[theme music playing]
'When I was growing up one thing was quite fascinating'
'and that is my father's hard work,'
'I saw how my family's lifestyle'
'was improving.'
'The harder you work, the more success you achieve.'
[music playing]
'In 2013, I started Veeba.'
'What drives me is a company India can be proud of.'
'I want to make'
'the best sauces and seasoning'
'in the world.'
'I am a very proud Indian.'
'I have one rule when it comes to food.'
'It's a simple rule. I have two children.'
'Veeba will not manufacture anything'
'which I cannot give to Rajveer and Ranveer.'
'I make products like ketchup, mayonnaise,'
'chocolate sauces, that children consume.'
'Today, I am very proud of the fact'
'that we are present in more than 750 towns.'
'More than a few hundred thousand points of sale.'
'Five years ago, Shark Tank didn't exist.'
'Thanks to Shark Tank'
'and social media,'
'a new generation of entrepreneurs is emerging'
'in a country already known for its entrepreneurial spirit.'
- Veeba! - What will you eat today? [all]
'I am so excited to see the next generation of entrepreneurs'
'the products they create,'
'how they sell them, and how they manage distribution.
'The founders who will be on the tank,'
'are the future of India.'
'They also have a lot of responsibility on them.'
'And at the same time, I take this responsibility very seriously,'
'that we also back the right kind of founder.'
'In this seat, my time, value, and money'
'should go towards helping the right source.'
'In a way, the more we help the newer founder,'
'the more we help to make this country'
'more entrepreneurial, growth to the GDP'
'and how do we make this great country greater?'
[music playing]
Burger Bae! I knew that there would be more food pitches.
But this is not food.
It isn't food? There's 'burger' on it.
[music playing]
Oh, wow!
[music playing]
Oh!
Thank you!
[music playing]
- Come on! Instead of burgers, you gave us clothes. - Nice.
- Tasty clothes! - That too with ketchup.
- Not bad. - Nice touch.
Sharks, runway to racks is old school.
In the olden times, fashion studios
and fashion magazines used to tell us
what was trending and what we should wear.
In today's time, our runway is our Instagram feed.
Where through likes, comments
and shares we decide what's trending.
Social media has democratised fashion.
And influencers are our representatives.
They just know what's cool.
Influencers are driving brand promotions
and creating virality,
with Burger Bae at the core of this movement.
Burger Bae is an Instagram community driven, D2C clothing brand.
so that you look like a snack.
Our loyal customer and influencer community
gives us insights into the latest pop-culture.
By using their feedback and the content they shot,
we create your favourite outfits.
Just like your favourite burgers, our outfits are also
hot, spicy, juicy, saucy,
and most importantly, comfortable.
We create outfits that you want to wear.
Until now, we have served looks to more than 2.5 lakhs.
And we've created a strong Instagram community of 2.7 lakhs.
India's biggest gold
is its manufacturing capacity.
We aim to leverage this capacity
to build a major lifestyle brand.
- Today, our ask is Rs. 1 crore for 2.5%. - Phew!
Sharks, these are our influencer friends.
They are the reason we exist.
- Oh wow! Are you models and influencers? - Influencers.
Okay, thanks, guys.
- Bye, guys! - Thank you, guys.
Okay! Janvi, Rohan, Ojasvee,
- welcome to Shark Tank Season 4. - Thank you!
- Some of the Sharks were thinking this was a food company. - I know.
I was one of them.
- I was also one of them. - I was drooling.
But that is our tagline. Tasty Clothing.
Yeah! I like it.
We make you look tasty, that's the scene.
Okay, tell us about you. How did you start Burger Bae?
I've always admired Narayana Murthy's approach to building a business.
He just didn't build Infosys, he put Bengaluru on the map.
He's known as the father of the IT sector.
So, I have a delusional aspirational goal.
I want to be Ludhiana's Narayan Murthy.
I want to be the Narayan Murthy of fashion.
So sweet.
So sweet. You will have to work 70 hours.
Even more! 100 hours.
- Or more. - Or more.
Ludhiana is famous for two things.
Bicycle manufacturing and clothing.
I have a close friend
who was in my class. I went to his export unit.
He makes T-shirts for a renowned brand
and it retails for Rs. 5,500. It's an international brand.
He gets paid Rs. 56 to stitch a T-shirt.
I was blown away! That Ludhiana gets 1% of the entire supply chain.
Ludhiana makes the best fleece in the world.
Why are we only making them for foreign brands?
Why can't we have a brand of our own?
I thought of helping export units to make a D2C brand.
I started a social media agency
back in the days when the idea was not too cliché.
This was in 2017-2018.
I started, but I wasn't making money,
so I thought of showing them how it's done.
I am someone who loves burgers.
So, I came up with the name Burger Bae and started.
Things went so viral that we couldn't start the agency.
Was the name of the agency Burger Bae?
- No! The agency's name was BXB SOCIALS.
We started a pilot business called Burger Bae to showcase how it's done.
- Got it! - The colour you are wearing is the hottest colour...
- Yes! - Yeah! So, that's the thing about Ludhiana.
I love the colour.
- Are you wearing this by chance? - No!
That's the conscious effort, that's the supply chain we have.
It's so fast that in four days,
we made this Pantone and made the entire team wear it
- and we also wore it. - Very nice.
It shows that you are ahead of the curve.
- You follow the trends. - Yes.
What are your stories?
We both are siblings.
I studied fashion design at NIFT.
- And I was working with one of... - Which campus?
- NIFT, Kolkata. - Okay.
Her name is Anamika Khanna.
- Of course. - Lovely stuff.
After that, COVID hit us.
Unfortunately, my parents contracted COVID
and it got extremely serious.
So, I took a sabbatical and came home.
Our mom would always tell Rohan,
'Rohan, you can't look after your wardrobe,'
'how will you handle the business?'
You won't believe it, I went to his factory, and I thought
it was messier than his wardrobe.
That's how I decided
- to fix it. I need to! - Fix it!
Which year did you join?
I joined in 2021.
When did you start?
November 2019.
What about you, Janvi?
I am an influencer.
I was their customer. I saw this very cool brand on Instagram.
My first experience was amazing.
He messed up with the second order.
- What did he do? - I didn't get the order.
- You didn't get it? - I didn't.
- Did he take the money? - It was prepaid,
- they didn't start cash on delivery. - Okay.
I couldn't reach them for two months.
Finally, after two months, I caught hold of an intern.
And I really blasted on her. I was like, 'What is this?'
'I relied on you.'
She started crying.
Half an hour later, he called me.
And he was like, 'Hi, I am the founder. I am really sorry.'
'For the rest of your life, whenever you shop from Burger Bae,'
- 'I will give you unreleased merch.' - Oh, nice.
I was happy. This is very customer-centric
and sweet. That's how we became friends.
One conversation led to the other.
We are a customer-centric and customer-loving organisation.
- Our friendship became... - Turned into love.
- Love for customers. - Very good.
- So, it's been... - Look at him!
[laughing]
Why are you blushing so much?
Is this new?
It's been two years since we've been dating.
I joined Burger Bae a year ago as the co-founder.
Is that the three of you in the logo?
- Yes! - That's right.
Your logo and your style is cool.
The quality is really good.
Yes, sir. Ludhiana's fleece is the best in the whole world.
With the help of our tech, from 500 GSM,
We also do a lot of R&D because it's flat.
Everyone wants to do fintech and healthtech.
