1 00:00:20,040 --> 00:00:21,280 [music playing] 2 00:00:34,680 --> 00:00:36,360 [music concludes] 3 00:00:36,840 --> 00:00:38,200 [theme music playing] 4 00:00:55,960 --> 00:00:57,640 [theme music concludes] 5 00:01:08,840 --> 00:01:10,560 Ankit and Rajesh. 6 00:01:10,960 --> 00:01:13,200 They were toppers in their school 7 00:01:13,400 --> 00:01:16,040 and dreamt about changing the world together. 8 00:01:16,320 --> 00:01:17,560 After the fifth grade, 9 00:01:18,000 --> 00:01:20,400 Ankit got admission into Navodaya Vidyalaya 10 00:01:20,480 --> 00:01:23,680 where he received a modern education and good guidance. 11 00:01:23,920 --> 00:01:26,520 Rajesh, however, remained in the school in his village 12 00:01:26,640 --> 00:01:29,320 with no modern education or good opportunities. 13 00:01:29,560 --> 00:01:30,840 Today, after many years, 14 00:01:30,960 --> 00:01:33,080 Ankit is IPS Ankit Rajput 15 00:01:33,160 --> 00:01:36,480 whereas Rajesh works in a shop near his village. 16 00:01:36,840 --> 00:01:39,840 Sharks, the problem here wasn't that of intellect or passion. 17 00:01:40,240 --> 00:01:44,040 The problem was that of providing equal opportunities 18 00:01:44,120 --> 00:01:45,920 to more than 14 crore children like Rajesh 19 00:01:51,200 --> 00:01:53,440 schools should have trained teachers, 20 00:01:53,560 --> 00:01:55,000 imperative lesson plans 21 00:01:55,160 --> 00:01:57,600 and modern assignments, 22 00:02:08,920 --> 00:02:10,720 CoGrad is a social start-up 23 00:02:10,920 --> 00:02:15,320 that offers affordable, quality education for students 24 00:02:28,920 --> 00:02:31,440 If we want to help children, 25 00:02:31,600 --> 00:02:34,080 - then we must first help the teachers. - Hmm. 26 00:02:34,160 --> 00:02:36,480 And so, we came up with Medha AI. 27 00:02:36,960 --> 00:02:39,400 Medha AI is an assistive powered tool for teachers 28 00:03:02,120 --> 00:03:07,160 - So, our ask is Rs. 1 crore for 2% equity. - Whoa! 29 00:03:11,480 --> 00:03:13,640 It is now time to give something back. 30 00:03:14,320 --> 00:03:17,160 Saurabh and Himanshu, tell us about your journeys 31 00:03:20,040 --> 00:03:23,240 We spoke about Ankit. He's now an IPS Officer. 32 00:03:25,720 --> 00:03:28,240 - Is Ankit Rajput's story based on real life? - Yes, it is. 33 00:03:28,640 --> 00:03:31,160 We studied at Jawahar Navodaya Vidyalaya. 34 00:03:31,320 --> 00:03:33,080 We both hail from the village. 35 00:03:33,200 --> 00:03:34,200 How big was the village? 36 00:03:34,280 --> 00:03:37,520 - Sir, 750 people in our village voted. - Wow. 37 00:03:37,600 --> 00:03:39,920 The Navodaya Vidyalaya system 38 00:03:48,560 --> 00:03:49,560 Thank you. 39 00:03:49,880 --> 00:03:51,240 We're from different Navodayas. 40 00:03:51,320 --> 00:03:53,760 We met on a trip in Rishikesh 41 00:03:53,840 --> 00:03:55,520 and Ankit was a common friend of ours. 42 00:03:55,680 --> 00:03:57,880 Himanshu studied in NIT, Allahabad. 43 00:03:57,960 --> 00:03:59,920 His college ran a lot of clubs. 44 00:04:00,000 --> 00:04:01,960 For instance, the Aeromodelling Club and Robotics Club. 45 00:04:01,960 --> 00:04:03,040 Himanshu would attend them 46 00:04:03,160 --> 00:04:06,160 and realise that we had no idea about these clubs. 47 00:04:06,440 --> 00:04:09,400 So, we decided to hold this in our area. 48 00:04:09,720 --> 00:04:11,640 We began holding camps. 49 00:04:11,720 --> 00:04:14,600 Soon after, the pandemic hit us and the physical model collapsed. 50 00:04:14,720 --> 00:04:16,840 We had partnered up with many schools by then. 51 00:04:17,040 --> 00:04:20,680 So, we provided them with digital services like an LMS 52 00:04:25,320 --> 00:04:27,880 we took a trip to the village. 53 00:04:27,960 --> 00:04:30,560 We noticed that the children in villages 54 00:04:36,520 --> 00:04:38,880 The Times of India had released a report back then 55 00:04:38,960 --> 00:04:41,720 about 20,000 schools in India that had to shut down. 56 00:04:47,400 --> 00:04:50,640 Within a month, we took that number to 227. 57 00:04:51,200 --> 00:04:53,600 Were you in college when you started this? 58 00:04:53,680 --> 00:04:55,880 - No, in 2021. - We graduated in 2021. 59 00:05:02,280 --> 00:05:05,880 Is there government involvement? And if yes, how do you address it? 60 00:05:06,200 --> 00:05:08,800 We start the cheapest schools in villages. 61 00:05:09,320 --> 00:05:11,480 Do you take on existing schools or open new ones? 62 00:05:11,560 --> 00:05:15,000 - We take those schools on rent that have shut down. - Okay. 63 00:05:15,080 --> 00:05:16,560 And with a fee of Rs. 500, 64 00:05:16,640 --> 00:05:18,360 we make it the best school in the area. 65 00:05:18,440 --> 00:05:20,320 Rs. 500 per student per month. 66 00:05:20,400 --> 00:05:21,400 Per month, right. 67 00:05:21,760 --> 00:05:24,320 - And the brand name of the school is CoGrad. - CoGrad. 68 00:05:28,320 --> 00:05:30,000 So, is that not private property any longer? 69 00:05:30,040 --> 00:05:31,720 Suppose the village you come from... 70 00:05:31,840 --> 00:05:34,080 You did very well for yourself in life 71 00:05:34,200 --> 00:05:35,920 and wish to do something for your village. 72 00:05:36,000 --> 00:05:38,520 - So, most people start schools. - Right. 73 00:05:38,600 --> 00:05:40,760 They're not experts at running schools though. 74 00:05:40,840 --> 00:05:43,960 So, after running for a few years, such schools shut down. 75 00:05:44,320 --> 00:05:46,760 What's the education board? 76 00:05:46,840 --> 00:05:47,840 State Boards. 77 00:05:47,880 --> 00:05:51,160 So, you've mapped the curriculum of all the states? 78 00:05:51,240 --> 00:05:53,040 - Sir, we're only in Uttar Pradesh as of now. - Okay. 79 00:05:53,040 --> 00:05:56,120 But the major curriculum for all the Boards is based on NCERT. 80 00:06:09,040 --> 00:06:11,520 He lived in a nearby village. 81 00:06:11,600 --> 00:06:12,880 I paid him a visit 82 00:06:12,960 --> 00:06:16,520 and asked him about the problems he was facing in running the school. 83 00:06:17,200 --> 00:06:20,160 He responded in his local language and said, 84 00:06:20,280 --> 00:06:21,560 "There are no students." 85 00:06:21,640 --> 00:06:25,200 "I am trying really hard but nothing's working." 86 00:06:25,360 --> 00:06:27,520 "There's no one in my family who can run the school." 87 00:06:27,640 --> 00:06:28,960 I asked him, "Can I support you?" 88 00:06:29,160 --> 00:06:32,080 He said, "How will you do it? I have no money." 89 00:06:32,160 --> 00:06:35,040 The thing about people from the village is 90 00:06:35,240 --> 00:06:37,960 that every rupee matters to those who make a living there 91 00:06:38,040 --> 00:06:39,520 because they come from nothing. 92 00:06:39,760 --> 00:06:41,560 So, we told him, "We'll manage your school." 93 00:06:41,640 --> 00:06:43,760 "How much rent will you charge us for the building?" 94 00:06:44,400 --> 00:06:49,400 He said, "I'll rent out the building to you for Rs. 1.5 lakh a year." 95 00:06:49,520 --> 00:06:51,560 - Year. - We got everything along with it. 96 00:06:51,680 --> 00:06:53,440 The boards and chairs... 97 00:06:53,560 --> 00:06:55,760 We just rebranded the place and bought touchboards 98 00:06:55,840 --> 00:06:58,080 and some robotic kits as we were starting out. 99 00:06:58,160 --> 00:06:59,440 Who invested in that? 100 00:06:59,520 --> 00:07:00,440 - We did. - We invested. 101 00:07:00,520 --> 00:07:01,520 How much? 102 00:07:01,560 --> 00:07:04,200 Sir, we invested Rs. 4.5 lakhs in the first year. 103 00:07:04,320 --> 00:07:06,520 Was this for grades one to twelve? 104 00:07:12,000 --> 00:07:15,160 into a school with an annual turnover of Rs. 10 lakhs 105 00:07:15,280 --> 00:07:16,560 - by charging a fee of Rs. 500. - Yes. 106 00:07:16,600 --> 00:07:19,600 Out of which, you gave Rs. 1.5 lakhs to the land owner. 107 00:07:19,680 --> 00:07:20,840 What were the other expenses? 108 00:07:20,960 --> 00:07:22,520 We pay teachers' salaries. 109 00:07:22,600 --> 00:07:23,520 How much is that? 110 00:07:23,600 --> 00:07:25,760 We need one teacher for every 40 students. 111 00:07:25,840 --> 00:07:28,400 We had hired only nine teachers back then. 112 00:07:28,960 --> 00:07:32,120 A teacher's salary in the village is between Rs. 3,000-4,000 113 00:07:39,720 --> 00:07:41,680 - Another Rs. 1 lakh for the maintenance. - Yes. 114 00:07:41,760 --> 00:07:43,280 You're left with no money then! 115 00:07:44,000 --> 00:07:45,080 Sir, this is a number game. 116 00:07:45,080 --> 00:07:47,800 Suppose we have 400 students the following year, 117 00:07:48,040 --> 00:07:49,480 then we're profitable. 118 00:07:49,600 --> 00:07:51,760 We achieve breakeven at 300, sir. 119 00:07:56,440 --> 00:07:57,960 - Ma'am, here's what we do. - Go on. 120 00:07:58,040 --> 00:08:00,040 Each district has 6-8 blocks 121 00:08:00,160 --> 00:08:04,200 and you need a minimum of 120 villages to form a block. 122 00:08:04,320 --> 00:08:05,440 That's a gram panchayat. 123 00:08:05,520 --> 00:08:08,000 And to make a gram panchayat, you need 700 voters. 124 00:08:08,080 --> 00:08:11,800 So, our target audience is approximately 2 lakh people. 125 00:08:11,880 --> 00:08:13,280 We open schools in blocks. 126 00:08:13,360 --> 00:08:16,360 Isn't there a Navodaya Vidyalaya in these blocks? 127 00:08:16,480 --> 00:08:18,560 - There's one Navodaya Vidyalaya in a district. - Okay. 128 00:08:18,600 --> 00:08:20,920 And it has only 80 seats. 129 00:08:21,760 --> 00:08:23,720 How many such schools do you run today? 130 00:08:23,800 --> 00:08:26,160 We run five schools that we took on rent. 131 00:08:26,360 --> 00:08:27,920 When we were running them, 132 00:08:28,000 --> 00:08:32,680 we began supporting nearby schools and providing services to them. 133 00:08:32,800 --> 00:08:35,440 How old is your first school? 134 00:08:35,520 --> 00:08:36,640 It's in the fourth year now. 135 00:08:36,720 --> 00:08:39,200 - How many students does it have? - Around 400. 136 00:08:42,320 --> 00:08:43,960 That school lacked the capacity. 137 00:08:44,040 --> 00:08:46,000 - It's not a demand problem. - The demand is phenomenal. 138 00:08:46,040 --> 00:08:47,440 We hold tests every year. 139 00:08:47,520 --> 00:08:48,800 And the remaining schools? 140 00:08:48,880 --> 00:08:50,000 Over 300 in all the schools. 141 00:08:50,080 --> 00:08:51,680 - 327 and 325. - Over 300. 142 00:08:51,760 --> 00:08:52,840 So, they're breakeven plus, 143 00:08:52,920 --> 00:08:55,080 but there isn't much profit currently. 144 00:08:55,920 --> 00:08:58,440 There are two ways of making a social impact. 145 00:08:58,720 --> 00:09:00,920 Make a company and raise funding. 146 00:09:01,040 --> 00:09:04,600 The second way is by starting an NGO. 147 00:09:04,800 --> 00:09:08,320 Why did you decide to make a company and not an NGO? 148 00:09:08,400 --> 00:09:10,480 I've worked with a few NGOs. 149 00:09:10,800 --> 00:09:13,640 NGO owners always focus on the donors, 150 00:09:13,840 --> 00:09:16,000 not on the ones for whom the impact is to be created. 151 00:09:16,080 --> 00:09:18,920 - Right. - If I charge a poor man fees of Rs. 500, 152 00:09:19,080 --> 00:09:20,880 he can hold me accountable. 153 00:09:20,960 --> 00:09:22,320 "I paid you money." 154 00:09:22,640 --> 00:09:24,520 "What have you taught my child?" 155 00:09:24,720 --> 00:09:25,960 - Correct. - Nice thinking. 156 00:09:26,040 --> 00:09:27,680 What questions do you ask the parents 157 00:09:27,760 --> 00:09:28,760 after they pay the fees? 158 00:09:28,840 --> 00:09:30,400 I ask them, "What's your wish?" 159 00:09:31,120 --> 00:09:33,760 They say, "I could not study but I want my child to be educated." 160 00:09:33,840 --> 00:09:35,000 - [Namita chuckles] - Yes. 161 00:09:36,120 --> 00:09:37,640 Do you have photos of the school? 162 00:09:37,720 --> 00:09:38,840 - Yes! - Yes, sir. 163 00:09:39,080 --> 00:09:40,360 [music playing] 164 00:09:42,840 --> 00:09:43,840 Oh, nice. 165 00:09:44,160 --> 00:09:45,080 - Very nice. - Not bad. 166 00:09:45,160 --> 00:09:48,080 - It's lovely. - It's colourful and looks pretty. 167 00:09:48,160 --> 00:09:50,280 We even use 3D Holograms 168 00:09:50,360 --> 00:09:51,920 - to teach kindergarten students. - Oh! 169 00:09:52,040 --> 00:09:53,560 We've watched a lot of movies. 170 00:09:53,640 --> 00:09:56,360 I visualised students sitting under a tree. 171 00:10:00,040 --> 00:10:01,040 [Ritesh] Wow! 172 00:10:01,760 --> 00:10:03,400 Which village is this in? 173 00:10:03,560 --> 00:10:04,560 Etawah. 174 00:10:05,720 --> 00:10:06,720 Wow! 175 00:10:06,920 --> 00:10:09,040 This makes me want to go back to school. 176 00:10:09,240 --> 00:10:10,560 Sir, please come. 177 00:10:10,800 --> 00:10:13,360 The infrastructure already existed. The grass was there. 178 00:10:13,440 --> 00:10:15,280 - No, we made a few design changes. - You... 179 00:10:15,400 --> 00:10:16,880 This is how the school used to look. 180 00:10:16,960 --> 00:10:19,280 This is the classroom where we now have touchboards. 181 00:10:21,120 --> 00:10:23,480 Honestly speaking, we are running really good schools. 