[music playing]
[theme music playing]
Hello, Sharks! My name is Parth.
But 8 years ago, I went to my dad with the same ask.
You know, every college student dreams
of opening a cafe or a restaurant. I had the same dream.
When I went to my dad with this idea,
he made me sit down and said,
'Do you have any idea how much money you need to open a restaurant?'
'If a location doesn't work out, what'll you do about the interior?'
'Who will bear such a huge loss?'
'Everyone at your age thinks you can do a lot.'
'You think you will make a lot of money.'
'In reality, there are numerous overhead costs and high rentals'
'who will cover them?'
Sharks, something like this coming from a veteran
who holds more than 30 years of experience
in the hospitality industry.
I was taken aback.
As they say,
once an idea takes root in the mind, it doesn't go away so easily.
I saw food trucks abroad,
so I thought of starting a food truck.
It will be affordable, and my passion will also be fulfilled.
While searching for a food truck manufacturer for ourselves,
we couldn't find anyone
who truly understood this industry.
It was full of truck body fabricators.
That is when we came up with an idea and we saw a gap.
Forget about selling food. Let's make a food truck.
And that's how, in 2016 Schickwheel was born.
Schickwheel is a one-stop solution
where we make high-quality, premium, custom-built,
food trucks, trailers, kiosks,
what catches the eye, is what sells.
Therefore, we design our product in such a way
that when a customer comes to us, it's because of our product
and then because of the taste of the food.
Our mobile kitchens are unique and attractive.
But Sharks, you will have to wait until you see it yourself.
If you say that you want to start a tea business,
I can make a kiosk in the shape of a teapot.
Do you want to sell biryani? We can make a biryani pot.
Do you want to start a pizza brand?
Then we will make it in the shape of a cheese cube.
In short, you think of it, and we'll bring it to life.
Sharks, Indian and international brands love our trucks.
Be it malls, airports, corporates or universities,
you can get to see our product everywhere.
Maybe that's why we have managed
to sell our products in 23 states and 4 union territories.
'You are on the right truck.'
We believe, that not just the food space,
but every business in India
in future will be mobile.
We are a part of that future, so we request you to come on board,
join hands with Schickwheel
- to take the nation wheeling. - Wheeling!
[chuckles]
Sharks, would you like to see our product?
100% Where do we see it?
Sure! Come with us.
- We'll take you. - Let's go.
Oh no, it's Schickwheel!
- Very good-looking. - Really good-looking.
Very good.
Do you sell makeup here?
- You can. We can make a product display for you. - Yes!
- This looks like a makeup vending van. - What is this used for?
So, this is for food basically.
This is a food trailer.
This is the back of the kitchen.
In front, you have the kitchen area where the point of sale happens.
Even the glass is insulated
so that heat doesn't get through.
This way.
[music playing]
Sharks, this is particularly made for South Indian cuisine.
So, the equipment is installed accordingly.
We can make the interior based on what you want to sell.
Sharks, first thing first, the moment you enter,
to the right is the distribution board.
This is the control panel where electricals will be controlled.
After that, this is your gas pipeline.
You will generally see it's connected directly to the cylinder.
We don't do that.
We create a proper bank
where there are two cylinders
so that proper pressure is maintained.
Also, all our materials...
This is double-walled. Look at the thickness.
Outer is GI, which is galvanization iron.
Inside its insulation.
Insulation is again fire resistant.
There are two things, the outside heat won't get in.
Secondly, it doesn't let the fire spread.
[music playing]
Plus, I want you to hold this once.
- I just want to show you the quality. - Sturdy!
- The way it has been done. - It's sturdy.
The quality is good.
You are an expert.
This is where the final dispensing happens.
This is the point of sale.
This is where your bills and everything will be taken care of.
We have a display here.
The food is inside this.
And this is where you can hand the food over.
We have placed a blender and a coffee machine here.
This is a trailer. Which means...
Truck means drivable engine.
If you say you take your vehicle frequently,
- Exactly! - Got it.
- Let's go. - Good concept.
- Very good! - Thank you, ma'am.
[music playing]
- Rishabh and Parth! - Yes, sir!
The trailer was good. We will talk about that.
But first, tell me about your journey.
I did my schooling at Manav Sthali School.
Then I graduated with BCom honours from Shivaji College.
I did my schooling at Modern School Barakhamba Road.
And I graduated with BCom honours from SRCC.
And then I worked at KPMG
and then this business.
And you didn't work.
No, I didn't. 2013 was when my college got over.
In 2014, I joined my dad's business.
For two years, I was with him.
2016 was when we started this.
What is your dad's business?
He manufactured commercial kitchen equipment.
- So, the equipment we just saw... - Absolutely!
That is your dad's business.
- Yes! - How old is that business?
It is a family-run business. It's more than 50 years old company.
More than 50 years old!
How old are both of you?
- I am 32 years old and he's 29. - I am 29.
How much money have you invested in this business?
We started with Rs. 20 lakhs of investment initially.
Our parents gave that to us.
- Both of you are the only partners. - No!
My brother and my mom are 50-50 partners.
And I am a part of the business.
You started this in 2016?
- Yes! - Eight years ago.
- Yes! - Are you doing this since then?
- Yes! - Both the brothers?
- Yes! - Together?
- Of course. - Happily?
Happily!
You know, brothers are always happy.
You can't expect brothers to not argue, that's impossible.
If someone says otherwise, they are lying.
We launched in 2016, we started at an exhibition.
What did your first truck look like?
The first truck was a pink food trailer
When we started, it was with a food truck trailer.
Then we added kiosks also.
When we learned about the cart segment, we ventured into that.
What is the main segment out of the five segments?
Two of them are highest selling.
Food truck trailer is one category.
That is 35% of the business.
Kiosk is 35%.
Kitchen equipment is 22%.
Carts is 8%.
- Are the installments at CyberHub, Delhi, yours? - Yes.
Food trucks... I don't know about CyberHub.
Who are the customers buying food trucks in India?
There are licenses involved, and people have less awareness.
Now, there is awareness.
Because if you want to park your food truck on the municipal land,
you have to get permission from the local municipality.
Are there rules for this?
For example, if I talk about Delhi,
there is a policy called concept based eating establishment.
There are four categories. First is chef cart,
second is e-cart, third is fixed structures,
fourth is temporary structures.
Basically, that policy means
that the area you are occupying
according to that you have to pay a rental to the government.
Tell me, how many food trucks are in India?
There are millions of trucks and trailers.
In organised segment. People create an unorganised segment.
It is in thousands.
- Thousands? - If we talk about organised...
Trucks and trailers only.
Tell me how many trucks you've sold each year
in terms of quantity, and then we can discuss the revenue.
And the price of the trucks as well.
Let me tell you the price first.
Oh my!
And without the truck?
This is a trailer model.
I will make everything in a trailer model,
you have to provide a chassis in a truck model,
- or doesn't want to get a job. - Okay!
- He started this food business. - Okay!
How much money will he need
to start a business with a ready truck?
In case, it's a truck, they have to give us a chassis.
How much will that cost?
If it's a small one, a basic three-wheeler,
a chassis costs around Rs. 3.5 lakhs.
How much does the fabrication cost?