Smart people are not getting into clothing.
- It's good! - He is smelling the socks.
That's the R&D we do.
Smell it.
- Oh my God! It smells of coffee. - Yes!
Smell it.
- That is a fantastic innovation. - It's beautiful! It's really nice.
A customer delight! When you open it, there's a lovely aroma.
It's a strawberry shake.
- And it smells of strawberry for 20 washes. - Wow!
How much do they cost?
- We haven't released them yet. - It is unreleased.
How much will it cost?
Around Rs. 1,200 for a T-shirt.
Rohan, this hoodie is for Rs. 4,000, right?
Our hoodies start from Rs. 1,500.
The one you have, which is 770 GSM, is for Rs. 3,000.
I am very fascinated by the story of GoColors.
- Yeah! - It's a Rs. 800 crores company.
30% EBITDA. It also went public.
- It's a great story. - Yeah!
They have a clear idea about distribution.
They started with kiosks in airports.
They were very clear about
where they wanted offline distribution and why.
Have you thought about that?
We have consciously stayed away from the marketplace.
Because we think quick commerce is the future.
It's going to be a massive industry going ahead.
- You know, up to a certain point, quick commerce is good. - Yes!
- But when you bring in an investor, we want scale. - Yes.
You need to think of your distribution model,
especially offline.
You should think about kiosks
and then move on to EBO.
- And rent revenue ratio. GoColors is 15%. Brilliant! - Yes.
EBO! EBO means Exclusive Brand Outlets.
These stores sell products of a specific brand.
Through EBOs, brands offer their unique experience
and exclusive range.
And the customers get a chance to engage directly with brands.
How are you selling now?
- 100% on our website through Instagram. - Online!
- You don't sell on marketplaces? - No.
Which are a few top-selling products?
80% is this.
20% is the sensual stuff
that influencers make and design. They were wearing them.
Suppose Hailey Bieber
or Kim Kardashian is wearing something.
They will send us a picture
asking us if we can make this design.
We try to replicate it as closely as possible.
What do they get in return?
- Ah... - Money!
The vibe! The whole ecosystem.
- No money? - No money?
No! We don't pay them.
They feel proud when we launch what they suggested.
...influencers for design,
- but also for community building and marketing. - Yes.
In fashion, distribution, supply chain,
styles and designs,
First of all, it's the whole
of Ludhiana's entire structure which we have access to.
We invest in grey fabrics.
It usually takes 15 days to dye a fabric.
We have ideal capacities operationally locked.
As we said, this Pantone shade was announced 3-4 days ago.
We quickly convert grey fabric into Pantone shades.
Parallelly, if an influencer's content is going viral on a Friday,
we can project through the ERP system
to quickly inform it that this stock needs to be expedited,
so the Pantone can be dyed quickly.
It gets dyed and sent to our factories. We own factories.
We try to make it within
24 to 48 hours. It sometimes takes around a week.
And we are able to monetise viral content.
- Take NEWME as an example, which was launched in India. - Yes.
- Or a Chinese company. What is it called? - SHEIN.
- Right! Let's take SHEIN for example. - Savana.
- They started the trend. - Yes.
Zara has built
a rapid supply chain.
- But SHEIN was faster than them. - Yeah!
This is a learning for you.
You don't have a lock-in in Ludhiana.
- Somebody else can go to Ludhiana and step in. - Absolutely.
Is there something that differentiates you?
We fall in the middle of quality,
affordability, sustainability,
community and style.
- Wow! - You will notice that brands like SHEIN...
I used to shop a lot from SHEIN like others.
They are selling products at a very cheap price.
And the quality isn't an emphasis.
With us, because the quality is good,
the prices are affordable.
Tell me something, who is the customer?
To build a large company with millions in sales,
you need a structural advantage.
- That's absolutely right. - Our current brand persona
is this girl in your office or college who's sort of a red flag.
- Someone who is toxic. - Red flag.
But you still can't stop thinking about her.
Wow! That is your brand persona.
I could've never imagined this answer to his question.
What an answer!
Instagram is a big asset for us.
If you are the hottest girl in your college, you have to be on our feed.
If you are 'The Guy' in your college, then you are featured on the feed.
- Really? - This is our comparative advantage.
What are you saying?
Most of the feed features our customers.
We pick him or her.
So, she's just a customer.
If you check her profile,
she made efforts and gave us this picture.
If we see the previous one too...
- This is my friend from ISB. - Yeah.
- What do you mean? - I am doing a course at ISB.
They have a new course called IVI.
- Which ISB are you... - Hyderabad.
Where do you live now? After ISB...
In the campus because it's a 6 month course.
- It's a residential on campus... - Right!
- But you joined them, right? - Yes!
- Were you in Ludhiana back then? - Yes! Ludhiana and Gurugram.
Where is the office? Ludhiana or Gurugram?
Our factory operations are completely in Ludhiana.
We have clusters in Chandigarh, Delhi and Gurugram
where we assist influencers with content creation.
I live in Ludhiana and Kolkata.
I got married in Kolkata.
Could you share the last three years of revenue?
Can I start from 2020?
- Okay, no problem. - Yes.
In 2020, we closed at 15 lakhs.
FY21 at Rs. 56 lakhs.
FY22 at Rs. 1.6 crores.
Nice!
FY23 at 4.6 crores.
Not bad.
- And FY24 at Rs. 11.8 crores. - Yes.
What is the revenue for this year so far? Year-to-date.
Around Rs. 10 crores.
At what revenue will you close this year?
We will cross Rs. 15 crores. We will touch Rs. 15 crores.
- How much did you make last month? - Rs. 92 lakhs
- Ever since your revenue of Rs. 1.6 crores... - Yeah!
What does the bottom line look like?
Our approach is...
When we forecast,
we lock PAT at 5...
- 5%? - 5%.
- So, you made Rs. 8 lakhs in FY22. - Roughly!
How much was our profit in FY23?
Around 23 lakhs.
- Okay! And in FY24? - Rs. 60 lakhs.
How much is it this year?
- I think this year our profit is less. - How less?
It should be around 3%.
So, the profit is Rs. 30 lakhs.
- Yes! - Why is the profitability low?
- Why has it... - Did you increase marketing spend
- in the last... - No! We almost went bankrupt.
Oh!
And the reason... Yes!
What happened in the business?
When I wanted to start in 2019,
out of excitement, I signed a bad deal.
I gave 33% of my company to a strategic partner.
Their responsibility was
taking care of manufacturing and investing in the working capital.
Their factory wasn't used. It worked for them, but not for us.
Gradually, we found out there was a mismatch and we stopped working.
My 33% equity was dead. There was no contribution.
At that time, I had invested Rs. 52,000 as capital.
My mentors said if I show this to anyone,
we've become an uninvestable business.
- Everyone knows that there will be legal problems in the future. - 100%
We slowed down
and experienced flat growth, but with excess capital,
we did our best to pay them off
and acquired the stake.
- Now we own 100%. - Oh wow!
- Well done. - Very good.
- How much did you pay them? - Roughly, Rs. 3 crores.
Who gave you that?
RBF! Revenue-based financing.
- RBF is a debt firm. - Yes.
- Okay! You took debt from a company against sales. - Yes.
You took that debt or working capital and bought the shares.
- No. - That is what I am asking. Where did the money come from?
That was invested into the business.
Yes! We focused on flowing the sales gradually,
setting targets for the amount of money we needed to make.
