1 00:00:32,960 --> 00:00:34,800 [theme music playing] 2 00:01:00,360 --> 00:01:04,360 My first ride was... I learnt to ride systematically. 3 00:01:04,480 --> 00:01:08,120 I felt that I could turn this into my passion. 4 00:01:09,400 --> 00:01:11,200 Motorcycling is an experience you can have by yourself. 5 00:01:11,240 --> 00:01:13,320 You get a chance to talk to yourself. 6 00:01:13,400 --> 00:01:16,640 You see the world at a 180-degree angle. 7 00:01:16,720 --> 00:01:19,680 You feel the breeze. 8 00:01:21,240 --> 00:01:24,400 How do you glide, and how do you navigate corners? 9 00:01:24,480 --> 00:01:26,400 It is some experience. 10 00:01:29,200 --> 00:01:30,920 [engine whirring] 11 00:01:33,440 --> 00:01:36,040 The rider group is equal to brotherhood. 12 00:01:36,120 --> 00:01:38,560 We established the first riding club in Madhya Pradesh. 13 00:01:38,640 --> 00:01:40,080 Born To Ride Club Bhopal. 14 00:01:40,160 --> 00:01:43,240 The riding community in India is strong. 15 00:01:43,320 --> 00:01:48,080 I consider myself fortunate to be an integral part of it. 16 00:01:50,920 --> 00:01:53,240 No rider in the world would say, 17 00:01:53,320 --> 00:01:55,120 'I am not afraid of riding.' 18 00:01:55,200 --> 00:01:58,120 'I've been riding for 12 or 25 years.' 19 00:01:58,280 --> 00:02:02,040 When there is that fear, we have faith that there is someone. 20 00:02:02,320 --> 00:02:04,560 If I fall, he will save me. 21 00:02:04,640 --> 00:02:06,720 He has my support because he is behind me. 22 00:02:06,840 --> 00:02:08,680 He will manage if anything has to happen to me. 23 00:02:12,760 --> 00:02:16,400 We meet people from various fields and professions. 24 00:02:16,560 --> 00:02:18,160 We don't let age be a barrier. 25 00:02:18,240 --> 00:02:19,400 We learn from each other. 26 00:02:19,480 --> 00:02:22,240 This isn't a coaching class with a three-month course. 27 00:02:22,320 --> 00:02:24,720 This is life. It will teach you gradually. 28 00:02:24,880 --> 00:02:27,000 I've been riding for 14 years, 29 00:02:27,080 --> 00:02:29,200 I am learning something even today. 30 00:02:31,640 --> 00:02:32,800 There are speed breakers 31 00:02:33,000 --> 00:02:36,000 that you don't plan ahead of time. It is the same with life. 32 00:02:36,120 --> 00:02:38,920 Ride and life go hand in hand. 33 00:02:39,040 --> 00:02:41,920 Therefore, I believe that life is an adventure. 34 00:02:42,000 --> 00:02:44,600 This is a journey that you have to enjoy. 35 00:02:44,720 --> 00:02:47,400 The goal is not to reach from point A to point B. 36 00:02:47,480 --> 00:02:50,640 You need to have a good story to take with you. 37 00:02:50,760 --> 00:02:53,600 You can reach a destination on a flight. 38 00:02:57,520 --> 00:03:00,640 [engine whirring] 39 00:03:11,720 --> 00:03:12,760 Whoa! 40 00:03:18,480 --> 00:03:19,800 [phone ringing] 41 00:03:19,960 --> 00:03:20,960 Whoa! 42 00:03:23,000 --> 00:03:25,280 Yes! Where are you headed for a ride? 43 00:03:25,840 --> 00:03:28,160 Yes, I am coming. Let me finish my pitch. 44 00:03:29,440 --> 00:03:30,440 Yes, okay! 45 00:03:31,320 --> 00:03:34,040 Sharks, by observing my behaviour, you must have realised 46 00:03:34,200 --> 00:03:35,200 that I am a rider. 47 00:03:35,440 --> 00:03:36,600 I have ridden my motorcycle 48 00:03:36,720 --> 00:03:39,600 for over 14 years and covered more than 1.2 lakh kilometres. 49 00:03:39,960 --> 00:03:42,640 Indian riders are strange. 50 00:03:42,720 --> 00:03:46,440 And there are no stylish brands for Indian riders. 51 00:03:46,680 --> 00:03:48,040 We noticed that 52 00:03:48,120 --> 00:03:50,200 and started Wanderlooms. 53 00:04:03,440 --> 00:04:05,120 and I am an intern who became a co-founder. 54 00:04:05,120 --> 00:04:07,240 Wanderlooms is an adventure apparel 55 00:04:19,600 --> 00:04:23,480 To increase the airflow, we've incorporated mesh. 56 00:04:23,600 --> 00:04:27,120 This is suitable for the Indian climate. 57 00:04:27,280 --> 00:04:30,440 Our unique riders will sometimes head to Ladakh, 58 00:04:30,520 --> 00:04:32,720 and other times, they'll go off-roading in the jungles. 59 00:04:32,800 --> 00:04:37,200 To increase their visibility, we have reflective strips too. 60 00:04:37,600 --> 00:04:40,480 If an Indian rider goes to Ladakh 61 00:04:40,560 --> 00:04:44,200 and Spiti and doesn't tell the world about it? That's impossible! 62 00:04:44,360 --> 00:04:48,440 For that, we also have destination-themed riding jerseys. 63 00:05:09,720 --> 00:05:11,640 in Baja and Dakar. 64 00:05:32,040 --> 00:05:34,720 So, are you ready to go on a ride with us? 65 00:05:34,840 --> 00:05:36,680 If 'yes', press the horn 66 00:05:36,800 --> 00:05:38,120 [chuckles] 67 00:05:38,240 --> 00:05:42,160 - Wonderful! Prateek and Deepesh, welcome to Shark Tank. - Yes. 68 00:05:42,280 --> 00:05:44,760 - Thank you! - Deepesh, you said 69 00:05:44,840 --> 00:05:47,960 intern turned co-founder. What is the story? 70 00:05:48,040 --> 00:05:49,760 How did you get this promotion? 71 00:05:49,920 --> 00:05:52,840 I have completed my graduation in Mechanical Engineering. 72 00:05:52,920 --> 00:05:55,640 But I was always interested in designing. 73 00:05:55,720 --> 00:05:59,360 So, I did a diploma course in Pune. 74 00:05:59,480 --> 00:06:03,240 And then, in 2019, I started my internship with Prateek. 75 00:06:03,320 --> 00:06:07,880 I have been with him on this journey from 2019 till now. 76 00:06:08,040 --> 00:06:12,160 He finally promoted me in 2021 and made me the co-founder. 77 00:06:12,280 --> 00:06:15,720 Prateek, tell us, what quality did you see in him 78 00:06:16,200 --> 00:06:20,080 that you promoted him to co-founder so soon? 79 00:06:20,160 --> 00:06:22,160 Ma'am, when he came to us, 80 00:06:22,280 --> 00:06:26,760 - he used to travel almost 100 km every day from Sehore. - Wow! 81 00:06:26,880 --> 00:06:28,520 To reach our office in Bhopal. 82 00:06:28,600 --> 00:06:32,240 He has always supported me, and he has a great eye for design. 83 00:06:32,320 --> 00:06:34,240 Every design you see here 84 00:06:34,320 --> 00:06:36,200 was created by him. 85 00:06:36,280 --> 00:06:37,160 We became a pair... 86 00:06:37,240 --> 00:06:40,880 Did he just give you the post of a co-founder, Deepesh, 87 00:06:40,960 --> 00:06:42,840 or did he also give you ownership? 88 00:06:42,920 --> 00:06:43,960 I do have ownership. 89 00:06:44,040 --> 00:06:45,880 - How much is it? - It's 25%. 90 00:06:50,920 --> 00:06:52,600 Including us, it's 16 people 91 00:06:52,680 --> 00:06:54,160 - in the company. - 16 people? Very good. 92 00:06:54,200 --> 00:06:56,360 Prateek, how did you get into riding? 93 00:06:56,440 --> 00:06:59,920 In 2011, my dad was happy, so he sold a few plots. 94 00:07:00,000 --> 00:07:02,120 He handed around Rs. 60,000 95 00:07:02,200 --> 00:07:05,640 and asked me to buy a motorcycle. 96 00:07:05,880 --> 00:07:08,760 When I went to the showroom and looked around. 97 00:07:08,880 --> 00:07:12,720 When I asked for the price, he said it fits my budget. 98 00:07:12,800 --> 00:07:15,040 On my way home, 99 00:07:15,120 --> 00:07:18,800 I realised what I was missing. 100 00:07:19,600 --> 00:07:23,520 People asked me to join rides. There is a small ride every Sunday. 101 00:07:23,600 --> 00:07:26,960 They wanted to make a community. They wanted to make a riding club. 102 00:07:27,040 --> 00:07:30,080 That is how Born To Ride Bhopal started. 103 00:07:30,200 --> 00:07:34,040 It was the first registered riding club in Madhya Pradesh. 104 00:07:34,120 --> 00:07:35,960 How many such communities are in India? 105 00:07:36,080 --> 00:07:38,400 There are more than 80 lakh riders. 106 00:07:38,480 --> 00:07:42,640 You can see that all the automobile companies are going beyond 400cc. 107 00:07:42,800 --> 00:07:44,280 This indicates 108 00:07:44,400 --> 00:07:46,640 that the riding community is getting stronger. 109 00:07:46,760 --> 00:07:48,280 What do you like about this? 110 00:07:48,560 --> 00:07:51,960 We are lost in our own world, we are by ourselves. 111 00:07:52,040 --> 00:07:53,840 We are lost in our thoughts, free from worries 112 00:07:53,920 --> 00:07:55,680 and there are no mobile notifications ringing. 113 00:07:55,720 --> 00:07:58,400 The mountains talk to us and we talk to the mountains. 114 00:07:58,480 --> 00:07:59,680 Wow! 115 00:07:59,760 --> 00:08:02,680 The biking clubs that have been formed, even in recent times, 116 00:08:06,080 --> 00:08:10,160 What do you do when it comes to safety? 117 00:08:10,240 --> 00:08:13,840 In simple words, the riders are responsible for their belongings. 118 00:08:13,960 --> 00:08:16,040 You are responsible for your health. 119 00:08:16,120 --> 00:08:19,440 I'd like to share that I suffered a heart attack during one of my rides. 120 00:08:19,640 --> 00:08:21,360 - Oh! What? - You? 121 00:08:21,480 --> 00:08:23,120 - Yes! - Heart attack? Is there a stent? 122 00:08:23,200 --> 00:08:26,200 - Yes! On the 5th of July 2020... - How many stents? 123 00:08:26,280 --> 00:08:27,960 - Two. - Oh! 124 00:08:28,840 --> 00:08:32,400 So, on the 5th of July 2020, I went on a ride. 125 00:08:32,520 --> 00:08:36,840 - We were around 15 km inside the jungle. - Oh my God. 126 00:08:36,920 --> 00:08:38,280 I felt uneasy. 127 00:08:38,360 --> 00:08:41,720 One of my fellow riders is a cardiologist, Dr. Kedia. 128 00:08:41,880 --> 00:08:43,560 I called him. 129 00:08:43,680 --> 00:08:45,800 He mentioned that the symptoms were likely indicative. 130 00:08:45,800 --> 00:08:47,600 I got on someone's motorcycle, 131 00:08:47,720 --> 00:08:49,480 rushed to the hospital and my life was saved. 132 00:08:50,440 --> 00:08:52,440 'Life is an adventure' as stated here, 133 00:08:52,520 --> 00:08:55,640 that's exactly how it is, nothing more, nothing less. 134 00:08:55,720 --> 00:08:57,520 Keep it if you like it. 135 00:08:58,160 --> 00:08:59,960 Prateek, is this market growing? 136 00:09:04,680 --> 00:09:07,800 over 12 lakh motorcycles above 300cc are sold per month. 137 00:09:07,880 --> 00:09:09,720 Tell us in terms of price. 138 00:09:09,800 --> 00:09:11,480 - They cost more than Rs. 2 lakhs. - It starts from Rs. 2 lakhs. 139 00:09:11,520 --> 00:09:14,840 - The market for motorcycles above Rs. 2 lakhs is increasing. - Yes. 140 00:09:14,920 --> 00:09:17,880 I'm asking this because I believe 141 00:09:17,960 --> 00:09:19,840 the market you're targeting 142 00:09:19,960 --> 00:09:21,960 consists of individuals who can afford a Rs. 2 lakh motorcycle 143 00:09:21,960 --> 00:09:25,000 can buy expensive clothing. 144 00:09:25,080 --> 00:09:28,400 Is the market you're targeting 145 00:09:28,480 --> 00:09:30,720 individuals who buy motorcycles above Rs. 2 lakhs or below? 146 00:09:30,720 --> 00:09:32,560 - Sir, above Rs 2 lakhs. - Above. 147 00:09:32,640 --> 00:09:34,280 We might look simple, 148 00:09:34,360 --> 00:09:35,800 but this jersey you see here 149 00:09:35,920 --> 00:09:39,280 is the second most expensive jersey made in India. 150 00:09:39,360 --> 00:09:40,720 This is a premium product, sir. 151 00:09:40,840 --> 00:09:44,000 - We sell this jersey for Rs. 1,500 on average. - Which one? 152 00:09:44,240 --> 00:09:48,280 This one. This is for Rs. 1,700 and Rs. 1,600. 153 00:09:48,360 --> 00:09:50,840 Our average is Rs. 1,400. 154 00:09:53,520 --> 00:09:56,680 Motorcycle riders are not the only ones who buy this jersey. 155 00:10:13,320 --> 00:10:14,680 This windcheater 156 00:10:14,800 --> 00:10:19,000 can be used by hikers or anyone else. 157 00:10:19,080 --> 00:10:21,200 This costs Rs. 2,000. 158 00:10:30,520 --> 00:10:33,600 A brand called 100kmph has been in this space for a long time. 159 00:10:33,680 --> 00:10:34,960 There's Raida. 160 00:10:35,040 --> 00:10:38,800 Rynox is into technical products. 161 00:10:38,880 --> 00:10:40,200 What is the scale of Rynox? 162 00:10:40,280 --> 00:10:43,320 I think they must be doing around Rs. 11 crores. 163 00:10:43,960 --> 00:10:46,160 Hero introduced Harley-Davidson in India, 164 00:10:46,280 --> 00:10:48,600 - Bajaj brought Triumph, right? - Triumph. Yes. 165 00:10:54,240 --> 00:10:56,720 You cater to the premium category. 166 00:10:56,880 --> 00:10:58,760 You have to show the branding. 167 00:10:58,840 --> 00:11:01,200 Why would they show the branding of Wanderlooms? 168 00:11:01,960 --> 00:11:05,080 The number of people who ride Harley and Triumph is relatively small. 169 00:11:05,160 --> 00:11:08,640 There are not many and they are concentrated in a particular city. 170 00:11:08,720 --> 00:11:10,600 They are white elephants. 171 00:11:10,720 --> 00:11:14,400 From a community mindset, we have compared 172 00:11:14,560 --> 00:11:16,120 lifestyle, utility and a good price. 