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[clanking]

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[table screeching]

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[music playing]

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[music concludes]

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[theme music playing]

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[theme music concludes]

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- Hi, Sharks.
- Hello.

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In India, even today,

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a middle-class family
spends their entire life savings

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on two things.

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The first is a daughter's wedding.

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And the second is buying
and furnishing their dream home.

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This daughter's wedding is done,

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so let's focus on making
and furnishing a home.

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Chokhat is a brand

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that makes
nature and animal-inspired

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as well as aesthetically pleasing
apart from being budget-friendly.

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but since I'm a product designer
by profession,

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how could I allow that?

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I can proudly say

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- The fruit basket is pretty.
- Thank you.

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that fulfils the smallest
of your home furnishing needs.

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We want to be a one-stop solution
for everything,

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from home furnishings to decor.

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So, Sharks, I have come
to your threshold today

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with an ask of Rs. 50 lakhs
for 7% of my company.

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- Congratulations, Prachi.
- Thank you.

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Your bangles look lovely.
When did you get married?

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Today...

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Exactly eight months ago.
It has been eight months.

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You shouldn't have taken
such a long pause after "today"!

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You had me there for a second.

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- Yes, I know.
- No.

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And lovely brand name. Chokhat!

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00:03:04,880 --> 00:03:06,560
- Thank you.
- It's very distinctive.

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00:03:06,680 --> 00:03:08,320
- Thank you.
- Your tagline is great too.

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You have a unique name for
every product like Netra and Ananas.

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We tried keeping names...

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So, it's evident you're extremely
passionate about design.

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- Thank you.
- Please tell us about your journey.

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I started this journey in 2018.

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I did a job for two years
before this.

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I graduated in product design.

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I had an inherent interest
in home decor and this field.

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So, I took up internships and jobs
in this field.

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Where did you work?

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My first job was with S&R Exports.

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It was an export house in Gurugram.

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What work did you handle there?

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00:03:38,360 --> 00:03:39,160
Similar products,

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00:03:39,240 --> 00:03:42,080
but we used to design products
for companies in the US and UK.

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My first job at the export house
was as an assistant designer.

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I worked there for a year.

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I switched to a merchandiser
in my second job.

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When you're into designing,

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they don't let you see
the production process.

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I worked there as a merchandiser.

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There, I learned sales,

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what production entails
and what coatings are.

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And there,
I'd work for 15 to 18 hours

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and sometimes, work all night too.

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That's when it struck me

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that if I started something
of my own,

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I might make more than
my current salary.

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On 13 September 2018...

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It was Ganesh Chaturthi by chance.

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I didn't know and it wasn't planned.

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I sent an email saying I couldn't
come because of an office situation.

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Oh, nice.

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- Yes.
- Wonderful.

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Wonderful.

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- You've been working on this
since 2018. - Yes.

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- Have you been doing this alone...
- Yes.

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Or did you get a co-founder?

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No. When I started in 2018,

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I worked from home for two years.

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I don't have a business background
nor did I have any guidance.

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I knew I had to keep the liabilities
to a minimum

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because I had only Rs. 1 lakh
which was my two years' savings.

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I designed ten products,

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caught hold of a craftsman
and pleaded with him to do it.

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Somehow, I got my products ready
by January 2019.

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I got a basic website made
for Rs. 15,000

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and that's how I started selling.

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This was the first year.

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I did the photoshoot myself.

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I was from a design college

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where you're taught basic software
like Photoshop

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and also basic photography.

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This is from my initial four years
when I was all alone.

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- Wow.
- Amazing.

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I felt awkward initially

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because you don't see girls...

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At least I haven't, not when
I was little or after I grew up.

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I still remember.

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The first time I went to deliver
an order, people were staring at me.

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This was during the pandemic.
I was crying under the mask.

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I felt this was a man's job.

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I did it once or twice
and then was very confident.

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I'd say, "Load the goods."

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"Just tell me what to say
to the police."

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- "Just load them."
- [laughs]

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From there to here,
it has been a remarkable journey.

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Solid.

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I was all alone for four years.

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- You didn't hire anyone
for four years. - No one.

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Out of four, I worked from home
for two years.

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After that, I bought
an office on sharing-basis

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with one of my relatives.

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I even ran the ads myself.

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Just last month, I handed it
over to a marketing agency.

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Do you have some products...
Have you brought us any gifts?

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- Yes, definitely.
I'll show them to you. - Fantastic.

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- Bring them here.
- Gifts! Hurrah.

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- That's a cutlery holder.
- Wow.

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That's a bowl.

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We sell the glass bowls separately.

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Wow! Lovely.

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- I love this. It's beautiful.
- A candle holder.

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- Thank you.
- Very subtle.

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- So, animals and nature...
- That's a trivet.

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Yes, totally.

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- What's this?
- That's a trivet.

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You keep hot pans on it.

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And that's a tissue holder.

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Oh, thank you. Nice. Looks...

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- The quality's good.
- Thank you.

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- What material is this?
- Iron.

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The finish is solid.

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- Hmm.
- The finish is great.

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The distinctiveness of your brand

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is that everything is nature...

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- Animal-inspired, yes.
- Animals...

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- The designs are the USP.
- Animals and birds.

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who I've signed NDAs with.

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"We will give you the design.
You can't give it to anyone else."

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- Are you manufacturing these
in India? - Yes.

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- All of it?
- Yes.

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Why do you only want
to make animals?

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00:07:01,080 --> 00:07:02,800
What's the reason
and story behind that?

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00:07:02,880 --> 00:07:05,920
Okay. The story is,
I started somehow loving the theme.

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And I realised

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We've made our surroundings boring.

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It's all very plain and bland now.

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- I'm trying to revive...
- That's a great insight.

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This... This is something
that can bring that...

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It's both.

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If you look at the market,
you'll see two distinct categories.

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One is very cheap,

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products with really simple designs
that are extremely affordable.

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The other is,
designer products like we call them,

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but they come under
the luxury price tag.

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I bridge this gap

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and try and provide
affordable luxury.

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Getting the first few customers
is the toughest part.

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It was very tough.
When I made the website...

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No one visited it for three months.

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Yes, it's not magic.

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Then I felt...

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00:08:06,360 --> 00:08:07,920
When I was 23 years...

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00:08:08,040 --> 00:08:09,800
That 23-year-old girl thought

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that India was a country
of 150 crore people

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and she'd get 3 to 4 orders a day.

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I started with that mindset.

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When I launched my products,
there was no traffic.

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Not even two people visited it.

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Then I realised I'd have
to do marketing and run ads.

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- I had no money to run ads.
- Did you learn that?

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- I learned how to run ads
from YouTube. - Wow!

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At that time,
Rs. 40 per day was the minimum.

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- Yes. - Going below that
wasn't allowed on Facebook.

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I started with that.

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That would have been futile.

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Rs. 40 would have got you one click.

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Eight clicks.

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You get only one ad
and at least, I...

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I thought my products would sell
like hot cakes in Delhi and Gurugram

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where my target audience is.

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But when I ran the ads, over time,
I realised my audience wasn't here.

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My audience is mainly
from Maharashtra and Karnataka.

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00:08:55,000 --> 00:08:56,720
- More in the South.
- And why was that?

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00:08:56,840 --> 00:08:59,000
- Did you speak to customers
and get an insight? - Yes...

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From the insight I got,
I thought that...

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00:09:02,120 --> 00:09:04,000
If you consider Delhi-NCR,

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people love to show off.

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00:09:06,800 --> 00:09:08,800
- Plus they have markets
like Chandni Chowk. - [laughter]

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00:09:09,320 --> 00:09:10,920
There are many people
from Delhi here.

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00:09:11,040 --> 00:09:12,200
- Many Delhites.
- Be careful.

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00:09:12,280 --> 00:09:14,320
- Yes, true.
- I'm from Delhi myself!

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00:09:14,760 --> 00:09:17,720
We don't value handmade goods
so much.

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00:09:18,360 --> 00:09:20,600
If you go to the South,
they really value handmade goods.

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00:09:20,680 --> 00:09:21,680
They look for it.

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00:09:22,760 --> 00:09:25,040
- Prachi, I wish to ask you
one thing. - Yes.

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00:09:25,200 --> 00:09:27,560
- You've been running the business
for six years. - Hmm.

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00:09:27,880 --> 00:09:28,920
It's very difficult.

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00:09:29,000 --> 00:09:32,480
Tell us about your challenging
moments during this period.

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00:09:32,680 --> 00:09:34,960
The challenging moments
were in the initial stage

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00:09:35,040 --> 00:09:36,160
when I wasn't getting vendors.

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00:09:36,240 --> 00:09:39,320
I've strengthened my foundation
in these six years.

200
00:09:40,320 --> 00:09:41,920
I don't have a big team

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00:09:42,040 --> 00:09:45,520
but I know that my manufacturing
and foundation is strong.

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00:09:45,600 --> 00:09:48,520
If you go to Muradabad
and those places,

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00:09:48,600 --> 00:09:50,560
- every other person is doing this.
- Yes.

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00:09:50,640 --> 00:09:53,280
You've to carefully choose people.
"What if he sells it?"

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00:09:53,440 --> 00:09:56,320
This happened to me initially
when I was...

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00:09:56,440 --> 00:09:58,680
My first product
was the elephant bowl.

207
00:09:58,760 --> 00:10:01,080
The craftsman I gave the order to
sold the product to someone else.

208
00:10:01,160 --> 00:10:02,760
My products started getting copied.

209
00:10:02,840 --> 00:10:05,520
That was a shock for me.
I would say, the lowest point.

210
00:10:05,600 --> 00:10:07,440
"I haven't made enough money"

211
00:10:07,600 --> 00:10:09,040
"and people
have started making copies."

212
00:10:09,120 --> 00:10:10,120
How do you deal with it?

213
00:10:10,320 --> 00:10:13,280
I realised I had
to take a practical approach.

214
00:10:13,400 --> 00:10:17,400
The products are bound to be copied
even if I get a copyright.

215
00:10:17,480 --> 00:10:18,480
We live in India.

216
00:10:18,560 --> 00:10:20,520
I can't go to every alley
and see who's selling copies.

217
00:10:20,600 --> 00:10:22,120
Who did you send legal notices to?

218
00:10:22,200 --> 00:10:23,920
Yes, there's a legal cost too.

219
00:10:24,000 --> 00:10:25,720
I told myself,
"This is going to happen."

220
00:10:25,960 --> 00:10:27,280
"I need to focus on the products."

221
00:10:27,360 --> 00:10:30,520
"They can sell what they see here
but not what's in my head."

222
00:10:30,680 --> 00:10:32,560
"So, make the distribution strong."

223
00:10:32,760 --> 00:10:34,440
Look, I'm not attached.

224
00:10:34,520 --> 00:10:35,800
I'll sell it for one year
and forget about it.

225
00:10:35,920 --> 00:10:37,600
- Prachi, do you even breathe?
- [chuckles]

226
00:10:38,400 --> 00:10:40,800
- When do you? - Everyone
advised me to speak slowly.

227
00:10:40,920 --> 00:10:41,840
No, I like it.

228
00:10:41,920 --> 00:10:43,800
- You're really articulate.
- Thank you.

229
00:10:43,880 --> 00:10:44,800
You speak fast,

230
00:10:44,880 --> 00:10:47,640
- but you're able to
express yourself well. - Thank you.

231
00:10:47,720 --> 00:10:50,360
Tell me something.
You struggled quite a lot.

232
00:10:50,720 --> 00:10:52,640
Where do you want
to take this business?

233
00:10:52,880 --> 00:10:54,400
What is your vision for Chokhat?

234
00:10:54,480 --> 00:10:57,200
I heard Deepinder make a statement

235
00:10:57,360 --> 00:10:58,880
which stuck with me.

236
00:10:58,960 --> 00:11:01,280
It was, "A good brand is one"

237
00:11:01,400 --> 00:11:05,760
"that seamlessly blends
into the lives of your customers"

238
00:11:05,960 --> 00:11:07,640
"without them having
to put in any effort."

239
00:11:07,720 --> 00:11:09,600
Let's say 5 or 10 years
down the line,

240
00:11:10,000 --> 00:11:11,560
Aman and Vineeta are talking.

241
00:11:11,640 --> 00:11:14,280
They have to attend a birthday party
for example.

242
00:11:14,400 --> 00:11:15,680
Or a housewarming party.

243
00:11:15,800 --> 00:11:17,680
And they were discussing
that they didn't buy a gift.

244
00:11:17,920 --> 00:11:19,200
So, they confidently say,

245
00:11:19,280 --> 00:11:20,640
"We'll buy it from Chokhat
on the way."

246
00:11:20,720 --> 00:11:22,200
- "We'll get something nice."
- Very good.

247
00:11:22,280 --> 00:11:25,640
I want to hear that
and see it become a reality.

248
00:11:27,000 --> 00:11:28,800
- Can we get to the business then?
- Yes.

249
00:11:28,880 --> 00:11:31,400
What have you made in six years?
What are your numbers?

250
00:11:31,480 --> 00:11:35,200
Okay. When I just started,
my first year's sales were zero.

251
00:11:35,280 --> 00:11:36,120
- Nothing at all.
- [chuckles]

252
00:11:36,240 --> 00:11:37,360
Because I sold nothing.

253
00:11:37,440 --> 00:11:40,080
In the second year,
we clocked Rs. 4.5 lakhs.

254
00:11:40,200 --> 00:11:42,200
After that,
we clocked around Rs. 10 lakhs.

255
00:11:42,680 --> 00:11:44,480
The year after that,
my sales were only Rs. 11 lakhs.

256
00:11:44,560 --> 00:11:46,880
I wondered what happened
because the sales didn't increase.

257
00:11:46,960 --> 00:11:48,320
I'd done something wrong.

258
00:11:48,440 --> 00:11:50,160
Then I realised
I needed more products.

259
00:11:50,280 --> 00:11:52,080
I created more designs
and introduced more products.

260
00:11:52,160 --> 00:11:55,000
- The following year,
we did Rs. 30 lakhs. - Good.

261
00:11:55,080 --> 00:11:57,920
And last year, we did Rs. 55 lakhs.

262
00:11:58,120 --> 00:12:01,080
We formed a private limited company
in April

263
00:12:01,240 --> 00:12:02,880
and sales started coming in
after June.

264
00:12:03,000 --> 00:12:06,760
In the last ten months,
our net sales were Rs. 50 lakhs.

265
00:12:09,360 --> 00:12:12,600
From April to September,
we clocked about Rs. 50 lakhs

266
00:12:12,680 --> 00:12:13,880
including October.

267
00:12:13,960 --> 00:12:15,600
- Will you make Rs. 1 crore
this year? - Definitely.

268
00:12:24,200 --> 00:12:25,800
It was 8%.

269
00:12:25,960 --> 00:12:26,880
What is the gross margin?

270
00:12:26,960 --> 00:12:28,880
My COGS is 39%.

271
00:12:29,120 --> 00:12:32,040
Then operations comes to about 13%,

272
00:12:32,120 --> 00:12:33,600
which is salaries and others.

273
00:12:33,720 --> 00:12:36,000
Then marketing is 17%.

274
00:12:36,360 --> 00:12:39,520
2% goes to Shopify and Razorpay,
1% each.

275
00:12:39,640 --> 00:12:41,800
And logistics and returns are 11%.

276
00:12:41,920 --> 00:12:43,320
- Including returns?
- Yes.

277
00:12:43,400 --> 00:12:44,240
Okay.

278
00:12:45,240 --> 00:12:47,280
Do you sell everything
on your website now?

279
00:12:47,360 --> 00:12:48,480
Yes. 100% website.

