1 00:00:23,400 --> 00:00:25,000 [music playing] 2 00:00:40,920 --> 00:00:42,520 [theme music playing] 3 00:01:05,240 --> 00:01:06,680 [theme music concludes] 4 00:01:06,840 --> 00:01:10,840 - Sharks, India has the most number of youths in the world. - Yes. 5 00:01:11,000 --> 00:01:14,600 And the youth have it in them to make the country a superpower. 6 00:01:15,840 --> 00:01:19,400 For that, the most important thing is for our farmers to make progress. 7 00:01:19,600 --> 00:01:23,240 So, we've come together to start RBD. 8 00:01:33,720 --> 00:01:35,520 We're the founders of RBD. 9 00:01:37,280 --> 00:01:40,440 At RBD, we innovate agricultural machines 10 00:01:40,520 --> 00:01:42,480 designed to save farmers' time and money. 11 00:01:46,440 --> 00:01:48,480 So, we present to you 12 00:01:48,560 --> 00:01:50,600 India's first Power Reaper with a seat. 13 00:01:56,040 --> 00:01:59,040 Sharks, in an hour, this machine reaps 1 acre of farm 14 00:01:59,120 --> 00:02:01,400 in Rs. 100 worth of fuel. 15 00:02:05,400 --> 00:02:08,240 Chaff cutters are mostly used by women 16 00:02:24,560 --> 00:02:27,080 It fulfils the needs of every farmer, field and garden. 17 00:02:27,160 --> 00:02:30,800 It is a one-stop convenient solution for a farmer. 18 00:02:30,880 --> 00:02:33,200 You can buy our machines from online marketplaces 19 00:02:33,280 --> 00:02:36,880 or directly book them from our company's call centre. 20 00:02:40,800 --> 00:02:43,360 and saving both their time and money. 21 00:02:43,480 --> 00:02:46,440 And our ask is Rs. 1 crore for 1% equity. 22 00:02:46,520 --> 00:02:47,840 - Whoa! - Hmm. 23 00:02:48,040 --> 00:02:49,040 Wow. 24 00:03:00,880 --> 00:03:02,800 I started out as a hotelier. 25 00:03:02,880 --> 00:03:04,760 From 2014 to 2016, 26 00:03:04,960 --> 00:03:07,160 I worked in a hotel as a receptionist. 27 00:03:07,240 --> 00:03:09,240 After that, I worked as a sales executive 28 00:03:09,320 --> 00:03:12,200 in the agricultural field. 29 00:03:12,280 --> 00:03:16,200 I continued doing jobs until December 2020. 30 00:03:16,320 --> 00:03:18,320 I was at home for two months during the pandemic. 31 00:03:18,400 --> 00:03:20,680 I was working from home in sales 32 00:03:20,760 --> 00:03:22,560 as I got a chance in agriculture at the time. 33 00:03:22,720 --> 00:03:25,800 The situation at the time was something like this. 34 00:03:25,880 --> 00:03:27,720 I'd get a 30% deduction in my salary. 35 00:03:28,120 --> 00:03:29,440 My whole family depended on me. 36 00:03:29,600 --> 00:03:31,440 I was newly married and had financial issues. 37 00:03:31,560 --> 00:03:34,120 - I hadn't gotten an increment in two years. - Hmm. 38 00:03:34,400 --> 00:03:35,600 Looking at this, 39 00:03:35,680 --> 00:03:39,040 in December 2020, I decided to do something about it. 40 00:03:39,960 --> 00:03:41,840 So, I quit my job 41 00:03:42,200 --> 00:03:43,640 and told my family, 42 00:03:43,720 --> 00:03:45,720 "I won't be able to give you any money for six months." 43 00:03:45,720 --> 00:03:46,720 "I have nothing." 44 00:03:46,840 --> 00:03:50,480 - Our parents provided for us by tailoring. - Very nice. 45 00:03:50,560 --> 00:03:53,200 They said, "Go on, chase your dreams." 46 00:03:53,680 --> 00:03:57,200 "Just remember. No matter what you do, do only good." 47 00:03:57,280 --> 00:03:58,120 Nice. 48 00:03:58,200 --> 00:04:02,760 "Money will come and go. It's a part of life." 49 00:04:03,120 --> 00:04:04,640 RBD is my grandfather's name. 50 00:04:04,800 --> 00:04:06,600 Shri Ram Bilas Darji. 51 00:04:12,880 --> 00:04:16,560 ...we decided that if we ever formed a company, we'd name it RBD. 52 00:04:16,720 --> 00:04:18,720 You didn't tell us about your background, Devendra. 53 00:04:18,960 --> 00:04:20,640 Sir, I worked as an accountant for five years 54 00:04:20,680 --> 00:04:22,560 with a swimming pool manufacturer. 55 00:04:22,800 --> 00:04:24,880 - Was that in your village? - No, Jaipur. 56 00:04:24,960 --> 00:04:26,520 - Jaipur! - Our jobs were in Jaipur. 57 00:04:26,640 --> 00:04:28,600 - Are you siblings? - Yes, real brothers. 58 00:04:28,800 --> 00:04:30,560 - Who is older? - Bhupendra. 59 00:04:30,640 --> 00:04:32,720 Okay. How did you come into this industry? 60 00:04:32,800 --> 00:04:34,320 - You were a hotelier. - Yes. 61 00:04:34,400 --> 00:04:35,880 Then you did sales. 62 00:04:40,040 --> 00:04:41,280 I'd gained the expertise. 63 00:04:41,360 --> 00:04:46,000 - I started as an executive and became a state head. - Where? 64 00:04:46,240 --> 00:04:48,840 In the same industry with competitors, sir. 65 00:04:53,760 --> 00:04:55,920 and also with George Maijo Industries. 66 00:04:56,000 --> 00:04:57,880 Did you do the same thing there? 67 00:04:57,960 --> 00:04:58,840 Yes, I was in sales. 68 00:04:58,920 --> 00:04:59,920 You were in sales. 69 00:05:03,320 --> 00:05:05,920 Currently, we import some products 70 00:05:12,920 --> 00:05:14,440 - or nationwide? - All over India, sir. 71 00:05:18,400 --> 00:05:19,920 Sir, we have three main products. 72 00:05:20,000 --> 00:05:21,560 - Show us. - Power Reaper. 73 00:05:32,240 --> 00:05:34,480 This is our Chaff Cutter video with the highest views. 74 00:05:34,560 --> 00:05:37,240 The viral video has 4.5 million views. 75 00:05:39,960 --> 00:05:41,160 This is Power Reaper. 76 00:05:41,920 --> 00:05:45,480 This video is from the time when it didn't have a seat. 77 00:05:45,600 --> 00:05:49,120 These machines don't seem like they're a new innovation. 78 00:05:50,520 --> 00:05:52,280 I feel like I've seen them before. 79 00:05:52,360 --> 00:05:55,000 - Let me tell you... - We've seen them on Shark Tank before. 80 00:05:55,080 --> 00:05:57,160 It's not like this machine was ever a new innovation. 81 00:05:57,320 --> 00:06:01,760 Back in 1993, sir, the tractor machines already existed 82 00:06:01,840 --> 00:06:04,520 but they yield a loss of 8%. 83 00:06:04,760 --> 00:06:06,400 It's not like our machine doesn't. 84 00:06:06,520 --> 00:06:08,400 Our machine yields a loss of 1.8%. 85 00:06:12,000 --> 00:06:13,240 Let me explain. 86 00:06:13,320 --> 00:06:18,840 - The average width of a tractor is 7 to 8 feet, sir. - Okay. 87 00:06:29,720 --> 00:06:32,960 ...causes the dried grains to fall off. 88 00:06:33,120 --> 00:06:34,960 That causes a loss of 8%. 89 00:06:35,040 --> 00:06:36,840 Whereas, it is 1.8% on our machine. 90 00:06:36,920 --> 00:06:38,320 That's not our claim, sir. 91 00:06:38,400 --> 00:06:42,160 This data is backed by government agricultural universities. 92 00:06:42,240 --> 00:06:44,120 Do you have a certificate? 93 00:06:45,160 --> 00:06:47,800 - Sir, we don't have a certificate as such but I could... - Yes. 94 00:06:47,920 --> 00:06:51,800 These are the findings of the tests done by companies in agriculture. 95 00:06:52,000 --> 00:06:53,360 Who gives the testing reports? 96 00:06:53,440 --> 00:06:55,800 The test reports come from government universities. 97 00:06:55,880 --> 00:06:57,640 - In India... - You don't have it. 98 00:06:57,720 --> 00:07:00,080 No, we don't have the testing report for that machine yet. 99 00:07:00,160 --> 00:07:02,080 - Of neither? - We do have it for this one. 100 00:07:07,760 --> 00:07:09,880 and many accidents involving women were reported. 101 00:07:09,960 --> 00:07:11,920 Their dupattas and saris would get stuck. 102 00:07:12,000 --> 00:07:13,200 - Or they'd lose fingers. - Oh! 103 00:07:13,280 --> 00:07:15,240 We've provided covers on all four sides 104 00:07:15,320 --> 00:07:17,480 to eliminate the chances of any accidents. 105 00:07:17,560 --> 00:07:19,920 If you see, the covers are huge. 106 00:07:20,000 --> 00:07:23,400 Your hand won't reach the blade even if it is all the way in. 107 00:07:23,520 --> 00:07:26,520 So, the chances of accidents and mishaps are nil. 108 00:07:31,280 --> 00:07:34,160 Ma'am, I'd say the designs are neither ours nor... 109 00:07:34,240 --> 00:07:37,800 Power Reaper has been in existence for a really long time, 110 00:07:37,880 --> 00:07:40,760 but no one had the vision of adding a seat to it. 111 00:07:47,960 --> 00:07:49,400 Where do you make these? 112 00:07:49,480 --> 00:07:50,320 In different places. 113 00:07:50,440 --> 00:07:52,120 We assemble them. We don't make anything, ma'am. 114 00:07:52,160 --> 00:07:54,400 - You assemble it yourselves! - Yes, that's right. 115 00:07:54,480 --> 00:07:56,440 How many people are involved in the assembly? 116 00:07:56,520 --> 00:07:58,720 We currently have a team of 32 people in total. 117 00:07:58,840 --> 00:08:00,080 - Where do you store them? - Warehouses. 118 00:08:00,120 --> 00:08:01,120 We have five warehouses. 119 00:08:01,160 --> 00:08:03,200 Five warehouses! Nice. 120 00:08:03,320 --> 00:08:04,920 - Lovely. - What's the capacity? 121 00:08:05,000 --> 00:08:08,160 How many such machines can you make in a month? 122 00:08:08,280 --> 00:08:11,680 Ma'am, the harvesting season in India lasts for two months. 123 00:08:11,880 --> 00:08:13,720 Mostly the last six months of the year. 124 00:08:13,840 --> 00:08:15,520 One's October to November. 125 00:08:15,600 --> 00:08:16,840 The other is February to March. 126 00:08:16,920 --> 00:08:21,240 And in case the rains vary, it could extend up to 15 April. 127 00:08:21,320 --> 00:08:22,360 - Harvest season. - Got it. 128 00:08:22,400 --> 00:08:25,000 You assemble the products before, have an inventory ready 129 00:08:25,080 --> 00:08:26,280 and then, during harvest time... 130 00:08:26,360 --> 00:08:28,200 - We sell it. - You sell them. 131 00:08:28,320 --> 00:08:29,560 Who's your competition? 132 00:08:29,800 --> 00:08:32,040 Ma'am, our competitors include KisanKraft Limited, 133 00:08:32,120 --> 00:08:33,200 where I used to work. 134 00:08:33,280 --> 00:08:34,800 They currently don't offer a seat car. 135 00:08:34,880 --> 00:08:36,080 How big is that company? 136 00:08:36,280 --> 00:08:39,400 Sir, I think approximately Rs. 300 crores. 137 00:08:39,480 --> 00:08:41,240 I don't have any proof though. 138 00:08:41,360 --> 00:08:44,160 Let's assume Rs. 300 crores for now. How many machines do they sell? 139 00:08:44,280 --> 00:08:46,520 Do they sell 8 to 10 like you or just 1 or 2? 140 00:08:46,600 --> 00:08:50,080 No. In comparison, their SKUs must be 3x to 5x, sir. 141 00:08:50,200 --> 00:08:52,920 - 3x to 5x! More SKUs! - They must have about 60 SKUs. 142 00:08:53,040 --> 00:08:54,760 Can you outdo them? 143 00:08:55,560 --> 00:08:56,560 Why not, sir? 144 00:08:56,920 --> 00:08:58,080 [chuckling] 145 00:08:58,200 --> 00:08:59,640 - You answered in a snap. Well done. - How? 146 00:08:59,680 --> 00:09:00,760 Clear goals. Very good. 147 00:09:00,840 --> 00:09:03,760 - How? - Sir, we do social media marketing 148 00:09:04,200 --> 00:09:08,440 on platforms like YouTube, Facebook and Instagram. 149 00:09:12,800 --> 00:09:14,280 we focus on service. 150 00:09:14,400 --> 00:09:16,000 For example, I buy this machine. 151 00:09:16,280 --> 00:09:19,520 I give good reviews to four people. 152 00:09:24,360 --> 00:09:27,360 - If I were to differentiate between you two... - Hmm. 153 00:09:27,520 --> 00:09:29,560 What are you better at versus them? 154 00:09:29,640 --> 00:09:32,120 Sir, they follow a B2B model 155 00:09:32,240 --> 00:09:34,880 while we follow a D2C model. 156 00:09:35,480 --> 00:09:37,680 You spoke about social media. 157 00:09:37,960 --> 00:09:42,160 You mentioned you got about 5 million views on YouTube. 158 00:09:42,280 --> 00:09:43,640 You must have a good number of followers. 159 00:09:43,680 --> 00:09:45,840 - How many do you have... - 1.6 lakhs. 160 00:09:45,920 --> 00:09:47,480 - 1.6 lakhs subscribers. - Unbelievable! 161 00:09:47,520 --> 00:09:49,320 - Not bad. - Could you show us your channel? 162 00:09:49,400 --> 00:09:50,680 1.6 lakhs! 163 00:09:50,800 --> 00:09:52,040 - Yes, sir. - Very good. 164 00:09:52,120 --> 00:09:53,640 - Your YouTube followers? - Yes. 165 00:09:53,760 --> 00:09:55,600 - That's great. Very good. - Very nice. 166 00:09:57,520 --> 00:10:01,720 Look. 1.1 million, 1.1..., 3.47 million... 