more sales.
But you aren't thinking that a founder
has a responsibility towards their team.
From that point of view, considering the CC limit we have...
'CC limit is the cash-credit limit.
It is a loan taken from the bank
and is used to meet the needs of the working capital of the business.
The bank defines a limit
up to which you can withdraw the money
and charges interest on the amount used by you.'
It is a mindset that I have receivables of Rs. 2 crores.
Your CC limit will get depleted
in the next few days if not yet.
Any debtor or company,
whose runway
is down to 1 to 2 months
always sticks to the CC limit.
So, I am surprised that you still have CC limit with you.
But it will disappear any moment.
The bank has given the CC limit.
No bank will allow it because...
We have stock with us...
Your stock is not a collateral.
In your case, it is a perishable item.
Nobody withdraws money against the inventory.
All of us have done business and we know how the banks work.
Do you have any properties as a collateral?
Nobody will give money against the property as well.
The concept of CC limit in loss-making companies
is that it provides a working capital
if the company has a runway of more than 8 to 10 months.
Agam, I am surprised as to why didn't you opt for quick commerce?
He did try but couldn't enter the market.
No! We told them about our business of plants.
We weren't able to understand their infrastructure.
We weren't much convinced back then
to make it go on board with quick commerce.
Did you reject them or did they reject you?
We rejected it. We had received the PO too.
Do you think it was a strategic mistake?
Yeah, it was a wrong call.
How are you rectifying it?
We are discussing about it since two months.
What do you think of Nurturing Green?
Shall we invest in them or you? And why?
It is finally your call but I think
we are growing with a faster approach.
- Yes. - We understand the industry
and are creating products as per the consumer demand.
We never considered Nurturing Green as a close competitor.
- Okay. - Because their online market presence is quite low.
- Their market is offline. - Who is your competitor then?
- Ugaoo is one of our biggest competitors. - Okay.
As such, I haven't...
You and the investor will make returns
only in the purchase of the company
or if you offer an IPO to the public.
We are too young
to make up our mind about it.
I could prefer doing both but I am not sure
- of the commitment versus action. - Good answer.
We are way too young.
Kunal, I mean, I cannot assure any investor
of giving them an exit in an IPO
or by acquisition of my company by someone else.
What do you say to a VC who questions this to you?
Do you ask them to invest without any future plan?
We are growing and we will make profits.
Certainly and soon!
What is your moat?
Our biggest moat
is the supply chain.
The second moat is execution.
Isn't perseverance your moat?
[chuckles]
Is perseverance your moat?
Uh...
[buzzer rings]
And you're safe!
Thank you, guys.
- Thank you, Sharks! - Thank you so much!
- See you soon. - See you.
[theme music playing]
[intense music playing]
Welcome back, Annu.
- Thank you, Vineeta. - Are you nervous?
A little bit.
Which one among both of you do you think will grab the deal?
Of course, I will.
[chuckles]
I think your journey,
while it's very interesting, I think,
considering your struggle,
you sometimes come across as trying too hard.
Sometimes the things you say,
for instance you mentioned about Indicorn to Kunal.
So, sometimes your answers, rather than having naivety of saying
that you are not aware
or aren't sure of it,
there is a whole element of
using buzz words
or jargons.
- I could sense that. - Okay.
But what I really like is that
you are putting your heart into your brand
and you have done some quote unique things
like a large percent of your business
derives from modern trade and offline means
and I know the economics of the same very well.
That is also the reason behind your total marketing cost being 9% only
So I like the fact that people have rejected your mode
due to lack of perseverance
is your biggest strength.
And your superpower is
the patience you have
to build it for another 50 years.
So I will make you an offer.
Oh wow!
My offer is
a little higher than the valuation
Vijay made for you.
I am giving you a valuation of Rs. 40 crores.
Wow!
- Rs. 50 lakhs for 1.25%. - Yes.
Plus another Rs. 50 lakhs
at 10% interest cost which is debt for a period of three years.
In India, there is value for money and not for convenience.
And for the next 20 years,
every local gardener will be undercutting you.