182 00:10:23,560 --> 00:10:25,120 Our kids go to IIT Kanpur. 183 00:10:25,200 --> 00:10:27,960 Our kids recently performed at IIT Mumbai. 184 00:10:40,880 --> 00:10:43,280 What's the ratio of boys to girls in your classrooms? 185 00:10:43,400 --> 00:10:44,480 Now... [chuckles] 186 00:10:44,560 --> 00:10:47,120 - More than 60% of the students are girls. - Oh! 187 00:10:50,520 --> 00:10:51,880 [joyous music playing] 188 00:10:54,000 --> 00:10:55,160 [claps] Well done. 189 00:10:55,240 --> 00:10:56,080 Amazing. 190 00:10:56,200 --> 00:10:58,320 People in the village are really orthodox. 191 00:10:58,640 --> 00:11:01,400 A woman came to us recently. I will not disclose her name. 192 00:11:01,560 --> 00:11:05,000 She has three children. All three are daughters, no boys. 193 00:11:05,080 --> 00:11:07,040 So, her family ill-treats her. 194 00:11:07,320 --> 00:11:11,520 She told me, "Sir, it's not my fault that I have three daughters." 195 00:11:11,760 --> 00:11:14,280 "I want them to study and do us proud." 196 00:11:14,360 --> 00:11:15,640 So, all three girls study in our schools. 197 00:11:15,640 --> 00:11:17,680 I'm getting goosebumps just listening to you. 198 00:11:18,240 --> 00:11:20,320 Sir, that's village lore for you. 199 00:11:20,400 --> 00:11:21,480 Yes, absolutely. 200 00:11:22,880 --> 00:11:26,000 Saurabh, teachers are the most important part of any school. 201 00:11:26,080 --> 00:11:28,080 Where do you recruit teachers from 202 00:11:28,160 --> 00:11:29,640 and how do you train them? 203 00:11:29,720 --> 00:11:31,960 So, we studied at Navodaya Vidyalaya. 204 00:11:32,040 --> 00:11:33,200 Once again, sorry for that. 205 00:11:33,280 --> 00:11:34,760 - I... - Why are you sorry? 206 00:11:34,840 --> 00:11:36,440 I keep talking about it over and over. 207 00:11:36,560 --> 00:11:39,760 - Our alumni network consists of 14 lakh members. - Oh, my! 208 00:11:40,080 --> 00:11:41,280 This is an active network. 209 00:11:41,360 --> 00:11:42,360 Name any village, 210 00:11:42,400 --> 00:11:44,800 I'll make one phone call and you'll find a Navodaya alumni. 211 00:11:44,920 --> 00:11:47,840 The principals in four of my schools are ex-students of Navodaya. 212 00:11:47,920 --> 00:11:49,840 So, you hire through the alumni network. 213 00:11:49,920 --> 00:11:51,000 Yes, sir. 214 00:11:56,520 --> 00:11:59,800 And those teachers are trainable. 215 00:12:00,200 --> 00:12:01,280 They are then... 216 00:12:01,360 --> 00:12:05,480 We have a group of teachers who've won the Rashtrapati Award. 217 00:12:05,760 --> 00:12:07,320 They undergo a two-month training 218 00:12:11,960 --> 00:12:13,680 of turning around existing infrastructure 219 00:12:13,800 --> 00:12:17,600 - which isn't yielding returns and making it productive. - Yes! 220 00:12:17,680 --> 00:12:20,760 Just like you, I too would convert individual hotels 221 00:12:20,840 --> 00:12:22,800 with 20% occupancy 222 00:12:22,880 --> 00:12:25,680 - and bring in business. - Yes. 223 00:12:25,800 --> 00:12:29,160 Sir, we also give the analogy that we're the OYO of schools! 224 00:12:29,560 --> 00:12:31,520 - Thank you so much. - Oh, wow! [chuckles] 225 00:12:32,000 --> 00:12:35,440 - This business comes with a risk of interference. - Right. 226 00:12:35,640 --> 00:12:37,840 Your intention is noble, 227 00:12:37,920 --> 00:12:41,360 to provide good education to the child of a poor man. 228 00:12:41,560 --> 00:12:44,560 However, the owner's intention might be different. 229 00:12:44,640 --> 00:12:48,560 - "My school should run the way it always has." - Hmm. 230 00:12:48,840 --> 00:12:50,440 How will you tackle that risk? 231 00:12:50,520 --> 00:12:53,080 We're currently only targeting non-functional schools. 232 00:12:53,160 --> 00:12:55,640 No, people might interfere after they become functional. 233 00:12:55,720 --> 00:12:59,120 Yes, sir. That's a possibility, but this is what we thought. 234 00:12:59,200 --> 00:13:01,480 Suppose they interfere four or five years down the line. 235 00:13:01,560 --> 00:13:03,120 By then, we'd have made enough revenue 236 00:13:03,200 --> 00:13:04,720 to erect a building opposite theirs, 237 00:13:04,800 --> 00:13:05,880 but we won't do that. 238 00:13:07,200 --> 00:13:09,160 Schools aren't known by their names 239 00:13:09,240 --> 00:13:12,120 but by the teachers who teach over there. 240 00:13:12,760 --> 00:13:15,400 You said you had 8,000 students. 241 00:13:15,480 --> 00:13:16,760 How is the total 8,000? 242 00:13:16,840 --> 00:13:18,440 It includes the students in our schools 243 00:13:18,520 --> 00:13:20,080 plus the schools we provide services to. 244 00:13:20,160 --> 00:13:23,640 - So, the other schools also... - Could you give us that split 245 00:13:23,720 --> 00:13:27,320 of how many schools you run and how many you service? 246 00:13:27,400 --> 00:13:29,760 Out of the five schools we run, currently... 247 00:13:53,720 --> 00:13:54,880 This is Medha. 248 00:13:54,960 --> 00:13:58,760 We've currently trained Medha on the NCERT syllabus 249 00:13:58,840 --> 00:14:00,600 for grades six through twelve. 250 00:14:00,760 --> 00:14:03,880 Apart from teaching, teachers have many other duties 251 00:14:03,960 --> 00:14:06,400 like planning lessons and assignments. 252 00:14:06,480 --> 00:14:08,160 This is where Medha saves their time. 253 00:14:08,360 --> 00:14:11,280 Suppose you're a teacher and want to teach students. 254 00:14:11,360 --> 00:14:13,840 The first thing you'll need is a good lesson plan. 255 00:14:13,960 --> 00:14:15,160 Let's create a lesson plan. 256 00:14:15,240 --> 00:14:17,440 I've selected Grade 7 Science. 257 00:14:17,560 --> 00:14:19,920 It will give you a list of the chapters. 258 00:14:20,200 --> 00:14:22,320 For instance, you want to teach 'Nutrition in Plants'. 259 00:14:22,360 --> 00:14:24,120 Suppose, we want to generate a lesson plan. 260 00:14:24,200 --> 00:14:25,800 You need to click on this 261 00:14:25,880 --> 00:14:27,160 and in a matter of seconds, 262 00:14:27,240 --> 00:14:29,960 you can see that a lesson plan has been generated. 263 00:14:30,200 --> 00:14:31,840 It will even suggest a method. 264 00:14:31,960 --> 00:14:35,800 For example, a discussion, lecture or peer learning. 265 00:14:35,880 --> 00:14:38,440 - Different teaching methods. - How did you make this curriculum? 266 00:14:38,520 --> 00:14:40,080 Did an expert guide you? 267 00:14:40,160 --> 00:14:43,080 Rashtrapati Award winner Mr. GC Badoni helps us out. 268 00:14:43,160 --> 00:14:46,200 We tell him, "Sir, how can we best teach this particular chapter?" 269 00:15:20,440 --> 00:15:21,440 - Yes. - Right. 270 00:15:22,360 --> 00:15:26,960 Tell us your business revenue from FY 2022 to date. 271 00:15:27,040 --> 00:15:30,560 In 2021-22, we clocked a revenue of Rs. 27 lakhs. 272 00:15:30,640 --> 00:15:33,720 Then in 2022-23, it was Rs. 70 lakhs. 273 00:15:33,840 --> 00:15:37,760 Last year, we did Rs. 1.92 crores in our books 274 00:15:37,840 --> 00:15:39,720 but we completed the project 275 00:15:39,840 --> 00:15:42,680 and if you take the total value, it was Rs 3.2 crores. 276 00:15:42,800 --> 00:15:44,160 What do you mean? 277 00:15:44,400 --> 00:15:47,600 - Let me explain how this works, sir. - [Sharks laugh] 278 00:15:47,840 --> 00:15:49,600 Can we close the numbers first? 279 00:15:49,840 --> 00:15:52,360 Our target is to close at Rs. 10 crores this year, sir. 280 00:16:01,520 --> 00:16:04,640 comes from technical training and workshops. 281 00:16:04,720 --> 00:16:05,560 In rural areas. 282 00:16:05,640 --> 00:16:06,480 For who? 283 00:16:06,680 --> 00:16:08,200 - Kids. - Children. 284 00:16:08,480 --> 00:16:10,480 Is this the services business or not? 285 00:16:10,560 --> 00:16:12,440 - This, sir, the workshops are... - Separate. 286 00:16:12,520 --> 00:16:14,680 - This is separate from the other two businesses. - Yes. 287 00:16:14,720 --> 00:16:17,080 - This makes up for 50% of the revenue! - Yes, 50%. 288 00:16:17,160 --> 00:16:18,840 Why didn't you mention this? 289 00:16:19,840 --> 00:16:20,840 Let me explain. 290 00:16:20,960 --> 00:16:25,320 Last year, IIT Delhi and IHFC held the Nurture Program 291 00:16:25,520 --> 00:16:28,520 in which we had to teach technology to children in rural areas. 292 00:16:28,600 --> 00:16:31,960 We generated a revenue of Rs. 2.2 crores through that. 293 00:16:39,400 --> 00:16:40,360 - What's this? - What is that? 294 00:16:40,440 --> 00:16:43,520 We completed the trainings in March 295 00:16:43,600 --> 00:16:45,320 but the Model Code of Conduct for elections came into force. 296 00:16:45,320 --> 00:16:46,320 Before the elections, 297 00:16:46,400 --> 00:16:48,880 - all government accounts are frozen. - Yes, okay. 298 00:16:48,960 --> 00:16:51,200 They got activated in November 299 00:16:51,280 --> 00:16:54,000 and all the pending payments will be received in December and January. 300 00:16:54,000 --> 00:16:56,760 - Okay. - So, you had done Rs. 1.67 crores 301 00:16:56,880 --> 00:16:59,560 and Rs. 1 crore is pending from last year. 302 00:16:59,720 --> 00:17:01,600 Are you accounting for it in this year? 303 00:17:01,960 --> 00:17:03,720 - No, sir. - You are not! 304 00:17:03,800 --> 00:17:06,720 - Let's add Rs. 1 crore to Rs. 1.67 crores. - Okay. 305 00:17:25,960 --> 00:17:27,800 We're holding similar activities there as well. 306 00:17:27,840 --> 00:17:30,440 From there, we'll get a revenue of Rs. 3 crores. 307 00:17:37,840 --> 00:17:40,400 will come from the non-scaleable part of the business 308 00:17:40,480 --> 00:17:44,160 - which is skills training and teacher training. - Right. 309 00:17:44,280 --> 00:17:46,760 Your core business, this year as well... 310 00:17:46,840 --> 00:17:48,360 That was below 50-60%, 311 00:17:48,480 --> 00:17:50,040 but this year, it'll be 10%. 312 00:17:50,120 --> 00:17:52,320 Ma'am, the revenue we'll make this year 313 00:17:52,400 --> 00:17:54,360 is going to be Rs. 1.2 crores from schools. 314 00:17:54,440 --> 00:17:56,240 Are you making heavy losses in the school business? 315 00:17:56,240 --> 00:17:57,760 Is that why you took on something else? 316 00:17:58,040 --> 00:18:00,760 We got an opportunity and decided to take it, 317 00:18:00,880 --> 00:18:02,400 and then we got it again the next year. 318 00:18:04,920 --> 00:18:06,760 No, sir. It's not like that. 319 00:18:06,920 --> 00:18:09,440 Coming to our involvement in the schools. 320 00:18:09,600 --> 00:18:11,720 We'd start in February 321 00:18:11,840 --> 00:18:14,960 and invest all our time in the schools till August. 322 00:18:15,120 --> 00:18:17,480 After that, we'd have free time on our hands. 323 00:18:17,600 --> 00:18:19,240 Where do we invest that? So, we started... 324 00:18:19,320 --> 00:18:21,320 What do you mean where? Open another ten schools! 325 00:18:21,400 --> 00:18:23,320 Didn't you say you wanted to open 1,000 schools? 326 00:18:24,360 --> 00:18:26,160 How many new schools did you start this year? 327 00:18:26,240 --> 00:18:28,960 - We didn't start any new schools this year, sir. - Why not? 328 00:18:29,080 --> 00:18:33,320 Well, because of the training we conducted, there was a... 329 00:18:33,440 --> 00:18:34,440 Distraction. 330 00:18:34,840 --> 00:18:37,680 No, we didn't get payment at the time, you see... 331 00:18:37,760 --> 00:18:39,560 - You invested but didn't get payments. - Yes. 332 00:18:39,640 --> 00:18:41,040 - So, you couldn't open schools. - Right. 333 00:18:41,040 --> 00:18:42,920 That's why we didn't open more schools. 334 00:18:43,040 --> 00:18:45,200 This happens to many founders 335 00:18:45,360 --> 00:18:48,000 when they set out to do a business, 336 00:18:48,360 --> 00:18:51,160 but then, someone promises them the world, 337 00:18:51,400 --> 00:18:54,240 and they start heading in that direction. 338 00:18:54,360 --> 00:18:55,760 They almost forget 339 00:18:56,080 --> 00:18:58,120 why they started the company in the first place. 340 00:18:58,560 --> 00:19:01,320 - No, sir. You could say that but we... - Yes. 341 00:19:01,600 --> 00:19:05,800 Yes, we don't have business mentors to guide us on these matters. 342 00:19:05,840 --> 00:19:09,560 We think this is good and will benefit the school. 343 00:19:09,640 --> 00:19:11,400 We take on the projects for that reason, 344 00:19:11,480 --> 00:19:14,000 and also because we're first-generation businessmen. 345 00:19:14,080 --> 00:19:16,600 No! You know it because you said it yourself. 346 00:19:16,680 --> 00:19:18,520 - But... - We loved what you said. 347 00:19:18,600 --> 00:19:21,680 - The poor man demands answers and says, "I paid you money." - No... 348 00:19:21,840 --> 00:19:23,880 That's a principal-agent problem 349 00:19:23,960 --> 00:19:25,880 - which you mentioned is the main problem of NGOs. - Yes. 350 00:19:25,880 --> 00:19:28,600 Your training business is also seeing a principal-agent problem. 351 00:19:28,680 --> 00:19:31,160 The one who's paying the money is not receiving the training. 352 00:19:31,280 --> 00:19:32,840 So, there's no accountability. 