167 00:10:01,800 --> 00:10:03,760 - Scroll down. - 1.6 lakh subscribers. 168 00:10:03,840 --> 00:10:06,560 Good heavens! 4.5 million! 169 00:10:06,640 --> 00:10:08,720 - This is what they were talking about. - 45 lakhs. 170 00:10:10,360 --> 00:10:12,000 - That's fantastic. - Scroll down further. 171 00:10:12,000 --> 00:10:13,280 You're a hero! 172 00:10:14,400 --> 00:10:18,280 'You can order it to any city, village or district.' 173 00:10:18,360 --> 00:10:21,200 'The world's best company, in India at least.' 174 00:10:21,320 --> 00:10:23,520 'Greaves Cotton company is the best in the world,' 175 00:10:23,600 --> 00:10:25,280 'even before the time India got independence.' 176 00:10:25,280 --> 00:10:28,440 'The company is over 100 years old and started in 1859.' 177 00:10:28,520 --> 00:10:32,880 - 'We provide you this machine along with their engine.' - Wow! 178 00:10:32,960 --> 00:10:37,080 'My fellow farmers, you won't get such good tyres from TVS anywhere...' 179 00:10:37,160 --> 00:10:38,560 'This powerful Power Reaper...' 180 00:10:38,640 --> 00:10:40,440 - Oh, wow! - Amazing. 181 00:10:40,560 --> 00:10:41,600 Is that you? 182 00:10:42,200 --> 00:10:43,520 - Nice. - Well done. 183 00:10:43,600 --> 00:10:46,480 - Salesman. What's on your hand? - A tattoo, sir. 184 00:10:46,600 --> 00:10:48,320 - Your company's logo. - A tattoo of RBD. 185 00:10:48,400 --> 00:10:50,280 - It's our grandpa's name. - Grandpa's name. 186 00:10:50,360 --> 00:10:51,600 - Their grandfather's name... - Nice. 187 00:10:51,600 --> 00:10:52,680 If you take a closer look, 188 00:10:52,760 --> 00:10:55,080 you'll see a tattoo of their company's logo on his arm. 189 00:10:55,160 --> 00:10:56,480 Show us the tattoo. 190 00:10:56,880 --> 00:10:58,400 [light-hearted music playing] 191 00:11:01,480 --> 00:11:04,400 It matches the brand logo. 192 00:11:04,480 --> 00:11:06,800 - Just like that. - RBD! 193 00:11:06,880 --> 00:11:08,160 I have a question. 194 00:11:08,240 --> 00:11:10,360 You sell such big machines. 195 00:11:10,760 --> 00:11:14,160 I don't quite get why you sell torches along with them. 196 00:11:14,360 --> 00:11:16,560 It helps to form a bond with customers. 197 00:11:16,680 --> 00:11:20,440 Day after day, we re-market all our products to them. 198 00:11:20,560 --> 00:11:21,600 Cross-selling. 199 00:11:26,560 --> 00:11:29,440 If I sell a machine for Rs. 1.4 lakhs to a farmer... 200 00:11:29,520 --> 00:11:30,920 - It helps you build trust. - Yes. 201 00:11:31,280 --> 00:11:34,000 This is many times called a loss leader in the industry. 202 00:11:42,800 --> 00:11:45,120 Sir, as a business, this is a profitable product. 203 00:11:49,440 --> 00:11:51,280 It's even more profitable, 204 00:11:51,360 --> 00:11:53,800 because that farmer will buy more products from me down the line. 205 00:11:53,840 --> 00:11:55,960 Got it. This won't get you big business 206 00:11:56,040 --> 00:12:00,040 - but it'll establish a relationship with the farmer. - Yes. 207 00:12:00,120 --> 00:12:00,920 Got it. 208 00:12:01,000 --> 00:12:04,360 We've understood your products. Tell us about your sales 209 00:12:04,680 --> 00:12:06,480 and where your company currently stands. 210 00:12:06,600 --> 00:12:10,600 From 1 April to September 2024, 211 00:12:10,760 --> 00:12:12,560 - we've done sales of Rs. 9.34 crores. - Oh, wow! 212 00:12:12,600 --> 00:12:13,960 - Wow! - Well done. 213 00:12:15,320 --> 00:12:16,440 You did well. 214 00:12:16,520 --> 00:12:18,440 Last year, it was Rs. 14.37 crores. 215 00:12:18,560 --> 00:12:20,080 How much will you do this year? 216 00:12:20,160 --> 00:12:21,760 About Rs. 22 to 25 crores. 217 00:12:26,960 --> 00:12:29,120 Rs. 1.69 crores the month before that 218 00:12:29,200 --> 00:12:31,040 and Rs. 1.58 crores before that. 219 00:12:31,120 --> 00:12:33,320 By looking at your figures, 220 00:12:33,600 --> 00:12:35,320 - I can say you make profits. - Yes, sir. 221 00:12:35,560 --> 00:12:36,800 - Tell us. - How much? 222 00:12:36,880 --> 00:12:39,920 - How much? - Tell us the profit in percentage. 223 00:12:40,040 --> 00:12:41,040 7 to 8%. 224 00:12:41,120 --> 00:12:41,920 Very good. 225 00:12:42,000 --> 00:12:43,480 How much money did you make last year? 226 00:12:43,480 --> 00:12:44,960 We showed um... 227 00:12:45,880 --> 00:12:47,560 0.48% something. 228 00:12:47,640 --> 00:12:48,640 Around Rs. 13 lakhs. 229 00:12:48,760 --> 00:12:49,760 This year? 230 00:12:49,840 --> 00:12:51,160 How much will we show? 231 00:12:51,240 --> 00:12:52,800 [all laugh] 232 00:12:53,560 --> 00:12:55,920 - How much will you make? - Around Rs. 1 to 1.5 crores. 233 00:12:56,000 --> 00:12:59,240 - That you'll disclose or in total? - I'm talking about the 7 to 8%. 234 00:12:59,320 --> 00:13:02,040 - Okay. Your net profit is Rs. 1.5 crores... - Total. 235 00:13:02,120 --> 00:13:04,120 That you'll take home after tax. 236 00:13:04,200 --> 00:13:05,800 - The company will get it. - Yes. 237 00:13:05,880 --> 00:13:07,560 Could you tell us more about it? 238 00:13:07,680 --> 00:13:09,840 Why don't you disclose the entire profit in your books? 239 00:13:09,960 --> 00:13:13,160 If we pay the government more tax, how will we grow the company 240 00:13:13,240 --> 00:13:14,400 if we're left with nothing? 241 00:13:14,520 --> 00:13:15,520 Oh, no! 242 00:13:15,600 --> 00:13:18,720 You gave us a lovely story about your grandpa. 243 00:13:18,800 --> 00:13:22,880 Principles are very important in life. 244 00:13:23,000 --> 00:13:27,160 If your reason is investing money back into the business, 245 00:13:27,240 --> 00:13:30,120 you could easily get a loan from the government. 246 00:13:30,200 --> 00:13:31,520 - That's right. - So, you know? 247 00:13:31,640 --> 00:13:34,960 Rather, than evading taxes, it's better you take a bigger loan 248 00:13:35,320 --> 00:13:37,400 and run the business ethically. 249 00:13:37,480 --> 00:13:38,440 Don't you agree? 250 00:13:38,520 --> 00:13:41,040 We're just following our CA's suggestions. 251 00:13:41,120 --> 00:13:43,560 We can't be good at everything. 252 00:13:43,640 --> 00:13:45,880 Yes, we might have insufficient knowledge. 253 00:13:45,960 --> 00:13:47,440 When it comes to tax, 254 00:13:47,520 --> 00:13:50,920 we consider this person more knowledgeable than us. 255 00:13:51,080 --> 00:13:53,040 If they guided us in a certain way, 256 00:13:53,120 --> 00:13:54,640 we assumed it would be right. 257 00:13:54,760 --> 00:13:57,840 Let me explain this to you very practically. 258 00:13:57,920 --> 00:13:59,920 Do you know the cost of equity? 259 00:14:00,000 --> 00:14:04,040 Suppose you sell your equity at whatever valuation in the future, 260 00:14:04,400 --> 00:14:06,000 do you know what it'd cost you? 261 00:14:06,080 --> 00:14:07,280 They become a partner in the firm. 262 00:14:07,320 --> 00:14:08,440 Yes, they do, 263 00:14:08,520 --> 00:14:10,720 but what return are they expecting? How much can you give? 264 00:14:10,760 --> 00:14:13,800 - They'd expect 2 to 3%. - No, let's calculate annually 265 00:14:13,880 --> 00:14:15,480 as interest is calculated annually. 266 00:14:15,560 --> 00:14:20,200 The return you've to give them is 25 to 30% annually. 267 00:14:20,320 --> 00:14:22,320 Only then would they invest in equity. 268 00:14:22,400 --> 00:14:23,600 According to their calculation, 269 00:14:23,600 --> 00:14:26,640 they are expecting 3x or 4x in 5 years. 270 00:14:26,760 --> 00:14:29,200 Only if they feel they'll make that much, will they invest. 271 00:14:29,320 --> 00:14:33,080 On the one hand, your balance sheet is so strong 272 00:14:33,160 --> 00:14:36,680 that if you consider the current government schemes, 273 00:14:36,760 --> 00:14:39,920 you might get a good loan for between 8 to 12% interest. 274 00:14:40,040 --> 00:14:41,800 Let's assume you get it at 10%. 275 00:14:41,880 --> 00:14:44,440 You'll be giving less equity or none. 276 00:14:44,720 --> 00:14:46,920 That saves you 20% annually, buddy. 277 00:14:47,040 --> 00:14:49,400 Sir, we applied to a lot of banks. 278 00:14:49,520 --> 00:14:51,360 The maximum limit we were offered was Rs. 1.3 crores... 279 00:14:51,360 --> 00:14:53,280 Because you're not disclosing your profits. 280 00:14:53,400 --> 00:14:54,400 - We're showing sales. - If you... 281 00:14:54,440 --> 00:14:57,080 You're showing sales but not disclosing the profits. 282 00:14:57,160 --> 00:14:58,880 If you start disclosing the entire profits, 283 00:14:59,000 --> 00:15:00,280 Rs. 1.5 crores... 284 00:15:00,360 --> 00:15:02,280 Was that the limit you mentioned? 285 00:15:02,680 --> 00:15:03,520 - Yes? - Yes. 286 00:15:03,600 --> 00:15:05,360 Imagine what it'd rise to. 287 00:15:05,560 --> 00:15:08,800 Also, that'd increase your company's enterprise or equity value. 288 00:15:14,520 --> 00:15:17,440 ...if you have a profit of Rs. 50 crores at the time, 289 00:15:21,920 --> 00:15:24,160 If you sell shares, you'd make a lot of money 290 00:15:24,320 --> 00:15:26,760 and so would your investors. 291 00:15:26,880 --> 00:15:29,440 If you continue to hide your profits, 292 00:15:29,800 --> 00:15:31,400 fine, the company will grow 293 00:15:31,480 --> 00:15:34,200 but it will not have an enterprise value 294 00:15:34,280 --> 00:15:36,200 or equity value. 295 00:15:36,480 --> 00:15:37,680 Devendra! Bhupendra! 296 00:15:37,760 --> 00:15:40,560 Look, someone could get embroiled in all this, 297 00:15:40,640 --> 00:15:42,360 you as well as your investors. 298 00:15:42,440 --> 00:15:45,800 First, you need to pay off your old taxes. 299 00:15:45,880 --> 00:15:49,960 The government gives the opportunity to pay off your old taxes. 300 00:15:50,080 --> 00:15:52,600 So, pay off the pending taxes with the penalty 301 00:15:52,680 --> 00:15:56,760 so that your company could grow into a big one. 302 00:15:57,320 --> 00:16:00,840 - Is your distribution solely online? - Yes. 303 00:16:00,920 --> 00:16:03,880 So, farmers watch your videos on YouTube 304 00:16:04,160 --> 00:16:05,560 and call your number. 305 00:16:05,640 --> 00:16:07,680 - And are you able to sell to them? - Yes. 306 00:16:08,720 --> 00:16:09,880 That's amazing. 307 00:16:12,760 --> 00:16:14,240 ...how do you ship it? 308 00:16:14,400 --> 00:16:15,400 What does it cost? 309 00:16:15,560 --> 00:16:17,840 - It costs Rs. 1.35 lakhs. - Oh, wow. 310 00:16:18,000 --> 00:16:20,840 An advance payment of say Rs. 10,000 is made into the company account. 311 00:16:20,920 --> 00:16:22,120 - Advance payment. - Yes. 312 00:16:26,800 --> 00:16:27,880 Not even a video call? 313 00:16:28,000 --> 00:16:30,800 - If someone has trust issues, they video call us. - Okay. 314 00:16:30,920 --> 00:16:33,320 Those who do trust us and are familiar with the internet... 315 00:16:33,440 --> 00:16:35,560 Many people watch the video, go on the internet 316 00:16:35,680 --> 00:16:38,240 or an e-commerce platform and confirm that we exist... 317 00:16:38,360 --> 00:16:40,440 - They read the reviews. - Outstanding! 318 00:16:40,560 --> 00:16:43,200 - Hang on, Aman. - India's e-commerce market has done well. 319 00:16:43,280 --> 00:16:45,200 - Amazing. Yes. - People are buying this online. 320 00:16:45,440 --> 00:16:47,960 Then you get a telesale. 321 00:16:48,080 --> 00:16:50,240 - The buyer sends an advance payment of Rs. 10,000. - Yes. 322 00:16:50,280 --> 00:16:51,880 How do you ship it? 323 00:16:52,000 --> 00:16:53,320 - Ship... - Do you dismantle it? 324 00:16:53,400 --> 00:16:55,400 - No, sir. It goes in two parts. - Okay. 325 00:16:55,520 --> 00:16:57,440 The front and the back. 326 00:16:58,560 --> 00:17:01,600 We have tied up with a few transport companies. 327 00:17:01,720 --> 00:17:06,800 We deliver to every village, farm, house, district and state. 328 00:17:06,880 --> 00:17:08,840 What is the delivery cost incurred? 329 00:17:08,920 --> 00:17:11,120 We deliver all the machines free of cost. 330 00:17:16,880 --> 00:17:18,280 Have you taken a bank loan? 331 00:17:18,400 --> 00:17:21,280 Sir, we have a CC limit of Rs. 1.3 crores from Axis Bank. 332 00:17:21,400 --> 00:17:23,080 Have you drawn down all of it? 333 00:17:23,200 --> 00:17:25,800 We have about Rs. 15 to 20 lakhs. 