- That will be around Rs. 5-Rs. 6 lakhs. - Rs. 5 lakhs.
This and some raw materials, he can start a business with Rs. 10 lakhs.
- Yes! - Right!
To reduce the cost, you can go with an old truck.- Understood.
If I talk about the revenue,
FY16-17 was our first financial year,
- during which we achieved sales of Rs. 98 lakhs. - Okay.
In FY17-18, our sales amounted to Rs. 1.3 crores.
In FY18-19, it was Rs. 2.5 crores.
In FY19-20, our revenue was Rs. 3.2 crores.
In FY20-21, it was Rs. 3.4 crores.
In FY21-22, it reached Rs. 3.2 crores.
If we talk about FY22-23, the sales were Rs. 5 crores.
Last year, FY23-24, we closed at Rs. 6.8 crores.
And currently, until October 15th,
we've achieved more than Rs. 6.5 crores.
We have current orders of more than Rs. 3 crores.
We will dispatch it by the end of November.
So, we expect to close this year around Rs. 15 crores.
- You gave us the number of eight years. Amazing! - Superb!
Many times, founders come here unprepared.
They have been in the business for around 10 years,
- but they don't know about their packaging and product.
But you know every detail.
So, well done! Great eye for detail.
And very positive and energetic attitude.
How much was your profit last year?
Last year the net profit was 5%, gross profit was 22%.
- We make it in-house. - How long does it take to make one?
If it's a food truck trailer, we ask for 4-6 weeks.
Typically, no one engages in such businesses for just 5%.
Honestly, we are working on it.
Apart from the customisation,
we have seen that some of our models are hot-selling.
So, we're working towards standardising it,
where we pre-manufacture the parts.
This way, we can keep our labour costs in check,
reduce our overall expenses,
and increase our profit margins.
What is the price difference? Are you expensive?
There is a lot of difference, sir.
- If we are selling a product for Rs. 8 lakhs, they... - Rs. 5 lakhs.
- They are selling it for Rs. 5 lakhs. - Rs. 5 lakhs.
Basically, the material is entirely different.
Our interiors have stainless steel, they don't cater to that.
They use normal equipment.
But there are no other organised players.
No one does everything in-house.
- No one in India? - We...
There are organised players in India.
But no one does everything in-house.
How big are the organised players?
In India, there would be just
3 or 4 players. That's it.
- Not more than that. - Who is the biggest player?
- We are. - Us.
I am not able to understand how you are working for 5%.
It's not adding up for me.
Sir, if I tell you the unit economics,
72% is raw material cost.
6% is our manufacturing expenses.
So, the COGS is 78%.
22% is our gross profit, where 8% is salaries
and 5% goes for exhibition, advertisement,
and business promotions.
2% is our rental.
And 2% is miscellaneous expenses, commissions or travelling.
By adding this, 5% is with us.
So, the problem is gross profit if you want to increase profitability.
- When you go to a customer... - Yes?
Do they look at you as a manufacturer or a brand?
We are looked at as a brand.
As Peyush pointed out,
you don't have the pricing power that comes with a brand.
So, we are incorporating that.
Food trucks can be premium,
we have created that.
We've reached a situation where we need to increase that price point
while also reducing our overheads and expenses.
Every year, your growth has been average.
Around 30%.
What happened this year? How did it double?
It's a brand now.
We are getting the leverage of it.
When you want to create a new market,
you have to price it accordingly.
Especially when people have no clue about the quality and what it is.
They compare it with the local players.
So, we need to pull it to us, first.
- And then, we can... - So, you've increased the price.
Some products, yes.
- Because we increased the price... - Hold on!
Give us a straight answer.
In eight years, the sales didn't double, but this year, they did.
Give me the reason. Why?
In the past, our projects
were majorly QSR brands,
individual players and individual outlets.
Now, we are getting more orders from corporate business.
In the past, you used to sell carts more,
now, you are selling kiosks more. Is that the difference?
No! Our clientele is different now.
Give us an example.
- How big was the order this year? - I'll explain. You need to know,
that the normal person buying is earning revenue.
He will sell it to earn money.
Corporate is not making money from this.
For them, it's the welfare of the employee.
They have around 4,000 employees in-house.
He wants something which serves a certain amount of people.
They want good quality too.
So, obviously, their product price comparatively goes up.
Your ATV has gone up. The average order value has increased.
Last year, what was the absolute value of the largest order?
Around Rs. 55 lakhs.
One of our clients, Sodexo, handles facility management.
Different locations... We completed a sale of Rs. 1 crore with them.
Which chains are you associated with?
Two more will be dispatched in a week.
- How many trucks of Domino's? - Nine trucks.
- When did they buy them? - It's been 2.5 years.
Aren't they buying more?
They are. We are developing new models for them.
Tell me something.
By raising an investment, how will you give an exit to an investor?
It is not a business that I think will scale in volume.
Why do you need an investor? You know it all.
When you say about the exit,
we might know how that's done.
We don't know what's the investment game and all that stuff.
We are doing things as per our knowledge. We have the knowledge.
But as they say, to build a big company,
if I aim for Rs. 100 crore, it might take me 4 years to reach that.
But with you guys, it might happen in a shorter time.
My vision is
that just as Colgate is synonymous with toothpaste,
Schickwheel will be synonymous with food trucks and kiosks.
Colgate is synonymous with toothpaste.
Even if Schickwheel is synonymous with food cart,
it still won't be a huge business.
I'll tell you why.
It is not a consumption product.
- Yes. - This is money from the investment in the business.
And the food trucks I've seen don't match this quality.
But it's fine. You can get the job done.
And they are coming at half the cost.
A guy who is thinking of starting a business,
he will not buy your truck.
The only people who will buy your trucks are either brands
or corporates.
If you want to build a big business
and generate returns for investors,
you need to convince us
about the speed at which brands are shifting to food trucks
and how quickly corporates are adopting them
and how big the market can be in the next few years.
Our main product is not just food trucks.
You need to understand that kiosk is also our product.
Which are used by malls, airports,
universities and corporates.
If you are currently building big brands in the food business,
especially for QSRs where people are taking investments
to run at high volumes,
who will set it up for them? People like us.
No, bro!
If you invest in a coffee start-up,
and they want 100 kiosks
- we'll make that. - Right! But your price point is too high.
You mentioned
that what you sell for Rs. 7 lakhs, in unorganised market
it is sold for Rs. 4 lakhs.
That was for trucks.
I will add to it.
If you are particularly talking about malls or airports,
they don't want that quality.
They have a set standard, right?
They won't let you go below that level.
See, I don't agree with you at all. I'll tell you why.
As much as I like you,
there is a component called 91Squarefeet.
They started the business of fit-outs,
which is a highly competitive business,
especially in the corporate sector.
They provide fully built turnkey interiors.
But they have done it in a way
that allows them to deliver at the same cost or a slightly higher cost
while generating a lot more profit through technology and automation.
But what you are saying is different.
You are saying that you'll give a very high-quality product,
but the cost will be very high.
That's the deal breaker to scale.
Just to follow through on Anupam's point,
91Squarefeet has a power use case.
Colgate toothpaste has a power use case, it cleans teeth.
