[music playing]
[theme music playing]
[theme music concludes]
- Sharks, India has the most number of youths in the world. - Yes.
And the youth have it in them to make the country a superpower.
For that, the most important thing is for our farmers to make progress.
So, we've come together to start RBD.
We're the founders of RBD.
At RBD, we innovate agricultural machines
designed to save farmers' time and money.
So, we present to you
India's first Power Reaper with a seat.
Sharks, in an hour, this machine reaps 1 acre of farm
in Rs. 100 worth of fuel.
Chaff cutters are mostly used by women
It fulfils the needs of every farmer, field and garden.
It is a one-stop convenient solution for a farmer.
You can buy our machines from online marketplaces
or directly book them from our company's call centre.
and saving both their time and money.
And our ask is Rs. 1 crore for 1% equity.
- Whoa! - Hmm.
Wow.
I started out as a hotelier.
From 2014 to 2016,
I worked in a hotel as a receptionist.
After that, I worked as a sales executive
in the agricultural field.
I continued doing jobs until December 2020.
I was at home for two months during the pandemic.
I was working from home in sales
as I got a chance in agriculture at the time.
The situation at the time was something like this.
I'd get a 30% deduction in my salary.
My whole family depended on me.
I was newly married and had financial issues.
- I hadn't gotten an increment in two years. - Hmm.
Looking at this,
in December 2020, I decided to do something about it.
So, I quit my job
and told my family,
"I won't be able to give you any money for six months."
"I have nothing."
- Our parents provided for us by tailoring. - Very nice.
They said, "Go on, chase your dreams."
"Just remember. No matter what you do, do only good."
Nice.
"Money will come and go. It's a part of life."
RBD is my grandfather's name.
Shri Ram Bilas Darji.
...we decided that if we ever formed a company, we'd name it RBD.
You didn't tell us about your background, Devendra.
Sir, I worked as an accountant for five years
with a swimming pool manufacturer.
- Was that in your village? - No, Jaipur.
- Jaipur! - Our jobs were in Jaipur.
- Are you siblings? - Yes, real brothers.
- Who is older? - Bhupendra.
Okay. How did you come into this industry?
- You were a hotelier. - Yes.
Then you did sales.
I'd gained the expertise.
- I started as an executive and became a state head. - Where?
In the same industry with competitors, sir.
and also with George Maijo Industries.
Did you do the same thing there?
Yes, I was in sales.
You were in sales.
Currently, we import some products
- or nationwide? - All over India, sir.
Sir, we have three main products.
- Show us. - Power Reaper.
This is our Chaff Cutter video with the highest views.
The viral video has 4.5 million views.
This is Power Reaper.
This video is from the time when it didn't have a seat.
These machines don't seem like they're a new innovation.
I feel like I've seen them before.
- Let me tell you... - We've seen them on Shark Tank before.
It's not like this machine was ever a new innovation.
Back in 1993, sir, the tractor machines already existed
but they yield a loss of 8%.
It's not like our machine doesn't.
Our machine yields a loss of 1.8%.
Let me explain.
- The average width of a tractor is 7 to 8 feet, sir. - Okay.
...causes the dried grains to fall off.
That causes a loss of 8%.
Whereas, it is 1.8% on our machine.
That's not our claim, sir.
This data is backed by government agricultural universities.
Do you have a certificate?
- Sir, we don't have a certificate as such but I could... - Yes.
These are the findings of the tests done by companies in agriculture.
Who gives the testing reports?
The test reports come from government universities.
- In India... - You don't have it.
No, we don't have the testing report for that machine yet.
- Of neither? - We do have it for this one.
and many accidents involving women were reported.
Their dupattas and saris would get stuck.
- Or they'd lose fingers. - Oh!
We've provided covers on all four sides
to eliminate the chances of any accidents.
If you see, the covers are huge.
Your hand won't reach the blade even if it is all the way in.
So, the chances of accidents and mishaps are nil.
Ma'am, I'd say the designs are neither ours nor...
Power Reaper has been in existence for a really long time,
but no one had the vision of adding a seat to it.
Where do you make these?
In different places.
We assemble them. We don't make anything, ma'am.
- You assemble it yourselves! - Yes, that's right.
How many people are involved in the assembly?
We currently have a team of 32 people in total.
- Where do you store them? - Warehouses.
We have five warehouses.
Five warehouses! Nice.
- Lovely. - What's the capacity?
How many such machines can you make in a month?
Ma'am, the harvesting season in India lasts for two months.
Mostly the last six months of the year.
One's October to November.
The other is February to March.
And in case the rains vary, it could extend up to 15 April.
- Harvest season. - Got it.
You assemble the products before, have an inventory ready
and then, during harvest time...
- We sell it. - You sell them.
Who's your competition?
Ma'am, our competitors include KisanKraft Limited,
where I used to work.
They currently don't offer a seat car.
How big is that company?
Sir, I think approximately Rs. 300 crores.
I don't have any proof though.
Let's assume Rs. 300 crores for now. How many machines do they sell?
Do they sell 8 to 10 like you or just 1 or 2?
No. In comparison, their SKUs must be 3x to 5x, sir.
- 3x to 5x! More SKUs! - They must have about 60 SKUs.
Can you outdo them?
Why not, sir?
[chuckling]
- You answered in a snap. Well done. - How?
Clear goals. Very good.
- How? - Sir, we do social media marketing
on platforms like YouTube, Facebook and Instagram.
we focus on service.
For example, I buy this machine.
I give good reviews to four people.
- If I were to differentiate between you two... - Hmm.
What are you better at versus them?
Sir, they follow a B2B model
while we follow a D2C model.
You spoke about social media.
You mentioned you got about 5 million views on YouTube.
You must have a good number of followers.
- How many do you have... - 1.6 lakhs.
- 1.6 lakhs subscribers. - Unbelievable!
- Not bad. - Could you show us your channel?
1.6 lakhs!