173 00:11:16,240 --> 00:11:18,080 Let's assume you went to Ladakh 174 00:11:18,200 --> 00:11:20,920 and then returned to your boring corporate job. 175 00:11:21,040 --> 00:11:25,360 - Now, you... - You are certain that the job is boring. 176 00:11:25,560 --> 00:11:27,240 You want an appearance 177 00:11:27,320 --> 00:11:30,400 where your personality resonates. 178 00:11:30,760 --> 00:11:33,600 There is Wanderlooms to resonate with that personality. 179 00:11:36,760 --> 00:11:39,000 - This is a riding jersey, sir. - Should I take this? 180 00:11:39,320 --> 00:11:41,560 [music playing] 181 00:11:41,640 --> 00:11:43,320 - Is this a jersey or a bandana? - A jersey and this is a bandana. 182 00:11:43,360 --> 00:11:44,960 This is colourful! Let me check this out. 183 00:11:48,800 --> 00:11:50,920 This is amazing. 184 00:11:51,000 --> 00:11:53,400 - There is India's flag here. - Thank you so much. 185 00:11:53,560 --> 00:11:56,240 Your taste is okay. 186 00:11:56,320 --> 00:11:58,840 You won't get this in Triumph and H.O.G. 187 00:11:59,120 --> 00:12:00,920 That bothered him. 188 00:12:01,680 --> 00:12:05,000 - Does Royal Enfield make apparel? - Yes, sir. 189 00:12:05,120 --> 00:12:06,680 They do make apparel. 190 00:12:06,800 --> 00:12:09,360 I am sure their products are not this expensive. 191 00:12:09,440 --> 00:12:13,680 - The T-shirt you have, they've priced 3 times higher. - Yes. 192 00:12:13,760 --> 00:12:15,000 How much is this for? 193 00:12:15,120 --> 00:12:17,160 - We sell this for Rs. 600. - Okay. 194 00:12:17,240 --> 00:12:19,640 Royal Enfield sells this for Rs. 1,200-Rs. 1,400. 195 00:12:24,360 --> 00:12:27,320 is used by a rider for riding. 196 00:12:27,400 --> 00:12:30,480 We sell lifestyle products that they can flaunt. 197 00:12:30,560 --> 00:12:31,680 Did you read this? 198 00:12:31,760 --> 00:12:35,120 It's beautiful. It says, 'A person in Wanderlooms Clothing' 199 00:12:35,240 --> 00:12:37,600 'who's crazy about adventure, ' 200 00:12:37,680 --> 00:12:39,680 'daydreams of Ladakh and Spiti, ' 201 00:12:39,800 --> 00:12:43,120 'with savings only enough for the next ride, ' 202 00:12:43,200 --> 00:12:44,880 'welcome to the community.' 203 00:12:44,960 --> 00:12:47,360 How cool! You should put this on all your products. 204 00:12:47,440 --> 00:12:50,880 This is very cool. You are building a community. 205 00:12:51,000 --> 00:12:52,760 That will be your moat. 206 00:12:52,840 --> 00:12:53,920 This is amazing! 207 00:12:54,080 --> 00:12:55,440 Let me share an example 208 00:12:55,600 --> 00:12:57,400 to illustrate how strong the community is. 209 00:12:57,560 --> 00:13:00,040 I gave a white T-shirt to Anupam. 210 00:13:00,120 --> 00:13:01,920 It has a design on it. 211 00:13:02,040 --> 00:13:03,800 We have around 4 WhatsApp groups. 212 00:13:03,880 --> 00:13:06,000 I shared it and the riders saw it. 213 00:13:06,200 --> 00:13:08,880 - They replied, 'It's horrible. Don't make this.' - Oh! 214 00:13:09,000 --> 00:13:10,800 'Order 50 t-shirts for us.' 215 00:13:10,960 --> 00:13:13,880 'It is a lovely design, make these changes.' 216 00:13:13,960 --> 00:13:17,800 Without printing and manufacturing, we get... 217 00:13:17,920 --> 00:13:20,080 - We get feedback. - Real customer feedback. 218 00:13:20,160 --> 00:13:21,680 Real customer feedback. 219 00:13:22,440 --> 00:13:24,680 What is the scale of the business in the last five years? 220 00:13:24,760 --> 00:13:28,200 - Last fiscal year it was Rs. 2.61. - Crores? 221 00:13:28,280 --> 00:13:29,480 - Yes! Gross. - Not bad. 222 00:13:41,000 --> 00:13:42,560 Where did you get the money from? Funding? 223 00:13:42,560 --> 00:13:44,960 - We raised the first round. - First round of funding. 224 00:13:45,040 --> 00:13:46,680 Did your community give you the money? 225 00:13:46,760 --> 00:13:48,320 Dad sold another plot. 226 00:13:48,960 --> 00:13:52,760 Forget that! I am a defiant man. I didn't take anything from my dad. 227 00:13:52,840 --> 00:13:53,720 What is that? 228 00:13:53,800 --> 00:13:56,320 Someone who doesn't listen to anyone. 229 00:13:56,400 --> 00:13:57,960 - Rebel! - How will you listen to us? 230 00:13:58,040 --> 00:14:00,280 - A rebel. - How will you listen to what we're saying then? 231 00:14:00,320 --> 00:14:02,720 - We will, sir. - Starting today. 232 00:14:02,800 --> 00:14:05,480 - Wait and watch what happens next. - Good point. 233 00:14:06,920 --> 00:14:08,360 Why do you believe that you are a rebel? 234 00:14:08,360 --> 00:14:10,160 Because I wanted to do something of my own. 235 00:14:10,240 --> 00:14:13,040 I was determined to create this brand. 236 00:14:13,120 --> 00:14:14,800 - Okay! - I didn't make this with a business perspective. 237 00:14:14,800 --> 00:14:16,600 I've put 14 years of experience into this. 238 00:14:16,680 --> 00:14:18,240 Is that the reason you're facing a loss? 239 00:14:18,520 --> 00:14:20,440 No, sir. We will be profitable in the future. 240 00:14:20,520 --> 00:14:21,720 That is our vision. 241 00:14:21,800 --> 00:14:23,600 What is causing the loss? This is not a big deal. 242 00:14:23,600 --> 00:14:26,040 You said you have a big community. There are WhatsApp groups 243 00:14:26,120 --> 00:14:29,080 where you do marketing. You are famous in your community. 244 00:14:29,160 --> 00:14:30,600 What's contributing to the loss? 245 00:14:31,480 --> 00:14:33,480 When we sell online, 246 00:14:33,600 --> 00:14:36,160 they charge a percentage 247 00:14:36,240 --> 00:14:38,440 for paid media ads. 248 00:14:38,520 --> 00:14:40,640 That is our highest expense. 249 00:14:40,720 --> 00:14:41,920 Performance marketing. 250 00:14:42,040 --> 00:14:43,520 What percentage is performance marketing? 251 00:14:43,560 --> 00:14:46,800 Sir, 38% goes into marketing. 252 00:14:46,880 --> 00:14:48,280 That's the expense of marketing. 253 00:14:48,400 --> 00:14:49,840 How much did you raise in an angel round? 254 00:14:49,880 --> 00:14:52,000 We raised Rs. 1.43 crores. 255 00:14:52,080 --> 00:14:53,160 - At what valuation? - Valuation? 256 00:14:53,200 --> 00:14:55,000 The pre-money valuation was Rs. 4 crores. 257 00:14:55,840 --> 00:14:58,240 Okay! And when did you take money from Angels? 258 00:14:58,320 --> 00:15:00,280 - September 2022. - 2022. 259 00:15:10,200 --> 00:15:11,600 Someone showed faith in us. 260 00:15:11,680 --> 00:15:14,000 Otherwise, whenever we went to pitch, 261 00:15:14,120 --> 00:15:16,360 they used to ask us what our moat was. 262 00:15:20,480 --> 00:15:21,880 we went to TiE Nurture... 263 00:15:21,960 --> 00:15:23,360 - What is the moat? - Where did you go? 264 00:15:23,360 --> 00:15:24,480 TiE Nurture. 265 00:15:24,560 --> 00:15:26,360 - What? - TiE Nurture. 266 00:15:26,480 --> 00:15:29,240 - TiE Nurture. - TiE Nurture in Pune in cohort. 267 00:15:29,320 --> 00:15:30,920 So, there was a boot camp there. 268 00:15:31,000 --> 00:15:34,120 We thought after the boot camp was over 269 00:15:34,200 --> 00:15:35,840 we would go to Lonavala to travel. 270 00:15:35,920 --> 00:15:38,720 They said we need to make a business model. 271 00:15:38,800 --> 00:15:41,280 I saw the Business Model Canvas for the first time. 272 00:15:42,360 --> 00:15:43,920 We made that and understood it. 273 00:15:44,000 --> 00:15:45,760 We made it till 3 am. 274 00:15:45,840 --> 00:15:49,400 - Out of all the cohorts in India, we were in the top 3. - Wow! 275 00:15:49,480 --> 00:15:52,320 - Once we understand and there is clarity in life... - Nice. 276 00:15:52,400 --> 00:15:54,240 - That we have to reach in 4 hours. - To learn. 277 00:15:55,160 --> 00:15:59,040 Tell me something. The apparel market is already crowded. 278 00:15:59,200 --> 00:16:01,040 There are many people in this category. 279 00:16:01,160 --> 00:16:02,600 It is not a crowded market. 280 00:16:02,680 --> 00:16:05,320 The advantage is that if you approach it purely as a business, 281 00:16:05,440 --> 00:16:07,200 - no one will be able to manage it. - Why? 282 00:16:07,280 --> 00:16:09,760 Because they lack the experience. How can they connect with it? 283 00:16:09,840 --> 00:16:11,560 If you haven't been to Khardung La, 284 00:16:11,680 --> 00:16:12,880 or Umling La, 285 00:16:12,960 --> 00:16:15,160 and haven't experienced being half immersed in ice, 286 00:16:15,520 --> 00:16:16,960 - how will you make that clothing? - Good point. 287 00:16:16,960 --> 00:16:19,120 You might have the best technology in the world, 288 00:16:19,200 --> 00:16:22,080 but they don't have the experience we have. 289 00:16:22,160 --> 00:16:24,200 How much was the revenue last year? 290 00:16:24,280 --> 00:16:27,680 In FY23-24, the net was Rs. 2.32 crores. 291 00:16:27,800 --> 00:16:30,160 - Prior to that? - Prior to that, it was Rs. 1.26 crores. 292 00:16:30,240 --> 00:16:31,280 What was your revenue last month? 293 00:16:31,320 --> 00:16:32,800 Last month our revenue was Rs. 32 lakhs. 294 00:16:32,840 --> 00:16:34,120 And loss? 295 00:16:34,200 --> 00:16:35,800 - Sir, almost Rs. 5 lakhs. - Rs. 5 lakhs. 296 00:16:41,880 --> 00:16:44,320 - Because the season... - We have an inventory for 2-3 months. 297 00:16:47,480 --> 00:16:49,600 31% comes from websites. 298 00:16:49,720 --> 00:16:51,920 The WhatsApp groups you mentioned fall under this. 299 00:16:52,000 --> 00:16:54,520 - Yes, sir. - Which other channel do you have other than direct? 300 00:16:54,560 --> 00:16:56,840 There are marketplaces, they are 43%. 301 00:16:56,920 --> 00:16:58,680 - And B2B? - B2B is 26%. 302 00:16:58,760 --> 00:17:01,120 How many days a year are you on a tour? 303 00:17:01,240 --> 00:17:03,120 It has gone down, I am serious about the business. 304 00:17:03,120 --> 00:17:04,640 - Even then! - That's crucial. 305 00:17:04,720 --> 00:17:07,440 If you're incurring losses, it's time to get serious. 306 00:17:08,160 --> 00:17:12,000 Prateek, is there anyone else other than you 307 00:17:12,120 --> 00:17:13,720 who is a core person in the team? 308 00:17:13,800 --> 00:17:17,480 Yes! There is Prakriti. She is my sister. 309 00:17:17,560 --> 00:17:20,160 She's a Founder Staff. 310 00:17:20,280 --> 00:17:21,320 - Chief of Staff. - Founder Staff. 311 00:17:21,320 --> 00:17:22,840 - Chief Of Staff. - What does she do? 312 00:17:22,920 --> 00:17:23,840 She handles the mess. 313 00:17:23,920 --> 00:17:26,320 - She scolds everyone. - Yes, she does. 314 00:17:26,400 --> 00:17:27,560 - And... - She is the COO. 315 00:17:27,840 --> 00:17:29,800 Yes! The CRM is also managed by her. 316 00:17:29,880 --> 00:17:31,000 Who else? 317 00:17:31,080 --> 00:17:32,120 We have a CFO. 318 00:17:32,200 --> 00:17:33,360 What is the CFO's background? 319 00:17:33,400 --> 00:17:36,640 BA in Accounts. 320 00:17:36,720 --> 00:17:38,120 BA in Accounts? 321 00:17:38,200 --> 00:17:40,280 BCom in Accounting. 322 00:17:40,360 --> 00:17:43,320 - And currently in the final round for CA. - You are amazing! 323 00:17:43,400 --> 00:17:46,200 E-commerce is a new word in Bhopal. 324 00:17:46,280 --> 00:17:48,800 We match the background and hire them. 325 00:17:48,880 --> 00:17:49,960 How does that work? 326 00:17:50,040 --> 00:17:53,480 - Let me tell you. - 300cc motorcycle, what else? 327 00:17:54,120 --> 00:17:55,720 Our current inventory manager 328 00:17:55,840 --> 00:17:58,200 used to work in a motorcycle agency. 329 00:17:58,280 --> 00:18:01,160 He knows how to handle inventory 330 00:18:01,360 --> 00:18:02,840 and maintain an Excel sheet. 331 00:18:02,960 --> 00:18:05,160 Our employee in dispatch 332 00:18:05,280 --> 00:18:07,520 used to work in a courier company. 333 00:18:07,640 --> 00:18:09,440 I convinced him to come on board 334 00:18:09,520 --> 00:18:11,840 and trained him to use Shiprocket. 335 00:18:12,080 --> 00:18:14,640 That is good. Listen to me, Prateek. You and Deepesh 336 00:18:14,800 --> 00:18:17,040 are hustlers. 337 00:18:17,120 --> 00:18:19,520 - Thank you, sir. - To do this and understand the business. 338 00:18:19,600 --> 00:18:21,560 You mentioned that you had never heard of 'moat' 339 00:18:21,680 --> 00:18:23,360 or seen a business plan. 340 00:18:23,480 --> 00:18:26,600 But you turned your passion into a business. 341 00:18:26,720 --> 00:18:28,080 I'm not sure if it qualifies as a business yet 342 00:18:28,080 --> 00:18:29,840 since you're not generating profits. 343 00:18:30,120 --> 00:18:31,600 But my issue 344 00:18:31,680 --> 00:18:34,400 is that I don't see a design language. 345 00:18:34,640 --> 00:18:39,040 There is both enthusiasm and the capability to achieve something. 346 00:18:39,160 --> 00:18:43,080 But I don't see that you can make an aspirational brand or product. 347 00:18:43,840 --> 00:18:46,520 In jail, these mugs... I haven't been there. 