I still don't understand
what your power use case is.
I see a lot of opportunities.
But is there a use case with such high demand
that you won't be able to meet it for the next 15 years?
Our product is installed in malls and airports.
Wherever there is a crowd, there is a need to sell food.
To facilitate this, we set up kiosks in malls.
Do you have a right to win in a mall kiosk?
Because you were unique with this, you have a brand.
- Your equipment. - In kiosk...
Is there a difference between you
and existing vendors in mall kiosks?
When it comes to food
in mall kiosks, not all vendors will be able to assist.
Food is a specialised segment, and only those
with the right knowledge can navigate it.
Rishabh and Parth, first of all, I would say good business.
If you want to scale,
then I think you need to
pivot the opportunity.
There are many people in the food industry
who are eager to start food startups,
but they don't have the CapEx.
If you make this a serviceable model,
while you are doing this on the side
so that I could rent this whole service.
For that, you need to simplify your model.
You should create a standardized cart
with plug-and-play components that can be customised
and offer a variety of add-on services.
There are tools in Shopify.
Then probably you can create an economy.
That is the opportunity to scale this business if you want to.
But now,
I don't know how I, as an investor, can exit this,
especially are Rs. 75 lakhs at 1% without dividend.
That's why I am out.
But this is just an idea for you. Best of luck.
All right, guys! You have passion, determination and enthusiasm.
These are good qualities.
But that does not necessarily mean
that you are ready to become a leader of a big company.
I think these are two different journeys.
From here on, you need things like strategy,
business acumen, raising capital,
ability to scale. These are very different skills, right?
And I am not sure if you are currently ready for it.
Therefore, I am out.
Rishabh and Parth, I think this is a real business.
I like real business.
You've been consistently doing this for eight years.
But this is a long journey.
This journey will go on for around 25 years.
I am not worried about the exit.
I believe that if you continue to execute
with focus, discipline and excellence,
over time, this company
will generate revenue of more than Rs. 100 crores and go for an IPO.
Now, I think the customisation you celebrate in your business,
which you believe is a feature, is actually a bug for me.
You can offer a few things,
but currently, you are willing to make it look like a new house.
I think because of that your growth is slow in this business.
While giving the customer choice,
we can also bring standardisation,
which will improve your margin,
speed of delivery could be 1-2 weeks
instead of 4-6 weeks.
People will start buying more.
So, I have an offer for you.
Actually, I'll give you two offers.
[laughing]
So, I'll give you
That's a very good offer.
I doubt that he is giving the right value to a B2B business.
And B2B business is based on relationships.
You have to reinvent the wheel to bring it to every client.
It entails sales, relationships and tendering process.
So, the multiples in consumer businesses,
based on that, you probably
asked for Rs. 75 crores valuation here.
That can't be applied, especially in backend manufacturing.
We are thinking of building a brand,
but we don't know whether the customer thinks that it's a brand.
However, I really like the team.
We rarely get to see a complete founding team
where the set is complementing. You are passionate
about technology and product manufacturing.
You are into sales, marketing and numbers.
That combination is incredible.
My offer is Rs. 75 lakhs for 10%.
I loved it.
The chow mein they used to make
was delicious. So, Priya, my wife and I
have been looking for that van.
We look for that van and specifically go over there.
We enjoy that food. Okay?
The truck you showed was outstanding.
Both the brothers are fantastic.
You need a third brother.
So, my deal is... I don't think you should give a lot of equity.
You were here for Rs. 75 lakhs.
You must have something in mind. You are smart.
Take Rs. 75 lakhs.
You were here for 1%.
Take 5% and go.
See you.
[music playing]
Dad, we have three offers.
I want to see Gupta Chow Mein everywhere.
'Our sales is Rs. 15 crores for sure.'
'We have that many orders.'
Yes, we do. Okay, I'll see what to do.
And the valuation was Rs. 7.5 crores.
It is half of our turnover.
Sorry, Vineeta. We won't like to accept that offer.
Kunal, we would expect some points.
We managed to make our sales Rs. 15 crores.
- So, we want... - Like what?
Let's be specific.
We would expect a valuation of around Rs. 50 crores
and not below that.
Tell us what your counteroffer is.
Our counteroffer is Rs. 1 crore for 2% equity.
I don't think Rs. 50 crores is the right valuation.
For Rs. 1 crore for 2%, I am out.
Do you want to make the business IPO-worthy or not?
We do.
I know how to do that.
But it will be a long journey.
You're offering very little equity.
I asked for 6% for Rs. 1 crore, but you're offering 2%.
An extra 4% won't make any difference.
If this business becomes big,
you will still own the majority and do very well.
But with 2%,
it won't make any significant difference for us, for me.
Sharks, so sorry. We can't go below the valuation of Rs. 50 crores.
You have zero flexibility.
We won't be able to go below Rs. 50 crores.
Sorry, Kunal. We won't be able to accept that offer today.
Okay, guys! I am out.
Wish you all the best.
You should have done this deal.
You could have closed at 3% or 4%.
With this mindset, how will you grow your business?
This was a wrong call.
- Good night. - Good night!
- Okay! - Thank you!
Bye! Lovely meeting you all.
He was too stuck.
'You obviously rethink this.'
'The moment we exited the tank, '
'we thought if we did the right thing. And then we realised'
'that this is our sales.'
'We deserve that. But they are right on their part.'
'That is their perspective and we have our perspective.'
This is how business is. Stick to your decision and move on.
- Yes! - We did that.
Hello, Rishabh and Parth!
Welcome to PokerBaazi Zone, where you hold the cards.
The thing is there are a lot of similarities
between poker and business.
The game can change at any moment.
The third one is the maturity phase, where we strive to make money
and spend. We are from Delhi.
I want you to share a story related to your business
which is from one of these phases.
- It's from the introduction phase. - Hmm!
In 2016, when we started,
- we exhibited. We had launched our product in an exhibition. - Oh!
And it was just the two of us.
We didn't have a team.
- Our childhood friends and cousins supported us. - Wow!
They were by our side.
And I remember, we took 2,000 cards and we were like,
we will have some to take home.
It was a five-day event, and by the end of the second day,
- our cards were exhausted. - Wow!
That was such
a good feeling that we ran out of cards.
If you excel at skills and strategy like them, visit the PokerBaazi app
and make your winning hand and put your strategies to the test.
Go and download the app now!
[music playing]
- Oh! Cutie! - Oh my God!
Hello, Sharks! We bring to you a challenge.
You have to make these children sit calmly within 30 seconds.
- Are you ready? - Yes!
Your time starts now.
- Come here. - Come on!
Hey!
- He has trained them. - Come on!
- Come here. Where are you going? - Run!
- Look! - Hi!
- Hey! - Hi, come here.
- What is this? - They won't sit.
I caught you!
- Caught you! - You come here!
- I caught you! - Just lift them.
- Do you want something? - I caught you!
Caught you!
Come!
Where did one go?
- Sharks, time up. Time up. - Chase him.
- Time up. It's time up. - He's the naughtiest.
Thanks, I've been skipping my morning cardio.
- The kids did that for you! - Should I catch you?
Wait, we'll help you.
Kids, come here. I have a surprise for you.