- Yes, sir. - Very good.
- Your YouTube followers? - Yes.
- That's great. Very good. - Very nice.
Look. 1.1 million, 1.1..., 3.47 million...
- Scroll down. - 1.6 lakh subscribers.
Good heavens! 4.5 million!
- This is what they were talking about. - 45 lakhs.
- That's fantastic. - Scroll down further.
You're a hero!
'You can order it to any city, village or district.'
'The world's best company, in India at least.'
'Greaves Cotton company is the best in the world,'
'even before the time India got independence.'
'The company is over 100 years old and started in 1859.'
- 'We provide you this machine along with their engine.' - Wow!
'My fellow farmers, you won't get such good tyres from TVS anywhere...'
'This powerful Power Reaper...'
- Oh, wow! - Amazing.
Is that you?
- Nice. - Well done.
- Salesman. What's on your hand? - A tattoo, sir.
- Your company's logo. - A tattoo of RBD.
- It's our grandpa's name. - Grandpa's name.
- Their grandfather's name... - Nice.
If you take a closer look,
you'll see a tattoo of their company's logo on his arm.
Show us the tattoo.
[light-hearted music playing]
It matches the brand logo.
- Just like that. - RBD!
I have a question.
You sell such big machines.
I don't quite get why you sell torches along with them.
It helps to form a bond with customers.
Day after day, we re-market all our products to them.
Cross-selling.
If I sell a machine for Rs. 1.4 lakhs to a farmer...
- It helps you build trust. - Yes.
This is many times called a loss leader in the industry.
Sir, as a business, this is a profitable product.
It's even more profitable,
because that farmer will buy more products from me down the line.
Got it. This won't get you big business
- but it'll establish a relationship with the farmer. - Yes.
Got it.
We've understood your products. Tell us about your sales
and where your company currently stands.
From 1 April to September 2024,
- we've done sales of Rs. 9.34 crores. - Oh, wow!
- Wow! - Well done.
You did well.
Last year, it was Rs. 14.37 crores.
How much will you do this year?
About Rs. 22 to 25 crores.
Rs. 1.69 crores the month before that
and Rs. 1.58 crores before that.
By looking at your figures,
- I can say you make profits. - Yes, sir.
- Tell us. - How much?
- Tell us the profit in percentage.
7 to 8%.
Very good.
How much money did you make last year?
We showed um...
0.48% something.
Around Rs. 13 lakhs.
This year?
How much will we show?
[all laugh]
- How much will you make? - Around Rs. 1 to 1.5 crores.
- That you'll disclose or in total? - I'm talking about the 7 to 8%.
- Okay. Your net profit is Rs. 1.5 crores... - Total.
That you'll take home after tax.
- The company will get it. - Yes.
Could you tell us more about it?
Why don't you disclose the entire profit in your books?
If we pay the government more tax, how will we grow the company
if we're left with nothing?
Oh, no!
You gave us a lovely story about your grandpa.
Principles are very important in life.
If your reason is investing money back into the business,
you could easily get a loan from the government.
- That's right. - So, you know?
Rather, than evading taxes, it's better you take a bigger loan
and run the business ethically.
Don't you agree?
We're just following our CA's suggestions.
We can't be good at everything.
Yes, we might have insufficient knowledge.
When it comes to tax,
we consider this person more knowledgeable than us.
If they guided us in a certain way,
we assumed it would be right.
Let me explain this to you very practically.
Do you know the cost of equity?
Suppose you sell your equity at whatever valuation in the future,
do you know what it'd cost you?
They become a partner in the firm.
Yes, they do,
but what return are they expecting? How much can you give?
- They'd expect 2 to 3%. - No, let's calculate annually
as interest is calculated annually.
The return you've to give them is 25 to 30% annually.
Only then would they invest in equity.
According to their calculation,
they are expecting 3x or 4x in 5 years.
Only if they feel they'll make that much, will they invest.
On the one hand, your balance sheet is so strong
that if you consider the current government schemes,
you might get a good loan for between 8 to 12% interest.
Let's assume you get it at 10%.
You'll be giving less equity or none.
That saves you 20% annually, buddy.
Sir, we applied to a lot of banks.
The maximum limit we were offered was Rs. 1.3 crores...
Because you're not disclosing your profits.
- We're showing sales. - If you...
You're showing sales but not disclosing the profits.
If you start disclosing the entire profits,
Rs. 1.5 crores...
Was that the limit you mentioned?
- Yes? - Yes.
Imagine what it'd rise to.
Also, that'd increase your company's enterprise or equity value.
...if you have a profit of Rs. 50 crores at the time,
If you sell shares, you'd make a lot of money
and so would your investors.
If you continue to hide your profits,
fine, the company will grow
but it will not have an enterprise value
or equity value.
Devendra! Bhupendra!
Look, someone could get embroiled in all this,
you as well as your investors.
First, you need to pay off your old taxes.
The government gives the opportunity to pay off your old taxes.
So, pay off the pending taxes with the penalty
so that your company could grow into a big one.
- Is your distribution solely online? - Yes.
So, farmers watch your videos on YouTube
and call your number.
- And are you able to sell to them? - Yes.
That's amazing.
...how do you ship it?
What does it cost?
- It costs Rs. 1.35 lakhs. - Oh, wow.
An advance payment of say Rs. 10,000 is made into the company account.
- Advance payment. - Yes.
Not even a video call?
- If someone has trust issues, they video call us. - Okay.
Those who do trust us and are familiar with the internet...
Many people watch the video, go on the internet
or an e-commerce platform and confirm that we exist...
- They read the reviews. - Outstanding!
- Hang on, Aman. - India's e-commerce market has done well.
- Amazing. Yes. - People are buying this online.
Then you get a telesale.
- The buyer sends an advance payment of Rs. 10,000. - Yes.
How do you ship it?
- Ship... - Do you dismantle it?