348 00:18:46,600 --> 00:18:49,160 But I've heard you get better mugs in jails. 349 00:18:49,320 --> 00:18:51,160 Look at the quality of this. 350 00:18:51,280 --> 00:18:54,120 The paint is coming off. 351 00:18:55,480 --> 00:18:58,400 You are also claiming to be a premium brand. 352 00:18:58,480 --> 00:19:01,120 But your prices are less than Decathlon. 353 00:19:02,200 --> 00:19:04,480 I think you need some knowledge of that aspect. 354 00:19:04,560 --> 00:19:06,280 Passion alone is not enough. 355 00:19:06,360 --> 00:19:08,200 Having a strategic mindset is crucial, 356 00:19:08,280 --> 00:19:11,040 especially in a competitive industry, to build a business. 357 00:19:11,120 --> 00:19:12,720 You have already secured funding. 358 00:19:12,800 --> 00:19:15,800 I don't know how you'll do that, but for those reasons, I am out. 359 00:19:17,560 --> 00:19:21,080 There is an input. If you can, then make some money, 360 00:19:21,160 --> 00:19:23,560 turn profitable, repay the capital 361 00:19:23,640 --> 00:19:25,600 and build this business with passion. 362 00:19:25,680 --> 00:19:28,200 Owning it will be something you can truly take pride in. 363 00:19:28,280 --> 00:19:29,320 Thank you, sir. 364 00:19:30,040 --> 00:19:33,200 Currently, how many community members are connected? 365 00:19:40,520 --> 00:19:41,400 all over India. 366 00:19:41,480 --> 00:19:44,720 We have Rs. 9 lakhs in our account. 367 00:19:44,800 --> 00:19:48,520 We are evaluating a term sheet for the second round of funding. 368 00:19:48,600 --> 00:19:49,880 How much does the term sheet cost? 369 00:19:49,920 --> 00:19:51,760 Around Rs. 2 crores. 370 00:19:51,840 --> 00:19:53,520 - Valuation? - Pre-money Rs. 12 crores. 371 00:20:01,080 --> 00:20:05,000 ...there's a chance that it could fall through. 372 00:20:06,120 --> 00:20:10,480 I can confidently tell you that this business won't shut down. 373 00:20:10,640 --> 00:20:12,600 I agree that we are riders. 374 00:20:12,760 --> 00:20:15,800 We need a lot of improvement, I accept that. 375 00:20:15,960 --> 00:20:19,520 I am certain that there will be improvement, and it is happening. 376 00:20:19,640 --> 00:20:22,360 - There is growth. - They gave you the term sheet for the next round. 377 00:20:22,480 --> 00:20:23,720 Yes, we have the term sheet. 378 00:20:34,080 --> 00:20:37,880 In my first round, I took Rs. 15 lakhs for 18%. 379 00:20:37,960 --> 00:20:39,320 I was in a similar state to you. 380 00:20:39,480 --> 00:20:42,120 We went to many places, and they used to ask, 'What is the moat?' 381 00:20:42,280 --> 00:20:45,280 'What is the business degree you have?' 382 00:20:45,400 --> 00:20:48,120 - The first person who gave me money, I accepted it. - Same. 383 00:20:48,600 --> 00:20:50,080 I believe 384 00:20:50,160 --> 00:20:52,840 - there are more opportunities in the value system. - Yes. 385 00:20:52,960 --> 00:20:54,840 We have Nallagandla hotel. 386 00:20:55,000 --> 00:20:58,280 Every week, the restaurant sales in that hotel 387 00:20:58,400 --> 00:21:02,280 - of around Rs. 5 lakhs come from biker groups. - Yes, sir. 388 00:21:02,600 --> 00:21:06,480 - I believe your business has potential. Thank you, sir. 389 00:21:06,600 --> 00:21:08,320 We can do something together. 390 00:21:08,520 --> 00:21:11,760 I believe that having a purpose is more important than profit. 391 00:21:11,880 --> 00:21:15,640 In the long term, if you are willing to make a community-driven business, 392 00:21:15,720 --> 00:21:17,520 then you have an offer from me. 393 00:21:18,720 --> 00:21:20,280 If Namita... 394 00:21:20,680 --> 00:21:23,680 - Yeah! We are on the same page. - Yes. 395 00:21:23,760 --> 00:21:25,680 What I like the most about you 396 00:21:25,760 --> 00:21:28,120 is that you said that community is your moat. 397 00:21:28,240 --> 00:21:30,520 Ritesh and I would like to come together. 398 00:21:30,600 --> 00:21:34,480 Our offer is Rs. 50 lakhs for 5% equity, 399 00:21:34,560 --> 00:21:36,520 which is valued at Rs. 10 crores. 400 00:21:36,720 --> 00:21:38,760 [music playing] 401 00:21:41,200 --> 00:21:45,280 Because Sid Lal, the owner of Royal Enfield, is a good friend. 402 00:21:45,360 --> 00:21:46,520 We will introduce you to him. 403 00:21:46,600 --> 00:21:48,680 It will help you expand your business. 404 00:21:48,880 --> 00:21:51,960 We are directly connected with many groups in the travel industry. 405 00:21:52,040 --> 00:21:53,720 We will introduce you to them. 406 00:21:53,800 --> 00:21:58,240 We will add enough value to make Wanderlooms a bigger community. 407 00:21:58,320 --> 00:22:00,960 Yes! Thank you so much for your offer. 408 00:22:01,240 --> 00:22:02,720 Peyush and Aman? 409 00:22:03,960 --> 00:22:05,480 In your business, 410 00:22:05,720 --> 00:22:09,120 you have to understand that the moat we were discussing, 411 00:22:09,240 --> 00:22:12,760 your moat, could be design, 412 00:22:12,840 --> 00:22:16,360 cost or execution. 413 00:22:16,600 --> 00:22:20,280 Unfortunately, it's not easy to create differentiation 414 00:22:20,360 --> 00:22:23,520 in the way you're currently running the business. 415 00:22:24,640 --> 00:22:26,920 For that to happen, the team is important. 416 00:22:27,040 --> 00:22:29,680 Hire a few more people in your team 417 00:22:29,760 --> 00:22:31,560 whose strong area is this 418 00:22:31,640 --> 00:22:35,000 and they can channelise your passion and energy. 419 00:22:35,120 --> 00:22:37,720 - Yes, sir. - So, you need people around you 420 00:22:37,800 --> 00:22:39,920 who can balance that emotion. 421 00:22:40,040 --> 00:22:41,360 Lastly, I would just say 422 00:22:41,440 --> 00:22:43,560 that you shouldn't think in terms of being India-centric, 423 00:22:43,560 --> 00:22:44,920 but global too. 424 00:22:45,120 --> 00:22:46,480 I am out today. 425 00:22:48,160 --> 00:22:51,480 - Yes! - Because you have an attractive offer. 426 00:22:51,680 --> 00:22:52,760 Right? Best of luck! 427 00:22:52,920 --> 00:22:54,560 - Thank you so much, sir. - Thank you, sir 428 00:22:54,680 --> 00:22:55,920 I am scared. 429 00:22:56,840 --> 00:22:57,720 You are scared? 430 00:22:57,800 --> 00:22:59,600 [laughing] 431 00:22:59,840 --> 00:23:02,480 This is today's joke, that you're scared. 432 00:23:02,720 --> 00:23:05,120 - Hear me out. - Okay! 433 00:23:05,200 --> 00:23:08,800 - I am scared, but I feel we can do something. - Okay. 434 00:23:08,880 --> 00:23:12,040 This looks like a passion to profession project, which is good. 435 00:23:12,120 --> 00:23:15,480 And that is how it will be if you like it that way. 436 00:23:15,800 --> 00:23:17,720 It doesn't feel like work; it feels like the right thing to do. 437 00:23:17,760 --> 00:23:20,320 Unfortunately, you need 438 00:23:20,400 --> 00:23:22,760 to work on product design, Deepesh. 439 00:23:22,840 --> 00:23:24,640 You need to up your skills there. 440 00:23:24,880 --> 00:23:27,120 So, I'll give you an offer to help you there. 441 00:23:27,640 --> 00:23:30,880 Rs. 50 lakhs for 5%, which is the same... 442 00:23:35,360 --> 00:23:37,040 I have a humble request. 443 00:23:37,120 --> 00:23:39,280 We say in our biking group 444 00:23:39,360 --> 00:23:41,560 that we won't forget old friends just to make new ones. 445 00:23:41,640 --> 00:23:43,120 It's about honesty. 446 00:23:43,200 --> 00:23:45,080 We took the term sheet from them, 447 00:23:45,160 --> 00:23:47,840 and then went to you and said, 'Here, you give us the money.' 448 00:23:47,920 --> 00:23:50,320 Their valuation is Rs. 12 crores. 449 00:23:50,400 --> 00:23:51,800 The valuation is Rs. 12 crores. 450 00:23:55,760 --> 00:23:58,400 is joining you, he might not refuse you. 451 00:23:58,520 --> 00:24:00,960 There is not much difference between 4%-5%. 452 00:24:01,200 --> 00:24:02,920 I will settle for 4%. 453 00:24:11,040 --> 00:24:12,120 What's your choice? 454 00:24:12,960 --> 00:24:14,960 [music playing] 455 00:24:16,640 --> 00:24:19,280 Our choice is Ritesh and Namita. 456 00:24:19,440 --> 00:24:21,880 Rs. 50 lakhs for Rs. 12 crores valuation. 457 00:24:28,400 --> 00:24:33,560 Founders always ask us all to join. Why didn't you say that? 458 00:24:33,680 --> 00:24:36,040 If we do that you guys 459 00:24:36,120 --> 00:24:40,440 ask for 6% instead of 4% and you don't give more money. 460 00:24:40,600 --> 00:24:42,520 - Thank you. - Smart guy. 461 00:24:42,600 --> 00:24:45,680 What a brilliant answer! We are betting on you. 462 00:24:55,840 --> 00:24:58,440 Secondly, Ritesh mentioned the riding community. 463 00:24:58,560 --> 00:25:00,120 We also want to build a community. 464 00:25:00,200 --> 00:25:03,760 This is what we realised in 2023, and that's what we will do. 465 00:25:03,840 --> 00:25:06,400 Good job! You also taught me 466 00:25:06,480 --> 00:25:08,560 that even when entrepreneurs are here, 467 00:25:08,640 --> 00:25:10,760 the Sharks should also pitch themselves. 468 00:25:10,880 --> 00:25:13,080 I should have mentioned the community, right? 469 00:25:13,240 --> 00:25:15,360 I didn't say that, sir. 470 00:25:15,440 --> 00:25:17,200 It's great if you understood. 471 00:25:17,320 --> 00:25:19,400 [laughing] 472 00:25:19,760 --> 00:25:21,120 Thanks! Good! 473 00:25:27,640 --> 00:25:29,160 Hello, Deepesh and Prateek. How are you? 474 00:25:29,160 --> 00:25:30,520 - Hello, sir. Good! - I am good. 475 00:25:30,600 --> 00:25:32,320 - Good? How was it in there? - Yes. 476 00:25:32,440 --> 00:25:33,600 It was great, and we have a deal. 477 00:25:33,600 --> 00:25:34,600 - You do? - Yes. 478 00:25:38,080 --> 00:25:40,120 The protective gear you are making is important. 479 00:25:40,200 --> 00:25:43,320 The roads are bad. If someone goes to buy coriander, 480 00:25:43,440 --> 00:25:45,160 - they might even need it. - Agreed. 481 00:25:45,240 --> 00:25:46,400 I will buy it anyway. 482 00:25:46,520 --> 00:25:48,360 Looking at my shows, 483 00:25:48,440 --> 00:25:50,000 I need protection. 484 00:25:51,240 --> 00:25:52,520 But amazing job! 485 00:25:52,600 --> 00:25:55,600 You travel a lot, so I thought of you. 486 00:25:55,680 --> 00:25:57,440 - We want to take good care of you. - Okay! 487 00:25:57,560 --> 00:25:59,840 - I ordered gifts for you from Swiggy Instamart. - Okay! 488 00:25:59,920 --> 00:26:01,680 - Thank you! - It's here in 10 minutes. 489 00:26:02,840 --> 00:26:03,960 Okay! 490 00:26:04,120 --> 00:26:06,040 Thank you so much. This is for you. 491 00:26:06,200 --> 00:26:08,440 - I ordered sunglasses to protect your eyes from dust. - Okay. 492 00:26:08,440 --> 00:26:09,600 - I ordered sunscreen. - Okay. 493 00:26:09,640 --> 00:26:11,840 And hair serum to set your hair in place. 494 00:26:12,000 --> 00:26:14,440 - Thank you so much! - Take care of yourself. 495 00:26:14,720 --> 00:26:16,440 Friends, you too look after yourself. 496 00:26:16,520 --> 00:26:18,360 Order what you want from Swiggy Instamart 497 00:26:18,440 --> 00:26:19,680 and it's delivered in 10 minutes. 498 00:26:19,720 --> 00:26:21,080 So, order now. 499 00:26:34,560 --> 00:26:36,400 [theme music playing] 500 00:26:39,880 --> 00:26:42,240 [theme music playing] 501 00:27:12,040 --> 00:27:15,040 We have come to tell you the story of our business. 502 00:27:16,040 --> 00:27:19,480 This story started with my best friend. 503 00:27:19,800 --> 00:27:21,240 She was always by my side. 504 00:27:21,320 --> 00:27:22,840 Regardless of the circumstances, 505 00:27:23,040 --> 00:27:26,040 she always made me feel at ease and secure. 506 00:27:26,120 --> 00:27:29,520 Whether anyone supports me or not, she always stands by me. 507 00:27:30,000 --> 00:27:34,640 But a few years ago, their relationship took a toxic turn. 508 00:27:35,080 --> 00:27:38,320 She was upset with Rahul because he wasn't looking after her 509 00:27:38,400 --> 00:27:40,080 and took her for granted. 510 00:27:40,480 --> 00:27:42,320 And she needed a break from me. 511 00:27:43,280 --> 00:27:45,520 By the way, Sharks! She is here. 512 00:27:49,160 --> 00:27:52,480 Oh God! I hope it's not what I think. 513 00:27:54,080 --> 00:27:55,080 Exactly what you think. 514 00:27:55,120 --> 00:27:56,200 Underwear! 515 00:27:56,800 --> 00:27:59,440 Sharks, this is not just Rahul's best friend, 516 00:27:59,560 --> 00:28:02,920 it is our best friend. Our best buddy, underwear. 517 00:28:03,040 --> 00:28:04,040 [laughing] 518 00:28:04,480 --> 00:28:06,600 To patch up with the underwear, 519 00:28:06,680 --> 00:28:09,680 we started Ugees in 2022. 520 00:28:11,720 --> 00:28:15,840 Ugees is India's first specialised undergarment wash. 521 00:28:22,000 --> 00:28:24,000 ...is made of harsh chemicals. 