But you didn't make Rs. 3 crores to pay him.
Yes, exactly!
We withdrew around Rs. 30-40 lakhs from the business.
And the rest we gave from our pocket.
Hey!
Where did you get that cash from?
When no one is with you, your mom... So, mom.
So, your investment is Rs. 56,000 and what your mom gave.
Because you bought that share.
- We did buy out. - She put it in the company.
How much did you take from your family to buyout?
Ah... Roughly...
The answer has to be simple.
Yes! Roughly Rs. 2 crores.
- You focus on design. - Janvi, you take over the business.
Because he...
Roughly Rs. 2 crores.
I know you are working bottom-up.
You were doing that because you owed money.
- So that you can make the payment. - From the start...
Anyway, whatever the reason is. Keep that aside.
- Okay! - Hurry up and tell us about the unit economics.
- Yes. - Especially logistics.
I will start from the ground up.
- Because that's how we look at things. - Okay.
5% PAT, 15% EBITDA.
15% EBITDA? What is... There is RBF.
- Yes, RBF's interest payment. - Got it.
- Yeah! - 5% is fixed expenses.
It covers salaries, rentals and everything else.
- 15% is marketing. - Okay.
Yeah! And 55%-60%...
It was our conscious decision
to push it in COGS.
Cost of Goods Sold and somewhat R&D we do.
- How much is logistics? - 7%.
How much inventory do we have?
We have a working capital of Rs. 3 crores.
- Roughly... - Rs. 3 crores at COGS
- or selling price? - At COGS.
Rs. 50-Rs. 70 lakhs is only finished products.
we have around one month of inventory and goes up to 45 days.
What about unfinished products?
In kilograms, roughly around a couple of months.
How much cash is there? How are you covering your expenses?
We are covering our expenses by rotating inventory.
That is how...
How much is the bank balance? That's what he's asking.
We keep around Rs 7 lakhs in the bank.
This means you don't have money.
I have a feeling that the business is in a tight spot.
- Yes! - Hmm!
Am I right, Janvi?
Yes, we have gone through something.
Going through it also.
- No, it's done. The worst is behind us. - No, it's done.
But it's just fading out.
If we talk about December, that's 10 days, we are backtracked.
We will cross Rs. 1.5 crores.
And by January, we will be at Rs 2 crores.
- Do you pay yourselves a salary? - Yes.
How much is the salary?
I take Rs. 50,000 per month.
- Both of us Rs. 28,000. - Okay, got it.
I don't think I've ever seen a salesperson better than you.
Especially the customer satisfaction aspect, that was incredible.
According to me, you are a bit early for fundraising.
I am out of the investment. But I sell sauces.
You sell burgers and we can join.
We can collaborate between Burger Bae and Veeba.
- You will get a higher sales volume. - Yay!
- Sure! - I am out as well.
There is a lot of talent.
What is lacking is clarity and depth of thinking.
For me, there was a gap in the financials.
I know that the two of you are more on the creative side.
But Janvi, on the financial aspect, the answers should be razor-sharp.
It is early for me.
But I have no doubt that you will crack it. So, I wish you the best.
Your marketing is oriented around brand and lifestyle,
not product. But if you create a lifestyle brand,
you can expand it into several different areas.
So, I will make you an offer.
[music playing]
I will give you Rs. 1 crore for 10%.
[music playing]
Thank you!
- I think you are stretched too thin in the business. - Yeah.
You are doing a lot of things at once.
It's possible that our internal capability is not enough
to manage everything.
Secondly, this is the business of supply chain and business.
Perhaps you lack the rigour
when it comes to business operations and numbers.
I think there is something here.
I will give the same offer as Anupam.
[music playing]
I felt that you guys were too early.
As he mentioned, you are too early.
You don't know much about distribution.
That's what Namita said. And there is no focus.
Kunal stated you don't have rigour.
I disagree with them.
[laughing]
Your products are impactful.
Your style and vibe pack a punch.
When I see these designs and how cool they are...
In fact, I recently went to Abu Dhabi.
- Have you heard of A BATHING APE? - Hmm!
- A BATHING APE. The design seems similar. - Yes, sir.
- It is, right? - Hmm!
In the last one year,
- that has suddenly gone up! Crazy! - Crazy!
- It's taken off. - It has.
It is quite similar.
Let's make it!
I think no one understands Gen Z here.
Or Gen Alpha better than me.
I'll give you an offer.
I have the same offer.
What is happening? What will you do?
I respect what you all get on the table.
We'll have to counter this at 5% for Rs. 1 crore.
Aman, you understand Gen Z.
Self-declared.
No one knows marketing and scale better than you.
And you are the God of the online marketplace.
Rohan, Rs. 1 crore for 5% won't work.
That's 1.66% each.
If you confirm
that you will make Rs. 6 crores in JFM,
Or it will be a mess.
Would all three of you...
I believe if all three join,
it will be 6.67% each.
And you will get more money.
Are you in the mood to do a 20% dilution? What is your view?
We need all three of you.
- Three of us? - Yes.
- Then that is the deal. - What?
Rs. 2 crores for 20%.
Your final and only offer is
Rs. 2 crores for 20% with the three of us together.
She accepted the deal.
- She is... - No, wait!
- Take 30 seconds. Think about it. - Yes.
- This is a big decision. - I don't want you to regret it.
They just came out of 33%.
I don't make a deal to take advantage of you.
Think over it.
[music playing]
She already...
- Janvi has done it 10 times. - She is dancing.
She will hit you. Tell us what you will do.
A... Let's close the deal.
...lose the chance of having the three of them on board.
Janvi already agreed, so...
I really thought you were also going to do this.
- So, I did that. - I was just standing like this.
- Yeah! - It's fine.
She's right! She's always right.
Team Burger Bae, congratulations!
- Thank you! - Thank you!
Welcome to the PokerBaazi Zone, where you hold the cards.
We are also content and community play.
A lot of brands want to collaborate with us
for community play.
Big music festivals started collaborating with us.
I think that was one of the moments.
We started a clothing business, we didn't know
that this could be a source of revenue.
The community helped us grow,
and this could be a way to give back to them.
Fantastic! And I think having two ladies helps
because your cards is a straight.
If you excel at skills and strategy,
go on PokerBaazi and make your winning hand.
Download the app now.
'Shark Tank India, co-presented by ACKO Insurance,
'PokerBaazi and Swiggy Instamart.'
'Co-powered by Adani and Jaquar Bath and Light.'
'And partners, Rayzon Solar, ICICI Direct, '
'Lenskart and Sofy.'
Oh, boba tea! I like boba tea.
I might invest in this.
- Let's do a deal together. - Done.
If you like this, let's do it together.
I will make a deal with you.
[theme music playing]
[theme music concludes]
Sharks, we Indians are really very welcoming.
We embrace every cuisine in the world
be it Chinese or Italian.
The current trend is Korean.
Our Gen Z and millennial population are huge fans of K-pop.
And get this. Korean is the fastest learning language in our country.
Korean ramyun is a hit too.
Why not make it world-famous in India?
And here to disrupt the beverage industry is Boba Bhai!
[laughter]
- That's so sweet. - And so weird.
Greetings, Sharks.
I'm the founder of Boba Bhai.
Boba Bhai is a QSR chain
that sells bubble teas, Korean burgers and K-pop ice creams.
So, we've Indianised the classic flavours of bubble tea
and launched some desi flavours
So that every heart goes 'daebak'!