334 00:17:25,920 --> 00:17:27,960 Do you draw salaries? 335 00:17:28,040 --> 00:17:30,400 It's not fixed, but about Rs. 8 to 9 lakhs. 336 00:17:30,520 --> 00:17:31,880 - Annually. - Each? 337 00:17:32,000 --> 00:17:32,800 Yes. 338 00:17:32,880 --> 00:17:35,640 What's your vision for the next five years? 339 00:17:35,760 --> 00:17:37,840 We want to touch Rs. 100 crores in three years. 340 00:17:37,920 --> 00:17:39,480 That's our main vision, sir. 341 00:17:40,080 --> 00:17:42,840 Tell me something. You have two options here. 342 00:17:43,160 --> 00:17:45,720 Either you could take this solely on e-commerce 343 00:17:45,800 --> 00:17:47,960 where you also sell the products of others. 344 00:17:48,440 --> 00:17:52,240 Or whatever you make is in your own warehouse, 345 00:17:52,440 --> 00:17:55,280 using your own machinery to make your own output. 346 00:17:55,440 --> 00:17:57,080 Which path do you see yourself taking? 347 00:17:57,200 --> 00:18:00,200 Sir, we will only carry RBD forward 348 00:18:00,440 --> 00:18:02,640 - as long as we live. - Hmm. 349 00:18:02,720 --> 00:18:05,240 - Lovely. - We won't be distributors or dealers for anyone else. 350 00:18:05,320 --> 00:18:06,160 I love the clarity. 351 00:18:06,240 --> 00:18:09,200 Let me also tell you about our main vision. 352 00:18:09,600 --> 00:18:10,680 In the next five years, 353 00:18:30,080 --> 00:18:33,320 What are the top few SKUs you'd like to add in future 354 00:18:33,400 --> 00:18:35,360 where you see a huge potential? 355 00:18:36,920 --> 00:18:40,160 Sir, every year, we introduce two products. 356 00:18:40,320 --> 00:18:43,440 The sale of whichever product's SKUs rises, 357 00:18:43,520 --> 00:18:46,240 we push that aside... As in, add it to our existing base, 358 00:18:46,320 --> 00:18:49,080 and gradually take out the one that isn't performing well. 359 00:18:49,160 --> 00:18:52,520 - Amazing. - FMCG giants do the same thing. 360 00:18:53,760 --> 00:18:55,400 You haven't studied MBA 361 00:18:55,480 --> 00:18:57,720 but you can give good MBAs a hard time! 362 00:18:59,800 --> 00:19:01,400 I'll make you an offer. 363 00:19:02,240 --> 00:19:05,600 Okay? I really loved your business. 364 00:19:05,960 --> 00:19:08,920 You understood the problem correctly. 365 00:19:09,080 --> 00:19:10,400 The sales are fantastic. 366 00:19:11,800 --> 00:19:13,240 And as you just mentioned, 367 00:19:13,320 --> 00:19:17,600 in reality, small plots are the problem in India 368 00:19:17,720 --> 00:19:21,760 that require small machinery. 369 00:19:21,880 --> 00:19:23,920 Right? So, you're in a good, 370 00:19:24,080 --> 00:19:26,400 progressive and growth-oriented market. 371 00:19:26,800 --> 00:19:31,320 My condition is you will sort out your tax-related issues. 372 00:19:37,360 --> 00:19:40,560 ...and I'll give you another Rs. 50 lakhs as a loan 373 00:19:40,680 --> 00:19:43,800 at a 9% interest rate for 5 years. 374 00:19:49,920 --> 00:19:52,600 You can put up a fight, are daring, 375 00:19:52,720 --> 00:19:54,440 and your sales are solid too. 376 00:19:54,520 --> 00:19:56,840 Huge respect and I salute you! 377 00:19:56,920 --> 00:19:57,920 [chuckling] 378 00:19:58,720 --> 00:20:00,840 I think in my opinion, 379 00:20:00,960 --> 00:20:04,680 1% equity wouldn't mean a lot to me 380 00:20:04,760 --> 00:20:06,760 in terms of skin in the game. 381 00:20:07,600 --> 00:20:11,480 And I believe Rs 100-crore valuation was too much to ask for. 382 00:20:12,040 --> 00:20:13,760 You have a good offer from Namita. 383 00:20:14,440 --> 00:20:17,320 So, I would like to exit. 384 00:20:17,760 --> 00:20:19,360 I'm out, but good luck. 385 00:20:19,520 --> 00:20:20,320 - Thank you. - Thank you. 386 00:20:20,400 --> 00:20:21,520 Bhupendra! Devendra! 387 00:20:21,600 --> 00:20:24,960 I liked a lot of things about you. 388 00:20:25,560 --> 00:20:28,200 Just as you are very close to your grandfather, 389 00:20:28,280 --> 00:20:30,760 I was close to mine. He's no longer with us. 390 00:20:30,880 --> 00:20:33,880 He told me one thing when I was young. 391 00:20:34,000 --> 00:20:36,960 He wanted to teach only two things to his children. 392 00:20:37,040 --> 00:20:39,640 To take flight and stay grounded. 393 00:20:40,280 --> 00:20:43,440 I believe you've had a very good upbringing 394 00:20:43,640 --> 00:20:45,040 as you have both. 395 00:20:45,120 --> 00:20:47,960 You're extremely humble and grounded 396 00:20:48,600 --> 00:20:50,560 but have ambition too. 397 00:20:50,640 --> 00:20:56,080 You've used many tricks followed by e-commerce companies 398 00:20:56,240 --> 00:20:58,920 to attract customers like free shipping. 399 00:20:59,040 --> 00:21:01,120 I really liked your clarity of thought. 400 00:21:01,240 --> 00:21:02,800 At times, founders say, 401 00:21:02,960 --> 00:21:06,680 "Free shipping on these six high-value products" 402 00:21:06,760 --> 00:21:10,440 "but no free shipping on the torch as that'd lower my profits." 403 00:21:10,560 --> 00:21:13,560 You resisted that temptation 404 00:21:13,680 --> 00:21:16,240 and wanted your proposition clean, 405 00:21:16,360 --> 00:21:21,240 but the one thing I did not like at all 406 00:21:21,840 --> 00:21:24,720 was the concept of not paying your taxes. 407 00:21:25,120 --> 00:21:28,800 That raises a question in my mind. 408 00:21:29,280 --> 00:21:30,680 "Are your other numbers genuine?" 409 00:21:31,720 --> 00:21:36,240 So, I want you to fix this problem. 410 00:21:36,320 --> 00:21:37,840 I'd like to see you again 411 00:21:38,480 --> 00:21:40,160 after this is done. 412 00:21:41,320 --> 00:21:42,560 Today, I'm out. 413 00:21:43,000 --> 00:21:44,160 - Thank you, sir. - Thank you. 414 00:21:47,880 --> 00:21:49,760 You know the place, product and price. 415 00:21:49,840 --> 00:21:52,720 You know marketing and understand business, right? 416 00:21:52,880 --> 00:21:55,480 It's not like there won't be another opportunity to invest in you. 417 00:21:55,560 --> 00:21:57,640 I believe there certainly will be. 418 00:21:57,800 --> 00:22:01,680 Today, because your paperwork isn't ready, 419 00:22:01,800 --> 00:22:03,720 I won't be investing. 420 00:22:04,920 --> 00:22:08,280 It was nice to meet you. Unfortunately, I'm out. 421 00:22:09,440 --> 00:22:11,440 Nowadays, small towns are churning out companies 422 00:22:11,520 --> 00:22:13,320 with a turnover of Rs. 25 crores. 423 00:22:13,720 --> 00:22:17,360 Congratulations on building a big business in your village. 424 00:22:17,440 --> 00:22:18,800 Your vision is clear too. 425 00:22:18,880 --> 00:22:20,200 So, I want to make you an offer. 426 00:22:22,440 --> 00:22:25,040 I'll give you Rs. 50 lakhs for 1% equity 427 00:22:27,280 --> 00:22:30,280 along with Rs. 50 lakhs at 9% interest for 5 years, 428 00:22:30,360 --> 00:22:31,400 which is a similar offer. 429 00:22:37,680 --> 00:22:40,040 Actually, Ritesh and I will give you a combined offer. 430 00:22:40,880 --> 00:22:42,240 Here's our joint offer. 431 00:22:42,320 --> 00:22:44,720 - Rs. 50 lakhs for 1% equity. - Right. 432 00:22:44,800 --> 00:22:48,800 - Same offer. - And Rs. 50 lakhs at 9% interest for 5 years 433 00:22:55,080 --> 00:22:56,920 ...and continuing this further. 434 00:22:57,000 --> 00:23:00,200 Your paperwork should be in order at all times. 435 00:23:00,440 --> 00:23:03,040 Kumar and Kumar, you have one offer. What would you like to do? 436 00:23:06,040 --> 00:23:08,680 We accept your offer. 437 00:23:17,000 --> 00:23:20,080 - That's great. Marketing geniuses! - The things you say! 438 00:23:20,160 --> 00:23:21,240 Beautiful. 439 00:23:22,720 --> 00:23:24,920 - Welcome, partnership! - [Namita laughing] 440 00:23:25,000 --> 00:23:26,400 'It's a dream for us.' 441 00:23:26,480 --> 00:23:27,840 This is a dream come true. 442 00:23:27,960 --> 00:23:31,120 We arrived, met five Sharks and even got a deal. 443 00:23:31,360 --> 00:23:32,600 [camera shutter clicking] 444 00:23:32,720 --> 00:23:34,440 'RBD and we share a common dream.' 445 00:23:34,520 --> 00:23:37,360 Saving the time and money of every farmer. 446 00:23:49,600 --> 00:23:51,240 [music concludes] 447 00:23:51,640 --> 00:23:54,560 There are a lot of businesses and individuals 448 00:23:54,800 --> 00:23:56,960 who don't pay taxes. 449 00:23:57,680 --> 00:24:00,240 And they think that by paying taxes, 450 00:24:00,680 --> 00:24:04,160 their money is getting wasted or is not yielding any result, 451 00:24:04,440 --> 00:24:05,720 but that's not right. 452 00:24:05,800 --> 00:24:07,440 Taxes must be paid in full 453 00:24:07,800 --> 00:24:12,200 because they are eventually used for the development of the country. 454 00:24:12,760 --> 00:24:16,840 And corporate governance is extremely important 455 00:24:16,920 --> 00:24:20,640 not just for listed companies, but including every start-up. 456 00:24:20,800 --> 00:24:22,520 Had it not been for this issue, 457 00:24:22,640 --> 00:24:25,000 I'd surely have invested in this company. 458 00:24:25,360 --> 00:24:26,880 [upbeat music playing] 459 00:24:33,400 --> 00:24:35,200 Welcome to ACKO Change Makers 460 00:24:35,280 --> 00:24:37,000 where we really welcome change, 461 00:24:37,120 --> 00:24:40,760 and that is beautifully depicted on the wall behind me, 462 00:24:40,880 --> 00:24:42,200 our Change Makers wall. 463 00:24:42,480 --> 00:24:45,760 Through technological advancements and a mindset of forward thinking, 464 00:24:45,840 --> 00:24:48,920 we're bringing about a revolution of efficient farming in rural India. 465 00:24:49,040 --> 00:24:51,840 And today's Change Makers are doing just that 466 00:24:52,000 --> 00:24:53,520 plus they got funded. 467 00:24:53,600 --> 00:24:56,000 Congratulations, Bhupendra and Devendra. A warm welcome. 468 00:24:56,120 --> 00:24:57,440 - Thank you so much. - Greetings. 469 00:25:07,000 --> 00:25:08,360 and that's where you have come in. 470 00:25:08,400 --> 00:25:10,680 Thank you so much for this change. 471 00:25:10,840 --> 00:25:14,320 If we wish to bring about a change in our attitude, 472 00:25:14,400 --> 00:25:17,480 or if the viewers want to do something for the farmers in India, 473 00:25:17,560 --> 00:25:18,560 what can they do? 474 00:25:18,680 --> 00:25:19,840 Ma'am, even today, 475 00:25:20,040 --> 00:25:23,960 if we compare the farmers in India and abroad, 476 00:25:24,040 --> 00:25:25,160 we're lagging. 477 00:25:25,280 --> 00:25:29,840 The money that should have been saved is being spent on labour. 478 00:25:29,920 --> 00:25:31,960 And so, RBD brings you an initiative 479 00:25:32,160 --> 00:25:34,600 to save both the time and money of farmers. 480 00:25:34,680 --> 00:25:37,200 I hope this change comes about very soon. 481 00:25:37,280 --> 00:25:40,040 Similarly, with its revolutionary offerings, 482 00:25:40,120 --> 00:25:42,520 ACKO too is changing the landscape of insurance. 483 00:25:42,800 --> 00:25:45,240 For instance, zero waiting period for health insurance. 484 00:25:45,360 --> 00:25:49,280 That means, if you don't have a pre-existing health condition, 485 00:25:49,520 --> 00:25:52,840 then your coverage will start from the first day of the policy 486 00:25:52,920 --> 00:25:55,640 and you can claim without a standard waiting period. 487 00:25:55,880 --> 00:25:58,080 You've brought an innovation in agriculture 488 00:25:58,160 --> 00:26:01,360 and we wish to congratulate you on it. 489 00:26:01,440 --> 00:26:04,560 You received a funding in the Tank. Let's celebrate it. 490 00:26:04,960 --> 00:26:07,880 ACKO, Shark Tank and I wish to give you 491 00:26:08,760 --> 00:26:10,480 - a small memorabilia. - Thank you so much. 492 00:26:10,600 --> 00:26:11,680 [camera shutter clicking] 493 00:26:12,400 --> 00:26:15,280 'Shark Tank India co-presented by ACKO Insurance,' 494 00:26:15,360 --> 00:26:17,480 'PokerBaazi and Swiggy Instamart.' 