522 00:28:24,080 --> 00:28:26,440 It not only damages your underwear 523 00:28:26,520 --> 00:28:30,200 but can also disrupt the pH balance of your intimate skin. 524 00:28:30,280 --> 00:28:34,680 It can also lead to itching, rashes, and infections such as UTIs. 525 00:28:50,560 --> 00:28:53,000 Sharks, Ugees is not just a new product, 526 00:28:53,080 --> 00:28:56,160 but a new category in the FMCG industry. 527 00:28:56,240 --> 00:28:58,560 Through our online portal, we've delivered Ugees 528 00:28:58,680 --> 00:29:01,360 to more than 1 lakh customers. 529 00:29:01,600 --> 00:29:03,800 Sharks, this is just the beginning. 530 00:29:03,880 --> 00:29:05,120 The liquid detergent market 531 00:29:05,320 --> 00:29:08,160 globally is around Rs. 2 lakh crores. 532 00:29:08,280 --> 00:29:10,640 We are a small part of this market. 533 00:29:10,760 --> 00:29:13,600 But with the help of your support and expertise, 534 00:29:13,680 --> 00:29:15,640 we can become big players. 535 00:29:16,200 --> 00:29:18,560 And for that, our ask 536 00:29:18,600 --> 00:29:21,680 is Rs. 50 lakhs against 2.5% equity. 537 00:29:26,840 --> 00:29:29,240 So that no toxic detergent becomes 538 00:29:29,320 --> 00:29:31,800 a barrier between you and your underwear. 539 00:29:31,880 --> 00:29:33,280 [laughing] 540 00:29:43,560 --> 00:29:47,000 Just like the majority of men, I didn't wash my own underwear. 541 00:29:47,120 --> 00:29:49,040 But when I got married to Samiksha, 542 00:29:49,120 --> 00:29:51,440 she pointed out and said 543 00:29:51,520 --> 00:29:53,920 that I should at least wash my own underwear. 544 00:29:54,280 --> 00:29:56,720 So, I started washing my underwear on my own. 545 00:29:56,920 --> 00:29:59,040 I followed the process that Samiksha did. 546 00:29:59,160 --> 00:30:02,400 I washed it with a blue detergent bar, 547 00:30:02,480 --> 00:30:07,080 poured disinfectant in a mug, dipped it and washed it again. 548 00:30:07,200 --> 00:30:10,720 I used to find this process tedious. 549 00:30:10,800 --> 00:30:12,880 Then I started washing it with liquid hand soap, 550 00:30:13,000 --> 00:30:15,760 shampoo, and any random product. 551 00:30:15,840 --> 00:30:18,000 An idea struck. 552 00:30:18,080 --> 00:30:20,640 Could there be a product 553 00:30:20,720 --> 00:30:22,640 that could make this process easy 554 00:30:22,720 --> 00:30:26,440 and is the correct product for this cloth? 555 00:30:26,960 --> 00:30:28,760 Have you heard of washing machines? 556 00:30:29,240 --> 00:30:32,800 Everyone in India is buying it. It is sold in villages as well. 557 00:30:32,920 --> 00:30:34,560 Put water in it, 558 00:30:34,880 --> 00:30:37,560 add detergent. There is an array of detergents. 559 00:30:37,920 --> 00:30:41,040 You will get old and new-aged detergent, 560 00:30:41,120 --> 00:30:43,560 - which is clean, green, and everything in between. - Organic. 561 00:30:44,040 --> 00:30:45,640 Add disinfectant to that. 562 00:30:45,760 --> 00:30:48,360 That could also be clean, green and whatever you want. 563 00:30:48,880 --> 00:30:50,120 Job done! 564 00:30:50,560 --> 00:30:53,840 Why are you complicating it? Why? 565 00:30:53,920 --> 00:30:57,400 Next, we will hear about special liquid soap for every finger. 566 00:30:57,480 --> 00:30:59,440 Why so complex? 567 00:31:00,320 --> 00:31:02,040 - Right! - Tell him about the survey. 568 00:31:02,120 --> 00:31:03,120 - What? - The survey. 569 00:31:03,200 --> 00:31:05,120 We conducted a survey. 570 00:31:05,600 --> 00:31:07,000 And the result was 571 00:31:07,120 --> 00:31:10,440 that 40% of men and 80% of women in India 572 00:31:10,640 --> 00:31:12,760 wash their underwear by hand. 573 00:31:19,440 --> 00:31:22,040 ...women's underwear is taboo. 574 00:31:22,280 --> 00:31:24,400 If we look back 30 years, 575 00:31:24,480 --> 00:31:28,440 women's underwear was something they kept hidden from men. 576 00:31:28,600 --> 00:31:31,000 For example, even if they hung it out to dry on a rope, 577 00:31:31,120 --> 00:31:33,200 they would cover it with a cloth. 578 00:31:33,280 --> 00:31:35,800 - It was always covered. - Agreed. 579 00:31:36,040 --> 00:31:37,280 That was a habit. 580 00:31:37,400 --> 00:31:39,640 And because of that habit, even today, 581 00:31:39,840 --> 00:31:42,320 80% of women don't put underwear in the washing machine. 582 00:31:42,440 --> 00:31:43,800 That's true. They wash it by hand. 583 00:31:43,800 --> 00:31:47,840 The second big reason is that women 584 00:31:47,920 --> 00:31:51,120 menstruate every month for around 4 days. 585 00:31:51,240 --> 00:31:54,280 There are blood stains and bio-stains, 586 00:31:54,360 --> 00:31:56,560 so anyway, they can put it with other clothes. 587 00:31:56,760 --> 00:31:58,440 Got it! In your pitch, 588 00:31:58,600 --> 00:32:01,400 you should have demonstrated a women's use case. 589 00:32:01,520 --> 00:32:04,760 You completely threw me off by demonstrating your use case. 590 00:32:05,280 --> 00:32:06,640 - It's a unisex product. - Right! 591 00:32:06,760 --> 00:32:09,240 - But it is mostly used by women. - Yes, it's women. 592 00:32:09,440 --> 00:32:13,120 Actually, Rahul, you began your pitch with humour. 593 00:32:13,240 --> 00:32:16,400 - Yes. - I think, to explain such a tough case, 594 00:32:16,440 --> 00:32:19,040 had you used a different approach... 595 00:32:19,120 --> 00:32:21,400 For example, you know that fungal infections... 596 00:32:21,520 --> 00:32:23,360 - Vaginal infections... - Yes... 597 00:32:23,440 --> 00:32:26,200 - Absolutely. - Are very high in India today. 598 00:32:26,320 --> 00:32:30,600 They cause pain and issues for women. 599 00:32:30,680 --> 00:32:33,640 - Had you spoken about that angle... - Yes. 600 00:32:33,720 --> 00:32:37,320 You'd have been able to convince your investors 601 00:32:37,400 --> 00:32:39,200 about your case better. 602 00:32:39,280 --> 00:32:42,200 So, my request to you for your next pitch is 603 00:32:42,280 --> 00:32:43,960 that you lead with this 604 00:32:44,040 --> 00:32:46,320 because this is a real health issue 605 00:32:46,440 --> 00:32:47,960 - for Indian women. - Right. 606 00:32:48,040 --> 00:32:49,760 You might not need a next pitch. 607 00:32:51,240 --> 00:32:52,560 What are your backgrounds? 608 00:32:52,640 --> 00:32:54,240 I'm from Vidisha. 609 00:32:54,400 --> 00:32:57,400 I have a BTech in Biotechnology 610 00:32:57,520 --> 00:33:00,400 and a Masters in Fashion Management from NIFT, Delhi. 611 00:33:06,800 --> 00:33:08,600 I was born in Meerut. 612 00:33:08,720 --> 00:33:10,680 I came to Noida to do BTech. 613 00:33:10,760 --> 00:33:13,120 Then I pursued an MBA from the same college. 614 00:33:13,240 --> 00:33:16,120 After that, I joined my family business 615 00:33:16,680 --> 00:33:17,960 which was started by my uncle. 616 00:33:18,040 --> 00:33:22,040 We supply primary packing material to pharma and cosmetic industries. 617 00:33:26,200 --> 00:33:28,160 Are you still in the packaging business? 618 00:33:28,280 --> 00:33:29,600 My younger brother Mayank 619 00:33:29,960 --> 00:33:32,520 is taking care of it completely now. 620 00:33:32,920 --> 00:33:34,920 There are so many good detergents in the market now. 621 00:33:34,960 --> 00:33:37,000 Whether you use those or this, 622 00:33:37,240 --> 00:33:39,320 is there a difference in the products chemically? 623 00:33:39,480 --> 00:33:44,040 Yes. The pH of regular detergents is already around 10. 624 00:33:44,120 --> 00:33:46,080 - Correct. - Which is more towards the alkaline side 625 00:33:46,080 --> 00:33:47,880 and again, it's harmful to the skin. 626 00:33:47,960 --> 00:33:50,080 One problem with underwear is 627 00:33:50,160 --> 00:33:52,360 that no matter how well you rinse them, 628 00:33:52,520 --> 00:33:55,200 micrograms of the residue still remain. 629 00:33:55,280 --> 00:33:56,720 You must have noticed 630 00:33:56,800 --> 00:33:58,960 that they get a little stiff after drying. 631 00:33:59,040 --> 00:34:02,400 Also, your intimate skin is a little moist by nature. 632 00:34:02,480 --> 00:34:05,000 If the residue gets absorbed even in micrograms, 633 00:34:05,320 --> 00:34:09,120 then it can actually trigger infections like UTI. 634 00:34:09,240 --> 00:34:10,440 What's your pH level? 635 00:34:10,520 --> 00:34:14,000 Our pH level is 5.5 - 6 which is the safest. 636 00:34:18,120 --> 00:34:20,040 So, there's an incredible catch. 637 00:34:20,120 --> 00:34:23,000 We only target females through our ads. 638 00:34:24,040 --> 00:34:27,480 Aman, this must seem a little difficult to understand 639 00:34:27,560 --> 00:34:29,720 because it is not a men's problem, 640 00:34:29,880 --> 00:34:32,520 but most women face this problem. 641 00:34:32,600 --> 00:34:35,160 When we market this product to them, 642 00:34:35,240 --> 00:34:37,200 our conversion is very high. 643 00:34:37,280 --> 00:34:38,280 I see. 644 00:34:38,440 --> 00:34:39,840 [pleasant music playing] 645 00:34:50,360 --> 00:34:51,800 - And what's this? - The refill pack. 646 00:34:56,960 --> 00:34:59,560 The packaging and design are minimalistic 647 00:34:59,640 --> 00:35:01,520 and aesthetic, which is good. 648 00:35:08,960 --> 00:35:09,960 Means a lot, thank you. 649 00:35:10,000 --> 00:35:12,840 But it also looks a bit premium. 650 00:35:13,120 --> 00:35:14,920 - It does. - Is your pricing high? 651 00:35:15,000 --> 00:35:16,480 - Rs. 255. - It's Rs. 255. 652 00:35:16,680 --> 00:35:18,600 It will last you for 3 to 4 months. 653 00:35:18,680 --> 00:35:20,320 Normally, how much does a detergent cost? 654 00:35:30,160 --> 00:35:31,920 - They came after us. - Followed suit. 655 00:35:32,280 --> 00:35:35,560 Aman, you said our product was premium. 656 00:35:35,640 --> 00:35:37,040 Well, that was intentional 657 00:35:37,120 --> 00:35:40,000 as we're positioning Ugees as a lifestyle product. 658 00:35:40,680 --> 00:35:42,080 Come to think of it, 659 00:35:42,160 --> 00:35:44,720 underwear is very much a part of fashion. 660 00:35:44,800 --> 00:35:47,360 You'd get underwear for Rs. 100 earlier 661 00:35:47,440 --> 00:35:48,680 but that's not the case now. 662 00:35:48,840 --> 00:35:51,360 - People wear underwear from CK and other big brands. - Bummer! 663 00:35:55,920 --> 00:35:58,280 - they're bound to wear out in a few months. - Yes. 664 00:35:58,360 --> 00:35:59,960 At Ugees, our claim is 665 00:36:00,040 --> 00:36:02,920 that the life of your underwear is increased by double. 666 00:36:03,000 --> 00:36:04,560 But nowhere is this dialled up. 667 00:36:04,640 --> 00:36:07,000 If you want this proposition to stand out, 668 00:36:07,080 --> 00:36:08,080 somewhere, you have to say, 669 00:36:08,120 --> 00:36:09,800 "Doubles the life of your underwear." 670 00:36:09,880 --> 00:36:13,160 For Rs. 255, it seems like it'll run out in a week. 671 00:36:13,240 --> 00:36:14,680 It's hard for people to digest. 672 00:36:14,760 --> 00:36:16,000 Anupam, you know what? 673 00:36:16,080 --> 00:36:18,320 This product has so many features 674 00:36:18,400 --> 00:36:19,880 but the space we have is very limited... 675 00:36:19,920 --> 00:36:21,880 You can always have a pamphlet inside. 676 00:36:22,440 --> 00:36:23,720 - Okay, that... - You get it? 677 00:36:23,840 --> 00:36:25,640 - Right. - Even if you mention bullet points, 678 00:36:25,840 --> 00:36:27,440 it could make... And in a fun way. 679 00:36:27,520 --> 00:36:28,440 - Of course. - In a fun way. 680 00:36:28,520 --> 00:36:29,600 That can be done. 681 00:36:30,280 --> 00:36:33,120 It says, "Share your experience here." 682 00:36:33,360 --> 00:36:35,240 - Right. - Followed by a code. 683 00:36:35,440 --> 00:36:38,000 How many customers shared the experience? 684 00:36:38,120 --> 00:36:39,520 Tell us a little about it. 685 00:36:39,640 --> 00:36:40,520 On average, 686 00:36:40,600 --> 00:36:44,280 we get 5 to 6 comments every day on Instagram. 687 00:36:44,480 --> 00:36:48,200 Currently, we have over 1,000 reviews on Amazon. 688 00:36:48,360 --> 00:36:51,640 - Our rating on Amazon is 4.5. - Good. 689 00:36:51,720 --> 00:36:53,080 As for the other marketplaces, 690 00:36:53,160 --> 00:36:55,600 - our average rating is 4.8. - Nice. 691 00:36:55,680 --> 00:36:57,720 Is 100% of your sales online? 692 00:36:57,880 --> 00:36:58,720 - Yes. - Yes. 693 00:36:58,800 --> 00:37:00,080 How much from your website? 694 00:37:00,160 --> 00:37:01,560 51%. 695 00:37:01,640 --> 00:37:02,640 And marketplaces? 696 00:37:02,880 --> 00:37:04,760 It's 43% from Amazon, 697 00:37:05,240 --> 00:37:08,720 2% from Blinkit and 2% from Flipkart. 698 00:37:09,000 --> 00:37:12,520 Other than that, we're available on FirstCry, Meolaa and Smytten. 699 00:37:13,400 --> 00:37:14,640 What's your revenue like now? 700 00:37:14,720 --> 00:37:19,120 In 2022-23, our revenue was Rs. 63 lakhs. 