Sharks, we started in October 2023
and we have over 40 outlets.
We fulfil over 70,000 orders every month.
Our vision is
to make Boba Bhai India's fastest-growing K-pop QSR brand.
And so, I have come here
with an ask of Rs. 50 lakhs for 0.3% equity.
- Whoa! - [laughs]
India's fastest-growing K-pop QSR brand.
So, Sharks,
because the K in K-pop means kudos!
Wow! Wonderful.
So, hi, Dhruv.
- How are you? - I'm good.
- You quoted a valuation of Rs. 167 crores. - Yes.
Sorry, I was so shocked to hear the valuation...
I couldn't do the calculation. Thank you for calculating.
Guys, I'm already an investor in Boba Bhai.
I won't be able to participate in this pitch.
At what valuation did you invest?
Ask Dhruv all your questions.
- What's good about them? - Should we invest?
First, eat and make merry.
The food is sponsored by you!
[laughter]
This is the Korean Chicken Burger.
- Thanks. - With some Taro Lava Bubble Tea
and Mango Chilli.
Thanks, bro. Thank you very much. Thank you.
Namita, this is for you.
- Ooh, vegetarian. - This is vegetarian.
Anupam, this is for you.
- There's no milk in it. - Thank you, brother.
This is great.
Good?
You couldn't have it there. So, we called for it here.
Of course, I wouldn't have moved!
[laughs]
My daughter, by the way, loves boba.
- My daughter too. - I'm sure.
- Yes. - Boba tea is a craze.
Just by looking at it, I can say it's fiery!
Dhruv, is your straw eco-friendly?
- Yes, it's paper-based. - Good.
What flavours are these?
Taro Lava and Mango Chilli.
Mango Chilli, wow!
Boba Bhai has low-calorie and no sugar variants as well.
- What are these round things called? - Tapioca.
This is very chewy.
When I generally have it in London, UK,
it's very soft.
- The bubbles are coming out of the straw easily. - Yes.
It dissolves quickly. It's not like one of those hard bubbles.
If you look at the other drinks, they contain chewy tapioca pearls.
This has popping ones.
- What flavour is this? - Blueberry Rose Mint.
- Amazing. - Thank you.
This is delicious.
Your burger isn't great. Sorry.
- Is this Korean burger? - Yes.
- Korean Chicken. - Yes.
No, it's a chicken burger made in Korean sauce.
Korean chicken is also breaded in different ways.
Oh...
This is hot!
This is spicy.
But you know, Anupam?
- Suddenly, the Korean flavours and the high spice... - Yes.
Is really becoming mainstream.
Do you have SKUs in Korean flavours?
- We recently launched Korean noodles. - Okay.
We launched five noodles.
It had Manchurian and all also.
- Korean, number one selling noodle. - You launched it too.
Who buys this the most? Does Gen Z?
It is the age group of 14 to let's say 25
and they're growing with this. So, it's going to stay.
We see two trends right now.
Wellness is becoming a big trend and so is spice.
They go hand in hand.
If you eat spice all day, you're going to need wellness!
[laughter]
We've got some ice creams to counter the spice.
Get it.
This is Taro Ice Cream.
- Popcorn Ice Cream. - I saw stars after having your burger.
- I really did. - Thank you so much.
Filter Coffee! Wow.
Something different.
It's good. The ice cream's cool.
- Thank you. - How is this different from normal ice cream?
You don't get Taro ice cream in India.
- Taro flavour is Korean. - What's taro?
Sweet yam.
- What's sweet yam? - Heard of 'arbi'?
- Yes. - Sweet yam is made from 'arbi'.
The texture is nice.
The brand name has 'bhai' in it like 'Sallu bhai'.
Your mascot is wearing a gold chain like Bappi Da.
How did the design sensibilities and name come to you?
- We're trying to build a brand for Gen Z and millennials. - Yes.
Boba is a word for bubble tea.
Since we were making an Indian brand
- and the Gen Z and millennials address each other as 'bhai'... - Yes.
Hence, Boba Bhai!
Correct, it's a nice name.
And I like that at the very top,
you've given the customer service number.
- 'Unhappy with us' and then this face. - Yes.
This is a nice touch on your packaging.
Thank you.
Welcome to Shark Tank India Season 4.
Thank you for serving us.
I think everyone enjoyed it.
Some items were spicy.
While some liked the texture, others liked the name Boba Bhai.
Very interesting. Your brand is quite unique.
This culture has taken over in India with Korean-pop and so on.
How did you get into this?
Give us a little history with your background.
- I was born in Jalandhar, Punjab. - Okay.
When I was eight,
I moved to Australia with my parents for better education.
I attended high school and university there.
I started my first business at the age of 18.
I was extremely fond of cricket.
Cricket, to me, was life.
So, my first start-up revolved around cricket.
We'd import sports goods from India
- and sell them online in Australia. - Oh, wow.
- We made 150 thousand dollars in profit. - Well done.
This was about 12 years ago.
After that, I went to University
and studied Bachelor of Business, Finance and Marketing.
At University,
I got 100 thousand dollars in scholarships.
I finished my studies at the University.
In 2019, I decided to start my own start-up.
I worked with my other co-founder
who also happens to be my childhood friend.
We wanted to sell snacks in Uber cars.
Ah! I know this company.
Yes. So, we came to India and signed contracts with Uber.
- The pandemic hit us in 2020. - Okay.
Uber cars went out of business.
So, we converted it into a platform.
We got in touch with brands.
"Food delivery is booming. Why don't we send you products?"
Suppose Veeba launched a new sauce.
If a burger was being delivered, you could send that sauce along.
Similarly, we onboarded Coca-Cola, Mondelez
and 500-odd multinational brands.
We had a revenue of 3 odd million dollars.
Good business in the pandemic.
As soon as the pandemic came to an end,
brands started going outside for sampling.
Using the same restaurant network through which we delivered food,
we started virtual brands with 500 cloud kitchens.
Were you the founder and CEO?
I was the co-founder
but I was looking after the growth and marketing.
I exited that start-up by selling some secondary shares.
- How much money did you make? - Rs. 20 crores.
- Oh, my! Well done. - Nice. Well done.
Why did you come to India?
First of all, my fiancée was based in India.
Okay. [laughs]
He's smiling at the mention of his fiancée. Wow!
She's my wife now.
I had Rs. 20 crores
and I'd always heard
- that India was a great market to build something. - Come on!
You came to India because your wife told you to.
[all laugh]
I had heard that Bengaluru was the Silicon Valley of India.
So, I came to Bengaluru
and started exploring a few things about what to do next.
- I was in the UK working for a year. - Okay.
Korean is a big thing there.
There were many boba tea shops outside my apartment.
We don't drink tea and coffee. Boba tea was our go-to thing.
When I came to India, I saw that boba tea was available
- but people were selling Taiwanese boba tea. - Right.
I thought, why not Indianise boba tea and sell it here?
But in India...
This is a fairly new concept, right?
How do you tell people about it?
Events are our biggest strategy.
We've done a lot of big events in India
like the Ed Sheeran concert, Lollapalooza and Comic Con.
- My audience attends those. - Hmm.
Instagram is my go-to audience.
Currently, we hold the highest market share.
Boba tea in itself
is a big agenda to explain to people and do events.
You could've focused on just that.
Once it reached a certain size, then you could've added snacks.
Why did you want to sell snacks with it instantly?
