1 00:00:10,000 --> 00:00:11,400 [theme music playing] 2 00:00:29,640 --> 00:00:32,440 [music playing] 3 00:00:50,440 --> 00:00:53,120 [theme music playing] 4 00:01:06,920 --> 00:01:09,240 [theme music playing] 5 00:01:19,440 --> 00:01:20,920 Sharks, before we start 6 00:01:21,080 --> 00:01:23,680 I would like to introduce you to my friend Anshul 7 00:01:23,840 --> 00:01:25,760 who wants to show you something. 8 00:01:27,560 --> 00:01:28,600 Hi, Anshul. 9 00:01:33,640 --> 00:01:35,280 Amazing! 10 00:01:36,240 --> 00:01:38,120 Your dribbling is also good. 11 00:01:43,800 --> 00:01:47,680 Sharks, what you just saw is the future of prosthetics. 12 00:01:49,320 --> 00:01:52,520 Gone are the days when our specially-abled community 13 00:01:52,760 --> 00:01:57,360 had to use crutches or a bad quality long stump foot. 14 00:01:57,960 --> 00:02:00,320 Therefore, we bring to you, Fupro. 15 00:02:02,120 --> 00:02:03,880 Fupro is a healthcare brand 16 00:02:04,000 --> 00:02:07,280 where we create high-quality and affordable prosthetics 17 00:02:07,360 --> 00:02:10,240 through groundbreaking research and innovation. 18 00:02:15,000 --> 00:02:16,960 Its special elastic material 19 00:02:17,040 --> 00:02:18,880 provides a spring-like functionality, 20 00:02:19,120 --> 00:02:20,960 similar to a natural foot. 21 00:02:40,480 --> 00:02:43,040 Sharks, this was just a trailer. 22 00:02:43,320 --> 00:02:45,200 We produce around 20 similar products 23 00:02:45,360 --> 00:02:48,000 that are designed and manufactured in-house. 24 00:02:55,600 --> 00:02:57,120 All our products 25 00:02:57,320 --> 00:02:59,040 are 50%-80% more affordable 26 00:02:59,240 --> 00:03:01,720 compared to international benchmarks, 27 00:03:01,800 --> 00:03:06,040 without compromising on quality in any way. 28 00:03:11,360 --> 00:03:13,280 ...get good-quality prostheses. 29 00:03:13,400 --> 00:03:17,440 We are the only ones who have developed 30 00:03:17,520 --> 00:03:19,240 all prosthetic technologies under one roof. 31 00:03:19,440 --> 00:03:22,040 And we made it accessible for everyone. 32 00:03:22,200 --> 00:03:26,600 Sharks, we've already empowered 15,000 people. 33 00:03:26,800 --> 00:03:28,840 We started with prosthetics, 34 00:03:29,000 --> 00:03:30,200 but we won't stop here. 35 00:03:30,360 --> 00:03:33,520 Our vision is to create the right products for every special need, 36 00:03:34,000 --> 00:03:37,200 from vision and hearing impairments to paralysis. 37 00:03:48,800 --> 00:03:50,920 [music playing] 38 00:04:07,400 --> 00:04:10,880 - Sorry to hear. - Through this medium, I would like to say 39 00:04:10,960 --> 00:04:13,600 that we hear so much about motorcycle accidents 40 00:04:13,920 --> 00:04:15,840 - that it's become scary. - Yeah! 41 00:04:24,320 --> 00:04:27,080 - Since when are you using Fupro? - From the last four years, sir. 42 00:04:27,160 --> 00:04:29,760 - Have you tried other brands? - Yes, sir. 43 00:04:29,840 --> 00:04:32,000 What do you think is the difference between them and this? 44 00:04:32,000 --> 00:04:33,480 Sir, it's cost-effective. 45 00:04:33,720 --> 00:04:35,480 And it's lighter in weight. 46 00:04:43,760 --> 00:04:47,000 Sir, prosthetics have levels, K1, K2, K3 and K4. 47 00:04:47,080 --> 00:04:48,160 K4 is considered high-end 48 00:04:48,280 --> 00:04:50,120 in comparison to the K2 and K3 levels. 49 00:04:55,600 --> 00:04:58,200 Basically, it's designed like a blade 50 00:04:58,280 --> 00:05:00,000 which gives you extreme spring action. 51 00:05:00,120 --> 00:05:02,120 Not everyone can use it easily. 52 00:05:02,200 --> 00:05:04,160 You get a sudden jump. 53 00:05:04,240 --> 00:05:05,520 There are chances that you might fall. 54 00:05:05,520 --> 00:05:07,320 - Can you use it? - Yes, sir. 55 00:05:07,400 --> 00:05:09,600 Sire, I am an athlete. I am a national medallist 56 00:05:09,680 --> 00:05:11,880 - Oh, wow! - I am a paraglider pilot, as well. 57 00:05:12,080 --> 00:05:13,560 - What are you saying? - And a para mountaineer. 58 00:05:13,600 --> 00:05:14,600 Fantastic. 59 00:05:14,640 --> 00:05:16,320 Were you doing it before, or did you start recently? 60 00:05:16,360 --> 00:05:18,640 - Sir, I started post-accident. - Okay! 61 00:05:18,720 --> 00:05:20,400 Prior to that, I was preparing for defence. 62 00:05:20,440 --> 00:05:21,960 - Okay! - I was an NCC Cadet. 63 00:05:22,160 --> 00:05:23,480 - Very proud of you. - After that. 64 00:05:23,600 --> 00:05:25,560 Sorry, with what happened, 65 00:05:25,680 --> 00:05:28,200 But you turned your obstacle into an opportunity 66 00:05:28,280 --> 00:05:30,000 - and you became an athlete. You are very positive. - Thank you! 67 00:05:30,040 --> 00:05:30,960 Thank you, Anshul. 68 00:05:31,040 --> 00:05:32,040 Thank you, sir. 69 00:05:32,040 --> 00:05:33,840 - Thank you, Anshul. - Take care, bye. 70 00:05:34,920 --> 00:05:38,040 Team Fupro, welcome to Shark Tank. 71 00:05:38,240 --> 00:05:41,680 The best validation for any business is a happy customer. 72 00:05:42,000 --> 00:05:46,000 So, the way Anshul appreciated your products, 73 00:05:46,160 --> 00:05:48,640 and the way it changed his life, it's fantastic. 74 00:05:48,760 --> 00:05:51,080 - Thank you, ma'am. - I want to ask you about your journey. 75 00:05:59,240 --> 00:06:02,080 Over there, we were a part of the Formula student team. 76 00:06:02,120 --> 00:06:04,280 We used to make race cars. 77 00:06:04,680 --> 00:06:06,680 I had designed 78 00:06:06,840 --> 00:06:09,840 and manufactured a race car. 79 00:06:09,960 --> 00:06:11,640 We used to go to Germany and compete 80 00:06:11,760 --> 00:06:13,600 in international level competitions. 81 00:06:13,960 --> 00:06:15,920 After that in 2016, 82 00:06:16,080 --> 00:06:17,840 my knee surgery took place. 83 00:06:18,200 --> 00:06:23,480 Then I truly understood how challenging it is to be immobile. 84 00:06:23,800 --> 00:06:26,400 It compromises your freedom. 85 00:06:26,600 --> 00:06:28,560 So, I felt that I needed to be independent 86 00:06:28,640 --> 00:06:30,920 so that I can do things on my own, instead of depending on anyone. 87 00:06:30,920 --> 00:06:33,840 And I am a patriotic person. 88 00:06:34,280 --> 00:06:36,600 My dream of joining the army wasn't fulfilled. 89 00:06:36,680 --> 00:06:39,560 But I clubbed these two 90 00:06:39,840 --> 00:06:43,040 because I want to empower 91 00:06:43,240 --> 00:06:45,120 our soldiers who lost their legs in a war. 92 00:06:45,640 --> 00:06:48,760 And then I started it as a college project. 93 00:06:49,360 --> 00:06:52,640 I've completed BTech in Electronics and Communication... 94 00:06:59,080 --> 00:07:02,520 ...who is good in electronics, because he was in mechanical. 95 00:07:02,600 --> 00:07:05,120 We started this as a college project. 96 00:07:05,200 --> 00:07:07,560 In BioAsia, 2018, 97 00:07:07,720 --> 00:07:11,040 we were voted as the top startups to look out for in 2018. 98 00:07:17,560 --> 00:07:20,600 Along with that, there was a competition for engineering projects 99 00:07:20,680 --> 00:07:22,960 called Quest Global. 100 00:07:23,040 --> 00:07:24,920 We were 2nd runner-up in that competition. 101 00:07:25,040 --> 00:07:27,080 So, when we got all of this, we got a lot of money also. 102 00:07:27,120 --> 00:07:29,200 We got Rs. 25,000 from Quest Global. 103 00:07:29,280 --> 00:07:31,800 VIT gave us funding of Rs. 1 lakh... 104 00:07:36,560 --> 00:07:39,320 ...let us take this a little bit forward and do something with this. 105 00:07:39,400 --> 00:07:40,600 Tell me something. 106 00:07:40,680 --> 00:07:44,400 You said you were appreciated at MIT and you won an award. 107 00:07:44,520 --> 00:07:46,240 What were you given an award for? 108 00:07:46,320 --> 00:07:49,480 As far as I understand, these things exist. 109 00:07:49,560 --> 00:07:51,000 So, what were you given an award for? 110 00:07:58,080 --> 00:07:59,640 It had sensors 111 00:07:59,720 --> 00:08:02,480 that could adapt to the user's movements while walking. 112 00:08:11,720 --> 00:08:14,120 - But we didn't see those products today, right? - No! 113 00:08:14,320 --> 00:08:15,720 So, that was the college project. 114 00:08:15,840 --> 00:08:17,240 When we started our company, 115 00:08:17,360 --> 00:08:19,520 we put a lot of research into it. 116 00:08:19,680 --> 00:08:22,280 And we created prototypes and kept them aside. 117 00:08:22,440 --> 00:08:23,640 - Got it! - Because we understood that 118 00:08:23,640 --> 00:08:25,520 the Indian market is not ready for this product. 119 00:08:25,600 --> 00:08:27,640 - It will cost around Rs. 7-Rs. 8 lakhs. - Okay! 120 00:08:27,720 --> 00:08:29,520 So, it's very expensive for the Indian market. 121 00:08:29,680 --> 00:08:33,160 Then, we came up with products that the Indian market needs 122 00:08:33,280 --> 00:08:35,760 with improved quality at a price that the market needs. 123 00:08:35,840 --> 00:08:38,400 - We are... - Did you stop working on those products 124 00:08:38,480 --> 00:08:39,360 - or is it going on? - It is in the pipeline. 125 00:08:39,480 --> 00:08:41,560 - We will do that in the future. - Got it, thank you. 126 00:08:42,200 --> 00:08:44,400 So, you're aiming to provide better quality 127 00:08:48,000 --> 00:08:50,960 - Could you please tell us about your competitive landscape? - Yes. 128 00:08:58,440 --> 00:09:02,280 Our competition mainly consists of foreign players. 129 00:09:02,360 --> 00:09:03,880 Aren't there Indian brands? 130 00:09:03,960 --> 00:09:06,840 So far, Jaipurfoot has been the leading competitor 131 00:09:06,920 --> 00:09:08,440 in the market. 132 00:09:08,520 --> 00:09:10,680 And this SACH Foot 133 00:09:10,760 --> 00:09:12,720 is made by other companies in India. 134 00:09:12,880 --> 00:09:14,440 But what differentiates us from them 135 00:09:14,560 --> 00:09:17,400 is that SACH Foot uses polyurethane as its core technology. 136 00:09:32,240 --> 00:09:35,000 Compared to Indian competitors, 137 00:09:35,200 --> 00:09:38,640 our products are approximately 10%-15% cheaper. 138 00:09:42,880 --> 00:09:46,880 You mentioned that it is 50%-80% cheaper than foreign brands. 139 00:09:47,040 --> 00:09:48,960 Can you compare your products to theirs 140 00:09:49,040 --> 00:09:50,280 in terms of features and technology? 141 00:09:50,320 --> 00:09:52,920 The competition's Carbon Fibre Foot 142 00:10:05,920 --> 00:10:08,200 [music playing] 143 00:10:12,080 --> 00:10:14,120 - Which one? This one! - This one is the Grace Foot. 144 00:10:15,520 --> 00:10:17,320 And this costs Rs. 18,500. 145 00:10:17,400 --> 00:10:19,360 No! I am talking about the foot alone. 146 00:10:19,800 --> 00:10:22,400 If you add all the products it comes to Rs. 30,000-Rs 35,000. 147 00:10:28,040 --> 00:10:31,680 - Can you show me how you assemble it? - It's amazing. 148 00:10:32,320 --> 00:10:33,600 You can use this. 149 00:10:33,880 --> 00:10:35,160 - This one? - Yes. 150 00:10:35,360 --> 00:10:37,280 This here. 151 00:10:37,520 --> 00:10:39,320 Is this foot sold separately? 152 00:10:39,960 --> 00:10:42,000 - Yes. - And what is this priced at? 153 00:10:42,120 --> 00:10:42,960 Ra. 18,500. 154 00:10:43,080 --> 00:10:46,000 - And do you have to buy this separately? - Correct. 155 00:10:46,280 --> 00:10:47,320 And this is separate. 156 00:10:47,440 --> 00:10:49,800 Doctors make this. It's customised according to the patient. 157 00:10:49,920 --> 00:10:52,200 - You don't make these. - No, we don't. 158 00:10:52,400 --> 00:10:54,640 How much do these two cost? 159 00:10:54,920 --> 00:10:56,320 Roughly, Rs. 24,000. 160 00:10:56,400 --> 00:10:58,360 What is so special about this? I don't see... 161 00:10:58,680 --> 00:11:01,000 There is no flexibility in the ankle. 162 00:11:01,200 --> 00:11:02,280 - Correct. - For example. 163 00:11:02,400 --> 00:11:04,720 And I don't see 164 00:11:05,320 --> 00:11:08,760 any absorber or shock-absorber technology in these products. 165 00:11:09,240 --> 00:11:11,760 So, what's the key? I am not able to understand. 166 00:11:13,320 --> 00:11:14,440 The front... 167 00:11:19,200 --> 00:11:22,160 It is highly flexible and is an elastic material. 168 00:11:22,320 --> 00:11:23,960 - And its functionality... - Is this what Anshul wore? 169 00:11:23,960 --> 00:11:25,760 Yes, he was wearing this. So you can see this. 170 00:11:28,200 --> 00:11:30,920 I don't see any movement or mobility here. 171 00:11:31,040 --> 00:11:32,240 Or even here or here. 172 00:11:32,320 --> 00:11:34,960 So, movement and mobility come to work when there is weight. 