495 00:26:17,560 --> 00:26:20,240 'Co-powered by Adani and Jaquar Bath & Light,' 496 00:26:20,320 --> 00:26:23,280 'and partners Rayzon Solar, ICICI Direct,' 497 00:26:23,360 --> 00:26:25,000 'Lenskart and Sofy.' 498 00:26:27,120 --> 00:26:28,960 [theme music playing] 499 00:26:48,080 --> 00:26:49,760 [theme music concludes] 500 00:26:52,200 --> 00:26:56,120 Akshay, what would you say if a founder forgets his numbers? 501 00:26:56,320 --> 00:26:57,920 Um... He forgot his numbers. 502 00:26:58,160 --> 00:26:59,000 Wrong answer. 503 00:26:59,080 --> 00:27:01,200 You should say, "It has all gone to waste!" 504 00:27:02,800 --> 00:27:05,280 Suppose, using the same waste, 505 00:27:05,360 --> 00:27:07,520 he builds a good brand 506 00:27:07,680 --> 00:27:11,920 and asks for Rs. 3 crores for 5% equity in the Tank, 507 00:27:12,000 --> 00:27:13,040 then what would you say? 508 00:27:17,240 --> 00:27:18,960 - Wow! Very good. - [all clap] 509 00:27:19,040 --> 00:27:21,760 Hi, Sharks. My name is Mayur Chandgude. 510 00:27:31,160 --> 00:27:33,880 - [Marathi] Namita, we're from Pune too. - Wow! 511 00:27:34,000 --> 00:27:37,640 We bring to you the finest brand Midas Paint 512 00:27:39,000 --> 00:27:42,640 which makes eco-friendly paint from cow dung. 513 00:27:42,960 --> 00:27:44,240 As you're aware, 514 00:27:44,360 --> 00:27:46,720 our paternal and maternal grandmothers 515 00:27:46,800 --> 00:27:49,840 would coat their homes in cow dung in the olden days 516 00:27:50,080 --> 00:27:53,240 keeping them cool and free of bacteria. 517 00:27:53,320 --> 00:27:55,360 Keeping that in mind 518 00:27:55,440 --> 00:27:57,800 and with a bit of help from technology, 519 00:27:57,880 --> 00:28:00,880 we made eco-friendly and decorative paint from cow dung. 520 00:28:03,280 --> 00:28:07,800 This paint is 20% cheaper as compared to other paints. 521 00:28:12,160 --> 00:28:16,760 Sharks, we've sold about 3 lakh kg of paint in 3 years. 522 00:28:16,880 --> 00:28:20,360 And we wish to colour the world in this paint. 523 00:28:20,480 --> 00:28:22,600 Sharks, spend a little money... 524 00:28:22,720 --> 00:28:25,840 And lend your Midas touch to Midas Paint! 525 00:28:25,920 --> 00:28:27,440 - Oh, nice. - Well done. 526 00:28:27,600 --> 00:28:28,600 Poetic! 527 00:28:29,280 --> 00:28:31,320 - Nice. - So, Mayur! Mayur! Sachin! Akshay! 528 00:28:31,560 --> 00:28:32,600 Welcome to Shark Tank. 529 00:28:33,000 --> 00:28:33,920 - Thank you, sir. - Thank you, sir. 530 00:28:34,000 --> 00:28:35,120 How does it feel to be here? 531 00:28:35,120 --> 00:28:37,680 - Feels great. - Quite exciting and feels great. 532 00:28:37,760 --> 00:28:41,320 Great. Give us a bit of history. How do you know each other? 533 00:28:41,440 --> 00:28:43,120 We're childhood friends. 534 00:28:43,320 --> 00:28:45,200 Sachin and I studied in the same school. 535 00:28:45,280 --> 00:28:47,200 Mayur and Akshay studied together. 536 00:28:47,320 --> 00:28:49,400 They were our seniors, we were their juniors. 537 00:28:49,560 --> 00:28:52,400 I did Bachelor's in Mechanical Engineering. 538 00:28:52,560 --> 00:28:55,800 I did my graduation followed by an MBA in Finance. 539 00:28:55,880 --> 00:28:56,880 Okay, and you? 540 00:28:57,000 --> 00:28:58,400 I've done a BE in Civil Engineering. 541 00:28:58,440 --> 00:29:00,960 I have a Diploma in Networking and Hardworking. 542 00:29:01,080 --> 00:29:02,560 A diploma in hardworking? 543 00:29:02,640 --> 00:29:04,560 - Hardware and networking. - Okay. 544 00:29:04,640 --> 00:29:05,480 You're hardworking too. 545 00:29:05,560 --> 00:29:07,480 Have you worked anywhere after your studies? 546 00:29:07,880 --> 00:29:10,440 Yes, I have. I used to work for an MNC. 547 00:29:10,520 --> 00:29:13,680 - When was this? - In 2017-18. 548 00:29:13,760 --> 00:29:15,320 Okay. When did you start this? 549 00:29:15,400 --> 00:29:16,480 In 2021. 550 00:29:16,560 --> 00:29:18,320 21. And you? 551 00:29:18,520 --> 00:29:21,000 I didn't do a job after my studies. 552 00:29:21,080 --> 00:29:22,920 - I used to do farming in the village. - I see. 553 00:29:23,000 --> 00:29:26,320 This start-up that was built is also related to farming. 554 00:29:26,400 --> 00:29:28,200 - So, I was interested in it. - Okay. 555 00:29:28,280 --> 00:29:30,680 - Do you still do farming? - Yes, I still do it. 556 00:29:30,920 --> 00:29:32,160 - Really? Where? - Yes. 557 00:29:32,280 --> 00:29:35,400 My village Indapur is 100 km from Pune. 558 00:29:35,480 --> 00:29:36,680 I have a farm there. 559 00:29:36,760 --> 00:29:39,560 - What about you, Sachin? - I graduated in 2016. 560 00:29:39,680 --> 00:29:42,720 I've been with them since 2021. 561 00:29:42,840 --> 00:29:44,880 - Okay. Don't you do anything else? - I do, sir. 562 00:29:44,960 --> 00:29:47,760 Precision Construction which is in proprietorship. 563 00:29:47,920 --> 00:29:50,440 - We run that business together too. - That as well. 564 00:29:50,560 --> 00:29:51,360 And you, sir? 565 00:29:51,440 --> 00:29:55,640 I run an industrial automation firm since 2016-17. 566 00:29:55,720 --> 00:29:58,560 This is an exceptional pitch. I am enjoying it. 567 00:29:58,640 --> 00:30:00,480 You do everything together. 568 00:30:00,560 --> 00:30:02,440 Why aren't you doing anything else, Mayur 2? 569 00:30:02,520 --> 00:30:03,920 I got a job after my engineering. 570 00:30:04,000 --> 00:30:07,520 I resigned and joined my family business 571 00:30:07,760 --> 00:30:11,760 which is into fabrication and electricals. 572 00:30:11,920 --> 00:30:15,520 After that, in 2021, I started Midas Paint. 573 00:30:15,600 --> 00:30:16,800 What became of that business? 574 00:30:17,040 --> 00:30:18,040 It's running. 575 00:30:18,120 --> 00:30:19,600 That too! Great! 576 00:30:19,680 --> 00:30:21,040 - So, then, you... - What kind of... 577 00:30:21,120 --> 00:30:22,040 Hang on. 578 00:30:22,120 --> 00:30:23,800 - You're here... - Whoa! 579 00:30:23,880 --> 00:30:25,520 You are here to take Rs. 3 crores 580 00:30:25,600 --> 00:30:27,760 - and run four businesses with it. - Five. 581 00:30:27,840 --> 00:30:28,920 Yes. Sorry, five businesses. 582 00:30:28,920 --> 00:30:31,000 Yes, but passionately, Midas Paint. 583 00:30:31,080 --> 00:30:33,000 - Yes, that's right. Wonderful! - [laughter] 584 00:30:33,200 --> 00:30:34,920 We were born last night! 585 00:30:35,840 --> 00:30:38,640 - So, you'll take the money as well... - Is either of you in it full-time? 586 00:30:38,680 --> 00:30:40,520 - We dedicate two hours in the morning... - No! 587 00:30:40,600 --> 00:30:42,480 - Full-time means full-time. - [laughter] 588 00:30:42,680 --> 00:30:44,600 Full-time means 24/7. 589 00:30:44,720 --> 00:30:45,880 Yes, that gets covered. 590 00:30:45,960 --> 00:30:49,720 Mayur is working 24/7 at Midas Paint. 591 00:30:49,800 --> 00:30:50,600 - Okay. - Mayur. 592 00:30:50,680 --> 00:30:53,120 - Just one. - I oversee marketing. 593 00:30:53,200 --> 00:30:55,960 So, I'm constantly making calls. 594 00:30:56,040 --> 00:31:00,560 - And so, I am also available 24/7. - [laughter] 595 00:31:00,960 --> 00:31:02,880 Are you under any compulsion 596 00:31:03,000 --> 00:31:05,240 due to which neither of you is doing this full-time? 597 00:31:05,360 --> 00:31:08,160 We've entered in the fourth year. 598 00:31:08,320 --> 00:31:11,640 We've to do something to run the household too, right? 599 00:31:11,840 --> 00:31:15,000 Are you saying you'll take the money today? 600 00:31:15,200 --> 00:31:17,600 Or that if your business does well, 601 00:31:17,760 --> 00:31:21,120 then all four of you will do just this 24/7? 602 00:31:21,280 --> 00:31:22,160 - Yes. - Yes, sir. 603 00:31:22,240 --> 00:31:23,640 - 100%. - Yes, 100%. 604 00:31:23,720 --> 00:31:25,200 Okay, just wanted to clarify. 605 00:31:25,480 --> 00:31:26,920 What's the equity split? 606 00:31:27,000 --> 00:31:29,360 You said you were the only one working full-time. 607 00:31:29,880 --> 00:31:31,440 Do you own more equity? 608 00:31:32,600 --> 00:31:34,080 - Yes, I own 55%. - Yes. 609 00:31:34,160 --> 00:31:35,720 You. What about you three? 610 00:31:35,840 --> 00:31:37,280 - 15%, 15%, 15%. - 15% each. 611 00:31:38,160 --> 00:31:39,440 Mayur! Sachin! Akshay! 612 00:31:39,520 --> 00:31:40,720 How did you start this? 613 00:31:40,800 --> 00:31:42,040 How did the idea of paints occur to you? 614 00:31:42,040 --> 00:31:44,200 I don't know of any paint 615 00:31:44,560 --> 00:31:46,720 that is normally made using cow dung. 616 00:31:47,240 --> 00:31:49,400 Painting work was being done at my place. 617 00:31:49,480 --> 00:31:52,440 While painting your house, you must've seen at your place 618 00:31:52,520 --> 00:31:54,200 - that it has a strong smell. - Yes. 619 00:31:54,280 --> 00:31:56,840 It becomes difficult to survive in that smell for a week. 620 00:31:56,920 --> 00:31:59,280 We have a plot 15 km away from Pune. 621 00:31:59,400 --> 00:32:01,560 There was an old lady there. 622 00:32:01,680 --> 00:32:04,240 She was applying 623 00:32:04,360 --> 00:32:06,480 cow dung around her house. 624 00:32:07,280 --> 00:32:10,560 She said that this prevents fungus from growing. 625 00:32:24,120 --> 00:32:27,720 ...that we should also use this and do something. 626 00:32:27,840 --> 00:32:29,760 I contacted my friend 627 00:32:29,840 --> 00:32:31,480 who was a professor at my school. 628 00:32:31,560 --> 00:32:33,680 He taught Chemical Engineering. 629 00:32:33,760 --> 00:32:36,960 We sat down and came up with a formula 630 00:32:37,080 --> 00:32:38,160 to make it work. 631 00:32:39,120 --> 00:32:42,680 All our paints are eco-friendly. 632 00:32:44,640 --> 00:32:45,640 It's a water-based paint. 633 00:32:45,680 --> 00:32:48,720 There is no oil-based content in our product. 634 00:32:48,800 --> 00:32:51,880 Whenever we buy cow dung from farmers, 635 00:33:19,000 --> 00:33:20,720 - We have applied for it. - You've applied for a patent. 636 00:33:20,760 --> 00:33:22,920 - Yes. - Do you transport coloured paint? 637 00:33:23,000 --> 00:33:26,040 No! We make more than 15,000 shades. 638 00:33:26,120 --> 00:33:29,840 We created our own bases by calibrating them ourselves. 639 00:33:30,280 --> 00:33:32,040 You asked for any colour... 640 00:33:32,160 --> 00:33:35,080 For example, 7065 is Morning Glory. 641 00:33:35,160 --> 00:33:38,320 That number goes into our software and that tint is made. 642 00:33:45,080 --> 00:33:47,160 If the distributors make it themselves 643 00:33:47,240 --> 00:33:49,440 and tweak the process here and there, 644 00:33:49,560 --> 00:33:51,320 won't it lead to variations in colour 645 00:33:51,600 --> 00:33:55,040 and other issues, which could cause problems when scaling up? 646 00:33:55,120 --> 00:33:56,800 I am just trying to understand the industry. 647 00:33:56,840 --> 00:33:58,160 What you are doing is not common. 648 00:33:59,000 --> 00:34:01,440 Every paint industry has such machines, 649 00:34:01,520 --> 00:34:03,080 - they have a D drive. - The distributor 650 00:34:03,080 --> 00:34:04,720 - has machines and they make the paint. - Yes! 651 00:34:04,760 --> 00:34:06,480 - They always do. - All the paint companies? 652 00:34:06,520 --> 00:34:08,480 - Yes, all paint companies. - I didn't know that. 653 00:34:08,640 --> 00:34:10,480 - Why are you saying this? - Really? 654 00:34:10,560 --> 00:34:11,560 They only transport. 655 00:34:11,680 --> 00:34:13,760 They manufacture white in the factory 656 00:34:14,040 --> 00:34:15,520 and transport white everywhere. 657 00:34:15,600 --> 00:34:17,240 Does Asian Paints do that too? 658 00:34:17,320 --> 00:34:18,360 Everyone does that. 659 00:34:19,920 --> 00:34:20,920 Tell me something. 660 00:34:20,960 --> 00:34:23,840 How big is the paint industry in India? 661 00:34:23,920 --> 00:34:25,400 This industry is worth Rs. 8 lakh crores. 662 00:34:25,440 --> 00:34:28,040 - 70% is decorative. - Okay. 663 00:34:28,120 --> 00:34:30,360 And 30% is industrial. 664 00:34:30,440 --> 00:34:32,920 Approximately, decorative paint is Rs. 6 lakh crores. 665 00:34:33,000 --> 00:34:35,600 Out of which half of it is unorganised according to me. 666 00:34:36,240 --> 00:34:38,200 - 30% is unorganised. - 30%. 667 00:34:38,280 --> 00:34:42,000 And out of the remaining 50% will be Asian Paints. 