So, in India, we have tea and drinks with accompaniments.
That was the concept.
Those who launched before us ran bubble tea cafes.
We took learnings from them.
Unless it is paired with food...
- Yours is a QSR model. - Exactly.
- That's the reason. - Exactly.
All right.
How many SKUs do you have?
- We have 20 SKUs in bubble tea. - Okay.
And 15 burgers in total.
- We launched ice creams just two weeks ago. - Okay.
They come in seven flavours.
What's the size of your outlets roughly?
Our outlets are very small.
150 to 200 square feet maximum.
- I connected them with DLF. - Yes.
- It's a big deal. - Okay.
It's a big deal for any outlet to get space in DLF Mall.
- They don't have space. - Yes.
They have high footfalls
- with good-quality audience. - Right.
You don't have a standard look and feel.
All of them are different.
If you look at this one, it gives a purple vibe.
I expected them to look like the one you had set up here,
but one's orange and the other's blue.
Those two outlets are in malls
and we've to abide by their guidelines.
You build a brand on consistency.
Once we have some buying power,
- we can tell the malls that this is what we want. - Got it.
Where are the 40 outlets you currently have?
They are in Bengaluru, Hyderabad, Chennai and Delhi.
Just one commissary in Bengaluru as everything is ambient.
- Is your outlet level assembly-only? - Yes.
Ours is a dine-in and delivery.
Dine-in is 15% and delivery is 85%.
We started dine-in 2 to 3 months back.
What's your vision in terms of QSR?
If you want to make this a pan-India brand in future,
how are you thinking about the QSR model?
A lot of consumption is happening online nowadays.
- My audience orders from Swiggy a lot. - Correct.
The audience goes out on Saturdays and Sundays.
They mostly visit bars, clubs and pubs.
This is more a takeaway or a home delivery item.
We don't want to spend too much money on CapEx.
and they can generate a higher revenue per square foot.
Only then, we'd be able to make a profitable business.
This is our strategy.
We always open a cloud kitchen first.
The cloud kitchen...
Take for example, our Koramangala store.
It used to be a cloud kitchen which was converted later on.
Once the cloud kitchen becomes profitable,
only then we proceed lest we make the wrong decision.
We open a physical outlet by investing Rs. 12 lakhs...
This is the smartest thing he's done.
Kunal invested in you.
Did he find you or did you find him?
Our first round happened in November.
- How big was the round and... - Rs. 10 crores.
- Rs. 10 crores straightaway. - Yes.
- Valuation? - And valuation?
Rs. 40 crores post money.
Okay. How much did he invest?
Rs. 3 crores.
When you started... What month did you say it was?
October.
How could you get a valuation of Rs. 40 crores in just 2 months?
Aman, I've built a QSR before.
He's got a history of success.
I'm a seasoned QSR entrepreneur.
Tell us your revenue so we can understand the valuation.
Rs. 40 lakhs in October.
- First month? - Yes.
How can it be Rs. 40 lakhs in the first month itself?
Aman, I opened 5 cloud kitchens.
I've done QSR before and run 500 cloud kitchens.
And in November?
Rs. 60 lakhs in November.
- And you received funding in December. - Yes.
You got Rs. 40 crores in just 2 months!
I'm surprised!
Don't investors think? They upped and gave you Rs 40 crores valuation!
[laughter]
Who else invested?
Global Growth Capital, a UK-based fund.
Your earlier investors.
- Yes, they were. - Okay. Who else?
Other than Arjun Vaidya,
- Razorpay founders, Mars Shot guys. - Okay.
Aakrit and Miten from Peercheque.
- Mostly angel-type of funds. - Yes.
- Did you raise another fund? - Yes, we did.
How much?
Rs. 30 crores at a post-money valuation of Rs. 110 crores.
Whew!
Who invested this time?
Institutional investors 8i Fund, Titan Capital Winners Fund.
Other than that,
Global Growth Capital and DeVC Matrix.
In 2023-24, you operated for 6 months.
What did you close at?
Rs. 5.2 crores.
2024-25 year-to-date?
Rs. 17 crores so far.
- And projected sales? - Over Rs. 30 crores.
Okay, it's not a lot.
What was the burn per month last year?
Last year, we burned Rs. 1.8 crores.
- Negative. - Give us the unit economics
so we can know what is causing the burn.
- Our gross margin is 65%. - Okay.
Rent is 8%.
Salaries is 12 to 13%.
- We get a commission from Swiggy. - How much?
16 to 17% from dine-in and delivery combined.
- Okay. - At the store level, we get 20%.
Plus another 7 to 8% on performance marketing.
- You're left with 20% after that. - Yes, 20%.
Where do you spend that?
Out of 20%, 10% is spent on brand marketing.
- The rest? - Corporate expenses.
- What corporate expenses? - Salaries.
What's your salary, Dhruv?
I take Rs. 2.5 lakhs per month.
Who's the highest-paid person?
The highest-paid is about Rs. 42 lakhs a year.
- Who is he? Why that much? - He's my VP of Operations.
- Operations Head. - Okay.
- He manages all your stores. - Yes.
You're doing absolutely the right thing.
I think a restaurant chain is only as strong
- as its Operations Head. - Exactly.
So, a very good idea. Spending more...
And I'm happy you pay him more than yourself.
It's really important.
Exactly, because I believe
- you need a strong team to build a strong foundation. - Yes.
You're a player.
[laughs]
Boba Bhai!
Sir, I learned it from you after watching Shark Tank.
[laughter]
You brought so many investors on board.
You got a valuation of Rs 170 crores in one year.
Look at his track record.
- Rs. 1 crore... - Serial entrepreneur.
Well done.
- Thank you. - You understand money.
You understand business. It's dirty, but it's business.
Why'd you come here? What can you get from the Sharks?
- See, I've built businesses outside India. - Yes.
This is my first business in India.
I want to make it big in India and make it global.
That's a great point.
You've worked in the Indian and global markets.
How do the food industries differ?
Doing business overseas is much easier.
You get licenses quickly.
The requirement is less.
In India, everything takes time.
The environment overseas is structured.
The structure is just coming to India.
The AOV there is very high.
It's a fight here!
The AOV there is in pounds.
It could go to Rs. 3,000.
Here, you're working around an AOV of Rs. 350 to 400.
Customers in India are very demanding.
How do the tastes differ?
In India, the taste changes every 5 to 10 km.
- Correct. - Let's talk about Bengaluru.
J P Nagar prefers a certain taste and HSR, a different one.
How do you tackle this?
We go city-wise.
In Hyderabad and Chennai, the food is spicier.
If it's Delhi, the food has to be kept non-spicy.
Delhi offers more veg options
whereas in Hyderabad and Chennai, non-veg is...
- And what does Boba Bhai do differently? - Bubble teas.
It's simple. For instance, Mango Chilli and Jamun Kala Khatta
are flavours that do well in the North.
Similarly, Tender Coconut and Tangy Kokum
do well in the South.
Be honest.
You spend Rs. 3 crores a year on your brand.
- You mentioned 10%. - Yes.
In a way, you're using Rs. 50 lakhs for branding.
Give us equity for Rs. 1 crore in lieu of branding.
The ask is not just the money, but expertise as well.
Who'd agree?
For 0.3%, I wouldn't even move my chair!
Why do you think
that for 0.3%
someone would invest their time and work closely with you?
You could increase the amount and take a bigger stake.
Okay, got it.