173 00:11:35,080 --> 00:11:36,480 Around 70-80 kg 174 00:11:36,720 --> 00:11:38,920 weight has to come on it. And because of that weight, 175 00:11:39,600 --> 00:11:43,000 this C-shape will bend. 176 00:11:43,880 --> 00:11:46,560 So, compared to carbon... Carbon Fibre Foot 177 00:11:46,760 --> 00:11:48,160 is a foreign product. 178 00:11:48,240 --> 00:11:50,920 So, this material is also flexible. 179 00:11:51,040 --> 00:11:52,760 - And the strength is also equivalent. - Which material is it? 180 00:11:52,800 --> 00:11:54,280 It's an elastomer. 181 00:12:08,120 --> 00:12:10,440 I have been doing programming since the seventh grade. 182 00:12:10,560 --> 00:12:14,200 When I was in college, I was one of the best programmers in the country. 183 00:12:14,280 --> 00:12:15,800 - Fantastic! - Wow! 184 00:12:15,880 --> 00:12:17,560 So, what we've done is 185 00:12:17,680 --> 00:12:20,560 we've done machine learning and AI in product development. 186 00:12:29,200 --> 00:12:30,840 ...and set constraints, 187 00:12:31,160 --> 00:12:33,720 such as size and the weight that will be put on it. 188 00:12:33,920 --> 00:12:37,040 This model generates multiple designs, 189 00:12:37,160 --> 00:12:40,880 tests them and simulates walking patterns. 190 00:12:54,080 --> 00:12:55,880 We have three kinds of SACH Foot. 191 00:12:56,160 --> 00:12:59,560 One is Grace Foot. Foot range contributes to 20% of sales. 192 00:13:03,080 --> 00:13:05,840 Compared to this, how much does Jaipurfoot sell it for? 193 00:13:18,920 --> 00:13:21,840 many people tried to disrupt Jaipurfoot. 194 00:13:21,920 --> 00:13:23,480 But that is what is sold in India. 195 00:13:23,960 --> 00:13:25,520 - Correct! - What's the reason for that? 196 00:13:25,600 --> 00:13:27,440 Actually, that is a great product. 197 00:13:27,560 --> 00:13:29,800 - I personally love that product. - Yes. 198 00:13:29,960 --> 00:13:32,440 Let me explain a bit about the anatomy. 199 00:13:32,760 --> 00:13:35,200 I would prefer to answer this from a biomechanics perspective. 200 00:13:35,360 --> 00:13:38,240 Our heart is on top and our feet are down. 201 00:13:38,440 --> 00:13:41,120 So, our blood flows from top to bottom through gravity. 202 00:13:41,240 --> 00:13:43,480 But how does the blood travel from the bottom to the top? 203 00:13:43,760 --> 00:13:46,240 The blood moves upwards due to the compression 204 00:13:46,320 --> 00:13:49,120 of the calf muscles, which push the blood upwards against gravity. 205 00:13:49,520 --> 00:13:51,920 Now, when the leg is amputated, 206 00:13:52,200 --> 00:13:53,800 the calf muscle is lost. 207 00:13:53,880 --> 00:13:55,400 Now what is pushing the blood up? 208 00:13:56,040 --> 00:13:59,440 Nothing is. The heart has to pump blood from one side, 209 00:13:59,520 --> 00:14:02,000 - ensuring blood flow from the other side. - Okay. 210 00:14:02,280 --> 00:14:03,720 So, what happens is 211 00:14:04,000 --> 00:14:05,960 your heart rate increases. 212 00:14:06,040 --> 00:14:08,400 And because of that, there is an increased metabolic rate. 213 00:14:08,480 --> 00:14:10,880 - It results in blood pressure problems. - You are right. 214 00:14:11,480 --> 00:14:13,520 So, your body part was amputated, 215 00:14:13,600 --> 00:14:15,120 and now you have blood pressure problems. 216 00:14:15,160 --> 00:14:16,640 And you have all the secondary problems like 217 00:14:16,640 --> 00:14:18,360 - anxiety, depression... - Absolutely right. 218 00:14:18,440 --> 00:14:20,920 Listen, I am interested in this because 219 00:14:21,080 --> 00:14:23,840 an incident took place in my family a few years ago. 220 00:14:24,080 --> 00:14:26,080 My cousin came under a train. 221 00:14:26,440 --> 00:14:29,040 And he lost his hand and leg. 222 00:14:29,400 --> 00:14:32,480 Unfortunately, I was carrying his feet in a bag 223 00:14:32,880 --> 00:14:34,800 to see if they can attach it back. 224 00:14:35,080 --> 00:14:37,080 Eventually, we used prosthetics. 225 00:14:37,560 --> 00:14:39,320 But I want to validate what you said. 226 00:14:39,400 --> 00:14:41,240 You mentioned heart rate problems. 227 00:14:41,520 --> 00:14:43,200 These are very real. 228 00:14:43,240 --> 00:14:45,080 Because that's exactly what he's going through. 229 00:14:45,160 --> 00:14:47,200 We didn't know that it was because of this action. 230 00:14:47,400 --> 00:14:50,080 So, I just wanted to thank you for educating me about that. 231 00:14:50,160 --> 00:14:52,160 We will research more on this. 232 00:14:52,280 --> 00:14:55,680 - And I'd like to stay in touch to try and help him out. - Yes. 233 00:14:55,880 --> 00:14:58,120 So, just to answer your question, Anupam. 234 00:14:58,320 --> 00:15:00,240 One parameter we consider 235 00:15:00,640 --> 00:15:03,320 for a prosthetic foot is that it should be flexible. 236 00:15:03,480 --> 00:15:06,520 But actually, flexibility is only half the story. 237 00:15:06,600 --> 00:15:09,160 It should also return within the same amount of time 238 00:15:09,320 --> 00:15:12,680 as the walking cycle requires. 239 00:15:12,920 --> 00:15:15,720 For example, if I compress a spring and a foam 240 00:15:15,920 --> 00:15:17,120 to the same level, 241 00:15:17,240 --> 00:15:18,880 both will compress, 242 00:15:19,040 --> 00:15:20,840 but one will return quickly, while the other will take its time. 243 00:15:20,880 --> 00:15:21,920 You are saying that, 244 00:15:21,960 --> 00:15:24,120 compared to the JaipurFoot, your product 245 00:15:24,120 --> 00:15:25,960 - returns to its original position more quickly. - Yes. 246 00:15:26,000 --> 00:15:28,600 This phenomenon in prosthetic terminology 247 00:15:28,760 --> 00:15:30,920 is known as energy storage and return. 248 00:15:31,000 --> 00:15:32,240 ESR. 249 00:15:32,320 --> 00:15:36,120 In Grace Foot, there is a significant component of ESR. 250 00:15:36,200 --> 00:15:38,480 But are the patients and clients 251 00:15:38,720 --> 00:15:41,560 able to understand something so technical? 252 00:15:41,640 --> 00:15:43,000 Or do they only look at the price? 253 00:15:43,160 --> 00:15:44,920 They feel it. 254 00:15:45,120 --> 00:15:47,960 When they think that this product is pushing them, 255 00:15:48,040 --> 00:15:49,800 I am able to walk more. 256 00:15:49,960 --> 00:15:53,040 But Nimish, is this decision maker a patient or a doctor? 257 00:15:53,160 --> 00:15:54,600 I mean, I am sure 258 00:15:54,680 --> 00:15:57,600 that the patient goes to the doctor and the doctor decides. 259 00:15:58,040 --> 00:16:01,720 And ultimately, your customer is the doctor and not the patient. 260 00:16:01,880 --> 00:16:04,000 - Yes. - Yes, we sell it to the doctors. 261 00:16:07,360 --> 00:16:09,400 What is the market size? 262 00:16:09,800 --> 00:16:11,640 It is a Rs. 15,000 crore market 263 00:16:21,040 --> 00:16:23,280 Cyril and Nimish, tell us a bit about your business. 264 00:16:23,680 --> 00:16:26,800 In the financial year 22-23, we were at Rs. 2.16 crores. 265 00:16:27,960 --> 00:16:31,000 In financial year 23-24, it was Rs. 2.50 crores. 266 00:16:31,360 --> 00:16:33,840 In 24-25, our projected sales is Rs. 5 crores. 267 00:16:37,440 --> 00:16:39,080 Why is the growth so slow? 268 00:16:39,480 --> 00:16:41,760 Rs. 2.16 crores. 269 00:16:42,040 --> 00:16:45,880 And the following year, there was only a 20% growth. 270 00:16:46,080 --> 00:16:47,920 The figure of Rs. 2.5 crores 271 00:16:48,000 --> 00:16:50,600 came from our operations in 2022-2023. 272 00:16:50,720 --> 00:16:53,360 Initially, we sold directly to P&O. 273 00:16:58,840 --> 00:17:02,960 PAN India freight and ensuring timely delivery to customers. 274 00:17:03,760 --> 00:17:06,240 So, we decided to switch to a distribution model 275 00:17:06,320 --> 00:17:07,760 by working with distributors. 276 00:17:08,160 --> 00:17:10,280 So, in 2022-2023, 277 00:17:10,440 --> 00:17:12,320 when we had a sale of Rs. 2.16 crores, 278 00:17:12,560 --> 00:17:14,400 we had appointed distributors 279 00:17:14,480 --> 00:17:16,560 who sold surgical products. 280 00:17:16,760 --> 00:17:19,600 We chose distributors and sold our products to them. 281 00:17:19,760 --> 00:17:22,000 However, they lacked the right connections 282 00:17:22,120 --> 00:17:25,840 and product knowledge to effectively promote and sell those products. 283 00:17:26,120 --> 00:17:28,000 So, they had the stock. 284 00:17:28,080 --> 00:17:31,760 And then, when we were selling in 2023-2024, 285 00:17:31,840 --> 00:17:35,000 we had to sell off some of the stock from the previous year as well. 286 00:17:35,280 --> 00:17:39,360 So, effectively, in 2023-2024, we could have actually done 287 00:17:39,480 --> 00:17:41,200 around Rs. 3 crores in sales. 288 00:17:41,320 --> 00:17:42,920 Can you just tell us 289 00:17:43,120 --> 00:17:45,400 the bottom line for this year and how it's trending? 290 00:17:45,520 --> 00:17:47,960 But start from the previous years, from FY22-23. 291 00:17:48,080 --> 00:17:52,080 FY22-23, our EBITDA was 15% 292 00:17:52,320 --> 00:17:55,040 FY23-24, 0.3%. 293 00:17:55,200 --> 00:17:57,480 And this year, we are targeting 20%. 294 00:17:57,800 --> 00:17:59,640 Currently, how are we doing now? In the first 6 months, 295 00:17:59,640 --> 00:18:01,160 you mentioned a sale of Rs. 1.5 crores. 296 00:18:06,720 --> 00:18:09,680 - How much is your gross margin? - The gross margin is 45%. 297 00:18:09,760 --> 00:18:11,480 - Got it. - Are you bootstrapped? 298 00:18:11,560 --> 00:18:12,680 We are bootstrapped. 299 00:18:12,880 --> 00:18:14,440 Who invested in the business? 300 00:18:14,520 --> 00:18:15,800 We invested our money 301 00:18:15,880 --> 00:18:17,400 and we have a third co-founder. 302 00:18:17,520 --> 00:18:18,840 What? 303 00:18:21,320 --> 00:18:22,520 We have a third co-founder. 304 00:18:22,600 --> 00:18:23,920 How much percent does he own? 305 00:18:24,000 --> 00:18:25,240 He has 40%. 306 00:18:25,640 --> 00:18:27,080 Okay, how much do you both have? 307 00:18:27,160 --> 00:18:29,160 We have 35% and 25%. 308 00:18:29,600 --> 00:18:31,480 But that person has more 309 00:18:31,560 --> 00:18:33,440 individual shareholding compared to both of you. 310 00:18:33,680 --> 00:18:35,320 They are our financial partner. 311 00:18:35,400 --> 00:18:37,320 So, initially, when we started out, 312 00:18:37,400 --> 00:18:39,640 Ashmeet Kaur, who is our third partner, 313 00:18:39,760 --> 00:18:42,920 was Nimish's family friend. 314 00:18:43,000 --> 00:18:45,920 And we needed somebody who could invest money. 315 00:18:46,000 --> 00:18:47,280 So, they were interested 316 00:18:47,400 --> 00:18:49,640 and they said they will invest money 317 00:18:49,720 --> 00:18:50,920 and become strategic partners. 318 00:18:50,960 --> 00:18:53,040 - They will support us with the business and help us out. - Okay. 319 00:18:53,080 --> 00:18:55,640 But they will not be working partners. 320 00:18:55,760 --> 00:18:58,560 But that doesn't make them a co-founder. 321 00:18:59,280 --> 00:19:00,720 She is a founding shareholder. 322 00:19:00,800 --> 00:19:01,800 Founding shareholder. 323 00:19:01,920 --> 00:19:03,160 How much did she invest? 324 00:19:03,360 --> 00:19:05,680 She has invested Rs. 2.5 crore. 325 00:19:06,680 --> 00:19:09,120 Why did you ask for a Rs. 60 crores valuation 326 00:19:09,200 --> 00:19:13,240 with sales of Rs. 2.5 crores in the prior year? 327 00:19:13,560 --> 00:19:17,040 With Rs. 5 crores in sales, we applied an 11 times multiple. 328 00:19:17,200 --> 00:19:18,520 That is Rs. 55 crores. 329 00:19:18,600 --> 00:19:21,320 And plus Rs. 5 crores for patents that we have. 330 00:19:21,800 --> 00:19:24,360 How do you plan three years from now? 331 00:19:24,440 --> 00:19:28,000 Currently, we are working on lower limbs in prosthetics. 332 00:19:47,240 --> 00:19:49,120 ...that you are creating a better solution 333 00:19:49,360 --> 00:19:53,280 for Indians who are struggling with accidents 334 00:19:53,520 --> 00:19:55,520 regardless of the type of accident they've faced. 335 00:19:55,720 --> 00:19:58,240 However, I feel there's a gap between what you're saying 336 00:19:58,880 --> 00:20:00,760 and what you're actually doing. 337 00:20:01,800 --> 00:20:04,920 For instance, in the beginning, you mentioned how patriotic you are 338 00:20:05,880 --> 00:20:07,120 and how you wanted to 339 00:20:07,240 --> 00:20:10,960 help the army and soldiers. 