668 00:34:42,200 --> 00:34:44,720 - Yes. - Then, in such an industry, 669 00:34:44,920 --> 00:34:46,880 there is one player 670 00:34:46,960 --> 00:34:49,360 - who has a huge market share. - Yes. 671 00:34:49,440 --> 00:34:52,800 So, besides the fact that this paint is eco-friendly, 672 00:34:52,880 --> 00:34:55,680 what else motivated you to get into this? 673 00:34:56,480 --> 00:34:57,920 Back then, I didn't think 674 00:34:58,000 --> 00:35:00,360 about what the future holds. 675 00:35:00,480 --> 00:35:03,520 I just wanted to give something new to the consumers. 676 00:35:03,640 --> 00:35:05,680 - Good! - It will take time to change the mindset. 677 00:35:05,800 --> 00:35:07,000 - I am sure of that. - Yes. 678 00:35:07,080 --> 00:35:10,040 But we are giving alternative options. 679 00:35:10,120 --> 00:35:12,280 There are many paints being sold in the market, 680 00:35:12,360 --> 00:35:14,480 yet people are buying Midas Paint. 681 00:35:15,400 --> 00:35:16,640 This is what I wanted to ask. 682 00:35:16,720 --> 00:35:19,840 How do you convince the consumer to buy this paint? 683 00:35:20,640 --> 00:35:24,000 To promote this brand, we chose 684 00:35:24,080 --> 00:35:25,920 the cheapest way to market this 685 00:35:26,040 --> 00:35:28,680 and that is Instagram and Facebook. 686 00:35:29,600 --> 00:35:30,640 - That's good. Nice! - Yes. 687 00:35:30,760 --> 00:35:33,360 That helped us generate leads. 688 00:35:40,760 --> 00:35:43,040 We explained the concept to them thoroughly. 689 00:35:43,120 --> 00:35:46,360 We are working towards the environment and sustainability. 690 00:35:46,480 --> 00:35:48,040 It is a need of the hour. 691 00:35:48,120 --> 00:35:49,960 Once they take our samples 692 00:35:50,040 --> 00:35:53,440 to paint the house and get the feel of it, 693 00:35:53,560 --> 00:35:56,560 the network starts to build itself automatically. 694 00:35:57,440 --> 00:36:00,000 You just need to approach them, 695 00:36:00,080 --> 00:36:03,200 make them aware of your brand, and show them that this product exists. 696 00:36:03,280 --> 00:36:04,800 - Amazing! - We focus on 697 00:36:04,880 --> 00:36:06,680 - how it works. - Are you a farmer? 698 00:36:06,760 --> 00:36:07,840 Yes. 699 00:36:08,200 --> 00:36:10,520 The strategies you've mentioned, 700 00:36:10,600 --> 00:36:14,080 like referral marketing and digital marketing, 701 00:36:14,160 --> 00:36:16,320 are often used in such jargon, 702 00:36:16,440 --> 00:36:18,640 but you explained them in such a simple way. 703 00:36:18,760 --> 00:36:21,960 The basic foundational principles of doing business 704 00:36:22,040 --> 00:36:24,120 were conveyed in a way that made them easy to understand, 705 00:36:24,160 --> 00:36:25,880 without needing to aim for lofty goals. 706 00:36:26,080 --> 00:36:27,200 That is great! 707 00:36:28,760 --> 00:36:29,920 Do you have a shade card? 708 00:36:30,080 --> 00:36:31,840 - Yes, we have a shade card. - Show it to us. 709 00:36:31,880 --> 00:36:34,160 - Open it because I want to smell it. - Sure. 710 00:36:37,720 --> 00:36:38,720 Smell it. 711 00:36:39,440 --> 00:36:41,640 - Is there a smell? - No. 712 00:36:44,520 --> 00:36:46,480 - Nothing! - It has a smell, but not as strong. 713 00:36:46,600 --> 00:36:47,760 Okay! Fine. 714 00:36:47,840 --> 00:36:50,960 It is very mild. If you've seen other paints... 715 00:36:51,800 --> 00:36:54,080 If we apply paint from another paint company over this area, 716 00:36:54,120 --> 00:36:57,240 you claim that it has a stronger smell. 717 00:36:57,360 --> 00:36:59,400 If we leave a box of oil-based paint open 718 00:36:59,480 --> 00:37:02,960 over here even for five minutes, 719 00:37:03,120 --> 00:37:04,960 - you will be able to smell that too. - Okay. 720 00:37:05,040 --> 00:37:08,080 But the smell goes away after 4-5 days, Aman. 721 00:37:08,200 --> 00:37:09,440 So, what is the issue? 722 00:37:10,160 --> 00:37:12,160 For us, it is just a matter of a couple of days. 723 00:37:12,280 --> 00:37:13,960 But for the painter, 724 00:37:14,040 --> 00:37:17,560 who works every day to make a living, 725 00:37:17,640 --> 00:37:19,960 - we've thought about them. - Think about children. 726 00:37:20,040 --> 00:37:22,120 - They lick the walls. - And for children 727 00:37:22,240 --> 00:37:24,440 - at home. It also emits gases. - Yes. 728 00:37:24,520 --> 00:37:25,720 You are right. 729 00:37:26,120 --> 00:37:29,600 Once we apply this paint, the smell lingers for around 7-8 days at home. 730 00:37:29,680 --> 00:37:31,400 After that, it goes outside 731 00:37:31,480 --> 00:37:34,160 and it adds to the pollution outside. 732 00:37:35,640 --> 00:37:37,040 Do these major brands 733 00:37:37,120 --> 00:37:38,920 only make oil-based paints? 734 00:37:39,000 --> 00:37:40,200 No, they do make water-based paints too. 735 00:37:40,200 --> 00:37:41,200 They do, right? 736 00:37:41,280 --> 00:37:44,200 Do they also make eco-friendly paints or not? 737 00:37:44,560 --> 00:37:46,840 - No! No one makes eco-friendly paint. - No one? 738 00:37:46,960 --> 00:37:48,080 What is going on abroad? 739 00:37:48,160 --> 00:37:50,520 Are there eco-friendly paints in America and Europe? 740 00:37:50,600 --> 00:37:51,880 Yes, they do have eco-friendly paints. 741 00:37:51,880 --> 00:37:54,480 This means this concept will be eventually copied here as well. 742 00:37:54,960 --> 00:37:57,720 Let's assume that if a company claims 743 00:37:57,800 --> 00:38:00,520 to introduce eco-friendly paint, 744 00:38:00,680 --> 00:38:02,480 it will automatically mean 745 00:38:02,560 --> 00:38:04,920 that the products before this were harmful. 746 00:38:05,080 --> 00:38:07,000 It can backfire on them. 747 00:38:07,080 --> 00:38:11,040 - That will be a new brand. - You keep saying 'harmful'. 748 00:38:11,160 --> 00:38:13,440 Is there a study or data 749 00:38:13,720 --> 00:38:17,360 where it has been established that it causes health problems? 750 00:38:17,440 --> 00:38:20,320 - Yes! We do have data. - What is the data? Please tell us. 751 00:38:20,440 --> 00:38:22,520 When painters paint... 752 00:38:22,600 --> 00:38:24,320 No, hold on. There are two problems. 753 00:38:24,400 --> 00:38:26,440 One is that I agree that painters suffer. 754 00:38:26,520 --> 00:38:29,040 - I am talking about your end consumer. - Hmm! 755 00:38:29,160 --> 00:38:32,040 - Okay? Those who live in the house. - The data is available. 756 00:38:32,160 --> 00:38:35,640 - What is it? - But we currently don't have the numbers with us. 757 00:38:35,720 --> 00:38:38,240 How can you ask for Rs. 3 crores? 758 00:38:38,320 --> 00:38:40,360 You should have data on why it is less harmful. 759 00:38:41,560 --> 00:38:42,920 Our paints 760 00:38:54,560 --> 00:38:56,800 The benchmark in the paint industry 761 00:38:56,880 --> 00:38:58,960 should be around 5%. 762 00:39:05,880 --> 00:39:08,200 Because everyone would want to be compliant. 763 00:39:08,280 --> 00:39:10,440 So, everyone will be under 5%. 764 00:39:10,520 --> 00:39:13,840 You are claiming that you have a very small amount. 765 00:39:13,960 --> 00:39:16,480 - Is that the only difference? - Yes, sir. 766 00:39:16,760 --> 00:39:20,200 This implies that your differentiation no longer exists. 767 00:39:20,360 --> 00:39:24,120 Because customers know that under 5% is okay for me. 768 00:39:24,320 --> 00:39:27,400 So then whether it's 1% or 2%, I don't care. 769 00:39:28,840 --> 00:39:31,440 Your proof point will be evident from your business, 770 00:39:31,560 --> 00:39:33,080 whether your differentiation exists or not. 771 00:39:33,120 --> 00:39:36,840 Tell us about your business. What is the revenue and scale? 772 00:39:37,080 --> 00:39:39,600 We started in 2021. 773 00:39:39,680 --> 00:39:43,440 Our revenue was Rs. 15 lakhs in FY21-22. 774 00:39:44,400 --> 00:39:48,440 In FY 22-23, the revenue was Rs. 45 lakhs. 775 00:39:48,520 --> 00:39:52,320 In FY23-24, our revenue was Ra. 75 lakhs. 776 00:39:53,280 --> 00:39:57,040 After that, based on our current financials and the quarters, 777 00:39:57,160 --> 00:39:58,800 our revenue is currently Rs. 60 lakhs. 778 00:40:06,200 --> 00:40:09,760 Yes, this is the unit economics. The average price 779 00:40:09,840 --> 00:40:12,880 is Rs. 225 per litre. 780 00:40:13,800 --> 00:40:17,560 And we give Rs. 112.5 to dealers 781 00:40:17,640 --> 00:40:20,080 and distribution networks. 782 00:40:20,200 --> 00:40:22,800 It costs Rs. 38 to make it. 783 00:40:23,280 --> 00:40:26,880 25% is overhead expenses, which is Rs. 9.6. 784 00:40:26,960 --> 00:40:29,000 Packaging cost is Rs. 23. 785 00:40:29,080 --> 00:40:32,040 Our EBITDA is Rs. 41. 786 00:40:32,360 --> 00:40:35,080 Our margin is Rs. 25-Rs. 30. 787 00:40:37,240 --> 00:40:41,080 - Rs. 21. - Earning before income tax is Rs. 41. 788 00:40:41,160 --> 00:40:45,080 - Rs. 41. - Does this exclude your team's cost? 789 00:40:45,960 --> 00:40:46,800 Yes! 790 00:40:46,880 --> 00:40:48,280 Rs. 31 and not Rs. 41. 791 00:40:48,360 --> 00:40:49,640 You are left with Rs. 31. 792 00:40:49,720 --> 00:40:51,320 - Rs. 41. - You are left with Rs. 41? 793 00:40:51,400 --> 00:40:53,360 - Yes. Rs. 41. - Is your margin 40%? 794 00:40:53,920 --> 00:40:55,520 - Net margin. - No! Rs. 41 out of Rs. 225. 795 00:40:55,560 --> 00:40:58,040 EBITDA is 36.88%. 796 00:40:58,120 --> 00:41:01,240 - Our margin is 25%-30%. - The margin is 20%. 797 00:41:01,320 --> 00:41:02,720 - The margin is 20%. - Yes. 798 00:41:02,880 --> 00:41:05,320 Why are you saying 'yes'? You are agreeing to everything. 799 00:41:05,440 --> 00:41:06,640 I am confused. 800 00:41:07,960 --> 00:41:11,600 Are you calculating with Rs. 225 or Rs. 122.5? 801 00:41:11,680 --> 00:41:12,840 No, with Rs. 225. 802 00:41:12,960 --> 00:41:16,160 How much are you saying your margin is? 803 00:41:16,320 --> 00:41:18,360 Our margin is 25%-30%. 804 00:41:18,440 --> 00:41:20,400 So you take Rs. 41. 805 00:41:20,520 --> 00:41:23,240 Rs. 41 is EBITDA. 806 00:41:23,320 --> 00:41:25,480 - EBITDA is Rs. 41? - Yes. 807 00:41:25,560 --> 00:41:28,360 So, last year, give or take... 808 00:41:28,480 --> 00:41:29,640 - You made Rs. 15 lakhs. - Yes. 809 00:41:29,680 --> 00:41:32,200 - You made Rs. 15-Rs. 20 lakhs from this business. - Hmm! 810 00:41:32,280 --> 00:41:33,960 This does not include your salary. 811 00:41:34,040 --> 00:41:37,680 - You said you are doing this without drawing a salary. - Yes. 812 00:41:37,760 --> 00:41:41,080 So, tell us, you are already making Rs. 15 lakhs. 813 00:41:41,440 --> 00:41:43,840 And this year, you are claiming to do Rs. 5 crores 814 00:41:43,920 --> 00:41:45,560 and will you maintain the margin? 815 00:41:46,240 --> 00:41:48,920 - The margin will increase, sir. - The margin will increase. This means 816 00:41:48,960 --> 00:41:52,680 this year you will make Rs. 1-Rs.1.2 crores. 817 00:41:52,760 --> 00:41:55,560 Then why don't you shut down other businesses and focus on this? 818 00:41:55,680 --> 00:41:57,200 - Why are you arranging for money... - We are focused on this. 819 00:41:57,240 --> 00:41:58,400 No! You are not. 820 00:41:58,560 --> 00:42:00,000 You are not solely focussing on this. 821 00:42:00,040 --> 00:42:01,960 What did you say in the beginning? 822 00:42:02,120 --> 00:42:04,680 As far as I understand... The thing is... 823 00:42:04,760 --> 00:42:06,440 - Should I tell you the truth? - Yes. 824 00:42:06,520 --> 00:42:09,880 - I am confused about what I am confused about. - Okay. 825 00:42:09,960 --> 00:42:13,080 Because what you are saying doesn't make sense. 826 00:42:13,160 --> 00:42:14,920 I didn't understand the calculation. 827 00:42:15,040 --> 00:42:17,080 You went from 45 to 75. 828 00:42:17,160 --> 00:42:18,440 And then from 15 to 45. 829 00:42:18,520 --> 00:42:21,920 - You jumped 3x once and then your growth was 60%. - Hmm. 830 00:42:22,000 --> 00:42:24,760 Now, how will you go from Rs. 75 lakhs to Rs. 5 crores? 831 00:42:24,880 --> 00:42:27,240 8x growth. I don't get this. 832 00:42:27,320 --> 00:42:30,640 The orders we have are worth Rs. 2 crores. 833 00:42:30,720 --> 00:42:33,480 Do you have advance against all the orders? 