- No, sir. It goes in two parts. - Okay.
The front and the back.
We have tied up with a few transport companies.
We deliver to every village, farm, house, district and state.
What is the delivery cost incurred?
We deliver all the machines free of cost.
Have you taken a bank loan?
Sir, we have a CC limit of Rs. 1.3 crores from Axis Bank.
Have you drawn down all of it?
We have about Rs. 15 to 20 lakhs.
Do you draw salaries?
It's not fixed, but about Rs. 8 to 9 lakhs.
- Annually. - Each?
Yes.
What's your vision for the next five years?
We want to touch Rs. 100 crores in three years.
That's our main vision, sir.
Tell me something. You have two options here.
Either you could take this solely on e-commerce
where you also sell the products of others.
Or whatever you make is in your own warehouse,
using your own machinery to make your own output.
Which path do you see yourself taking?
Sir, we will only carry RBD forward
- as long as we live. - Hmm.
- Lovely. - We won't be distributors or dealers for anyone else.
I love the clarity.
Let me also tell you about our main vision.
In the next five years,
What are the top few SKUs you'd like to add in future
where you see a huge potential?
Sir, every year, we introduce two products.
The sale of whichever product's SKUs rises,
we push that aside... As in, add it to our existing base,
and gradually take out the one that isn't performing well.
- Amazing. - FMCG giants do the same thing.
You haven't studied MBA
but you can give good MBAs a hard time!
I'll make you an offer.
Okay? I really loved your business.
You understood the problem correctly.
The sales are fantastic.
And as you just mentioned,
in reality, small plots are the problem in India
that require small machinery.
Right? So, you're in a good,
progressive and growth-oriented market.
My condition is you will sort out your tax-related issues.
...and I'll give you another Rs. 50 lakhs as a loan
at a 9% interest rate for 5 years.
You can put up a fight, are daring,
and your sales are solid too.
Huge respect and I salute you!
[chuckling]
I think in my opinion,
1% equity wouldn't mean a lot to me
in terms of skin in the game.
And I believe Rs 100-crore valuation was too much to ask for.
You have a good offer from Namita.
So, I would like to exit.
I'm out, but good luck.
- Thank you. - Thank you.
Bhupendra! Devendra!
I liked a lot of things about you.
Just as you are very close to your grandfather,
I was close to mine. He's no longer with us.
He told me one thing when I was young.
He wanted to teach only two things to his children.
To take flight and stay grounded.
I believe you've had a very good upbringing
as you have both.
You're extremely humble and grounded
but have ambition too.
You've used many tricks followed by e-commerce companies
to attract customers like free shipping.
I really liked your clarity of thought.
At times, founders say,
"Free shipping on these six high-value products"
"but no free shipping on the torch as that'd lower my profits."
You resisted that temptation
and wanted your proposition clean,
but the one thing I did not like at all
was the concept of not paying your taxes.
That raises a question in my mind.
"Are your other numbers genuine?"
So, I want you to fix this problem.
I'd like to see you again
after this is done.
Today, I'm out.
- Thank you, sir. - Thank you.
You know the place, product and price.
You know marketing and understand business, right?
It's not like there won't be another opportunity to invest in you.
I believe there certainly will be.
Today, because your paperwork isn't ready,
I won't be investing.
It was nice to meet you. Unfortunately, I'm out.
Nowadays, small towns are churning out companies
with a turnover of Rs. 25 crores.
Congratulations on building a big business in your village.
Your vision is clear too.
So, I want to make you an offer.
I'll give you Rs. 50 lakhs for 1% equity
along with Rs. 50 lakhs at 9% interest for 5 years,
which is a similar offer.
Actually, Ritesh and I will give you a combined offer.
Here's our joint offer.
- Rs. 50 lakhs for 1% equity. - Right.
- Same offer. - And Rs. 50 lakhs at 9% interest for 5 years
...and continuing this further.
Your paperwork should be in order at all times.
Kumar and Kumar, you have one offer. What would you like to do?
We accept your offer.
- That's great. Marketing geniuses! - The things you say!
Beautiful.
- Welcome, partnership! - [Namita laughing]
'It's a dream for us.'
This is a dream come true.
We arrived, met five Sharks and even got a deal.
[camera shutter clicking]
'RBD and we share a common dream.'
Saving the time and money of every farmer.
[music concludes]
There are a lot of businesses and individuals
who don't pay taxes.
And they think that by paying taxes,
their money is getting wasted or is not yielding any result,
but that's not right.
Taxes must be paid in full
because they are eventually used for the development of the country.
And corporate governance is extremely important
not just for listed companies, but including every start-up.
Had it not been for this issue,
I'd surely have invested in this company.
[upbeat music playing]
Welcome to ACKO Change Makers
where we really welcome change,
and that is beautifully depicted on the wall behind me,
our Change Makers wall.
Through technological advancements and a mindset of forward thinking,
we're bringing about a revolution of efficient farming in rural India.
And today's Change Makers are doing just that
plus they got funded.
Congratulations, Bhupendra and Devendra. A warm welcome.
- Thank you so much. - Greetings.
and that's where you have come in.
Thank you so much for this change.
If we wish to bring about a change in our attitude,
or if the viewers want to do something for the farmers in India,
what can they do?
Ma'am, even today,
if we compare the farmers in India and abroad,
we're lagging.
The money that should have been saved is being spent on labour.
And so, RBD brings you an initiative
to save both the time and money of farmers.
I hope this change comes about very soon.
Similarly, with its revolutionary offerings,
ACKO too is changing the landscape of insurance.
For instance, zero waiting period for health insurance.
That means, if you don't have a pre-existing health condition,
then your coverage will start from the first day of the policy
and you can claim without a standard waiting period.
You've brought an innovation in agriculture
and we wish to congratulate you on it.
You received a funding in the Tank. Let's celebrate it.
ACKO, Shark Tank and I wish to give you
- a small memorabilia. - Thank you so much.