340 00:20:11,040 --> 00:20:12,960 But after that, that point wasn't revisited. 341 00:20:13,680 --> 00:20:16,400 You also mentioned using AI and ML. 342 00:20:16,480 --> 00:20:19,120 And your eyes lit up. Right? 343 00:20:19,240 --> 00:20:20,800 You were like a little child 344 00:20:21,560 --> 00:20:22,800 who could not contain himself. 345 00:20:24,840 --> 00:20:28,720 But these two things are not your business anymore. 346 00:20:29,000 --> 00:20:32,320 I think that maybe the 40% owner of this business 347 00:20:32,760 --> 00:20:34,880 who is not involved is behind this. 348 00:20:35,000 --> 00:20:37,840 Because they have invested the money and they want a return. 349 00:20:38,120 --> 00:20:41,240 But the path you're taking, 350 00:20:41,320 --> 00:20:44,360 I don't think it will lead to significant returns 351 00:20:44,440 --> 00:20:47,800 in a commoditised, small market like India. 352 00:20:47,920 --> 00:20:50,360 For those reasons, I am out. Good luck. 353 00:20:50,560 --> 00:20:51,840 Thank you, Anupam. 354 00:20:52,080 --> 00:20:53,640 I really like you guys. 355 00:20:53,800 --> 00:20:56,720 You have introduced innovation in every product. 356 00:20:56,800 --> 00:20:58,480 You've really applied your mind, 357 00:20:58,600 --> 00:21:00,600 understood the competing products 358 00:21:08,360 --> 00:21:10,480 The company's cap table... 359 00:21:10,600 --> 00:21:13,680 The shareholding structure has to be recapped. 360 00:21:14,640 --> 00:21:18,880 I feel the Rs. 2.5 crores that your existing investor has invested, 361 00:21:18,960 --> 00:21:22,240 she should get 25% 362 00:21:22,320 --> 00:21:24,480 for Rs. 2.5 crores she invested. 363 00:21:25,640 --> 00:21:27,760 The rest, 15% 364 00:21:27,960 --> 00:21:30,560 should be split equally between both of you. 365 00:21:36,800 --> 00:21:38,560 at a Rs. 20 crores valuation. 366 00:21:38,680 --> 00:21:40,560 Because I feel today 367 00:21:40,840 --> 00:21:43,320 the revenues of the company are in this Rs. 3 crores range, 368 00:21:43,840 --> 00:21:44,640 give or take. 369 00:21:44,720 --> 00:21:47,720 It's still a 6-7 times multiple, 370 00:21:47,800 --> 00:21:49,600 which is more than fair. 371 00:21:49,840 --> 00:21:52,400 If you need more money in the future, I will give it to you. 372 00:21:52,480 --> 00:21:55,160 You don't worry about that. We will make a big company. 373 00:21:55,640 --> 00:21:58,040 You can think about my offer if it makes sense. 374 00:21:58,120 --> 00:22:01,040 Okay! Ritesh and I would like to make you an offer. 375 00:22:01,600 --> 00:22:04,720 We will give you a valuation of Rs. 12 crores. 376 00:22:04,840 --> 00:22:08,040 - We will come in at Rs. 60 lakhs for 5%... - Rs. 12 crores... 377 00:22:14,640 --> 00:22:17,080 Thank you so much, Namita and Ritesh, for your offer. 378 00:22:17,200 --> 00:22:19,040 But I would like to hear Aman's offer as well. 379 00:22:20,040 --> 00:22:22,000 I love competing with global brands. 380 00:22:22,080 --> 00:22:24,840 Right? Indian brands can do crazy stuff. 381 00:22:24,920 --> 00:22:28,200 And I think both of you are capable of making a global brand. 382 00:22:28,280 --> 00:22:30,480 - Yes. - I don't know much about your industry. 383 00:22:30,600 --> 00:22:31,840 So, thank you for educating me. 384 00:22:31,920 --> 00:22:34,080 I am confident about Anshul. 385 00:22:34,200 --> 00:22:37,440 I doubt he can lie. There was truth in his eyes. 386 00:22:38,120 --> 00:22:41,280 I strongly encourage you to revive the project you discontinued. 387 00:22:41,360 --> 00:22:42,480 It holds great potential. 388 00:22:42,560 --> 00:22:45,440 I feel that is your real dream project 389 00:22:45,520 --> 00:22:47,040 - that you discontinued. - There is more to it. 390 00:22:47,080 --> 00:22:48,320 Yes! I feel the same way. 391 00:22:48,440 --> 00:22:50,760 So, I will give you Rs. 60 lakhs for 3%. 392 00:22:55,840 --> 00:22:57,280 - The valuation is Rs. 20 crores. - Please go ahead. 393 00:22:57,280 --> 00:22:59,640 - Please go and be back soon. - You have three offers. 394 00:23:03,280 --> 00:23:05,360 - What do you want to do? - You tell me. 395 00:23:05,680 --> 00:23:07,280 Should we accept Aman's deal? 396 00:23:07,920 --> 00:23:10,880 We will mention that your valuation is really low. 397 00:23:10,960 --> 00:23:13,760 This year's projection is Rs. 5 crores. 398 00:23:13,880 --> 00:23:16,760 We will do Rs. 4-Rs. 4.5 crores easily. 399 00:23:16,840 --> 00:23:20,880 Kunal, you are thinking so much. 400 00:23:20,960 --> 00:23:23,480 He's calculating permutations and combinations to figure out 401 00:23:23,560 --> 00:23:24,480 what counteroffer to make. 402 00:23:24,560 --> 00:23:26,480 I rarely make deals, but when I do, 403 00:23:26,560 --> 00:23:28,680 - I am serious about it! - You think about it. 404 00:23:29,640 --> 00:23:32,000 [music playing] 405 00:23:34,640 --> 00:23:36,280 Whoa! Welcome back. 406 00:23:36,400 --> 00:23:38,520 Thank you for all your offers, Sharks. 407 00:23:38,880 --> 00:23:40,480 So, we have a counter. 408 00:23:40,560 --> 00:23:43,480 We would like all the Sharks to come together 409 00:23:43,680 --> 00:23:45,760 for Rs. 60 lakhs at 3%. 410 00:23:53,160 --> 00:23:55,000 - I think it will be good for them. - I am out. 411 00:23:57,440 --> 00:23:59,720 For that deal, I am out. My deal is still on the table. 412 00:24:00,880 --> 00:24:04,240 Regarding your deal, we started with them. 413 00:24:04,320 --> 00:24:07,400 We don't want to change their shareholding. 414 00:24:07,480 --> 00:24:10,080 - Because to an extent, we think it's a little unethical. - Good! 415 00:24:10,200 --> 00:24:11,240 - Correct me if I am wrong. - Well done. 416 00:24:11,280 --> 00:24:12,400 I agree. 417 00:24:13,200 --> 00:24:17,520 But yes, we would like all four Sharks to join us 418 00:24:17,600 --> 00:24:19,280 at Rs. 60 Lakhs for 3%. 419 00:24:19,400 --> 00:24:21,560 Kunal is not ready for that. 420 00:24:22,120 --> 00:24:24,280 - I am sorry. - Your condition is difficult for us. 421 00:24:24,400 --> 00:24:25,520 I understand. 422 00:24:26,040 --> 00:24:28,120 Now, all three of us want to join you. 423 00:24:28,200 --> 00:24:31,480 Ritesh, Namita and I. 424 00:24:31,680 --> 00:24:33,840 Rs. 60 lakhs, but for 4%. 425 00:24:39,600 --> 00:24:40,600 Sir, deal accepted. 426 00:24:50,080 --> 00:24:51,720 - Let me know if you need help with Make in India. - Congratulations! 427 00:24:51,760 --> 00:24:53,120 - Thank you! - You are enthusiastic. 428 00:24:53,160 --> 00:24:55,320 - Cyril, we will give you doctor connects. - All the best. 429 00:24:55,320 --> 00:24:56,720 Thank you! 430 00:24:59,200 --> 00:25:00,720 [camera shutter clicks] 431 00:25:11,160 --> 00:25:14,640 ...we will gain doctor connections, 432 00:25:14,800 --> 00:25:16,600 which we didn't have before. 433 00:25:16,680 --> 00:25:18,880 This will also help us 434 00:25:19,000 --> 00:25:20,720 get doctor validations. 435 00:25:20,800 --> 00:25:22,560 That is very important for us. 436 00:25:24,880 --> 00:25:26,920 [music playing] 437 00:25:30,640 --> 00:25:32,240 Welcome to ACKO Changemakers, 438 00:25:32,320 --> 00:25:34,200 where we really welcome change. 439 00:25:34,320 --> 00:25:37,320 It has been beautifully portrayed here 440 00:25:37,400 --> 00:25:39,920 behind me on this changemakers wall. 441 00:25:40,120 --> 00:25:42,760 With the perfect mix of traditional and modern mix, 442 00:25:42,840 --> 00:25:46,880 we promote inclusivity, gender equality and sustainability. 443 00:25:47,080 --> 00:25:49,720 And today's changemakers are Nimish and Cyril. 444 00:25:49,800 --> 00:25:51,400 A warm welcome to you. 445 00:25:54,880 --> 00:25:56,840 ...that you can't be in the business of wealth 446 00:25:56,920 --> 00:25:58,680 and try to help a nation. 447 00:25:58,760 --> 00:26:00,960 - And he proved the entire nation wrong. - Hmm! 448 00:26:01,040 --> 00:26:04,800 And you are exactly doing that. You are not only empowering people 449 00:26:04,880 --> 00:26:07,160 but you are building wealth. You have a business 450 00:26:07,240 --> 00:26:09,440 in welfare. So, congratulations on that. 451 00:26:09,520 --> 00:26:11,440 - You are bringing a change. - Thank you so much. 452 00:26:11,440 --> 00:26:13,400 - I have a question related to that. - Yes. 453 00:26:13,640 --> 00:26:16,600 If we have to empower people with special needs 454 00:26:16,680 --> 00:26:20,000 in our own way, what can we do? 455 00:26:20,200 --> 00:26:23,560 We should not sympathise with them, we should empathise with them. 456 00:26:23,680 --> 00:26:24,480 Nicely said. Yeah! 457 00:26:24,560 --> 00:26:27,840 They are not different. They are just like us. 458 00:26:27,920 --> 00:26:30,600 So, if I show you the products... 459 00:26:30,720 --> 00:26:32,400 You saw Anshul. 460 00:26:32,480 --> 00:26:36,080 Anshul does deadlifts, and none of us here, 461 00:26:36,160 --> 00:26:38,680 - including you and me, would be able to do. - Yeah! 462 00:26:38,800 --> 00:26:43,360 We want to provide them with a means to reach their full potential. 463 00:26:43,440 --> 00:26:45,480 That is our main motive. 464 00:26:45,600 --> 00:26:47,800 And thank you for doing that. You're bringing a change 465 00:26:47,880 --> 00:26:51,160 also to the social entrepreneur ecosystem. 466 00:26:51,400 --> 00:26:53,360 So, thank you for bringing this change. 467 00:26:53,440 --> 00:26:57,240 Similarly, ACKO, with their revolutionary offering, 468 00:26:57,320 --> 00:27:00,200 is transforming the insurance landscape. 469 00:27:00,280 --> 00:27:02,920 Don't delay and take advantage of ACKO's health insurance benefits, 470 00:27:03,000 --> 00:27:05,160 such as 100% bill payments 471 00:27:05,280 --> 00:27:07,640 and zero waiting period. 472 00:27:07,720 --> 00:27:10,280 The sooner you get insurance, 473 00:27:10,360 --> 00:27:11,920 the lower your premium will be, 474 00:27:12,120 --> 00:27:14,120 while your health cover will be at its maximum. 475 00:27:14,400 --> 00:27:16,840 And because I loved what you did in the tank 476 00:27:17,000 --> 00:27:19,360 and it was one of the best pitches. 477 00:27:19,440 --> 00:27:22,400 There was a fight for a piece of this business. 478 00:27:22,480 --> 00:27:25,160 We have a special memorabilia for you. 479 00:27:26,840 --> 00:27:29,160 This one is for the books for sure. 480 00:27:29,560 --> 00:27:30,840 - Thank you! - Thank you! 481 00:27:31,160 --> 00:27:32,720 [camera shutter clicks] 482 00:27:32,880 --> 00:27:35,800 'Shark Tank India, co-presented by ACKO Insurance, 483 00:27:35,880 --> 00:27:37,960 'PokerBaazi and Swiggy Instamart.' 484 00:27:38,040 --> 00:27:40,640 'Co-powered by Adani, and Jaquar Bath and Light.' 485 00:27:40,800 --> 00:27:43,760 'And partners, Rayzon Solar, ICICI Direct,' 486 00:27:43,880 --> 00:27:45,760 'Lenskart and Sofy.' 487 00:27:47,280 --> 00:27:49,240 [theme music playing] 488 00:28:13,840 --> 00:28:16,040 You must have met a child 489 00:28:16,160 --> 00:28:18,480 who drew on everything. 490 00:28:18,720 --> 00:28:22,200 The one who always had crayons in their pocket. 491 00:28:22,440 --> 00:28:25,600 Whether it was the table, floor, or wall, it became their canvas. 492 00:28:25,800 --> 00:28:27,720 Well, I used to be that kid. 493 00:28:27,800 --> 00:28:30,960 When other children were collecting dolls in their childhood, 494 00:28:31,040 --> 00:28:33,680 - I used to collect doll shoes. - Wow! 495 00:28:33,800 --> 00:28:37,600 In tenth grade, I decided that I wanted to build a brand 496 00:28:37,840 --> 00:28:40,600 and name it Kanvas with a 'K', 497 00:28:40,720 --> 00:28:43,040 because the world is Komal's canvas. 498 00:28:43,160 --> 00:28:44,240 Oh, sweet! 499 00:28:44,320 --> 00:28:46,560 What next? I combined 500 00:28:46,640 --> 00:28:49,000 my passion for art and footwear 501 00:28:49,200 --> 00:28:51,040 and fulfilled my childhood dream. 502 00:28:51,160 --> 00:28:54,040 And that's how I present to you my brand, Kanvas. 503 00:28:56,760 --> 00:28:58,120 A footwear brand 504 00:28:58,240 --> 00:29:00,360 that represents various art forms, 505 00:29:00,440 --> 00:29:03,960 prints, and paintings through its shoes. 506 00:29:15,160 --> 00:29:17,320 ...and create a social impact. 507 00:29:17,400 --> 00:29:22,520 We sell our shoes through online and offline platforms globally. 508 00:29:23,960 --> 00:29:25,600 Our goal is simple. 