834 00:42:33,560 --> 00:42:36,480 Yes, we take 20%-25% advance from them. 835 00:42:36,600 --> 00:42:38,480 25% advance of Rs. 2 crores. 836 00:42:38,560 --> 00:42:40,880 Yes! That means our orders have been processed. 837 00:42:41,000 --> 00:42:43,280 Once it is processed, we take the advance. 838 00:42:43,360 --> 00:42:45,480 - You have not received the advance yet. - We haven't. 839 00:42:46,600 --> 00:42:50,080 Friend, what I like the best about you 840 00:42:50,400 --> 00:42:52,560 is your logo. 841 00:42:52,720 --> 00:42:54,480 It's interesting and intriguing. 842 00:42:54,560 --> 00:42:58,760 With the cow on it, it tells you that the paint is natural. 843 00:42:58,960 --> 00:43:01,720 - It's simple thinking. As you mentioned, Mr. Mayur. - Yes. 844 00:43:01,800 --> 00:43:04,160 The way you spoke about marketing, 845 00:43:04,360 --> 00:43:05,600 I really appreciate it. 846 00:43:05,680 --> 00:43:09,640 But other than that, I don't understand anything else. 847 00:43:11,160 --> 00:43:13,920 How did you come up with the valuation 848 00:43:14,040 --> 00:43:17,320 and why are you asking for Rs. 3 crores 849 00:43:17,400 --> 00:43:19,200 without proving anything? 850 00:43:19,280 --> 00:43:21,760 - You did a business of Rs. 75 lakhs. - Hmm! 851 00:43:21,840 --> 00:43:25,200 - Rs. 5 crores is not yet a reality. - Hmm! 852 00:43:25,280 --> 00:43:27,480 Who will pay you for that right now? 853 00:43:27,560 --> 00:43:29,280 I didn't find anything 854 00:43:29,360 --> 00:43:32,400 that justifies the valuation, the ask, 855 00:43:32,480 --> 00:43:36,280 or the product. I want to be out. 856 00:43:37,720 --> 00:43:39,000 But I wish you the best. 857 00:43:39,120 --> 00:43:42,240 I hope you become a stat with the cow dung, but not with me. 858 00:43:44,720 --> 00:43:47,640 The distribution receives a white liquid. 859 00:43:47,760 --> 00:43:50,680 They have to create the exact tint with the card. 860 00:43:50,760 --> 00:43:55,440 So, in your product, building this network 861 00:43:56,120 --> 00:43:59,200 isn't that easy to crack in terms of distribution. 862 00:44:00,240 --> 00:44:02,840 I am not sure about the customers 863 00:44:02,960 --> 00:44:05,000 and the distribution side as well. 864 00:44:05,120 --> 00:44:07,200 There isn't a sense 865 00:44:07,280 --> 00:44:10,320 that you can crack it against the big players. 866 00:44:10,440 --> 00:44:14,000 So scaling becomes a huge question mark. 867 00:44:14,880 --> 00:44:17,440 I like you guys. You are from Pune. 868 00:44:17,520 --> 00:44:22,000 - Yes! - But because I am not sure 869 00:44:22,160 --> 00:44:24,600 I am out today. But prove me wrong. 870 00:44:25,000 --> 00:44:26,240 Thank you. 871 00:44:27,360 --> 00:44:30,800 I don't think the CMC's differentiation 872 00:44:39,400 --> 00:44:41,880 ...to create an end product. 873 00:44:42,000 --> 00:44:45,680 So, you need some innovation. 874 00:44:45,800 --> 00:44:48,880 We can't reach the end by only making 875 00:44:49,480 --> 00:44:51,000 a CMC product. 876 00:44:52,360 --> 00:44:53,400 For now, I feel 877 00:44:53,480 --> 00:44:56,640 that the fundamental questions answers are pending. 878 00:44:57,120 --> 00:44:58,560 For this reason, I am out. 879 00:45:00,680 --> 00:45:04,440 I can see a fundamental challenge in your business. I'll share it. 880 00:45:05,240 --> 00:45:07,960 Whenever I feel that the business is set... 881 00:45:08,040 --> 00:45:09,760 I almost had a deal for you. 882 00:45:09,840 --> 00:45:11,600 I wanted to give you an offer. 883 00:45:12,160 --> 00:45:13,760 But the issue was 884 00:45:13,880 --> 00:45:15,440 that you changed your answer 885 00:45:15,520 --> 00:45:17,040 in a few places. 886 00:45:17,120 --> 00:45:20,920 It could be that it's because you are nervous. 887 00:45:21,000 --> 00:45:25,520 You said you get 25% for Rs. 2 crores advance. 888 00:45:25,880 --> 00:45:28,600 Then you said that the advance is processing. 889 00:45:29,880 --> 00:45:33,080 Then you claimed that your margin is 25%-30%. 890 00:45:33,160 --> 00:45:36,040 And then you said Rs. 41. 891 00:45:36,160 --> 00:45:39,680 That is 20%. For that reason, I want to be out. 892 00:45:41,840 --> 00:45:44,480 Your team lacks a member who understands business. 893 00:45:44,920 --> 00:45:48,600 Mayur, you understand business. Okay? 894 00:45:48,760 --> 00:45:49,880 You run a business. 895 00:45:50,000 --> 00:45:52,120 He will do marketing, you will learn branding. 896 00:45:52,200 --> 00:45:55,280 You can hire an agency that will teach you this. 897 00:45:55,480 --> 00:45:56,560 You need one person 898 00:45:56,640 --> 00:45:59,080 who will explain the business to you. 899 00:45:59,160 --> 00:46:01,600 Someone who will teach business. Principle. 900 00:46:01,720 --> 00:46:03,800 Hire a CA. Okay? 901 00:46:03,880 --> 00:46:06,160 - Or CA... - He is asking for a job. 902 00:46:06,600 --> 00:46:08,320 [laughing] 903 00:46:09,360 --> 00:46:12,040 - Namita is free nowadays because of the IPO. - Why me? 904 00:46:12,160 --> 00:46:15,840 Okay! You hire a CA or someone who can teach you 905 00:46:15,920 --> 00:46:17,520 how to run an ethical business. 906 00:46:18,800 --> 00:46:21,920 Okay? You need to have a hold on business numbers. 907 00:46:22,000 --> 00:46:25,200 You must become strong players in your business. 908 00:46:25,280 --> 00:46:27,800 Because you need to know the numbers and what is happening, 909 00:46:27,880 --> 00:46:29,960 what are you headed for and what valuation to ask. 910 00:46:30,920 --> 00:46:32,680 Your pitch was good. 911 00:46:32,760 --> 00:46:34,480 Your product is also good. 912 00:46:34,560 --> 00:46:38,200 I differ with Anupam and Kunal here. 913 00:46:38,280 --> 00:46:42,000 If you have 1% and they have 5%, so 1% is still better than 5%. 914 00:46:43,480 --> 00:46:46,040 So, I think your product is something. 915 00:46:46,120 --> 00:46:49,200 Your marketing is good. Your pitch went bad 916 00:46:49,280 --> 00:46:50,960 because you don't have a hold on numbers. 917 00:46:51,920 --> 00:46:55,360 The business number and your ask are not in place. 918 00:46:55,800 --> 00:46:58,080 A CA will be really helpful I believe. 919 00:46:58,160 --> 00:46:59,720 So, unfortunately, I am out. 920 00:47:02,240 --> 00:47:03,720 - All the best. - Thanks, Anupam. 921 00:47:03,840 --> 00:47:04,880 Thank you! 922 00:47:09,720 --> 00:47:11,760 Should I tell you a secret? 923 00:47:17,400 --> 00:47:19,880 I don't know what PAT, B2B 924 00:47:19,960 --> 00:47:22,800 and ROI are. They didn't exist in my syllabus. 925 00:47:23,120 --> 00:47:25,920 It should feel like I know something 926 00:47:26,000 --> 00:47:28,760 when I stand with the Sharks and the pitchers. I need to read up. 927 00:47:29,080 --> 00:47:30,800 I was thinking I should do my homework. 928 00:47:30,920 --> 00:47:34,880 Study and have an office set up so that I can study. 929 00:47:35,160 --> 00:47:37,040 I'll order things from Swiggy Instamart 930 00:47:37,160 --> 00:47:38,520 and it will be delivered in 10 minutes. 931 00:47:38,520 --> 00:47:39,920 I know what to order. 932 00:47:40,240 --> 00:47:42,200 First, stationary items. 933 00:47:43,000 --> 00:47:45,560 Hmm! Yes. 934 00:47:45,920 --> 00:47:47,520 One pen stand. 935 00:47:48,240 --> 00:47:51,120 Okay! Notebooks. 936 00:47:51,880 --> 00:47:55,840 I have to revise old pitches. So, I will buy a phone stand. 937 00:47:56,160 --> 00:47:57,520 Phone stand. 938 00:47:57,760 --> 00:48:00,960 I won't be able to study if I am hungry. So something to munch on. 939 00:48:01,320 --> 00:48:03,000 I love cookies. 940 00:48:03,280 --> 00:48:07,000 Cookies! And... Done! 941 00:48:07,080 --> 00:48:09,480 Order placed. It will be delivered in 10 minutes. 942 00:48:09,600 --> 00:48:11,880 You go and study. 943 00:48:11,960 --> 00:48:14,720 Who will bring things? Swiggy Instamart. Order now. 944 00:48:24,120 --> 00:48:25,560 [theme music playing] 945 00:48:50,800 --> 00:48:52,000 Hello, Sharks! 946 00:48:58,560 --> 00:49:02,360 And we are the co-founders of Goodland Pickleball. 947 00:49:04,040 --> 00:49:05,800 What is pickleball? 948 00:49:05,880 --> 00:49:07,360 Sharks, imagine 949 00:49:07,480 --> 00:49:09,640 that there is a badminton court, 950 00:49:09,960 --> 00:49:11,520 table tennis paddles, 951 00:49:11,600 --> 00:49:13,280 and a lawn tennis net. 952 00:49:13,360 --> 00:49:16,160 This is a cocktail, pickleball. 953 00:49:16,240 --> 00:49:19,160 This is the world's fastest-growing sport. 954 00:49:19,240 --> 00:49:22,640 In India, the number of courts has risen from 955 00:49:23,080 --> 00:49:24,200 50 to 500 in just one year. 956 00:49:36,000 --> 00:49:39,120 That's where Goodland Pickleball comes into the picture. 957 00:49:39,600 --> 00:49:43,240 We are a one-stop solution where we build courts, 958 00:49:43,360 --> 00:49:45,280 we have an equipment line, 959 00:49:52,680 --> 00:49:56,680 ...is the number one-selling pickleball net in India right now. 960 00:49:57,240 --> 00:49:58,840 You can book our courts 961 00:49:58,880 --> 00:50:01,360 with our booking facility. 962 00:50:01,480 --> 00:50:03,720 We are also offering memberships. 963 00:50:07,720 --> 00:50:10,160 This is the fastest-growing sport in the world. 964 00:50:10,240 --> 00:50:14,080 And we are the fastest-growing brand from India to the world. 965 00:50:14,200 --> 00:50:16,320 We want you to be a part of this growth. 966 00:50:16,400 --> 00:50:20,880 So, Sharks, our ask is Rs. 80 lakhs for 4% equity. 967 00:50:30,120 --> 00:50:31,640 Anupam, catch! 968 00:50:32,640 --> 00:50:33,640 There we go! 969 00:50:33,720 --> 00:50:35,840 Sharks, we will do a quick demo. 970 00:50:35,960 --> 00:50:38,280 Aman and Anupam, are you guys ready to play? 971 00:50:38,360 --> 00:50:39,480 Oh yeah! 972 00:50:39,600 --> 00:50:41,600 This is like tennis. 973 00:50:54,800 --> 00:50:58,280 The ball bounced beyond the green line, that is legal. 974 00:51:13,520 --> 00:51:14,760 So, you will be in my team. 975 00:51:14,880 --> 00:51:16,600 - Take this paddle. - Wow, we are doing doubles. 976 00:51:16,600 --> 00:51:18,600 - Yeah! - Who is American and who is Indian? 977 00:51:18,720 --> 00:51:21,320 - He's American. - India versus America. Let's do this. 978 00:51:21,440 --> 00:51:23,040 Brooklyn versus Mumbai. 979 00:51:26,080 --> 00:51:28,600 We'll play a game where the first to score three points wins. 980 00:51:29,600 --> 00:51:30,600 Perfect! 981 00:51:33,120 --> 00:51:35,120 - Out! - They won a point. 982 00:51:35,200 --> 00:51:37,240 - Come on, bro! Are we ready? - Do it! 983 00:51:39,880 --> 00:51:42,000 - All right! - Ace, bro! 984 00:51:46,040 --> 00:51:47,840 - Let it bounce. - Hit it. 985 00:51:48,080 --> 00:51:49,120 Come on! 986 00:51:52,880 --> 00:51:54,640 - You! - Go ahead. 987 00:51:57,840 --> 00:52:00,160 Let's do it! 988 00:52:00,240 --> 00:52:02,000 - We have a winner. - Team Brooklyn! 989 00:52:02,560 --> 00:52:04,560 Mumbai lost! 990 00:52:04,800 --> 00:52:06,080 Did Mumbai lose? 991 00:52:06,160 --> 00:52:07,440 - I lost. - It's okay. 992 00:52:07,600 --> 00:52:10,240 - It's okay, we were... - Better luck next time! 993 00:52:10,440 --> 00:52:12,160 You played badly. 994 00:52:15,760 --> 00:52:19,240 So, Hemant and Yogesh, welcome to Shark Tank Season 4. 995 00:52:19,880 --> 00:52:22,600 Watching the game was fun. 996 00:52:22,680 --> 00:52:23,920 I'll tell you as a mother, 997 00:52:24,080 --> 00:52:25,560 nowadays, children 998 00:52:25,680 --> 00:52:29,320 are glued to the TV and video games. So, I love anything 999 00:52:29,440 --> 00:52:32,040 that compels them to leave their house 1000 00:52:32,120 --> 00:52:34,440 and makes them get their heart rate up. 1001 00:52:34,520 --> 00:52:36,080 So, thank you for doing that. 1002 00:52:36,160 --> 00:52:39,240 Tell me a little bit about pickleball's history. 1003 00:52:39,320 --> 00:52:41,880 And why is it picking up all of a sudden? 1004 00:52:41,960 --> 00:52:46,400 - Pickleball started in the 1950s in Seattle. - Wow! 1005 00:52:47,360 --> 00:52:49,360 In the last 40-60 years, 1006 00:52:49,440 --> 00:52:51,320 it has become a dormant sport. 