280
00:12:48,560 --> 00:12:49,600
How many people are in the team?

281
00:12:49,760 --> 00:12:52,440
There's me and two packers,
one full-time and one part-time.

282
00:12:52,520 --> 00:12:55,000
That's too few. You haven't
made a team in four years.

283
00:12:56,200 --> 00:12:59,080
After four years,
I understood I needed a team.

284
00:12:59,400 --> 00:13:01,440
However, there was
also this thought.

285
00:13:01,520 --> 00:13:05,000
If I hire someone,
be it a help for packing,

286
00:13:05,120 --> 00:13:07,000
I'm aware this is their livelihood.

287
00:13:07,080 --> 00:13:09,960
After ten months, I can't tell them,
"I can't pay you, sorry."

288
00:13:10,080 --> 00:13:11,120
I didn't want to do that.

289
00:13:11,240 --> 00:13:13,240
- Like this, you won't be able
to hire anyone. - Yes.

290
00:13:13,400 --> 00:13:14,400
No, the time has...

291
00:13:14,480 --> 00:13:17,040
You can't be sure of when you need
to hire people or fire them.

292
00:13:17,840 --> 00:13:20,400
Yes, that is something
I still need to learn frankly.

293
00:13:29,040 --> 00:13:32,480
Because she was older than me.
She was 35 or 36.

294
00:13:32,640 --> 00:13:34,160
She handled operations.

295
00:13:34,240 --> 00:13:36,440
Labels, managing inventory
and feeding orders.

296
00:13:36,520 --> 00:13:38,600
Basic work like making POs.

297
00:13:39,040 --> 00:13:43,840
And some people have this mentality
that it's just a 9 to 5 job,

298
00:13:43,960 --> 00:13:45,840
but she worked 9 to 3 only!

299
00:13:45,920 --> 00:13:48,920
If the office starts at 10:30 am,
she'd come at 11 or 11:30 am.

300
00:13:49,040 --> 00:13:52,840
I gave her multiple warnings
to change but she didn't.

301
00:13:52,920 --> 00:13:55,680
And when work started getting
affected, I decided it was enough.

302
00:13:55,760 --> 00:13:57,200
- What?
- "This might be just a job to you."

303
00:13:57,360 --> 00:13:59,480
- "My business is getting affected..."
- How many months did she work?

304
00:13:59,600 --> 00:14:00,840
Eleven months.

305
00:14:00,920 --> 00:14:02,600
Forget about those who're gone.

306
00:14:02,720 --> 00:14:05,080
Tell us who's the next highest paid
and what they draw.

307
00:14:05,160 --> 00:14:06,800
I have two employees other than me.

308
00:14:17,560 --> 00:14:19,960
I see you're paying less than
minimum wage to a packer.

309
00:14:22,320 --> 00:14:24,160
I understand
that I need a good team,

310
00:14:24,280 --> 00:14:25,720
and a good team comes at a cost.

311
00:14:25,880 --> 00:14:27,200
That is one reason I'm here

312
00:14:27,280 --> 00:14:30,160
because I need funds
to give them salaries.

313
00:14:30,280 --> 00:14:31,960
Or create a runway for a year

314
00:14:32,040 --> 00:14:34,120
giving them job security
and assurance.

315
00:14:34,440 --> 00:14:36,280
So, I know about that.

316
00:14:36,360 --> 00:14:39,280
I'm well aware I currently lack it.

317
00:14:39,840 --> 00:14:43,280
- Prachi, you built a good business
in six years. - Thank you.

318
00:14:43,400 --> 00:14:46,960
- Your people management
worries me a little. - Okay.

319
00:14:47,280 --> 00:14:49,160
I have no clarity on that front.

320
00:14:49,320 --> 00:14:52,680
How will you make a team
and manage it?

321
00:14:52,840 --> 00:14:55,880
- After a level, people management
is a big task. - Right.

322
00:14:55,960 --> 00:14:57,240
I have so many employees today.

323
00:14:57,320 --> 00:14:59,920
My company has 10,000 employees
directly or indirectly.

324
00:15:00,400 --> 00:15:01,880
Managing people

325
00:15:01,960 --> 00:15:04,520
- is one of the biggest things
I'm doing. - I know.

326
00:15:05,640 --> 00:15:08,880
Unfortunately, I'd like
to be out of this.

327
00:15:09,080 --> 00:15:10,240
No problem, thank you.

328
00:15:11,520 --> 00:15:13,120
Tell me something, Prachi.

329
00:15:13,240 --> 00:15:17,240
What level do you want to go to
in the next 3 to 5 years?

330
00:15:17,320 --> 00:15:20,560
By 2026-27,
I see my first store happening.

331
00:15:20,960 --> 00:15:24,440
I've worked out a basic calculation
to get to that level.

332
00:15:24,520 --> 00:15:26,600
I'd like to clock
Rs. 1 crore sales this year.

333
00:15:37,160 --> 00:15:39,520
- You'll also need to do
channel expansion. - Definitely.

334
00:15:39,600 --> 00:15:41,080
List on marketplaces.

335
00:15:41,160 --> 00:15:42,400
I've already done that.

336
00:15:42,480 --> 00:15:44,200
I experimented with Amazon.

337
00:15:44,280 --> 00:15:45,520
The return rates were very high.

338
00:15:45,640 --> 00:15:47,080
I think because the consumers...

339
00:15:47,160 --> 00:15:48,960
I don't know,
but I think this was the reason.

340
00:15:49,080 --> 00:15:52,000
They're habituated to using products
and sending them back.

341
00:15:52,120 --> 00:15:53,920
- Return it once the purpose
is served. - Really!

342
00:15:54,080 --> 00:15:55,400
It didn't work out for me, yes.

343
00:15:55,480 --> 00:15:56,320
People do it.

344
00:15:56,400 --> 00:15:58,520
They buy earrings. After attending
the function, return them.

345
00:15:58,640 --> 00:16:02,360
We started selling on Myntra also
just this year in March.

346
00:16:02,520 --> 00:16:04,400
They have this thing on Myntra where

347
00:16:04,520 --> 00:16:06,120
if I sold this basket,

348
00:16:06,240 --> 00:16:08,360
I got some other product
as a return.

349
00:16:08,480 --> 00:16:09,760
That was not okay with me.

350
00:16:09,840 --> 00:16:13,080
I sold all the inventory
and told them, "This is my problem."

351
00:16:13,160 --> 00:16:15,320
"The returns are very high.
I cannot accept it."

352
00:16:15,520 --> 00:16:17,960
"Either list my product
under the non-returnable category"

353
00:16:18,080 --> 00:16:19,560
"or work on a return policy."

354
00:16:19,680 --> 00:16:21,040
They have agreed to that now.

355
00:16:21,120 --> 00:16:22,960
We'll go live on Myntra again.

356
00:16:23,040 --> 00:16:25,480
See, your problem
is your gross margin.

357
00:16:26,560 --> 00:16:29,400
Your gross margin for a premium,

358
00:16:29,800 --> 00:16:33,160
as you like to call it
"affordable luxury" in home decor...

359
00:16:33,320 --> 00:16:35,200
Apart from shipping,

360
00:16:35,280 --> 00:16:38,520
it's impossible to run a business
on a gross margin of 61%.

361
00:16:38,720 --> 00:16:39,600
Okay.

362
00:16:40,440 --> 00:16:42,560
- Because you want to build a brand.
- Right.

363
00:16:42,680 --> 00:16:45,080
And you'll need to invest
in order to build a brand.

364
00:16:45,200 --> 00:16:48,120
If you make your customer
the enemy by saying,

365
00:16:48,280 --> 00:16:50,800
"The customer is trying the product
and returning it."

366
00:16:50,880 --> 00:16:52,520
"The customer is cheating."

367
00:16:52,640 --> 00:16:54,680
Then you'll never become
a household name

368
00:16:54,760 --> 00:16:57,200
- because the customer is after all
the customer. - That's right.

369
00:16:57,280 --> 00:17:00,160
Brands need to evolve
to suit the customers.

370
00:17:00,280 --> 00:17:02,360
So, in your gross margin,

371
00:17:02,440 --> 00:17:04,200
you'll need to work out

372
00:17:04,280 --> 00:17:07,600
the costs of the team, returns,

373
00:17:07,840 --> 00:17:11,800
customer service
as well as marketing.

374
00:17:11,880 --> 00:17:14,080
- Otherwise, you'd have made
a trading business... - Right.

375
00:17:14,160 --> 00:17:15,600
- Not a brand business.
- Okay.

376
00:17:15,680 --> 00:17:17,120
At this moment,

377
00:17:17,360 --> 00:17:21,160
your dream and execution
are not matching.

378
00:17:21,240 --> 00:17:22,360
For that reason, I'm out.

379
00:17:22,480 --> 00:17:24,120
Okay, thank you.

380
00:17:24,840 --> 00:17:27,920
Prachi, every founder
has a superpower.

381
00:17:28,040 --> 00:17:30,280
- I know what Aman's is, right?
- [chuckles]

382
00:17:30,400 --> 00:17:33,520
- Everyone sitting here has some
or the other superpower. - Right.

383
00:17:33,600 --> 00:17:35,600
- Clearly, yours is design.
- Right.

384
00:17:35,720 --> 00:17:40,320
But the business is
in the early stages right now.

385
00:17:40,400 --> 00:17:41,280
Okay.

386
00:17:41,600 --> 00:17:44,000
The journey from selling a product

387
00:17:44,800 --> 00:17:46,280
- to building a brand...
- Hmm.

388
00:17:46,360 --> 00:17:48,240
There's a big gap there

389
00:17:48,400 --> 00:17:49,800
and a long way to go.

390
00:17:50,000 --> 00:17:53,320
- So, you'll have to start selling
on marketplaces. - Okay.

391
00:17:53,400 --> 00:17:55,200
- Only then your reach will widen.
- Right.

392
00:17:55,720 --> 00:17:58,800
- But for all these reasons, Prachi,
today, I'm out. - No problem.

393
00:17:58,920 --> 00:18:00,000
Thank you.

394
00:18:00,080 --> 00:18:04,160
Who is your competition
in this category?

395
00:18:04,240 --> 00:18:05,240
Who's the number one brand?

396
00:18:05,320 --> 00:18:07,240
I think there's a lot of competition
in this field

397
00:18:07,320 --> 00:18:10,000
because it's a very common category.
If I were to take a few names,

398
00:18:10,080 --> 00:18:11,600
one was on Shark Tank, Nestroots.

399
00:18:17,720 --> 00:18:18,680
There are a lot of brands

400
00:18:18,760 --> 00:18:20,960
- which I look up to. - How big
would the biggest business be?

401
00:18:21,120 --> 00:18:23,000
If I talk about the market size,

402
00:18:23,080 --> 00:18:24,280
as far as I've read about it,

403
00:18:38,200 --> 00:18:41,000
In the category
of home furnishing and decor,

404
00:18:41,320 --> 00:18:43,600
- there are no dedicated brands.
- Vari is about Rs. 50 crores.

405
00:18:43,680 --> 00:18:44,600
- Vari?
- Yes.

406
00:18:44,680 --> 00:18:46,200
- What do they do?
- Nestasia too.

407
00:18:46,760 --> 00:18:47,640
- Okay.
- Nestasia is bigger.

408
00:18:47,720 --> 00:18:49,680
- Nestasia is pretty big. Yes.
- Rs. 100 crores.

409
00:18:49,760 --> 00:18:51,800
Is there a saturation
in this business, Vineeta,

410
00:18:51,880 --> 00:18:53,400
at around Rs. 50 to 100 crores
as per you?

411
00:18:53,520 --> 00:18:56,400
Until now,
a Rs. 1,000-crore home decor brand...

412
00:18:56,480 --> 00:18:58,960
Even the Nicobar's of the world
are in it.

413
00:18:59,040 --> 00:18:59,920
The Bombay Store.

414
00:19:00,040 --> 00:19:01,680
They do clothing as well.

415
00:19:02,040 --> 00:19:05,120
Because of the fact
that just home decor has a cap.

416
00:19:05,200 --> 00:19:06,720
How do you plan on growing this?

417
00:19:07,160 --> 00:19:08,080
Categories!

418
00:19:08,360 --> 00:19:10,600
We can't stick
to just a few categories.

419
00:19:10,680 --> 00:19:12,960
Like I said, whatever
the requirement in your home,

420
00:19:13,040 --> 00:19:14,280
I want that...

421
00:19:14,360 --> 00:19:15,960
For example,
if you visit an Ikea store,

422
00:19:16,280 --> 00:19:17,160
they have everything.

423
00:19:17,240 --> 00:19:19,880
Do you want to be another Ikea
or home furnishing?

424
00:19:20,240 --> 00:19:21,760
I want to build an Ikea

425
00:19:21,840 --> 00:19:26,000
but with everything that might be
required inside the house.

426
00:19:26,120 --> 00:19:28,680
Be it a carpet, furniture or lamps.

427
00:19:28,920 --> 00:19:31,520
We will have
to gradually explore category-wise

428
00:19:31,600 --> 00:19:33,440
what is and what isn't
working for me.

429
00:19:33,520 --> 00:19:34,800
Anupam, your decision.

430
00:19:35,360 --> 00:19:38,080
I like your learning agility

431
00:19:38,320 --> 00:19:39,840
although you've taken a long time.

432
00:19:39,960 --> 00:19:41,240
You're quite self-aware.

433
00:19:41,880 --> 00:19:42,680
Thank you.

434
00:19:42,760 --> 00:19:44,400
I personally like this category.

435
00:19:44,480 --> 00:19:45,680
I think, as you said,

436
00:19:45,760 --> 00:19:47,720
the market is set to grow
in the next few years.

437
00:19:47,800 --> 00:19:49,000
- Right.
- A few brands will make it big.

438
00:19:49,560 --> 00:19:52,840
I don't quite find some of
the choices you made to be right.

439
00:19:53,000 --> 00:19:54,080
Me neither.

440
00:19:54,200 --> 00:19:55,440
[all laugh]

441
00:19:55,520 --> 00:19:57,040
- And that is your strength.
- There you have it.

442
00:19:57,120 --> 00:19:59,880
That is your superpower, right?
Your self-awareness.

443
00:20:00,000 --> 00:20:02,240
And you need some help, right?

444
00:20:02,560 --> 00:20:03,600
I'll make you an offer.

445
00:20:03,920 --> 00:20:05,640
[triumphant music playing]

446
00:20:07,240 --> 00:20:09,400
- I won't negotiate much.
- Okay.

447
00:20:10,200 --> 00:20:12,440
- Rs. 50 lakhs for 10% equity.
- Okay.

448
00:20:12,760 --> 00:20:16,760
But I will take a royalty
of 3% on sales, right.

449
00:20:16,840 --> 00:20:18,920
- 3% of your sales.
- Okay.

450
00:20:19,200 --> 00:20:21,200
Until I make 1.5 times my money.

451
00:20:25,640 --> 00:20:27,360
What's your view on this offer?

452
00:20:27,840 --> 00:20:29,720
I'll think and let you know.

453
00:20:29,840 --> 00:20:30,840
Tell me now.

454
00:20:31,120 --> 00:20:33,040
- Don't tell him. He's...
- Okay.

455
00:20:33,120 --> 00:20:35,480
- He's trying to understand what
he should offer you. - Yes, exactly.

456
00:20:35,560 --> 00:20:37,840
- You do what... - I was thinking
of collaborating with you.

457
00:20:37,920 --> 00:20:40,200
Why do you always think negatively?