Take a look. Play with this.
Sit here.
Did you see, Sharks?
Kids nowadays are no less than baby dons!
After losing to this level of energy and enthusiasm,
parents normally go to only one babysitter,
and they are mobile phones.
Sharks, we present to you Busy Boards by ClapStore
which are a perfect alternative to screens.
Greetings, Sharks.
[Marathi] We're from Pune.
And we are the founders of ClapStore Toys.
ClapStore Toys is a kids' toy brand
that makes specialised toys
to reduce the screen time of kids between 0 to 6 years.
improving their fine motor skills,
...we introduced a new category in India
called Portable Busy Boards.
to over 50,000 happy customers so far.
We envision seeing our Busy Boards in every household
providing relief to parents over kids' high screen times.
So, our ask is Rs. 80 lakhs for 4% equity.
Throw away your mobile phones
and get your kids a Busy Board!
Come on.
- Bye! - So sweet.
- Catch him. - Say bye.
- Bye! - Catch him.
See you.
Yash and Vedang, welcome to Shark Tank.
Tell us about yourselves.
How did you start ClapStore?
I've studied Psychology.
And I've studied BBA.
The lockdown was imposed after grade twelve.
We wanted to prove ourselves.
So, I purchased a domain for ClapStore
and started the business with a dropshipping model.
'Dropshipping is a great way'
'for first-time entrepreneurs to get into business.'
'Without keeping any inventory with you,'
'it allows you to sell your products on e-commerce.'
'You can list the products online'
'which will reach the customers directly from the manufacturers'
'allowing you to keep their margin.'
We ran a dropshipping model for about 1.5 years
to reduce the screen time of kids by making creative toys.
We began selling plastic generic toys.
We'd reached a good scale
but realised our ad creatives were being easily copied.
We knew we couldn't make this a long-term sustainable business
as well as a good brand.
We thought of introducing an entry barrier.
We conducted market research
and identified the global category of portable busy boards.
I ordered MDF sheets at home,
had them laser cut into a box,
brought it home, painted it,
fixed switches and LEDs on it and made a product from it.
I did a photoshoot of it and ran an ad the next day.
I started getting orders from day one.
Thus began our journey of building the Busy Boards category in India.
I don't know what a Busy Board is.
[music playing]
- Oh, are these Busy Boards? - Yes, they are.
Okay.
Give me the Mini one.
I don't know how to operate this. How do I play?
So, it's basically for children aged 6 months to 6 years
that require the development of fine motor skills.
The buttons and switches trigger fine motor skills in kids.
The smaller muscles of the fingers
generate holding powers and writing powers
so that they don't have issues going forward.
Also, it's a replacement for a screen.
Hence, this size.
- Vedang, what does this do? - Yes?
What does this develop?
- So, the aux wire... - Should I put it here?
- Right, yes... - Then?
- A light will glow. - And then?
That develops hand-eye coordination in kids.
And the glowing light helps kids with colour recognition.
- Nice. - Cool, it'll keep kids busy.
Yes, exactly.
- The name's good. Busy Board. - Busy Board.
Busy Board!
- They'll be busy pressing buttons. - Give me that, Vineeta.
Busy for how many minutes is the question.
How much time will a kid spend on this?
We've spoken to about a thousand existing customers.
They say their child plays with it for 10 to 15 minutes at a go
and about 3 to 4 times a day.
I must admit
The quality, finish
- and the branding are pretty good. - Yes.
- Great. Now, this is a solar system learning... - Yes.
Solar Galaxy Explorer.
And I have been trying
to teach the solar system to my son for some time.
But this is much better
- because it has these motor skills, right? - Yes.
I'll buy all your boards one by one.
Creative play.
The kids will learn some skills while playing.
Very different and very cool.
- Tell me something. - Yes.
Your entire business is predicated...
- Your claim is... - [music playing on toy]
We are trying to get...
Do you see this?
If kids are given a Busy Board,
it'll be worse than screen time!
We have boards without sounds too.
- Give it to him. - Buttons...
Don't sell anything without sound.
We'll use boAt for the sound.
Yes, no one else.
So, the biggest issue is
- that screen time is bad for children. - Yes.
Are there any definitive studies about how bad it is?
It's mainly mindless screen time.
If kids use the screen for studying purposes, that's important,
but mindless screen time is what is hampering them.
Many countries have come up with strict regulations.
'No social media or social network'
'for children below teens.'
- For instance, Australia. - 16 years.
- They've set the age to 16. - Yes.
- In Europe, there are a couple of countries... - [music playing]
- Where they're debating over 12 years. - Right?
- So, if you're not able to use social media or network... - Hmm.
Kids wouldn't be having any screen time.
For 0 to 6 years,
- we don't want them using phones. - No matter how much you control.
Yash and Vedang, tell me something.
You must be 23 or 24.
- I'm 22 and Vedang is 21. - 21.
I'm sure you don't have kids.
Then what inspired you to make Montessori toys?
We used to sell plastic Chinese toys before.
They were being easily copied.
So, we built our own product to create an entry barrier.
We started selling it and took customer feedback.
The customers demanded Montessori toys.
- So, the customers asked you to make Montessori toys. - Right.
These can be copied too.
- Definitely. These can be copied too. - Yes.
We are ready for it.
In the last three months, we have invested in manufacturing.
- I want to show it to you. - Yes.
- That's very interesting. - Hang on.
We tried to crack it for many days but in vain.
- This one. - Then what worked?
Give it to me. I'll crack it in one second.
You have to do this.
- This is cool. Great! - [music playing]
What is this prototype?
We took customer feedback.
They wanted something that was touch-enabled.
So, majorly it senses the touch.
Hang on. Complete the story first.
You were talking about your defensibility.
- Right. - Please complete that.
There are two main factors that determine defensibility.
The first is our R&D process
which we've strengthened in the last 3 months.
The second thing is our brand entry and positioning.
If anyone wants screen replacement, we want them
to come to us ClapStore Toys.
And that's a unique character to copy.
We think our defensibility will come from offering more products.
We will have the first-mover advantage obviously.
So, even if there is competition,
we will make new SKUs
which will be more engaging than the previous ones
and we'll try to acquire new customers.
Can we see your factory?
- Um, sure. - Yes.
- Yes, photos of the assembly line. - The assembly line is of two types.
The box is built in a factory and then goes to the assembly line.
Oh, so it's made manually or by hand.
No, the PCB is ready. We just plug and play.
Did you design the PCB?
I made the first product at home.
Then we approached the supplier and they designed it.
Could you tell us about the pricing?
We sell this at discount.
They range from Rs. 500 to 1,800.
How much does this cost?
- That is Rs. 500. - Rs. 499.
- Very good. - What about Rhyme House that says Rs. 2,500?
Rs. 1,500... 1,499.
When did you start selling?
We launched this product in January 2023.
Okay. What was the revenue in 2023-24?
Rs. 2.54 crores.
Wow!
And we've done Rs. 2.4 crores so far in 7 months.
- 7 months. - We did Rs. 62 lakhs last month.
- That must be because of Diwali. - This month, we'll do Rs. 70 lakhs.
- Yes, we've done Rs. 12 lakh so far. - Okay.