353 00:19:33,400 --> 00:19:35,000 - This... - No, ma'am. When IIT trains you, 354 00:19:35,080 --> 00:19:36,560 they ensure your qualities... 355 00:19:36,680 --> 00:19:39,960 I told you about our students who performed at IIT Mumbai, right? 356 00:19:40,080 --> 00:19:41,560 They went through this program. 357 00:19:56,760 --> 00:20:00,040 The purpose and aim with which you started... 358 00:20:00,560 --> 00:20:03,040 - I think that's fantastic. - Thank you. 359 00:20:03,360 --> 00:20:05,440 However, from there to here... 360 00:20:05,520 --> 00:20:07,880 "Sir, we've come on Shark Tank." 361 00:20:07,960 --> 00:20:11,360 "Please give us Rs. 1 crore at a Rs. 50-crore valuation." 362 00:20:11,600 --> 00:20:13,640 I don't quite get that journey. 363 00:20:14,640 --> 00:20:16,480 Your greatest power 364 00:20:16,560 --> 00:20:19,560 is the 14 lakh alumni you spoke about. 365 00:20:19,760 --> 00:20:21,080 "Using them," 366 00:20:21,320 --> 00:20:23,640 "how do we build an execution engine" 367 00:20:23,800 --> 00:20:26,200 "so that we can open not 1,000, but 5,000 schools?" 368 00:20:26,320 --> 00:20:28,120 "And how do we digitise this" 369 00:20:28,200 --> 00:20:31,000 "so that the operating model is technology-led?" 370 00:20:31,160 --> 00:20:33,040 But you built Medha AI... 371 00:20:33,360 --> 00:20:34,920 There is no blasted AI! 372 00:20:36,080 --> 00:20:39,560 It's merely there to justify your Rs. 50-crore valuation. 373 00:20:39,720 --> 00:20:43,640 I still find your vision quite inspiring, 374 00:20:43,960 --> 00:20:45,680 but I don't think the direction 375 00:20:46,640 --> 00:20:47,840 you're headed in is right. 376 00:20:48,000 --> 00:20:49,680 - So, I am out. - Okay. 377 00:20:49,880 --> 00:20:54,480 I feel you're not clear what business you want to be in. 378 00:20:55,040 --> 00:20:57,520 I don't have a problem with either of the business models. 379 00:20:57,640 --> 00:21:00,160 I have a problem with the lack of focus. 380 00:21:00,640 --> 00:21:02,440 When a company is young, 381 00:21:02,520 --> 00:21:04,080 what defines it? 382 00:21:04,640 --> 00:21:06,720 What do they turn down? 383 00:21:06,880 --> 00:21:08,960 You're not saying no to anything right now. 384 00:21:09,280 --> 00:21:12,000 Today, I am out but it was nice meeting you. 385 00:21:12,080 --> 00:21:12,920 Wish you all the best. 386 00:21:13,040 --> 00:21:14,040 Thank you, sir. 387 00:21:15,640 --> 00:21:17,160 You spoke about the villages. 388 00:21:17,240 --> 00:21:19,840 Both my father's parents died 389 00:21:20,000 --> 00:21:22,880 even before he turned five. 390 00:21:23,080 --> 00:21:24,960 There's a village named Barispur. 391 00:21:25,080 --> 00:21:26,680 It was the same thing there. 392 00:21:26,760 --> 00:21:29,040 He'd walk 6 km barefoot to school. 393 00:21:29,120 --> 00:21:30,560 No one taught in the schools. 394 00:21:30,640 --> 00:21:33,560 He sat on the tree and studied while farming. 395 00:21:33,640 --> 00:21:35,080 He did all of that 396 00:21:35,280 --> 00:21:37,160 and completed his BSc, MSc and PhD. 397 00:21:37,240 --> 00:21:41,880 Today, he's one of the most reputed scientists at AIIMS 398 00:21:41,960 --> 00:21:44,960 who created the maximum protein structures possible 399 00:21:45,040 --> 00:21:47,280 in the world for cancer research. 400 00:21:47,440 --> 00:21:49,960 He'd tell me one thing a lot as a child. 401 00:21:50,040 --> 00:21:53,960 "Education is one opportunity that can change your life." 402 00:21:54,560 --> 00:21:57,960 You can make many such children 403 00:21:58,120 --> 00:22:00,920 and even if that number is 100 or 200, 404 00:22:01,000 --> 00:22:02,080 it's huge. 405 00:22:02,760 --> 00:22:04,280 So, I'll make you an offer. 406 00:22:04,400 --> 00:22:05,840 [joyous music playing] 407 00:22:05,960 --> 00:22:08,280 Rs. 50 lakhs for 10% equity 408 00:22:08,600 --> 00:22:10,640 plus Rs. 50 lakhs in debt 409 00:22:11,000 --> 00:22:15,120 which I'll give you at 10% interest for a 3-year period, 410 00:22:15,320 --> 00:22:18,120 but this is for your school business. 411 00:22:18,760 --> 00:22:21,440 As for your training business, 412 00:22:21,560 --> 00:22:23,480 please refuse projects starting next year 413 00:22:32,800 --> 00:22:34,880 That coupled with my business understanding, 414 00:22:34,960 --> 00:22:38,360 using the existing infrastructure and properties, 415 00:22:38,440 --> 00:22:39,960 you give value to the customers. 416 00:22:40,040 --> 00:22:42,280 That combination could build you 1,000 schools. 417 00:22:43,160 --> 00:22:46,400 I believe Namita can bring in more value. 418 00:22:46,600 --> 00:22:48,160 So, we'll make you a combined offer. 419 00:22:50,520 --> 00:22:53,560 Rs. 50 lakhs for 5% equity 420 00:22:55,520 --> 00:22:57,760 plus Rs. 50 lakhs in debt 421 00:22:58,480 --> 00:23:01,720 at 9% interest for 3 years. 422 00:23:06,680 --> 00:23:08,720 When you've to build 1,000 schools, 423 00:23:09,040 --> 00:23:10,880 it'll take your all. 424 00:23:14,200 --> 00:23:15,520 [music swells and fades out] 425 00:23:15,800 --> 00:23:17,040 We have a counteroffer. 426 00:23:17,120 --> 00:23:18,360 - Go ahead. - First, tell us this. 427 00:23:18,400 --> 00:23:20,120 - Do you accept the condition? - Yes. 428 00:23:20,240 --> 00:23:23,600 The condition you laid down, ma'am, already exists. 429 00:23:23,760 --> 00:23:27,080 I was very clear about doing training for one year at the most. 430 00:23:27,360 --> 00:23:30,880 When we start surviving, we'll definitely shut that down. 431 00:23:31,280 --> 00:23:35,320 Sir, our counter is Rs. 50 lakhs for 2.5% equity 432 00:23:35,400 --> 00:23:37,120 and Rs. 50 lakhs debt for the same. 433 00:23:37,200 --> 00:23:38,080 At what interest rate? 434 00:23:38,200 --> 00:23:39,360 - 9... - 9%, sir. 435 00:23:42,560 --> 00:23:43,920 Every... We're out. 436 00:23:44,480 --> 00:23:47,080 Let's make the offer a little more appealing for both of us. 437 00:23:48,840 --> 00:23:51,440 For you, three's better than two. 438 00:23:51,520 --> 00:23:54,120 - Yes, we'd like all five. - [laughs] 439 00:23:54,520 --> 00:23:56,240 Three Sharks will come on board 440 00:23:56,320 --> 00:23:58,800 at Rs. 50 lakhs for 6% equity 441 00:23:58,880 --> 00:24:01,440 and Rs. 50 lakhs debt at 9% interest 442 00:24:01,920 --> 00:24:03,600 for a period of three years. 443 00:24:10,200 --> 00:24:11,960 4.5% for the same. 444 00:24:21,880 --> 00:24:23,480 Okay, Sharks. Deal done. 445 00:24:31,040 --> 00:24:32,040 [Namita giggles] 446 00:24:32,240 --> 00:24:34,800 'We took the deal we were offered' 447 00:24:34,880 --> 00:24:36,800 - especially because we got three Sharks. - Hmm. 448 00:24:36,880 --> 00:24:39,120 They'll add immense value to our business. 449 00:24:39,200 --> 00:24:40,920 Right, the training segment is completely different 450 00:24:40,960 --> 00:24:42,600 and that's not what our company does. 451 00:24:42,960 --> 00:24:44,160 We're a schooling company. 452 00:24:44,240 --> 00:24:47,000 As our schools keep growing, that will shrink. 453 00:24:47,120 --> 00:24:48,920 Today, our core business brings in 10%, 454 00:24:49,000 --> 00:24:51,480 but in future, training will bring in 10% or even go down to 0. 455 00:24:51,520 --> 00:24:52,800 [music fades out] 456 00:24:58,280 --> 00:25:00,400 Congratulations, Team CoGrad. 457 00:25:00,480 --> 00:25:02,960 Welcome to our PokerBaazi zone where you hold the cards. 458 00:25:03,040 --> 00:25:04,720 Are you familiar with poker? 459 00:25:04,840 --> 00:25:05,840 - No. - No. 460 00:25:05,880 --> 00:25:07,280 Very good, let me tell you. 461 00:25:35,240 --> 00:25:37,680 We'd like to talk about the growth phase. 462 00:25:37,760 --> 00:25:38,760 Sure, go ahead. 463 00:25:38,840 --> 00:25:40,920 When we opened the schools, 464 00:25:41,000 --> 00:25:43,480 - there were some challenges. - Hmm. 465 00:25:43,560 --> 00:25:46,440 Opening a school means 466 00:25:46,520 --> 00:25:50,600 you have to manage the peon, principal, 467 00:25:50,680 --> 00:25:53,040 - students and parents. - Hmm. 468 00:25:53,120 --> 00:25:55,640 But as we moved towards more schools, 469 00:25:55,760 --> 00:25:58,320 we required a complete strategy. 470 00:25:58,400 --> 00:25:59,800 - Overall, you mean. - Yes. 471 00:25:59,880 --> 00:26:02,480 Standard operating procedures have to be in place. 472 00:26:02,560 --> 00:26:03,880 What will you deliver? 473 00:26:03,960 --> 00:26:08,040 - How do parents reach out to you and vice versa? - Hmm. 474 00:26:08,160 --> 00:26:10,760 We had to standardise that a lot. 475 00:26:10,840 --> 00:26:12,160 This is business development. 476 00:26:12,240 --> 00:26:13,760 What you said in the Tank was right. 477 00:26:13,840 --> 00:26:15,400 "Don't think of us as an NGO." 478 00:26:15,480 --> 00:26:18,600 This is a proper story of business development and growth. 479 00:26:18,680 --> 00:26:21,360 Okay, let me tell you that this is Three of a kind 480 00:26:21,440 --> 00:26:23,840 - which is your seventh-highest winning card. - Okay. 481 00:26:23,920 --> 00:26:24,800 Which is great! 482 00:26:24,880 --> 00:26:26,840 And I know you're not familiar with poker. 483 00:26:49,040 --> 00:26:51,440 if you're a master of skills and strategies, 484 00:26:51,600 --> 00:26:54,160 log on to the PokerBaazi app and make a winning hand. 485 00:26:54,240 --> 00:26:55,400 Download the app now. 486 00:26:56,280 --> 00:26:58,200 Doesn't the Shark inside you 487 00:26:58,280 --> 00:27:00,800 predict which pitchers should or should not get the deal, right? 488 00:27:00,840 --> 00:27:02,120 Do one thing. Just hear it out. 489 00:27:02,240 --> 00:27:05,880 Lenskart app and lenskart.com are holding a contest 490 00:27:06,040 --> 00:27:07,320 called "Offer Or No Offer". 491 00:27:07,680 --> 00:27:09,040 Participate in it. 492 00:27:20,640 --> 00:27:21,960 [theme music playing] 493 00:27:44,880 --> 00:27:46,360 [theme music concludes] 494 00:27:54,480 --> 00:27:55,560 We're from Jaipur 495 00:27:55,640 --> 00:27:56,720 and our ask is 496 00:27:56,880 --> 00:28:01,480 - Rs. 50 lakhs for 0.5% of our company. - Whoa! Gosh! 497 00:28:01,600 --> 00:28:04,280 "Our story began 30 years ago" 498 00:28:05,000 --> 00:28:06,600 "when a working woman" 499 00:28:06,760 --> 00:28:09,920 "set out in search of healthy snacks for her family." 500 00:28:11,800 --> 00:28:13,640 "All you got in the market was junk." 501 00:28:13,760 --> 00:28:15,880 "Full of sugar, reeking of oil!" 502 00:28:16,320 --> 00:28:18,560 "It was important for me to put an end to this problem." 503 00:28:18,640 --> 00:28:20,880 "I sat with my grandma's book of recipes," 504 00:28:20,960 --> 00:28:24,360 "my interest and knowledge in nutrition were my allies." 505 00:28:24,560 --> 00:28:26,880 "Mother-in-law's snacks were a hit," 506 00:28:26,960 --> 00:28:29,200 "a perfect blend of taste and health." 507 00:28:29,520 --> 00:28:32,480 "We thought, why don't we share it with everyone?" 508 00:28:32,640 --> 00:28:34,240 "Eat Better should be a household name," 509 00:28:34,320 --> 00:28:35,320 "it's only fair." 510 00:28:36,280 --> 00:28:38,800 "Snacks are always in demand in every household..." 511 00:28:38,880 --> 00:28:41,040 "But those with a love for taste and health" 512 00:28:41,120 --> 00:28:42,680 "are very few." 513 00:28:42,760 --> 00:28:45,680 "So, we made such 'laddoos' and snacks..." 514 00:28:45,760 --> 00:28:47,920 "That had no oil and sugar..." 515 00:28:48,040 --> 00:28:49,800 "And yet everyone became addicted." 516 00:28:50,160 --> 00:28:52,240 "A touch of health in the tiffin boxes of the kids." 517 00:28:52,320 --> 00:28:54,720 "Travel-friendly snacks that are simple and much." 518 00:28:54,840 --> 00:28:56,600 "A piece of heaven for the in-laws." 519 00:28:56,680 --> 00:28:59,280 "Or ride that wave of taste at the office without a pause." 520 00:28:59,360 --> 00:29:01,640 - Nice. - "After the daily workout, this is your healthy bite." 521 00:29:01,680 --> 00:29:03,840 "Or watch movies every night with a slice of delight." 522 00:29:04,040 --> 00:29:07,280 "Eat Better snacks are there for you day and night." 523 00:29:07,360 --> 00:29:10,120 "Over 3 lakh families accepted us as their own." 524 00:29:10,200 --> 00:29:12,600 "Our sales growth year on year would leave you mind-blown!" 525 00:29:12,680 --> 00:29:13,680 Oh, my! 526 00:29:13,800 --> 00:29:16,280 "Arrange I did for them loads of funds," 527 00:29:16,360 --> 00:29:19,600 "but as usual, there was no end to their demands." 528 00:29:20,040 --> 00:29:22,040 "Not just funding is what we ask of you," 529 00:29:22,160 --> 00:29:24,880 - "our paramount desire is your guidance too." - Oh, wow. 530 00:29:25,000 --> 00:29:27,480 "This message of good health we wish to send to every viewer," 531 00:29:27,560 --> 00:29:30,160 "your support we need to make this noble cause even better." 532 00:29:30,440 --> 00:29:32,360 "So, Sharks, come and bet on us." 533 00:29:32,440 --> 00:29:34,480 "To be India's number one snacking brand..." 