I'm out.
I think you don't need my money.
I want to give my money and time to someone who needs it.
You already have so many investors, if I come on board too,
the equity will be negligible! [clicks tongue]
I'd rather invest a few crores
and start this business with someone!
Unfortunately, I'm out.
Thanks, Aman.
I like your product.
I am in.
I would like to invest
Rs. 90 lakhs for 1% equity.
Here's my problem, man.
I think long-term differentiation is very hard.
Viraj!
I'm not clear whether the Korean culture now is faddish
or it is here to stay.
Secondly, the investment and return economics
makes no sense at all.
Negotiate as hard as I may,
all I'm going to get is 1 or 2%.
So, I'm out. Good luck.
Usually, QSR doesn't excite me a lot
but I read a statistic that got me really excited.
In the US, there are 75 food brands
with more than 500 outlets.
Do you know what that number is in India, per brand?
- I think less than 10. - 5.
And given that Indians are foodies,
this market is such that there is scope for a lot more.
Dhruv, the bottom line is you will have to start chains.
- Yes, 100%. - There is scope for more players
- to become branded chains. - Agreed.
I'd like to collaborate with Viraj on his offer.
Our offer is Rs. 90 lakhs for 1% equity.
But I've convinced him,
because I'm a Shark and he's new,
to take royalty from you.
Once you get profitable,
we will take 0.5% of sales as royalty
Thank you, Sharks, for the offer. I have a counter offer.
Yes.
I can't give you royalty.
No! If we won't take royalty,
we had thought of taking a higher equity.
We can't face the double whammy
of not taking royalty and higher valuation.
Look, we're going to be a big company.
Why are you refusing to give royalty?
It's because Kunal forbade you.
[laughter]
I haven't spoken to him,
- but all smart founders know. - Okay.
My investors won't agree to give royalty.
You're very honest, we like that.
- So, we'll give you equity instead. - Okay.
Rs. 90 lakhs for 1% equity.
We are not going to budge.
We bring value, you know.
And he's the food king of India!
Sharks, deal closed.
Look, you got the food king on board!
'I didn't expect to receive a deal from two Sharks.'
'Having Viraj on board,'
especially his expertise in food from Veeba,
will help us a great deal going forward.
Boba! Veeba!
- It even rhymes. - Oh, rhymes also.
Well, it's luck.
- Congratulations. - Thank you.
Kunal, we finally have one company together!
Bahl and Bahl. Bahl & Brothers!
Well done, good deal.
Bad miss for others.
[mouthing words]
'Tell us about this.'
How has your experience been with the founder and the company?
He's a very...
You know, those extraordinary founders?
He's one of them.
Look at the traction.
If you look at boba tea in the West, it's completely commoditised.
- Some things are a fad and then their demand drops. - Hmm.
This was also a fad,
- it's hit escape velocity now. - Hmm.
China has
- at least two multi-billion dollar companies of boba. - Boba.
Okay.
Good deal!
That means it was a great deal as validated by Mr. Kunal Bahl.
I'm glad he told us that.
- We'll start a boba company... - That's what I was saying.
- Let's invest a few crores. - Rs. 2 to 3 crores.
We'll own 20% each.
- I know. - Management gets 60%.
- A-pop! Aman and Anupam! - A-pop!
Oh, yes! A-pop!
- A-pop! - [laughter]
- Hello, Dhruv. - Hello, Ashish. How are you?
- Welcome to our PokerBaazi zone where you hold the cards. - Thanks.
- How was your experience? - Great, it was exciting.
No, I was totally 'daebak'!
[laughs]
You must exude confidence!
The first is the introduction phase.
Then the growth phase and the last one is maturity.
For our audiences at home,
please share a story relating to any of these phases.
- I find the growth phase really exciting. - Hmm.
Our company is just a year old.
- So, our introduction phase was quite small. - Yes.
We've seen growth since day thirty.
And I feel that the fun in the growth stage
outdoes that of the introduction and maturity phases
because you come across problems in the growth stage
- that you need to figure out on your own. - Okay.
You keep learning over time, and that's really exciting.
Very interesting. Thank you so much for sharing that.
I was just looking at the cards.
Go and download the PokerBaazi app now.
[upbeat music playing]
[music fades]
Weren't you about to change the screen?
You want to bring about worthless changes.
If you want to make a change, make sure it's worthwhile
like the one ACKO made
in the insurance landscape with its revolutionary offerings.
Don't fall for false claims made by agents.
Know your insurer and trust ACKO.
It is the trusted choice of lakhs of Indians
and has settled over 3 lakh car claims.
So, go and download the ACKO app now.
[theme music playing]
[theme music fades]
Sharks, before talking about our brand,
we want to talk about the present-day consumers.
They don't want to be lost in the crowd,
but on the contrary, wish to stand out.
They are not black or white,
their personalities are really colourful
and over and above that, they're all out there
be it their social media posts or their fits of the day!
And it's just not restricted to their clothes.
Understanding these very sensibilities
is as easy for us as our effortless footwork
at Hexafun!
Hexafun is a lifestyle accessory brand
Why spoil your airport look with that boring black suitcase
when you can use a funky luggage cover?
Why wrap your gym shoes in a polythene bag
when you can use these shoe covers?
By the way, people have forgotten to use hankies.
And why wouldn't they?
They don't suit their personalities after all!
But no worries
because we've got handkerchiefs
that complement each of your personalities
that are unique in design
and can be styled anyhow you want,
just as I styled mine on my belt loop.
All our products are 97% fashionable,
3% sassy and 100% sustainable.
We started Hexafun with handkerchiefs and socks
and today in 6 categories, through over 10 lakh products,
we've managed to unhide the fun side of our customers.
We want to make Hexafun India's funkiest lifestyle brand.
Our ask is Rs. 1 crore for 4% equity in our company.
So, Sharks!
Are you ready to look beyond basic clothing?
Because it's the little details that matter.
Manali and Harshit!
Welcome to Shark Tank India Season 4!
After that, I did a post graduation in Mass Media
and my specialisation was Advertising.
In the last 13 years,
I've worked with advertising, marketing and branding firms
on leading FMCG brands.
I'm 31 and belong to a business family from Delhi.
I did my schooling and graduation in Delhi
and moved to Mumbai to do my MBA.
I've been in Mumbai for the last 10 years.
Out of eight years of my corporate career,
I spent seven with India's leading retail group.
Which one?
- I worked with Future Group, sir. - Hmm.
I first worked in their FMCG division
and then in the founder's office.
I, then, built a start-up for them from scratch
which was in the space of kids' furniture and decor.
What became of it?
It's running. It's all there.
How big was it?
I took it to a Rs. 10-crore ARR.
Did you meet her when you came to Mumbai?
No. We actually met in 2018.
When I was heading marketing for FMCG Foods at Future Consumer,
that's when Manali joined us.
We were on the same team for two years.
Both of us are quite passionate about brand building.
We're both strongly opinionated.
So, we had quite a healthy, you could call it competition
or bickering.
That's when we became friends.
When it came to starting Hexafun, we collaborated.
They say that a girl and a boy can't be friends.
You're just friends, right?
- Yes. We're friends, sir. - Yes.
- We are friends. - Who said it?
- 'Maine Pyar Kiya.' - 'Maine Pyar Kiya.'
- I did not know.
I'm married. [laughs]
Oh, sorry.
[all laugh]
Did you not wear shoes just to show us the socks?