How much did you do in August?
In August, we did Rs. 33 lakhs.
- Projected sales for the year? - Rs. 6 crores.
How much profit will you make?
Our EBITDA is 18%.
What was last year's profit?
It was less last year.
Our PAT was 2.7% as we were looking for a PMF
and doing third-party manufacturing.
- Good... - They're familiar with the terminology!
- All the words! - Yes...
How many times did you watch Shark Tank?
Many times, all the episodes.
We watched all the episodes before coming here.
Tell us your equity split.
31.5%.
58.5%.
And 10% is with investors.
Who is the investor?
Last year, through WTFund.
It was released through Nikhil Kamath's podcast.
Around 1,500 companies had applied.
There were two winners and ClapStore Toys was one of them.
So, it was Nikhil Kamath, Kishore Biyani,
Anand Shankarnarayan and Raj Shamani.
- How much did they invest? - Rs. 10 lakhs each.
- Rs. 10 lakhs.
- How much equity? - We diluted 10%.
- Total investment? - 2.5%. Rs. 40 lakhs.
- At what valuation? - A flat valuation of Rs. 4 crores.
- So, Rs. 20 crores. - Yes.
Your valuation went from Rs. 4 crores to 20 crores!
They saw our last month's revenue and calculated our ARR.
- When did it hit the bank? - March.
About Rs. 15 to 20 lakhs.
How much inventory do you have?
Rs. 5,000 inventory worth about Rs. 45 lakhs.
45 on cost?
- Selling price. - Selling price.
We'll know from their unit economics.
Our cost of goods sold is 35%.
Then comes logistics and packaging at 10%.
Marketing comes to 24%.
Then come our fixed costs at around 13 to 14%.
So, our EBITDA is around 18%.
Let me ask you a question.
I don't understand why your sales have increased.
There is something you are doing which is unconventional.
What is it?
Since this was a new category,
we knew we had to create brand awareness.
So, we collaborated with 30 to 40 influencers per month
who post reels every day which we use as our ads.
- Baby influencers. - Yes.
- So, this spend comes under your 24% marketing spend. - Yes.
Could you break this down?
Let's suppose your sales in any given month is Rs. 50 lakhs.
How much does the influencer get?
No, we barter! They're barter collaborators.
We have a team.
We ask them to post and use their videos as ads.
- Amazing. - We look at the quality and not their followers
because we've to use them as ads.
Good one, man! You've cracked this well.
Marketing that content
in a format of direct selling is fantastic
because you've to create a category.
Yash! Vedang! Where do you want to go from here? What's the vision?
We want to achieve a sales of Rs. 2 crores a month in 12 months.
[chuckles]
- Will you? - Yes.
What's the process? How will you do it?
What's the share of these channels?
Amazon's is 50%.
40% is from our website and 10% from the remaining channels.
There's still a lot of room for growth.
- Yes, definitely. - As you go on other channels...
We've to work on the supply and demand.
- So, supply is your main problem. - Yes.
Not demand.
- Not demand, we've to manage supply. - Supply.
Yash and Vedang, let me make you an offer.
I really like you two.
The offer is Rs. 40 lakhs for 4% equity.
And Rs. 40 lakhs debt at 10% interest for 2 years.
...that your energy is high.
- Thank you. - Secondly, you're fast learners.
You can even think of building a LEGO in the future
- around this. - Exactly.
And I see that hunger and passion.
I'll make you an offer. Rs. 80 lakhs at 8%.
You wanted to dilute 4%.
An offer of 8%. That's too little.
Okay, let's do one thing.
I think the pivot you took was the biggest highlight.
You've done such fine work.
Even though you don't have kids, you figured out the problems.
So, obviously, you possess customer-centricity.
It needs to be formalised as you scale,
but I think when the time comes,
you'll make another pivot and add more categories
- as long as you stay with screen-free childhood... - Yes.
- It's a very interesting proposition. - Yes.
Let's bet on it today.
Let's make this fair. You'll get two Sharks also.
Aman and I will come on board. Rs. 80 lakhs for 7% equity.
I think it's fair and square.
- But they need help with the supply chain. - A good deal.
- So, what... - We know the make-in-India supply chain.
[chuckles]
Fantastic founders.
Forget your age.
Even if you were 32 years old,
the clarity with which you're building your business
is very impressive.
Your sense of positioning a brand to the consumer
is very solid.
So, I'll also make you an offer.
I don't think your ask is too off.
- So, my offer will be Rs. 40 lakhs for 2.5%. - Okay.
Which is a valuation of Rs. 16 crores.
And on top of that, Rs. 40 lakhs debt.
- Same 10% interest for 3 years. - Okay.
are not necessarily people of pedigree
or the smartest,
but they're learning machines.
I don't see where the company and founder are currently.
- What I see is, five years down the line... - Correct.
Where will this founder and business be.
- Given your trajectory, you're going to do well. - Yes.
What deal would you like to close?
Oh!
Okay, I'll change the offer.
Rs. 80 lakhs for 4% equity. Whatever you ask.
Okay!
But you say yes now.
- No, don't say yes now. - Say yes now.
[laughs]
I give... Anupam and I will come together.
Say yes now.
Say yes now...
At least let us hear it, please.
So, we will come on board together. Okay?
At your original ask. Rs. 80 lakhs for 4% equity.
If you want more, just say so.
No. This is our requirement, we don't need more.
I think you should decide who you want as a partner.
- Yes. - Everyone here is good.
If you want to build a big business,
you'll also need
- institutional investor support. - Right.
- We could give you that. - Okay.
So, I too am ready to give you Rs. 80 lakhs for 4% equity.
[tense music playing]
Can we get all five Sharks on board for 5% equity?
I won't do a five-Shark deal.
Hey, no?
You don't want to do it! What happened?
Not in the mood.
Please, Anupam.
Why do you want so many founders?
The expertise you serve and they serve are very different.
If you want an all-Shark deal,
that 1% equity doesn't bring closure.
Unfortunately, with a low equity of 1 or 2%,
people stop paying any heed.
I'll tell you very honestly. You guys are too early.
The idea is to get to work with you.
I don't know how the business will turn out,
and in future, you will need money.
Hey, don't intimidate us. Sit down.
- No, I'm just talking... - Sit down.
If you guys want an all-Shark deal, let's talk about it.
Peyush, are you in for an all-Shark deal?
That's what I was saying.
- That... - What about you?
- Yes! - I'm okay, let's do it.
- Let's discuss this... - Then there will be only one deal.
Let them go so we can talk openly.
We will be back.
We cannot do all-Shark if one of us leaves.
Let's not squeeze them dry. They're kids.
No, I'm not doing it then.
Six... Three months ago,
- they gave equity to Nikhil Kamath at a Rs. 4-crore valuation. - Yes.
You're converting that Rs. 4 crores to 20 crores in 4 months.
- Their run rate... - Don't you think they might not have checked it?
They have a one-month run rate because of Diwali. That's gone.
- They must've seen the trajectory. - The bet is on the founders.
The bet is on the founders.
- That's why I said let's discuss. - Rs. 5 crore revenue run rate.
Rs. 1 crore for 10% is the only deal we should give. That's it.