[camera shutter clicking]
'Shark Tank India co-presented by ACKO Insurance,'
'PokerBaazi and Swiggy Instamart.'
'Co-powered by Adani and Jaquar Bath & Light,'
'and partners Rayzon Solar, ICICI Direct,'
'Lenskart and Sofy.'
[theme music playing]
[theme music concludes]
Akshay, what would you say if a founder forgets his numbers?
Um... He forgot his numbers.
Wrong answer.
You should say, "It has all gone to waste!"
Suppose, using the same waste,
he builds a good brand
and asks for Rs. 3 crores for 5% equity in the Tank,
then what would you say?
- Wow! Very good. - [all clap]
Hi, Sharks. My name is Mayur Chandgude.
- [Marathi] Namita, we're from Pune too. - Wow!
We bring to you the finest brand Midas Paint
which makes eco-friendly paint from cow dung.
As you're aware,
our paternal and maternal grandmothers
would coat their homes in cow dung in the olden days
keeping them cool and free of bacteria.
Keeping that in mind
and with a bit of help from technology,
we made eco-friendly and decorative paint from cow dung.
This paint is 20% cheaper as compared to other paints.
Sharks, we've sold about 3 lakh kg of paint in 3 years.
And we wish to colour the world in this paint.
Sharks, spend a little money...
And lend your Midas touch to Midas Paint!
- Oh, nice. - Well done.
Poetic!
- Nice. - So, Mayur! Mayur! Sachin! Akshay!
Welcome to Shark Tank.
- Thank you, sir. - Thank you, sir.
How does it feel to be here?
- Feels great. - Quite exciting and feels great.
Great. Give us a bit of history. How do you know each other?
We're childhood friends.
Sachin and I studied in the same school.
Mayur and Akshay studied together.
They were our seniors, we were their juniors.
I did Bachelor's in Mechanical Engineering.
I did my graduation followed by an MBA in Finance.
Okay, and you?
I've done a BE in Civil Engineering.
I have a Diploma in Networking and Hardworking.
A diploma in hardworking?
- Hardware and networking. - Okay.
You're hardworking too.
Have you worked anywhere after your studies?
Yes, I have. I used to work for an MNC.
- When was this? - In 2017-18.
Okay. When did you start this?
In 2021.
21. And you?
I didn't do a job after my studies.
- I used to do farming in the village. - I see.
This start-up that was built is also related to farming.
- So, I was interested in it. - Okay.
- Do you still do farming? - Yes, I still do it.
- Really? Where? - Yes.
My village Indapur is 100 km from Pune.
I have a farm there.
- What about you, Sachin? - I graduated in 2016.
I've been with them since 2021.
- Okay. Don't you do anything else? - I do, sir.
Precision Construction which is in proprietorship.
- We run that business together too. - That as well.
And you, sir?
I run an industrial automation firm since 2016-17.
This is an exceptional pitch. I am enjoying it.
You do everything together.
Why aren't you doing anything else, Mayur 2?
I got a job after my engineering.
I resigned and joined my family business
which is into fabrication and electricals.
After that, in 2021, I started Midas Paint.
What became of that business?
It's running.
That too! Great!
- So, then, you... - What kind of...
Hang on.
- You're here... - Whoa!
You are here to take Rs. 3 crores
- and run four businesses with it. - Five.
Yes. Sorry, five businesses.
Yes, but passionately, Midas Paint.
- Yes, that's right. Wonderful! - [laughter]
We were born last night!
- So, you'll take the money as well... - Is either of you in it full-time?
- We dedicate two hours in the morning... - No!
- Full-time means full-time. - [laughter]
Full-time means 24/7.
Yes, that gets covered.
Mayur is working 24/7 at Midas Paint.
- Okay. - Mayur.
- Just one. - I oversee marketing.
So, I'm constantly making calls.
- And so, I am also available 24/7. - [laughter]
Are you under any compulsion
due to which neither of you is doing this full-time?
We've entered in the fourth year.
We've to do something to run the household too, right?
Are you saying you'll take the money today?
Or that if your business does well,
then all four of you will do just this 24/7?
- Yes. - Yes, sir.
- 100%. - Yes, 100%.
Okay, just wanted to clarify.
What's the equity split?
You said you were the only one working full-time.
Do you own more equity?
- Yes, I own 55%. - Yes.
You. What about you three?
- 15%, 15%, 15%. - 15% each.
Mayur! Sachin! Akshay!
How did you start this?
How did the idea of paints occur to you?
I don't know of any paint
that is normally made using cow dung.
Painting work was being done at my place.
While painting your house, you must've seen at your place
- that it has a strong smell. - Yes.
It becomes difficult to survive in that smell for a week.
We have a plot 15 km away from Pune.
There was an old lady there.
She was applying
cow dung around her house.
She said that this prevents fungus from growing.
...that we should also use this and do something.
I contacted my friend
who was a professor at my school.
He taught Chemical Engineering.
We sat down and came up with a formula
to make it work.
All our paints are eco-friendly.
It's a water-based paint.
There is no oil-based content in our product.
Whenever we buy cow dung from farmers,
- We have applied for it. - You've applied for a patent.
- Yes. - Do you transport coloured paint?
No! We make more than 15,000 shades.
We created our own bases by calibrating them ourselves.
You asked for any colour...
For example, 7065 is Morning Glory.
That number goes into our software and that tint is made.
If the distributors make it themselves
and tweak the process here and there,
won't it lead to variations in colour
and other issues, which could cause problems when scaling up?
I am just trying to understand the industry.
What you are doing is not common.
Every paint industry has such machines,
- they have a D drive. - The distributor
- has machines and they make the paint. - Yes!
- They always do. - All the paint companies?
- Yes, all paint companies. - I didn't know that.
- Why are you saying this? - Really?
They only transport.
They manufacture white in the factory
and transport white everywhere.
Does Asian Paints do that too?