You can have fun in socks. You don't need shoes.
Is this your hero SKU?
Socks and hankies make up 85% of our total sales.
...and come from the brand world,
- that looks to me like a beaker used in a lab... - Yes.
- Hexa generally conjures up images of physics or... - Right.
So, what's going on here?
These are lifestyle products.
When we started this brand,
- the first product... - When did you start it?
In March 2021.
When we started it,
the first product that came to our mind was a handkerchief.
We thought since we were making boring things fun
and making people experiment,
- we ought to add the beaker... - Oh!
To our logo.
You'll keep explaining.
- Yes, stretch... - You'll keep explaining this all your lives.
Great logos and brands are which you get right away.
- This has stretched out... - Okay.
The feeling I'm getting is
- that it is some kids' Science EdTech company. - Okay.
I always give Zerodha's example.
"Zero" borrowed from zero brokerage or zero flat fees
and "rodha", which in Sanskrit means hurdles.
- Means removing the obstacles in stock broking. - Okay.
So, "Zerodha"! It's such a beautiful word.
- It can be explained and connected to their business. - Right.
Your beacon and accessories are not even remotely connected.
I think they made a very valid point.
Fair enough.
Have you brought any gifts for us?
- Yes. - Show us.
I was just joking.
It doesn't mean you won't give me gifts!
[laughter]
This is especially for you.
They'll get upset and leave!
Oh my God!
I've got pharma written on my socks. How cool!
What have they written on yours?
Oh, my! This is really nice.
"You're a great guy." Nice!
'We Can Do It Too'
This is good. You chose some good lines. I love you.
Where did 'love guru' come from?
[laughs]
- I gave you the moniker, remember? - It's right.
You'll see this in my next ad.
Vibe check. Veeba check. Thank you very much.
You made one mistake.
Can you see what the mistake is in this?
You misspelt "cluttered".
- Cluttered is cluttered. - Yes.
- Right? - Right.
Attention to detail
- is very important in any business. - Fair enough, ma'am. Sorry.
- It's our... - Now, do 10 sit-ups.
[laughter]
The quality of the products is also quite good.
All our products are made of organic cotton and bamboo.
what sells in India as well as globally
and how we can make the quality better.
Which is why the socks that you see are made of bamboo.
We've used spandex in place of nylon
so you get the maximum stretchability and comfort.
So, your raw-material sourcing is your quality check.
After that, you can give it to any third-party manufacturer.
- So, what we do is buy our own raw materials. - Okay.
The specialised tasks
- like printing or knitting are outsourced by us. - Okay.
And then, the final packing and QC check is done on our end.
Do people even use handkerchiefs in this day and age?
Is it a hanky or a scarf
- that you normally sell as a hanky? - A hanky.
It's a hanky, you can style it as you wish.
But who uses hankies now? Do people use it?
That was the question that made us start manufacturing the handkerchiefs.
There is a movie, 'The Intern.'
- Yes, in that he says... - He says that,
'The new generation does not understand the importance of a hanky.'
We did our research and asked people.
Everyone said that hankies are uncool,
and old school. Our moms and dads used it.
- It had flowers and leaves on it. We don't use it. - Yes.
That's when we thought
that fashion is everywhere, from clothing to accessories.
Our highest-selling pack
is not a pack of three, six, nine or twelve.
We have a 30-day, 30-hanky pack.
A customer comes to our site and buys that on their first visit.
We spoke to them and everyone's reaction was
'We never thought a hanky could be like this.'
'This is very cool and I want to carry it with me.'
No, no... Hold on. If you see the traditional use
- of a hanky, people would keep it in their pockets. - Right.
- And they used it to clean their sweat. - Yes. - Right.
- But these don't look like people would use it that way. - Right.
We are not positioning them only as hankies.
Then these are small scarves, not handkerchiefs.
- And you won't even feel like using it to clean your nose. - Yes.
They don't look very absorbent.
What's your price point?
A pack of three hankies is for Rs 349.
- How much is this? - This is Rs 699.
There are seven hankies for Rs 699.
There are mass premium brands in the market.
Like Van Heusen or Jockey.
They are almost the same price or we are 10% premium price more than them.
But they have white hankies.
They have white or maximum navy blue,
beige or with checkered lines.
This is for Rs 999.
I don't see anything special in this.
It's very low quality. Firstly, it looks cheap from the outside.
And there are a lot of loose threads inside.
What's the excuse here?
There is no excuse for that.
We've just introduced it.
Then you should not bring it here. Shark Tank is your moment, boss.
You're on a National platform.
How will it work if you bring these kinds of products?
Secondly, you brought this suitcase cover.
This is also not a very useful thing.
These days, people are flaunting
a lot of things for their airport look.
People find other avenues
where they can use things to suit their aesthetic look.
This is not only for an aesthetic look,
but it is also... We buy such expensive suitcases.
It is protecting the suitcase too.
It looks good from a distance.
But it looks like... Isn't it hindering the functionality?
If I want to open the suitcase
- what should I do? Do I open the full cover? - Right.
- You can... - The sleeve comes off in one go.
- When did you start this? - Seven months ago.
You get very cool-looking bags for four or five thousand.
Who will buy a cover for three thousand
and cover the bag?
Let's say I'm travelling by flight.
It's not like I started from here
and opened my bag only at my destination.
It's quite possible that I've to open my bag a couple of times in between.
This is a headache.
But it's the same logic as your mobile phone, right?
The mobile phone cover does not come in the way of operating the phone.
You can access all the functions on the phone with a good cover.
- The problem is you can't do that with your cover. - Okay.
That's the issue.
Okay, let's hear the numbers.
Tell us about your sales.
I'll be surprised if you say you're earning profits.
[pensive music playing]
In the first financial year 2021-22 we made 64 lakhs.
We did this at a loss of 16 lakhs.
In the next financial year we made 1.35 crores.
We did that at a loss of 64 lakhs.
Last financial year we did 3.2 crores with a loss of 2.2 crores.
What are the figures for this year?
This year we will touch six crores.
This will be at a loss of two crores.
What are your numbers so far?
Until November we have touched 3.5 crores.
And this is at 1.7 crores loss.
Uff!
In the next four months we will have only 30 lakhs loss
because in August and September
we have re-imagined our entire business model, channel,
product and everything else at the drawing board stage.
Who took the five crores loss?
We have put in four crore rupees.
We have investments from our friends and families
to the tune of 2.2 crores.
When did you raise this 2.2 crores?
This was raised over a series of smaller rounds.
- How much did you dilute totally? - 15.5% dilution.
84.5% is between Manali and me.
The split is 60-40. I have 60% and Manali has 40%.
What is your channel split?
30% comes from D2C.
20% is from domestic marketplaces
and 20% is from offline retail.
30% is from Amazon USA.
- I'd like to say something here. - Hold on, please.
that's because you don't have a choice.
- Yes, that's right. - That's absolutely right.
You had the money,
- now it's over. - That's right. - Correct.
You've reached the wall and now you're saying
you'll hit your head and break the wall?
- No, sir. I'd like to say a couple of things here. - Yes.
Yes, you're right.
Let us explain why we have come here.
We spent a lot of time
on building our D2C and over-indexing D2C.
With the hope that ROAS will improve
and we went on improving our marketing.
We thought we could also make it big
like we had heard and seen other brands do it.
When we reached this situation, that you mentioned
we realised this can't go on.
We decided to go back to the basics.