458
00:20:40,280 --> 00:20:41,400
[both laugh]

459
00:20:43,000 --> 00:20:44,920
The problem is the pay scale,

460
00:20:45,680 --> 00:20:47,760
a lot to learn...
It'll take ten years,

461
00:20:47,920 --> 00:20:50,520
but I am also willing
to partner with you.

462
00:20:51,600 --> 00:20:52,720
Thank you.

463
00:20:53,080 --> 00:20:56,640
I think it'll take time,
but you'll build something.

464
00:20:57,000 --> 00:20:57,800
Thank you.

465
00:20:58,440 --> 00:21:00,680
First, tell me
if you want royalty or not.

466
00:21:00,800 --> 00:21:02,160
No, I don't think so.

467
00:21:02,280 --> 00:21:04,320
- I would not like to go ahead
with royalty. - Good decision.

468
00:21:04,400 --> 00:21:09,200
- I'll give you Rs. 25 lakhs
for 10% equity. - Okay.

469
00:21:09,280 --> 00:21:11,400
- And Rs. 25 lakhs debt...
- Okay.

470
00:21:11,480 --> 00:21:14,200
- When you need working capital.
- Right.

471
00:21:14,320 --> 00:21:18,640
- I want a 10% interest on
the debt component, right? - Okay.

472
00:21:18,720 --> 00:21:21,280
When you need it,
you can draw down.

473
00:21:21,360 --> 00:21:23,080
When you don't need it,
you can give it back.

474
00:21:23,160 --> 00:21:25,720
Let's set the tenure to draw down
as 1 year

475
00:21:36,200 --> 00:21:37,520
[tense music playing]

476
00:21:38,560 --> 00:21:39,960
What have you decided?

477
00:21:40,120 --> 00:21:43,280
I won't negotiate a lot
but I have a counter offer.

478
00:21:43,360 --> 00:21:44,800
Oh, you won't... [laughs]

479
00:21:44,880 --> 00:21:45,920
I love it!

480
00:21:47,520 --> 00:21:48,640
Okay, what is the counter offer?

481
00:21:48,760 --> 00:21:51,680
I want both of you to come on board.

482
00:21:51,880 --> 00:21:52,720
So...

483
00:21:52,920 --> 00:21:54,440
[gripping music playing]

484
00:21:55,480 --> 00:21:57,960
The counter is
Rs. 30 lakhs for 10% equity

485
00:21:58,160 --> 00:22:00,400
and Rs. 20 lakhs debt
at 10% interest as you said.

486
00:22:06,600 --> 00:22:09,520
Because both your superpowers
will be needed to build this brand.

487
00:22:13,800 --> 00:22:15,160
[gripping music playing]

488
00:22:19,360 --> 00:22:20,200
It's a good offer.

489
00:22:20,280 --> 00:22:22,000
- I think you've been fair.
- Yes.

490
00:22:22,120 --> 00:22:23,840
- I think...
- I'm okay with this

491
00:22:23,920 --> 00:22:25,760
if Anupam is okay with this.

492
00:22:26,680 --> 00:22:28,240
- Let's do it.
- Let's do it.

493
00:22:40,000 --> 00:22:40,880
Thank you.

494
00:22:50,800 --> 00:22:53,480
'Their superpower is my weak point.'

495
00:22:53,640 --> 00:22:55,040
So, I think it's a good combination.

496
00:22:55,200 --> 00:22:56,440
My designs

497
00:22:56,520 --> 00:22:59,600
with their distribution and tech.

498
00:22:59,720 --> 00:23:03,120
That combined, we can
build a big company for sure.

499
00:23:03,240 --> 00:23:04,560
[solemn music playing]

500
00:23:08,440 --> 00:23:09,600
Hello, Prachi. How are you?

501
00:23:09,720 --> 00:23:10,920
- I'm well. How are you?
- Good.

502
00:23:11,000 --> 00:23:13,040
- Great! Welcome to
our PokerBaazi zone. - Thank you.

503
00:23:13,120 --> 00:23:15,800
- How did it go inside?
- Fantastic. It was great.

504
00:23:16,040 --> 00:23:18,840
It was my first time with investors
and I loved it.

505
00:23:18,920 --> 00:23:21,400
Wow! That's great.
You had a good experience.

506
00:23:24,680 --> 00:23:26,680
You need to
keep analysing your business

507
00:23:26,760 --> 00:23:28,240
and sharpening your skills.

508
00:23:28,400 --> 00:23:30,320
- I want to play a game with you.
- Okay.

509
00:23:30,400 --> 00:23:32,760
Based on their strength, Poker hands
are ranked in a particular order.

510
00:23:32,920 --> 00:23:34,600
The sequence is displayed here.

511
00:23:34,800 --> 00:23:36,280
They are called hand rankings.

512
00:23:36,440 --> 00:23:38,280
The top hand is Royal Flush

513
00:23:38,360 --> 00:23:40,520
and the lowest winning hand
is High Card.

514
00:23:40,760 --> 00:23:43,920
- Today's hands in focus
are these five. - Okay.

515
00:23:44,080 --> 00:23:46,400
Every business has
a couple of important functions.

516
00:24:13,040 --> 00:24:13,920
Very nice.

517
00:24:14,000 --> 00:24:15,440
- Three of a kind.
- Then...

518
00:24:15,560 --> 00:24:17,480
Then comes marketing.

519
00:24:18,040 --> 00:24:19,840
- Interesting.
- We'll go series-wise.

520
00:24:19,920 --> 00:24:23,000
- After marketing, we have sales.
- Hmm.

521
00:24:23,120 --> 00:24:25,800
Then I think I'll go with logistics.
Operations and logistics.

522
00:24:25,960 --> 00:24:27,760
- Wow! At High Card.
- Yes.

523
00:24:28,000 --> 00:24:30,160
- Very interesting.
Product at Three of a kind. - Right.

524
00:24:30,240 --> 00:24:32,960
- And operations and logistics
at High Card. - Yes.

525
00:24:33,040 --> 00:24:34,280
Explain your winning strategy.

526
00:24:34,400 --> 00:24:37,480
A product is something without which
no business can start.

527
00:24:37,600 --> 00:24:39,480
Be it the service business
or any other,

528
00:24:39,560 --> 00:24:40,680
you have to have a product.

529
00:24:40,800 --> 00:24:43,040
And logistics because
I'm in a product business

530
00:24:43,120 --> 00:24:45,680
- in which logistics
plays a major role. - Hmm.

531
00:25:07,920 --> 00:25:08,960
It is hosted on PokerBaazi

532
00:25:09,040 --> 00:25:11,600
- with a total prize pool
of Rs 100 crores. - Sure.

533
00:25:12,040 --> 00:25:13,800
You too download the PokerBaazi app,

534
00:25:13,880 --> 00:25:15,920
use your strategies
to make a winning hand.

535
00:25:16,040 --> 00:25:17,840
Go and download
the PokerBaazi app now.

536
00:25:27,160 --> 00:25:30,320
I know you very well.

537
00:25:30,800 --> 00:25:32,800
You want to give real-time feedback
during cricket.

538
00:25:32,960 --> 00:25:35,160
"This shot should have been played
like that."

539
00:25:35,360 --> 00:25:37,120
"He should have taken that shot."

540
00:25:37,200 --> 00:25:39,360
"Sharks should have invested
in this business instead of that."

541
00:25:39,560 --> 00:25:41,640
If you have it in you,
then do it in real time!

542
00:25:54,920 --> 00:25:56,120
[music playing]

543
00:25:57,520 --> 00:25:59,080
Wow! Coffee early in the morning.

544
00:25:59,160 --> 00:26:00,680
- I don't mind, good.
- Zenma.

545
00:26:00,760 --> 00:26:02,960
I wish I'd known
we were getting coffee.

546
00:26:03,480 --> 00:26:05,720
- What is it? Oh, coffee!
- Yes.

547
00:26:05,960 --> 00:26:08,240
- Looks nice. - Had they told us,
we wouldn't have had coffee.

548
00:26:08,480 --> 00:26:10,080
[theme music playing]

549
00:26:31,960 --> 00:26:33,920
[theme music concludes]

550
00:26:40,800 --> 00:26:44,160
Sharks, it's quite evident
that you love your coffee.

551
00:26:44,360 --> 00:26:47,440
But there's no way one can make
such high-quality coffee at home.

552
00:26:47,640 --> 00:26:49,360
I'm sure you spent Rs. 250-300

553
00:26:49,440 --> 00:26:51,280
and ordered it
from a coffee shop, right?

554
00:26:52,120 --> 00:26:55,760
What good is that instant
mediocre coffee made at home?

555
00:26:56,040 --> 00:26:57,920
If you want cafe-like coffee,

556
00:26:58,000 --> 00:27:00,720
then you have to get one of
those expensive coffee machines.

557
00:27:00,960 --> 00:27:02,480
But if I told you

558
00:27:02,560 --> 00:27:04,840
that we've come up
with a revolutionary product

559
00:27:04,920 --> 00:27:07,880
that will completely change
your coffee-drinking experience,

560
00:27:08,400 --> 00:27:09,680
would you,

561
00:27:10,080 --> 00:27:13,320
in exchange for 3.5% equity,

562
00:27:13,400 --> 00:27:15,000
give us an investment
of Rs. 60 lakhs?

563
00:27:29,400 --> 00:27:30,240
Nice.

564
00:27:30,520 --> 00:27:34,840
Sharks, you have milk and water
with you as per your preferences

565
00:27:34,960 --> 00:27:37,040
along with a Medium Zenma shot.

566
00:27:37,120 --> 00:27:40,040
All you need to do
is peel, melt and pour.

567
00:27:44,720 --> 00:27:45,760
Generally, they're frozen.

568
00:27:45,840 --> 00:27:47,280
- We pre-melted them for you.
- Got it.

569
00:27:48,000 --> 00:27:49,160
If you want it hot,

570
00:27:49,240 --> 00:27:51,840
you merely need to pour
hot espresso into it.

571
00:27:51,920 --> 00:27:52,960
And iced?

572
00:27:53,040 --> 00:27:54,640
If you want to have iced,
pour it on ice cubes.

573
00:27:54,720 --> 00:27:56,560
[light-hearted music playing]

574
00:27:58,160 --> 00:27:59,800
While you enjoy your coffee,

575
00:27:59,880 --> 00:28:02,120
I want to ask you all a question.

576
00:28:02,280 --> 00:28:05,240
What's the most important thing
in a coffee shop?

577
00:28:05,400 --> 00:28:06,480
A good-looking barista.

578
00:28:06,880 --> 00:28:09,640
No! A good espresso machine

579
00:28:09,720 --> 00:28:11,200
and the barista's skills.

580
00:28:11,280 --> 00:28:13,120
And it's those very barista's skills

581
00:28:13,200 --> 00:28:15,400
that we've essentially captured
in our espresso pods.

582
00:28:16,640 --> 00:28:18,280
Sharks, do you know

583
00:28:18,360 --> 00:28:21,960
- that 80% of the coffee consumption
in India is done at home? - No way.

584
00:28:22,040 --> 00:28:26,080
And we've made this easier
and tastier for home consumption.

585
00:28:26,280 --> 00:28:28,080
Zenma Frozen Espresso Shots

586
00:28:28,240 --> 00:28:30,960
can be stored in your freezer
for up to a year.

587
00:28:31,080 --> 00:28:34,000
They don't contain any preservatives
or additives.

588
00:28:36,000 --> 00:28:38,080
We currently have four variants.

589
00:28:44,880 --> 00:28:48,360
We've sold over 70,000 shots
in the last 12 months

590
00:28:56,320 --> 00:29:00,160
Our mission is to see Zenma
in every freezer in India

591
00:29:00,280 --> 00:29:03,840
which is possible
with your expertise and investment.

592
00:29:04,040 --> 00:29:05,640
Aman, did you get a kick?

593
00:29:06,640 --> 00:29:08,720
Karan! Sheena!
Welcome to Shark Tank.

594
00:29:08,800 --> 00:29:09,680
- Thank you.
- Thank you.

595
00:29:09,760 --> 00:29:11,760
- The coffee is good, bro.
- It's yum.

596
00:29:11,880 --> 00:29:14,560
The coffee is great
and I wish to say one more thing.

597
00:29:14,720 --> 00:29:17,240
I have your coffee every day.

598
00:29:17,560 --> 00:29:18,360
Wow!

599
00:29:28,920 --> 00:29:30,640
Actually, it's very good.

600
00:29:30,720 --> 00:29:31,960
- Yes, it's very nice.
- Very good.

601
00:29:32,040 --> 00:29:34,400
I think I can feel the depth
because this is Medium Roast.

602
00:29:34,480 --> 00:29:35,600
- Thank you.
- I have a problem.

603
00:29:35,680 --> 00:29:36,960
I said in the last season

604
00:29:37,360 --> 00:29:39,520
that I drink the Nescafé coffee
which comes in a pouch.

605
00:29:39,600 --> 00:29:41,240
- I find it the best.
- Okay.

606
00:29:41,320 --> 00:29:43,800
- After that, this is
my next favourite. - Thank you.

607
00:29:43,920 --> 00:29:45,200
We were unsure about you.

608
00:29:45,560 --> 00:29:47,080
[all laugh]

609
00:29:47,480 --> 00:29:48,400
The coffee is good,

610
00:29:48,480 --> 00:29:53,800
but the Nespresso shots
have a very distinct taste.

611
00:29:53,920 --> 00:29:55,840
- It blends with water...
- Blends...

612
00:29:55,920 --> 00:29:58,640
- And the cream that forms
inside, it has... - Crema.

613
00:30:04,440 --> 00:30:05,440
That's a great point.

614
00:30:05,520 --> 00:30:09,840
In Nespresso pods,
you seal ground coffee

615
00:30:10,000 --> 00:30:12,240
whereas we flash-freeze the coffee
in Zenma pods.

616
00:30:12,320 --> 00:30:14,960
Which means it's frozen
to very low temperatures

617
00:30:15,080 --> 00:30:18,720
so that its aroma and flavour
stay locked in.

618
00:30:18,840 --> 00:30:21,040
The layer of crema is basically gas.

619
00:30:21,120 --> 00:30:24,000
If you froth this with steam,

620
00:30:24,080 --> 00:30:25,560
you'll see a layer of crema too.

621
00:30:25,680 --> 00:30:26,920
No, who'll go through the trouble?

622
00:30:27,000 --> 00:30:28,480
Generally speaking,
that doesn't happen.

623
00:30:28,560 --> 00:30:30,200
This is a convenience product.

624
00:30:30,280 --> 00:30:32,640
- So, it's not replacing
machine coffee. - Correct.

625
00:30:32,720 --> 00:30:34,840
This is replacing instant coffee.

626
00:30:34,960 --> 00:30:35,920
Let's hear it from them.

627
00:30:36,080 --> 00:30:37,640
- Tell us your story first.
- Sure.

628
00:30:38,440 --> 00:30:39,920
We're both from Delhi.

629
00:30:48,920 --> 00:30:52,000
- Where?
- Heinz, the ketchup company.

630
00:30:52,120 --> 00:30:53,200
[all laugh]

631
00:30:53,280 --> 00:30:55,120
I saved up some money then.

632
00:30:55,200 --> 00:30:57,040
I was always intrigued by coffee.

633
00:30:57,120 --> 00:31:00,880
- In North India, mostly everybody
drinks instant coffee. - Right.

634
00:31:00,960 --> 00:31:04,840
Instant coffee is made
by first grinding the beans

635
00:31:04,920 --> 00:31:08,000
and then, dehydrating it and
converting it into a powder form.

636
00:31:08,080 --> 00:31:10,360
That takes away
the aroma, complex flavours

637
00:31:10,440 --> 00:31:11,960
and any complexities.

638
00:31:12,040 --> 00:31:13,520
Does it contain preservatives?