Everyone does that.
Tell me something.
How big is the paint industry in India?
This industry is worth Rs. 8 lakh crores.
- 70% is decorative. - Okay.
And 30% is industrial.
Approximately, decorative paint is Rs. 6 lakh crores.
Out of which half of it is unorganised according to me.
- 30% is unorganised. - 30%.
And out of the remaining 50% will be Asian Paints.
- Yes. - Then, in such an industry,
there is one player
- who has a huge market share. - Yes.
So, besides the fact that this paint is eco-friendly,
what else motivated you to get into this?
Back then, I didn't think
about what the future holds.
I just wanted to give something new to the consumers.
- Good! - It will take time to change the mindset.
- I am sure of that. - Yes.
But we are giving alternative options.
There are many paints being sold in the market,
yet people are buying Midas Paint.
This is what I wanted to ask.
How do you convince the consumer to buy this paint?
To promote this brand, we chose
the cheapest way to market this
and that is Instagram and Facebook.
- That's good. Nice! - Yes.
That helped us generate leads.
We explained the concept to them thoroughly.
We are working towards the environment and sustainability.
It is a need of the hour.
Once they take our samples
to paint the house and get the feel of it,
the network starts to build itself automatically.
You just need to approach them,
make them aware of your brand, and show them that this product exists.
- Amazing! - We focus on
- how it works. - Are you a farmer?
Yes.
The strategies you've mentioned,
like referral marketing and digital marketing,
are often used in such jargon,
but you explained them in such a simple way.
The basic foundational principles of doing business
were conveyed in a way that made them easy to understand,
without needing to aim for lofty goals.
That is great!
Do you have a shade card?
- Yes, we have a shade card. - Show it to us.
- Open it because I want to smell it. - Sure.
Smell it.
- Is there a smell? - No.
- Nothing! - It has a smell, but not as strong.
Okay! Fine.
It is very mild. If you've seen other paints...
If we apply paint from another paint company over this area,
you claim that it has a stronger smell.
If we leave a box of oil-based paint open
over here even for five minutes,
- you will be able to smell that too. - Okay.
But the smell goes away after 4-5 days, Aman.
So, what is the issue?
For us, it is just a matter of a couple of days.
But for the painter,
who works every day to make a living,
- we've thought about them. - Think about children.
- They lick the walls. - And for children
- at home. It also emits gases. - Yes.
You are right.
Once we apply this paint, the smell lingers for around 7-8 days at home.
After that, it goes outside
and it adds to the pollution outside.
Do these major brands
only make oil-based paints?
No, they do make water-based paints too.
They do, right?
Do they also make eco-friendly paints or not?
- No! No one makes eco-friendly paint. - No one?
What is going on abroad?
Are there eco-friendly paints in America and Europe?
Yes, they do have eco-friendly paints.
This means this concept will be eventually copied here as well.
Let's assume that if a company claims
to introduce eco-friendly paint,
it will automatically mean
that the products before this were harmful.
It can backfire on them.
- That will be a new brand. - You keep saying 'harmful'.
Is there a study or data
where it has been established that it causes health problems?
- Yes! We do have data. - What is the data? Please tell us.
When painters paint...
No, hold on. There are two problems.
One is that I agree that painters suffer.
- I am talking about your end consumer. - Hmm!
- Okay? Those who live in the house. - The data is available.
- What is it? - But we currently don't have the numbers with us.
How can you ask for Rs. 3 crores?
You should have data on why it is less harmful.
Our paints
The benchmark in the paint industry
should be around 5%.
Because everyone would want to be compliant.
So, everyone will be under 5%.
You are claiming that you have a very small amount.
- Is that the only difference? - Yes, sir.
This implies that your differentiation no longer exists.
Because customers know that under 5% is okay for me.
So then whether it's 1% or 2%, I don't care.
Your proof point will be evident from your business,
whether your differentiation exists or not.
Tell us about your business. What is the revenue and scale?
We started in 2021.
Our revenue was Rs. 15 lakhs in FY21-22.
In FY 22-23, the revenue was Rs. 45 lakhs.
In FY23-24, our revenue was Ra. 75 lakhs.
After that, based on our current financials and the quarters,
our revenue is currently Rs. 60 lakhs.
Yes, this is the unit economics. The average price
is Rs. 225 per litre.
And we give Rs. 112.5 to dealers
and distribution networks.
It costs Rs. 38 to make it.
25% is overhead expenses, which is Rs. 9.6.
Packaging cost is Rs. 23.
Our EBITDA is Rs. 41.
Our margin is Rs. 25-Rs. 30.
- Rs. 21. - Earning before income tax is Rs. 41.
- Rs. 41. - Does this exclude your team's cost?
Yes!
Rs. 31 and not Rs. 41.
You are left with Rs. 31.
- Rs. 41. - You are left with Rs. 41?
- Yes. Rs. 41. - Is your margin 40%?
- Net margin. - No! Rs. 41 out of Rs. 225.
EBITDA is 36.88%.
- Our margin is 25%-30%. - The margin is 20%.
- Yes.
Why are you saying 'yes'? You are agreeing to everything.
I am confused.
Are you calculating with Rs. 225 or Rs. 122.5?
No, with Rs. 225.
How much are you saying your margin is?
Our margin is 25%-30%.
So you take Rs. 41.
Rs. 41 is EBITDA.
- EBITDA is Rs. 41? - Yes.
So, last year, give or take...
- You made Rs. 15 lakhs. - Yes.
- You made Rs. 15-Rs. 20 lakhs from this business. - Hmm!
This does not include your salary.
- You said you are doing this without drawing a salary. - Yes.
So, tell us, you are already making Rs. 15 lakhs.
And this year, you are claiming to do Rs. 5 crores
and will you maintain the margin?
- The margin will increase, sir. - The margin will increase. This means
this year you will make Rs. 1-Rs.1.2 crores.