534 00:29:34,600 --> 00:29:35,680 "We are all set!" 535 00:29:36,000 --> 00:29:37,400 [music playing] 536 00:29:37,800 --> 00:29:39,360 - Amazing. - That was nice. 537 00:29:39,440 --> 00:29:40,560 - What poetry! - Lovely poem. 538 00:29:40,600 --> 00:29:41,720 Who wrote the poetry? 539 00:29:41,800 --> 00:29:43,480 We, mother-in-law and daughter-in-law, did. 540 00:29:43,800 --> 00:29:45,800 What rhythm and harmony! 541 00:29:45,880 --> 00:29:47,200 You two set an example! 542 00:29:47,320 --> 00:29:48,880 - [all laugh] - Yes. 543 00:29:49,000 --> 00:29:51,360 Tell us how you got into this. 544 00:29:51,480 --> 00:29:52,720 What sparked the idea? 545 00:29:52,800 --> 00:29:54,920 What brought about the sophistication 546 00:29:55,000 --> 00:29:56,200 in packaging and branding? 547 00:29:56,280 --> 00:29:57,640 Tell us about your journeys. 548 00:29:57,720 --> 00:29:59,840 Eat Better was Vidushi's idea. 549 00:30:00,440 --> 00:30:02,360 Let me give you the backstory. 550 00:30:02,440 --> 00:30:05,720 I grew up in a joint, traditional Marwari family. 551 00:30:06,000 --> 00:30:09,000 In those days, ordering in wasn't the norm. 552 00:30:09,120 --> 00:30:11,600 Whatever you felt like eating had to be made at home itself. 553 00:30:11,880 --> 00:30:15,040 And I have loads of sweet childhood memories 554 00:30:15,120 --> 00:30:17,800 associated with the kitchen. 555 00:30:18,520 --> 00:30:19,760 Cooking became a very... 556 00:30:19,880 --> 00:30:22,720 It came naturally to me as a hobby as I had an interest in cooking. 557 00:30:22,800 --> 00:30:25,640 I got married when I was 20 and moved to Jaipur. 558 00:30:25,720 --> 00:30:28,080 I had kids, joined my husband's business, 559 00:30:28,160 --> 00:30:30,920 and had in-laws with their own special needs. 560 00:30:31,040 --> 00:30:33,400 Packing food for the kids, their tuitions and commutes... 561 00:30:33,560 --> 00:30:35,800 I couldn't prepare fresh snacks every day. 562 00:30:35,920 --> 00:30:38,760 So, I began experimenting on the weekends. 563 00:30:38,960 --> 00:30:40,160 I tried making snacks 564 00:30:40,240 --> 00:30:43,400 and packing maximum nutrition in them, 565 00:30:43,520 --> 00:30:45,040 but making them tasty at the same time. 566 00:30:45,320 --> 00:30:47,120 Also, they needed to last long. 567 00:30:47,200 --> 00:30:51,080 I gradually started making those and the kids loved them. 568 00:30:51,200 --> 00:30:52,800 Then Vidushi joined the family. 569 00:30:52,880 --> 00:30:55,240 Okay. You start, Vidushi, and tell us from the beginning. 570 00:30:55,320 --> 00:30:57,120 I come from the City of Joy, Kolkata. 571 00:30:57,200 --> 00:31:00,520 I did my BBA there from St. Xavier's College. 572 00:31:01,200 --> 00:31:04,240 Along with college, I interned for a lot of ad agencies as well 573 00:31:04,320 --> 00:31:06,440 which aroused my interest in design and marketing. 574 00:31:06,880 --> 00:31:08,560 Further, I completed my MBA 575 00:31:16,360 --> 00:31:18,120 I was highly fascinated by that world. 576 00:31:18,200 --> 00:31:19,400 How do brands work? 577 00:31:19,480 --> 00:31:21,520 How do they launch their products into the market? 578 00:31:21,640 --> 00:31:23,280 How do they get to know their customers? 579 00:31:23,520 --> 00:31:25,960 I was inclined to do something of my own. 580 00:31:26,080 --> 00:31:28,160 After my MBA, in 2018, 581 00:31:28,240 --> 00:31:31,200 I founded a start-up called Soxytoes. 582 00:31:32,080 --> 00:31:35,120 We made colourful socks with noticeable patterns 583 00:31:35,200 --> 00:31:36,760 that helped Gen Z and millennials 584 00:31:36,920 --> 00:31:40,120 express their personalities better. 585 00:31:40,240 --> 00:31:42,880 I scaled the brand to an ARR of Rs. 6 crores 586 00:31:42,960 --> 00:31:44,920 after which the brand stagnated 587 00:31:45,000 --> 00:31:47,520 and then Eat Better came to life. 588 00:31:48,400 --> 00:31:49,960 Okay. Moving on to you, sir. 589 00:31:50,040 --> 00:31:51,320 My name is Shaurya Kanoria. 590 00:31:51,400 --> 00:31:52,920 I was born and raised in Jaipur. 591 00:31:53,800 --> 00:31:56,760 For my college, I went to Christ University in Bengaluru. 592 00:32:01,960 --> 00:32:03,760 I'd hear them say there were no good jobs. 593 00:32:04,320 --> 00:32:05,720 Whenever I spoke with companies, 594 00:32:05,880 --> 00:32:08,480 they would say that finding skilled people was a challenge. 595 00:32:08,880 --> 00:32:12,280 I realised that the issue of employability is significant. 596 00:32:12,440 --> 00:32:14,720 I started a business with my father 597 00:32:14,800 --> 00:32:17,240 called Aegis Skills Edge Pvt Ltd. 598 00:32:17,320 --> 00:32:19,640 We ran this business till 2020. 599 00:32:19,760 --> 00:32:22,240 We trained more than 60,000 students 600 00:32:22,360 --> 00:32:25,040 and helped them get their first job. 601 00:32:25,160 --> 00:32:28,680 After that, when Covid hit, this business was put on hold. 602 00:32:29,760 --> 00:32:33,560 Along with that, there was my mom's product. 603 00:32:34,200 --> 00:32:37,320 We had a family conversation about doing this commercially. 604 00:32:37,400 --> 00:32:39,480 But we never took this idea seriously. 605 00:32:39,760 --> 00:32:43,160 Till the time, Vidushi also brought in that brand experience. 606 00:32:43,640 --> 00:32:45,440 So, we started this as an experiment 607 00:32:45,520 --> 00:32:47,960 in August 2020. 608 00:32:56,480 --> 00:32:57,320 It looks so pretty. 609 00:32:57,400 --> 00:32:59,160 - They made a basket for everyone. - Thank you so much! Thank you. 610 00:32:59,160 --> 00:33:02,960 Do you have a multi-seed mix? 611 00:33:03,040 --> 00:33:05,080 I think I've seen it at my mom's house. 612 00:33:05,160 --> 00:33:06,320 - Wow! - Oh wow! 613 00:33:08,640 --> 00:33:11,720 Why do all the food companies have tough-to-open packaging? 614 00:33:11,840 --> 00:33:13,280 This is my pet peeve. 615 00:33:13,360 --> 00:33:14,880 It is difficult to open the packaging. 616 00:33:14,960 --> 00:33:17,440 - There is a crimp. There's a tear. - There is a notch for tearing. 617 00:33:17,480 --> 00:33:18,840 This has it. 618 00:33:19,000 --> 00:33:20,800 - Usually, it's on the top. - Yes. 619 00:33:20,880 --> 00:33:22,640 - The indent... - We will work on that. 620 00:33:22,760 --> 00:33:24,560 We can mention 'tear here'. 621 00:33:24,680 --> 00:33:26,680 - It is at the wrong end. - Your packaging is fine. 622 00:33:26,680 --> 00:33:30,000 The packaging is weird. I thought it was a bar. 623 00:33:30,080 --> 00:33:32,680 - 3/4th of it is empty. - Yes. 624 00:33:32,800 --> 00:33:35,480 And at the bottom... 625 00:33:35,560 --> 00:33:37,080 - There are laddus. - There were two laddus. 626 00:33:37,120 --> 00:33:39,120 I think you can work on your packaging. 627 00:33:39,200 --> 00:33:40,560 You can make it square. 628 00:33:40,640 --> 00:33:43,200 I will start a company called Pack Better. 629 00:33:43,280 --> 00:33:44,640 [laughing] 630 00:33:46,480 --> 00:33:47,960 [music playing] 631 00:33:50,440 --> 00:33:51,720 This orange one is delicious. 632 00:33:51,840 --> 00:33:53,560 - Thank you! - Thank you so much! Thank you. 633 00:34:04,480 --> 00:34:05,600 The recipes are mine. 634 00:34:05,680 --> 00:34:09,040 If you notice, the ingredients used 635 00:34:09,120 --> 00:34:11,480 are the ones commonly found in our homes. 636 00:34:11,640 --> 00:34:13,680 When we made this commercial, 637 00:34:13,760 --> 00:34:15,520 we did tweak the recipes. 638 00:34:15,640 --> 00:34:17,400 Lovely, you are an artist. 639 00:34:17,480 --> 00:34:18,480 - Thank you so much. - This is delicious. 640 00:34:18,520 --> 00:34:21,880 This is for Rs. 59. Good price points also. 641 00:34:21,960 --> 00:34:23,440 - Thank you. Thank you so much. - Thank you. 642 00:34:23,480 --> 00:34:24,920 How many total SKUs do you have? 643 00:34:25,000 --> 00:34:27,040 We have 36 SKUs and 16 products. 644 00:34:27,360 --> 00:34:28,800 What are the top three products? 645 00:34:28,880 --> 00:34:31,560 Hazelnut Chocolate Laddoos, Millet Desi Masala, 646 00:34:37,800 --> 00:34:39,800 14% from Vanilla Chocolate 647 00:34:39,920 --> 00:34:41,840 and 13% from Millet Desi Masala. 648 00:34:41,920 --> 00:34:44,240 - So you get around 40%-45% from these three. - Yes. 649 00:34:44,320 --> 00:34:46,960 They are very tasty. I have one doubt. 650 00:34:47,040 --> 00:34:49,080 The shelf life is around 6 months on every product. 651 00:34:49,200 --> 00:34:50,760 A short shelf life is dangerous. 652 00:34:51,680 --> 00:34:56,040 Generally, in packaged food, it's around one year to 18 months. 653 00:34:56,120 --> 00:34:57,800 We've mentioned 6 months deliberately 654 00:34:57,880 --> 00:35:00,520 because we haven't used preservatives. 655 00:35:00,760 --> 00:35:04,080 To date, we have never received any returned inventory. 656 00:35:09,640 --> 00:35:13,080 The fat comes from peanuts and other ingredients as well. 657 00:35:13,320 --> 00:35:14,600 Those are healthy fats. 658 00:35:14,680 --> 00:35:17,960 - Not all fats are bad. - I agree. 659 00:35:18,040 --> 00:35:20,680 On this laddu product, you've mentioned high protein. 660 00:35:21,040 --> 00:35:24,640 If I look at the label, it's only 1.2 grams. 661 00:35:24,760 --> 00:35:28,400 And 2.4% of your RDA. 662 00:35:28,480 --> 00:35:30,800 Is it right to claim that it has high protein? 663 00:35:30,920 --> 00:35:32,360 I don't think it's right. 664 00:35:33,200 --> 00:35:34,760 FSSAI has regulations 665 00:35:34,880 --> 00:35:37,800 on which products you can label as such or not. 666 00:35:37,960 --> 00:35:39,720 If 100 grams of product 667 00:35:39,800 --> 00:35:42,400 provides 20% of your required RDA, 668 00:35:42,520 --> 00:35:45,600 you can label it High-Protein. This is as per FSSAI guidelines. 669 00:35:51,320 --> 00:35:52,600 And 4 grams of protein. 670 00:35:52,680 --> 00:35:54,760 The protein-to-calorie ratio 671 00:35:54,840 --> 00:35:56,880 - is quite low. - You are right about the protein. 672 00:35:57,000 --> 00:35:59,520 We did a lot of customer insight and understood... 673 00:35:59,600 --> 00:36:01,480 In fact, this is our new packaging. 674 00:36:01,600 --> 00:36:03,640 We have removed the claim of high-protein. 675 00:36:03,720 --> 00:36:05,840 But then why did you get this for us? 676 00:36:06,080 --> 00:36:07,920 I would like to say again 677 00:36:08,040 --> 00:36:09,720 that this is fulfilling 678 00:36:09,800 --> 00:36:11,960 FSSAI's mandated norms. 679 00:36:12,040 --> 00:36:14,200 If you think you are right, 680 00:36:14,280 --> 00:36:16,680 then why did you take it out from your new packaging? 681 00:36:17,600 --> 00:36:20,080 Because we don't want to focus on functional snacking. 682 00:36:20,160 --> 00:36:22,120 We want to make this an everyday snacking brand. 683 00:36:22,200 --> 00:36:24,480 - That's why. - Those who want to be in functional snacking 684 00:36:24,520 --> 00:36:27,600 will eat bars and are fitness enthusiasts. But our product... 685 00:36:27,720 --> 00:36:30,280 - You changed your positioning from a... - Absolutely. 686 00:36:30,360 --> 00:36:33,880 From a high protein to more of a healthy snacking bar. 687 00:36:33,960 --> 00:36:35,240 Absolutely, right. 688 00:36:36,360 --> 00:36:38,240 - Shall we talk about numbers? - Yes. 689 00:36:38,320 --> 00:36:40,480 Could you tell us the numbers for the last three years? 690 00:37:15,280 --> 00:37:17,120 What will be the EBITDA on a full-year basis? 691 00:37:17,200 --> 00:37:18,200 Break-even. 692 00:37:18,280 --> 00:37:21,000 You've mostly raised funding. 693 00:37:21,120 --> 00:37:23,200 Because you've been burning or you've internally financed it. 694 00:37:23,200 --> 00:37:26,280 - What's the history? - In 2022, we raised a seed round 695 00:37:26,440 --> 00:37:27,880 for a valuation of Rs. 22 crores. 696 00:37:28,080 --> 00:37:30,240 We raised Rs. 5.5 crores pre-money. 697 00:37:30,800 --> 00:37:32,600 And then in 2023, 698 00:37:32,680 --> 00:37:35,640 through CCDs, we raised a round of Rs. 3 crores. 699 00:37:35,720 --> 00:37:38,440 - The CAP was Rs. 45 crores now the note has been converted. - Ah! 700 00:37:38,600 --> 00:37:40,600 - You need another round for Rs. 45 crores. - That was done. 701 00:37:40,600 --> 00:37:42,880 - You did. - We did a round of Rs. 17 crores 702 00:37:42,960 --> 00:37:45,680 at a pre-money valuation of Rs. 75 crores. 703 00:37:49,200 --> 00:37:50,600 - Yes! Full cash. - Yes, absolutely. 704 00:37:50,680 --> 00:37:52,120 - No sweetheart deals. - Okay. 705 00:37:52,200 --> 00:37:54,480 This is why all three of you look so happy. 706 00:37:55,400 --> 00:37:57,920 - We are always happy. - You don't care you are here. 707 00:37:58,000 --> 00:38:01,400 - No! - Give us Rs. 50 lakhs if you want to or don't. 708 00:38:01,480 --> 00:38:03,280 Because you've come walking on clouds. 709 00:38:03,360 --> 00:38:04,840 No! 710 00:38:05,280 --> 00:38:08,480 Listen, the reason for being on Shark Tank 711 00:38:08,560 --> 00:38:10,480 is that we need your guidance. 712 00:38:10,560 --> 00:38:12,920 Money has its own place and advice has its own. 713 00:38:13,000 --> 00:38:15,600 Small brands like us are getting such a good brand. 