639
00:31:20,240 --> 00:31:22,000
If you get a smell,
know it is added.

640
00:31:22,120 --> 00:31:23,200
All of them have a smell.

641
00:31:23,280 --> 00:31:25,360
They shouldn't
because it is dehydrated coffee.

642
00:31:25,480 --> 00:31:27,040
But the taste is not the same.

643
00:31:27,120 --> 00:31:30,560
I'd visit a coffee shop every day
and spend Rs. 250 to 300.

644
00:31:30,640 --> 00:31:32,000
So, I wanted to learn that.

645
00:31:32,360 --> 00:31:35,840
So, I saved up, went to Rome
and underwent a barista course.

646
00:31:35,920 --> 00:31:36,720
- No way!
- Wow.

647
00:31:36,800 --> 00:31:37,800
- Yes.
- Wow!

648
00:31:37,920 --> 00:31:39,680
After going there, I realised

649
00:31:39,760 --> 00:31:43,600
that people hold Indian coffee
in such high regard

650
00:31:43,680 --> 00:31:47,640
whereas we drink low-quality
instant coffee at home.

651
00:31:47,800 --> 00:31:50,200
When I came back,
I realised there was a gap.

652
00:31:50,400 --> 00:31:54,000
So, we set up a coffee kiosk
in the same building.

653
00:31:54,080 --> 00:31:55,840
This was back in 2019.

654
00:31:55,920 --> 00:31:57,040
Same building as in?

655
00:31:57,120 --> 00:31:58,360
- Where you lived?
- Where I used to work.

656
00:31:58,440 --> 00:32:01,160
So, you set up a shop
in your office building

657
00:32:01,240 --> 00:32:02,160
- while you were working.
- Yes.

658
00:32:02,280 --> 00:32:03,280
After I quit.

659
00:32:03,360 --> 00:32:04,480
- Okay, after you quit.
- Yeah!

660
00:32:04,600 --> 00:32:07,320
- As Zenma?
- No! It was Sixteen Grams.

661
00:32:07,400 --> 00:32:10,800
- Okay! - Karan was in college
back then and he joined me then.

662
00:32:10,880 --> 00:32:13,560
And that's when we
started our first coffee shop.

663
00:32:13,680 --> 00:32:17,000
We also started the second
coffee shop that very year.

664
00:32:17,080 --> 00:32:20,680
But due to COVID, we had to
shut down both the coffee shops.

665
00:32:20,800 --> 00:32:22,720
Because ours was
a bootstrapped business.

666
00:32:22,800 --> 00:32:26,000
To survive the brand, we shifted
that business online

667
00:32:26,080 --> 00:32:27,960
and we were selling
beans and ground coffee.

668
00:32:28,400 --> 00:32:31,440
As the impact of COVID lessened,
we gathered a lot of feedback.

669
00:32:31,520 --> 00:32:33,560
People have stopped using
their machines

670
00:32:33,640 --> 00:32:35,040
because it is too much effort.

671
00:32:35,120 --> 00:32:38,080
We were unable to explain
to the new customers

672
00:32:38,200 --> 00:32:41,480
that they had to dissolve it, buy
a machine, and then buy the coffee.

673
00:32:41,560 --> 00:32:44,120
After getting the feedback,
we realised

674
00:32:44,440 --> 00:32:46,680
that fresh coffee might not grow
right now in India.

675
00:32:46,760 --> 00:32:49,880
So, how do we get that
espresso coffee at home?

676
00:32:50,000 --> 00:32:52,960
Because India's palate is evolving
due to coffee shops.

677
00:32:53,040 --> 00:32:56,000
75% of people
drink coffee with milk.

678
00:32:56,120 --> 00:32:57,400
Cappuccino, Latte

679
00:32:57,480 --> 00:32:59,080
and even Americano,
which is an espresso.

680
00:32:59,160 --> 00:33:02,320
How will you bring
that espresso home?

681
00:33:02,600 --> 00:33:05,840
Even if we make a convenient
machine, that is also a problem.

682
00:33:05,920 --> 00:33:08,040
- No one will pay Rs. 15,000
for a machine. - It's a barrier.

683
00:33:08,160 --> 00:33:09,840
So, when did we start Zenma?

684
00:33:09,920 --> 00:33:13,000
September 2023 is when we launched
the product.

685
00:33:18,400 --> 00:33:20,920
Cometeer is a brand in the US.

686
00:33:21,040 --> 00:33:23,480
They are not freezing espresso,
they are just making a concentrate.

687
00:33:23,560 --> 00:33:25,640
That is where we started testing.

688
00:33:25,760 --> 00:33:27,880
Your recipe is different,
but the form factor is the same.

689
00:33:27,960 --> 00:33:29,000
The form factor is the same.

690
00:33:29,080 --> 00:33:30,520
How is that company doing?

691
00:33:30,720 --> 00:33:33,120
They've raised 120 million dollars.

692
00:33:33,200 --> 00:33:36,360
I think their revenue has crossed
100 million dollars.

693
00:33:36,560 --> 00:33:39,360
But their management was fired
six months ago.

694
00:33:39,480 --> 00:33:42,160
Why? Because they couldn't
make money or...

695
00:33:42,240 --> 00:33:44,360
You had to purchase a subscription.

696
00:33:44,480 --> 00:33:46,080
- All right!
- You had to buy 5-6 boxes.

697
00:33:46,160 --> 00:33:48,360
That is when you could consume
their coffee.

698
00:33:48,520 --> 00:33:50,920
It has many variants,

699
00:33:51,000 --> 00:33:54,280
which I believe became difficult
to explain to the customer.

700
00:33:54,360 --> 00:33:57,400
It can't be that. Karan, I disagree.

701
00:33:57,520 --> 00:33:59,760
There is a coffee machine
in every household in the US.

702
00:33:59,840 --> 00:34:02,160
That's why the CAC to
LTV ratio didn't align there.

703
00:34:04,360 --> 00:34:07,000
We would like to get
into quick commerce.

704
00:34:07,080 --> 00:34:08,920
Here, your competition
is instant coffee.

705
00:34:09,320 --> 00:34:11,080
The palate of people is evolving.

706
00:34:11,160 --> 00:34:12,880
There are so many
coffee shops opening up.

707
00:34:12,960 --> 00:34:17,400
If you visit coffee shops, you'll
see that cold coffee sells the most,

708
00:34:17,480 --> 00:34:18,760
which is not really coffee.

709
00:34:18,840 --> 00:34:20,680
- It has a lot of sugar.
- It's a dessert.

710
00:34:20,760 --> 00:34:22,200
The Indian market,

711
00:34:22,320 --> 00:34:24,360
as you say, is 80% home consumption.

712
00:34:24,440 --> 00:34:28,040
- But probably 99% of that 80%
is instant coffee. - Absolutely!

713
00:34:28,160 --> 00:34:30,480
How will you create this market?

714
00:34:30,880 --> 00:34:32,960
The base of coffee shops
is espresso.

715
00:34:33,080 --> 00:34:37,120
And nobody has gotten espresso
conveniently to anybody's home yet.

716
00:34:37,880 --> 00:34:40,960
In our country, we are evolving

717
00:34:41,120 --> 00:34:43,200
- from traditional coffee
to proper coffee. - Correct.

718
00:34:43,280 --> 00:34:45,360
And you are...

719
00:34:45,440 --> 00:34:47,120
It gets difficult to pronounce.

720
00:34:47,200 --> 00:34:48,960
At home...

721
00:34:49,040 --> 00:34:52,680
Honestly, if you hadn't
told me what you were selling,

722
00:34:52,760 --> 00:34:56,080
- I would've assumed it's cream.
- Ice cream brand.

723
00:34:56,760 --> 00:35:00,440
Zenma's adoption is easy
because it's a convenient product.

724
00:35:00,640 --> 00:35:02,320
But the point is very valid, Sheena.

725
00:35:02,440 --> 00:35:04,560
What have you mentioned
'frozen crema'?

726
00:35:04,720 --> 00:35:07,160
- Your process is frozen crema,
right? - Hmm!

727
00:35:07,240 --> 00:35:10,120
That is very different from
what the consumer perceives.

728
00:35:10,200 --> 00:35:11,360
I was also confused.

729
00:35:11,440 --> 00:35:14,600
If it's 'frozen' should I have
it with ice and not hot water?

730
00:35:14,680 --> 00:35:18,240
- So... - Why are you making your
process your positioning?

731
00:35:18,320 --> 00:35:20,400
That's good feedback.
We will consider it.

732
00:35:20,520 --> 00:35:22,120
- Espresso! You should just write
Zenma Espresso Shots. - Yeah!

733
00:35:22,200 --> 00:35:23,240
- Frozen Espresso.
- Yeah!

734
00:35:23,360 --> 00:35:25,120
- Get rid of 'frozen'.
- Yes! Espresso shots!

735
00:35:25,240 --> 00:35:26,520
- Fair!
- You guys are smart.

736
00:35:26,600 --> 00:35:28,160
Didn't you consider this earlier,

737
00:35:28,280 --> 00:35:30,400
or were you waiting
for Anupam's feedback?

738
00:35:30,480 --> 00:35:32,880
We went with 'Frozen crema'

739
00:35:32,960 --> 00:35:36,720
because the top layer on espresso,
as Peyush mentioned,

740
00:35:36,840 --> 00:35:37,920
is called 'crema'.

741
00:35:38,040 --> 00:35:39,680
- So, Zenma...
- But not everyone knows that.

742
00:35:39,760 --> 00:35:42,960
- That's... - It raises curiosity,
they might ask us questions.

743
00:35:43,040 --> 00:35:46,040
- On events... - It can raise
curiosity and confusion.

744
00:35:46,480 --> 00:35:48,040
People came up to ask us.

745
00:35:48,120 --> 00:35:50,280
We had to explain how we came up
with the name Zenma.

746
00:35:50,360 --> 00:35:52,360
Because Zenma is also derived

747
00:35:52,480 --> 00:35:55,240
from 'Zen' in frozen
and 'Ma' from Crema.

748
00:35:55,360 --> 00:35:58,080
- Say it as it is, why beat
around the bush? - Zenma!

749
00:35:58,280 --> 00:36:01,080
- The first time...
- Just be direct.

750
00:36:01,440 --> 00:36:03,720
Karan, can you show us
the packaging?

751
00:36:04,000 --> 00:36:04,880
Yes!

752
00:36:05,840 --> 00:36:07,880
[music playing]

753
00:36:09,080 --> 00:36:11,320
- It will spoil by the time we
take it to Delhi. - Thank you!

754
00:36:11,440 --> 00:36:13,680
- We will ship frozen coffee to you.
- Take this.

755
00:36:17,600 --> 00:36:20,640
Oh, this has to be stored
in a refrigerator.

756
00:36:20,720 --> 00:36:21,720
- Freezer!
- Freezer.

757
00:36:21,800 --> 00:36:24,160
- I didn't realise that.
- You are slow.

758
00:36:24,240 --> 00:36:27,320
It has 'frozen crema'.
The story is over...

759
00:36:27,400 --> 00:36:30,680
Despite drinking so much coffee,
you are not awake.

760
00:36:30,760 --> 00:36:32,840
The story is over and he is asking
whose son Karan is.

761
00:36:33,960 --> 00:36:36,880
Your normal consumer
will be like me.

762
00:36:37,000 --> 00:36:38,840
- They've evolved a lot.
- Not true.

763
00:36:38,920 --> 00:36:41,080
- We will face this problem.
- You were sleeping.

764
00:36:41,320 --> 00:36:44,680
You can microwave it
for 30 to 40 seconds

765
00:36:44,840 --> 00:36:47,480
and you will get a melted pod and
you can mix it with milk or water

766
00:36:47,560 --> 00:36:49,640
- and make any coffee. - Won't
the microwave emit radiation?

767
00:36:49,720 --> 00:36:52,320
That is the microwave's issue,
what can they do?

768
00:36:52,400 --> 00:36:54,400
[laughing]

769
00:36:54,880 --> 00:36:57,760
If the power goes out and
the freezer stops, this will spoil.

770
00:36:57,840 --> 00:36:59,600
If the temperature of the
refrigerator is 3-4 degrees,

771
00:37:12,600 --> 00:37:14,400
add hot water,
and drink it at work.

772
00:37:14,480 --> 00:37:17,680
Even if they take it as it is,
it will melt as they reach.

773
00:37:17,760 --> 00:37:21,320
The barrier I see in your category

774
00:37:21,480 --> 00:37:24,160
is logistics and storage.

775
00:37:24,680 --> 00:37:27,160
The quick commerce
ecosystem in India

776
00:37:27,240 --> 00:37:29,760
is not yet guaranteed to
maintain the same temperature.

777
00:37:29,840 --> 00:37:32,480
You know that ice cream will melt.

778
00:37:32,600 --> 00:37:35,560
- People are not that conscious.
But in this... - Good point.

779
00:37:35,640 --> 00:37:37,480
- Suppose I went to a grocery shop.
- Yeah.

780
00:37:37,600 --> 00:37:38,960
This will be in the freezer.

781
00:37:39,040 --> 00:37:42,800
By the time I go home, there
are chances of this getting spoilt.

782
00:37:42,880 --> 00:37:46,360
How do you ensure that this
is always in the best shape?

783
00:37:46,960 --> 00:37:49,480
The challenge of
the frozen supply chain

784
00:37:49,560 --> 00:37:51,160
is more difficult for small brands.

785
00:37:51,240 --> 00:37:53,840
But once you scale up,
your supply chain builds up.

786
00:37:53,920 --> 00:37:55,720
I will call this a challenge
and not a barrier.

787
00:37:55,800 --> 00:37:58,080
The challenge is that we won't be
able to deliver in every small city.

788
00:37:58,160 --> 00:38:00,640
But we believe that our market
is tier 1 cities

789
00:38:00,720 --> 00:38:02,320
where the number of coffee shops
is growing.

790
00:38:02,480 --> 00:38:05,560
Currently, we store in
every central warehouse

791
00:38:05,640 --> 00:38:07,360
and then it caters
to the entire city.

792
00:38:08,600 --> 00:38:10,720
- Total market size?
- Rs. 9,000 crores.

793
00:38:10,800 --> 00:38:12,720
How big is at-home coffee?

794
00:38:12,800 --> 00:38:14,840
Rs. 6,000 crores is instant coffee.

795
00:38:29,440 --> 00:38:31,640
One shot costs Rs. 60.

796
00:38:31,760 --> 00:38:35,920
How much does one cup of
Bru and Nescafé's coffee cost?

797
00:38:36,360 --> 00:38:38,840
Nescafé Gold will cost you Rs. 18.

798
00:38:38,920 --> 00:38:41,640
Davidoff will cost around Rs. 22.

799
00:38:41,760 --> 00:38:42,600
And this is for Rs. 50.

800
00:38:42,680 --> 00:38:43,600
This is for Rs. 60.

801
00:39:03,840 --> 00:39:06,640
I think, if we look at 7 years,

802
00:39:06,760 --> 00:39:09,440
- people have been investing in
many coffee shops. - A lot!

803
00:39:09,520 --> 00:39:13,440
I refuse to believe that we'll drink
the coffee with the same taste...

804
00:39:13,520 --> 00:39:15,240
I think the problem is this.

805
00:39:15,760 --> 00:39:19,840
The market that buys this product
at this price point

806
00:39:20,160 --> 00:39:23,480
can afford a coffee machine
with a pod for Rs. 15,000.

807
00:39:24,280 --> 00:39:27,720
And the instant coffee market
that's for Rs. 2,000 crores,

808
00:39:27,800 --> 00:39:30,200
that costs us Rs. 20 per cup.