Then why don't you shut down other businesses and focus on this?
- Why are you arranging for money... - We are focused on this.
No! You are not.
You are not solely focussing on this.
What did you say in the beginning?
As far as I understand... The thing is...
- Should I tell you the truth? - Yes.
- I am confused about what I am confused about. - Okay.
Because what you are saying doesn't make sense.
I didn't understand the calculation.
You went from 45 to 75.
And then from 15 to 45.
- You jumped 3x once and then your growth was 60%. - Hmm.
Now, how will you go from Rs. 75 lakhs to Rs. 5 crores?
8x growth. I don't get this.
The orders we have are worth Rs. 2 crores.
Do you have advance against all the orders?
Yes, we take 20%-25% advance from them.
25% advance of Rs. 2 crores.
Yes! That means our orders have been processed.
Once it is processed, we take the advance.
- You have not received the advance yet. - We haven't.
Friend, what I like the best about you
is your logo.
It's interesting and intriguing.
With the cow on it, it tells you that the paint is natural.
- It's simple thinking. As you mentioned, Mr. Mayur. - Yes.
The way you spoke about marketing,
I really appreciate it.
But other than that, I don't understand anything else.
How did you come up with the valuation
and why are you asking for Rs. 3 crores
without proving anything?
- You did a business of Rs. 75 lakhs. - Hmm!
- Rs. 5 crores is not yet a reality. - Hmm!
Who will pay you for that right now?
I didn't find anything
that justifies the valuation, the ask,
or the product. I want to be out.
But I wish you the best.
I hope you become a stat with the cow dung, but not with me.
The distribution receives a white liquid.
They have to create the exact tint with the card.
So, in your product, building this network
isn't that easy to crack in terms of distribution.
I am not sure about the customers
and the distribution side as well.
There isn't a sense
that you can crack it against the big players.
So scaling becomes a huge question mark.
I like you guys. You are from Pune.
- Yes! - But because I am not sure
I am out today. But prove me wrong.
Thank you.
I don't think the CMC's differentiation
...to create an end product.
So, you need some innovation.
We can't reach the end by only making
a CMC product.
For now, I feel
that the fundamental questions answers are pending.
For this reason, I am out.
I can see a fundamental challenge in your business. I'll share it.
Whenever I feel that the business is set...
I almost had a deal for you.
I wanted to give you an offer.
But the issue was
that you changed your answer
in a few places.
It could be that it's because you are nervous.
You said you get 25% for Rs. 2 crores advance.
Then you said that the advance is processing.
Then you claimed that your margin is 25%-30%.
And then you said Rs. 41.
That is 20%. For that reason, I want to be out.
Your team lacks a member who understands business.
Mayur, you understand business. Okay?
You run a business.
He will do marketing, you will learn branding.
You can hire an agency that will teach you this.
You need one person
who will explain the business to you.
Someone who will teach business. Principle.
Hire a CA. Okay?
- Or CA... - He is asking for a job.
[laughing]
- Namita is free nowadays because of the IPO. - Why me?
Okay! You hire a CA or someone who can teach you
how to run an ethical business.
Okay? You need to have a hold on business numbers.
You must become strong players in your business.
Because you need to know the numbers and what is happening,
what are you headed for and what valuation to ask.
Your pitch was good.
Your product is also good.
I differ with Anupam and Kunal here.
If you have 1% and they have 5%, so 1% is still better than 5%.
So, I think your product is something.
Your marketing is good. Your pitch went bad
because you don't have a hold on numbers.
The business number and your ask are not in place.
A CA will be really helpful I believe.
So, unfortunately, I am out.
- All the best. - Thanks, Anupam.
Thank you!
Should I tell you a secret?
I don't know what PAT, B2B
and ROI are. They didn't exist in my syllabus.
It should feel like I know something
when I stand with the Sharks and the pitchers. I need to read up.
I was thinking I should do my homework.
Study and have an office set up so that I can study.
I'll order things from Swiggy Instamart
and it will be delivered in 10 minutes.
I know what to order.
First, stationary items.
Hmm! Yes.
One pen stand.
Okay! Notebooks.
I have to revise old pitches. So, I will buy a phone stand.
Phone stand.
I won't be able to study if I am hungry. So something to munch on.
I love cookies.
Cookies! And... Done!
Order placed. It will be delivered in 10 minutes.
You go and study.
Who will bring things? Swiggy Instamart. Order now.
[theme music playing]
Hello, Sharks!
And we are the co-founders of Goodland Pickleball.
What is pickleball?
Sharks, imagine
that there is a badminton court,
table tennis paddles,
and a lawn tennis net.
This is a cocktail, pickleball.
This is the world's fastest-growing sport.
In India, the number of courts has risen from
50 to 500 in just one year.
That's where Goodland Pickleball comes into the picture.
We are a one-stop solution where we build courts,
we have an equipment line,
...is the number one-selling pickleball net in India right now.
You can book our courts
with our booking facility.
We are also offering memberships.
This is the fastest-growing sport in the world.
And we are the fastest-growing brand from India to the world.
We want you to be a part of this growth.
So, Sharks, our ask is Rs. 80 lakhs for 4% equity.
Anupam, catch!
There we go!
Sharks, we will do a quick demo.
Aman and Anupam, are you guys ready to play?
Oh yeah!
This is like tennis.
The ball bounced beyond the green line, that is legal.
So, you will be in my team.
- Take this paddle. - Wow, we are doing doubles.
- Yeah! - Who is American and who is Indian?
- He's American. - India versus America. Let's do this.
Brooklyn versus Mumbai.
We'll play a game where the first to score three points wins.
Perfect!
- Out! - They won a point.
- Come on, bro! Are we ready? - Do it!
- All right! - Ace, bro!
- Let it bounce. - Hit it.
Come on!
- You! - Go ahead.
Let's do it!
- We have a winner. - Team Brooklyn!
Mumbai lost!
Did Mumbai lose?