So the margin of your business ranges between 2% to 4%.
[intense music playing]
From an investor perspective, I don't think I'll make money.
- So, I am out. - Sure.
- Good luck, man. - Thank you, Anupam.
Annu, I loved your product and packaging.
But I couldn't see the hunger and the ambition.
You said that you want to value your company at Rs. 100 crores.
- Rs. 100 crores? Next year? - Yes.
I can't invest in a company
with an ambition to make Rs. 100 crores
and is here to raise the valuation at the same.
It is our vision.
I can't see it today and that's why, unfortunately, I am out.
Be the number one player.
- Not just one of the players. - Yes.
Yes. Thank you so much for the feedback.
Annu, it was a pleasure meeting you after so many years.
And you have come a long way.
You have matured as well.
You have grown your business too.
There is an authenticity within you
which makes you the right man with a good heart.
Your offline distribution
is your strength.
But online market is the future.
Absolutely.
Your economics will face a lot of pressure soon.
Absolutely.
Because you won't be able to
- grow your business without going online. - That's right.
Because the economics for the same is not clear,
even though my heart said yes, today my mind says no.
So, I am sorry, but I am out today.
- Alright. Thank you so much. - And all the best.
There are a few things I love about
your business which is 9% marketing
and having a good sales and P&L in spite of that.
More than 50% of your sales...
- For the future, maybe. - I liked your clarity of vision.
Let me tell you at what point I am a bit confused.
It is bothering me a little bit.
When we asked you about the moat,
you said resilience and we were going to move ahead
and then I wanted to get back
- and asked you to tell me about your moat. - Yes. My moat.
And then you struggled a bit
but you said packaging and then you said supply chain.
So, I think there is lack of clarity of vision here.
Sure.
Today, I am out.
- Because I am not getting that conviction. - Okay. Sure.
But I have a strong feeling that
you will prove me wrong and we will meet again.
- Yes. Definitely. - Thank you.
So, can I have a right to give a counter there?
You would have the right earlier
but now it is just us in the green world.
So I don't think
any of your counter offer will work and I have been very generous.
- From your last round... - But I raised the last round
- when the revenue was Rs. 9 crores. - I know. Look!
We are making a revenue of Rs. 28 crores today.
We are making the same multiples even now.
Do you know how the value for fundraising is determined?
How is it done?
Demand and supply.
Not valuation based on multiple,
not DCF either.
- Right. - It is based on demand and supply.
Right.
Okay, Annu, it's decision time. Don't take 14 years now.
[laughing]
No, no. I'll make quick decisions.
Buddy, hire Mr Jackie Shroff before your competitor hires him.
[camera shutter clicking]
[theme music playing]
In this concept of match off,
there are many benefits for the investors.
Because we can see the comparables.
And comparables are very useful for investors.
But for me, the game that you're playing
where you're risking your employees' salaries
and are still spending 80 lakhs to 90 lakhs on marketing.
So for me, this deal will not work today. I'm out.
Nice logo, nice brand,
self-watering planters. Great solution to
a real problem.
But a wave comes once every few years in this category
and everyone runs to invest their money in this.
Because they think that's the next big company.
It won't happen in this category.
Not in India, at least.
It's not like that, Anupam.
- Okay. - If we look at it this way,
then we wouldn't be at such a strong CM1
and we wouldn't be making a CM2.
This is a business of plants. Don't fool yourself.
I'm out. Good luck.
Thank you.
Saksham and Agam.
A weak P&L is something that I would've lived with.
Because it is an initial issue in an entrepreneur's growth story.
What is bothering me is the lack of clarity
of product strategy in the next three to five years.
You know I like to bet on founders who have a very clear vision
of what they want in two years, three years
and so on. No one can predict.
But at least from a product perspective
that product wise where you want to go.
What has to be done with the hydration meter?
What has to be done about the plant's water reservoir?
And in garden products you have only one plant food
and whether you want to scale that or not.
For that reason, today, I'm out. But I wish you the best.
Thank you, Namita.
You're a part of a race where you've forgotten
that building a business is a marathon.