714 00:38:15,680 --> 00:38:18,960 This is a great opportunity for us, which is why we are so happy. 715 00:38:19,280 --> 00:38:21,240 What are the channels we sell at? 716 00:38:21,360 --> 00:38:24,320 35% is Amazon and other marketplaces. 717 00:38:24,400 --> 00:38:27,240 30% quick commerce like Swiggy, Instamart and Blinkit. 718 00:38:27,480 --> 00:38:29,960 11% of revenue comes from our website. 719 00:38:30,160 --> 00:38:33,160 14% of revenue comes from the gifting category. 720 00:38:33,280 --> 00:38:36,200 9% of revenue comes from HORECA channels. 721 00:38:36,280 --> 00:38:37,840 And 1% comes from modern trade. 722 00:38:37,920 --> 00:38:38,760 Oh my! 723 00:38:38,840 --> 00:38:41,080 - It is well divided. - Yes. 724 00:38:42,280 --> 00:38:45,120 - You mentioned that 30% comes from quick commerce. - Yes. 725 00:38:45,240 --> 00:38:47,400 Are you making Rs. 1 crore monthly from quick commerce? 726 00:38:47,520 --> 00:38:49,720 We are doing Rs. 1 crore only on Blinkit. 727 00:38:57,040 --> 00:38:59,360 Are you also available on Zepto and Swiggy? 728 00:38:59,480 --> 00:39:01,560 Our onboarding with Zepto happened this month itself. 729 00:39:01,600 --> 00:39:04,920 Swiggy is also taking us pan India after seeing our performance. 730 00:39:05,600 --> 00:39:08,960 But Zepto and many quick commerce are doing this co-branding. 731 00:39:09,080 --> 00:39:11,600 - For example, one flavour will be available... - Private label. 732 00:39:11,640 --> 00:39:13,200 Only on Zepto. 733 00:39:13,400 --> 00:39:15,520 Then they promote that product a lot. 734 00:39:15,600 --> 00:39:17,240 - Think about it. It's a good idea. - Definitely! 735 00:39:17,280 --> 00:39:18,880 - 100%. - It's a lovely idea. 736 00:39:19,000 --> 00:39:20,560 But why? Why do that? 737 00:39:20,680 --> 00:39:22,320 - You get a great uptake in sales. - Your... 738 00:39:22,360 --> 00:39:24,360 - Your brand is carrying the product...- Why not more? 739 00:39:24,400 --> 00:39:25,520 There is no limit to growth! 740 00:39:25,600 --> 00:39:27,920 - Look... - Exactly! Thank you, Vidushi. 741 00:39:28,400 --> 00:39:30,680 The more power you give to your distributor, 742 00:39:31,160 --> 00:39:33,560 your power goes down 743 00:39:33,640 --> 00:39:36,840 from a bargaining, negotiating, long-term strategy standpoint. 744 00:39:36,920 --> 00:39:39,960 As long as you can, never give that power to them. 745 00:39:40,080 --> 00:39:43,920 Ultimately, they will shrink your brand and make it disappear. 746 00:39:44,040 --> 00:39:45,880 I don't think this is about giving power. 747 00:39:46,960 --> 00:39:48,280 This is a partnership. 748 00:39:48,360 --> 00:39:51,240 So, if this is exploding, make the most of it. 749 00:39:51,320 --> 00:39:54,440 Shaadi.com and Zepto collaborated. 750 00:39:54,560 --> 00:39:55,680 [laughing] 751 00:39:55,760 --> 00:39:57,320 That was amazing. 752 00:39:57,440 --> 00:40:00,120 - It was all over the internet. - Vidushi, salute! 753 00:40:00,320 --> 00:40:02,480 That's a brand marketing collaboration. 754 00:40:02,560 --> 00:40:07,320 Of course! I am saying a small brand like ours gets visibility. 755 00:40:07,720 --> 00:40:08,520 Vidushi! 756 00:40:08,640 --> 00:40:10,040 [applauding] 757 00:40:10,120 --> 00:40:11,320 Well said. 758 00:40:12,560 --> 00:40:15,320 How is the ownership divided? 759 00:40:15,400 --> 00:40:18,560 52% is with our promoters. 760 00:40:18,640 --> 00:40:20,400 3% is with advisors. 761 00:40:20,520 --> 00:40:22,600 8% is our ESOP pool. 762 00:40:22,680 --> 00:40:24,640 And 37% is with the investors. 763 00:40:24,720 --> 00:40:26,480 What is the promoter split for all three? 764 00:40:26,560 --> 00:40:27,880 21%, 765 00:40:27,960 --> 00:40:31,280 10.5%, 10.5% and 10.5% is with the family. 766 00:40:31,360 --> 00:40:33,480 Who has the last 10% of the promoter? 767 00:40:33,560 --> 00:40:35,840 That's with my younger brother. 768 00:40:36,840 --> 00:40:37,680 Why? 769 00:40:37,760 --> 00:40:39,280 What we've done is cross-holding. 770 00:40:39,360 --> 00:40:43,200 My equity is obviously in the earlier company, Aegis Skills Edge. 771 00:40:43,280 --> 00:40:45,880 - Your brother is running Aegis Skills, right? - Yes. 772 00:40:45,960 --> 00:40:48,640 To avoid any internal friction, 773 00:40:48,720 --> 00:40:50,560 both of you have swapped equity. 774 00:40:50,680 --> 00:40:53,480 - You in his business and him in yours. - Yes. 775 00:40:53,600 --> 00:40:55,600 What are your roles? Are you the CEO? 776 00:40:55,720 --> 00:40:57,640 - No! Shaurya is the CEO. - Shaurya is the CEO. 777 00:40:57,720 --> 00:40:59,800 - Yes! - Yes. I handle production. 778 00:40:59,880 --> 00:41:01,800 I have a team of 60 women. 779 00:41:01,920 --> 00:41:04,080 - Are you manufacturing it? Is your name on it? - Yes. 780 00:41:04,160 --> 00:41:05,680 - Yes. - When did you set up this factor? 781 00:41:05,720 --> 00:41:07,600 It started from the home kitchen. 782 00:41:07,680 --> 00:41:11,400 When we went to an office of 300-400 sq. ft. 783 00:41:11,560 --> 00:41:14,640 and now we have expanded to a 20,000 sq. ft. facility. 784 00:41:22,520 --> 00:41:23,560 - Thank you! - Thanks. 785 00:41:23,680 --> 00:41:24,800 Love you guys! 786 00:41:24,880 --> 00:41:26,000 - Thank you! - Thank you so much! 787 00:41:26,040 --> 00:41:28,000 Especially what you've created 788 00:41:28,120 --> 00:41:30,160 and how you gave the presentation 789 00:41:30,240 --> 00:41:31,520 and your chemistry. 790 00:41:31,600 --> 00:41:34,640 And ma'am, you are an inspiration. 791 00:41:34,720 --> 00:41:36,080 I am very grateful. 792 00:41:36,200 --> 00:41:38,360 What has been going on for quite some time in our country is 793 00:41:38,400 --> 00:41:40,440 that there are millions of entrepreneurs. 794 00:41:40,520 --> 00:41:43,680 I come from a Marwari family. We've always seen 795 00:41:43,760 --> 00:41:46,600 mothers or sisters designing, 796 00:41:46,680 --> 00:41:48,680 running a boutique, selling jewellery, 797 00:41:48,800 --> 00:41:52,400 but no one understood how to scale it. 798 00:41:54,440 --> 00:41:57,320 So, everything about you guys is fantastic. 799 00:41:57,760 --> 00:42:00,000 You showed up quite late. 800 00:42:01,480 --> 00:42:04,160 I would love to invest in a company like that. 801 00:42:04,440 --> 00:42:09,240 But right now, 0.5% or 1% is not going to work for me. 802 00:42:09,560 --> 00:42:11,720 So, for that reason, I am respectfully out. 803 00:42:12,120 --> 00:42:13,840 But thank you for coming here 804 00:42:13,920 --> 00:42:15,960 - and getting us excited. - Thank you so much. 805 00:42:17,200 --> 00:42:18,640 What is your long-term vision? 806 00:42:18,760 --> 00:42:20,720 Where do you see this business in the next five years? 807 00:42:20,760 --> 00:42:23,840 In the next five years, this can be a Rs. 1,000 company in this market. 808 00:42:23,920 --> 00:42:25,840 Because the future of snacking will be healthy. 809 00:42:25,920 --> 00:42:27,960 How much will the EBITDA be according to you? 810 00:42:28,080 --> 00:42:31,000 It could be around 17%-18% EBITDA. 811 00:42:31,560 --> 00:42:34,000 If you look at large FMCG companies, 812 00:42:34,080 --> 00:42:35,960 their EBITDA profile is nice. 813 00:42:36,040 --> 00:42:37,800 But you are a challenger brand, friend. 814 00:42:37,920 --> 00:42:39,920 We are a challenger brand, but our products 815 00:42:40,000 --> 00:42:42,440 stand out and there is a substantial difference. 816 00:42:42,600 --> 00:42:45,240 We handle our own manufacturing in-house. 817 00:42:46,360 --> 00:42:48,520 I will give you an offer first. 818 00:42:48,720 --> 00:42:50,800 [music playing] 819 00:42:50,880 --> 00:42:54,720 I'll give you exactly what you asked for, which is Rs. 50 lakhs at 0.5%. 820 00:42:56,560 --> 00:43:00,000 But I would like a 1% royalty on the sales 821 00:43:00,840 --> 00:43:02,200 till I recover my Rs. 50 lakhs. 822 00:43:09,520 --> 00:43:11,320 There are a lot of strengths in your business. 823 00:43:12,800 --> 00:43:15,360 Your products are good and delicious. 824 00:43:15,440 --> 00:43:16,760 Your pricing is good. 825 00:43:16,840 --> 00:43:19,360 Shaurya and ma'am, you are both special. 826 00:43:19,480 --> 00:43:23,640 - I think, Vidushi, you are extra special in this business. - Thanks. 827 00:43:23,880 --> 00:43:25,400 So, that's a yes. 828 00:43:27,640 --> 00:43:32,120 Despite so many positive things, unfortunately, I can't join you. 829 00:43:34,240 --> 00:43:37,880 Unfortunately, I don't know how we will reach the margin 830 00:43:38,040 --> 00:43:39,400 of 17%-18% in this business. 831 00:43:39,520 --> 00:43:42,720 I believe that there can be a margin of 9%-10% 832 00:43:42,880 --> 00:43:44,880 at Rs. 500-Rs. 600 crores in revenue. 833 00:43:44,960 --> 00:43:48,120 So, if the business is making a profit of Rs. 50 crores, 834 00:43:48,200 --> 00:43:51,920 then today, it would be valued at around Rs. 60-Rs. 70 crores. 835 00:43:52,000 --> 00:43:56,040 I might even nudge you to close the deal at Rs. 60-Rs. 70 crores. 836 00:43:56,120 --> 00:43:58,760 But you have some really great partners on board. 837 00:43:58,880 --> 00:44:00,280 Since you work in the HORECA sector, 838 00:44:00,320 --> 00:44:02,120 - so we might meet sometime in the future. - Yes. 839 00:44:02,120 --> 00:44:04,320 I wish you all the very best. I am out of the deal today. 840 00:44:04,320 --> 00:44:05,880 - You are our friends. - Thank you. 841 00:44:05,960 --> 00:44:08,000 - If we have a deal, will you help us? - Sure. 842 00:44:08,080 --> 00:44:10,200 - Sure! - Yes, I will do it anyway. 843 00:44:11,920 --> 00:44:14,200 I will also give you an offer. 844 00:44:16,120 --> 00:44:18,360 Rs. 50 lakhs for 1.5%. 845 00:44:19,880 --> 00:44:22,200 The valuation is Rs. 33.3 crores. 846 00:44:22,280 --> 00:44:23,560 No royalty. 847 00:44:24,920 --> 00:44:28,000 Because I think you are not profitable. 848 00:44:28,600 --> 00:44:30,880 So, it doesn't make sense. That's my offer. 849 00:44:31,000 --> 00:44:32,520 - Thank you for the offer. - Thank you. 850 00:44:33,000 --> 00:44:36,440 There are very few companies that come on Shark Tank 851 00:44:36,520 --> 00:44:40,080 where the market, 852 00:44:40,440 --> 00:44:42,640 team, product, 853 00:44:42,720 --> 00:44:45,200 economics and growth seem fine. 854 00:44:45,280 --> 00:44:47,880 This is a similar situation. 855 00:44:48,160 --> 00:44:49,600 - Thank you. - Thank you. 856 00:44:49,680 --> 00:44:51,840 The biggest issue is valuation. 857 00:44:53,240 --> 00:44:55,840 And I don't do deals that give 0.5% -1% equity. 858 00:44:58,520 --> 00:45:00,800 What is your expectation, sir? 859 00:45:02,440 --> 00:45:05,480 I will take at least 5% of the company. 860 00:45:07,880 --> 00:45:12,000 And I am ready for Rs. 50 crores valuation for 5%. 861 00:45:14,120 --> 00:45:17,000 So, Rs. 2.5 crores for 5%. 862 00:45:18,960 --> 00:45:20,200 - Thank you! - Thank you! 863 00:45:20,280 --> 00:45:22,000 And by the way, royalty. 864 00:45:24,040 --> 00:45:25,280 I didn't mention royalty. 865 00:45:25,360 --> 00:45:27,080 What? 866 00:45:29,440 --> 00:45:30,520 0% royalty. 867 00:45:33,080 --> 00:45:35,600 I wanted to tell you to remember that 868 00:45:35,680 --> 00:45:38,800 when you give equity, it's permanent. 869 00:45:40,120 --> 00:45:44,200 Whereas royalty is a temporary hit to your P&L. 870 00:45:44,520 --> 00:45:48,320 You seemed happy, but we put you in a tough spot. 871 00:45:48,440 --> 00:45:49,920 [laughing] 872 00:45:50,040 --> 00:45:51,800 Come back and tell us what you want to do. 873 00:45:51,880 --> 00:45:53,080 - Sure. Thank you! - Thank you! 874 00:45:53,160 --> 00:45:55,720 - Give us a minute. Thank you. - Thank you so much for the offer. 875 00:45:59,480 --> 00:46:03,360 Should we accept Kunal's and Namita's offer or join them? 876 00:46:03,440 --> 00:46:06,320 They will take royalty. The founders are obsessed nowadays 877 00:46:06,400 --> 00:46:08,040 with getting the valuation matched. 878 00:46:11,280 --> 00:46:14,160 Welcome! Does everyone have a counter or is there one counter? 879 00:46:17,880 --> 00:46:19,480 We have a small request. 880 00:46:19,600 --> 00:46:23,000 Can the three of you come in... 881 00:46:23,080 --> 00:46:26,480 - For just 0.5% who... - You can increase the equity. 882 00:46:26,840 --> 00:46:30,000 Our last round's valuation was Rs. 75 crores. 883 00:46:30,080 --> 00:46:33,760 Can we make a joint deal at 3% at that valuation? 884 00:46:37,480 --> 00:46:39,200 You know, the stakes are too small. 885 00:46:39,280 --> 00:46:43,000 I would like to stick to mine. I think my offer is quite fair. 886 00:46:45,920 --> 00:46:49,800 I invest in a company for 10-15 years. 887 00:46:49,880 --> 00:46:52,680 We got involved with many brands. 888 00:46:54,080 --> 00:46:56,360 We can help you a lot. 889 00:46:57,120 --> 00:46:59,400 But for that, there has to be skin in the game. 890 00:46:59,600 --> 00:47:01,320 My offer remains the same. 891 00:47:01,520 --> 00:47:04,640 If you want, you can structure it a bit as an advisory model. 