809
00:39:30,280 --> 00:39:31,840
So, somewhere there is a gap.

810
00:39:31,960 --> 00:39:33,880
You can't replace this.

811
00:39:33,960 --> 00:39:36,240
It applied to me too. For example,
I am an avid coffee drinker.

812
00:39:36,800 --> 00:39:38,880
And I use the Nespresso machine.

813
00:39:39,000 --> 00:39:41,440
Will I use this?

814
00:39:41,520 --> 00:39:43,240
As a novelty, most certainly.

815
00:39:43,320 --> 00:39:45,160
But as a habit, very doubtful.

816
00:39:45,680 --> 00:39:48,080
But I feel the majority
still thinks twice

817
00:39:48,160 --> 00:39:50,120
before buying a machine
worth Rs. 15,000.

818
00:39:50,200 --> 00:39:51,680
Buddy, I don't agree with you.

819
00:39:51,760 --> 00:39:55,280
Look, you are talking
about Rs. 15,000

820
00:39:55,360 --> 00:39:56,680
as if it's a huge sum.

821
00:39:56,760 --> 00:39:59,160
The machine now
costs around Rs. 6,000.

822
00:39:59,720 --> 00:40:02,480
People don't think
that these things are expensive.

823
00:40:02,560 --> 00:40:05,840
If they are value-conscious, then
they will use instant coffee.

824
00:40:05,920 --> 00:40:08,280
Because it costs around Rs. 20.

825
00:40:08,600 --> 00:40:11,600
But here, we are
entering no man's land.

826
00:40:11,680 --> 00:40:13,560
We've heard from a lot
of our customers

827
00:40:13,640 --> 00:40:15,640
who've moved from Nespresso
to Zenma.

828
00:40:15,720 --> 00:40:18,240
Why? Because they get a single shot
from Nespresso.

829
00:40:18,360 --> 00:40:20,720
And they want some strength
from caffeine coffee.

830
00:40:20,800 --> 00:40:22,360
But that is not your proposition.

831
00:40:23,000 --> 00:40:25,760
- Your proposition is frozen coffee
at your convenience. - Right!

832
00:40:25,840 --> 00:40:27,960
That's the disconnect I am having.

833
00:40:28,320 --> 00:40:29,920
Tell us the numbers.

834
00:40:30,000 --> 00:40:33,520
In the last FY, our revenue
was Rs. 5 lakhs,

835
00:40:33,680 --> 00:40:34,640
- from September to March.
- That's the partial year.

836
00:40:34,720 --> 00:40:38,080
In April, it was Rs. 1.5 lakhs.

837
00:40:38,160 --> 00:40:42,360
- And then, in May, our revenue
was around Rs. 3.5 lakhs. - Good.

838
00:40:42,440 --> 00:40:43,680
This is only D2C.

839
00:40:43,800 --> 00:40:46,680
We were speaking with a tea chain
for B2B.

840
00:40:46,800 --> 00:40:48,760
That's fine. Let's get to
September. How much was it?

841
00:40:48,840 --> 00:40:51,800
In September, our revenue
was Rs. 8 lakhs.

842
00:40:51,920 --> 00:40:53,560
How much B2B and how much...

843
00:40:53,680 --> 00:40:57,240
- 2% is B2B, 10% is quick commerce.
- Quick commerce.

844
00:40:57,320 --> 00:40:58,840
And 88% is D2C.

845
00:40:58,920 --> 00:41:00,560
What is the unit economics?

846
00:41:00,680 --> 00:41:03,280
- Our box retails for Rs. 599.
- Okay!

847
00:41:03,400 --> 00:41:05,320
Rs. 91 is the tax.

848
00:41:05,440 --> 00:41:08,320
Rs. 56 is a discount per box.

849
00:41:08,400 --> 00:41:09,480
We have around Rs. 450.

850
00:41:09,560 --> 00:41:11,080
- We sold it for Rs. 452.
- Okay!

851
00:41:11,160 --> 00:41:14,120
In September, one box
was for Rs. 275.

852
00:41:14,200 --> 00:41:16,320
- Cost of Goods sold, Rs. 275.
- COGS.

853
00:41:16,480 --> 00:41:19,760
- Rs. 66 was our shipping.
- Okay!

854
00:41:19,840 --> 00:41:23,360
- And roughly a transaction charge
of Rs. 12. - And marketing?

855
00:41:23,520 --> 00:41:25,720
Around Rs. 4.5 lakhs.
So, roughly 50%.

856
00:41:25,840 --> 00:41:27,880
- 50%.
- Percent of the net revenue.

857
00:41:27,960 --> 00:41:30,080
Tell me about the unit economics.

858
00:41:30,200 --> 00:41:32,240
Rs. 99 for the box.

859
00:41:32,720 --> 00:41:34,600
- Approximately Rs. 200.
Let me tell you! - Rs. 200.

860
00:41:34,720 --> 00:41:35,560
Rs. 200 for marketing.

861
00:41:35,720 --> 00:41:37,840
- You are losing money behind
every box. - Right!

862
00:41:44,640 --> 00:41:46,640
Let's finish unit economics first.

863
00:41:53,520 --> 00:41:56,440
Are you trying to solve a problem
that does not exist?

864
00:41:57,320 --> 00:41:59,320
Because Aman likes
what he is drinking.

865
00:41:59,720 --> 00:42:01,120
We like what we are drinking.

866
00:42:01,200 --> 00:42:03,360
For those who are
exposed to coffee shops

867
00:42:03,480 --> 00:42:06,160
and keep frequenting them,
this is a problem for them.

868
00:42:06,240 --> 00:42:09,120
He frequents the coffee shop
because he likes to do so.

869
00:42:09,240 --> 00:42:10,640
Nowadays, coffee shops like

870
00:42:10,760 --> 00:42:13,160
abCoffee and SLAY charge
Rs. 80 for a coffee.

871
00:42:13,520 --> 00:42:14,880
But they want to drink it
at home too.

872
00:42:14,960 --> 00:42:17,120
80% of people are consuming
coffee at home.

873
00:42:17,200 --> 00:42:19,640
- But is this a problem at home?
- It's evolving.

874
00:42:19,720 --> 00:42:21,320
- That is what we think.
- Okay, I think

875
00:42:21,400 --> 00:42:22,920
- there is a disagreement.
- This is something to think about.

876
00:42:23,320 --> 00:42:27,320
Hold on! Your cash that you
invested in Sixteen Grams

877
00:42:27,400 --> 00:42:30,360
and Zenma, is it your savings?

878
00:42:30,720 --> 00:42:32,520
- We raised a funding in June.
- Wow!

879
00:42:32,600 --> 00:42:35,240
- How much?
- Rs. 1.25 crores for 15%.

880
00:42:35,320 --> 00:42:37,080
- Who did you raise it from?
- 100X.

881
00:42:37,240 --> 00:42:40,040
And the full investment for
Sixteen Gram was your own.

882
00:42:40,160 --> 00:42:43,200
- Roughly Rs. 13 lakhs in CapEx
had to be invested. - Rs. 13 lakhs.

883
00:42:43,280 --> 00:42:46,000
And Rs. 8 lakhs for marketing
and branding.

884
00:42:50,200 --> 00:42:52,560
Accumulated loss is Rs. 51 lakhs.

885
00:42:58,600 --> 00:43:00,360
Does your family have the
capacity to invest so much?

886
00:43:00,440 --> 00:43:02,200
We have investors
now and not family.

887
00:43:02,280 --> 00:43:04,320
- There is no... - The investor
invested only Rs. 1 crore.

888
00:43:04,440 --> 00:43:06,560
That will be exhausted
within 10 months.

889
00:43:07,440 --> 00:43:08,600
About the Rs. 10 lakhs burn,

890
00:43:08,680 --> 00:43:12,240
we've already reduced it in October
to Rs. 5-Rs.6 lakhs.

891
00:43:12,320 --> 00:43:14,480
And the Rs. 50 lakhs
write-off you took,

892
00:43:14,560 --> 00:43:17,480
was it from your parents
or your own savings?

893
00:43:18,400 --> 00:43:22,680
Write-Off! A write-off happens
when you make an investment

894
00:43:22,800 --> 00:43:24,120
that doesn't yield any benefit.

895
00:43:24,360 --> 00:43:26,680
As the term suggests, 'write-off'

896
00:43:26,760 --> 00:43:28,920
means to completely
nullify its value.

897
00:43:29,160 --> 00:43:31,760
So, whatever investment you made is
now considered to have zero value.

898
00:43:31,880 --> 00:43:34,440
This is called writing off
your investment.

899
00:43:36,080 --> 00:43:38,800
- I took from my parents...
- I used some of my savings.

900
00:43:38,880 --> 00:43:40,720
Do they have no issue?

901
00:43:40,800 --> 00:43:42,760
Our parents are very supportive,

902
00:43:42,880 --> 00:43:44,680
but eventually, they want
the business to work.

903
00:43:44,760 --> 00:43:47,040
We were bothered...

904
00:43:47,120 --> 00:43:48,560
Do they have equity?

905
00:43:48,800 --> 00:43:50,760
- They don't have equity in Zenma.
- Okay!

906
00:43:52,840 --> 00:43:55,880
Karan and Sheena, you
are catering to a market

907
00:43:55,960 --> 00:43:57,960
that you don't know
is a market or not.

908
00:43:58,520 --> 00:44:00,440
The consumer is very small.

909
00:44:00,520 --> 00:44:02,320
A lot of people are after it.

910
00:44:02,480 --> 00:44:05,520
I don't know which brand
will survive and which won't.

911
00:44:06,240 --> 00:44:09,080
So, as an investor, I think it's
very risky for me.

912
00:44:09,200 --> 00:44:11,680
But as a consumer,
I will be your consumer.

913
00:44:12,080 --> 00:44:13,840
Thank you!
Unfortunately, I am out.

914
00:44:13,920 --> 00:44:15,040
- Thank you, Aman.
- Thank you.

915
00:44:15,880 --> 00:44:18,320
You are persistent and
your branding is good.

916
00:44:18,400 --> 00:44:21,200
You've done a course in coffee,
which gives you an edge.

917
00:44:21,320 --> 00:44:24,160
The issue is that you need to have
a better strategy.

918
00:44:24,520 --> 00:44:28,840
You have to know your consumer.
Why do people drink coffee

919
00:44:29,080 --> 00:44:30,840
and what problem are you solving?

920
00:44:31,480 --> 00:44:33,680
The biggest USP is speed.

921
00:44:34,160 --> 00:44:37,840
Right! You can actually open
a kiosk model that you had started.

922
00:44:38,200 --> 00:44:42,040
Where a cup of Rs. 100
can be given to you in 2 minutes.

923
00:44:42,720 --> 00:44:45,000
Do you know how Nespresso grew?

924
00:44:45,120 --> 00:44:48,480
Because they have these fancy stores
where they do trials.

925
00:44:48,600 --> 00:44:50,400
When you go to luxury hotels,

926
00:44:50,480 --> 00:44:52,600
there are coffee machines which
people don't know how to use.

927
00:44:52,640 --> 00:44:54,720
I sincerely think

928
00:44:54,920 --> 00:44:57,560
you should understand
what your USP is.

929
00:44:58,240 --> 00:45:01,640
If you unlock that, you
will be able to make this big.

930
00:45:02,120 --> 00:45:04,480
Currently, I am out.

931
00:45:04,560 --> 00:45:07,280
Because I think you need to
figure that out. Best of luck.

932
00:45:07,440 --> 00:45:08,600
Thank you, Peyush.

933
00:45:08,960 --> 00:45:10,960
In my experience, if

934
00:45:11,080 --> 00:45:14,400
someone is spending more than
15-20% on performance marketing

935
00:45:14,520 --> 00:45:16,400
before reaching
Rs. 1 crore per month,

936
00:45:16,480 --> 00:45:19,160
it indicates a
product-market fit issue.

937
00:45:19,680 --> 00:45:23,840
Clearly, a very specific
niche has emerged in between.

938
00:45:23,920 --> 00:45:26,120
My suggestion is

939
00:45:26,400 --> 00:45:29,680
to run this as a slow-burn,
niche, profitable business

940
00:45:29,800 --> 00:45:31,200
that can grow

941
00:45:31,280 --> 00:45:34,480
to Rs. 100 crores over time,
which is a great business.

942
00:45:34,600 --> 00:45:37,720
But don't get on the investor-driven
treadmill of pressure.

943
00:45:37,800 --> 00:45:39,760
As an investor, it is
not investable now.

944
00:45:39,920 --> 00:45:40,960
For that reason, I am out.

945
00:45:41,440 --> 00:45:42,800
- Thank you!
- Thank you, Vineeta.

946
00:45:43,160 --> 00:45:47,080
Look, what I love is
that you found innovation

947
00:45:47,320 --> 00:45:50,840
in a market that's so competitive.

948
00:45:51,800 --> 00:45:53,640
Something that gave you
an entry point.

949
00:45:53,840 --> 00:45:56,160
But I think that
is the extent of it.

950
00:45:56,680 --> 00:45:59,080
You fell in love with innovation.

951
00:45:59,200 --> 00:46:01,720
So, even the way you've
positioned it, 'frozen crema'

952
00:46:01,800 --> 00:46:03,680
doesn't put consumer thinking first.

953
00:46:03,840 --> 00:46:07,480
I don't think
this will work in India.

954
00:46:07,600 --> 00:46:10,960
I can see that from your
cost structure.

955
00:46:11,120 --> 00:46:12,520
I am out today. Good luck!

956
00:46:12,600 --> 00:46:13,520
- Thank you, Anupam.
- Thank you, Anupam.

957
00:46:13,600 --> 00:46:16,360
Karan and Sheena, I generally
use this phrase.

958
00:46:16,440 --> 00:46:17,520
Laughably small TAM.

959
00:46:17,640 --> 00:46:20,160
Investors ask for a big TAM.

960
00:46:20,280 --> 00:46:22,360
Rs. 10,000 crores!
Rs. 1 lakh crores.

961
00:46:23,400 --> 00:46:25,720
I see it completely differently.

962
00:46:25,800 --> 00:46:28,200
Whether this is just a
tiny sliver of the market.

963
00:46:28,320 --> 00:46:32,600
Because if you
dominate a tiny sliver

964
00:46:32,680 --> 00:46:34,720
then the customer
gives you the opportunity

965
00:46:34,800 --> 00:46:36,640
- to expand into more categories.
- Yeah!

966
00:46:36,960 --> 00:46:39,080
This is a laughably small TAM.

967
00:46:39,160 --> 00:46:41,840
However, the customer
love is not strong.

968
00:46:42,920 --> 00:46:46,920
I believe you should explore
the B2B angle.

969
00:46:47,120 --> 00:46:49,280
There are restaurants and hotels

970
00:46:49,360 --> 00:46:52,160
that serve bad coffee from machines,

971
00:46:52,360 --> 00:46:55,320
but they also don't want
to invest in an expensive

972
00:46:55,400 --> 00:46:57,240
barista, machine, etc.

973
00:46:57,320 --> 00:46:59,000
- This could be a middle path
for them. - Hmm!

974
00:46:59,080 --> 00:47:02,800
You haven't given that a try,
I can't take a bet on it.

975
00:47:02,880 --> 00:47:04,840
But for these reasons,
today I am out.

976
00:47:06,680 --> 00:47:08,920
- Thank you, Karan and Sheena.
You guys were amazing. - Thanks.

977
00:47:18,240 --> 00:47:19,880
- This is a format creation.
- Correct!

978
00:47:20,000 --> 00:47:21,400
It has a form factor.

979
00:47:21,480 --> 00:47:24,920
In an existing category that is
contemporary and growing rapidly.