- It's not like you'll sprint and win. - Correct.
You're thinking about tomorrow but not for the day after that
in this entire business.
But there are some very good things in you.
I love the hunger and ambition in you.
Thanks a lot.
In my view, you need help in thinking long-term.
- How to build the number one business in this category? - For sure.
- And I can see that you have that ambition. - We will surely build it.
And I think you can do it.
With strategic help.
Kunal and I have made an offer.
I've been listening to that for about 12 to 13 years.
First, people said no one will buy phones using e-commerce.
Then they began to buy phones.
Saying, 'It's a standard product, it comes boxed. So it gets sold.'
Then someone said, people won't buy clothes.
Then they began buying clothes.
After that, they were sure that no one will buy beauty products online.
Because these products are tried in the store.
That also started selling.
You can include glasses too.
Glasses. Of course.
Another great example, right?
So, again and again and again,
I think this category will work.
Thank you.
Fortunes are built in contrarian bets.
Investors don't make money in consensus bets.
They make money in contrarian bets.
There is a high risk here.
You've exhausted your money too.
We'll invest four crore rupees.
Okay.
For 10% of the company.
[tense music playing]
One crore and three crores.
2.5% and 7.5%.
This could be the most important deal of this company's life.
Think for two minutes. Come back and then talk to us.
- Sure. Just give us two minutes. - Okay.
- They'll tell us stories of how previous rounds were. - I know.
- They are in great denial. - We had promised this...
How does it matter? I don't know why founders...
are obsessed about what they've told whom.
Yes.
'They are offering a very low valuation.'
Yes, it's a very low valuation.
'You can think about it even if it's equal to the previous round.'
I don't want to equal the previous round.
It's not yet hit them
that they are in a very tight situation.
Come in, brothers.
Firstly, thanks for the offer.
The valuation in the last round,
- was more than your offer today. - Didn't I tell you?
There's a good jump in the revenue numbers
from last year to this year.
Then why have you come on Shark Tank?
- You're here to take help, right? - 100%.
In the beginning, you said, 'I want to make something big.'
If you want to make it big, then this is nothing.
Technically, if you wish...
[pensive music playing]
What's your counteroffer, guys?
Our counteroffer is, that if we can
give 2% equity at 80 crores valuation.
- I... - Kunal, please try to understand what I'm saying.
Your train is leaving. Think quickly.
- Let me say one thing. - The train is leaving.
I understand your point.
Are you ready for the train to leave the station?
Obviously not.
Then, this is not a good counter.
Don't come under the pressure.
Leave the Anti-Dilution trigger to us.
None of that will happen.
40 crores valuation will become very less.
Is this your final offer?
Think about it once again.
- Shall we... - No.
I don't want to dilute.
- Let's not dilute so much... - But then...
- The younger one is clever. - Yes.
Sharks, the valuation is very low.
Please try to improve your offer a bit. Please.
- Give them some final counter. - Please, Sharks,
I'm sure you won't regret your decision.
You're betting on very nice founders.
[tense music playing]
I think
your emotional plea is very appealing.
- To please you, we can move 40 crores valuation to 45 crores. - Huh?
Kunal, it will be very little.
Please reduce the amount.
If we reduce the amount to 45 crores, will you do it?
Shark... Kunal, please try to understand me.
We are at 30 crores RR.
And we are targeting 45 crores RR.
You're forgetting that you have 30 lakhs bank balance,
and you have 50% for marketing in your business.
And there is a business that has got 50 crores funding.
You're not understanding all of that.
And you have come to take a strategic help
but you feel that it has no value.
It's not like that, Peyush.
That's not reflecting in your counter.
I think you have to decide now
whether you want to make this deal or not.
Let's not negotiate further.
Do you know the quality of great founders? They are decisive.
They don't higgle-haggle.
They either say yes or they say no.
What do you want to do?
[dramatic music playing]
Can we bring it to 60 crores?
Sorry, guys. I'm out.
No, sorry.
- Thank you very much. - Okay. Best of luck.
We really appreciate it.
- All the best. - Can we do anything on 50 crores?