1007 00:52:51,400 --> 00:52:55,240 It was played at a niche level by a few thousand players. 1008 00:52:55,320 --> 00:52:57,800 People in North America were mostly playing this sport. 1009 00:52:57,880 --> 00:52:59,400 - In the USA and Canada. - Okay. 1010 00:52:59,480 --> 00:53:01,840 So, what happened after COVID 1011 00:53:01,920 --> 00:53:05,120 was that you couldn't play contact sports. 1012 00:53:05,200 --> 00:53:07,880 So, this was a socially distanced sport. 1013 00:53:08,160 --> 00:53:10,640 So, in 2020-2021, 1014 00:53:10,720 --> 00:53:14,400 pickleball started seeing widespread popularity. 1015 00:53:14,600 --> 00:53:16,160 Right now, 1016 00:53:16,240 --> 00:53:18,280 we have leagues. 1017 00:53:18,360 --> 00:53:20,680 So, there is a league called PPA, 1018 00:53:20,760 --> 00:53:22,600 which is similar to ATP. 1019 00:53:22,680 --> 00:53:24,680 - Ah! - There they have tournaments 1020 00:53:24,800 --> 00:53:26,200 literally every day. 1021 00:53:26,280 --> 00:53:28,400 They have tournaments every week. 1022 00:53:28,480 --> 00:53:30,680 Why is it called pickleball? 1023 00:53:30,800 --> 00:53:32,440 Going back to 1950. 1024 00:53:32,520 --> 00:53:35,360 The owner's dog's name was Pickle. 1025 00:53:35,480 --> 00:53:37,560 [laughing] 1026 00:53:37,640 --> 00:53:40,600 When the ball was near his dog, he used to say, 'Pickle, ball!'. 1027 00:53:40,680 --> 00:53:43,640 - So, that is one of the theories. - But that's so funny! 1028 00:53:43,760 --> 00:53:47,480 Do you know it has a brother or sister sport called Padel? 1029 00:53:47,560 --> 00:53:49,600 - Yes! - I am addicted to Padel. 1030 00:53:49,680 --> 00:53:52,560 Once you get a hook of it, it stays. 1031 00:53:52,640 --> 00:53:54,960 - What is the difference between them? I don't know. - I'll tell you. 1032 00:53:55,000 --> 00:53:57,800 They are both competitors of tennis. 1033 00:53:57,880 --> 00:54:01,040 The difference is that pickleball is the size of a badminton court, 1034 00:54:01,160 --> 00:54:03,440 which is 1/4th the size of a tennis court. 1035 00:54:03,520 --> 00:54:06,960 And the padel court is slightly bigger than a pickleball court. 1036 00:54:07,040 --> 00:54:09,520 Padel courts are expensive to make. 1037 00:54:09,600 --> 00:54:13,320 Because it costs approximately Rs. 20 lakhs to make a padel court. 1038 00:54:13,400 --> 00:54:14,680 What about the pickleball court? 1039 00:54:21,520 --> 00:54:24,680 sell equipment and we have clubs. 1040 00:54:24,760 --> 00:54:26,640 Do you have photos of your club? 1041 00:54:26,720 --> 00:54:28,480 - Yes. - Show it to us. 1042 00:54:33,120 --> 00:54:35,920 20 by 44, it is the exact size of the badminton court. 1043 00:54:36,000 --> 00:54:38,000 - You've made three courts here. - Yeah! 1044 00:54:38,080 --> 00:54:39,320 Okay! Show us more. 1045 00:54:39,400 --> 00:54:41,920 That one is our club in Brooklyn. 1046 00:54:42,680 --> 00:54:44,120 - It's in New York. - Brooklyn? 1047 00:54:44,240 --> 00:54:46,000 - Yes, New York. - Do you have courts abroad as well? 1048 00:54:46,000 --> 00:54:48,760 - Yeah! We have a big business in the US. - Oh! 1049 00:54:50,360 --> 00:54:51,960 This is an outdoor court. 1050 00:54:52,080 --> 00:54:54,160 We started it four months ago. 1051 00:54:54,240 --> 00:54:56,040 We already have 2,200... 1052 00:54:56,120 --> 00:54:57,600 Why are you on Shark Tank India? 1053 00:54:59,480 --> 00:55:01,680 Because we have a very big India business also. 1054 00:55:01,800 --> 00:55:04,440 You just said you have a very big US business also. 1055 00:55:05,160 --> 00:55:06,400 Give us a background. 1056 00:55:06,480 --> 00:55:08,960 How did this start and how did you come up with the idea? 1057 00:55:09,040 --> 00:55:11,240 My primary residence is in New York City. 1058 00:55:11,320 --> 00:55:13,920 When we were here last May, I wanted to play pickleball 1059 00:55:14,040 --> 00:55:16,480 just for fun and not with the intention of starting a business. 1060 00:55:16,480 --> 00:55:17,720 We didn't get pickleball courts. 1061 00:55:17,760 --> 00:55:21,840 There was a tennis court in Yogesh's building, where we started playing. 1062 00:55:22,000 --> 00:55:24,400 The children started playing with us too. 1063 00:55:24,480 --> 00:55:26,200 In the US, I saw the growth. 1064 00:55:26,280 --> 00:55:30,360 Usually, whatever is trending in the US is introduced here. 1065 00:55:30,520 --> 00:55:32,080 We are cousins. 1066 00:55:32,240 --> 00:55:34,920 Ours was a third-generation construction business. 1067 00:55:35,000 --> 00:55:37,560 So, court construction was a natural transition for us. 1068 00:55:38,000 --> 00:55:40,600 And I also want to spend time with my family here. 1069 00:55:40,720 --> 00:55:42,440 My parents are getting older. 1070 00:55:42,520 --> 00:55:43,800 Which is why I wanted to set it up here. 1071 00:55:43,840 --> 00:55:47,240 I trusted Yogesh as a co-founder of this business. 1072 00:55:48,040 --> 00:55:51,360 Are you here for money for your business in India or the US? 1073 00:55:51,440 --> 00:55:52,480 For Indian business. 1074 00:55:57,880 --> 00:56:00,120 - New York... - The first entity is exclusively yours. 1075 00:56:00,200 --> 00:56:01,280 Yes, 100%. 1076 00:56:01,360 --> 00:56:03,360 - And both of you are in the second entity. - Both. 1077 00:56:03,400 --> 00:56:04,560 - 50-50. - 50-50. 1078 00:56:04,640 --> 00:56:07,440 What does the equity split look like in a combined entity? 1079 00:56:07,520 --> 00:56:09,200 83% and 17% will be his. 1080 00:56:09,320 --> 00:56:13,360 Will the merged entity be an India-based or a US-based company? 1081 00:56:28,040 --> 00:56:29,360 - ...between the two companies. - Correct. 1082 00:56:29,360 --> 00:56:30,880 Is that how it will be? 1083 00:56:32,280 --> 00:56:35,560 But you will get the equity in the global company. 1084 00:56:35,760 --> 00:56:37,880 It is not a global company. 1085 00:56:38,720 --> 00:56:40,800 I will have to talk to the legal person. 1086 00:56:40,880 --> 00:56:42,720 But it will be lucrative to the investor. 1087 00:56:42,800 --> 00:56:45,240 We need to understand 1088 00:56:45,320 --> 00:56:47,360 if there will be one entity. 1089 00:56:47,560 --> 00:56:51,160 Your share will be 83% and his share will be 17%. 1090 00:56:51,240 --> 00:56:53,080 - We will invest in that. - Yes. 1091 00:56:53,160 --> 00:56:56,200 Whether it is in the US or India, determining that is still pending. 1092 00:56:56,280 --> 00:56:58,520 - How you will merge is yet to be determined. - Yes. 1093 00:56:58,600 --> 00:56:59,720 - Is that fair? - Exactly! 1094 00:56:59,800 --> 00:57:01,320 Okay, thank you! 1095 00:57:01,600 --> 00:57:04,400 Yogesh and Hemant, a lot of clubs are being constructed. 1096 00:57:04,480 --> 00:57:06,280 There will be a lot of supply in the future, 1097 00:57:06,360 --> 00:57:08,720 because it's not a difficult one to make, right? 1098 00:57:09,000 --> 00:57:11,240 So, why should I invest in Goodland? 1099 00:57:11,320 --> 00:57:12,640 We are creating the brand. 1100 00:57:12,760 --> 00:57:15,640 The decision of whether people will go to Raju's Pickleball Club 1101 00:57:15,720 --> 00:57:17,720 or Goodland's branded club 1102 00:57:17,800 --> 00:57:19,640 is something we've already considered. 1103 00:57:19,760 --> 00:57:21,880 We haven't worked on it yet, but it's in the pipeline. 1104 00:57:22,120 --> 00:57:24,400 The courts that are being constructed, as you said, 1105 00:57:24,480 --> 00:57:27,120 we get inquiries to make the court 1106 00:57:27,200 --> 00:57:28,800 or people buy nets from us. 1107 00:57:28,920 --> 00:57:33,080 As we mentioned, there are 500 pickleball clubs, 1108 00:57:33,280 --> 00:57:36,360 and out of that, we've supplied 250 nets. 1109 00:57:36,480 --> 00:57:40,120 I understood, Hemant. But the thing is, when someone is in India, 1110 00:57:40,400 --> 00:57:42,120 let's take Raju for example. 1111 00:57:42,240 --> 00:57:44,480 Raju is a smart businessman. 1112 00:57:44,600 --> 00:57:46,600 Raju will have 100% equity. 1113 00:57:46,680 --> 00:57:48,040 Raju is passionate. 1114 00:57:48,160 --> 00:57:49,840 He will be fast. 1115 00:57:49,960 --> 00:57:52,400 When you wake up, the client will be asleep. 1116 00:57:52,680 --> 00:57:55,760 There will be a time difference between you and your client. 1117 00:57:55,840 --> 00:57:57,760 So, Raju will make courts fast, 1118 00:57:58,520 --> 00:58:00,880 you won't. He can speed up. 1119 00:58:01,000 --> 00:58:02,800 People like Raju 1120 00:58:02,920 --> 00:58:05,200 don't make actual courts. 1121 00:58:05,320 --> 00:58:08,640 - They just draw lines and... - No! 1122 00:58:11,080 --> 00:58:13,720 It's not that difficult to make this court. 1123 00:58:15,120 --> 00:58:18,200 Making quality courts is difficult. 1124 00:58:20,040 --> 00:58:22,880 Do you mostly own clubs, rent them, 1125 00:58:22,960 --> 00:58:24,640 or operate them on a revenue-sharing model? 1126 00:58:24,920 --> 00:58:26,920 We take it on rent from landlords. 1127 00:58:31,440 --> 00:58:35,800 You mentioned that it costs you Rs. 2-Rs. 5 lakhs to make one court. 1128 00:58:35,880 --> 00:58:37,760 In India. Just one clarification. 1129 00:58:37,840 --> 00:58:42,000 When we make courts for others, that is how much we will charge them. 1130 00:58:50,360 --> 00:58:52,200 And how long does the payback period take? 1131 00:58:52,280 --> 00:58:54,320 It usually takes 4-5 months. 1132 00:58:54,880 --> 00:58:56,400 How many courts are in one club? 1133 00:58:56,480 --> 00:58:58,240 Depending on the size we get, 1134 00:58:58,320 --> 00:59:00,560 we can make 3-6 courts. 1135 00:59:00,960 --> 00:59:03,280 What else takes place in these courts? 1136 00:59:03,360 --> 00:59:05,920 Are there only 3-5 courts of pickleball 1137 00:59:06,040 --> 00:59:10,880 or do you have a padel court and a cafe? 1138 00:59:11,160 --> 00:59:12,360 It is dedicated to pickleball. 1139 00:59:12,440 --> 00:59:14,960 - Only dedicated pickleball? - That's' our brand differentiator. 1140 00:59:17,560 --> 00:59:19,480 We don't want to enter the cafe business 1141 00:59:19,560 --> 00:59:21,360 because that's a food and beverage business. 1142 00:59:21,440 --> 00:59:23,440 - Play and go home. That is your plan. - No! 1143 00:59:23,640 --> 00:59:25,040 Play, stay and hang out. 1144 00:59:25,120 --> 00:59:26,120 - Build a community. - Hang out where? 1145 00:59:26,160 --> 00:59:27,160 You are not catering to that. 1146 00:59:27,200 --> 00:59:29,360 You said you don't want to get into the food business. 1147 00:59:29,440 --> 00:59:31,480 We won't operate a food business. 1148 00:59:31,560 --> 00:59:33,840 But we can outsource it to an operator. 1149 00:59:33,920 --> 00:59:36,240 I think a lot of things are unclear to you. 1150 00:59:36,400 --> 00:59:37,960 You are still figuring out. That's fair. 1151 00:59:38,080 --> 00:59:40,360 It has been 9 months. 1152 00:59:40,440 --> 00:59:41,520 What is your pricing? 1153 00:59:41,600 --> 00:59:42,720 Who can play this sport? 1154 00:59:42,800 --> 00:59:44,680 - Paddles... - In a country like India. 1155 00:59:45,280 --> 00:59:48,840 The beginner-level paddles cost Rs. 2,500. 1156 00:59:48,920 --> 00:59:50,480 - Rental. You... - Per hour. 1157 00:59:50,560 --> 00:59:52,360 - How much do you charge for an hour? - Rental per hour booking. 1158 00:59:52,360 --> 00:59:55,600 Per hour we charge Rs. 600-Rs. 700 1159 00:59:55,680 --> 00:59:57,680 for up to 4-6 people. 1160 00:59:57,800 --> 01:00:01,240 But in our membership model, the price will be fixed. 1161 01:00:01,320 --> 01:00:02,600 It will be Rs. 5,000. 1162 01:00:02,680 --> 01:00:04,560 - Rs. 5,000 per year? - Per month. 1163 01:00:05,320 --> 01:00:06,920 What is your revenue in 9 months 1164 01:00:07,000 --> 01:00:08,960 and break it down separately for India and the US? 1165 01:00:09,400 --> 01:00:12,440 Rs. 1.9 crores, total sales in nine months. 1166 01:00:12,520 --> 01:00:14,920 Out of that the revenue in the US is Rs. 1.2 crores 1167 01:00:15,080 --> 01:00:17,120 and India's revenue is Rs. 70 lakhs. 