701 00:37:19,200 --> 00:37:20,120 Wow! Not bad. 702 00:37:20,200 --> 00:37:24,400 In 2023-24, our revenue was Rs. 1.75 crores. 703 00:37:24,480 --> 00:37:25,360 - Wow. - Very good. 704 00:37:25,480 --> 00:37:29,160 And this year in 2024-25, 705 00:37:29,240 --> 00:37:31,520 we've done Rs. 1.32 crores so far. 706 00:37:31,600 --> 00:37:32,600 Projected revenue? 707 00:37:41,560 --> 00:37:43,560 What's your profit? Do you make any? 708 00:37:43,680 --> 00:37:45,240 No, we're EBITDA negative. 709 00:37:45,360 --> 00:37:46,560 What's your burn? 710 00:37:46,880 --> 00:37:50,040 We burn Rs. 3 lakhs monthly. 711 00:37:50,200 --> 00:37:53,320 Our COGS is 25%, commission is 6%, 712 00:37:53,440 --> 00:37:55,520 return and damages is 4%, 713 00:37:55,600 --> 00:37:57,440 salary and wages is 7%, 714 00:37:57,560 --> 00:37:59,240 shipping is 26%... 715 00:37:59,360 --> 00:38:01,600 - Shipping is 26%! - Yes. 716 00:38:01,760 --> 00:38:02,640 - Wow! - Shipping is expensive. 717 00:38:02,760 --> 00:38:05,000 - Your shipping is more than your COGS. - Yes. 718 00:38:05,080 --> 00:38:07,600 Our marketing is 36%, 719 00:38:07,720 --> 00:38:09,160 overheads are 3%... 720 00:38:10,040 --> 00:38:12,760 Who's the biggest player in detergents currently? 721 00:38:12,840 --> 00:38:15,160 - Wheel, Ghadi... - Surf Excel. 722 00:38:15,240 --> 00:38:16,320 - Surf Excel. - Surf Excel. 723 00:38:16,440 --> 00:38:18,960 How do you plan to protect yourself? 724 00:38:19,320 --> 00:38:23,680 Aman, the biggest advantage, which we consider a moat, 725 00:38:23,960 --> 00:38:25,400 is the early-mover advantage. 726 00:38:25,480 --> 00:38:26,840 Have you no other advantage? 727 00:38:26,920 --> 00:38:28,640 So, this is the reason 728 00:38:28,720 --> 00:38:31,240 we've been proactive from the start. 729 00:38:31,320 --> 00:38:34,320 We find our gaps, understand them, 730 00:38:34,400 --> 00:38:37,640 take feedback from the customers and try to fill them 731 00:38:37,720 --> 00:38:38,920 so that as a customer, you... 732 00:38:39,040 --> 00:38:41,440 As a chemical, you have no patent! 733 00:38:41,520 --> 00:38:44,160 These formulas aren't patentable in nature. 734 00:38:44,320 --> 00:38:50,200 - So... - So, if Anupam wanted to do this today, he could. 735 00:38:50,280 --> 00:38:54,280 He could, but there's no guarantee how effective his product would be. 736 00:38:54,920 --> 00:38:56,520 Tell me what your vision is 737 00:38:56,640 --> 00:38:58,480 and how you'll get there. 738 00:38:58,560 --> 00:39:00,760 - I'll tell you a few calculations. - All right. 739 00:39:00,840 --> 00:39:03,360 I've considered only women for now, 740 00:39:03,480 --> 00:39:04,880 and that too only menstruating women 741 00:39:04,920 --> 00:39:06,640 - in the urban population only. - Good. 742 00:39:06,720 --> 00:39:08,560 Okay? With some kind of disposable income. 743 00:39:08,640 --> 00:39:11,320 So, our estimated potential women users 744 00:39:11,560 --> 00:39:13,600 - in India is between 4 to 5 crores. - Got it. 745 00:39:19,800 --> 00:39:22,160 How big a company can you build? Why are you shying from that? 746 00:39:22,200 --> 00:39:23,960 - No, I'm not... - How big will you be in 3 years? 747 00:39:23,960 --> 00:39:25,200 What will your revenue be? 748 00:39:25,280 --> 00:39:28,840 3 years from now, in terms of revenue, 749 00:39:28,920 --> 00:39:32,040 we'll easily achieve Rs. 5 to 6 crores a month. 750 00:39:38,880 --> 00:39:39,960 - Um... - I guess not. 751 00:39:40,080 --> 00:39:41,240 Why not? Are you scared? 752 00:39:41,320 --> 00:39:42,200 - No. - Then? 753 00:39:42,280 --> 00:39:45,920 We've created a new category around underwear hygiene. 754 00:39:46,040 --> 00:39:47,840 We would like to stick to that. 755 00:39:48,480 --> 00:39:49,680 Who's the CEO of the business? 756 00:39:49,760 --> 00:39:51,080 - I am the CEO. - She's the CEO. 757 00:39:51,160 --> 00:39:52,360 Why are you the CEO? 758 00:39:52,520 --> 00:39:53,840 [sombre music playing] 759 00:39:54,520 --> 00:39:55,520 Why not? 760 00:39:56,200 --> 00:39:57,640 Because I deserve to be the CEO. 761 00:39:57,760 --> 00:39:59,960 Well done! Well said. 762 00:40:01,960 --> 00:40:02,840 Good one. 763 00:40:02,960 --> 00:40:04,360 Because she actually deserves it. 764 00:40:07,720 --> 00:40:10,520 Your business is quite delicate and niche. 765 00:40:10,880 --> 00:40:14,200 And I prodded you to understand if your vision was big. 766 00:40:14,520 --> 00:40:16,160 You stuck with niche. 767 00:40:16,320 --> 00:40:19,360 How big the business will be, what will be its valuation, 768 00:40:19,520 --> 00:40:21,120 - how will an investor get an exit... - Hmm. 769 00:40:21,120 --> 00:40:22,760 All that remains unclear. 770 00:40:23,000 --> 00:40:24,200 But I like you two. 771 00:40:24,920 --> 00:40:26,240 I think you guys are fantastic. 772 00:40:26,360 --> 00:40:29,800 Your determination, the way you designed the product 773 00:40:29,880 --> 00:40:32,760 and your thinking, aesthetically and even from a product standpoint, 774 00:40:33,120 --> 00:40:34,120 is quite strong. 775 00:40:34,320 --> 00:40:37,360 I'm ready to give you Rs. 50 lakhs but I'll take 5% equity. 776 00:40:38,800 --> 00:40:40,240 Because this is going to take time 777 00:40:40,800 --> 00:40:42,160 and this is going to take effort. 778 00:40:42,240 --> 00:40:45,720 I saw that your quick commerce business... 779 00:40:45,720 --> 00:40:48,120 You said only 2% of your sales is coming from there. 780 00:40:48,200 --> 00:40:49,720 - We just started it. - We... 781 00:40:49,800 --> 00:40:51,480 - This is the second month on Blinkit. - It should fly. 782 00:40:51,520 --> 00:40:54,200 We all work very closely with quick commerce. 783 00:40:54,280 --> 00:40:57,040 - We put all our brands on them very quickly. - Yes. 784 00:40:57,160 --> 00:41:00,160 You know everyone wants to be on quick commerce, right? 785 00:41:00,240 --> 00:41:01,680 It requires strategy. 786 00:41:01,760 --> 00:41:04,720 If you remain so niche, someone might take your business. 787 00:41:04,800 --> 00:41:06,280 Somebody will come, create a category, 788 00:41:06,320 --> 00:41:07,920 spend Rs. 10 crores on advertising. 789 00:41:08,040 --> 00:41:10,880 Rs. 100 crores isn't even needed in this category, and finish you! 790 00:41:11,520 --> 00:41:13,920 So, that's my offer. I think my time is worth a lot. 791 00:41:14,040 --> 00:41:16,240 - Anupam, thank you for the offer. - Thank you so much. 792 00:41:16,560 --> 00:41:19,120 What has bothered me from the start is 793 00:41:19,200 --> 00:41:21,760 that you've to create a brand, right? 794 00:41:21,880 --> 00:41:26,240 And your communication requires a certain sharpness 795 00:41:26,320 --> 00:41:29,400 but I didn't see any emphasis on it. 796 00:41:29,960 --> 00:41:34,440 So, I'm not feeling confident that this brand can scale. 797 00:41:34,520 --> 00:41:37,720 This product has huge potential to become an OTC product. 798 00:41:37,800 --> 00:41:40,160 There's a wide range of doctors, dermatologists, gynaecologists 799 00:41:40,160 --> 00:41:41,760 who can actually recommend this product. 800 00:41:43,320 --> 00:41:44,320 Aman! 801 00:41:46,120 --> 00:41:48,320 I like your persistence. 802 00:41:48,760 --> 00:41:50,240 I was going to be out, 803 00:41:50,480 --> 00:41:51,840 but I'll make you an offer. 804 00:41:53,280 --> 00:41:55,480 Aman and I will collaborate. 805 00:41:55,640 --> 00:41:59,120 We'll give you Rs. 50 lakhs for 6% equity. 806 00:42:03,760 --> 00:42:05,200 [tense music playing] 807 00:42:06,520 --> 00:42:09,560 Yes, sir. If we could listen to Ritesh and Peyush, please. 808 00:42:09,840 --> 00:42:11,240 You have better offers. 809 00:42:11,280 --> 00:42:13,120 They're willing to give you time. 810 00:42:13,760 --> 00:42:15,760 And the trade and distribution will take a long time. 811 00:42:15,800 --> 00:42:18,720 I'd like to spend that time with another company 812 00:42:18,880 --> 00:42:22,640 but you have incredible strength as a combination. 813 00:42:22,720 --> 00:42:24,160 You'll do well. Many best wishes. 814 00:42:24,280 --> 00:42:25,760 - Thank you. - Thank you so much. 815 00:42:26,480 --> 00:42:28,560 I think the problem in this business is this. 816 00:42:28,920 --> 00:42:31,840 I've observed this in D2C in the last two or three seasons. 817 00:42:31,960 --> 00:42:34,920 After reaching a certain scale, there is a struggle. 818 00:42:35,680 --> 00:42:37,800 The scale is a big issue 819 00:42:37,920 --> 00:42:39,880 and because there's no defensible moat, 820 00:42:39,960 --> 00:42:42,080 this turns into a marketing game 821 00:42:42,160 --> 00:42:43,960 where money consumption is very high. 822 00:42:44,080 --> 00:42:46,120 So, all in all, it is all about execution. 823 00:42:46,320 --> 00:42:47,520 I'm out for now. 824 00:42:48,040 --> 00:42:49,880 - I have a piece of advice. - Yes. 825 00:42:49,960 --> 00:42:52,320 I would say you should tie up with lingerie brands. 826 00:42:52,560 --> 00:42:54,480 Create the category, that will bring in money. 827 00:42:54,600 --> 00:42:57,200 For example, shoe stores will sell you polish too. 828 00:42:57,280 --> 00:42:58,120 - Right. - Right? 829 00:42:58,200 --> 00:42:59,640 I think I'd highly recommend 830 00:42:59,720 --> 00:43:01,320 that is a very good way 831 00:43:01,440 --> 00:43:03,280 for you to add scale to the business. 832 00:43:05,880 --> 00:43:09,160 Is there any possibility all three of you could come? 833 00:43:09,920 --> 00:43:10,920 No! 834 00:43:12,440 --> 00:43:13,640 I won't come. 835 00:43:13,720 --> 00:43:15,360 The ownership is the problem. 836 00:43:15,440 --> 00:43:18,600 As I said, 1 to 2% wouldn't get much work done in the beginning. 837 00:43:18,680 --> 00:43:20,880 - Yes. - Given the time we invest, if you want the time. 838 00:43:20,960 --> 00:43:23,520 - Don't want the time, then I'd rather not invest. - No, sure! 839 00:43:23,640 --> 00:43:24,720 Could you... 840 00:43:26,400 --> 00:43:29,000 Rs. 50 lakhs for 3.3% equity. 841 00:43:29,160 --> 00:43:30,160 Can this be done? 842 00:43:30,520 --> 00:43:32,840 I'll agree to 4%, but say yes or no right now. 843 00:43:32,920 --> 00:43:34,120 [tense music playing] 844 00:43:39,400 --> 00:43:40,760 4%. Yes or no? 845 00:43:42,680 --> 00:43:45,680 Samiksha, I guess we could go with Anupam. 846 00:43:47,200 --> 00:43:48,240 - Yes? No? - Okay? 847 00:43:48,560 --> 00:43:49,800 - Should I tear it? - No. 848 00:43:52,720 --> 00:43:54,520 - Anupam, deal closed. - Deal closed. 849 00:43:54,600 --> 00:43:55,600 Great decision. 850 00:43:55,680 --> 00:43:57,920 - Namita! Aman! Thank you so much... - Thank you so much. 851 00:43:58,000 --> 00:43:59,520 - Thank you. - But really sorry. 852 00:43:59,640 --> 00:44:01,720 - I value your judgement more now. - I ought to pray. 853 00:44:01,760 --> 00:44:03,440 I've to pray after I go home anyway. 854 00:44:04,000 --> 00:44:05,080 Well done, both of you. 855 00:44:05,200 --> 00:44:06,760 - Well done. - Nice meeting you. 856 00:44:07,680 --> 00:44:08,680 [camera shutter clicking] 857 00:44:09,640 --> 00:44:11,840 - Thank you, everyone. - All the best, do well. 858 00:44:11,960 --> 00:44:13,080 - All the best. - Go get it. 859 00:44:13,600 --> 00:44:15,720 Namita has a network 860 00:44:15,880 --> 00:44:17,920 of doctors and professionals in the medical field, 861 00:44:18,000 --> 00:44:19,720 which is relevant to our products 862 00:44:20,000 --> 00:44:23,200 but Anupam is one Shark who goes very deep. 863 00:44:23,320 --> 00:44:24,800 He will help us a lot, I'm sure. 864 00:44:25,040 --> 00:44:26,400 [upbeat music playing] 865 00:44:32,800 --> 00:44:36,160 Welcome to ACKO Change Makers where we really welcome change, 866 00:44:36,280 --> 00:44:41,400 whose lovely portrayal we saw on our Change Makers wall. 867 00:44:46,600 --> 00:44:49,400 Today's Change Makers are Rahul and Samiksha. 868 00:44:49,560 --> 00:44:50,640 Tell us something. 869 00:44:50,720 --> 00:44:52,120 To our audiences who're tuned in, 870 00:44:52,240 --> 00:44:55,280 what changes can they bring in their personal hygiene 871 00:44:55,440 --> 00:44:57,720 on a personal level that might help them? 872 00:44:57,840 --> 00:45:00,000 You need to understand one thing. 873 00:45:00,080 --> 00:45:01,840 Our product specifically, 874 00:45:01,960 --> 00:45:04,200 - is meant to clean underwear. - Yes. 875 00:45:04,320 --> 00:45:06,200 Underwear is the only garment 876 00:45:06,280 --> 00:45:09,440 - that is always in direct contact with highly sensitive skin. - Yes. 877 00:45:09,520 --> 00:45:12,200 And you're using regular detergent to clean it 878 00:45:12,320 --> 00:45:14,480 but have no idea of its components. 