We started channel optimization.
We put a simple cap on D2C
where we had a fixed amount of expenditure
even if the revenue is less.
We decided to build revenue profitable channels.
October onwards we built our offline channel.
We started doing B2B white-labeling
It's a very large company.
They went to gyms, gave samples and made it in a big sock company.
They achieved profitability and scaled after
eight years. Then they did their second diversification.
They entered the underwear market.
You're doing so many things.
And I'm telling you that is the reason why
your brand is not getting established anywhere.
You are all over the place.
I showed you a spelling mistake just now.
I won't wear something,
with how much ever love you've given it. I appreciate it.
But I won't wear something with a spelling mistake.
I think sometimes when you try to do too many things too soon
you miss out on the attention to detail.
I hope you can pivot using that. But for today, I'm out.
Sure, ma'am.
- You've been in this for around three to four years now? - Three years.
Fundamentally, do you think this will work?
Yes, it will. And it will because we realise that,
having so many channels,
in so many things or being dependent on one channel,
both extremes are not good.
We must take an in-between approach and move ahead.
As Namita ma'am mentioned
instead of establishing six or seven categories
we should focus on two or three categories...
You're saying you launched that just today.
No, sir. It was launched 2.5 months ago.
We put all the eggs in one basket
which was performance marketing.
We did performance marketing after learning how to do it.
When we used to do it, the scale was very small.
The profitability was fine at that time.
That's why we were more dependent on that.
Actually, the biggest challenge of your company was not performance marketing.
Do you know what it was? Lack of constraints.
You had a lot of money with you
very early in the business and you went on spending it.
The same thing happened to us too, around 10 years ago.
But then one day there is a moment of reckoning
when you have to make corrections in your business
and they are quite deep corrections.
On Snapdeal, we saw there were many categories
which were islands of losses and they will stay that way.
There are some categories which are islands of profits
We sharpened our strategies.
We decided to operate in some categories
in a particular price band.
We won't work on anything else for the next five years.
It is very tough to say no to something
when you have spent so much time, money and energy on other things.
Along with that, we decided to build our USP too.
Which USP matters to the consumer
when they buy a T-shirt, jeans or shoes worth Rs 400 or Rs 500?
They are most sensitive to shipping costs.
No one will pay shipping for an item of Rs 50 or Rs 100.
We decided to make a single-point USP,
which was free shipping on 100% of the merchandise.
But to do that, we re-oriented the entire company.
You'll have to make a similar, significant transformation in your business too.
Right.
I am not confident that you're able to realise it even now.
And for that reason, I'm out.
Manali and Harshit, how much did you plan
to invest when you started? Your own money.
We thought about 10-15 lakhs or maybe 20 lakhs.
- And how much did you end up investing? - Four crores.
Not 10 times, but 40 times.
This is not how a start-up is made. You build a start-up
with one product.
A few people should love the product unconditionally.
And then slowly
either you introduce more products for the same customer base
or you increase that customer base.
Not that, 'This extreme did not work'
'all the money is exhausted,
let me step back and take a middle approach.'
Sir, as you are saying,
we are in dire need of your advice.
We want someone to join us who can
- give us the direction. - No, listen to me.
Today you are standing in a place where you
don't have a meaningful share in any product.
Socks. There are entire companies built around socks.
The hanky market is over and you're trying to revive that.
Your brand is completely disconnected from what you're trying to do.
You've even given the explanation at the back.
'One scientist is having fun on a dark night. Professor Hex...'
- 'The quirky scientist...' - Sir, I'd just...
What does it have to do with a lifestyle product?
I think you are a bit clueless. I'm out.
According to me,
you should stop everything else except socks and hankies.
And you should operate in all the channels to bring in the sales.
You can do something if the money comes in
and if you can change your logo now is the time.
I wish you all the best, but I'm out right now.
We need some guidance.
It's not like we've come here today because
we've finished our money and we'll change everything now.
- We've started our journey already. - Harshit.
- We need some more direction. - Good. Harshit and Manali,
this category is very bad.
Hankies category, bag covers! No bro!
My advice is
if you want to try something, try socks for a little longer.
I am out.
Always remember, less is more.
Pick one thing and focus on it.
Once that scales, then do another.
The entire four crore rupees didn't go to waste.
You have developed a muscle
to build certain products. You are getting private label work.
Double down, keep going hard on that. The money will come back.
You'll fight another day. Alright guys!
- Thank you, wish you all the best. - Thank you, guys!
Thank you.
We have also done our study. There is a market for hankies.
It's a hundred crore plus market.
I feel that if there was
an equal opportunity to speak and listen, it might have been better.
I think that's what's feeling worse.
Whether you get a deal or not,
it's okay not to get a deal.
Sometimes even educated people get carried away.
What happens is that
- All over the place. - many brands are being created,
in D2C so they also thought of making one.
Many founders
start spending money quickly, scaling revenue fast.
They think they'll get valuation and funding, and their job is done.
They are still stuck in 2020-21.
Yes, they also started back then.
- They too began in 2021. - Exactly!
But founders need to realise that money will never get you
product-market fit. Customer love gives you product-market fit.
You shouldn't even be looking for product-market fit in hankies.
- Hello, Manali. Hello, Harshit. - Hello.
It was good.
It was intense, quite engaging,
and we learnt a lot.
Yes, it was intense. I saw a lot of intensity too.
I thought at one point you'd take out a hanky and wipe your face
because they are such beautiful hankies.
- I'd keep doing that again and again. - Thank you so much.
Now look, shopping is therapy.
We need to enjoy life.
So whatever you say, I'll order in 10 seconds from Swiggy Instamart.
Start.
My throat is dry, so coconut water.
- Scented candles to relax a bit. - Chocolates.
Time up. Three things. You started giving reasons.
That's great, I saved my money. I will surely order three things.
Done! Order placed. Here's a gift from me to you.
Friends, order whatever you want from Swiggy Instamart.
Your items will arrive in 10 minutes. Order now.
[Shark Tank theme]
Greetings and welcome to this special segment
of Invest Smart with ICICI Direct.
I am your wealth buddy.
Today we will discuss some important aspects of the investment world
that will help you make informed and confident investments.
So, let's get started.
Today, we have Kkanchan and Himanshu from Haxor with us.
Hello.
When you invest,
what are your strategies and expectations?
When we need cash at that time, we look here and there.
We talk to our friends and families and also check our savings.
That's how we arrange our funds.
But there is a challenge.
Use our savings.
Sometimes savings, sometimes
we borrow from others with interest.
Let me tell you another option.
If you want to build personal investments in the stock market,
then you can get a funding boost with MTF,
Oh, that's really nice.
Hello and welcome to Ask the Shark.
With us is the founder and managing director of Veeba, Mr Viraj Bahl.
...young generation of entrepreneurs
is making me feel energised.
- Yes. - So it's a very good feeling.
Absolutely, we are enjoying it too.
Let's see how much fun you have after the question.
- I ask very tough questions. - Absolutely.
The question has been sent by Palak from Banaras. She is 23 years old.
If you get sales offline, then do offline.
If you get sales online, then do online.
If you can sell on the moon, then do that.
Sales solve all problems.
It was my own shortcoming.
I would genuinely admit
that it was my shortcoming. I was not an e-commerce customer.
I was a GT customer.
Because of that, I built my brand in GT.
Most welcome, thank you so much.
See you in the next Ask the Shark with a new question and a new Shark.