I think they're out now.
So I think this is a good learning, a good feedback for you.
- Let's move on, guys. - Thank you, Sharks.
- Thank you. - Thank you. - Best of luck.
- Thank you, guys. - Good luck
'It's a long journey.'
'As Peyush said it's not a sprint, it's a marathon.'
'We'll need fuel all the time to run a marathon.'
If we would have diluted so much, and that too at such a low valuation,
then maybe we would have problems.
It's both happy and sad.
Uh... Happy that Vineeta trusted us
and sad that I think at the end
I couldn't properly convey
to Peyush, Namita
and especially Kunal, about my vision.
We are so happy that he got the deal.
I don't have any regrets
that I did not get the deal.
But for sure, it's good for my business.
All in all, yes,
it was a once-in a lifetime experience.
I don't know if this will happen in my life again.
I'm really grateful and blessed.
Overall, the experience and feedback was very good.
We will surely work on the feedback that we got from the Sharks.
Welcome to ACKO Change Makers
where we really welcome change.
It has been beautifully portrayed, here, behind me
on this Change Makers Wall.
Using innovation and connectivity
we are making a digitally empowered sustainable future.
And our Change Makers for today are Agam and Saksham.
Not everyone has a fear of this,
but they find it tedious to become a plant parent because
it needs a lot of hard work. And it's not sustainable too,
How can we bring a change to make it easier and more sustainable?
Plant care is not all that hectic either.
- You can use home remedies to take care of your plants. - Hmm.
- For example, rice water. - Hmm.
Leftover tea leaves.
- Or even turmeric. - Ah... Okay.
- These can provide good nutrients to plants. - Hmm.
It's not a must that you have to use chemicals.
- You can use organic home remedies - Hmm.
For the growth of the plant.
Amazing. Thank you so much. You're bringing a great change
and I also as a plant parent will surely
bring these changes that you've recommended.
Similarly, with it's revolutionary offering, ACKO
is changing the landscape of insurance.
While buying car insurance
get rid of spam calls.
Avoid the confusion between price and policy coverage.
Get ACKO's car insurance.
It's easy, transparent
hassle-free and with the right premium.
And guys, to celebrate your time in the Tank,
you did very well,
we'd like to give you a memento on behalf of ACKO and Shark Tank.
Thank you.
Here you go.
[camera shutter clicking]
- Welcome to the PokerBaazi zone, Annu - Thank you.
Where you hold the cards.
- Have you ever played poker? - Many times.
Does it feel very similar to running a business?
Even in business, you know there are phases like this.
There's an introductory phase,
then there's growth and maturity
and you have been in the business for quite some time.
Do you want to share any anecdotes or stories from any phase?
It could be from any part of your entire journey with Nurturing Green.
Just like you mentioned
entrepreneurship and poker
- are games where you need to go all in. - Hmm.
- When I started this at the age of 23 after coming back from Austria - Hmm.
Everyone said, 'What are you doing?'
- Hmm. - My dad didn't talk to me for 18 months.
- Really? - He said, 'Our son has lost his mind.'
'You're selling plants, how much can you earn by selling plants?'
So, that was an all-in moment for me.
- Going against the emotions, going against everybody. - Hmm.
But I'm here today. I'm sure my family must be proud
that I'm doing something good.
How lovely. You narrated a wonderful anecdote.
If we look at this as your poker hand
- then you have a very good hand. This is a two-pair. - Yes.
Then log on to PokerBaazi and draw your winning hand.
Download the app now.
'Shark Tank India, co-presented by ACKO Insurance,
'PokerBaazi and Swiggy Instamart.'
'Co-powered by Adani, and Jaquar Bath and Light.'
'And partners, Rayzon Solar, ICICI Direct,'
'Lenskart and Sofy.'
Which is not a big achievement
because the other Sharks are surviving on 'Biryani.'
- How are you? - I'm absolutely fine.
- Today's question has come from Tanvi Kulkarni from Bengaluru. - Hmm.
We'll meet you in the next 'Ask The Shark'
with a new question and a new Shark.