980
00:47:25,000 --> 00:47:28,080
As a normal Indian consumer,
it will take time to understand.

981
00:47:28,160 --> 00:47:30,680
If not for their pitch, I wouldn't
know about 'frozen crema'.

982
00:47:30,760 --> 00:47:31,600
I think it's a category.

983
00:47:31,720 --> 00:47:35,160
I didn't really know
what they were making.

984
00:47:35,840 --> 00:47:37,840
When instant coffee
was introduced,

985
00:47:37,960 --> 00:47:39,040
it took time for people
to understand it.

986
00:47:39,280 --> 00:47:42,240
Without it, they would have
been drinking something else.

987
00:47:42,320 --> 00:47:45,080
So, as the frozen category is
gradually adopted

988
00:47:45,160 --> 00:47:49,120
and understood,
all challenges will be addressed.

989
00:47:49,400 --> 00:47:51,360
- Hello, Sheena! Hello, Karan!
- Hi!

990
00:47:51,440 --> 00:47:54,200
How was your experience
pitching your business?

991
00:47:54,320 --> 00:47:57,480
It was interesting. It would have
been better if we had closed a deal.

992
00:47:57,600 --> 00:47:59,600
That's fine. You'll make the money.
It's fine.

993
00:47:59,720 --> 00:48:01,160
We are from Delhi NCR.
We'll do well.

994
00:48:02,120 --> 00:48:03,920
Even when we have less,
we pretend to have more.

995
00:48:04,040 --> 00:48:05,400
- That's true.
- It's fine.

996
00:48:10,560 --> 00:48:12,200
I go blank.

997
00:48:12,280 --> 00:48:15,080
Didn't you feel like taking a
sip of coffee during the pitch?

998
00:48:15,200 --> 00:48:16,800
- 'I want my Zenma break!'
- Yeah!

999
00:48:16,880 --> 00:48:18,080
- You did?
- We felt so after the pitch.

1000
00:48:18,160 --> 00:48:19,520
Pitch...

1001
00:48:19,720 --> 00:48:20,520
No, you will have it.

1002
00:48:20,600 --> 00:48:23,360
I was thinking of ordering
something to have with coffee.

1003
00:48:23,440 --> 00:48:25,000
So, I opened Swiggy Instamart.

1004
00:48:25,080 --> 00:48:26,720
And I've ordered croissants,

1005
00:48:26,800 --> 00:48:30,400
cookies and rusk. And look,
they delivered it in 10 minutes.

1006
00:48:31,120 --> 00:48:33,480
- Thank you so much!
This is for you. - Thank you!

1007
00:48:33,680 --> 00:48:38,080
- Yes! Do you prefer some snacks
with coffee? - Biscuits.

1008
00:48:38,280 --> 00:48:41,320
Biscuits! Okay. I'll
order that from Swiggy Instamart.

1009
00:48:41,400 --> 00:48:42,880
- It will be here in 10 minutes.
- Perfect.

1010
00:48:42,960 --> 00:48:45,480
It's not just us who will keep
ordering; you can order too.

1011
00:48:45,560 --> 00:48:48,360
It will be delivered in 10 minutes.
Order now. Now!

1012
00:48:48,720 --> 00:48:50,640
Order! I am right here.

1013
00:48:50,720 --> 00:48:52,440
Seriously! What's with the typo?

1014
00:48:52,600 --> 00:48:53,920
That will be my first question.

1015
00:48:54,000 --> 00:48:56,240
It's not a typo. It's deliberate.

1016
00:48:56,440 --> 00:48:57,960
How can you have a brand name...

1017
00:48:58,080 --> 00:49:00,920
There will be a discussion
on the logo and brand.

1018
00:49:01,120 --> 00:49:02,600
Elevated Infant?

1019
00:49:03,440 --> 00:49:05,400
[music playing]

1020
00:49:19,320 --> 00:49:20,640
Hi!

1021
00:49:29,040 --> 00:49:30,880
Wow! She looks busy.

1022
00:49:31,600 --> 00:49:33,960
Hey, she is back
on the mobile phone.

1023
00:49:36,400 --> 00:49:39,320
Where can I purchase high-quality,
expensive toys on a weekly basis?

1024
00:49:39,400 --> 00:49:41,360
Also, we don't have
storage space left.

1025
00:49:41,480 --> 00:49:44,400
So, I gave her the mobile phone.
Do you have any other solution?

1026
00:49:45,000 --> 00:49:47,040
Sharks, does this happen to you?

1027
00:49:47,120 --> 00:49:48,400
It does!

1028
00:49:48,480 --> 00:49:52,080
All of us know how quickly
children get bored.

1029
00:49:52,440 --> 00:49:53,920
One of our surveys found

1030
00:49:54,000 --> 00:49:56,640
that a child loses interest
in a toy within 16 days.

1031
00:49:56,720 --> 00:49:59,040
My daughter gets bored in 4 days.

1032
00:49:59,280 --> 00:50:01,720
Have you come up with a way

1033
00:50:01,840 --> 00:50:04,600
to give your children new toys
every week

1034
00:50:04,680 --> 00:50:05,920
without cluttering your home,

1035
00:50:06,000 --> 00:50:08,280
emptying the wallet
or leaving the house?

1036
00:50:18,400 --> 00:50:21,440
EleFant is India's first
mobile app-based toy library.

1037
00:50:21,520 --> 00:50:22,680
Where you can become a member

1038
00:50:22,800 --> 00:50:24,640
and buy toys and
books for your children.

1039
00:50:24,720 --> 00:50:25,800
And when they are done with it,

1040
00:50:26,240 --> 00:50:27,760
you can return it in exchange
for something else.

1041
00:50:29,040 --> 00:50:30,920
This is a modern-day
toy and book library,

1042
00:50:31,000 --> 00:50:34,840
where you get more than 600 options
from more than 70 top brands.

1043
00:50:35,640 --> 00:50:38,560
All our toys are expert-curated,

1044
00:50:38,640 --> 00:50:40,880
top-quality, and completely safe.

1045
00:50:42,000 --> 00:50:44,040
We operate through
68 library centres

1046
00:50:44,160 --> 00:50:47,040
in more than 17 cities in India.

1047
00:50:47,120 --> 00:50:50,400
We deliver the toys
to customers in a day.

1048
00:50:51,360 --> 00:50:53,720
We want to bring this
solution to every home in India.

1049
00:50:53,800 --> 00:50:57,720
For this, our ask is Rs. 60 lakhs
for 1% equity.

1050
00:51:06,040 --> 00:51:07,760
[music playing]

1051
00:51:36,600 --> 00:51:39,560
So, Sharks! Would you like
to join The EleFant

1052
00:51:39,640 --> 00:51:42,080
and make parents and children happy?

1053
00:51:42,160 --> 00:51:43,440
[laughing]

1054
00:51:51,880 --> 00:51:54,080
All right, guys!
Sourabh and Shristi,

1055
00:51:54,480 --> 00:51:56,800
welcome to Shark Tank India
Season 4.

1056
00:51:57,000 --> 00:51:58,520
- Thank you!
- Before I say something

1057
00:51:58,600 --> 00:52:00,040
and Vineeta interrupts me.

1058
00:52:00,120 --> 00:52:01,160
[laughing]

1059
00:52:01,240 --> 00:52:04,600
I will ask you this for her sake
because she is growing impatient.

1060
00:52:04,720 --> 00:52:05,840
What's with the F word?

1061
00:52:06,320 --> 00:52:07,440
I don't know!

1062
00:52:08,560 --> 00:52:11,040
This comes from 'Elementary'
and 'Infant'.

1063
00:52:11,240 --> 00:52:14,920
Toys are a part of a child's life
from infancy to elementary school.

1064
00:52:15,000 --> 00:52:16,680
That's why it's The EleFant!

1065
00:52:16,800 --> 00:52:20,680
The elephant is the most intelligent
and humble animal.

1066
00:52:20,760 --> 00:52:22,480
Children love elephants.

1067
00:52:22,560 --> 00:52:24,600
Even parents love elephants.

1068
00:52:24,680 --> 00:52:26,760
Where are the Sharks
on the intelligence scale?

1069
00:52:26,840 --> 00:52:28,400
[laughing]

1070
00:52:30,400 --> 00:52:32,280
Are you a family?

1071
00:52:32,400 --> 00:52:34,200
You didn't share that,
but I am assuming.

1072
00:52:34,320 --> 00:52:36,040
Yes! Ira is not our daughter.

1073
00:52:36,160 --> 00:52:37,920
Ira is our best friend's daughter.

1074
00:52:38,000 --> 00:52:39,680
Our daughter Ahana is 3.

1075
00:52:39,760 --> 00:52:42,760
- If she were here, you would be
here and she would be there. - Oh!

1076
00:52:42,880 --> 00:52:45,080
- And how old is Ira?
- Ira is 6.

1077
00:52:45,160 --> 00:52:47,640
How did you come up with this idea?

1078
00:52:47,720 --> 00:52:52,920
I mean, sharing exists in every
segment this is no different.

1079
00:52:53,000 --> 00:52:54,200
But how did you start it?

1080
00:52:54,280 --> 00:52:57,080
Our daughter Ahana is the reason
why we started this.

1081
00:52:57,560 --> 00:53:00,160
We always wanted to be good parents.

1082
00:53:00,240 --> 00:53:02,280
I mean like any other
parent nowadays.

1083
00:53:02,360 --> 00:53:04,280
We read a lot of parenting books.

1084
00:53:04,360 --> 00:53:06,320
We got to learn
one thing from them.

1085
00:53:06,480 --> 00:53:10,200
Children want change to ensure
their learning and development.

1086
00:53:10,320 --> 00:53:13,640
In the initial years, toys are the
best way for children to learn.

1087
00:53:13,720 --> 00:53:15,880
At that time, Sourabh was working
at Chai Point.

1088
00:53:15,960 --> 00:53:19,080
So, he used to be in Bengaluru
for half of the month.

1089
00:53:19,440 --> 00:53:22,840
Therefore, whenever he used to
return, he used to get lots of toys.

1090
00:53:22,960 --> 00:53:26,120
But one day what Shristi did
was she threw a toy at me in anger

1091
00:53:26,280 --> 00:53:27,920
and asked, 'Where do I keep this?'

1092
00:53:28,200 --> 00:53:30,160
I made a new wardrobe
in two days.

1093
00:53:30,240 --> 00:53:31,360
I said, 'This is where we will
store things.'

1094
00:53:31,440 --> 00:53:33,600
Shristi came to me
with a calculator

1095
00:53:33,680 --> 00:53:35,200
and said, 'You are a
chartered accountant, right?'

1096
00:53:35,280 --> 00:53:37,240
'Let me teach you math.'

1097
00:53:37,360 --> 00:53:38,960
We live in Kandivali, Mumbai.

1098
00:53:39,160 --> 00:53:41,800
She said you blocked
around 60 sq ft.

1099
00:53:41,880 --> 00:53:43,080
Multiply this by Rs. 40,000.

1100
00:53:43,200 --> 00:53:46,480
That is the value of this space
that you've encroached.

1101
00:53:46,800 --> 00:53:47,960
I am a Marwari Jain.

1102
00:53:48,040 --> 00:53:50,080
We realised what was happening.

1103
00:53:50,680 --> 00:53:52,840
My daughter is not using them.
You get disappointed.

1104
00:53:52,960 --> 00:53:54,920
We didn't intend
to open a toy library.

1105
00:53:55,040 --> 00:53:56,200
As you rightly said, Anupam.

1106
00:53:56,280 --> 00:53:59,600
This model exists and these hacks
are available in our community.

1107
00:53:59,680 --> 00:54:01,560
So, we decided to enrol.

1108
00:54:01,640 --> 00:54:02,560
We visited a toy library.

1109
00:54:02,680 --> 00:54:05,320
She said, 'Come on Tuesday
between 10 am to 5 pm,'

1110
00:54:05,480 --> 00:54:06,480
'and we will exchange the toy.'

1111
00:54:06,680 --> 00:54:09,360
I said, 'I am a working man,
I can't do that.'

1112
00:54:09,480 --> 00:54:10,600
So, that got cancelled.

1113
00:54:10,720 --> 00:54:13,320
Then we found someone who
said they deal on WhatsApp.

1114
00:54:13,400 --> 00:54:14,440
I thought that was good.

1115
00:54:14,600 --> 00:54:18,000
They sent 200 images at once
and asked me to select them.

1116
00:54:19,920 --> 00:54:22,480
I texted them around 3 am.

1117
00:54:22,600 --> 00:54:25,520
'Ma'am, give me any three available
out of these six.'

1118
00:54:25,600 --> 00:54:27,400
She replied the next morning,

1119
00:54:27,480 --> 00:54:30,000
'Sir, you can't message at 2 am.'

1120
00:54:30,360 --> 00:54:32,200
I said, 'I am really sorry.'

1121
00:54:32,280 --> 00:54:34,120
And then she said, 'These
toys are not available currently,'

1122
00:54:34,200 --> 00:54:36,600
'I'll send you a list again.
Let me know in half an hour.'

1123
00:54:36,720 --> 00:54:38,200
That was the tipping point.

1124
00:54:38,280 --> 00:54:40,200
Because I was
a Supply Chain Director

1125
00:54:40,280 --> 00:54:44,440
who delivered fresh milk
every morning at 8000 locations.

1126
00:54:44,520 --> 00:54:46,520
And you are telling him
that there is no solution

1127
00:54:46,600 --> 00:54:49,040
where I can order toys
at my convenience

1128
00:54:49,120 --> 00:54:51,040
and send them back
at my convenience.

1129
00:54:51,120 --> 00:54:52,680
So, we did a survey.

1130
00:54:53,400 --> 00:54:55,600
Almost 1,000 parents in 10 cities.

1131
00:55:00,920 --> 00:55:02,520
hardly anyone knew.

1132
00:55:02,600 --> 00:55:05,400
And those who were aware faced
similar issues as us.

1133
00:55:05,480 --> 00:55:08,520
Convenience, quality
and home delivery.

1134
00:55:13,840 --> 00:55:15,760
that you were a CA and
involved in the supply chain.

1135
00:55:15,920 --> 00:55:17,640
Could you elaborate on that?

1136
00:55:17,760 --> 00:55:19,920
I am a Chartered Accountant,
passed out in 2010.

1137
00:55:20,040 --> 00:55:21,320
I was in EY for four years.

1138
00:55:21,440 --> 00:55:26,560
In 2014, I started a company
with my partner, Protune Consulting.

1139
00:55:26,640 --> 00:55:28,080
I am a namesake Director.

1140
00:55:28,200 --> 00:55:30,560
But my partner handles everything.
I am completely out.

1141
00:55:31,000 --> 00:55:33,840
In 2020, I joined Chai Point
as a Supply Chain Director

1142
00:55:33,920 --> 00:55:35,840
with a clear vision to both

1143
00:55:35,920 --> 00:55:37,880
establish and manage
their processes.

1144
00:55:37,960 --> 00:55:39,760
I came up with this idea
in 2022.

1145
00:55:39,840 --> 00:55:42,600
I spoke to the founders and this
is what I am parallelly working on.

1146
00:55:42,720 --> 00:55:43,800
You can't be on two boats.

1147
00:55:43,880 --> 00:55:46,480
So, we took a call and that's where
the EleFant came in.

1148
00:55:46,560 --> 00:55:48,640
Shristi, what is your background?

1149
00:55:48,720 --> 00:55:50,800
I am a company secretary
and a lawyer.

1150
00:55:50,880 --> 00:55:52,000
Oh! Both!

1151
00:55:52,080 --> 00:55:54,760
Oh my! Your governance
and compliance must be solid.