879 00:45:14,600 --> 00:45:15,720 In the home care industry, 880 00:45:15,800 --> 00:45:18,680 - it's not mandatory to disclose all the ingredients. - Hmm. 881 00:45:18,760 --> 00:45:20,280 We're a part of that industry too. 882 00:45:20,440 --> 00:45:22,880 Nevertheless, we've disclosed all our ingredients 883 00:45:23,000 --> 00:45:25,800 - so that our customers can make an informed decision. - Okay. 884 00:45:25,920 --> 00:45:28,960 They ought to know what is in the product they're using 885 00:45:29,120 --> 00:45:31,480 apart from its positives and negatives. 886 00:45:31,600 --> 00:45:35,240 So, that is the pillar on which we are trying to build this brand. 887 00:45:35,360 --> 00:45:37,720 How nice! You're bringing about such an impactful change. 888 00:45:37,800 --> 00:45:40,440 With its range of revolutionary offerings, 889 00:45:40,520 --> 00:45:42,880 ACKO has totally changed the insurance landscape. 890 00:45:43,120 --> 00:45:45,680 Like 100% bill payments in health insurance 891 00:45:45,840 --> 00:45:48,160 which ensures that customers don't have to worry about 892 00:45:48,240 --> 00:45:49,920 out-of-pocket expenses during claims. 893 00:45:50,000 --> 00:45:51,760 Appreciating this change, 894 00:45:51,840 --> 00:45:53,400 on behalf of Shark Tank and ACKO, 895 00:45:53,560 --> 00:45:56,000 I'd like to give you a special gift to celebrate you. 896 00:45:56,120 --> 00:45:57,120 - Thank you. - Thank you. 897 00:46:02,160 --> 00:46:03,000 Thank you so much. 898 00:46:03,080 --> 00:46:05,480 We appreciate the change that you're making. Congratulations. 899 00:46:05,600 --> 00:46:06,880 - Thank you so much. - Thanks a lot. 900 00:46:06,920 --> 00:46:08,000 [camera shutter clicking] 901 00:46:08,400 --> 00:46:11,320 'Shark Tank India co-presented by ACKO Insurance,' 902 00:46:11,400 --> 00:46:13,520 'PokerBaazi and Swiggy Instamart.' 903 00:46:13,600 --> 00:46:16,240 'Co-powered by Adani and Jaquar Bath & Light,' 904 00:46:16,320 --> 00:46:19,400 'and partners Rayzon Solar, ICICI Direct,' 905 00:46:19,480 --> 00:46:21,000 'Lenskart and Sofy.' 906 00:46:21,040 --> 00:46:23,040 [theme music playing] 907 00:46:45,240 --> 00:46:46,880 [theme music concludes] 908 00:46:47,080 --> 00:46:49,760 Yogesh, I started a marketing agency. 909 00:46:49,960 --> 00:46:51,880 I can't decide where to get an office space. 910 00:46:52,120 --> 00:46:54,680 Get it at any of those big office buildings. 911 00:46:55,920 --> 00:46:59,640 These big buildings don't offer small office spaces. 912 00:47:01,280 --> 00:47:04,280 Don't be so dramatic. Take it in a coworking space. 913 00:47:04,360 --> 00:47:06,320 My team consists of 4 to 6 people. 914 00:47:06,480 --> 00:47:09,920 I've tried basements, apartments and even coworking spaces 915 00:47:10,040 --> 00:47:11,680 but I couldn't find a good coworking space 916 00:47:11,720 --> 00:47:13,240 that fits my budget. 917 00:47:27,480 --> 00:47:30,000 are just not available! 918 00:47:35,680 --> 00:47:37,680 AltF Coworking not only provides 919 00:47:37,760 --> 00:47:41,240 a private space to micro-businesses 920 00:47:41,320 --> 00:47:43,240 in budget-friendly prices, 921 00:47:43,320 --> 00:47:45,400 but also provides an environment 922 00:47:45,480 --> 00:47:47,720 better than the modern and professional workspaces 923 00:47:47,840 --> 00:47:50,320 of top-notch companies in India. 924 00:47:57,400 --> 00:47:59,600 Today, on an asset-lite model, 925 00:48:12,400 --> 00:48:15,240 Our vision is to be present in every city 926 00:48:15,320 --> 00:48:17,440 and provide a macro feel to micro-businesses. 927 00:48:28,120 --> 00:48:28,920 Great! 928 00:48:29,000 --> 00:48:32,120 - Sarthak! Yogesh! Welcome to Shark Tank. - Thank you. 929 00:48:32,200 --> 00:48:34,520 I've conducted a meeting at AltF as you already know. 930 00:48:35,040 --> 00:48:37,600 - Lenskart used to have an office in AltF. - Yes. 931 00:48:37,680 --> 00:48:38,800 I've been a customer. 932 00:48:39,000 --> 00:48:41,400 I know you've been at it for years! 933 00:48:41,520 --> 00:48:42,360 [laughter] 934 00:48:42,440 --> 00:48:43,880 It's been 5 or 6 years. 935 00:48:44,040 --> 00:48:47,200 Your energy is the same and you're still bootstrapped. 936 00:48:47,400 --> 00:48:48,760 So, good to see you here. 937 00:48:48,880 --> 00:48:51,200 - Yes, I never asked you... - Is that... 938 00:48:51,280 --> 00:48:53,160 - Is that good or bad? - That's good. 939 00:48:53,240 --> 00:48:55,720 It also means no one funded them. 940 00:48:55,800 --> 00:48:57,720 No, I don't think they raised funds because... 941 00:48:57,840 --> 00:48:59,960 They'll tell us why. Tell us the story. 942 00:49:00,080 --> 00:49:01,800 Did you raise funds or not? How have you thrived? 943 00:49:01,840 --> 00:49:02,840 So, our journey... 944 00:49:03,040 --> 00:49:05,960 Yogesh and my independent journey began in 2010. 945 00:49:06,160 --> 00:49:09,520 We did our engineering at NSIT from 2010 to 2014. 946 00:49:16,960 --> 00:49:19,200 So, we both took up jobs in Gurugram after college. 947 00:49:19,280 --> 00:49:20,360 After the job, 948 00:49:20,560 --> 00:49:23,480 we began working on different projects after office hours. 949 00:49:23,560 --> 00:49:25,920 The first problem we faced was, where do we do it? 950 00:49:26,080 --> 00:49:27,720 Where do we meet after office? 951 00:49:28,920 --> 00:49:30,920 So, we had to take up seats in a coworking space 952 00:49:31,000 --> 00:49:32,960 and we began working on other projects. 953 00:49:33,080 --> 00:49:35,560 Our other projects weren't fruitful, 954 00:49:35,680 --> 00:49:37,920 but we were highly intrigued by coworking spaces 955 00:49:38,120 --> 00:49:41,320 because it was actually solving the problems of businesses like us. 956 00:49:41,440 --> 00:49:44,080 Then we decided to get into the coworking space area. 957 00:49:44,200 --> 00:49:45,960 We tried through cafes 958 00:49:46,040 --> 00:49:48,480 by turning them to coworking spaces in the daytime. 959 00:49:49,760 --> 00:49:52,960 We realised there were many infrastructure issues with cafes. 960 00:49:53,040 --> 00:49:56,440 Yogesh landed in a random guesthouse by chance. 961 00:49:56,720 --> 00:49:57,760 It was an OYO guesthouse. 962 00:49:57,840 --> 00:50:01,120 It had a basement with two bad-looking dining tables. 963 00:50:01,200 --> 00:50:02,360 We told the landlord 964 00:50:02,520 --> 00:50:05,880 to let us sell two seats at those two dining tables 965 00:50:05,960 --> 00:50:07,120 and with the proceeds, 966 00:50:07,240 --> 00:50:09,840 we would buy more furniture and then, sell those seats. 967 00:50:09,960 --> 00:50:11,760 So, we sold those two seats. 968 00:50:11,920 --> 00:50:14,200 That fetched us Rs. 10,000 and we bought more furniture. 969 00:50:14,440 --> 00:50:16,400 Gradually, we turned that basement 970 00:50:16,480 --> 00:50:18,480 into a coworking space with 60 seats. 971 00:50:18,640 --> 00:50:20,360 It generated a rent of Rs. 3 lakhs 972 00:50:20,440 --> 00:50:23,200 which was equivalent to the income the entire guesthouse generated. 973 00:50:24,000 --> 00:50:24,840 Very nice. 974 00:50:24,920 --> 00:50:27,440 The landlord was extremely satisfied with our project. 975 00:50:27,600 --> 00:50:30,280 By this time, we had understood people's requirement, 976 00:50:30,400 --> 00:50:32,200 which we follow at AltF to date. 977 00:50:32,400 --> 00:50:35,120 It's that every micro-business, no matter how small, 978 00:50:35,240 --> 00:50:37,200 requires a space of its own. 979 00:50:37,880 --> 00:50:39,920 So, what we did was, from the two rooms upstairs... 980 00:50:40,080 --> 00:50:40,960 Sorry, Ritesh. 981 00:50:41,080 --> 00:50:43,680 We had the beds taken out of the two rooms upstairs 982 00:50:43,840 --> 00:50:45,160 and put tables there instead. 983 00:50:45,240 --> 00:50:48,560 We offered that as a private room with a personal washroom. 984 00:50:48,680 --> 00:50:49,880 - Nice. - That concept took off. 985 00:50:49,880 --> 00:50:53,400 The entire building had been converted into AltF Coworking. 986 00:50:53,480 --> 00:50:54,880 It went from OYO to AltF. 987 00:50:55,000 --> 00:50:56,240 - Yes. - [laughter] 988 00:50:56,800 --> 00:50:58,680 Today, in AltF's every product, 989 00:50:58,760 --> 00:51:02,200 99.9% of seats or inventory 990 00:51:02,280 --> 00:51:04,280 is only in the rooms, 991 00:51:10,640 --> 00:51:14,600 to solely invest in the furnishing on our behalf, 992 00:51:14,720 --> 00:51:16,720 design the space as per our requirement 993 00:51:16,960 --> 00:51:18,640 and then, we'd move... 994 00:51:18,720 --> 00:51:21,960 But even then, we wouldn't have the capability to rent it out, 995 00:51:22,160 --> 00:51:23,800 so we'd share the profits with them. 996 00:51:24,280 --> 00:51:26,640 Even today, AltF takes all its properties 997 00:51:26,720 --> 00:51:28,440 on a profit-sharing model 998 00:51:28,520 --> 00:51:31,360 where the sole investment is made by the landlord. 999 00:51:37,280 --> 00:51:39,200 where 70% goes to the landlord. 1000 00:51:39,680 --> 00:51:41,840 Our target market, 1001 00:51:41,920 --> 00:51:44,240 which is very different from other coworking spaces, 1002 00:51:44,360 --> 00:51:47,360 is only micro-businesses 1003 00:51:55,000 --> 00:51:57,000 Explain this in simple terms. 1004 00:51:57,080 --> 00:52:00,080 What are the different types of coworking spaces 1005 00:52:00,240 --> 00:52:01,680 and what model do they operate on? 1006 00:52:01,760 --> 00:52:04,120 Separately, from both the customer and the supply side. 1007 00:52:04,760 --> 00:52:06,880 If I look at it from a member side, 1008 00:52:06,960 --> 00:52:09,360 the market is divided by two metrics. 1009 00:52:09,440 --> 00:52:11,800 One is the seat size and the other is pricing. 1010 00:52:11,880 --> 00:52:17,680 So, coworking spaces offering 0 to 150 seats already exist. 1011 00:52:34,360 --> 00:52:35,640 Theirs is a demand-first model 1012 00:52:35,720 --> 00:52:36,840 where the client approaches them, 1013 00:52:36,880 --> 00:52:39,360 the workspace is designed and managed as per their requirement. 1014 00:52:48,800 --> 00:52:50,800 and the dependency is long-term. 1015 00:52:50,880 --> 00:52:55,080 These factors make every coworking space a lucrative business. 1016 00:52:55,200 --> 00:52:56,240 In both the scenarios, 1017 00:52:56,320 --> 00:52:58,440 micro-businesses have been overlooked. 1018 00:52:58,520 --> 00:53:00,320 - So, we're headed in that direction... - Understood. 1019 00:53:00,360 --> 00:53:03,680 Since no one is dedicatedly working for them. 1020 00:53:14,480 --> 00:53:16,360 - I want to give you a VR experience. - Sure. 1021 00:53:16,440 --> 00:53:19,120 - I want to take you there virtually. - Let's go. 1022 00:53:21,720 --> 00:53:24,160 Sir, this is a recently-launched space 1023 00:53:24,240 --> 00:53:25,960 - about 1.5 months back. - Where is it? 1024 00:53:26,280 --> 00:53:27,760 Sohna Road, Gurugram. 1025 00:53:37,600 --> 00:53:39,320 This is the lounge and the cafe. 1026 00:53:39,560 --> 00:53:41,040 The interiors and design 1027 00:53:41,400 --> 00:53:43,360 are almost the same as a premium coworking space. 1028 00:53:44,240 --> 00:53:45,560 When you look at this place, 1029 00:53:45,640 --> 00:53:48,720 don't imagine it as a big office space. 1030 00:53:48,800 --> 00:53:50,520 Imagine just 4 seats. 1031 00:53:50,640 --> 00:53:54,240 This is for probably a lawyer and his two associates. 1032 00:53:54,440 --> 00:53:57,760 You're an office within an office. 1033 00:53:58,200 --> 00:54:00,240 So, I'm buying seats from you eventually, 1034 00:54:00,360 --> 00:54:01,920 but I'm taking an office 1035 00:54:02,000 --> 00:54:04,840 be it for 4, 8 or 16 people, 1036 00:54:04,920 --> 00:54:05,920 and that's what you sell. 1037 00:54:06,000 --> 00:54:07,000 - Yes. - Right, sir. 1038 00:54:07,080 --> 00:54:10,280 Your office is an 8-seater. Suppose someone wants only 6 seats. 1039 00:54:10,520 --> 00:54:12,840 Would they have to pay for 8 seats? Can't they pay for 6? 1040 00:54:12,960 --> 00:54:14,520 - No. - We make this inventory 1041 00:54:14,640 --> 00:54:16,600 as per our data. 1042 00:54:16,680 --> 00:54:19,240 - Got it. - Our demand helps us figure that out 1043 00:54:19,320 --> 00:54:20,360 and this helps us 1044 00:54:20,440 --> 00:54:24,480 to have over 90% occupancy at the centre at all times. 1045 00:54:24,600 --> 00:54:26,520 The common spaces are common to everybody 1046 00:54:26,600 --> 00:54:28,680 like the cafeteria and bathrooms. 1047 00:54:28,800 --> 00:54:30,000 Those are shared. 1048 00:54:30,080 --> 00:54:32,840 That brings value and builds economics 1049 00:54:32,960 --> 00:54:34,560 - for the renter also. - Yes. 1050 00:54:34,880 --> 00:54:36,920 Firstly, your designs are top-notch. 