- I lost. - It's okay.
- It's okay, we were... - Better luck next time!
You played badly.
So, Hemant and Yogesh, welcome to Shark Tank Season 4.
Watching the game was fun.
I'll tell you as a mother,
nowadays, children
are glued to the TV and video games. So, I love anything
that compels them to leave their house
and makes them get their heart rate up.
So, thank you for doing that.
Tell me a little bit about pickleball's history.
And why is it picking up all of a sudden?
- Pickleball started in the 1950s in Seattle. - Wow!
In the last 40-60 years,
it has become a dormant sport.
It was played at a niche level by a few thousand players.
People in North America were mostly playing this sport.
- In the USA and Canada. - Okay.
So, what happened after COVID
was that you couldn't play contact sports.
So, this was a socially distanced sport.
So, in 2020-2021,
pickleball started seeing widespread popularity.
Right now,
we have leagues.
So, there is a league called PPA,
which is similar to ATP.
- Ah! - There they have tournaments
literally every day.
They have tournaments every week.
Why is it called pickleball?
Going back to 1950.
The owner's dog's name was Pickle.
[laughing]
When the ball was near his dog, he used to say, 'Pickle, ball!'.
- So, that is one of the theories. - But that's so funny!
Do you know it has a brother or sister sport called Padel?
- Yes! - I am addicted to Padel.
Once you get a hook of it, it stays.
- What is the difference between them? I don't know. - I'll tell you.
They are both competitors of tennis.
The difference is that pickleball is the size of a badminton court,
which is 1/4th the size of a tennis court.
And the padel court is slightly bigger than a pickleball court.
Padel courts are expensive to make.
Because it costs approximately Rs. 20 lakhs to make a padel court.
What about the pickleball court?
sell equipment and we have clubs.
Do you have photos of your club?
- Yes. - Show it to us.
20 by 44, it is the exact size of the badminton court.
- You've made three courts here. - Yeah!
Okay! Show us more.
That one is our club in Brooklyn.
- It's in New York. - Brooklyn?
- Yes, New York. - Do you have courts abroad as well?
- Yeah! We have a big business in the US. - Oh!
This is an outdoor court.
We started it four months ago.
We already have 2,200...
Why are you on Shark Tank India?
Because we have a very big India business also.
You just said you have a very big US business also.
Give us a background.
How did this start and how did you come up with the idea?
My primary residence is in New York City.
When we were here last May, I wanted to play pickleball
just for fun and not with the intention of starting a business.
We didn't get pickleball courts.
There was a tennis court in Yogesh's building, where we started playing.
The children started playing with us too.
In the US, I saw the growth.
Usually, whatever is trending in the US is introduced here.
We are cousins.
Ours was a third-generation construction business.
So, court construction was a natural transition for us.
And I also want to spend time with my family here.
My parents are getting older.
Which is why I wanted to set it up here.
I trusted Yogesh as a co-founder of this business.
Are you here for money for your business in India or the US?
For Indian business.
- New York... - The first entity is exclusively yours.
Yes, 100%.
- And both of you are in the second entity. - Both.
- 50-50. - 50-50.
What does the equity split look like in a combined entity?
83% and 17% will be his.
Will the merged entity be an India-based or a US-based company?
- ...between the two companies. - Correct.
Is that how it will be?
But you will get the equity in the global company.
It is not a global company.
I will have to talk to the legal person.
But it will be lucrative to the investor.
We need to understand
if there will be one entity.
Your share will be 83% and his share will be 17%.
- We will invest in that. - Yes.
Whether it is in the US or India, determining that is still pending.
- How you will merge is yet to be determined. - Yes.
- Is that fair? - Exactly!
Okay, thank you!
Yogesh and Hemant, a lot of clubs are being constructed.
There will be a lot of supply in the future,
because it's not a difficult one to make, right?
So, why should I invest in Goodland?
We are creating the brand.
The decision of whether people will go to Raju's Pickleball Club
or Goodland's branded club
is something we've already considered.
We haven't worked on it yet, but it's in the pipeline.
The courts that are being constructed, as you said,
we get inquiries to make the court
or people buy nets from us.
As we mentioned, there are 500 pickleball clubs,
and out of that, we've supplied 250 nets.
I understood, Hemant. But the thing is, when someone is in India,
let's take Raju for example.
Raju is a smart businessman.
Raju will have 100% equity.
Raju is passionate.
He will be fast.
When you wake up, the client will be asleep.
There will be a time difference between you and your client.
So, Raju will make courts fast,
you won't. He can speed up.
People like Raju
don't make actual courts.
- They just draw lines and... - No!
It's not that difficult to make this court.
Making quality courts is difficult.
Do you mostly own clubs, rent them,
or operate them on a revenue-sharing model?
We take it on rent from landlords.
You mentioned that it costs you Rs. 2-Rs. 5 lakhs to make one court.
In India. Just one clarification.
When we make courts for others, that is how much we will charge them.
And how long does the payback period take?
It usually takes 4-5 months.
How many courts are in one club?
Depending on the size we get,
we can make 3-6 courts.
What else takes place in these courts?
Are there only 3-5 courts of pickleball
or do you have a padel court and a cafe?
It is dedicated to pickleball.
- Only dedicated pickleball? - That's' our brand differentiator.
We don't want to enter the cafe business
because that's a food and beverage business.
- Play and go home. That is your plan. - No!
Play, stay and hang out.
- Build a community. - Hang out where?
You are not catering to that.
You said you don't want to get into the food business.
We won't operate a food business.
But we can outsource it to an operator.
I think a lot of things are unclear to you.
You are still figuring out. That's fair.
It has been 9 months.
What is your pricing?
Who can play this sport?
- Paddles... - In a country like India.
The beginner-level paddles cost Rs. 2,500.
- Rental. You... - Per hour.
- How much do you charge for an hour? - Rental per hour booking.