509 00:29:25,720 --> 00:29:27,120 To make unique shoes 510 00:29:27,240 --> 00:29:30,560 and celebrate Indian art in daily life. 511 00:29:30,680 --> 00:29:34,120 Sharks, today the world's eye is on India. 512 00:29:34,200 --> 00:29:39,080 And I want to take my Indian art-inspired footwear brand global. 513 00:29:39,200 --> 00:29:43,520 Sharks, my ask is Rs. 60 lakhs for 6%. 514 00:29:47,680 --> 00:29:48,920 [laughing] 515 00:29:49,040 --> 00:29:51,120 Komal, welcome to Shark Tank. 516 00:29:51,200 --> 00:29:53,080 - Thank you so much. - I would like to say that 517 00:29:53,200 --> 00:29:54,760 I love what you're wearing. 518 00:29:54,920 --> 00:29:58,920 - Thank you! - The high slit with those printed shoes. 519 00:29:59,000 --> 00:30:01,280 The way you walked in. 520 00:30:01,440 --> 00:30:02,840 It is a pleasure meeting you. 521 00:30:02,920 --> 00:30:05,160 - Thank you so much. - And you look gorgeous. 522 00:30:05,240 --> 00:30:08,000 Let's start with where this started from. 523 00:30:08,080 --> 00:30:11,520 Where did you get the idea of bringing art onto shoes? 524 00:30:12,080 --> 00:30:13,800 I am a fashion designing graduate. 525 00:30:13,880 --> 00:30:15,520 And my specialisation is textile. 526 00:30:15,640 --> 00:30:18,680 I completed my Fashion Designing 527 00:30:21,120 --> 00:30:24,360 So, our final year project of our third year 528 00:30:24,440 --> 00:30:26,200 is called Craft Documentation. 529 00:30:26,280 --> 00:30:28,320 So, we went to this village called Yeola. 530 00:30:28,400 --> 00:30:31,320 Prior to this, I didn't have much knowledge about art, 531 00:30:31,400 --> 00:30:34,200 to be very honest. Because in schools, 532 00:30:34,280 --> 00:30:37,240 we are taught more about international art 533 00:30:37,400 --> 00:30:38,640 - rather than Indian art. - Correct. 534 00:30:38,640 --> 00:30:41,400 Through this project, I realised 535 00:30:41,480 --> 00:30:45,200 that artisans don't even earn a basic livelihood 536 00:30:45,280 --> 00:30:47,320 despite doing such fabulous work. 537 00:30:47,400 --> 00:30:50,400 So, that's how the idea came. And I always loved shoes. 538 00:30:50,480 --> 00:30:51,920 How many shoes do you own? 539 00:30:52,000 --> 00:30:53,280 Right now, I have 46. 540 00:30:53,360 --> 00:30:56,040 - But there was a time when I had a lot. - That's it? 541 00:30:56,120 --> 00:30:58,800 - Yes! - How much was your highest? 542 00:30:58,920 --> 00:31:00,960 - I've touched 97. I did not cross that. - Oh my God! 543 00:31:01,000 --> 00:31:02,800 - Well done! - Amazing! 544 00:31:02,880 --> 00:31:04,520 - So, it's truly your passion. - Yes. 545 00:31:04,640 --> 00:31:06,080 Did you bring shoes for us? 546 00:31:06,160 --> 00:31:08,520 - If we see that, we might get a better idea. - Of course. 547 00:31:08,640 --> 00:31:09,840 Yes! 548 00:31:11,480 --> 00:31:12,880 I am so glad you asked. 549 00:31:12,960 --> 00:31:14,440 Otherwise, I would've forgotten. 550 00:31:14,560 --> 00:31:16,920 - The first one is for you, Aman. - Thank you! 551 00:31:17,400 --> 00:31:18,280 Kunal sir. 552 00:31:18,360 --> 00:31:21,240 - Thank you! - We never forget receiving a bribe, Komal. 553 00:31:22,640 --> 00:31:23,640 I am Gujarati. 554 00:31:23,680 --> 00:31:24,880 Yes! There you go! 555 00:31:27,160 --> 00:31:28,280 Thank you! 556 00:31:30,400 --> 00:31:31,440 Oh, this is good. 557 00:31:31,520 --> 00:31:33,600 - Very pretty work on mine. - Thank you! 558 00:31:33,680 --> 00:31:36,880 So, this one is from my latest collection. It's called Bhil Art. 559 00:31:36,960 --> 00:31:39,720 People don't know Bhil Art. It comes from a small tribe 560 00:31:39,800 --> 00:31:42,680 that operates between Rajasthan and Madhya Pradesh. 561 00:31:42,760 --> 00:31:46,720 Kunal sir and Ritesh sir, your shoes 562 00:31:46,840 --> 00:31:50,560 are inspired by the wall art in Jaipur, 563 00:31:50,720 --> 00:31:52,640 - especially those seen... - City Palace. 564 00:31:52,720 --> 00:31:54,400 At the City Palace. 565 00:31:55,240 --> 00:31:57,120 Komal, tell us about comfort. 566 00:31:57,200 --> 00:31:59,400 Because one of the most important things 567 00:31:59,520 --> 00:32:02,240 when it comes to shoes is design and fashion, 568 00:32:02,440 --> 00:32:04,200 but comfort comes above all. 569 00:32:04,280 --> 00:32:06,280 - I think they are pretty comfortable. - Thank you. 570 00:32:06,320 --> 00:32:08,520 - No, no. They are. - Do you manufacture the shoe or paint it? 571 00:32:08,560 --> 00:32:09,960 We manufacture the full shoe. 572 00:32:10,080 --> 00:32:12,880 - In-house manufacturing. - I am asking because they are comfortable. 573 00:32:13,000 --> 00:32:15,560 So, I want the reassurance about how comfortable it is on scale. 574 00:32:15,640 --> 00:32:19,400 Our shoes weren't so comfortable in the year 2016. 575 00:32:20,200 --> 00:32:22,440 Over a period of time, 576 00:32:22,520 --> 00:32:25,640 we changed things gradually. For example, the heels. 577 00:32:25,760 --> 00:32:28,840 We changed the insole. Then, we changed the fit. 578 00:32:28,960 --> 00:32:31,120 I try all the samples personally first. 579 00:32:31,240 --> 00:32:33,680 Tell me about the material. That's a big part of comfort. 580 00:32:33,760 --> 00:32:36,400 There are various materials that we use. 581 00:32:36,480 --> 00:32:38,720 We use canvas, cotton... 582 00:32:50,920 --> 00:32:55,200 The print won't come off. But the sole's durability will decrease. 583 00:32:56,400 --> 00:32:59,720 - Two years ago, a brand called The Quirky Naari was here. - Yes. 584 00:32:59,840 --> 00:33:01,560 That brand does similar work, right? 585 00:33:01,800 --> 00:33:06,120 Their focus was on Gen Z. 586 00:33:06,560 --> 00:33:08,960 Our purpose is different. We have skilled artisans. 587 00:33:09,080 --> 00:33:11,120 - Okay. - And we introduce new article every season. 588 00:33:11,120 --> 00:33:14,640 Like, we have 300+ SKUs live right now. 589 00:33:15,360 --> 00:33:17,920 Do people wear this to work or just events? 590 00:33:18,000 --> 00:33:20,600 So, this is our best seller 591 00:33:20,680 --> 00:33:22,800 for reception and special occasions. 592 00:33:22,880 --> 00:33:25,160 - So, this is occasion wear. - Yes, it is. 593 00:33:25,240 --> 00:33:29,000 But if you check the first segment, the blue brogues over there 594 00:33:29,080 --> 00:33:31,000 can also be worn formally. 595 00:33:31,160 --> 00:33:33,720 And what is the longevity? 596 00:33:33,800 --> 00:33:37,680 Sir, the menswear shoes can last up to 4 to 5 years. 597 00:33:38,240 --> 00:33:42,200 The customer thinks about the life after checking the price. 598 00:33:42,520 --> 00:33:45,600 - Yes. - So, what's the price of these products? 599 00:33:46,320 --> 00:33:48,960 Our range starts from Rs 1600. 600 00:33:49,080 --> 00:33:50,640 - Tell us the price of these shoes. - Okay. 601 00:33:50,680 --> 00:33:52,400 Sir, this one is priced at Rs 4200. 602 00:33:53,800 --> 00:33:57,080 Kunal sir, the one you have is priced at Rs 4600. 603 00:33:57,600 --> 00:34:00,520 Namita ma'am's shoe is for Rs 3800. 604 00:34:00,600 --> 00:34:03,400 Anupam sir's shoe is for Rs 4000. 605 00:34:03,520 --> 00:34:06,280 And his shoe is for Rs 4600. 606 00:34:06,360 --> 00:34:07,680 So, Rs 4000 is the average price. 607 00:34:07,760 --> 00:34:10,160 The menswear range is around Rs 4000. 608 00:34:11,000 --> 00:34:12,720 - What is your cheapest shoe? - Rs 1600 one. 609 00:34:12,840 --> 00:34:14,320 Ballerinas. 610 00:34:14,400 --> 00:34:16,400 - They are for Rs 1600. - Yes. 611 00:34:16,720 --> 00:34:19,200 - You sell these for Rs 1600. Average. - Yes. 612 00:34:19,280 --> 00:34:21,760 Can you tell me about the costs involved in making these shoes? 613 00:34:22,240 --> 00:34:25,480 Sir, first of all, it is 15% average GST. 614 00:34:25,560 --> 00:34:27,960 - Let's keep that out. - Okay. 615 00:34:28,040 --> 00:34:30,720 26% is the making cost. 616 00:34:31,440 --> 00:34:33,440 22% is the commission. 617 00:34:33,520 --> 00:34:36,800 Packaging cost is 3 rupees. 618 00:34:36,960 --> 00:34:38,880 And the shipping cost is 2 rupees. 619 00:34:38,960 --> 00:34:42,000 Not rupees! Sorry! Everything is in percent. I am so sorry! 620 00:34:42,960 --> 00:34:48,160 Apart from that, 4% is for salaries and other expenses. 621 00:34:48,240 --> 00:34:51,120 It means your margin is... Wow! It's quite high. 622 00:34:51,680 --> 00:34:53,760 - 15% is our net margin. - Almost... 623 00:34:53,880 --> 00:34:55,600 - You've missed something. - Yes. 624 00:34:55,760 --> 00:34:56,880 I have missed something. 625 00:34:56,960 --> 00:34:58,360 Is it marketing? Have you missed that? 626 00:34:58,400 --> 00:34:59,120 Marketing! Yes! 627 00:34:59,200 --> 00:35:01,360 - 13% is marketing. - 13%. There you go. 628 00:35:02,200 --> 00:35:05,680 We haven't done marketing in full swing yet. 629 00:35:05,760 --> 00:35:08,680 We started pushing it two years ago. 630 00:35:08,760 --> 00:35:11,520 Before that, our maximum sales were organic. 631 00:35:11,600 --> 00:35:13,520 On which platform do you get maximum sales? 632 00:35:13,600 --> 00:35:16,680 Before 2019, it was on marketplaces. 633 00:35:16,800 --> 00:35:20,160 But we created a proper website after 2019. 634 00:35:20,240 --> 00:35:24,800 After that, we reported a bounce from 23% to 46% on our website. 635 00:35:28,520 --> 00:35:30,200 - Where is it? - Kandivali West. 636 00:35:30,280 --> 00:35:31,320 And how much is the sale there? 637 00:35:31,320 --> 00:35:32,520 It is only 3% or 4%. 638 00:35:39,040 --> 00:35:41,600 - Nice. - Nice. Very sweet and different. 639 00:35:41,720 --> 00:35:43,040 Wow! Very nice! 640 00:35:43,160 --> 00:35:45,040 So, we tried to... There's a story behind this. 641 00:35:45,160 --> 00:35:46,000 Have you designed it? 642 00:35:46,080 --> 00:35:48,480 - I have designed the store. - Well done. 643 00:35:48,600 --> 00:35:51,280 But this was my dad's garage. 644 00:35:51,360 --> 00:35:53,920 As in to park vehicles or a workshop? 645 00:35:54,000 --> 00:35:55,720 - No, workshop. Yes. - I see. Got it. 646 00:35:55,800 --> 00:35:57,840 - Like buying and selling of old cars. - Got it. 647 00:35:59,040 --> 00:36:02,160 These white trunks are my dad's toolboxes. 648 00:36:02,280 --> 00:36:03,560 And you can see the tyres, right? 649 00:36:03,600 --> 00:36:05,440 - Oh, wow! - Nice! 650 00:36:05,600 --> 00:36:08,680 - And those are plumbing pipes. - That's nice! 651 00:36:08,760 --> 00:36:11,120 Do you know what? The biggest start-ups in the world... 652 00:36:11,560 --> 00:36:13,640 Be it Apple or Berry Companies. 653 00:36:13,760 --> 00:36:15,440 - They actually started from a garage. - Right. 654 00:36:15,480 --> 00:36:18,760 - Apple, boAt... Such companies have started from garage. - Right? 655 00:36:18,880 --> 00:36:20,560 BoAt started at a bar, if I remember. 656 00:36:20,640 --> 00:36:21,840 [laughing] 657 00:36:21,920 --> 00:36:23,200 But it's the same thing. 658 00:36:23,280 --> 00:36:25,920 I must say. It is rustic as well as classic. 659 00:36:26,000 --> 00:36:26,880 - Yes. It's very good. - Very classy. 660 00:36:27,000 --> 00:36:28,600 Komal, I have a question. 661 00:36:28,680 --> 00:36:30,760 You have been using the word 'we' from the beginning. 662 00:36:31,000 --> 00:36:34,720 It would have made sense if you were from UP. Because people 663 00:36:34,880 --> 00:36:36,880 from north use that word to address themselves individually. 664 00:36:36,920 --> 00:36:39,600 - Yes. - But you are from Mumbai. So, do you have a partner? 665 00:36:39,720 --> 00:36:42,760 No. It's just me. But I say 'we' 666 00:36:42,840 --> 00:36:45,640 because I appreciate my team, my parents, 667 00:36:45,720 --> 00:36:48,400 and my husband a lot. 668 00:36:48,480 --> 00:36:51,280 - Had they not taught me things... - How nice! 669 00:36:51,680 --> 00:36:54,480 At every step, I wouldn't have made it here. 670 00:36:54,560 --> 00:36:58,080 Komal, that's a nice thought. Even I say 'we' 671 00:36:58,280 --> 00:37:00,280 - because there are many people who support us. - Correct. 672 00:37:00,320 --> 00:37:02,880 - And it shows your upbringing. - Yes. 673 00:37:03,000 --> 00:37:05,600 Komal, when I look at these shoes, 674 00:37:05,720 --> 00:37:08,920 I think I'll buy it once. 675 00:37:10,160 --> 00:37:14,000 But then, all the designs are quite similar in terms of sensibilities. 676 00:37:14,080 --> 00:37:15,960 So, will I buy it a second time? 677 00:37:17,240 --> 00:37:21,240 So, our customer retention year-on-year is 23%. 