- I'm okay. - Fine.
- Yes? At least we have skin in the game. - Hmm.
I think we'll have to go from Rs. 10 to 14 crores...
It's not a big deal.
- In the larger scheme, we should hold equity. - Yes.
I am sensing
- they will not give 10% equity. - Okay.
- Let's see. Then we'll talk. - We've to move to royalty.
- Is it okay if I drink water? - May we?
Yes, please drink.
- If you need something else, please drink that also right now. - No.
You want to play with your toy for two minutes?
[laughter]
Look. When all five Sharks come on board together,
we'll be bringing a lot of value.
You were just saying something else!
[laughter]
No, let me tell you what I meant.
There are five fingers and each one has a different use.
- Sometimes, you need this one too. - Yes.
So, we will give you a combined offer.
That's the only offer you have.
- So, we'll offer you Rs. 1 crore. - Okay.
For 10% equity.
[tense music playing]
- What is it? - We'll do it.
- You have a deal. - All right.
Thank you so much.
- Yes! - I'd have taken them all.
- This is a great deal. - Yes, really good deal.
'Given the expertise the Sharks will bring,'
we feel that 2% justifies its value.
So, we didn't think much.
- Value addition... - Value addition was enough
because valuation can be generated going forward too,
- but value is what we needed. - We got some great minds.
Yes.
- Hello, Yash and Vedang. - Hello.
- Welcome. - Yes.
How did it go?
- Great. - It was a lot of fun.
We got a five-Shark deal. So, we're really excited.
- Like a dream. - Yes.
- Did you imagine it'd be so great? - Yes, we did.
- Five-Shark... Really? - Yes.
It's a big thing also.
Kids spend so much time on the screen.
I fear my kid might address the phone as "Dad"!
- Kids nowadays are glued to phones. - Yes.
We are... Take care. We will take care of it.
One hundred percent. Of the kid also?
- Yes. Of the kid and... - [laughter]
He don't... He will call you dad.
Yes, okay. Make sure he does.
Wouldn't it look strange
if we scolded them and they did this?
[laughter]
I was a teacher before this
and I know how difficult it is
to keep kids engaged without a screen.
- You're doing a great job by keeping them entertained. - Thanks.
I'm sure you have your sources of entertainment too.
- So, I got you a gaming console from Swiggy Instamart. - Great.
- It arrived in 10 minutes. - Wow, great.
Thank you so much, friend.
- Here. - Thank you.
Do you play games?
- Yes. - Yes, but we prefer board games.
You're off-screen guys!
I'll order Catan for you.
Very nice game.
Available on Swiggy Instamart, delivery in 10 minutes.
- Great. - Definitely.
Friends, don't be bored in life. Do something interesting.
Play games if you want.
Log on to Swiggy Instamart and order whatever you want.
You get everything. Order now.
I know you very well.
You want to give real time feedback during cricket.
"This shot should have been played like that."
"He should have taken that shot."
Predict who gets the funding
and win prizes like iPhones, iPads and many more.
Go on the Lenskart app or Lenskart.com right now.
[theme music playing]
[theme music concludes]
Leading with food!
- Yes. - Best strategy.
It's part of the pitch.
- They're fruit bars. - Thank you.
Thank you.
- Here, sir. - Thank you, bro.
Thank you.
'One fruit bar. Daily fruit fix.'
Oh, this is like 'aam papad'.
- Oh, I like 'aam papad'. - I love 'aam papad'.
I love 'aam papad'.
This has a lot of sugar.
Hmm, yum!
- Sharks, what do you think of our bar? - It's good.
- Is it tasty? - They're nice.
Can you believe
without any added sugar and preservatives.
but none of these fruits ever make it to your plates.
The farmer discards them at the orchard itself.
Why? Because they will get spoiled in transit.
Just like this, every year,
farmers discard 15% of their produce
resulting in annual losses of Rs. 90,000 crores.
Inspired by nature,
what if we were to connect
this Rs. 90,000-crore problem of wastage
to the Rs. 2,00,000-crore food market?
With this thought in mind,
we built Raheja Solar Food Processing.
My name is Babita Raheja.
My mother and I started this company from our rooftop
and built the world's most affordable
and portable solar dehydrator.
nutrients as well as its aroma
for up to a year without any added sugar or preservatives.
to provide on-ground training to farmers along with the dryer
instant noodles and instant tea industries
with a market of Rs. 2,00,000 crores.
In association with over 1,000 micro-entrepreneurs,
we've supported over 65,000 farmers throughout the country.
Varun! Babita!
Sure.
[joyous music playing]
Here are the ingredients.
These three are the ingredients and the other two are flowers.
You could smell them.
What you're tasting is a pineapple from Manipur.
Delectable.
It is free of sugar and preservatives.
It's a naturally plant-ripened pineapple.
It does have natural sugar.
- Fructose. - Yes.
Nice.
The second one is mango.
This is the mango grown by the farmers in Andhra Pradesh.
It's fine on the inside,
but owing to spots, farmers can't take them to the market.
This is good too.
The third is grapes.
These are grapes that have fallen to the ground.
We've dried them with the help of a solar dryer
that runs on solar energy.
You don't need to use any additional chemicals
as the drying is controlled.
What did you study?
Professionally, I'm a mechanical engineer
from Indore.
During college, I did research on farmer suicides.
And in the fourth year, we started Raheja Solar Food Processing.
- So, you haven't worked anywhere. - No.
- You started with this. - Yes.
- I... Yes. - Why did you do research on farmer suicides?
When I was studying engineering,
the fathers of 50% of my classmates were farmers.
No father wanted their child or son...
- To become a farmer. - To do farming.
Then I researched the problems.
That's when I learned that
the main reason for farmer suicides was food wastage.
When prices fell due to market fluctuations,
farmers had to throw away the produce.
When I quantified it, it was a wastage of Rs. 90,000 crores.
What did your father do?
He's a shopkeeper and has a business in Indore.
- All right. - Okay.
What's your background, ma'am?
- I was a housewife. - Okay.
It was his passion to do some good for others.
If your intentions are good,
we all know that doors will open to you.
Mom and I researched this for two years.
- And... - Then came the phase to dry the products.
We experimented with drying the products in the dryer.
We learned when the product gets spoiled
and when to take it out for an increased shelf life.
If we take it out sooner, the product gets spoiled.
We tried all the products from flowers and fruits to vegetables.
- Hmm. - In the end, the conclusion was
that the dryer does an amazing job of drying the products.
I'd never seen anything like it.
I've never been abroad or seen something like this.
When I worked with this and the products turned out great,
we began educating the farmers.
We had given machines to the farmers
but they had no idea how to use it.
Are you both the company directors?
Yes, that's right.
Is anyone else involved in the business with you?
No.
Varun, can you tell us what your business is exactly?
Do you sell this device,
the dried products or both?
- Is your revenue from the dryer... - 90% comes from the dryer.
10% of the revenue comes from dried products.
That's because when the farmer dries the product,
we have to sometimes buy it upfront
as you can't create a category of a new product directly.
- So, it's a dryer business. - Yes, majorly.
What's this mini dryer?
Sir, this is a miniature version of the machine
which is 100x smaller.