Per hour we charge Rs. 600-Rs. 700
for up to 4-6 people.
But in our membership model, the price will be fixed.
It will be Rs. 5,000.
- Rs. 5,000 per year? - Per month.
What is your revenue in 9 months
and break it down separately for India and the US?
Rs. 1.9 crores, total sales in nine months.
Out of that the revenue in the US is Rs. 1.2 crores
and India's revenue is Rs. 70 lakhs.
Can you explain the unit economics?
25% goes in rent.
20% in staffing.
- Because the cost is high in the US. - That's right.
After that, there is software
and maintenance is 5%.
- You are saying your margins are 50%. - It's 50%.
What is the split between the usage of the courts...
You also construct courts for people
and sell merchandise. What is the split of these three?
In the US it's Rs. 1.2 crores. That's the revenue of the club.
It's a membership model.
We don't sell equipment there.
- How many clubs do you have in the US? - One.
- Just one. Okay! - We signed the lease for the second one.
What makes the revenue of Rs. 70 lakhs?
Rs. 40 lakhs from court construction
and Rs. 30 lakhs from equipment.
It includes paddles, balls and nets.
...that is run by you.
- We are in negotiation. - Negotiation.
It hasn't been finalised. We've been trying.
How much will you make by the end of this year?
Rs. 2.7 crores.
In Rs. 2.7 crores, how much will you make in India?
in total revenue in the US and India.
In the next three years, we want to get to Rs. 50 crores.
That's the goal.
How are you going to market it
so that more people start playing pickleball?
Customer acquisition in this case is happening through word of mouth.
In the US...
I will give you an example of what is happening there.
We run targeted Instagram ads
in areas where we opened our clubs.
We create very high-quality content.
That is actually our big differentiator and our moat.
People copy our content, that is our reels and videos.
Hemant, I want to interrupt you.
Cost.
No!
Ford and GM assumed that what works in America
would work for Indian consumers too.
Whereas Hyundai and Kia took the time
to understand the dynamics of India
and how the consumer thinks.
And then they gave them a product that works for India.
My biggest concern is
that you live in New York,
and your vision is that 2/3rd income will come from there.
And you want to copy and paste what works in the US in India.
When you came here, I was excited.
I get excited about anything to do with health and fitness.
- I want people to be healthy. - Yeah.
But you are all over the place.
And for that reason, I am out.
What is the model of the biggest pickleball company in the US?
Basically, they run clubs
and partner with organisers of tournaments.
So, the model is clear.
You are still doing things
in an opportunistic way when it comes to pickleball.
when you make a replicable, clear and focussed model.
Whether it is clubs or equipment.
I think the model is very confusing.
You need more clarity. Do this for a few more years.
Until then, I am out. Good luck.
- Thank you, Anupam. - Thank you.
You have 6-7 variables and all are moving parts.
Will you focus more on building the business in the US or India,
and what will it be?
There has to be clarity. I am not saying something is right or wrong.
But you need to have clarity.
Because your model is completely clear
I am out because of that.
- Thank you so much. - Thank you.
Hemant and Yogesh,
Your execution was also good.
- Whatever I saw was high quality. - Thank you.
Your logo is of high quality.
The imagery is of high quality.
Your products are of a high quality.
There is a sense of
- quality in whatever you're doing. - Yeah.
- That's an excellent habit for founders. - Thank you.
But if I were in your place,
I would focus on expanding in the USA
instead of doing something in India,
like selling merchandise,
or making a court for someone who gives you money.
That is a distraction.
Excellence comes with focus.
I am out for some of these reasons.
- Thank you. - Thank you.
- Aman! - Ahem!
We're coming to you now. We've won the game.
[laughing]
- I always win, bro. - That was the challenge.
Do you know what you have here?
You have the first-mover advantage.
That advantage doesn't stay for long.
You've made a brand, Goodland.
You're making various equipment in India.
Why can't you double down on it?
We've done it.
We are the number one seller of nets in India right now.
We've doubled up the production in the last month.
Our price is the best right now in the market.
The next comparable rate is Rs 24,000.
From Rs 7,000 to Rs 24,000!
It has only been nine months.
- We are in the process of doing it. - Are you building it?
Yeah.
Okay. How will you catch up with Raju?
Brands like Raju
have approached us from a few cities.
It is working. It's taking time, but it will happen.
I will give you an offer.
I have two conditions.
First, Hemant, you have to spend
six months in India,
because you are the driver of this business.
My second condition is
to open the club you're talking about soon.
That has to be a world-class club.
Once you open a club,
people will wish to open clubs like that
all over. India is growing like crazy.
Aman, can you give them the date for the second condition?
That way, they can put it down.
Next two months?
Two months. Okay?
- Yes. - All right? - Perfect.
I'll make you an offer of Rs 80 lakhs for 5 per cent,
plus I will take a royalty
of 1 per cent until I get my Rs 80 lakhs back.
[tense music playing]
The royalty is an issue.
...can we do
0.5 per cent in royalty?
We can give you 6 per cent in equity.
- It's a fair deal. - Okay.
- I agree. - The deal is final.
[camera shutter clicking]
Let's try to understand the Indian consumer.
You have to spend some time. Do it.
- We'll do it. - It will be done.
- Thank you so much. - All the best, guys.
- Thanks. - Thank you so much. - God bless you.
[triumphant music playing]
Hello, Hemant and Yogesh.
Welcome to the PokerBaazi Zone.
Have you played poker?
A couple of times.
determines a sequence. Correct?
According to you,
what would be your top five?
First is our product. It is unique and trendy.
Trendy and sustainable!
- Trendy and sustainable! - Yes.
Then, you have to market it.
- People should know what it is. - Okay.
After that, operations and logistics.
Sales will be after that.
The last one is strategy
because we are coming as an opportunist.
download PokerBaazi and make your winning hand.
Go and download the app now.
See you in the next Ask the Shark
with a new question and a new shark.