678 00:37:21,520 --> 00:37:23,120 I understand that you won't buy it again. 679 00:37:23,200 --> 00:37:25,720 But we will introduce something new, which you will have to buy. 680 00:37:25,720 --> 00:37:27,880 Like what? Give me an example. 681 00:37:27,960 --> 00:37:29,760 - Come on. - So, you bought a pair of heels. 682 00:37:29,840 --> 00:37:31,600 - Correct. - This is open on the back. 683 00:37:31,720 --> 00:37:33,680 I will give you pumps which is closed on the back. 684 00:37:33,800 --> 00:37:36,600 But why would I buy four same shoes of the same print and style? 685 00:37:36,720 --> 00:37:39,200 If you look closely, the prints are different. 686 00:37:39,280 --> 00:37:40,800 There are variations, even in colours. 687 00:37:40,920 --> 00:37:44,840 Komal, I agree with Namita, which I generally don't. 688 00:37:45,040 --> 00:37:48,560 I can buy these once because of the novelty. 689 00:37:48,640 --> 00:37:51,600 But this novelty will soon become your problem. 690 00:37:53,000 --> 00:37:54,640 Sir, Indian art... 691 00:37:54,720 --> 00:37:58,440 Mostly, our best-sellers are the colourful shoes. 692 00:38:02,120 --> 00:38:03,680 ...which is tan and white. 693 00:38:03,760 --> 00:38:05,320 It looks very different from the rest. 694 00:38:05,400 --> 00:38:08,720 You think all of them are similar because we haven't 695 00:38:08,800 --> 00:38:11,640 segregated each art. We have displayed them together. 696 00:38:11,680 --> 00:38:13,720 If I show you the articles one at a time, 697 00:38:13,760 --> 00:38:16,320 you'll understand their differences. 698 00:38:17,720 --> 00:38:20,640 This art form... Adidas or other big players... 699 00:38:20,720 --> 00:38:24,120 Won't they be able to adapt this? Have you gained expertise 700 00:38:24,240 --> 00:38:26,600 in all these years? 701 00:38:28,080 --> 00:38:30,480 Sir, to fall in love with art 702 00:38:30,560 --> 00:38:33,600 and make it your profession, you have to be emotional. 703 00:38:34,560 --> 00:38:38,960 - But when you grow up, you choose money over emotions. - Well said. 704 00:38:39,080 --> 00:38:40,080 And when that happens, 705 00:38:40,160 --> 00:38:44,440 - the authenticity of the business is left behind. - Ownership! 706 00:38:45,200 --> 00:38:46,480 Komal, tell me one thing. 707 00:38:46,600 --> 00:38:49,200 Purpose, passion or profit? 708 00:38:49,280 --> 00:38:50,280 Purpose. 709 00:38:50,720 --> 00:38:51,760 Above the other two? 710 00:38:51,840 --> 00:38:53,640 Above the others. Money will follow. 711 00:38:53,840 --> 00:38:56,440 - Well... - Your purpose always helps you earn profit. 712 00:38:56,520 --> 00:38:58,400 - Exactly. - Tell us more about it. 713 00:38:58,480 --> 00:39:00,720 - How has your purpose impacted your profit? - Let's start with numbers. 714 00:39:00,760 --> 00:39:03,120 - I will start from 2019. - Okay. 715 00:39:03,320 --> 00:39:06,160 In 2019, we made sales of Rs 46 lakhs. 716 00:39:06,680 --> 00:39:07,480 Okay. 717 00:39:07,600 --> 00:39:11,880 And during the period of Covid, we made sales of Rs 28 lakhs. 718 00:39:12,520 --> 00:39:15,400 After that, we made sales of Rs 67 lakhs. 719 00:39:15,760 --> 00:39:17,360 Then, Rs 69 lakhs. 720 00:39:17,440 --> 00:39:20,000 And the last year, we made sales of Rs 77 lakhs. 721 00:39:20,120 --> 00:39:21,880 What about the first six months of this year? 722 00:39:22,000 --> 00:39:24,520 We have made sales of Rs 27 lakhs so far. 723 00:39:24,640 --> 00:39:26,160 And what is your target for this year? 724 00:39:26,240 --> 00:39:29,040 - We will make a sale of around Rs 77 lakhs this year, too. - Right. 725 00:39:31,120 --> 00:39:32,680 But we have learnt a lot. 726 00:39:32,760 --> 00:39:35,160 Before this, I used to handle marketing. 727 00:39:35,240 --> 00:39:37,320 But then, that didn't work for us. We had a drop, 728 00:39:37,400 --> 00:39:39,520 which I absolutely agree and understand. 729 00:39:39,600 --> 00:39:41,040 We have hired a new person. 730 00:39:41,120 --> 00:39:44,560 Now, by September, compared to the last year, 731 00:39:44,680 --> 00:39:48,760 we reported a hike of Rs 1.5 lakhs. 732 00:39:49,360 --> 00:39:51,840 You have had flat sales for the past three years. 733 00:39:51,920 --> 00:39:55,360 Right? From 67 lakhs to 77 lakhs is no real growth. 734 00:39:55,960 --> 00:39:57,400 With four years of flat revenue, 735 00:39:57,480 --> 00:40:00,600 what will you do in the next three years to achieve tenfold revenue? 736 00:40:01,800 --> 00:40:05,320 We have only imagined it as a lifestyle brand. 737 00:40:05,400 --> 00:40:06,400 Now, we are making shoes. 738 00:40:06,440 --> 00:40:09,880 But I have thought of making bags and scarves, too. 739 00:40:16,840 --> 00:40:20,400 That's why we haven't mentioned the word footwear anywhere. 740 00:40:20,520 --> 00:40:23,200 - Even on the website. It talks about Indian art. - Good point. 741 00:40:23,360 --> 00:40:25,080 And taking art forward. 742 00:40:26,120 --> 00:40:27,640 - Can I say something? - Yes, sir. 743 00:40:27,720 --> 00:40:30,600 I think when I asked you to choose from purpose, passion and profit, 744 00:40:31,040 --> 00:40:32,800 you made the wrong choice. 745 00:40:33,320 --> 00:40:36,120 I thought you wanted me to choose profit. 746 00:40:36,200 --> 00:40:38,240 - No... - But that would have been very unfair 747 00:40:38,320 --> 00:40:40,960 - to what I believe in. - No. I want you to be authentic. 748 00:40:41,040 --> 00:40:43,560 So, I am glad you said purpose. Because that means you're authentic. 749 00:40:43,560 --> 00:40:46,280 But I believe, you don't have to choose. 750 00:40:47,000 --> 00:40:51,000 - You can follow purpose, passion and profit simultaneously. - Okay. 751 00:40:51,200 --> 00:40:54,680 The passion you have for Indian art, 752 00:40:54,920 --> 00:40:57,560 maybe it is a sign that you should embrace the art, 753 00:40:57,680 --> 00:41:00,480 not the shoes. Right? 754 00:41:00,600 --> 00:41:05,000 I think your passion has made you technical. 755 00:41:05,280 --> 00:41:08,720 And instead of being user-led, you are technically-led. 756 00:41:08,800 --> 00:41:11,640 You can't explain all this to every buyer. 757 00:41:11,720 --> 00:41:13,440 [tense music] 758 00:41:13,560 --> 00:41:14,720 So, it becomes very hard. 759 00:41:14,800 --> 00:41:17,240 The brand has to tell its story with one look. 760 00:41:17,600 --> 00:41:20,200 - Not with someone sitting there to explain. - Absolutely. 761 00:41:20,280 --> 00:41:22,280 So, considering your numbers 762 00:41:22,400 --> 00:41:25,800 and your past journey, 763 00:41:25,960 --> 00:41:27,760 I feel you have 764 00:41:28,440 --> 00:41:30,400 a niche market right now. 765 00:41:30,480 --> 00:41:33,880 And I don't think you should take on an investor at this point. 766 00:41:34,240 --> 00:41:36,240 You should use your art 767 00:41:36,320 --> 00:41:39,000 to make a lifestyle brand, 768 00:41:39,080 --> 00:41:40,560 not just to sell shoes. 769 00:41:40,720 --> 00:41:44,160 That would be my advice to you. But as it's very small right now, 770 00:41:44,480 --> 00:41:46,360 I am out. Good luck. 771 00:41:47,720 --> 00:41:50,000 Komal, I love your passion. 772 00:41:50,080 --> 00:41:51,880 Your purpose is very clear. 773 00:41:52,000 --> 00:41:54,800 You have a good design sense and quality. 774 00:41:54,960 --> 00:41:57,560 But I see your business facing two challenges. 775 00:41:57,640 --> 00:42:00,600 First, shoes. Hardest lifestyle category. 776 00:42:01,960 --> 00:42:04,920 It has problems with cut sizes. You might know that. 777 00:42:05,040 --> 00:42:07,120 - Yes. - It is the biggest problem. 778 00:42:07,240 --> 00:42:09,280 It has a lot of distressed inventories. 779 00:42:13,400 --> 00:42:14,400 Secondly, I think 780 00:42:14,520 --> 00:42:18,000 your brand needs to establish distinctiveness. 781 00:42:18,160 --> 00:42:21,600 Because the brand compounds over a period of time. 782 00:42:21,680 --> 00:42:25,840 But it will compound only if people remember the brand name. 783 00:42:26,320 --> 00:42:29,280 Otherwise, every time people interact with your brand, 784 00:42:29,400 --> 00:42:33,480 - it will seem like a new introduction. - Okay. 785 00:42:33,880 --> 00:42:35,480 So, maybe you can think about that. 786 00:42:35,560 --> 00:42:37,600 But for these reasons, I am out today. 787 00:42:40,440 --> 00:42:42,880 Komal, I have similar concerns. 788 00:42:42,960 --> 00:42:45,600 You have made flat sales for many years. 789 00:42:45,720 --> 00:42:49,480 This business at the pre-revenue stage. 790 00:42:49,640 --> 00:42:51,760 And today, for those reasons, I am out. 791 00:42:54,240 --> 00:42:57,000 Let me tell you one specific thing, Komal. 792 00:42:57,080 --> 00:43:00,600 You should either go for mass production 793 00:43:00,760 --> 00:43:02,520 of current products, 794 00:43:03,000 --> 00:43:05,800 or increase the prices of your articles. 795 00:43:06,240 --> 00:43:08,080 Make more unique products. 796 00:43:08,160 --> 00:43:12,120 Then, your business will have higher demand than the supply. 797 00:43:12,400 --> 00:43:15,080 If we are good at Rajasthani block printing, 798 00:43:15,160 --> 00:43:16,680 let's take full benefit from it. 799 00:43:16,800 --> 00:43:20,240 Then, let's sell it at a price that you can do a few things and win it. 800 00:43:20,520 --> 00:43:24,080 I think because of the lack of direction, 801 00:43:24,160 --> 00:43:25,880 I am out today. 802 00:43:25,960 --> 00:43:27,920 But I wish you all the very best. 803 00:43:28,960 --> 00:43:31,400 Komal, what do you want from the Sharks mainly? 804 00:43:31,480 --> 00:43:33,480 - Rs 60 lakhs for 6% equity. - Nice! 805 00:43:34,320 --> 00:43:35,440 Killed it! 806 00:43:35,560 --> 00:43:36,600 Don't you want mentorship? 807 00:43:36,680 --> 00:43:37,800 - You killed it there for me. - 100%. 808 00:43:37,800 --> 00:43:40,800 I will trouble you, and you can trouble me. 809 00:43:40,880 --> 00:43:45,120 I work on... I operate better when I am stressed. 810 00:43:45,200 --> 00:43:46,400 - Well done. - It's a good thing. 811 00:43:46,400 --> 00:43:48,680 Although I think it is a solid category... 812 00:43:48,800 --> 00:43:52,640 I think this category... I have around 50 sneakers. 813 00:43:52,840 --> 00:43:54,000 I love this category. 814 00:43:54,080 --> 00:43:57,280 You have great passion. You're amazing as an entrepreneur. 815 00:43:57,640 --> 00:44:00,560 But you still lack clarity. 816 00:44:02,000 --> 00:44:04,160 And then, you said you only wanted money. 817 00:44:04,280 --> 00:44:06,240 I can't give you only money. 818 00:44:06,320 --> 00:44:09,520 I think the entrepreneur should also seek my time and guidance. 819 00:44:09,600 --> 00:44:12,720 Because investing in stock market is a better option now. 820 00:44:13,800 --> 00:44:16,360 Of course, sir. I would... I mean, that was... 821 00:44:16,440 --> 00:44:18,200 - That goes hand in hand. - Yes, yes. 822 00:44:18,280 --> 00:44:20,480 - I didn't say it. - I know. 823 00:44:20,560 --> 00:44:21,560 She didn't mean that. 824 00:44:21,600 --> 00:44:26,240 I agree. But right now, unfortunately, I am not ready. 825 00:44:28,080 --> 00:44:31,080 And... We'll be out. 826 00:44:33,960 --> 00:44:35,360 Thank you so much, guys. 827 00:44:35,440 --> 00:44:37,480 - Wish you all the best. - I hope you enjoy the shoes. 828 00:44:37,480 --> 00:44:38,920 - Yeah, thank you. - Thanks for that. 829 00:44:39,000 --> 00:44:41,840 - Thank you. - Komal, good luck. I once again emphasize 830 00:44:41,960 --> 00:44:44,440 you ace as a designer. 831 00:44:45,480 --> 00:44:46,880 We want you to succeed. Do well. 832 00:44:47,000 --> 00:44:48,960 - Bye, Komal. - Thank you, Sharks. Bye. 833 00:44:49,480 --> 00:44:50,840 God bless you. 834 00:44:51,600 --> 00:44:55,000 I understand they thought scaling was the issue. 835 00:44:55,120 --> 00:44:57,720 And their purpose is different. They are looking 836 00:44:57,800 --> 00:45:00,560 for a brand that can give them good returns. 837 00:45:00,640 --> 00:45:03,920 That's sort of their mindset. But we are artisans. 838 00:45:04,000 --> 00:45:06,960 We think we will eventually get that return. 839 00:45:07,040 --> 00:45:09,240 Maybe it will take some time. So, we need to be patient. 840 00:45:09,960 --> 00:45:11,200 A brand can always become big. 841 00:45:11,840 --> 00:45:14,840 Welcome to the PokerBaazi zone, where you hold the cards. 