892 00:47:04,720 --> 00:47:06,480 But I don't think I will give you a valuation 893 00:47:06,600 --> 00:47:08,280 of more than Rs. 50 crores. 894 00:47:08,360 --> 00:47:11,360 I offered Rs. 33 crores. I am okay to come to Rs. 50 crores. 895 00:47:11,720 --> 00:47:13,840 Rs. 50 lakhs at Rs. 50 crores valuation for 1%. 896 00:47:19,800 --> 00:47:21,000 I am sure we can't go back. 897 00:47:21,080 --> 00:47:23,480 [laughing] 898 00:47:24,840 --> 00:47:28,960 If you are valuation sensitive, you should accept Namita's offer. 899 00:47:29,440 --> 00:47:31,080 But if you want 900 00:47:31,160 --> 00:47:34,040 a strong partner who can help you for the long-term 901 00:47:34,120 --> 00:47:36,200 - of 10-15 years... - Hello! I am also a strong partner. 902 00:47:36,240 --> 00:47:40,560 Kunal! I am an extremely strong partner. What are you saying? 903 00:47:42,160 --> 00:47:43,160 Please decide! 904 00:47:43,400 --> 00:47:45,720 [music playing] 905 00:47:48,920 --> 00:47:50,440 - Namita, deal accepted! - Thank you! 906 00:47:58,280 --> 00:47:59,400 [camera shutter clicks] 907 00:48:06,640 --> 00:48:10,480 Our focus was getting the right partner for our business. 908 00:48:10,600 --> 00:48:13,720 And we believe Namita will be able to add a lot of value. 909 00:48:17,480 --> 00:48:19,160 Kunal, you meet me! 910 00:48:20,200 --> 00:48:21,920 Come on! Meet me outside the Tank. 911 00:48:22,000 --> 00:48:24,160 - Sorry! - Who is strong 912 00:48:24,240 --> 00:48:25,400 - and who isn't strong? - You! 913 00:48:25,440 --> 00:48:27,880 You were saying something. Who... 914 00:48:27,960 --> 00:48:29,080 [laughing] 915 00:48:29,160 --> 00:48:31,320 Team Eat Better Co, congratulations! 916 00:48:31,400 --> 00:48:32,680 - Thank you so much! - Thank you! 917 00:48:37,960 --> 00:48:41,200 - Yes! And you got a deal. I am glad it happened. 918 00:48:41,360 --> 00:48:43,520 But I have a complaint. 919 00:48:43,680 --> 00:48:45,360 - Tell me! - It is a serious complaint. 920 00:48:45,520 --> 00:48:47,360 I don't know why this always happens here. 921 00:48:47,440 --> 00:48:48,680 Whoever comes to pitch on Shark Tank India, 922 00:48:48,680 --> 00:48:50,120 only thinks about the Sharks 923 00:48:50,200 --> 00:48:52,720 and gives them the products and food. 924 00:48:52,800 --> 00:48:54,560 No one thinks about us. 925 00:48:55,040 --> 00:48:56,520 I was feeling a lot of FOMO. 926 00:48:56,600 --> 00:48:59,200 When your pitch was going on and they were eating, 927 00:48:59,280 --> 00:49:00,840 and you said you were on quick commerce. 928 00:49:00,880 --> 00:49:02,280 So, I ordered your products 929 00:49:02,320 --> 00:49:04,440 - from Swiggy Instamart. And look... - Wow! 930 00:49:04,720 --> 00:49:07,360 - This was delivered in 10 minutes. - Wow! 931 00:49:07,560 --> 00:49:11,200 You kept saying laddu time and again. 932 00:49:11,600 --> 00:49:14,200 Exactly! The marketing is on point. 933 00:49:14,320 --> 00:49:16,440 I actually ordered the laddus and snacks. 934 00:49:16,560 --> 00:49:18,760 I will eat them when I get the time. 935 00:49:18,840 --> 00:49:20,840 But congratulations! It was lovely. 936 00:49:20,960 --> 00:49:23,080 - Thank you so much. - How are you going to celebrate? 937 00:49:23,120 --> 00:49:24,240 By having a laddu. 938 00:49:24,520 --> 00:49:25,560 Okay, we'll do this. 939 00:49:25,640 --> 00:49:28,600 After this, guys, if you want anything, you can order laddu. 940 00:49:28,680 --> 00:49:30,040 You get everything on Swiggy Instamart. 941 00:49:30,040 --> 00:49:30,960 It will be delivered in 10 minutes. 942 00:49:31,040 --> 00:49:32,600 We are going to enjoy our snacks now. 943 00:49:32,760 --> 00:49:33,760 You can order now. 944 00:49:34,280 --> 00:49:37,200 'Shark Tank India, co-presented by ACKO Insurance, ' 945 00:49:37,280 --> 00:49:39,360 'PokerBaazi and Swiggy Instamart.' 946 00:49:39,440 --> 00:49:42,080 'Co-powered by Adani, and Jaquar Bath and Light.' 947 00:49:42,160 --> 00:49:43,680 'And partners, Rayzon Solar, ' 948 00:49:43,760 --> 00:49:46,080 'ICICI Direct and Lenskart.' 949 00:49:48,480 --> 00:49:50,560 [music playing] 950 00:49:55,040 --> 00:49:57,120 [music playing] 951 00:50:08,120 --> 00:50:11,320 Sharks, the most common advice in the world is... 952 00:50:11,560 --> 00:50:13,360 'Take good care of your health.' 953 00:50:14,160 --> 00:50:16,960 And the world's most commonly ignored advice. 954 00:50:17,040 --> 00:50:20,000 - The same thing, 'take good care of your health.' - I agree. 955 00:50:20,080 --> 00:50:23,320 We learn about health either through setbacks 956 00:50:23,400 --> 00:50:25,320 or as we age. 957 00:50:25,560 --> 00:50:27,520 Sharks, we took care of our health. 958 00:50:27,600 --> 00:50:30,520 And then came the dreaded 30s. 959 00:50:30,880 --> 00:50:34,280 When we touched 30, we saw a downfall in our health. 960 00:50:34,360 --> 00:50:36,520 Knee pains, acidity, hair loss, 961 00:50:36,600 --> 00:50:37,840 the list was endless. 962 00:50:37,920 --> 00:50:40,280 We didn't understand what was the problem. 963 00:50:40,400 --> 00:50:43,680 And then we realised what was missing. Nutrition. 964 00:50:43,880 --> 00:50:48,280 In India, 8 out of 10 people don't get complete nutrition. 965 00:50:48,560 --> 00:50:52,320 When you look at supplements in the market, they seem intimidating. 966 00:50:52,400 --> 00:50:55,280 Artificially made or animal sourced. 967 00:51:03,640 --> 00:51:06,040 Earthful is a nature-based nutrition brand. 968 00:51:06,160 --> 00:51:09,400 It provides research-backed, naturally sourced supplements. 969 00:51:37,280 --> 00:51:41,320 with the trust of over 1 lakh customers. 970 00:51:41,400 --> 00:51:42,840 And our dream is, 971 00:51:42,920 --> 00:51:46,400 that whenever a family talks about nutrition, 972 00:51:46,480 --> 00:51:49,400 they should trust Earthful without giving it a thought. 973 00:51:49,640 --> 00:51:54,800 - For this, our ask is Rs. 75 lakhs for 1% equity. - Whoa! 974 00:51:55,240 --> 00:51:56,680 Come, Sharks. 975 00:51:56,760 --> 00:52:00,640 Let's make nutrition Earthful, but not painful. 976 00:52:11,040 --> 00:52:12,200 Give us the history. 977 00:52:12,320 --> 00:52:15,400 - I completed my undergraduate studies from IIT Kharagpur. - Okay. 978 00:52:15,480 --> 00:52:16,720 In chemical engineering. 979 00:52:16,840 --> 00:52:19,240 And then I did my MBA from the Indian School of Business. 980 00:52:26,320 --> 00:52:28,720 Which is proving to be very useful in Earthful today. 981 00:52:29,040 --> 00:52:30,480 I worked with Uber too. 982 00:52:30,600 --> 00:52:34,280 I saw how a high-growth startup is made firsthand. 983 00:52:34,440 --> 00:52:37,640 And then, it is our... What... 984 00:52:37,760 --> 00:52:38,560 - Passion. - Passion. 985 00:52:38,640 --> 00:52:40,080 For how many years did you work at Uber? 986 00:52:40,120 --> 00:52:42,120 - 2.5 years. - Got it. Okay. 987 00:52:42,480 --> 00:52:45,040 Being her younger sister, I followed in her footsteps. 988 00:52:45,120 --> 00:52:47,680 - I completed my undergraduate studies from IIT Kharagpur. - Oh! 989 00:52:47,800 --> 00:52:49,320 Which year? 990 00:52:53,800 --> 00:52:56,800 I did Biotechnology and she did Chemical Engineering. 991 00:52:56,880 --> 00:52:58,240 No MBA like your sister? 992 00:52:58,400 --> 00:53:00,160 No! She is my MBA. 993 00:53:00,240 --> 00:53:01,280 Okay! 994 00:53:01,360 --> 00:53:02,360 Well said. 995 00:53:02,400 --> 00:53:04,720 Whose idea was it to start Earthful? 996 00:53:05,120 --> 00:53:06,000 - Both of us. - I... 997 00:53:06,080 --> 00:53:08,280 No, I would still give her credit. 998 00:53:08,640 --> 00:53:10,920 Seeing the love between you two sisters is truly heartwarming. 999 00:53:10,960 --> 00:53:12,400 [laughing] 1000 00:53:12,480 --> 00:53:15,480 Was it because you started having multivitamins 1001 00:53:15,560 --> 00:53:18,080 and you thought the products weren't good, or is there another reason? 1002 00:53:18,120 --> 00:53:22,160 I worked with ITC, so I always have had a love for consumer brands. 1003 00:53:22,320 --> 00:53:23,800 Did you work in a food factory in Haridwar? 1004 00:53:23,840 --> 00:53:25,560 - No! I was in personal care. - Makes sense. 1005 00:53:25,640 --> 00:53:29,000 I always wanted to do something in this industry. 1006 00:53:29,280 --> 00:53:30,400 Then there was Covid. 1007 00:53:30,480 --> 00:53:33,080 You know, personally, I could see a lot of people suffering. 1008 00:53:33,160 --> 00:53:35,080 And my health also started deteriorating. 1009 00:53:35,200 --> 00:53:37,120 Before my 30s I could have tea whenever I wanted 1010 00:53:37,240 --> 00:53:38,120 and I would be fine. 1011 00:53:38,200 --> 00:53:39,360 Now, I have to think 1012 00:53:39,440 --> 00:53:42,320 about how many cups to drink and worry about acidity. 1013 00:53:42,440 --> 00:53:44,840 And I know the solution. 1014 00:53:45,000 --> 00:53:47,040 But the thought that it's medicine 1015 00:53:47,120 --> 00:53:49,280 and whether or not to have it. I always had that doubt. 1016 00:53:49,360 --> 00:53:53,040 I wanted to be clear that I will be fine even if I consume it. 1017 00:53:53,160 --> 00:53:55,120 That's what made me start Earthful. 1018 00:53:55,520 --> 00:53:57,920 There are many multivitamin brands 1019 00:53:58,000 --> 00:54:01,280 - that are pharma-led. For example, Namita's company's brand. - Yeah. 1020 00:54:01,480 --> 00:54:03,920 - And then there are these herbal supplements. - Right! 1021 00:54:04,000 --> 00:54:05,720 You are somewhere in the middle. 1022 00:54:05,800 --> 00:54:08,240 This is natural and made in a lab. 1023 00:54:08,320 --> 00:54:10,360 Why are you trying to combine these two 1024 00:54:10,440 --> 00:54:12,440 and start a new market? 1025 00:54:12,520 --> 00:54:14,920 We believe in science first. 1026 00:54:15,120 --> 00:54:17,520 But parallelly, there is so much history in India 1027 00:54:17,640 --> 00:54:20,680 when it comes to plants and nature. So, there is familiarity. 1028 00:54:20,760 --> 00:54:24,680 And how herb marries with science is, a lot of these herbs 1029 00:54:24,760 --> 00:54:27,360 - like shatavari, gokshura and ashwagandha... - Yeah! 1030 00:54:27,520 --> 00:54:30,880 Western modern science has done research on them. 1031 00:54:31,000 --> 00:54:33,960 - Are all your ingredients from nature, or... - Everything! 1032 00:54:34,040 --> 00:54:38,080 Including our capsule shell. It is plant cellulose. 1033 00:54:39,320 --> 00:54:41,040 Sudha and Veda, it's good to see you again. 1034 00:54:41,120 --> 00:54:42,680 - Yeah! Nice to meet you, Kunal. - Again? 1035 00:54:42,720 --> 00:54:45,040 - We spoke. - Maybe 6-9 months ago. 1036 00:54:45,120 --> 00:54:47,920 - Good to see that your story remains consistent. - Yeah. 1037 00:54:48,040 --> 00:54:50,280 Who do we consider our competition? 1038 00:54:50,800 --> 00:54:53,120 In Ayurveda, you have Himalaya 1039 00:54:53,240 --> 00:54:54,960 and you also have Herbalife. 1040 00:54:55,040 --> 00:54:59,240 On the pharma side, you have Revital, Becosules, Shelcal. 1041 00:54:59,320 --> 00:55:02,000 In Himalaya, how big is this division? 1042 00:55:02,080 --> 00:55:04,760 Their Liv.52 which is their biggest-selling SKU, 1043 00:55:04,840 --> 00:55:06,840 is around Rs. 200-Rs. 300 crores. 1044 00:55:07,520 --> 00:55:09,960 Even Shelcal does around Rs. 300 crores. 1045 00:55:10,040 --> 00:55:11,800 How big is Herbalife? 1046 00:55:11,880 --> 00:55:13,640 It is around Rs. 1,500 crores. 1047 00:55:13,720 --> 00:55:17,240 There are many brands that sell protein supplements. 1048 00:55:17,320 --> 00:55:19,000 In this category, who do we compete with? 1049 00:55:19,080 --> 00:55:21,720 There is Whey Protein, but ours is plant-based. 1050 00:55:21,800 --> 00:55:23,200 - There is Cosmix. - Cosmix 1051 00:55:23,280 --> 00:55:24,160 - You compete with Cosmix. - OZiva 1052 00:55:24,240 --> 00:55:26,800 We invested in OZiva. 1053 00:55:26,880 --> 00:55:28,960 - Unilever has acquired the company. - Yeah, right. 1054 00:55:29,080 --> 00:55:32,120 - Their main product was plant-based protein. - Correct. 1055 00:55:32,200 --> 00:55:34,120 What sets us apart from them? 1056 00:55:34,240 --> 00:55:36,600 A lot of brands that claim to be natural. 1057 00:55:36,680 --> 00:55:39,320 But if you look at the ingredients, it's not really natural. 1058 00:55:39,480 --> 00:55:43,120 Take OZiva for example. It has vitamins and mineral blend. 1059 00:55:43,200 --> 00:55:44,920 A lot of brands also say 1060 00:55:45,120 --> 00:55:46,600 that a lot of other brands claim to be natural, 1061 00:55:46,640 --> 00:55:48,760 but their ingredient says otherwise. 1062 00:55:48,840 --> 00:55:52,200 We ask you to check our ingredients, it's natural. 1063 00:55:56,080 --> 00:55:57,080 This is all for women. 1064 00:55:57,160 --> 00:55:59,560 Yeah! Women 40+. You can check calcium. 1065 00:56:00,080 --> 00:56:01,560 - Very nice packaging. - Thanks a lot, Namita. 1066 00:56:01,600 --> 00:56:03,320 Really nice packaging. 1067 00:56:04,760 --> 00:56:06,400 Which plant protein is delicious? 