1152
00:55:54,840 --> 00:55:56,280
[laughing]

1153
00:55:56,400 --> 00:55:57,840
So, right now, I am

1154
00:55:58,000 --> 00:56:00,720
working as a Company Secretary
and Chief Compliance Officer

1155
00:56:00,840 --> 00:56:02,880
at Ashv Finance, which is an NBFC.

1156
00:56:03,040 --> 00:56:04,360
During the weekends

1157
00:56:04,560 --> 00:56:06,160
I work for The EleFant.

1158
00:56:06,280 --> 00:56:08,560
I am a Director in the company
but non-executive.

1159
00:56:09,240 --> 00:56:11,760
How does this model work
and what is the scale?

1160
00:56:11,920 --> 00:56:13,960
- Can I give you the app demo?
- Sure.

1161
00:56:15,160 --> 00:56:16,840
This is what our app looks like.

1162
00:56:16,920 --> 00:56:19,720
We have neatly
categorised everything

1163
00:56:19,840 --> 00:56:22,160
for parents to choose

1164
00:56:22,240 --> 00:56:24,520
the category of toys
that they want to give their child.

1165
00:56:25,160 --> 00:56:26,920
You can click on any product

1166
00:56:27,000 --> 00:56:29,560
and see the images and details.

1167
00:56:29,640 --> 00:56:33,200
What skills it provides your child
and details of the product

1168
00:56:33,280 --> 00:56:35,240
along with certain other
recommended products.

1169
00:56:35,320 --> 00:56:37,240
You can 'add to bag'.

1170
00:56:37,480 --> 00:56:38,600
We have two plans.

1171
00:56:38,720 --> 00:56:41,160
Ultimate Playtime Plan
which is a 12-month plan.

1172
00:57:06,120 --> 00:57:07,680
What is the scale of the business?

1173
00:57:07,800 --> 00:57:11,200
As of today, we deliver toys
to more than 2,000 subscribers.

1174
00:57:17,920 --> 00:57:20,040
You can call it our backend centres.

1175
00:57:20,520 --> 00:57:21,880
They are our librarians.

1176
00:57:21,960 --> 00:57:24,800
In a way, we are making an
impact on women entrepreneurs.

1177
00:57:24,880 --> 00:57:29,520
Educated women who have prioritised
their families over their careers.

1178
00:57:29,600 --> 00:57:31,560
We make them the librarians.

1179
00:57:31,680 --> 00:57:33,360
- At their home? - There are
toy stores in their homes.

1180
00:57:33,440 --> 00:57:35,600
They become our
pseudo-investors also.

1181
00:57:36,200 --> 00:57:37,960
They handle the entire
backend operation.

1182
00:57:46,040 --> 00:57:48,160
The next day, our delivery
partner will collect the toy

1183
00:57:48,280 --> 00:57:50,600
from their house and
hand it over to the customer.

1184
00:57:50,680 --> 00:57:54,120
The returned toys will be handed
to the librarian in the evening.

1185
00:57:54,280 --> 00:57:56,960
The librarian will check the toys,
clean and sanitise the toys

1186
00:57:57,040 --> 00:57:58,200
and keep them back.

1187
00:58:03,040 --> 00:58:04,360
- Like this?
- Yes!

1188
00:58:05,400 --> 00:58:07,600
They are placed at homes in racks.

1189
00:58:14,400 --> 00:58:16,320
They do all the investment.

1190
00:58:20,840 --> 00:58:22,400
How do you tackle this?

1191
00:58:22,520 --> 00:58:25,320
We uniquely pack the toy
in a box every single time

1192
00:58:25,480 --> 00:58:26,880
and gift wrap it

1193
00:58:27,040 --> 00:58:30,280
so that whenever the child opens it,
they can experience the unboxing.

1194
00:58:30,400 --> 00:58:34,320
- We know that children enjoy
unboxing. - Nice!

1195
00:58:34,400 --> 00:58:38,360
Beyond that, they are fine
if there are scratches.

1196
00:58:38,840 --> 00:58:41,360
What is the cash rotation
in this business?

1197
00:58:41,440 --> 00:58:43,280
Ours is a library model.

1198
00:58:43,360 --> 00:58:45,880
Currently, we've invested
Rs. 7.54 lakhs.

1199
00:58:46,560 --> 00:58:48,880
Where the library gets 600 toys

1200
00:58:48,960 --> 00:58:51,920
worth the value of approximately
Rs. 6 lakhs.

1201
00:58:52,000 --> 00:58:54,360
Rs. 50,000 is their setup cost.

1202
00:58:54,520 --> 00:58:56,520
Around Rs. 1.25 lakhs
is our franchisee fee

1203
00:58:56,600 --> 00:58:58,160
for joining the brand.

1204
00:58:58,240 --> 00:59:01,320
- Rs. 6 lakhs at retail price?
Just to clarify. - That's right.

1205
00:59:01,600 --> 00:59:05,760
In Rs. 7.5 lakhs, our current margin
on the gross level is about 52%.

1206
00:59:09,240 --> 00:59:11,560
So, we give them Rs. 25,000
risk-free income.

1207
00:59:11,640 --> 00:59:13,480
Whether they get the order or not,
we guarantee them Rs. 25,000

1208
00:59:37,480 --> 00:59:40,720
IRR, or Internal Rate of Return,

1209
00:59:40,800 --> 00:59:42,720
is a financial metric

1210
00:59:43,000 --> 00:59:45,600
that helps standardize and compare

1211
00:59:45,680 --> 00:59:48,320
returns across different
types of investments.

1212
00:59:48,880 --> 00:59:50,840
Here's a simple example,

1213
00:59:51,400 --> 00:59:53,640
if you invest Rs. 1 lakh

1214
00:59:53,760 --> 00:59:56,640
and receive Rs. 30,000
back over two years,

1215
00:59:56,720 --> 00:59:58,600
meaning Rs. 1.3 lakhs.

1216
00:59:58,840 --> 01:00:01,800
Then your IRR

1217
01:00:01,880 --> 01:00:04,440
is approximately 15% per year.

1218
01:00:05,680 --> 01:00:07,480
You are giving them Rs. 25,000

1219
01:00:07,560 --> 01:00:10,120
- and they've invested Rs. 7 lakhs,
right? - Correct! Rs. 7.5 lakhs.

1220
01:00:10,200 --> 01:00:12,360
They will recover
the money in 3 years.

1221
01:00:14,640 --> 01:00:16,800
If we only consider the fixed
and variable payback,

1222
01:00:16,880 --> 01:00:19,160
- the money will be recovered in
about 18-19 months. - Two years.

1223
01:00:19,240 --> 01:00:22,440
How? There are ongoing expenses
as well, there's also the Opex.

1224
01:00:22,960 --> 01:00:25,080
It's being run from home,
there's no extra infrastructure.

1225
01:00:25,160 --> 01:00:28,120
- But you are assuming there is
no opportunity cost for it. - Yes.

1226
01:00:34,160 --> 01:00:36,880
you're giving them Rs. 25.
How much are you earning?

1227
01:00:36,960 --> 01:00:38,480
Our price is Rs. 10,000.

1228
01:00:38,560 --> 01:00:41,400
With the offer, we are
selling for Rs. 8,400.

1229
01:00:41,480 --> 01:00:43,560
- Okay!
- 18% is GST.

1230
01:00:43,640 --> 01:00:46,800
So, our cost is almost Rs. 7,150.

1231
01:00:47,040 --> 01:00:49,760
After that, our
three major costs

1232
01:00:49,840 --> 01:00:52,920
are the library variable fee,
Rs. 25,

1233
01:00:53,000 --> 01:00:55,200
Rs. 20 is our packaging,

1234
01:00:55,280 --> 01:00:57,640
and Rs. 52 is our logistics.

1235
01:00:57,840 --> 01:00:59,880
The total cost is Rs. 97.

1236
01:01:00,000 --> 01:01:01,040
Let's say Rs. 100.

1237
01:01:39,200 --> 01:01:40,360
Then you have

1238
01:01:43,280 --> 01:01:45,360
It’s a bit different.

1239
01:02:08,200 --> 01:02:11,520
our profit is 53% after removing
the logistic cost.

1240
01:02:40,120 --> 01:02:42,400
Till March, we were bootstrapped.

1241
01:02:42,480 --> 01:02:46,680
- Shristi and I funded
around Rs. 1.25 crores. - Wow!

1242
01:02:46,760 --> 01:02:49,720
- Wow! - And then we have raised
a round of about Rs. 5.5 crores.

1243
01:02:50,600 --> 01:02:52,120
Well done! How much?

1244
01:02:52,200 --> 01:02:53,680
Venture Catalysts
and Malpani Ventures.

1245
01:02:53,760 --> 01:02:56,240
Dr. Aniruddha Malpani
is our lead investor.

1246
01:02:56,320 --> 01:02:58,440
- Okay!
- Manipal Group, Dr. Sudhakar Pai.

1247
01:02:58,520 --> 01:03:00,720
- Amazing! Then we have IVY Growth.
- What was the valuation?

1248
01:03:00,800 --> 01:03:03,200
This was Rs. 26 crores post-money.

1249
01:03:03,280 --> 01:03:07,280
What has the trajectory
been like in the last one year?

1250
01:03:07,360 --> 01:03:09,760
In March, we had 545 users.

1251
01:03:09,880 --> 01:03:12,080
In July, we had 995 users.

1252
01:03:12,200 --> 01:03:15,240
By the end of September,
we had 2007 users.

1253
01:03:15,480 --> 01:03:16,840
How many subscribers and centres

1254
01:03:16,960 --> 01:03:19,880
do you think it will take
for this business to break even?

1255
01:03:27,600 --> 01:03:30,120
to cover logistics and other
costs in order to break even.

1256
01:03:30,360 --> 01:03:33,320
Currently, we have 33 subscribers
per library.

1257
01:03:39,200 --> 01:03:41,040
They are dreaming
of materialising it

1258
01:03:41,120 --> 01:03:43,440
because no one has seen
the third year.

1259
01:03:43,520 --> 01:03:45,600
Correct! Out of Rs. 7.5 lakhs,

1260
01:03:45,760 --> 01:03:46,960
we gave them products
worth Rs. 6 lakhs.

1261
01:03:47,280 --> 01:03:50,480
Even if they sell these
products at a 50% discount,

1262
01:03:50,560 --> 01:03:51,600
they will not incur a loss.

1263
01:03:51,720 --> 01:03:54,200
The maximum loss they could face

1264
01:03:54,280 --> 01:03:56,520
would be around
Rs. 50,000 to Rs. 1 lakh.

1265
01:03:56,600 --> 01:03:58,400
They are taking that much risk
in the business.

1266
01:04:00,000 --> 01:04:01,920
Before Sugar,

1267
01:04:02,120 --> 01:04:04,080
I started a subscription
business called FAB BAG.

1268
01:04:04,240 --> 01:04:06,160
Beyond 20,000 subscribers,

1269
01:04:06,240 --> 01:04:09,440
the model becomes complex,

1270
01:04:09,520 --> 01:04:11,240
especially because you take
an advance payment

1271
01:04:11,320 --> 01:04:13,120
for the entire year.

1272
01:04:13,320 --> 01:04:16,080
So, India has a specific resistance

1273
01:04:16,160 --> 01:04:18,760
to advance payments and scaling.

1274
01:04:18,840 --> 01:04:20,520
So it's easy to get early users.

1275
01:04:25,640 --> 01:04:28,360
Secondly, there are 50 toys here.

1276
01:04:28,920 --> 01:04:31,360
If I have to keep
600 toys in my house,

1277
01:04:31,600 --> 01:04:33,440
we're not even factoring

1278
01:04:33,520 --> 01:04:35,640
in the space rent cost,
like Shristi said.

1279
01:04:35,720 --> 01:04:38,560
Rs 25,000 is the ROI
of their investment.

1280
01:04:39,200 --> 01:04:41,840
The third issue is that
not many people

1281
01:04:41,920 --> 01:04:43,760
want to buy new toys

1282
01:04:43,840 --> 01:04:46,520
for their children every week.

1283
01:04:46,680 --> 01:04:50,320
So, it is not investible right now.
I am out.

1284
01:04:52,880 --> 01:04:55,200
You told me about the franchise.

1285
01:04:55,680 --> 01:04:58,600
The payback for those toys
will take two years.

1286
01:04:59,000 --> 01:05:01,000
Will they use the same toys
for two years?

1287
01:05:01,760 --> 01:05:02,680
They have a life of three years.

1288
01:05:02,800 --> 01:05:04,040
But more toys will be required.

1289
01:05:11,400 --> 01:05:13,600
the money will return in 18 months.

1290
01:05:13,680 --> 01:05:15,520
But that's not the reality. Right?

1291
01:05:16,000 --> 01:05:18,840
You've earned Rs 3 lakhs
from those Rs 6 lakhs.

1292
01:05:19,000 --> 01:05:21,320
But the franchise is doomed
in this model.

1293
01:05:21,440 --> 01:05:22,840
You will get him to do it.

1294
01:05:22,920 --> 01:05:26,040
But once he takes a loan,
it will be a lifelong problem.

1295
01:05:26,120 --> 01:05:27,800
That is the problem
in your business.

1296
01:05:28,640 --> 01:05:30,600
These toys are bound
to be refreshed

1297
01:05:30,680 --> 01:05:33,200
and ruined.
In a non-ownership model,

1298
01:05:33,280 --> 01:05:34,960
nobody cares about that product.

1299
01:05:35,040 --> 01:05:36,440
If I can answer you,

1300
01:05:36,520 --> 01:05:38,440
we will take Rs 1 lakh towards
the end of the year.

1301
01:05:38,520 --> 01:05:40,640
In exchange for that,
they get 10 per cent extra.

1302
01:05:40,760 --> 01:05:43,240
So, Rs 25,000 becomes Rs 27,500.

1303
01:05:43,320 --> 01:05:45,440
So, in this way, their overall
return after three years

1304
01:05:45,520 --> 01:05:48,280
becomes Rs 9.93 lakhs,
purely on fixed.

1305
01:06:07,040 --> 01:06:09,960
which means you've not considered
that place's opportunity cost.

1306
01:06:11,560 --> 01:06:13,240
That is a wrong assumption,
to begin with.

1307
01:06:13,320 --> 01:06:14,760
Neither will they have
any overheads.

1308
01:06:14,840 --> 01:06:17,560
You're running the franchise
on the borderline.

1309
01:06:22,080 --> 01:06:24,800
But considering your burn
of Rs 54 lakhs,

1310
01:06:25,080 --> 01:06:26,600
you may not be able

1311
01:06:26,680 --> 01:06:29,680
to even out
your liability of Rs 25,000.

1312
01:06:29,760 --> 01:06:32,400
That franchise will shut down
in that case, as well.

1313
01:06:32,840 --> 01:06:35,600
Please think about the franchise,

1314
01:06:35,680 --> 01:06:37,120
and their money like your own money.

1315
01:06:37,880 --> 01:06:41,280
Secondly, think of a simpler model
like a Cashify model

1316
01:06:42,120 --> 01:06:44,800
because your logistic cost
in this business right now

1317
01:06:44,880 --> 01:06:46,640
is more than the cost of the toy.

1318
01:06:47,320 --> 01:06:49,600
This problem in India
has been solved

1319
01:06:49,880 --> 01:06:52,480
multiple times by buying
and selling second-hand things

1320
01:06:52,560 --> 01:06:56,120
in a managed second-hand
marketplace,

1321
01:06:56,360 --> 01:06:58,280
where you can ensure
the quality of the toys.

1322
01:06:58,400 --> 01:07:00,240
That is my feedback.
I am out of this for now.