842 00:45:15,000 --> 00:45:17,200 Firstly, I know there was a lot of stress in the tank. 843 00:45:19,320 --> 00:45:20,320 - Cool? - Absolutely. 844 00:45:46,040 --> 00:45:50,920 These are related to business skills, department and functions. 845 00:45:51,120 --> 00:45:53,840 Right? So, it will be distribution, product, marketing, 846 00:45:53,920 --> 00:45:55,840 HR, finance, and accounting. 847 00:45:55,960 --> 00:45:58,640 So, you pick your five in focus for me, and we'll rank it. 848 00:45:58,800 --> 00:46:00,240 Let's bring in the product. 849 00:46:00,320 --> 00:46:03,280 Then, I would pick marketing. 850 00:46:03,880 --> 00:46:04,640 That's a good one. 851 00:46:04,720 --> 00:46:06,560 After that, distribution. 852 00:46:06,680 --> 00:46:10,000 And then, we'll put business ethics. 853 00:46:10,280 --> 00:46:11,480 And supply chain. 854 00:46:11,560 --> 00:46:14,600 Wow! Supply chain is your high card. 855 00:46:14,920 --> 00:46:18,280 You chose supply chain management as the high card. Why? 856 00:46:18,360 --> 00:46:20,320 First, because, whenever you build a brand, 857 00:46:20,400 --> 00:46:23,800 this is the sequence that you follow. So, supply chain is 858 00:46:23,960 --> 00:46:26,480 the last thing that I look at in my business. 859 00:46:26,560 --> 00:46:29,080 Got it. This strategy is very good. 860 00:47:06,960 --> 00:47:09,840 [gentle music playing] 861 00:47:21,960 --> 00:47:24,600 [gentle music playing] 862 00:47:30,600 --> 00:47:34,560 2 crore shopkeepers in India work tirelessly day and night. 863 00:47:34,680 --> 00:47:38,240 Even after the staff leaves the shop in the evening, 864 00:47:38,320 --> 00:47:41,400 you will find the shopkeeper at the shop. 865 00:47:41,920 --> 00:47:42,720 Ask me why. 866 00:47:42,840 --> 00:47:43,600 - Why? - Why? 867 00:47:43,720 --> 00:47:47,040 Because they still have to do the accounts. 868 00:47:47,280 --> 00:47:49,600 One of my friends, a shopkeeper, Dagdu Seth, 869 00:47:49,680 --> 00:47:52,120 shared this problem with me. 870 00:47:52,280 --> 00:47:55,920 He said, 'Gaurav, whenever I sit at the shop,' 871 00:47:56,040 --> 00:47:58,360 'we earn Rs 15000 or Rs 16000.' 872 00:47:58,440 --> 00:48:02,960 'And when I don't sit at the shop, we warn Rs 12000 or Rs 13000.' 873 00:48:04,320 --> 00:48:07,720 'I know my staff steals money.' 874 00:48:08,640 --> 00:48:11,200 'But I can't set up a system' 875 00:48:11,280 --> 00:48:14,480 'because my staff doesn't know English at all.' 876 00:48:14,600 --> 00:48:17,080 'They can't operate a computer, either.' 877 00:48:17,160 --> 00:48:19,960 That's why we made a billing machine, EZO, 878 00:48:20,120 --> 00:48:22,000 which is smarter than a computer 879 00:48:22,080 --> 00:48:25,160 and easier than a calculator. 880 00:48:26,520 --> 00:48:30,560 EZO billing machine generates a bill with just two clicks. 881 00:48:35,040 --> 00:48:36,640 ...and the bill is ready. 882 00:48:36,720 --> 00:48:38,480 It will have the shop's logo, name, 883 00:48:38,560 --> 00:48:40,520 address, phone number, bill number, date, 884 00:48:40,600 --> 00:48:42,840 and the list of purchased items. 885 00:48:42,920 --> 00:48:45,000 The total amount is also printed in big letters. 886 00:48:45,120 --> 00:48:49,400 You can also check the purchase and sale throughout the day. 887 00:48:53,880 --> 00:48:55,560 And most interestingly, 888 00:48:55,640 --> 00:48:59,800 these shopkeepers belong to 600 non-metro cities of India. 889 00:49:25,920 --> 00:49:27,880 We are from Akola, Maharashtra. 890 00:49:28,040 --> 00:49:31,600 Sharks, our ask is Rs. 50 lakhs and 1 rupee for 0.33 % equity 891 00:49:31,720 --> 00:49:35,800 to turn every retailer in India digital. 892 00:49:37,120 --> 00:49:39,000 We have decided 893 00:49:43,240 --> 00:49:46,400 Rishikesh, Gaurav and Makarand. 894 00:49:46,800 --> 00:49:48,880 Welcome to Shark Tank. 895 00:49:49,040 --> 00:49:51,320 - Thank you. - Are you planning to solve the problem 896 00:49:51,320 --> 00:49:53,040 of every shopkeeper through EZO? 897 00:49:53,360 --> 00:49:54,760 I hope you achieve your goal. 898 00:49:54,880 --> 00:49:56,200 We will talk about your business. 899 00:49:56,240 --> 00:49:59,040 But first, tell us about yourselves. 900 00:49:59,400 --> 00:50:01,480 Gaurav and Makarand are brothers. 901 00:50:01,520 --> 00:50:03,200 They've known each other for 30 years. 902 00:50:03,320 --> 00:50:04,880 No way! Really? 903 00:50:06,280 --> 00:50:09,080 I am Rishikesh. I have known Gaurav since 12th grade. 904 00:50:09,080 --> 00:50:09,880 We were classmates. 905 00:50:10,040 --> 00:50:12,000 I completed my schooling in Akola. 906 00:50:12,080 --> 00:50:14,160 After that, I finished my engineering studies in Nagpur. 907 00:50:14,160 --> 00:50:16,040 Then, I finished my MBA from Mumbai University. 908 00:50:17,440 --> 00:50:18,960 I worked for three years. 909 00:50:19,080 --> 00:50:22,280 That is when Gaurav and Makarand started Legal Docs. 910 00:50:22,360 --> 00:50:24,800 Gaurav and I used to discuss 911 00:50:24,880 --> 00:50:27,600 scaling and growing the business. 912 00:50:27,720 --> 00:50:31,400 I, too, wanted to be an entrepreneur but didn't get the push. 913 00:50:31,600 --> 00:50:34,280 One day, Gaurav came home and picked me up. 914 00:50:34,360 --> 00:50:37,880 My journey of entrepreneurship started with Legal Docs that day. 915 00:50:38,800 --> 00:50:41,600 We scaled Legal Docs for the following three years. 916 00:50:41,840 --> 00:50:45,200 We took it up to a revenue of Rs 12 crores and Rs 1 crore PAT. 917 00:50:45,280 --> 00:50:48,720 In EZO, Gaurav thinks, Makarand makes, and I sell. 918 00:50:48,960 --> 00:50:50,360 What happened to Legal Docs? 919 00:50:50,960 --> 00:50:54,280 Covid acted like a full stop for Legal docs. 920 00:50:54,400 --> 00:50:56,560 Our business was running low. 921 00:50:56,640 --> 00:50:59,320 It should've boomed in COVID. 922 00:50:59,400 --> 00:51:03,000 No, sir. The processes we undertook 923 00:51:03,080 --> 00:51:05,000 while opening a new shop 924 00:51:05,120 --> 00:51:07,400 were preparing its FSAI license and trademarks. 925 00:51:07,560 --> 00:51:10,560 At that time, new businesses weren't coming up. 926 00:51:11,800 --> 00:51:14,960 Do you have a software plus hardware solution or only software? 927 00:51:15,080 --> 00:51:17,320 We provide both software and hardware. 928 00:51:22,480 --> 00:51:24,560 You only have to collaborate with EZO. 929 00:51:24,640 --> 00:51:27,520 Switch on your cell phone, install our machine, 930 00:51:27,640 --> 00:51:30,040 and your billing starts from the first day. 931 00:51:30,120 --> 00:51:31,200 Please demonstrate it. 932 00:51:33,800 --> 00:51:35,880 Suppose Ritesh sir has come to the shop. 933 00:51:39,120 --> 00:51:42,360 After that, he ordered two 'dosas'. So, I will click twice on 'dosa'. 934 00:51:42,440 --> 00:51:43,880 As soon as I save it... 935 00:51:44,520 --> 00:51:46,720 'Rs 210.' 936 00:51:47,080 --> 00:51:48,400 Ritesh sir's bill is ready. 937 00:51:49,320 --> 00:51:51,560 Suppose Anupam sir has visited us. 938 00:51:51,640 --> 00:51:53,760 Anupam sir is our loyal customer. 939 00:51:53,880 --> 00:51:56,840 We've promised a 10 per cent discount 940 00:51:56,920 --> 00:51:58,840 for each visit. 941 00:51:58,920 --> 00:52:02,760 Suppose you ordered 'tawa pulao' and 'masala pav'. 942 00:52:02,840 --> 00:52:04,880 Your total comes up to Rs 200. 943 00:52:05,000 --> 00:52:06,920 'Get a discount on your number.' 944 00:52:07,000 --> 00:52:08,480 As soon as I feed the number... 945 00:52:09,760 --> 00:52:13,240 '10 per cent discount is applied.' 946 00:52:19,320 --> 00:52:20,440 Here's the bill. 947 00:52:22,320 --> 00:52:26,920 Suppose I need to check all the transactions of the day. 948 00:52:27,120 --> 00:52:28,800 This machine tells me 949 00:52:28,880 --> 00:52:31,760 my total income was Rs 9115 throughout the day. 950 00:52:32,080 --> 00:52:35,560 It will tell me how much money I've got in the bank. 951 00:52:35,640 --> 00:52:37,560 I got Rs 1815. 952 00:52:37,640 --> 00:52:40,080 The cash was Rs 6970. 953 00:52:44,520 --> 00:52:46,600 But I didn't understand how it prevents theft. 954 00:52:46,720 --> 00:52:48,240 You told us the problem statement. 955 00:52:49,640 --> 00:52:51,920 How will we save Dagdu Seth's 20 per cent? 956 00:52:52,000 --> 00:52:54,840 Yes, sir. Your question is perfect. I'll explain it. 957 00:52:55,040 --> 00:52:57,720 When I gave you the example, 958 00:52:57,840 --> 00:53:01,840 you gave me money, which I kept in my drawer. 959 00:53:01,920 --> 00:53:04,160 - I didn't give you anything in return. - Correct. 960 00:53:04,240 --> 00:53:06,280 - As there was no bill. - Correct. 961 00:53:06,360 --> 00:53:08,840 What happened now? There is a bill now. 962 00:53:08,960 --> 00:53:11,760 When you get the bill of Rs 180 963 00:53:11,880 --> 00:53:13,440 and give me the money, 964 00:53:13,520 --> 00:53:16,280 the system also records the amount. 965 00:53:16,360 --> 00:53:18,840 The whole day's transactions are recorded here. 966 00:53:18,920 --> 00:53:21,480 Once the bill is ready, its transaction is recorded. 967 00:53:21,560 --> 00:53:23,320 - No! - No! 968 00:53:23,400 --> 00:53:25,240 How is that a solution? 969 00:53:26,440 --> 00:53:28,840 I won't give the bill if I want to nick some money. 970 00:53:28,920 --> 00:53:32,000 In the beginning, they can also click on one 'idli' instead of two. 971 00:53:32,120 --> 00:53:34,240 The price will be checked. 972 00:53:35,240 --> 00:53:36,840 That cannot be a system. 973 00:53:36,920 --> 00:53:40,320 The system is that you've put up boards. 974 00:53:40,640 --> 00:53:42,800 That is a simple technique. 975 00:53:42,880 --> 00:53:46,320 - Correct. - It has been done for years. It's in every American shop. 976 00:53:46,560 --> 00:53:48,320 - No bill, no pay. - Correct. 977 00:53:48,400 --> 00:53:50,000 You don't need that. 978 00:53:50,080 --> 00:53:52,720 Even if you put up the sign 979 00:53:52,840 --> 00:53:54,280 'No bill, no pay,' 980 00:53:54,360 --> 00:53:55,920 even a handmade bill will do it. 981 00:53:57,360 --> 00:54:00,040 The answer is that. The other one is the solution. 982 00:54:00,120 --> 00:54:01,280 That is automation. 983 00:54:01,400 --> 00:54:02,920 So, you're not saving theft. 984 00:54:03,080 --> 00:54:06,600 You are providing automation, which might pretend it. 985 00:54:16,720 --> 00:54:20,720 How are you different from software like 'Khatabook' and 'Dukaan'? 986 00:54:20,800 --> 00:54:24,440 There must be more than 200 software in the market. 987 00:54:24,520 --> 00:54:27,000 - Correct. - They are also solving this problem. We are not alone. 988 00:54:27,040 --> 00:54:29,280 Who is the biggest POS machine maker? 989 00:54:29,720 --> 00:54:32,720 'Petpooja' and 'Vyapaar'. 990 00:54:32,800 --> 00:54:35,480 'Petpooja's' yearly revenue 991 00:54:35,560 --> 00:54:37,680 is around Rs 60 crores. 992 00:54:37,760 --> 00:54:41,080 'Vyapaar' must be around Rs 50 crores. 993 00:54:41,440 --> 00:54:44,480 Are people mainly using it for POS 994 00:54:44,760 --> 00:54:47,080 or to save the nicking of money? 995 00:54:47,880 --> 00:54:50,160 There's no straight answer for it. 996 00:54:50,240 --> 00:54:53,560 First and foremost, a shopkeeper wants to look significant. 997 00:54:53,640 --> 00:54:55,920 - That is a POS requirement. - Correct. 998 00:54:56,040 --> 00:54:59,080 Secondly, I don't want issues after the bill is made. 999 00:54:59,160 --> 00:55:01,840 What if the bill costs Rs 120 and the person decides to give Rs 100? 1000 00:55:01,880 --> 00:55:03,840 Also, 1001 00:55:03,920 --> 00:55:06,720 if the owner is not managing it 1002 00:55:06,800 --> 00:55:09,840 and an employee is, he won't try to nick a lot of money. 1003 00:55:10,040 --> 00:55:12,960 - Holistically, it is a POS system. - Understood! 1004 00:55:13,040 --> 00:55:15,560 Our pitch for our shopkeepers 1005 00:55:15,640 --> 00:55:17,440 works whenever we talk about the nicked money. 1006 00:55:17,640 --> 00:55:19,080 What is your pricing? 1007 00:55:19,160 --> 00:55:21,360 When we sell the product for the first time, 1008 00:55:21,480 --> 00:55:24,240 the MRP of our product is Rs 7001. 