1068 00:56:06,480 --> 00:56:08,400 Because I dislike the taste of plant protein. 1069 00:56:08,480 --> 00:56:10,680 - Coffee is a new launch. - It's a new launch. 1070 00:56:28,000 --> 00:56:31,760 Our intention was that we give them something clean. 1071 00:56:32,240 --> 00:56:35,920 When they are consuming they shouldn't feel any side effects. 1072 00:56:36,120 --> 00:56:37,280 They shouldn't feel nausea... 1073 00:56:37,320 --> 00:56:39,440 Does that happen in another 1074 00:56:39,560 --> 00:56:41,120 - pharmaceutical brand? - Yes! A lot claim 1075 00:56:41,160 --> 00:56:43,120 that they feel nausea when they have iron tablets. 1076 00:56:43,280 --> 00:56:46,200 Our iron comes from curry leaves, and they don't have side effects. 1077 00:56:46,280 --> 00:56:47,640 - Correct! - And constipation. 1078 00:56:47,880 --> 00:56:50,320 - Correct! Constipation also. - That is the biggest complaint. 1079 00:56:52,720 --> 00:56:55,840 - Not just iron, it's the same with calcium. - Correct. 1080 00:56:55,960 --> 00:56:56,960 But you are saying 1081 00:56:57,040 --> 00:57:00,080 - that your iron and calcium products... - Hmm! 1082 00:57:00,280 --> 00:57:02,720 By consuming these, will you not have any of those issues? 1083 00:57:02,800 --> 00:57:05,280 There are two types. There are high dosages 1084 00:57:05,360 --> 00:57:06,960 - that doctors prescribe. - Right! 1085 00:57:07,080 --> 00:57:08,360 That is a drug. 1086 00:57:08,480 --> 00:57:10,360 But ours is a food product. 1087 00:57:10,480 --> 00:57:11,680 So, the dosages we give 1088 00:57:11,800 --> 00:57:14,360 is the daily quantity prescribed 1089 00:57:14,480 --> 00:57:17,400 by ICMR guidelines. 1090 00:57:30,480 --> 00:57:32,440 Efficacy and bioavailability. 1091 00:57:38,440 --> 00:57:42,120 But people generally take dosages of 1 gram per day. 1092 00:57:42,200 --> 00:57:44,880 Because the availability is 5%-10%. 1093 00:57:45,000 --> 00:57:47,600 In 56% you get 10%. 1094 00:57:48,000 --> 00:57:50,000 - Actually, even for pregnant women also... - Yes. 1095 00:57:50,080 --> 00:57:51,800 Doctors prescribe 500 mg, 1096 00:57:51,880 --> 00:57:54,000 which is what we have in this product as well. 1097 00:57:54,200 --> 00:57:56,600 And when it comes to bioavailability, 1098 00:57:56,680 --> 00:57:58,440 this is from algae, right? 1099 00:57:58,520 --> 00:58:02,160 Its bioavailability is better than inorganic calcium. 1100 00:58:02,960 --> 00:58:04,960 What studies have you done 1101 00:58:05,080 --> 00:58:08,000 and what are the reasons to believe you and not others? 1102 00:58:08,680 --> 00:58:12,360 The ingredients we are choosing are from good sources 1103 00:58:12,440 --> 00:58:14,640 that have better bioavailability. 1104 00:58:14,720 --> 00:58:16,720 Because of the nature of the source. 1105 00:58:16,800 --> 00:58:19,480 And marine algae which we mentioned. There is a study. 1106 00:58:19,560 --> 00:58:21,680 There is a study on vitamin E from sunflowers 1107 00:58:21,760 --> 00:58:24,000 that it has better bioavailability. 1108 00:58:24,080 --> 00:58:26,160 The second thing is, when it comes from plants, 1109 00:58:26,240 --> 00:58:28,840 there is something called co-factors. 1110 00:58:36,720 --> 00:58:40,200 So, the co-factors also help in the absorption in the body. 1111 00:58:41,160 --> 00:58:42,760 Have you done trials on your own 1112 00:58:42,840 --> 00:58:45,000 or are you depending on outside studies? 1113 00:58:45,080 --> 00:58:49,080 So, both. The clinical trial is almost about to happen. 1114 00:58:49,160 --> 00:58:50,840 - It's currently going on. - It's going on. 1115 00:58:50,880 --> 00:58:53,800 On what basis are you selling these products and making these claims 1116 00:58:53,880 --> 00:58:55,680 if you don't have any studies to back them up? 1117 00:58:55,960 --> 00:58:58,320 Because both of you aren't food scientists. 1118 00:58:58,400 --> 00:59:00,160 We have an R&D team. 1119 00:59:00,240 --> 00:59:03,480 There are biotechnologists, food scientists, nutritionists 1120 00:59:03,560 --> 00:59:06,000 and also a doctor panel from whom we take advice. 1121 00:59:06,080 --> 00:59:07,840 But this is a big claim 1122 00:59:07,960 --> 00:59:11,360 to say this benefits you without backing any studies. 1123 00:59:11,440 --> 00:59:14,400 Veda, you can't make general statements like that. 1124 00:59:14,760 --> 00:59:15,800 I'll give you one example. 1125 00:59:15,880 --> 00:59:19,120 - The calcium we make is derived from coral. - Correct. 1126 00:59:19,200 --> 00:59:20,400 There is data to show 1127 00:59:20,480 --> 00:59:22,920 - that absorption is better than calcium carbonate. - Right! 1128 00:59:23,000 --> 00:59:25,360 And that is specifically a study of coral calcium 1129 00:59:25,480 --> 00:59:27,400 - versus calcium carbonate. - Right! 1130 00:59:27,520 --> 00:59:29,720 You can't form a generic statement 1131 00:59:31,240 --> 00:59:34,920 - Your pricing is around Rs. 700. - Correct. 1132 00:59:40,360 --> 00:59:42,840 and with your direct competitors 1133 00:59:42,960 --> 00:59:44,280 like OZiva and Wellbeing... 1134 00:59:44,360 --> 00:59:47,440 So, the pharma ones are around Rs. 200-Rs. 300. 1135 00:59:47,520 --> 00:59:49,120 And when it comes to the competition, 1136 00:59:49,200 --> 00:59:51,120 we are about 20% more affordable than them. 1137 00:59:51,200 --> 00:59:53,240 What is your SKU? 1138 00:59:53,320 --> 00:59:55,000 We have 24 SKUs. 1139 00:59:55,720 --> 00:59:58,880 The most selling product is the one for 40+ women. 1140 00:59:59,200 --> 01:00:02,400 It helps them in their menopausal phase. 1141 01:00:10,560 --> 01:00:11,960 - For repeat buying. - Right! 1142 01:00:12,080 --> 01:00:13,720 What has our experience been like in that? 1143 01:00:13,840 --> 01:00:16,680 Our primary customers are women above 40. 1144 01:00:16,760 --> 01:00:18,320 When they are consuming our supplements, 1145 01:00:18,400 --> 01:00:20,440 their symptoms improve. 1146 01:00:20,560 --> 01:00:22,840 So, they feel that if they are not sticking to it, 1147 01:00:22,920 --> 01:00:25,440 they are going to go back to their old lifestyle. 1148 01:00:25,720 --> 01:00:27,680 So, that is helping them build the habit. 1149 01:00:27,760 --> 01:00:29,680 That's why our repeats are good. 1150 01:00:29,800 --> 01:00:30,800 How much is it? 1151 01:00:30,800 --> 01:00:32,600 For a 12-month period, 1152 01:00:32,720 --> 01:00:35,760 out of 100 people in that cohort, 1153 01:00:35,840 --> 01:00:39,600 approximately 35% to 40% return to Earthful. 1154 01:00:39,680 --> 01:00:42,160 So, after 12 months? 1155 01:00:42,600 --> 01:00:44,800 - They've come back at any given point of time. - I know! 1156 01:00:44,840 --> 01:00:46,000 When you take the cumulative 1157 01:00:46,080 --> 01:00:49,800 - of 12 months, 35%-40% is low for this category. - Right. 1158 01:00:54,280 --> 01:00:58,160 Here, people have to buy it once every two months. 1159 01:00:58,240 --> 01:00:59,480 So, what we've seen is 1160 01:00:59,560 --> 01:01:02,720 that in India, people are using one month pack for three months, 1161 01:01:02,840 --> 01:01:04,400 That's your biggest issue. 1162 01:01:04,480 --> 01:01:06,880 Because you mentioned it on your product 1163 01:01:07,000 --> 01:01:08,640 that because this is natural, 1164 01:01:08,760 --> 01:01:11,280 the shelf life after opening is 2 months. 1165 01:01:32,040 --> 01:01:34,320 Because for the best efficacy, people should 1166 01:01:34,440 --> 01:01:36,800 - finish it. - That's not correct. It's very scary. 1167 01:01:39,320 --> 01:01:42,600 It is mainly because people end up using wet hands, 1168 01:01:42,760 --> 01:01:44,520 - don't close them properly... - No! Hold on! 1169 01:01:44,600 --> 01:01:47,880 You are saying, if I open the bottle, 1170 01:01:47,960 --> 01:01:50,600 and I use it for 12 months, 1171 01:01:50,680 --> 01:01:52,240 then it won't go bad. 1172 01:01:52,320 --> 01:01:53,320 - No! - No, it won't. 1173 01:01:53,400 --> 01:01:56,840 Then why are you writing it? Has the FDA asked you to mention it? 1174 01:01:56,920 --> 01:01:59,880 No, we've mentioned 'keep in a cool dry, place.' 1175 01:01:59,960 --> 01:02:01,320 People don't do that. 1176 01:02:01,400 --> 01:02:03,680 That is the issue with every supplement. 1177 01:02:04,000 --> 01:02:07,520 But that doesn't mean you mention 'two months'. 1178 01:02:08,080 --> 01:02:10,640 No, we are not saying it is expiring after two months. 1179 01:02:10,720 --> 01:02:12,280 It is on your bottle. 1180 01:02:12,800 --> 01:02:14,600 For best efficacy. 1181 01:02:14,680 --> 01:02:17,080 Even if you talk about efficacy, 1182 01:02:17,200 --> 01:02:18,960 why will any customer 1183 01:02:19,160 --> 01:02:21,720 consume a product that doesn't have efficacy? 1184 01:02:23,240 --> 01:02:25,440 I think what you meant to say 1185 01:02:25,560 --> 01:02:28,640 is to finish this in a month, but this could be misinterpreted 1186 01:02:28,920 --> 01:02:31,640 as referring to the expiry date or the product's efficacy 1187 01:02:31,720 --> 01:02:34,120 as expiry and efficacy in 2 months. 1188 01:02:34,200 --> 01:02:35,920 We will change the wording. 1189 01:02:40,960 --> 01:02:43,840 So, FY22, Rs. 2.5 lakhs. 1190 01:02:44,120 --> 01:02:46,520 In FY23, Rs. 62 lakhs. 1191 01:02:46,600 --> 01:02:48,680 FY24, Rs. 4 crores. 1192 01:02:48,960 --> 01:02:52,720 - FY25, year-to-date, we are at Rs. 7.5 crores. Whoa! 1193 01:02:53,360 --> 01:02:55,040 What is your expected figure for the full year? 1194 01:02:55,080 --> 01:02:56,280 Around Rs. 13 crores. 1195 01:03:29,200 --> 01:03:31,280 In total, we've raised Rs. 8 crores 1196 01:03:31,480 --> 01:03:32,640 - till now. - That's right. 1197 01:03:32,800 --> 01:03:36,320 The first round was Rs. 3 crores which was a CCD round. 1198 01:03:36,440 --> 01:03:38,640 - This was the year 2023. - Okay. 1199 01:03:38,760 --> 01:03:41,000 Cap was Rs. 24.8 crores. 1200 01:03:41,080 --> 01:03:42,680 There was no floor. 1201 01:03:42,760 --> 01:03:46,320 This year, we raised Rs. 5 crores from one angel. 1202 01:03:46,400 --> 01:03:49,000 Rs. 27.7 crores, post-money. 1203 01:03:56,480 --> 01:03:57,720 You increased the valuation 1204 01:03:57,800 --> 01:04:00,520 - 3 times. - How did you come up with the valuation of Rs. 75 crores? 1205 01:04:00,960 --> 01:04:03,400 We got our term sheet in June. 1206 01:04:03,480 --> 01:04:06,520 At that time, we were roughly around Rs 80 lakhs. 1207 01:04:06,640 --> 01:04:08,760 Now, we're around Rs 1.2 crores. 1208 01:04:08,840 --> 01:04:12,800 - So, your revenue has gone up 30 to 40 per cent. - Yeah. - Right. 1209 01:04:12,880 --> 01:04:15,400 - But the valuation has gone up 300 per cent. - Yes. 1210 01:04:16,160 --> 01:04:19,040 We've calculated the valuations in multiples currently. 1211 01:04:19,120 --> 01:04:22,040 - So, it's roughly 4 times. - No, 6.5 times. 1212 01:04:27,240 --> 01:04:29,520 70 per cent is from our website. 1213 01:04:30,480 --> 01:04:33,320 30 per cent is from the other marketplaces. 1214 01:04:33,560 --> 01:04:34,840 What is your hero product? 1215 01:04:34,920 --> 01:04:37,640 - You said it was multivitamins for women over 40 years. - Correct. 1216 01:04:37,720 --> 01:04:41,080 So, what per cent of Rs 13 crores is that product? 1217 01:04:41,160 --> 01:04:42,960 It is currently 45 per cent. 1218 01:04:43,080 --> 01:04:46,200 - One product is 45 per cent of your sales. - Correct. 1219 01:04:46,320 --> 01:04:47,440 Yeah. 1220 01:04:51,280 --> 01:04:53,800 AOV is around Rs 950. 1221 01:05:04,000 --> 01:05:06,520 The other costs are logistics, 11 per cent. 1222 01:05:06,600 --> 01:05:08,720 Performance marketing is 48 per cent. 1223 01:05:08,800 --> 01:05:12,560 Marketplace commissions are the remaining part. 1224 01:05:12,640 --> 01:05:14,080 Around 7 per cent. 1225 01:05:14,160 --> 01:05:16,400 At a CM 2 level, we're breaking even. 1226 01:05:16,520 --> 01:05:19,760 How much are your salaries and other fixed expenses? 1227 01:05:19,840 --> 01:05:21,480 Salaries are 7 per cent. 1228 01:05:21,640 --> 01:05:24,920 Branding and GA constitute an additional 7 per cent. 1229 01:05:25,000 --> 01:05:26,720 What do you do in branding? 1230 01:05:32,520 --> 01:05:33,840 because branding is marketing. 1231 01:05:33,960 --> 01:05:34,680 - Right. - Okay. 1232 01:05:34,760 --> 01:05:35,960 This is ATL. 1233 01:05:42,280 --> 01:05:43,680 You've done something good. 1234 01:05:43,800 --> 01:05:45,720 That is why you're getting 1235 01:05:45,840 --> 01:05:48,960 a sale of one in two rupees from a menopausal product. 1236 01:05:49,160 --> 01:05:52,160 But what unique thing have you figured out in it 1237 01:05:52,280 --> 01:05:54,000 that is helping you succeed? 1238 01:05:54,080 --> 01:05:56,800 It is connected to your long-term vision. 1239 01:05:56,880 --> 01:05:59,240 To have the right to win, 1240 01:05:59,560 --> 01:06:02,400 you might know something that others don't. 1241 01:06:03,040 --> 01:06:05,200 There weren't many products in this space 1242 01:06:05,280 --> 01:06:08,240 that provided nutrients for women above 40 years of age. 1243 01:06:08,320 --> 01:06:10,480 Their calcium needs increase 1244 01:06:10,600 --> 01:06:12,640 because the body doesn't make calcium, 1245 01:06:12,720 --> 01:06:15,240 so it starts taking it from the bones and teeth. 