1051 00:54:37,000 --> 00:54:38,360 I'll give you credit for that. 1052 00:54:38,560 --> 00:54:40,480 You're doing this at half the cost. 1053 00:54:40,680 --> 00:54:43,800 That means you're offering the product 1054 00:54:43,880 --> 00:54:46,200 at a price similar or lesser to our segment, 1055 00:54:46,320 --> 00:54:47,320 which is great. 1056 00:54:48,240 --> 00:54:49,520 The experience was wonderful. 1057 00:54:49,640 --> 00:54:51,080 I now know what it looks like 1058 00:54:51,160 --> 00:54:52,640 without having physically gone there. 1059 00:54:52,720 --> 00:54:53,560 Tell me something. 1060 00:54:53,640 --> 00:54:56,320 Fundamentally, these businesses are doing well in India, 1061 00:54:56,440 --> 00:54:58,080 but not globally. 1062 00:54:58,360 --> 00:54:59,200 Why so? 1063 00:54:59,280 --> 00:55:02,560 The biggest company shut down. 1064 00:55:02,840 --> 00:55:05,240 In India, I guess business sense is very high 1065 00:55:05,320 --> 00:55:07,840 the way people are running these companies. 1066 00:55:08,040 --> 00:55:10,000 As for the global scenario, 1067 00:55:10,080 --> 00:55:12,280 the rental per square foot... 1068 00:55:12,680 --> 00:55:15,320 - No, I don't wish to comment. I have no idea. - It's not true. 1069 00:55:15,400 --> 00:55:17,960 Internationally, the macro-market is failing. 1070 00:55:18,960 --> 00:55:20,000 It's diminishing. 1071 00:55:20,120 --> 00:55:22,560 In India, the commercial market is rising. 1072 00:55:22,720 --> 00:55:24,080 That's the fundamental difference. 1073 00:55:24,160 --> 00:55:25,720 I beg to differ. 1074 00:55:25,840 --> 00:55:30,160 WeWork is one brand that wasn't successful internationally, 1075 00:55:30,440 --> 00:55:33,320 but there are many brands that are still running successfully. 1076 00:55:33,600 --> 00:55:37,440 Is your business model different from others or is it similar? 1077 00:55:37,520 --> 00:55:38,320 There are two differences. 1078 00:55:38,400 --> 00:55:39,840 One is on the demand side. 1079 00:55:39,960 --> 00:55:42,600 The point is, that we focus only on micro-businesses. 1080 00:55:51,440 --> 00:55:54,240 On the supply side, majority of the coworking spaces 1081 00:55:54,360 --> 00:55:56,680 either rent out properties or furnish it themselves. 1082 00:55:56,760 --> 00:55:58,760 We've designed a model 1083 00:55:58,840 --> 00:56:02,640 where the landlord is motivated to fully invest in our space 1084 00:56:02,720 --> 00:56:06,800 and then lease it out to us without a fixed rental 1085 00:56:06,880 --> 00:56:10,680 where we pay him flexibly according to occupancy and profits. 1086 00:56:10,800 --> 00:56:13,080 What do you mean by flexible payment to a landlord? 1087 00:56:13,200 --> 00:56:14,600 By flexibility, we mean 1088 00:56:14,840 --> 00:56:17,800 we operate with a landlord on a profit-sharing model. 1089 00:56:17,920 --> 00:56:20,600 80% of our properties are on a pure profit-sharing model, 1090 00:56:20,720 --> 00:56:23,640 10% with a minimum guarantee and 10% on a fixed rental. 1091 00:56:23,800 --> 00:56:25,680 We'll take it to 100% in some time. 1092 00:56:25,760 --> 00:56:27,600 So, on a month-on-month basis, 1093 00:56:27,680 --> 00:56:30,400 the landlord gets revenue on the basis of occupancy. 1094 00:56:30,720 --> 00:56:33,760 So, the revenue minus the operating expenses 1095 00:56:33,840 --> 00:56:35,280 gives us the profit 1096 00:56:35,480 --> 00:56:37,560 out of which 70% goes to the landlord 1097 00:56:37,640 --> 00:56:38,840 and 30% comes to us. 1098 00:56:38,920 --> 00:56:40,560 After operating expenses! 1099 00:56:40,640 --> 00:56:42,840 - After operating expenses. - But that's under your control. 1100 00:56:42,840 --> 00:56:44,480 How would the landlord know how much you spent? 1101 00:56:44,520 --> 00:56:46,400 Explain the economics from a landlord's point of view. 1102 00:56:46,440 --> 00:56:50,040 Suppose I have a property of 25,000 square feet. 1103 00:56:50,160 --> 00:56:51,280 Why should I invest in you 1104 00:56:51,400 --> 00:56:53,720 when I can turn it into an office and rent it out myself? 1105 00:56:54,120 --> 00:56:55,840 Tell us the economics from the beginning. 1106 00:56:55,920 --> 00:56:57,720 Let's take the example of Orchid Centre. 1107 00:56:57,800 --> 00:56:59,280 What is the expenditure 1108 00:56:59,520 --> 00:57:01,240 and what would my payback be... 1109 00:57:01,320 --> 00:57:02,920 - As a landlord. - As a landlord. 1110 00:57:03,040 --> 00:57:06,640 Our expenditure comes to Rs. 60,000 per seat 1111 00:57:06,760 --> 00:57:09,040 which the landlord bears, not us. 1112 00:57:09,920 --> 00:57:10,800 For example. 1113 00:57:10,880 --> 00:57:14,680 - It'd take Rs. 6 crores to launch a centre for 1,000 seats. - Got it. 1114 00:57:14,760 --> 00:57:17,160 Coming to the payback period for a premium location, 1115 00:57:34,960 --> 00:57:36,800 After how many years, do you need to spend that again? 1116 00:57:36,800 --> 00:57:38,760 - Very good question, Anupam. - Yes. 1117 00:57:38,960 --> 00:57:41,240 What are the benefits of a landlord partnering with us 1118 00:57:41,320 --> 00:57:44,840 - versus renting out an office to a fixed client? - Right. 1119 00:57:44,920 --> 00:57:45,920 Here are the benefits. 1120 00:57:45,960 --> 00:57:47,760 If he rents out the office to a client, 1121 00:57:47,840 --> 00:57:50,200 after the lock-in period of 3 years, 1122 00:57:50,280 --> 00:57:52,360 the client is not motivated 1123 00:57:52,440 --> 00:57:54,520 to stay at the same property after 3 or 4 years 1124 00:57:54,600 --> 00:57:57,160 because the entire real estate market will try to lure him. 1125 00:57:57,240 --> 00:57:59,760 No! If the client does a CapEx, 1126 00:57:59,880 --> 00:58:01,520 which they mostly do, 1127 00:58:01,600 --> 00:58:03,560 then they don't leave or that money gets wasted. 1128 00:58:03,680 --> 00:58:05,600 - Anupam, those days are over. - Okay. 1129 00:58:05,720 --> 00:58:08,000 Earlier, bare shell properties could get leased. 1130 00:58:08,120 --> 00:58:10,320 - Not any more. - Today, if a landlord 1131 00:58:10,440 --> 00:58:12,360 wants to rent out his property, they have to... 1132 00:58:12,440 --> 00:58:13,640 [indistinct] 1133 00:58:13,720 --> 00:58:16,400 They have to spend on renovation and furnishing. 1134 00:58:16,480 --> 00:58:17,400 Got it. 1135 00:58:17,480 --> 00:58:20,240 Do you have landlords who are offering more and more properties? 1136 00:58:20,320 --> 00:58:22,640 Exactly. 90% of our landlords 1137 00:58:22,720 --> 00:58:25,680 have either given us another real estate asset 1138 00:58:33,040 --> 00:58:34,000 Coming to the demand. 1139 00:58:34,080 --> 00:58:37,280 Our existing customers take 25% of those seats. 1140 00:58:37,360 --> 00:58:41,000 We have a 35%-dependency on broker channel partners. 1141 00:58:41,080 --> 00:58:43,560 That leaves us with 40%. 1142 00:58:43,680 --> 00:58:46,880 Out of that, 20% comes from our organic traffic, 1143 00:58:46,960 --> 00:58:48,520 10% comes from walk-ins, 1144 00:58:48,600 --> 00:58:53,120 5% comes from paid marketing and 5% is from others. 1145 00:58:54,360 --> 00:58:55,360 Let's get to the numbers. 1146 00:58:55,400 --> 00:58:56,680 Hmm, Tell us your numbers. 1147 00:58:56,800 --> 00:58:58,880 Our journey began in 2016. 1148 00:58:59,040 --> 00:59:01,960 In 2016, our revenue was Rs. 90 lakhs. 1149 00:59:02,360 --> 00:59:03,840 When you say revenue, 1150 00:59:03,920 --> 00:59:06,720 - you mean gross rental value. - Yes. 1151 00:59:06,800 --> 00:59:08,920 - Okay, then. - Rs. 3 crores in 2017-18. 1152 00:59:09,080 --> 00:59:11,400 - Okay. - Rs. 8 crores in 2018-19. 1153 00:59:12,320 --> 00:59:14,000 Rs. 13 crores in 2019-20. 1154 00:59:14,720 --> 00:59:18,200 Our revenue dropped during the pandemic to Rs. 6 crores. 1155 00:59:18,280 --> 00:59:20,080 We rose to Rs. 11 crores in 2021-22. 1156 00:59:20,160 --> 00:59:21,960 We did Rs. 21 crores in 2022-23. 1157 00:59:23,280 --> 00:59:25,040 We did Rs. 30 crores in 2023-24. 1158 00:59:25,760 --> 00:59:28,520 We'll close this year at Rs. 50 crores. 1159 00:59:33,080 --> 00:59:34,880 Good, but let's clarify 1160 00:59:38,400 --> 00:59:40,640 If we deduct the operating expenses, 1161 00:59:40,720 --> 00:59:42,880 it'll be about 10 to 15% and not more than that, right? 1162 00:59:43,440 --> 00:59:44,920 - It's 30%. - 30%. 1163 00:59:45,040 --> 00:59:47,360 Take that out, you're left with Rs. 35 crores. 1164 00:59:48,240 --> 00:59:50,760 - Okay? Your share is 30%. - Okay. 1165 00:59:50,840 --> 00:59:54,400 So, Rs. 11.5 crores approximately is your share 1166 00:59:54,680 --> 00:59:56,360 based on your current run rate. 1167 00:59:57,400 --> 00:59:59,120 You gave the rest to the landlords 1168 00:59:59,280 --> 01:00:00,840 or spent it on operating expenses. 1169 01:00:00,920 --> 01:00:03,040 That exactly is part of our expenditure 1170 01:00:03,120 --> 01:00:04,720 - because we... Then it's correct. - I got that. 1171 01:00:04,760 --> 01:00:06,240 In Rs. 11.5 crores, 1172 01:00:06,320 --> 01:00:07,920 - your margin will be very high. - Right. 1173 01:00:08,000 --> 01:00:09,720 Your profit must be Rs. 7 to 8 crores. 1174 01:00:10,840 --> 01:00:12,280 What's your EBITDA year on year? 1175 01:00:12,400 --> 01:00:14,800 Last to last year, our EBITDA was 6%. 1176 01:00:15,480 --> 01:00:17,880 It was 5% last year. 1177 01:00:17,960 --> 01:00:21,400 This year, on average, it is 9.5 to 10% a month. 1178 01:00:21,520 --> 01:00:23,480 This year, out of a revenue of Rs. 50 crores, 1179 01:00:23,600 --> 01:00:26,040 - you'll take Rs. 5 crores home. - Rs. 4.5 crores as per 9%. 1180 01:00:26,120 --> 01:00:28,920 - Fine, around Rs. 4.5 to 5 crores. Is that right? - Right. 1181 01:00:29,000 --> 01:00:30,080 On the basis of that, 1182 01:00:30,160 --> 01:00:32,960 - you asked for a Rs. 133-crore valuation. - Yes. 1183 01:00:33,040 --> 01:00:34,520 What is your year-on-year growth? 1184 01:00:34,880 --> 01:00:37,080 - Not that much. - 70 to 80%. 1185 01:00:38,400 --> 01:00:39,840 What's the bottleneck in the growth? 1186 01:00:40,000 --> 01:00:41,840 There's none. We're in the market now. 1187 01:00:41,920 --> 01:00:43,640 We'll raise this round and grow drastically. 1188 01:00:43,760 --> 01:00:46,880 In the market! Do you mean you're in talks with investors? 1189 01:00:46,960 --> 01:00:48,080 They're HNIs basically. 1190 01:00:48,160 --> 01:00:50,760 We're raising Rs. 8 crores in total. 1191 01:00:57,520 --> 01:00:59,120 Can you tell me more about that? 1192 01:00:59,360 --> 01:01:01,120 Today, we're in Delhi-NCR. 1193 01:01:06,680 --> 01:01:09,200 So, we want to test one city outside Delhi-NCR 1194 01:01:09,360 --> 01:01:10,360 and then look at 1195 01:01:10,400 --> 01:01:13,640 what growth to expect after testing out two cities. 1196 01:01:13,720 --> 01:01:16,800 Do you think coworking as a concept 1197 01:01:17,360 --> 01:01:19,360 is more popular in some cities 1198 01:01:19,440 --> 01:01:21,800 compared to other cities or smaller cities? 1199 01:01:21,880 --> 01:01:23,800 If we talk about Tier 2, it's catching up. 1200 01:01:23,920 --> 01:01:25,400 There's demand as well as supply. 1201 01:01:25,480 --> 01:01:28,760 If I want to go there and set up in 5 or 10 locations, 1202 01:01:28,920 --> 01:01:30,960 I might not be able to scale that far up. 1203 01:01:31,080 --> 01:01:34,120 So, Hyderabad and Pune are Tier 1.5 markets 1204 01:01:34,240 --> 01:01:36,640 where the supply is there with a reasonable demand. 1205 01:01:36,720 --> 01:01:38,520 So, we can be there and create a monopoly. 1206 01:01:38,600 --> 01:01:43,320 If you do cap all the Tier 1.5 markets, 1207 01:01:43,560 --> 01:01:44,920 let's say after 2 years, 1208 01:01:45,000 --> 01:01:46,400 do you think after two years, 1209 01:01:46,480 --> 01:01:48,360 the next level of cities 1210 01:01:48,480 --> 01:01:50,640 will be ready for coworking as a concept? 1211 01:01:50,720 --> 01:01:51,920 They'll definitely be ready 1212 01:01:52,000 --> 01:01:54,880 because 99 out of 100 businesses are over there, 1213 01:01:55,160 --> 01:01:57,560 that a lawyer runs with two of his associates 1214 01:01:57,640 --> 01:01:59,240 or that a marketing agency is running. 1215 01:01:59,320 --> 01:02:02,320 All these micro-businesses exist even today, 1216 01:02:02,440 --> 01:02:05,320 but probably out of an adjusted office. 1217 01:02:05,440 --> 01:02:08,600 So, with time, this market already exists just in a different set-up. 1218 01:02:09,280 --> 01:02:10,760 I like you guys. 1219 01:02:10,880 --> 01:02:12,240 Your chemistry is good too. 1220 01:02:12,320 --> 01:02:13,920 You've been working together for many years. 1221 01:02:13,920 --> 01:02:15,040 Generally, founders... 