- Okay! - The machine is 100x bigger and weighs 1,000 kg.
So, this is not the machine.
- Is there a video you can show us? - Yes.
- [birds chirping] - [wind whooshing]
'So, the harvest yields 250 sacks of carrots'
'out of which 40 to 50 sacks are rejects.'
The traders buy the good produce
and leave behind the rejects.
'We do farming and agriculture, sir.'
A few quintals of produce turns out bad.
'5% falls to the ground.'
That's wastage and no good.
'Customers, vegetable sellers and grocers pick the good produce.'
The rest has to be discarded.
In our country, about 10 to 15% produce
of fruits and vegetables is discarded on farms.
You won't believe it,
but this is a Rs. 90,000-crore problem in our country.
'Our company supports small farmers'
'with excess produce who're unable to find buyers.'
'that converts it into a new form as a dried product'
'instead of having to throw it away.'
[inspirational music playing]
'Solar dryers work on a technique called the greenhouse effect'
'that traps two things when the sun comes out,'
'The magic of the solar dryer lies in how it traps and controls heat.'
'After the solar dryer is set up,'
the farmer brings the excess products from his farm.
Along with the installation of our solar dryer,
our mobile app is also installed for the farmer.
'Add hot water and your soup or gravy is ready.'
'These products fall in the snack industry.'
We wondered if we could convert that wastage worth Rs. 90,000
into products having a market of Rs. 2,00,000 crores.
That served as an inspiration
to solve this problem and become a medium.
Average life... How long does it take to dry them?
About 2 to 2.5 days.
Once dried,
- what's the shelf life of the fruit? - One year.
And how much minerals and vitamins does it retain?
- Suppose I'm eating a pineapple and compare it to this. - Right.
What percentage of nutrition would this retain?
At 60 degrees, the loss is 20 to 30%
because you took it to a certain temperature.
- And when... - When you cook it and make a pulp,
you're taking it to 100 to 150 degrees.
- That reduces minimum 50% nutrition. - Okay.
- So, apart from 20 to 30%... - Yes.
- The rest 70% is retained. - Yes.
Mint leaves.
- Mint leaves... - Not mint, they're curry leaves.
- And bitter gourd. - Bitter gourd, right.
Okra too. Can this be eaten as it is?
So, curry leaves... You get instant 'sambar' powder.
- You could... - What do you use this for?
Sir, vegetables are not eaten like that, they are used.
In spices and other things.
Where will you use dried onion?
Instant biryani or anywhere.
Basically, you can use it in everything.
If you don't have onions, just make its gravy.
Or dip it in water and make a puree.
- You can also add it directly to vegetables. - Got it.
How much investment is required for this?
The small system starts at 25000 and goes up to 3 to 3.5 lakh.
So this model is mainly used by micro-entrepreneurs.
Like a flour mill, one person sets it up and everyone around uses it.
Farmers form a group and set up the system together.
One farmer uses it, another farmer also uses it.
So you create micro-entrepreneurs for this?
We approach micro-entrepreneurs through on-ground partners.
Like our on-ground partners are Tata Trust,
Reliance Foundation and HDFC Foundation.
These foundations have boosted farmers' productivity for 50 years.
Their challenge is failing to scale the market.
- How big is the market? - Two lakh crore market.
- Two lakh crore? - Two lakh crore exactly for what?
- How much is in India? - Almost four billion in India.
What is your sales model? How do you sell this to farmers?
- Does your sales team visit them? - We have sales team on the ground.
We have partnerships, so we mostly get repeat orders.
We did two trials with Tata Trust four years ago.
Three years ago, they installed 10.
This year, they set up a project worth two crores.
They see that this is a successful project, and there is market demand.
Is this a single project or support for multiple farmers with two crores?
No, multiple farmers. There are also multiple locations.
What revenue are you generating? How many farmers have you reached?
How many machines have you installed? Tell us everything.
Sir, so far, we have connected with almost 65,000 farmers.
We have installed more than 7,000 machines.
You input 20 kg,
and after drying, you get two kg output. It is a 10:1 ratio.
- What is the rate for 20 kg? - 25000 rupees.
So how much would that be?
Twenty-five multiplied by 7000.
Eighteen crores.
- So you have done 18 crore in sales? - Yes.
- In the past five years? Okay. - Yes.
Shall we move to annual now?
- Sure. - Okay.
Last year, 2023-24, we did seven crores.
- Okay. - Wow!
The year before, 2022-23, we did 3.6 crores.
In 2021-22, we did 1.8 crores.
And in 2020-21, we did almost 50 lakhs.
And this year?
So far, we have done six crores.
How much will you do?
We will do 14 crores this year.
Sir, we are 10 per cent profitable.
Out of 15 crore revenue this year, how much will come from produce?
Three crores.
Do you have bad debts?
- Sorry? - Bad debts,
meaning unpaid dues.
For example, in last year's
seven crore sales, how much was unpaid?
Almost 20 to 30 lakhs.
Some government projects take time to clear payments.
Sometimes, it takes two to three years.
Is a large part of your sales from government projects?
Initially, it was a lot, but we are moving out of government projects.
Do these foundations like Tata Trust and Reliance Foundation
also buy from you?
They only subsidise it for farmers.
How much do they subsidise?
Initially, it was up to 80 per cent.
Recently, it has come down to 10 to 20 per cent.
What is the margin on the dryers you sell,
and how much margin will you make on the three crore
B2B dried finished products
sales this year?
Our gross margin on dryers is around 45 per cent.
who have set up the system.
With an average range of 1.5 to two lakh,
it's around 25,000 rupees. I am talking about profit.
If they have a 200 kg dryer, they get 200 kg output per month.
What is the value of 200 kg output?
Up to 40 per cent goes to the farmers.
So he retains 25000, and the remaining 35 per cent...
Yes. 40 per cent. In some cases,
- sometimes even 70 to 80 per cent. - Okay.
- And this is his average income? - Yes, it's average income.
And the setup cost for this is two lakh?
Yes, 2,00,000 rupees.
So he recovers it within a year?
One to one and a quarter years, because seasonality plays a role.
Not bad!
What is seasonality? What happens during monsoon?
It doesn't work in monsoon as there is no sunlight. It's a solar system.
Backup systems are available, but we don't usually suggest them.
And in winter?
It works perfectly well in winter, no issues.
Okay.
Sir, shall I explain the funding?
- I mean the funding situation? - Yes, go ahead.
Earlier this year, we raised four crores from four impact investors.
It's a convertible note round,
with a floor of 40 crores and a cap of 50 crores.
You said you have a 50 per cent market share for solar dryers.
That means the total solar dryer market
is 25 to 30 crores annually if you do 14 crores this year.
But you also mentioned that
the dried produce market in India is three to four billion dollars,
- around 30,000 crores. - Correct.
So out of this 30,000 crore market,
how much share does this
thirty crore infrastructure hold?
You can estimate it at around 60 to 70 crores.
Two hundred crores. Based on your calculations,
if the farmer's share is 60 crores, the total comes to 200 crores.
Let's agree with her. She studied at IIT.
Okay, 200 crores. And it makes sense.