1246 01:06:15,360 --> 01:06:17,480 That is something our product is providing. 1247 01:06:18,160 --> 01:06:19,880 Comparing the sales on your website 1248 01:06:19,960 --> 01:06:21,760 and marketplaces, 1249 01:06:21,920 --> 01:06:23,720 which one is inflicting more losses? 1250 01:06:23,800 --> 01:06:26,720 We don't do marketing on Amazon. 1251 01:06:26,800 --> 01:06:28,520 We are profitable there. 1252 01:06:28,640 --> 01:06:30,280 We're incurring a loss on our website. 1253 01:06:35,600 --> 01:06:38,520 Once the brand grows to be a common name, 1254 01:06:38,600 --> 01:06:40,440 a flywheel is created on Amazon. 1255 01:06:40,520 --> 01:06:43,200 So, organically, Amazon also shows the results in the top searches. 1256 01:06:43,320 --> 01:06:44,720 It gets easier there. 1257 01:06:46,040 --> 01:06:48,160 A company's flywheel is generated 1258 01:06:48,240 --> 01:06:50,840 when its customer experience is exceptional. 1259 01:06:50,920 --> 01:06:54,680 This is why several customers shop for their products. 1260 01:06:54,760 --> 01:06:57,440 Then, that company earns a lot of margin. 1261 01:06:57,560 --> 01:07:00,000 The same margin is then invested 1262 01:07:00,120 --> 01:07:02,440 to improve the customer experience. 1263 01:07:02,520 --> 01:07:06,680 That is how such companies increase their customer base. 1264 01:07:08,320 --> 01:07:10,920 There is a structural issue in your business. 1265 01:07:11,400 --> 01:07:14,680 Your product is being consumed. 1266 01:07:14,760 --> 01:07:16,920 It is to improve health. 1267 01:07:17,000 --> 01:07:20,640 You're assuming that the customers will return to you. 1268 01:07:20,760 --> 01:07:24,760 In a high AOV and a high gross margin category, 1269 01:07:24,840 --> 01:07:28,240 your customers should be increasing your profit pool. 1270 01:07:28,440 --> 01:07:33,280 On D2C, you're spending to bring the same customer back over again. 1271 01:07:33,360 --> 01:07:34,800 That points to one thing. 1272 01:07:34,920 --> 01:07:37,480 The product may not have a strong PMF. 1273 01:07:42,600 --> 01:07:45,200 Before that, we had another product which didn't click, 1274 01:07:45,280 --> 01:07:46,480 and we pulled it back. 1275 01:07:46,560 --> 01:07:50,480 We're still getting 40 per cent repeats from our existing customers. 1276 01:07:50,560 --> 01:07:54,880 The challenge is you might be spending money to bring them back. 1277 01:07:55,040 --> 01:07:56,080 - Hmm. - Okay. 1278 01:07:56,160 --> 01:07:58,920 That is the problem. I am out for that reason. 1279 01:07:59,000 --> 01:08:00,520 - I wish you all the best. - Thank you. 1280 01:08:00,560 --> 01:08:04,200 Sudha and Veda, I don't think you have a PMF issue 1281 01:08:04,320 --> 01:08:05,120 like Kunal said. 1282 01:08:05,200 --> 01:08:07,480 You have indeed incurred losses. 1283 01:08:07,600 --> 01:08:10,800 - But your percental loss is decreasing annually. - Yeah. 1284 01:08:10,880 --> 01:08:14,880 - You've grown rapidly in two years. - Yeah. 1285 01:08:14,960 --> 01:08:17,680 I can see a couple of challenges in this business. 1286 01:08:19,120 --> 01:08:22,080 - Your shelf life is 12 months. - Right. 1287 01:08:22,160 --> 01:08:23,160 You'll bring the product 1288 01:08:23,200 --> 01:08:24,480 from the manufacturer to your warehouse. 1289 01:08:24,480 --> 01:08:26,280 It will reach the consumer from the warehouses. 1290 01:08:26,320 --> 01:08:28,040 There is a chance that it reaches 1291 01:08:28,120 --> 01:08:30,000 - the consumer after three to four months. - Right. 1292 01:08:30,040 --> 01:08:33,320 Secondly, you must've not budgeted 1293 01:08:37,920 --> 01:08:41,320 That's dangerous in a loss-making business. 1294 01:08:42,480 --> 01:08:46,600 Next, if only 35 per cent of people return in a year, 1295 01:08:46,720 --> 01:08:48,480 that's very low. 1296 01:08:48,600 --> 01:08:51,320 I am out for those reasons, but best of luck. 1297 01:08:51,400 --> 01:08:52,200 - Thank you. - Thank you. 1298 01:08:52,280 --> 01:08:54,840 Number one is that the shelf life is 12 months. 1299 01:08:54,960 --> 01:08:56,920 You said the efficacy would decrease. 1300 01:08:57,000 --> 01:08:58,840 Then, you said it would work for 12 months. 1301 01:08:58,920 --> 01:09:01,920 So, you have to be clear about what it is exactly. 1302 01:09:03,160 --> 01:09:05,320 Secondly, you said all plants absorb better. 1303 01:09:05,400 --> 01:09:07,080 Then, I told you about my coral calcium. 1304 01:09:07,160 --> 01:09:08,880 It has to be specific. 1305 01:09:08,960 --> 01:09:10,960 - You cannot put forth general statements. - Right. 1306 01:09:11,880 --> 01:09:14,760 Thirdly, you must do a pre-launch trial 1307 01:09:14,840 --> 01:09:17,920 or a trial within a month or two of the launch. 1308 01:09:18,000 --> 01:09:20,080 Overall, the heart is in the right place. 1309 01:09:20,160 --> 01:09:21,720 All the best, but I am out for today. 1310 01:09:23,280 --> 01:09:26,280 Your differentiation has challenged me. 1311 01:09:26,720 --> 01:09:28,120 I like you both. 1312 01:09:28,240 --> 01:09:31,320 I agree with Vineeta and disagree with Kunal. 1313 01:09:31,400 --> 01:09:33,920 I don't see an issue with your product-market fit. 1314 01:09:35,160 --> 01:09:37,960 My concern is, can we build 1315 01:09:38,040 --> 01:09:40,280 a Rs 1000 crore business with only menopausal products? 1316 01:09:40,520 --> 01:09:44,640 I wanted to know whether or not you have the potential to do it again. 1317 01:09:44,720 --> 01:09:48,080 Do you have the ability to find the following menopausal products? 1318 01:09:48,160 --> 01:09:51,640 It is happening by trial and error in your company right now. 1319 01:09:52,200 --> 01:09:53,760 I have a conditional offer for you. 1320 01:09:54,640 --> 01:09:55,440 Yes. 1321 01:09:55,560 --> 01:09:58,440 In your senior leadership team, 1322 01:09:58,520 --> 01:10:00,360 if you hire someone 1323 01:10:00,440 --> 01:10:03,960 from this industry with insights 1324 01:10:10,480 --> 01:10:12,920 at 2.5 per cent of your company. 1325 01:10:17,880 --> 01:10:20,760 I'm not sure what your right to win is right now. 1326 01:10:21,320 --> 01:10:22,720 Apart from that, for example, 1327 01:10:22,800 --> 01:10:25,360 nutrition that feels like comfort food. 1328 01:10:25,440 --> 01:10:26,560 Hmm. 1329 01:10:26,640 --> 01:10:28,040 I didn't get it. 1330 01:10:31,600 --> 01:10:35,080 You've built an average business by working hard. 1331 01:10:35,160 --> 01:10:36,520 I'm unclear 1332 01:10:36,600 --> 01:10:38,400 how you will create a right to win 1333 01:10:38,480 --> 01:10:40,360 in this highly cluttered category. 1334 01:10:40,440 --> 01:10:43,720 I'm out. Ritesh had made you a generous offer. Good luck. 1335 01:10:45,640 --> 01:10:47,760 - Please give us one minute. - Yes, go ahead. 1336 01:11:07,400 --> 01:11:08,240 [laughing] 1337 01:11:08,360 --> 01:11:09,840 You didn't tell me that before. 1338 01:11:10,720 --> 01:11:12,720 - I understand a little. It's okay. - I'm glad he told us that. 1339 01:11:12,760 --> 01:11:14,040 Glad you told us. 1340 01:11:14,120 --> 01:11:15,360 Tell me about your offer. 1341 01:11:15,440 --> 01:11:18,120 Rs 75 lakhs for 1.5 per cent equity. 1342 01:11:23,160 --> 01:11:26,080 You are also entrepreneurs. You know it's a fair ask. 1343 01:11:27,320 --> 01:11:28,680 How can you say no to that? 1344 01:11:30,800 --> 01:11:32,400 We'll do it at 2.5 per cent. 1345 01:11:50,240 --> 01:11:52,600 - Okay. - Okay, Ritesh. - Deal done! - Deal done! 1346 01:11:52,720 --> 01:11:54,000 All right! 1347 01:12:00,320 --> 01:12:02,000 - Well done. All the best. - Thanks a lot, Ritesh. 1348 01:12:02,040 --> 01:12:03,880 - Thank you so much. - Congratulations. - Yeah. 1349 01:12:04,040 --> 01:12:05,680 Ritesh had a few doubts. 1350 01:12:05,760 --> 01:12:07,400 Ultimately, 1351 01:12:07,480 --> 01:12:11,000 the entrepreneurs should be right for a startup to grow. 1352 01:12:11,080 --> 01:12:14,760 Veda and I have a lot of conviction in this space. 1353 01:12:14,840 --> 01:12:17,000 We have a vision 1354 01:12:17,120 --> 01:12:20,280 to do something good and big. He saw that in us. 1355 01:12:20,360 --> 01:12:22,440 We won't let him down. 1356 01:12:38,160 --> 01:12:42,040 It is portrayed beautifully here, 1357 01:12:42,120 --> 01:12:44,360 behind us on this changemakers' wall. 1358 01:12:44,760 --> 01:12:47,560 We're bringing the change of inclusivity in health and fitness 1359 01:12:47,640 --> 01:12:49,760 with a forward-looking vision. 1360 01:12:50,040 --> 01:12:52,560 Today's changemakers are 1361 01:12:52,640 --> 01:12:54,600 - Sudha and Veda. Hello. - Hi. 1362 01:12:54,680 --> 01:12:55,960 - How are you? - All good. 1363 01:12:56,040 --> 01:12:59,840 - I could relate to many things you said in the tank. - Right. 1364 01:12:59,920 --> 01:13:01,640 Especially when you're approaching your 30s, 1365 01:13:01,680 --> 01:13:04,360 - you start facing a gap in health. - Correct. - Correct. 1366 01:13:04,440 --> 01:13:07,440 - You try to fill the gap with other means. - Correct. 1367 01:13:07,560 --> 01:13:09,040 We were discussing 1368 01:13:09,120 --> 01:13:11,640 - that food is never sufficient. - Right. 1369 01:13:11,760 --> 01:13:14,280 It is inadequate. 1370 01:13:14,400 --> 01:13:17,280 - But there is a stigma associated with supplements. - Yeah. 1371 01:13:17,360 --> 01:13:20,880 Many of the viewers have sent us questions. We'll ask you. 1372 01:13:21,000 --> 01:13:22,600 Food is never enough. 1373 01:13:22,680 --> 01:13:24,760 We still have inadequacies in our nutrition. 1374 01:13:24,840 --> 01:13:28,760 Then, what change can we bring about to ensure our nutrition is balanced. 1375 01:13:28,880 --> 01:13:30,440 At Earthful, we say, 1376 01:13:30,520 --> 01:13:33,360 'Food first, and then, you supplement it.' 1377 01:13:33,440 --> 01:13:37,560 Your plate should be balanced 1378 01:13:37,640 --> 01:13:39,720 with the macros micros and be colourful. 1379 01:13:39,800 --> 01:13:42,920 Then, you need to be regular with the supplements. 1380 01:13:43,000 --> 01:13:44,320 It is like a habit. 1381 01:13:44,440 --> 01:13:48,480 You must sleep, wake up on time, and drink enough water. 1382 01:13:48,560 --> 01:13:50,040 Similarly, you need to consume 1383 01:13:50,120 --> 01:13:51,920 a supplement daily without missing it. 1384 01:13:52,000 --> 01:13:53,320 Things cannot change overnight. 1385 01:13:53,400 --> 01:13:55,920 - You need to do it consistently. - You need to have patience. 1386 01:13:56,080 --> 01:13:59,240 - Amazing. - Do it consistently, and you will see changes. 1387 01:13:59,320 --> 01:14:03,080 I love what you're doing. Similarly, Acko is also changing 1388 01:14:03,160 --> 01:14:05,760 the insurance landscape with its revolutionary offerings. 1389 01:14:05,840 --> 01:14:07,640 With Acko's car insurance, 1390 01:14:07,760 --> 01:14:11,520 you can claim repairs in your preferred GST-registered garage 1391 01:14:11,800 --> 01:14:13,720 and get cashless settlements. 1392 01:14:13,840 --> 01:14:17,320 Also, filing for the claim is simple because it is online. 1393 01:14:17,800 --> 01:14:19,920 Guys, to celebrate your time in the tank 1394 01:14:20,000 --> 01:14:21,400 and your deal, 1395 01:14:21,480 --> 01:14:25,120 here's a memento for you on behalf of Acko and Shark Tank. 1396 01:14:26,120 --> 01:14:27,360 This is for you. 1397 01:14:27,440 --> 01:14:29,440 - Thank you. - Congratulations. 1398 01:14:29,560 --> 01:14:31,240 [camera shutter clicking] 1399 01:14:51,880 --> 01:14:54,360 If there is a podcast or a panel discussion, 1400 01:14:54,440 --> 01:14:58,640 please call the Executive Director of Emcure Pharmaceuticals. 1401 01:14:58,720 --> 01:15:00,040 Namita, do you know you do this? 1402 01:15:00,120 --> 01:15:01,320 You have a new job for me. 1403 01:15:01,440 --> 01:15:03,800 I'm not fired from Emcure yet. 1404 01:15:13,200 --> 01:15:14,240 You also have clarity. 1405 01:15:14,320 --> 01:15:16,880 Many of our viewers know that by now. 1406 01:15:16,960 --> 01:15:19,440 - Hence, they've sent several questions for you. - Okay, sure. 1407 01:15:19,520 --> 01:15:22,120 This question has come from Shiva. 1408 01:15:22,200 --> 01:15:24,560 He said, 'Namita ma'am, I love watching you.' 1409 01:15:42,080 --> 01:15:45,800 a good friend of mine, started this movement, 'Label Padhega India.' 1410 01:15:45,880 --> 01:15:48,920 I think it's fantastic to make India health literate. 1411 01:15:49,040 --> 01:15:51,560 I, too, have started reading labels in detail now. 1412 01:15:51,640 --> 01:15:52,680 For example, 1413 01:15:52,760 --> 01:15:56,880 if there are 2000 calories, you can have only 200 mg of sodium. 1414 01:15:56,960 --> 01:16:00,720 WHO recommends only six teaspoons of sugar. 1415 01:16:34,040 --> 01:16:35,760 See you at Ask the Shark again 1416 01:16:35,840 --> 01:16:37,640 with a new shark and a new question.