1168 01:00:17,720 --> 01:00:19,840 Can you explain the unit economics? 1169 01:00:19,920 --> 01:00:22,680 25% goes in rent. 1170 01:00:23,240 --> 01:00:25,040 20% in staffing. 1171 01:00:25,160 --> 01:00:27,880 - Because the cost is high in the US. - That's right. 1172 01:00:28,040 --> 01:00:30,000 After that, there is software 1173 01:00:30,080 --> 01:00:32,120 and maintenance is 5%. 1174 01:00:32,200 --> 01:00:34,960 - You are saying your margins are 50%. - It's 50%. 1175 01:00:35,080 --> 01:00:38,920 What is the split between the usage of the courts... 1176 01:00:39,200 --> 01:00:41,480 You also construct courts for people 1177 01:00:41,560 --> 01:00:44,040 and sell merchandise. What is the split of these three? 1178 01:00:44,720 --> 01:00:48,640 In the US it's Rs. 1.2 crores. That's the revenue of the club. 1179 01:00:48,720 --> 01:00:49,880 It's a membership model. 1180 01:00:50,000 --> 01:00:52,160 We don't sell equipment there. 1181 01:00:52,240 --> 01:00:54,040 - How many clubs do you have in the US? - One. 1182 01:00:54,040 --> 01:00:56,680 - Just one. Okay! - We signed the lease for the second one. 1183 01:00:56,760 --> 01:00:58,960 What makes the revenue of Rs. 70 lakhs? 1184 01:00:59,040 --> 01:01:01,240 Rs. 40 lakhs from court construction 1185 01:01:01,360 --> 01:01:03,160 and Rs. 30 lakhs from equipment. 1186 01:01:03,240 --> 01:01:05,880 It includes paddles, balls and nets. 1187 01:01:09,440 --> 01:01:11,000 ...that is run by you. 1188 01:01:12,160 --> 01:01:13,440 - We are in negotiation. - Negotiation. 1189 01:01:13,440 --> 01:01:15,800 It hasn't been finalised. We've been trying. 1190 01:01:15,880 --> 01:01:17,360 How much will you make by the end of this year? 1191 01:01:17,360 --> 01:01:18,240 Rs. 2.7 crores. 1192 01:01:18,320 --> 01:01:20,320 In Rs. 2.7 crores, how much will you make in India? 1193 01:01:27,760 --> 01:01:30,440 in total revenue in the US and India. 1194 01:01:30,560 --> 01:01:32,680 In the next three years, we want to get to Rs. 50 crores. 1195 01:01:32,720 --> 01:01:33,720 That's the goal. 1196 01:01:34,280 --> 01:01:35,520 How are you going to market it 1197 01:01:35,680 --> 01:01:37,640 so that more people start playing pickleball? 1198 01:01:37,720 --> 01:01:41,320 Customer acquisition in this case is happening through word of mouth. 1199 01:01:41,440 --> 01:01:42,440 In the US... 1200 01:01:42,520 --> 01:01:44,600 I will give you an example of what is happening there. 1201 01:01:44,640 --> 01:01:45,920 We run targeted Instagram ads 1202 01:01:46,000 --> 01:01:48,760 in areas where we opened our clubs. 1203 01:01:48,840 --> 01:01:51,000 We create very high-quality content. 1204 01:01:51,080 --> 01:01:53,960 That is actually our big differentiator and our moat. 1205 01:01:54,040 --> 01:01:57,920 People copy our content, that is our reels and videos. 1206 01:01:58,000 --> 01:02:01,600 Hemant, I want to interrupt you. 1207 01:02:11,600 --> 01:02:13,040 Cost. 1208 01:02:13,280 --> 01:02:14,280 No! 1209 01:02:15,560 --> 01:02:18,720 Ford and GM assumed that what works in America 1210 01:02:18,800 --> 01:02:20,520 would work for Indian consumers too. 1211 01:02:20,600 --> 01:02:22,960 Whereas Hyundai and Kia took the time 1212 01:02:23,080 --> 01:02:26,400 to understand the dynamics of India 1213 01:02:26,520 --> 01:02:27,920 and how the consumer thinks. 1214 01:02:28,000 --> 01:02:31,520 And then they gave them a product that works for India. 1215 01:02:33,520 --> 01:02:36,680 My biggest concern is 1216 01:02:36,760 --> 01:02:38,480 that you live in New York, 1217 01:02:38,560 --> 01:02:41,240 and your vision is that 2/3rd income will come from there. 1218 01:02:41,320 --> 01:02:44,880 And you want to copy and paste what works in the US in India. 1219 01:02:45,560 --> 01:02:47,800 When you came here, I was excited. 1220 01:02:47,880 --> 01:02:51,120 I get excited about anything to do with health and fitness. 1221 01:02:51,200 --> 01:02:53,080 - I want people to be healthy. - Yeah. 1222 01:02:53,160 --> 01:02:57,560 But you are all over the place. 1223 01:02:58,440 --> 01:03:00,240 And for that reason, I am out. 1224 01:03:02,400 --> 01:03:05,560 What is the model of the biggest pickleball company in the US? 1225 01:03:06,240 --> 01:03:08,520 Basically, they run clubs 1226 01:03:08,600 --> 01:03:12,280 and partner with organisers of tournaments. 1227 01:03:12,360 --> 01:03:14,520 So, the model is clear. 1228 01:03:14,600 --> 01:03:16,200 You are still doing things 1229 01:03:16,320 --> 01:03:19,160 in an opportunistic way when it comes to pickleball. 1230 01:03:22,160 --> 01:03:27,040 when you make a replicable, clear and focussed model. 1231 01:03:27,240 --> 01:03:30,760 Whether it is clubs or equipment. 1232 01:03:32,120 --> 01:03:34,280 I think the model is very confusing. 1233 01:03:34,400 --> 01:03:37,240 You need more clarity. Do this for a few more years. 1234 01:03:37,320 --> 01:03:39,000 Until then, I am out. Good luck. 1235 01:03:39,080 --> 01:03:40,360 - Thank you, Anupam. - Thank you. 1236 01:03:46,680 --> 01:03:49,640 You have 6-7 variables and all are moving parts. 1237 01:03:49,720 --> 01:03:53,080 Will you focus more on building the business in the US or India, 1238 01:03:53,200 --> 01:03:54,480 and what will it be? 1239 01:03:54,560 --> 01:03:57,360 There has to be clarity. I am not saying something is right or wrong. 1240 01:03:57,440 --> 01:03:59,240 But you need to have clarity. 1241 01:03:59,320 --> 01:04:02,280 Because your model is completely clear 1242 01:04:02,480 --> 01:04:03,760 I am out because of that. 1243 01:04:03,920 --> 01:04:05,320 - Thank you so much. - Thank you. 1244 01:04:05,680 --> 01:04:07,440 Hemant and Yogesh, 1245 01:04:14,000 --> 01:04:15,640 Your execution was also good. 1246 01:04:15,720 --> 01:04:19,320 - Whatever I saw was high quality. - Thank you. 1247 01:04:19,400 --> 01:04:20,880 Your logo is of high quality. 1248 01:04:21,680 --> 01:04:22,920 The imagery is of high quality. 1249 01:04:22,960 --> 01:04:25,920 Your products are of a high quality. 1250 01:04:26,120 --> 01:04:27,360 There is a sense of 1251 01:04:27,480 --> 01:04:31,080 - quality in whatever you're doing. - Yeah. 1252 01:04:31,160 --> 01:04:34,360 - That's an excellent habit for founders. - Thank you. 1253 01:04:34,720 --> 01:04:36,480 But if I were in your place, 1254 01:04:36,560 --> 01:04:39,080 I would focus on expanding in the USA 1255 01:04:39,480 --> 01:04:41,280 instead of doing something in India, 1256 01:04:41,360 --> 01:04:42,840 like selling merchandise, 1257 01:04:42,920 --> 01:04:45,880 or making a court for someone who gives you money. 1258 01:04:46,000 --> 01:04:47,560 That is a distraction. 1259 01:04:48,280 --> 01:04:50,600 Excellence comes with focus. 1260 01:04:50,680 --> 01:04:52,800 I am out for some of these reasons. 1261 01:04:52,960 --> 01:04:53,960 - Thank you. - Thank you. 1262 01:04:55,040 --> 01:04:56,680 - Aman! - Ahem! 1263 01:04:56,800 --> 01:04:58,640 We're coming to you now. We've won the game. 1264 01:04:58,680 --> 01:05:00,520 [laughing] 1265 01:05:00,640 --> 01:05:03,280 - I always win, bro. - That was the challenge. 1266 01:05:03,360 --> 01:05:05,960 Do you know what you have here? 1267 01:05:06,680 --> 01:05:08,760 You have the first-mover advantage. 1268 01:05:09,440 --> 01:05:11,120 That advantage doesn't stay for long. 1269 01:05:12,080 --> 01:05:13,840 You've made a brand, Goodland. 1270 01:05:14,320 --> 01:05:16,480 You're making various equipment in India. 1271 01:05:16,560 --> 01:05:18,480 Why can't you double down on it? 1272 01:05:19,880 --> 01:05:20,760 We've done it. 1273 01:05:20,880 --> 01:05:23,880 We are the number one seller of nets in India right now. 1274 01:05:23,960 --> 01:05:26,080 We've doubled up the production in the last month. 1275 01:05:29,440 --> 01:05:32,200 Our price is the best right now in the market. 1276 01:05:32,280 --> 01:05:35,200 The next comparable rate is Rs 24,000. 1277 01:05:35,280 --> 01:05:36,600 From Rs 7,000 to Rs 24,000! 1278 01:05:40,160 --> 01:05:41,600 It has only been nine months. 1279 01:05:41,720 --> 01:05:44,080 - We are in the process of doing it. - Are you building it? 1280 01:05:44,200 --> 01:05:44,920 Yeah. 1281 01:05:45,040 --> 01:05:46,960 Okay. How will you catch up with Raju? 1282 01:05:48,080 --> 01:05:49,840 Brands like Raju 1283 01:05:49,960 --> 01:05:52,520 have approached us from a few cities. 1284 01:05:52,600 --> 01:05:56,080 It is working. It's taking time, but it will happen. 1285 01:05:56,280 --> 01:05:57,400 I will give you an offer. 1286 01:05:59,360 --> 01:06:00,360 I have two conditions. 1287 01:06:00,440 --> 01:06:03,240 First, Hemant, you have to spend 1288 01:06:03,360 --> 01:06:05,120 six months in India, 1289 01:06:05,200 --> 01:06:07,560 because you are the driver of this business. 1290 01:06:08,200 --> 01:06:10,120 My second condition is 1291 01:06:10,200 --> 01:06:11,880 to open the club you're talking about soon. 1292 01:06:11,880 --> 01:06:14,400 That has to be a world-class club. 1293 01:06:14,480 --> 01:06:15,920 Once you open a club, 1294 01:06:16,000 --> 01:06:19,240 people will wish to open clubs like that 1295 01:06:19,320 --> 01:06:22,000 all over. India is growing like crazy. 1296 01:06:22,080 --> 01:06:24,600 Aman, can you give them the date for the second condition? 1297 01:06:24,720 --> 01:06:26,760 That way, they can put it down. 1298 01:06:26,840 --> 01:06:27,840 Next two months? 1299 01:06:27,880 --> 01:06:29,120 Two months. Okay? 1300 01:06:29,200 --> 01:06:30,760 - Yes. - All right? - Perfect. 1301 01:06:31,040 --> 01:06:34,080 I'll make you an offer of Rs 80 lakhs for 5 per cent, 1302 01:06:35,200 --> 01:06:37,000 plus I will take a royalty 1303 01:06:37,640 --> 01:06:40,320 of 1 per cent until I get my Rs 80 lakhs back. 1304 01:06:47,440 --> 01:06:49,840 [tense music playing] 1305 01:06:50,400 --> 01:06:51,440 The royalty is an issue. 1306 01:07:01,760 --> 01:07:03,120 ...can we do 1307 01:07:03,200 --> 01:07:06,360 0.5 per cent in royalty? 1308 01:07:06,440 --> 01:07:09,160 We can give you 6 per cent in equity. 1309 01:07:14,480 --> 01:07:16,160 - It's a fair deal. - Okay. 1310 01:07:16,240 --> 01:07:17,440 - I agree. - The deal is final. 1311 01:07:27,400 --> 01:07:28,640 [camera shutter clicking] 1312 01:07:30,600 --> 01:07:32,320 Let's try to understand the Indian consumer. 1313 01:07:32,360 --> 01:07:34,800 You have to spend some time. Do it. 1314 01:07:34,920 --> 01:07:35,760 - We'll do it. - It will be done. 1315 01:07:35,880 --> 01:07:36,920 - Thank you so much. - All the best, guys. 1316 01:07:36,920 --> 01:07:38,960 - Thanks. - Thank you so much. - God bless you. 1317 01:07:43,280 --> 01:07:45,840 [triumphant music playing] 1318 01:07:49,600 --> 01:07:50,920 Hello, Hemant and Yogesh. 1319 01:07:51,000 --> 01:07:52,920 Welcome to the PokerBaazi Zone. 1320 01:07:53,000 --> 01:07:54,000 Have you played poker? 1321 01:07:54,160 --> 01:07:55,240 A couple of times. 1322 01:07:59,520 --> 01:08:02,040 determines a sequence. Correct? 1323 01:08:29,920 --> 01:08:32,440 According to you, 1324 01:08:32,560 --> 01:08:34,280 what would be your top five? 1325 01:08:34,400 --> 01:08:38,560 First is our product. It is unique and trendy. 1326 01:08:38,960 --> 01:08:40,200 Trendy and sustainable! 1327 01:08:40,280 --> 01:08:41,800 - Trendy and sustainable! - Yes. 1328 01:08:42,440 --> 01:08:44,160 Then, you have to market it. 1329 01:08:44,280 --> 01:08:46,600 - People should know what it is. - Okay. 1330 01:08:47,000 --> 01:08:49,760 After that, operations and logistics. 1331 01:08:49,840 --> 01:08:52,280 Sales will be after that. 1332 01:08:53,320 --> 01:08:54,640 The last one is strategy 1333 01:08:54,720 --> 01:08:56,800 because we are coming as an opportunist. 1334 01:09:25,000 --> 01:09:27,440 download PokerBaazi and make your winning hand. 1335 01:09:27,520 --> 01:09:29,040 Go and download the app now. 1336 01:10:34,760 --> 01:10:36,560 See you in the next Ask the Shark 1337 01:10:36,680 --> 01:10:38,480 with a new question and a new shark.