If there are dryers worth 30 to 35 crores,
and 200 crores worth of produce is generated,
then it makes sense
that 10 to 20 per cent would be spent on infrastructure.
I understand.
If we remove 200 crores from the 30000 crores
dried produce market, how is the remaining 29800 crores
of dried produce being processed?
It is currently dried using sun drying and electric drying.
Then electricity is used for drying,
which increases the cost.
How will you increase your market share
from almost nothing to 10, 15, or 20 per cent?
How will you turn this into a big company?
Sir, we want to create a demand-driven company.
We are entering the market, attending exhibitions,
and expanding exports by onboarding distributors to increase demand...
At this rate, it will take you 20 more years to reach a certain scale.
No, because a market already exists for many of these products.
Look, guys, I really like your intent.
Your purpose and passion are great. Amazing.
The enthusiasm with which you talk about this is very infectious.
But I feel this business is not a business yet.
You have to think of it as ecosystem development.
That will require a shift in thinking.
You need to project what this market will look like
in 10 years. Will the 30000 crores become 60000 crores?
How can 10000 crores worth of produce pass through your system?
Then, work backwards to make that happen.
For that, you'll need capital, co-founders,
- and a lot of strategic thinking. Right? - Right.
It won't work otherwise.
That's why I'm out. I don't think I can help you with this. Good luck.
Thank you so much, Anupam.
Varun, right now, I feel this is a dealer-distributor-led business.
You want to turn it into a market-driven service business,
but unfortunately, it hasn't reached that stage yet.
Fine!
Varun and Babita, I feel that in this journey,
your initial product
Otherwise, you wouldn't have reached this stage.
- So, I'll make you an offer. - Well done!
Fifty lakhs for two per cent,
That's very fair!
Vineeta, thank you for your offer.
Firstly, I am very impressed with you, Varun.
I think your attention to detail is outstanding.
And it's evident that after trying multiple things, you have found
- Right. - So, I also want to make you an offer.
Fifty lakhs for two per cent is my offer to you.
Because you started from hardware, and it's your passion
so your main job is to go and sell hardware.
Then you'll think about the produce that's coming
and whether it can get a place in the market or not.
Compared to saying, 'We have the hardware too'
'but our main business is'
'to organize this 30,000 crores market.'
'Right now, we have too many stars in the business.
They are all good things.
But I think for the Indian farms, mechanization
and IoT leveraging is going in the same direction.
You're riding on the right wave.
I feel that this real business that you've made
will become a company with an IPO.
- I'd like to give you an offer. - Oh, wow.
I can't do the one or two per cent.
Because then there's no skin in the game.
- I'll give you two offers. - Okay.
You can go outside and discuss.
Okay, thank you so much.
[pensive music playing]
Vineeta...
[phone ringing]
- 'Hello.' - Hello. Hi, Mr Saif.
- 'Hi, Varun.' - Uh...
We have three offers.
What do you think, Anupam? What will happen?
- Whatever has been happening will happen. - Huh?
Optimize for equity.
'What we can do is, rather than 2% we can give 1%.'
I think the space is good, but there is too much work.
- Where is there no work? - The interesting part is only 10%.
- That will come. - It will get done. - Yes.
Wow. Come in.
- Welcome back. - Yes, Varun.
Thank you so much, all the Sharks, for the offers.
We have a counter offer.
Because we already raised funds at convertible note at 40. Floor.
We'd like to bring it at the same floor. At 40 crores valuation.
At 50 lakh rupees at 1.25% equity for Peyush and Vineeta.
Even for Kunal,
we might not go for 2.5 crores.
But we would look for 1.25 CR.
At the same valuation of 40 crores.
Would you do 50 lakhs for 2% equity?
Vineeta and I will come together.
My offer is also the same.
25 crores valuation with 5% equity for 1.25 crores.
- Okay, relax... - You have two options, let me tell you.
- One offer is that Vineeta and Peyush will come together. - Okay.
With 50 lakhs for 2% equity.
One offer is his.
That's 1.25 crores for 5%.
Now you have to decide what you want to do.
Is it possible for all three to come together?
That they can talk to each other.
He doesn't want anything less than 5% equity.
What do you have to say?
The concern is the valuation with the last investor will
come down, because it was done via convertible notes.
- In the next round... - That will not come down.
We'll figure that out separately,
how to structure our advisories.
So that your other investors don't feel compromised.
We are coming at a 40 CR valuation.
- But with advisory addition for all three. - Yes.
Your advisory is 0.375, 0.375 and...
- His will be more. 2%, I think. - 2%.
- Shall we? - Hmm.
- The deal is final. - Okay. - Awesome. - Great.
[triumphant music playing]
- 'Thank you so much. - Thank you.'
- Thank you, congratulations. - Thank you, Peyush.
Bye, ma'am.
'I did not imagine that even after answering the tough questions...'
'I thought I wasn't able to convince them completely.'
'I did not think that I would get an offer.'
But in the end, to get an offer from three Sharks in unimaginable.
What I saw in Raheja Solar is,
for one, it's a rising tide.
Solar oriented businesses
is a rising business. Even the government is pushing it.
Secondly, the dried snacks,
are taking off in the global market.
Because they are the healthiest snacks.
There is nothing in this. It's just fruit.
If this level of production is possible in India
and this company can consolidate this production
and supply to Indian brands to the International brands,
high-quality dried snacks.
I think it's quite a good opportunity.
If this portion wasn't there in the business, then I wouldn't invest.
Welcome to ACKO Change Makers where we really welcome change.
We saw a similar portrayal on our Change Makers Wall.
Through agritech innovations, we are making
a digitally empowered sustainable future.
Our Change Makers, Varun and Mrs Babita are with us.
And through innovation, you're also encouraging sustainable approach.
My question is on behalf of our viewers at home.
What changes can they bring in their day-to-day life
with which they can reduce the food wastage.
Firstly, the choice has to come from our hearts.
As human beings, we are very greedy.
- We try too hard to buy something. - Hmm.
If we just buy what our requirement is
then that will be the biggest change we can bring as a person.
Hmm. You're bringing a great change.
Similar to how ACKO is changing the insurance
landscapes with its revolutionary offers.
Get rid of innumerable calls while buying car insurance.
Avoid confusion regarding the price and policy coverage.
Take a car insurance directly from ACKO.
It's easy, transparent and hassle-free. And the premium is also great.
We'd like to give you a gift from ACKO and Shark Tank for your change.
[music playing]
'Shark Tank India, co-presented by ACKO Insurance,'
'PokerBaazi and Swiggy Instamart.'
'Co-powered by Adani, and Jaquar Bath and Light.'
'And partners, Rayzon Solar, ICICI Direct,'
'Lenskart and Sofy.'
Welcome to Ask The Shark.
I'm fine. I'm earning a lot of money, I'm having fun.
- Today's question for you is from 22-year-old Akansha. - Hmm.
She's from Mithilanchal.
I mean, often when we ask people about repeat,
...instead of telling us this,
they tell us about how many sales were due to
the repeat customers during a particular month.
But that is not useful to judge about the business.
Because suppose my business
is not getting any new customers
then your repeat will be 100%.
This was today's 'Ask The Shark.'
We'll meet in the next 'Ask The Shark' with a new question and a new shark.