1323
01:07:01,880 --> 01:07:03,600
Fundamentally,

1324
01:07:03,840 --> 01:07:07,640
this is not a value-for-money
proposition for the customer.

1325
01:07:08,600 --> 01:07:10,240
I find it expensive.

1326
01:07:10,920 --> 01:07:13,400
On the other hand,
there is a big question mark

1327
01:07:13,480 --> 01:07:15,560
for librarians.

1328
01:07:15,640 --> 01:07:19,840
It has not been long enough
to factually figure out

1329
01:07:20,040 --> 01:07:21,200
what will happen in the future.

1330
01:07:21,480 --> 01:07:23,400
But generally, we've seen
this in business.

1331
01:07:24,240 --> 01:07:27,120
- Whatever can go wrong usually
goes wrong. - It will go wrong.

1332
01:07:27,200 --> 01:07:31,120
Right? You don't have
a buffer for that

1333
01:07:31,840 --> 01:07:35,040
because your revenue
is almost as much as the loss.

1334
01:07:35,920 --> 01:07:37,920
The money will be over
in ten months,

1335
01:07:38,520 --> 01:07:39,520
if not sooner.

1336
01:07:40,560 --> 01:07:42,880
- So, I am out today.
- Sure.

1337
01:07:43,080 --> 01:07:45,120
But I wish you all the best.
Thank you, guys.

1338
01:07:45,200 --> 01:07:46,280
- Thank you.
- All the best.

1339
01:07:47,320 --> 01:07:48,760
Sourabh and Shristi,

1340
01:07:49,440 --> 01:07:52,120
I don't have a problem
with your business model.

1341
01:07:54,240 --> 01:07:56,480
My problem is with the subscription.

1342
01:07:57,600 --> 01:08:00,840
Giving a subscription
is too challenging.

1343
01:08:01,240 --> 01:08:05,240
People don't buy gym subscriptions.
That, too, gets wasted.

1344
01:08:05,360 --> 01:08:08,520
Unfortunately, I have an issue with
the subscription, not the model.

1345
01:08:09,760 --> 01:08:12,520
So, for now, I am not convinced

1346
01:08:18,280 --> 01:08:20,360
That is my perspective.

1347
01:08:20,440 --> 01:08:22,720
Unfortunately, that is why
I am out right now.

1348
01:08:23,880 --> 01:08:25,880
All right. This idea,

1349
01:08:26,080 --> 01:08:28,360
conceptually, is very powerful.

1350
01:08:29,800 --> 01:08:32,400
Just say one word, 'Toy Library'.

1351
01:08:32,480 --> 01:08:34,640
'The kids won't need new toys.'

1352
01:08:34,720 --> 01:08:38,040
'There will be no wastage.
We will create franchises.'

1353
01:08:38,160 --> 01:08:41,040
'Women entrepreneurs! Zero wastage!'

1354
01:08:41,120 --> 01:08:45,080
Oh, man! It intrigues people.
Everybody wants to invest.

1355
01:08:46,360 --> 01:08:47,840
But as you peel the onion,

1356
01:08:47,920 --> 01:08:50,520
there are several
moving parts in this model.

1357
01:08:51,200 --> 01:08:53,840
You need to optimise
numerous things.

1358
01:08:54,960 --> 01:08:57,080
You have to manage franchises,

1359
01:09:02,640 --> 01:09:05,480
So, instead of figuring out
just one thing,

1360
01:09:05,720 --> 01:09:09,360
which is shifting
customers' behaviour

1361
01:09:09,480 --> 01:09:12,520
from buying toys to renting toys,

1362
01:09:12,680 --> 01:09:14,720
we are engineering
the entire process.

1363
01:09:15,600 --> 01:09:18,720
That won't ensure our win
because of the moving parts.

1364
01:09:18,800 --> 01:09:21,480
You cannot make money there.
You're losing Rs 52 lakhs.

1365
01:09:21,760 --> 01:09:23,160
Right? On a cash flow basis.

1366
01:09:23,840 --> 01:09:25,040
You will be out of money soon.

1367
01:09:25,800 --> 01:09:27,080
It cannot be done this way.

1368
01:09:28,080 --> 01:09:31,800
How do we build it in a way
that customers stick to it?

1369
01:09:31,920 --> 01:09:34,520
Thinking about that is essential.
Invest your time there,

1370
01:09:34,600 --> 01:09:37,200
not to optimise
your supply chain and distribution.

1371
01:09:37,960 --> 01:09:39,920
It needs to be a full-stack model.

1372
01:09:40,800 --> 01:09:42,920
So, I am out.

1373
01:09:45,200 --> 01:09:47,880
- Unfortunately! - Thank you,
Sourabh and Shristi. - Best of luck.

1374
01:09:47,960 --> 01:09:50,720
- Thank you. - I hope The EleFant
proves the sharks wrong.

1375
01:09:50,800 --> 01:09:52,080
- Yes.
- Ma'am, absolutely yes.

1376
01:09:52,200 --> 01:09:53,320
- Thank you so much. Bye.
- Thank you.

1377
01:09:53,400 --> 01:09:54,840
- Thanks. - Bye, sharks.
- All the best, guys.

1378
01:09:57,240 --> 01:10:00,720
They said we were betraying
the owners of the franchise.

1379
01:10:00,880 --> 01:10:02,120
I am clear

1380
01:10:02,320 --> 01:10:06,760
that we are neither betraying anyone
nor letting anyone lose money.

1381
01:10:06,840 --> 01:10:09,520
The model is built in that way.
From a learning point of view,

1382
01:10:09,600 --> 01:10:11,440
we need

1383
01:10:11,520 --> 01:10:14,560
to use the minutes carefully
to avoid raising doubts.

1384
01:10:14,680 --> 01:10:16,800
This is definitely
the need of the hour.

1385
01:10:16,880 --> 01:10:19,280
Someone will succeed at it
if not us, but it will happen.

1386
01:10:19,600 --> 01:10:20,920
It will definitely take place.

1387
01:10:23,120 --> 01:10:25,720
'Acko Welcome Change.'

1388
01:10:29,200 --> 01:10:30,800
Welcome to Acko Changemakers,

1389
01:10:30,880 --> 01:10:32,440
where we really welcome change.

1390
01:10:32,640 --> 01:10:36,920
We've seen its beautiful portrayal
on our Changemakers' wall.

1391
01:10:37,160 --> 01:10:40,080
We're making a digitally-empowered
and sustainable future

1392
01:10:40,160 --> 01:10:41,520
by using innovation
and connectivity.

1393
01:10:44,480 --> 01:10:45,680
- Welcome. - Thank you.
- Thank you.

1394
01:10:45,760 --> 01:10:47,440
- How is it?
- It was great.

1395
01:10:47,520 --> 01:10:48,680
- Was it a good experience?
- Yes.

1396
01:10:48,800 --> 01:10:51,320
Your product is great.
You're lending toys on subscription.

1397
01:10:51,440 --> 01:10:53,560
It's an innovative product.
Good thinking!

1398
01:10:53,640 --> 01:10:55,080
You've brought about
a lovely change.

1399
01:10:55,160 --> 01:10:57,200
You're working towards
women's empowerment.

1400
01:10:57,280 --> 01:10:58,560
What I found interesting

1401
01:10:58,640 --> 01:11:01,080
was that you're promoting
the saving culture.

1402
01:11:01,200 --> 01:11:03,920
You're pushing sustainability
with your idea.

1403
01:11:04,000 --> 01:11:05,880
We really appreciate it.

1404
01:11:05,960 --> 01:11:08,120
We have a question
on behalf of our audience,

1405
01:11:08,200 --> 01:11:10,000
especially the young
and new parents.

1406
01:11:10,120 --> 01:11:14,240
What should they do daily

1407
01:11:14,440 --> 01:11:18,040
to do their parenting sustainably?

1408
01:11:18,760 --> 01:11:22,400
So, if you observe these days,

1409
01:11:22,480 --> 01:11:24,280
mothers are keen on sustainability.

1410
01:11:24,400 --> 01:11:26,880
We all know that children's products
don't have a long life.

1411
01:11:26,960 --> 01:11:30,160
They might look new if you
don't use them for a long time.

1412
01:11:30,280 --> 01:11:32,080
If you share and reuse them,

1413
01:11:32,160 --> 01:11:33,760
you can do something similar
to what we're doing at EleFant

1414
01:11:33,880 --> 01:11:36,720
for other products.

1415
01:11:36,840 --> 01:11:38,880
I think that's one of the best ways

1416
01:11:38,960 --> 01:11:41,200
to impact the environment
sustainably.

1417
01:11:41,280 --> 01:11:44,120
That's for sure.
Together, we'll bring a change.

1418
01:11:44,280 --> 01:11:47,080
Similarly, Acko's
revolutionary offerings

1419
01:11:47,160 --> 01:11:48,880
are bringing about a change
in the insurance landscape.

1420
01:11:48,960 --> 01:11:50,440
Acko's health insurance plan

1421
01:11:50,520 --> 01:11:53,040
has no limit on hospital room rent.

1422
01:11:53,240 --> 01:11:55,800
This means that the bill is covered
no matter which room you choose.

1423
01:11:56,080 --> 01:11:59,520
That's not all. You need
not worry about surcharges

1424
01:11:59,680 --> 01:12:01,760
for doctor's visits
and medical tests.

1425
01:12:01,920 --> 01:12:04,880
We want to give you a gift

1426
01:12:04,960 --> 01:12:07,240
on behalf of Shark Tank and Acko
for your change and time.

1427
01:12:07,440 --> 01:12:08,960
- Thank you.
- Thank you.

1428
01:12:10,720 --> 01:12:11,800
Thank you.

1429
01:12:11,880 --> 01:12:13,200
[camera shutter clicking]

1430
01:12:17,160 --> 01:12:19,400
Namaste. I welcome you
to this special segment

1431
01:12:19,480 --> 01:12:21,400
of Invest Smart with ICICI Direct.

1432
01:12:21,920 --> 01:12:23,280
I am your wealth buddy.

1433
01:12:23,400 --> 01:12:28,000
Today, we will be discussing some
crucial investment aspects with you.

1434
01:12:28,240 --> 01:12:29,800
They will help you make informed

1435
01:12:29,880 --> 01:12:33,160
and confident investment choices.

1436
01:12:33,360 --> 01:12:34,560
So, let's begin.

1437
01:12:35,000 --> 01:12:36,840
So, we have Mr Akhilesh Thota
with us today

1438
01:12:36,920 --> 01:12:38,000
from the brand Easy Kart.

1439
01:12:38,120 --> 01:12:39,240
When you invest,

1440
01:12:39,320 --> 01:12:42,640
what is your usual strategy
and expectation?

1441
01:12:42,720 --> 01:12:46,920
I ask my friends, advisors
and mentors for suggestions.

1442
01:12:47,000 --> 01:12:49,080
Based on that, I will make my decisions.

1443
01:12:58,200 --> 01:13:00,240
Okay? But there is a challenge.

1444
01:13:09,200 --> 01:13:10,720
I borrow funds

1445
01:13:10,880 --> 01:13:13,280
from friends, parents,

1446
01:13:13,360 --> 01:13:15,680
relatives or other sources.

1447
01:13:15,760 --> 01:13:18,200
But I will tell you another option.

1448
01:13:18,440 --> 01:13:22,080
If you want to build your personal
investment in the stock market,

1449
01:13:28,760 --> 01:13:30,720
It takes place within snaps.

1450
01:13:30,840 --> 01:13:32,200
Let me show you how.

1451
01:13:32,440 --> 01:13:35,560
By using MTF with ICICI Direct,

1452
01:13:47,760 --> 01:13:51,360
you can still book your profit
without paying the money.

1453
01:13:51,440 --> 01:13:52,800
- Isn't it interesting?
- It is.

1454
01:13:52,920 --> 01:13:55,400
You, too, can use
the ICICI 3-in-1 account

1455
01:14:21,280 --> 01:14:24,000
Welcome to Ask the Shark.
My name is Aashish Solanki.

1456
01:14:31,480 --> 01:14:32,920
Hello, Aashish!
It's good to see you.

1457
01:14:33,000 --> 01:14:34,400
- Which...
- What is the secret of your skin?

1458
01:14:34,680 --> 01:14:36,160
- Sir, two companies.
- Two companies?

1459
01:14:36,240 --> 01:14:38,360
- I see. - Yes, sir.
Which two will you give me?

1460
01:14:38,440 --> 01:14:41,560
Oh! I have two in NCLT.
I will give you those.

1461
01:14:41,640 --> 01:14:42,800
Is that good or bad?

1462
01:14:42,880 --> 01:14:44,600
Find out what NCLT is.

1463
01:14:44,680 --> 01:14:46,840
I see. You will ensure
my skin deteriorates.

1464
01:14:46,960 --> 01:14:49,200
Sir, today's question
is from Lucknow.

1465
01:14:49,280 --> 01:14:50,840
Ms Geeta Menon has asked this.

1466
01:15:04,720 --> 01:15:09,200
- Sharks tell the pitchers to hire
a CEO. - Yes.

1467
01:15:09,280 --> 01:15:11,160
You must've not heard me say it

1468
01:15:11,760 --> 01:15:14,680
because I don't believe it.

1469
01:15:14,880 --> 01:15:17,960
I believe every company
has a journey.

1470
01:15:18,040 --> 01:15:20,680
You start the company
and help it reach a point.

1471
01:15:20,760 --> 01:15:24,720
When you get the product market fit,
it is called zero to one journey.

1472
01:15:24,800 --> 01:15:27,080
Then, you scale it a little.

1473
01:15:27,240 --> 01:15:29,040
So, it is called one to ten.

1474
01:15:29,160 --> 01:15:32,480
Then, you make it a big company,
and it is called 10 to 100.

1475
01:15:32,560 --> 01:15:34,120
In all these three stages,

1476
01:15:34,200 --> 01:15:35,640
my personal bias is

1477
01:15:35,760 --> 01:15:39,720
the one with the founder attitude

1478
01:15:39,800 --> 01:15:43,200
- can never be a professional CEO.
- Okay.

1479
01:15:43,280 --> 01:15:45,800
I believe you should hire
a professional CEO

1480
01:15:45,880 --> 01:15:47,320
when the company is mature.

1481
01:15:47,400 --> 01:15:50,920
Humans have a life cycle.
We start with childhood,

1482
01:15:51,120 --> 01:15:53,880
grow into youth, and enter middle
and old age.

1483
01:15:54,000 --> 01:15:56,080
Similarly, companies go
through a life cycle.

1484
01:15:56,160 --> 01:15:58,400
When they reach maturity,

1485
01:15:58,520 --> 01:16:00,840
that is the right time to consider

1486
01:16:00,920 --> 01:16:03,920
bringing a full-time CEO.
Many companies do that.

1487
01:16:04,040 --> 01:16:06,480
If you hire

1488
01:16:06,600 --> 01:16:08,240
a professional CEO

1489
01:16:08,320 --> 01:16:10,160
in a startup environment,

1490
01:16:10,240 --> 01:16:12,520
it is not generally
their expertise.

1491
01:16:12,600 --> 01:16:16,200
They are good at managing things,
keeping things the way they are,

1492
01:16:52,560 --> 01:16:53,480
Do you see it in my eyes?

1493
01:16:53,560 --> 01:16:54,800
I can't see your eyes.

1494
01:16:55,000 --> 01:16:57,440
I see. I just wanted to say
I am a greedy person.

1495
01:16:57,960 --> 01:16:59,760
See you in the next Ask the Shark

1496
01:16:59,920 --> 01:17:01,520
with a new question and a new Shark.