1009 00:55:24,320 --> 00:55:27,440 - We sell it for Rs 6,001 after offers. - What do they get? 1010 00:55:27,560 --> 00:55:30,760 They get one printer and software subscription for a year. 1011 00:55:33,920 --> 00:55:35,600 How much margin do you have? 1012 00:55:36,160 --> 00:55:39,160 Sir, we don't get a margin in the first year. 1013 00:55:39,240 --> 00:55:40,640 Is it because of the hardware cost? 1014 00:55:40,720 --> 00:55:42,480 - Yes. - From the second year? 1015 00:55:42,560 --> 00:55:44,720 From the following year, all of it is our margin. 1016 00:55:48,520 --> 00:55:50,720 At what scale has your business reached in the last two years? 1017 00:55:50,760 --> 00:55:52,720 We closed 2022-23 at Rs 4 crores. 1018 00:55:53,080 --> 00:55:55,000 We earned Rs 12 crores in 2023-24. 1019 00:56:07,000 --> 00:56:08,720 20 per cent of it, Rs 6 crores. 1020 00:56:08,840 --> 00:56:11,160 - Is Rs 24 crores software revenue? - Yes. 1021 00:56:11,280 --> 00:56:13,440 Can you tell me your profitability? 1022 00:56:13,520 --> 00:56:16,760 That will clear things up. 1023 00:56:41,560 --> 00:56:44,600 - You told us that you sell the hardware at its cost. - Correct. 1024 00:56:44,840 --> 00:56:49,160 Suppose you spent Rs 6 crores on the hardware. 1025 00:56:49,240 --> 00:56:51,480 Rs 24 crores for software revenue 1026 00:56:51,600 --> 00:56:54,520 is a high margin, almost 80 to 90 per cent. 1027 00:56:54,640 --> 00:56:56,880 Then, you should make a profit of Rs 20 crores this year. 1028 00:56:58,280 --> 00:57:01,360 There might be other costs. But how much is that? 1029 00:57:01,480 --> 00:57:03,280 - Should I tell them the unit economics? - Yes. 1030 00:57:03,280 --> 00:57:06,360 Before telling us that, explain the break up to me. 1031 00:57:06,440 --> 00:57:07,200 How many retailers do you have? 1032 00:57:07,320 --> 00:57:09,880 We have onboarded a total of 1033 00:57:10,000 --> 00:57:12,080 35,000 shopkeepers in the last two years. 1034 00:57:12,200 --> 00:57:15,000 They've paid us Rs 6,000. 1035 00:57:15,600 --> 00:57:20,520 From those 35,000 customers, we got 5,000 in the first year. 1036 00:57:33,680 --> 00:57:35,880 This year's revenue is around Rs 8 crores. 1037 00:57:36,000 --> 00:57:37,360 - It's Rs 9 crores. - 9 crores. 1038 00:57:37,440 --> 00:57:39,080 - Whatever that is. Is it correct? - Yes. 1039 00:57:39,160 --> 00:57:41,600 What about the other revenue? 1040 00:57:41,680 --> 00:57:44,200 You've onboarded 20,000 before. 1041 00:57:44,320 --> 00:57:46,480 - You should get Rs 3,000 from them this year. - Correct. 1042 00:57:46,520 --> 00:57:47,760 Where did that go? 1043 00:57:48,200 --> 00:57:50,480 In last September, 1044 00:57:50,560 --> 00:57:54,080 we onboarded 1100 shopkeepers. 1045 00:57:54,280 --> 00:57:56,840 Out of those, around 670 people 1046 00:57:56,920 --> 00:57:59,480 gave us Rs 3,000 in September. 1047 00:57:59,600 --> 00:58:01,720 That sums up to Rs 20 lakhs. 1048 00:58:01,800 --> 00:58:06,120 We've booked renewal revenue of Rs 20 lakhs in the last month. 1049 00:58:06,360 --> 00:58:07,520 I don't get it. 1050 00:58:07,640 --> 00:58:08,880 Wait a minute. 1051 00:58:08,960 --> 00:58:10,720 Just give me one second. 1052 00:58:11,040 --> 00:58:13,520 Your first year of subscription to the hardware is Rs 6,000. 1053 00:58:13,600 --> 00:58:16,480 - Yes. - What is your cost for that hardware? 1054 00:58:17,320 --> 00:58:19,920 20 per cent, around Rs 800. 1055 00:58:20,240 --> 00:58:22,760 Everything is fishy here. 1056 00:58:37,680 --> 00:58:39,960 - Correct. - How big is your team? 1057 00:58:40,360 --> 00:58:41,560 Our team has 166 people. 1058 00:58:42,040 --> 00:58:46,280 - Wow! - How much salary do you pay? Rs 30 lakhs monthly? 1059 00:58:46,360 --> 00:58:48,520 24 per cent is our salary cost. 1060 00:58:48,640 --> 00:58:49,920 - How much will it be? - Rs 50 lakhs. 1061 00:58:49,960 --> 00:58:51,120 Yes. 1062 00:58:51,200 --> 00:58:55,000 For two months, even if we consider the expense to be Rs 10 crores, 1063 00:58:55,160 --> 00:58:58,360 or Rs 12 crores, including GNA, etc, 1064 00:58:58,480 --> 00:59:01,160 you should still be saving Rs 5 crores to Rs 6 crores. 1065 00:59:02,120 --> 00:59:04,320 You said the machine cost was Rs 6,000. 1066 00:59:04,400 --> 00:59:07,360 Something is wrong. Maybe marketing. I don't know what. 1067 00:59:08,080 --> 00:59:10,280 Initially, you said your machine was worth Rs 6,000. 1068 00:59:10,360 --> 00:59:12,480 That's why you didn't save anything in the first year. 1069 00:59:13,200 --> 00:59:15,760 The MRP is of Rs 7,001. 1070 00:59:15,840 --> 00:59:17,600 We are selling it for Rs 6,001. 1071 00:59:17,680 --> 00:59:20,240 Should I tell you about the unit economics? 1072 00:59:20,320 --> 00:59:21,360 Sure, tell us. 1073 00:59:21,480 --> 00:59:22,840 Tell us. Okay. 1074 00:59:23,000 --> 00:59:24,440 The first is a GST of 18 per cent. 1075 00:59:24,520 --> 00:59:27,320 24 per cent is spent on hardware and delivery. 1076 00:59:27,400 --> 00:59:29,160 Then, 17 per cent is marketing cost. 1077 00:59:29,280 --> 00:59:32,080 After that is 24 per cent of sales and support cost. 1078 00:59:32,200 --> 00:59:34,520 We spend that amount on acquiring customers. 1079 00:59:34,640 --> 00:59:35,920 It means you do cataloguing. 1080 00:59:36,000 --> 00:59:38,360 Cataloguing, sales acquisition 1081 00:59:38,440 --> 00:59:40,920 and customer success and support. 1082 00:59:41,000 --> 00:59:45,360 This means your acquisition cost is 17 per cent plus 24 per cent. 1083 00:59:45,520 --> 00:59:50,760 This means that your marketing and sales costs are 41 per cent. 1084 00:59:51,040 --> 00:59:52,480 Now, I understand your business. 1085 00:59:52,600 --> 00:59:54,760 18 per cent is GST. 1086 00:59:54,840 --> 00:59:57,560 7 per cent is IT Infrastructure cost. 1087 00:59:57,640 --> 00:59:59,440 - That includes our CRM, dialler, etc. - Understood. 1088 00:59:59,440 --> 01:00:02,680 That also includes all the tools for sales acquisition. 1089 01:00:02,760 --> 01:00:05,160 Then comes 18 per cent fixed costs. 1090 01:00:05,320 --> 01:00:07,400 When you do a renewal, 1091 01:00:07,480 --> 01:00:08,760 is there a cost associated with it? 1092 01:00:08,760 --> 01:00:10,280 That cost is five to seven per cent. 1093 01:00:10,360 --> 01:00:12,680 Will it be the same if we verify? 1094 01:00:12,760 --> 01:00:14,240 How much of a discount do you offer during the renewal? 1095 01:00:14,280 --> 01:00:15,840 It's an average of Rs 300 to Rs 400. 1096 01:00:15,920 --> 01:00:18,520 Is this Rs 3,000 for one year or three years? 1097 01:00:18,600 --> 01:00:20,960 - One year. - One year. Got it. 1098 01:00:21,760 --> 01:00:24,520 - I want you to explain two or three things to me. - Sure. 1099 01:00:24,600 --> 01:00:27,040 - You said you couldn't save money. - Yes. 1100 01:00:27,200 --> 01:00:30,360 But you didn't tell me that you're losing 25 per cent. 1101 01:00:30,800 --> 01:00:33,400 If you calculate your numbers, 1102 01:00:33,480 --> 01:00:38,200 - you lost 24 per cent in COGS. - Yes. 1103 01:00:38,400 --> 01:00:41,040 - You lost 18 per cent in GST. - Yes. 1104 01:00:41,120 --> 01:00:45,200 - The remaining 17 per cent plus 24 per cent in acquisition. - Yes. 1105 01:00:45,440 --> 01:00:47,160 How much is left? 14 per cent? 1106 01:00:47,320 --> 01:00:49,000 We spend 7 per cent on IT Infrastructure. 1107 01:00:49,080 --> 01:00:51,480 So, what's left is 7 per cent. 1108 01:00:51,560 --> 01:00:53,440 The other 18 per cent is fixed costs. 1109 01:00:53,560 --> 01:00:56,480 - Okay. Then, you've reached - 15 per cent. 1110 01:00:56,640 --> 01:00:58,400 7 per cent. 1111 01:00:58,480 --> 01:01:00,280 10 per cent. 1112 01:01:00,600 --> 01:01:02,280 - Around -10 per cent? - Yes. 1113 01:01:02,360 --> 01:01:03,240 This number is okay. 1114 01:01:03,320 --> 01:01:07,160 - You claim to lose 10 per cent in the first year. - Yes. 1115 01:01:07,560 --> 01:01:10,200 In how many years do you make up for this loss? 1116 01:01:10,280 --> 01:01:14,440 You break even Rs 600 in 1.5 years. 1117 01:01:14,520 --> 01:01:15,720 Yes. 1118 01:01:15,800 --> 01:01:17,240 When the renewal occurs... 1119 01:01:17,320 --> 01:01:18,840 - If there is a renewal! - Yes. 1120 01:01:19,320 --> 01:01:21,120 What is your renewal rate after two years? 1121 01:01:21,240 --> 01:01:23,040 We've not got the second one yet, sir. 1122 01:01:23,200 --> 01:01:26,120 We had pleaded with the shopkeepers in the first year of our sales 1123 01:01:26,200 --> 01:01:27,640 to get feedback. 1124 01:01:27,720 --> 01:01:28,880 So, did you not get money then? 1125 01:01:28,880 --> 01:01:30,560 No. We used to sell it for Rs 6001 then. 1126 01:01:30,680 --> 01:01:33,760 But we didn't tell them the software will stop working after a year. 1127 01:01:33,840 --> 01:01:34,840 So, their renewal didn't happen. 1128 01:01:34,880 --> 01:01:38,400 No. We didn't get a renewal then. We had to beg for them to buy. 1129 01:01:44,360 --> 01:01:45,760 We do it in the first month. 1130 01:01:45,840 --> 01:01:48,840 - You told us this year has been Rs 10.7 crores. - Yes. 1131 01:01:49,000 --> 01:01:52,920 That is your customer's full-year revenue. Right? 1132 01:01:53,040 --> 01:01:55,040 Yes. But we book it on the first day. 1133 01:01:55,120 --> 01:01:56,760 It is only Rs 3 crores to Rs 4 crores. 1134 01:01:57,880 --> 01:02:00,520 So, that Rs 10.7 crores does not match. 1135 01:02:00,600 --> 01:02:02,520 [tense music playing] 1136 01:02:02,600 --> 01:02:04,400 The correct counting method 1137 01:02:04,520 --> 01:02:08,400 is to be done 1138 01:02:08,480 --> 01:02:11,040 after considering the whole year. 1139 01:02:11,120 --> 01:02:12,160 Correct, sir. 1140 01:02:12,240 --> 01:02:13,600 That is called an accrual account. 1141 01:02:13,640 --> 01:02:16,640 Whichever Chartered Account is handling your books, 1142 01:02:16,720 --> 01:02:21,120 he ideally shouldn't let you open a cash account. 1143 01:02:23,720 --> 01:02:27,000 Cash and accrual accounting are different based on 1144 01:02:27,160 --> 01:02:29,880 when you're booking your sales and expenses. 1145 01:02:30,120 --> 01:02:33,840 In cash accounting, you start booking 1146 01:02:33,920 --> 01:02:37,840 when you get or give actual cash in terms of sales or expenses. 1147 01:02:38,160 --> 01:02:41,440 In accrual accounting, you book your sales and expenses 1148 01:02:41,520 --> 01:02:43,400 when the event occurs, 1149 01:02:43,560 --> 01:02:48,480 regardless of when you got or gave away the cash. 1150 01:02:48,640 --> 01:02:51,960 For example, you're organising a cricket league 1151 01:02:52,040 --> 01:02:54,520 and the event is on 1st February. 1152 01:02:54,640 --> 01:02:58,840 Suppose you got sponsorship income for it in January. 1153 01:02:58,920 --> 01:03:02,360 Based on cash accounting, you will show your income in January. 1154 01:03:02,440 --> 01:03:05,200 But based on accrual accounting, you will show the income 1155 01:03:05,280 --> 01:03:07,920 in the month of the event, which is February. 1156 01:03:08,160 --> 01:03:10,960 Accrual accounting 1157 01:03:11,040 --> 01:03:14,680 accurately shows the business and is always a preferred method. 1158 01:03:15,720 --> 01:03:17,680 That's why you won't touch Rs 30 crores this time. 1159 01:03:23,520 --> 01:03:26,600 He gave you Rs 3000 for the software. 1160 01:03:27,440 --> 01:03:30,080 Even though he paid you Rs 3,000 in cash, based on accrual, 1161 01:03:30,160 --> 01:03:34,120 your revenue for that year was only Rs 1500 because he joined midyear. 1162 01:03:34,200 --> 01:03:37,360 But you're showing your revenue as Rs 3000 and not Rs 1500. 1163 01:03:37,440 --> 01:03:40,640 That's because you're booking it based on cash and not accrual. 1164 01:03:40,720 --> 01:03:44,640 So, for an investor, your number is inflated. 1165 01:03:45,880 --> 01:03:47,720 You told me Rs 30 crores, 1166 01:03:47,800 --> 01:03:49,600 which is not the correct revenue forecast. 1167 01:03:49,680 --> 01:03:53,480 We discussed this part with our accountants, as well. 1168 01:03:53,800 --> 01:03:56,480 We debated on how to do it. 1169 01:03:57,720 --> 01:03:58,920 But there's no debate on this. 1170 01:03:59,000 --> 01:04:02,000 When you're running such a big business, 1171 01:04:02,080 --> 01:04:04,720 - these are the basics. - We didn't know it when we began accounting. 1172 01:04:04,720 --> 01:04:06,960 You're a great player! 1173 01:04:07,080 --> 01:04:08,720 - Integrity! - The numbers you told us... 1174 01:04:08,800 --> 01:04:10,520 This is an integrity issue. 1175 01:04:10,600 --> 01:04:13,000 You're a smart player. 