1222 01:02:15,280 --> 01:02:17,520 Companies fail when founders fall out. 1223 01:02:17,720 --> 01:02:19,160 It doesn't look like you two would. 1224 01:02:19,280 --> 01:02:20,280 Tell me something. 1225 01:02:20,320 --> 01:02:22,200 The segment you're targeting, 1226 01:02:22,720 --> 01:02:24,240 which is micro-businesses, 1227 01:02:24,320 --> 01:02:26,400 the greatest risk there is of attrition. 1228 01:02:31,200 --> 01:02:32,880 - Average lease time period? - Every... 1229 01:02:32,960 --> 01:02:33,880 - 14 months. - 14 months. 1230 01:02:33,960 --> 01:02:34,880 That's short-term. 1231 01:02:34,960 --> 01:02:38,240 Generally, those who own and manage coworking enterprises, 1232 01:02:38,320 --> 01:02:40,120 it's 3 years, 5 years and so on and so forth. 1233 01:02:40,200 --> 01:02:42,240 So, it becomes a little risky from that perspective. 1234 01:02:42,360 --> 01:02:45,160 Second point, you'll be left with Rs. 5 crores this year. 1235 01:02:45,240 --> 01:02:47,400 If you continue to grow at your current pace, 1236 01:02:53,680 --> 01:02:58,080 Can I underwrite it at Rs. 133 crores at present 1237 01:02:58,160 --> 01:02:59,960 with that kind of risk hanging out there? 1238 01:03:00,280 --> 01:03:02,400 Probably not, even though I love you guys. 1239 01:03:02,760 --> 01:03:04,880 So, that's probably the reason I'm out 1240 01:03:05,400 --> 01:03:07,720 but good luck, man. You guys are solid founders. 1241 01:03:07,800 --> 01:03:09,080 - Thank you so much. - Thank you. 1242 01:03:09,400 --> 01:03:10,560 You know, to be very honest, 1243 01:03:10,640 --> 01:03:14,080 when I told you that the supply side was a challenge, 1244 01:03:14,200 --> 01:03:17,440 you said that certain cities were maxed out. 1245 01:03:25,600 --> 01:03:27,840 is something I'm doubtful about. 1246 01:03:28,160 --> 01:03:31,440 So, fabulous founders. Love the thinking. 1247 01:03:31,520 --> 01:03:33,040 Rs. 80-crore order book. 1248 01:03:33,400 --> 01:03:34,840 What more? 10% EBITDA. 1249 01:03:34,960 --> 01:03:39,560 But I'm not able to get the confidence about the Tier 2 and 3 cities 1250 01:03:39,720 --> 01:03:42,160 in terms of readiness of the Indian consumer. 1251 01:03:42,280 --> 01:03:44,240 That's why I'm out today 1252 01:03:44,320 --> 01:03:46,080 but I hope you make it happen. 1253 01:03:46,160 --> 01:03:47,240 - Thank you so much. - Thank you. 1254 01:03:47,280 --> 01:03:48,400 Yogesh! Sarthak! 1255 01:03:52,600 --> 01:03:54,040 Many congratulations. 1256 01:03:54,160 --> 01:03:57,280 The pandemic was full of hardships for both our industries. 1257 01:03:58,680 --> 01:04:00,760 I always say the one who survived the pandemic 1258 01:04:00,840 --> 01:04:03,160 will make good money in the coming 5 to 10 years. 1259 01:04:03,280 --> 01:04:04,920 Whatever you're doing is amazing. 1260 01:04:05,040 --> 01:04:08,480 For me, you know, that this is tough. 1261 01:04:08,720 --> 01:04:10,440 Because we own Innovate. 1262 01:04:10,720 --> 01:04:12,240 But our segment is different. 1263 01:04:12,320 --> 01:04:14,680 We are in the 30-150 segment. 1264 01:04:14,840 --> 01:04:19,360 If you want to, we don't know the zero to thirty segment. 1265 01:04:19,440 --> 01:04:21,360 Nor are we strong in that. 1266 01:04:21,440 --> 01:04:23,600 If you would like to come and join us 1267 01:04:23,680 --> 01:04:26,400 then you should know that I'd be very interested in that. 1268 01:04:26,480 --> 01:04:28,200 But since I'm in a conflict, 1269 01:04:28,320 --> 01:04:30,040 I'll be out for that reason. 1270 01:04:31,040 --> 01:04:32,800 Many best wishes. You've made a perfect business. 1271 01:04:32,840 --> 01:04:34,040 - Thank you, Ritesh. - Thank you. 1272 01:04:34,080 --> 01:04:35,680 I'll give you an offer. 1273 01:04:44,000 --> 01:04:46,120 You will get a financial investor. 1274 01:04:46,200 --> 01:04:49,600 I'm giving you an offer because I've been seeing you for eight years. 1275 01:04:49,960 --> 01:04:52,520 I mean, I have to believe in destiny 1276 01:04:52,600 --> 01:04:54,440 that you've come and stood before me. 1277 01:04:55,680 --> 01:04:59,360 Even now there are around 10 of your offices around my current office. 1278 01:04:59,480 --> 01:05:01,680 So, it will be easy to meet you. 1279 01:05:01,760 --> 01:05:05,280 I think there is only one sense for me to come here, and that is 1280 01:05:05,360 --> 01:05:08,160 because you spoke of institutionalising your business. 1281 01:05:08,240 --> 01:05:10,840 Maybe I can help in taking that forward. 1282 01:05:10,960 --> 01:05:14,720 You've focused on one city now and that's phenomenal. 1283 01:05:15,800 --> 01:05:19,160 But I'm not able to understand this valuation. 1284 01:05:19,280 --> 01:05:22,160 I can understand the 50 crores valuation of your business. 1285 01:05:22,240 --> 01:05:24,320 Because your EBITDA is five crores. I can't 1286 01:05:24,400 --> 01:05:26,480 justify more than 10x of the EBITDA, right now. 1287 01:05:26,800 --> 01:05:30,480 My offer for you is one crore for 2% equity. 1288 01:05:36,200 --> 01:05:39,800 I'm glad you want to make a sustainable and profitable business. 1289 01:05:39,880 --> 01:05:41,680 That is a core. That was very cool. 1290 01:05:41,760 --> 01:05:45,240 Second, the industry is changing and this is a real need. 1291 01:05:46,240 --> 01:05:47,320 I'll tell you the risk, 1292 01:05:48,400 --> 01:05:49,680 what I feel are the risks. 1293 01:05:55,640 --> 01:05:58,360 Second, it can become a Ctrl+C Ctrl+V business. 1294 01:05:58,480 --> 01:06:00,400 Like Ritesh heard it and went quiet. 1295 01:06:00,520 --> 01:06:01,760 He's never gone so quiet after hearing a pitch. 1296 01:06:01,800 --> 01:06:04,040 He sat quietly and heard what you're planning to do. 1297 01:06:04,120 --> 01:06:06,560 Because I'm in this business, I wanted to hear them 1298 01:06:06,640 --> 01:06:07,400 and I let them speak. 1299 01:06:07,480 --> 01:06:09,040 Okay... He heard everything. 1300 01:06:09,160 --> 01:06:12,360 Now you see how he'll enter this business. 1301 01:06:13,520 --> 01:06:16,560 I feel the valuation is a concern. 1302 01:06:17,280 --> 01:06:19,080 I really don't know why you need a Shark. 1303 01:06:19,160 --> 01:06:20,760 I personally feel you can build it further. 1304 01:06:20,840 --> 01:06:22,280 You're very smart entrepreneurs. 1305 01:06:23,880 --> 01:06:25,240 Unfortunately, I'll be out. 1306 01:06:26,120 --> 01:06:28,880 - Thank you so much. - Okay, Sarthak and Yogesh, think about it. 1307 01:06:30,080 --> 01:06:31,960 - Two minutes. - We'll take a couple of minutes. 1308 01:06:38,080 --> 01:06:42,440 - Peyush, isn't it unfair to the current investors? - No. 1309 01:06:42,560 --> 01:06:45,000 You brought 133 crores valuation down to 50 crores. 1310 01:06:45,120 --> 01:06:47,880 On Shark Tank, we've brought down the valuation of so many businesses. 1311 01:06:47,920 --> 01:06:50,440 We bring it down marginally than the prior valuation. 1312 01:06:50,520 --> 01:06:52,400 - You brought it down by 50%. - But depends on how you value 1313 01:06:52,440 --> 01:06:53,400 your time, right? 1314 01:06:53,480 --> 01:06:55,520 This is Shark Tank. There is no fairness. 1315 01:06:55,600 --> 01:06:56,960 - This is capitalism. - But then... 1316 01:06:57,040 --> 01:06:59,720 - I don't know. - It's a Shark... - I'm saying, you have to understand 1317 01:06:59,760 --> 01:07:02,400 - the time that is required. - Namita, you also give an offer like this. 1318 01:07:02,400 --> 01:07:04,520 I don't reduce it so much. 1319 01:07:04,600 --> 01:07:06,480 From 133 to 50. 1320 01:07:06,560 --> 01:07:09,040 The investor determines the valuation, not some other investor. 1321 01:07:15,080 --> 01:07:16,840 Thanks a lot, Peyush for your offer. 1322 01:07:17,000 --> 01:07:18,440 We have a counteroffer. 1323 01:07:18,560 --> 01:07:20,240 One crore for one per cent 1324 01:07:23,160 --> 01:07:24,960 so that everyone comes on the same valuation and you can 1325 01:07:25,000 --> 01:07:26,280 - cover up with advisory equity. - That's how the structure will be. 1326 01:07:26,280 --> 01:07:29,040 That will be the structure. But one per cent is not adding up. 1327 01:07:29,200 --> 01:07:30,640 There's a very large gap. 1328 01:07:30,800 --> 01:07:33,000 Okay, I can close at one crore at 1.5%. 1329 01:07:38,720 --> 01:07:40,640 Uh... Can we close at 1.25%? 1330 01:07:40,720 --> 01:07:42,320 No, come on... 1331 01:07:42,520 --> 01:07:46,680 - I'm not saying... - I understand. But this is what it is. Decide. 1332 01:07:50,760 --> 01:07:53,560 - Sorry, Peyush. We won't be able to accept this deal. - Okay. 1333 01:07:53,640 --> 01:07:54,720 - Thank you for the offer. - Thank you. 1334 01:07:54,720 --> 01:07:57,040 - I like it. Good decision. - Thanks a lot for coming in. 1335 01:07:57,240 --> 01:07:59,600 And there is no disrespect for you, this is basically... 1336 01:07:59,680 --> 01:08:02,520 No, no... I want you guys to grow so much. 1337 01:08:02,680 --> 01:08:04,840 I want to keep seeing AltF boards everywhere. 1338 01:08:14,280 --> 01:08:16,480 Sarthak and Yogesh, welcome to PokerBaazi zone. 1339 01:08:16,560 --> 01:08:17,280 - Thank you. - Thank you. 1340 01:08:19,240 --> 01:08:21,680 There is a sequence based on the strength of the poker hands. 1341 01:08:21,760 --> 01:08:23,640 Here is the sequence before you. 1342 01:08:24,200 --> 01:08:25,760 These are called Hand Rankings. 1343 01:08:25,840 --> 01:08:27,560 The top hand is Royal Flush. 1344 01:08:27,680 --> 01:08:30,120 And the lowest winning hand is High Card. 1345 01:08:30,200 --> 01:08:32,800 We've chosen five hands in focus for today. 1346 01:08:59,000 --> 01:09:01,000 - The second one is Tech and Product. - Okay. 1347 01:09:01,360 --> 01:09:03,080 Interesting to have Tech and Product for Straight Flush. 1348 01:09:03,120 --> 01:09:05,800 The third one would be Customer Service. 1349 01:09:07,520 --> 01:09:10,720 The fourth one would be Business Ethics. 1350 01:09:12,720 --> 01:09:14,360 I think the last one would be Marketing. 1351 01:09:15,000 --> 01:09:19,160 Oh, Marketing. It's on the fifth number. Very interesting. 1352 01:09:19,320 --> 01:09:22,680 I found it very interesting that you kept Team Culture first. 1353 01:09:22,760 --> 01:09:25,400 This is the first time I've seen it. Why? 1354 01:09:48,520 --> 01:09:52,040 If you also want to download PokerBaazi app and make your strategy, 1355 01:09:52,160 --> 01:09:55,520 then go ahead and make the winning hand. Download PokerBaazi app now. 1356 01:09:59,880 --> 01:10:01,280 Welcome to 'Ask The Shark.' 1357 01:10:06,760 --> 01:10:09,640 and stuns everyone with his Hindi. 1358 01:10:12,880 --> 01:10:14,240 Aashish, thank you very much. 1359 01:10:14,320 --> 01:10:17,160 Our question for today is from Lalpur, Rajasthan. 1360 01:10:17,240 --> 01:10:18,920 By 24-year-old Mayank Sanganeria. 1361 01:10:31,280 --> 01:10:33,800 First of all, you're from Rajasthan. 1362 01:10:33,880 --> 01:10:35,880 My mother is also from Jhunjhunu 1363 01:10:35,920 --> 01:10:38,880 - which is in Shekhawati. - Okay. 1364 01:10:39,000 --> 01:10:43,960 Whenever I've had a chance to visit Jhunjhunu or Churu, 1365 01:10:44,040 --> 01:10:47,720 I've seen the children here already have a sense of entrepreneurship. 1366 01:10:47,840 --> 01:10:50,320 - Everyone is thinking of starting a new business. - Hmm. 1367 01:10:50,400 --> 01:10:53,680 In today's day and age, I have three suggestions for you. 1368 01:10:53,840 --> 01:10:56,840 The first is, I have its OG with me, Aashish. 1369 01:10:56,920 --> 01:11:00,400 There is a lot of money in content creation. 1370 01:11:00,680 --> 01:11:02,320 You get a chance to learn too. 1371 01:11:02,440 --> 01:11:05,000 - And this is a genuine value proposition. - Yes. 1372 01:11:05,080 --> 01:11:07,120 Let me tell you, 1373 01:11:07,200 --> 01:11:11,280 I often feel that if I could have some regional content 1374 01:11:11,520 --> 01:11:12,960 then it would be interesting to watch it. 1375 01:11:12,960 --> 01:11:15,560 - You know people are interested in regional content. - Very much. 1376 01:11:15,680 --> 01:11:17,160 - You could try that. - Absolutely. 1377 01:11:52,520 --> 01:11:54,320 Wow. One idea was his and one was mine. Right? 1378 01:11:54,440 --> 01:11:56,320 - Two ideas were our own. - Yes, two ideas were about what we do. 1379 01:11:56,320 --> 01:11:57,440 - Wonderful. - And one in-between. 1380 01:11:57,440 --> 01:12:00,040 You've given very detailed and very good advice. 1381 01:12:00,120 --> 01:12:01,200 We really appreciate it. 1382 01:12:01,320 --> 01:12:03,160 We'll meet on the next, 'Ask The Shark' 1383 01:12:03,320 --> 01:12:05,080 with a new guest and a new question.