1176 01:04:13,080 --> 01:04:15,160 Please don't say you didn't know it. 1177 01:04:15,240 --> 01:04:16,840 You know everything. 1178 01:04:17,680 --> 01:04:21,120 If you think this is the biggest problem, it's not. 1179 01:04:21,200 --> 01:04:23,920 Because you shouldn't be counting that revenue. 1180 01:04:24,000 --> 01:04:25,480 Yes, it's in the books, 1181 01:04:25,560 --> 01:04:27,280 but there's no margin on that revenue 1182 01:04:27,400 --> 01:04:30,520 because all your expenses are spent on acquisition. 1183 01:04:30,600 --> 01:04:33,000 Your business is just renewal business. 1184 01:04:33,120 --> 01:04:35,280 - Absolutely right. - Your business is only as strong 1185 01:04:35,400 --> 01:04:37,440 as the number of people renewing next year. 1186 01:04:37,560 --> 01:04:41,040 As you said, you somehow manage to sell by pleading and persuading. 1187 01:04:42,000 --> 01:04:44,440 In every city, there's someone sitting there pushing POS, 1188 01:04:44,600 --> 01:04:46,880 trying to get into stores somehow 1189 01:04:46,960 --> 01:04:49,520 because they know that once locked in, the money will come later. 1190 01:04:51,000 --> 01:04:53,240 And that's exactly what you're doing too. 1191 01:04:53,440 --> 01:04:55,440 So, your business is a renewal business. 1192 01:04:56,400 --> 01:04:59,400 Your actual business is worth 20 lakh rupees a month 1193 01:04:59,480 --> 01:05:03,960 as of today, which means you're running a 2.5-crore margin business. 1194 01:05:04,040 --> 01:05:05,520 Revenue business, I'd say. 1195 01:05:06,920 --> 01:05:10,680 So, you're running a 2.5-crore business annually. 1196 01:05:10,760 --> 01:05:13,360 Maybe it will grow, maybe it won't. We don't know that yet. 1197 01:05:13,440 --> 01:05:15,680 If 50 per cent of second-year renewals happen, 1198 01:05:15,760 --> 01:05:17,840 what incentives do you provide? That's unclear to me. 1199 01:05:17,920 --> 01:05:21,160 By the third year, it might drop to just 25 per cent. 1200 01:05:21,240 --> 01:05:23,240 That's also unclear today. 1201 01:05:24,680 --> 01:05:26,440 I just feel 1202 01:05:27,200 --> 01:05:29,360 the company's current financials 1203 01:05:29,480 --> 01:05:33,320 are significantly different from what you presented to us. 1204 01:05:33,720 --> 01:05:35,000 For this reason, I'm out. 1205 01:05:35,080 --> 01:05:36,560 No problem, thank you. 1206 01:05:37,800 --> 01:05:39,720 And 1207 01:05:39,800 --> 01:05:42,600 the 3000 rupees you are trying to collect 1208 01:05:42,760 --> 01:05:44,160 will not be given to you. 1209 01:05:44,240 --> 01:05:46,440 Today, it's EZO, tomorrow, there'll be DEZO 1210 01:05:46,880 --> 01:05:50,520 offering the same product for free for a year. 1211 01:05:50,880 --> 01:05:53,720 When you go to ask for money, they'll simply replace your machine, 1212 01:05:53,840 --> 01:05:55,440 saying, 'Here's the new machine,' 1213 01:05:55,520 --> 01:05:57,040 'start using this one.' 1214 01:05:57,120 --> 01:05:59,600 - 'I've saved 3,000 rupees.' - That's the reality. 1215 01:06:01,120 --> 01:06:04,680 In India, subscription revenue is extremely difficult. 1216 01:06:09,080 --> 01:06:10,400 Like Amazon and Netflix. 1217 01:06:10,480 --> 01:06:13,120 Subscription revenue in India is extremely tough. 1218 01:06:13,600 --> 01:06:16,160 And you are trying to collect 3000 rupees from your client. 1219 01:06:17,520 --> 01:06:19,520 You know how to run a business. 1220 01:06:19,640 --> 01:06:21,520 Use your brain in the right place. 1221 01:06:21,600 --> 01:06:23,040 Don't earn money through messy means. 1222 01:06:23,120 --> 01:06:24,880 Unfortunately, I'm out. 1223 01:06:25,040 --> 01:06:26,040 No problem, thank you. 1224 01:06:26,920 --> 01:06:29,520 Gaurav, Makran, and Rishikesh, 1225 01:06:29,760 --> 01:06:30,920 I'm a numbers person. 1226 01:06:31,000 --> 01:06:34,040 If founders can't explain 1227 01:06:34,640 --> 01:06:36,160 their numbers in a simple way 1228 01:06:36,240 --> 01:06:39,720 in one minute, and they don't like it, 1229 01:06:39,880 --> 01:06:41,240 something feels off. 1230 01:06:41,640 --> 01:06:43,160 Either the numbers are wrong, 1231 01:06:43,240 --> 01:06:46,000 or the founders are utterly confused. 1232 01:06:46,880 --> 01:06:50,640 In your case, it seems to be both. 1233 01:06:51,800 --> 01:06:54,840 There's no confidence in partnering with you. 1234 01:06:54,920 --> 01:06:56,440 And for that reason, I'm out. 1235 01:06:57,840 --> 01:07:00,880 You came here to demonstrate a problem. 1236 01:07:02,240 --> 01:07:03,600 And I got very excited 1237 01:07:03,680 --> 01:07:06,960 because you said you'd prevent fraud. 1238 01:07:07,240 --> 01:07:09,680 If that's the problem you were solving, 1239 01:07:09,840 --> 01:07:13,560 you would've been unique, differentiated, and uncontested. 1240 01:07:13,720 --> 01:07:16,040 But when you say you're in the POS business, 1241 01:07:16,120 --> 01:07:18,200 then you're in a commoditized business. 1242 01:07:18,880 --> 01:07:20,920 So for those reasons, I'm out. 1243 01:07:22,040 --> 01:07:25,080 POS leaders from Akola, you're very resourceful. 1244 01:07:25,160 --> 01:07:29,880 - Your goal was to prevent theft from cash registers. - Correct. 1245 01:07:30,200 --> 01:07:32,600 I feel that might be changing, and that's okay. 1246 01:07:32,680 --> 01:07:35,320 But then you should clearly state that your goal 1247 01:07:35,400 --> 01:07:39,280 is to create the easiest POS device for the unorganised sector, 1248 01:07:39,360 --> 01:07:41,520 for those who don't have any billing systems. 1249 01:07:51,960 --> 01:07:53,400 For that reason, I'm out. 1250 01:07:54,520 --> 01:07:56,240 But I wish you all the very best. 1251 01:07:56,320 --> 01:07:57,960 And do implement accrual accounting. 1252 01:07:58,080 --> 01:07:59,440 Thank you very much. 1253 01:07:59,520 --> 01:08:00,960 - Thank you. - Wish you all the best. 1254 01:08:01,040 --> 01:08:02,720 - It was lovely meeting all of you. - Thank you. 1255 01:08:02,760 --> 01:08:04,600 - Thank you, sir. - Thank you so much, bye. 1256 01:08:06,160 --> 01:08:08,680 I came with the intention 1257 01:08:08,760 --> 01:08:11,320 of understanding the mindset of the Sharks at a primary level. 1258 01:08:11,400 --> 01:08:14,080 And today, I've understood it. 1259 01:08:14,200 --> 01:08:18,960 I'll try to work on this mindset and see how business is perceived 1260 01:08:19,240 --> 01:08:20,320 and move it forward. 1261 01:08:20,400 --> 01:08:23,200 It felt like this is an earth-shattering business. 1262 01:08:23,320 --> 01:08:25,200 - Too good to be true. - Then I realised... 1263 01:08:25,280 --> 01:08:26,280 It's an ethical issue. 1264 01:08:26,360 --> 01:08:29,320 There are ethics when you're not recognising revenue properly. 1265 01:08:29,520 --> 01:08:32,160 - And they're not stupid. They know what they're doing. - He's not. 1266 01:08:32,200 --> 01:08:34,320 Let me tell you a heart-to-heart truth. 1267 01:08:39,960 --> 01:08:42,440 I don't know PAT, B2B, ROI, 1268 01:08:42,560 --> 01:08:45,240 or any of those. These were never in my syllabus. 1269 01:08:45,680 --> 01:08:47,360 Whether Sharks or pitchers, 1270 01:08:47,440 --> 01:08:50,000 it should feel like I know something too. 1271 01:08:50,080 --> 01:08:51,480 I'll have to do some studies. 1272 01:08:51,600 --> 01:08:53,320 I'm thinking of doing some homework. 1273 01:08:53,480 --> 01:08:57,440 I'll do some studies and set up a solid office for that. 1274 01:08:57,680 --> 01:08:59,480 I'll order the supplies from Swiggy Instamart, 1275 01:08:59,520 --> 01:09:00,680 it'll be here in 10 minutes. 1276 01:09:01,040 --> 01:09:02,520 I know what to get. 1277 01:09:02,760 --> 01:09:04,760 First, stationery items. 1278 01:09:05,520 --> 01:09:09,800 Yes! A pen stand. 1279 01:09:10,800 --> 01:09:13,120 Okay! Notebooks. 1280 01:09:14,400 --> 01:09:18,120 I need to revise the old pitches too, so let's get a phone stand. 1281 01:09:18,680 --> 01:09:20,080 Phone stand! 1282 01:09:20,320 --> 01:09:23,400 If I'm hungry, I won't be able to study, so I'll need some munchies. 1283 01:09:23,920 --> 01:09:26,880 I love cookies. Cookies. 1284 01:09:27,360 --> 01:09:30,400 And done! Order placed. 1285 01:09:30,560 --> 01:09:32,000 They'll be delivered in 10 minutes. 1286 01:09:32,120 --> 01:09:34,440 You go ahead and study what you need to. 1287 01:09:34,520 --> 01:09:37,120 Who'll bring the supplies? Swiggy Instamart. Order now. 1288 01:09:44,680 --> 01:09:46,840 Let me tell you about a real deal. 1289 01:09:47,040 --> 01:09:50,280 Go to the Lenskart app or lenskart.com, 1290 01:09:50,360 --> 01:09:53,560 participate in the 'Offer or No Offer' contest, 1291 01:10:05,440 --> 01:10:08,160 [bubbling sound] 1292 01:10:09,040 --> 01:10:13,520 Hello, and welcome to Invest Smart with ICICI Direct. 1293 01:10:13,760 --> 01:10:15,200 I'm your wealth buddy, 1294 01:10:15,360 --> 01:10:20,080 and today we'll discuss some important aspects of investment 1295 01:10:20,280 --> 01:10:24,880 that will help you make informed and confident investment decisions. 1296 01:10:25,280 --> 01:10:26,720 Let's get started. 1297 01:10:27,080 --> 01:10:28,840 Today, we have Nazim Nazir 1298 01:10:28,920 --> 01:10:30,920 from the brand Al-Nahl Honey. 1299 01:10:31,000 --> 01:10:32,200 When you invest, 1300 01:10:32,280 --> 01:10:35,200 what are your strategic expectations? 1301 01:10:35,360 --> 01:10:38,080 Sir, first, whenever I invest, 1302 01:10:38,160 --> 01:10:39,760 I do my research online, 1303 01:10:39,840 --> 01:10:42,840 then consult with my family, 1304 01:10:42,920 --> 01:10:46,920 and finally, the decision rests with me. 1305 01:10:47,080 --> 01:10:50,560 Very good. Here we have a stock 1306 01:10:57,320 --> 01:10:58,120 Absolutely, sir. 1307 01:10:58,200 --> 01:10:59,880 But there's a challenge. 1308 01:11:05,000 --> 01:11:06,760 So, in such a situation, what would you do? 1309 01:11:06,880 --> 01:11:11,520 In that case, I'd first call my friends, 1310 01:11:11,600 --> 01:11:14,000 and then relatives, 1311 01:11:14,120 --> 01:11:17,680 and after that, I'd try to gather the amount from here and there. 1312 01:11:17,800 --> 01:11:19,600 I'll also tell you another option. 1313 01:11:19,680 --> 01:11:23,640 If you want to build personal investments in the stock market, 1314 01:11:23,720 --> 01:11:26,480 you can get a funding boost from MTF. 1315 01:11:26,560 --> 01:11:29,760 Margin Trading Facility by ICICI Direct. 1316 01:11:29,840 --> 01:11:31,800 And it's as simple as that. 1317 01:11:35,440 --> 01:11:38,160 you can still buy 1,00,000 rupees worth of stock. 1318 01:11:38,240 --> 01:11:40,560 And ICICI Direct will pay the remaining amount... 1319 01:11:44,840 --> 01:11:47,240 And if the stock price increases, 1320 01:11:47,320 --> 01:11:51,000 you can book your profit without paying the full amount upfront. 1321 01:11:51,120 --> 01:11:52,680 - Interesting, right? - Absolutely, sir. 1322 01:11:52,800 --> 01:11:55,160 So, use the 3-in-1 account from ICICI 1323 01:12:09,000 --> 01:12:10,240 Welcome to Ask the Shark. 1324 01:12:17,520 --> 01:12:19,280 Please welcome Aman sir. 1325 01:12:19,600 --> 01:12:21,360 - How are you, sir? - And they're fried! 1326 01:12:21,480 --> 01:12:22,680 [laughs] 1327 01:12:22,760 --> 01:12:24,200 Let's get to today's question. 1328 01:12:24,360 --> 01:12:27,840 Today's question comes from 32-year-old Sneha from Varanasi. 1329 01:12:27,960 --> 01:12:29,360 The question is... 1330 01:12:43,800 --> 01:12:45,240 nothing was really being made here. 1331 01:12:45,320 --> 01:12:46,680 There was a time during COVID 1332 01:12:46,760 --> 01:12:49,320 when PPE kits weren't even being made in India. Right? 1333 01:12:49,600 --> 01:12:51,200 And then we started exporting PPE kits. 1334 01:12:51,320 --> 01:12:55,160 Similarly, it was very challenging when we began manufacturing. 1335 01:12:55,240 --> 01:12:57,320 No one knew how to do it. There were no factories. 1336 01:12:57,400 --> 01:13:01,000 So, we learned everything ourselves. 1337 01:13:01,080 --> 01:13:02,880 We understood each process 1338 01:13:03,000 --> 01:13:05,440 and then started making it in India. There were a lot of challenges. 1339 01:13:05,480 --> 01:13:07,640 So, we worked hard 1340 01:13:07,760 --> 01:13:10,160 in creating the supply chain, 1341 01:13:45,280 --> 01:13:48,160 We'll meet in the next Ask the Shark with a new question and a new Shark.