1 00:00:19,960 --> 00:00:21,520 [music playing] 2 00:00:45,200 --> 00:00:47,160 [music concludes] 3 00:00:48,160 --> 00:00:50,000 [theme music playing] 4 00:01:12,200 --> 00:01:14,120 [theme music concludes] 5 00:01:14,440 --> 00:01:16,840 Vineeta, you're so tall. 6 00:01:17,360 --> 00:01:19,840 - Your father must be tall too. - Correct. 7 00:01:20,000 --> 00:01:23,000 Ritesh, your smile is so lively. 8 00:01:23,520 --> 00:01:26,400 I guess it runs in your DNA. 9 00:01:27,120 --> 00:01:28,120 That's correct. 10 00:01:28,200 --> 00:01:31,480 We use the word DNA so commonly, 11 00:01:31,560 --> 00:01:34,320 but do you know what it is? 12 00:01:34,960 --> 00:01:35,960 Let me tell you. 13 00:01:36,000 --> 00:01:40,200 DNA is the blueprint on which our body is built and runs. 14 00:01:49,360 --> 00:01:51,720 For example, if our dad, mom 15 00:01:51,800 --> 00:01:54,120 or grandparents suffered from heart disease, 16 00:01:54,360 --> 00:01:56,720 then there's a risk of it getting passed down to us. 17 00:01:57,080 --> 00:01:58,680 If the DNA has a history, 18 00:01:58,960 --> 00:02:00,880 there's a possibility of contracting the disease. 19 00:02:01,080 --> 00:02:06,400 85% of human diseases are linked to defects in the DNA. 20 00:02:12,840 --> 00:02:15,400 to cardiovascular diseases and cancers. 21 00:03:05,520 --> 00:03:07,240 Sharks, it's not like 22 00:03:07,320 --> 00:03:09,600 no DNA tests are available in the market, 23 00:03:09,760 --> 00:03:12,720 but all they tell you are the chances of having a disease. 24 00:03:13,440 --> 00:03:18,920 According to scientific studies, their accuracy is below 40%. 25 00:03:23,200 --> 00:03:26,000 unique population-agnostic test 26 00:03:26,080 --> 00:03:27,640 that uses machine learning 27 00:03:27,720 --> 00:03:30,640 and helps you identify diseases 28 00:03:30,720 --> 00:03:33,960 that can occur due to gene defects. 29 00:03:41,720 --> 00:03:45,280 and make them proactive in their healthcare journey. 30 00:03:45,480 --> 00:03:49,240 To do that, our ask is Rs. 1 crore in investment 31 00:03:49,480 --> 00:03:52,480 against 2.5% equity in our company. 32 00:03:57,040 --> 00:04:00,160 the sweetest route to good health and well-being. 33 00:04:02,360 --> 00:04:05,320 Team SugarStrings, welcome to Shark Tank. 34 00:04:05,400 --> 00:04:06,400 - Thank you. - Thank you. 35 00:04:22,640 --> 00:04:23,760 That was a time when 36 00:04:32,200 --> 00:04:33,200 in Delhi University. 37 00:04:33,280 --> 00:04:34,680 What year was this, Tony? 38 00:04:34,840 --> 00:04:36,480 - In 2008. - All right. 39 00:04:36,600 --> 00:04:40,040 And Rajasekhara Reddy was working for another company 40 00:04:40,120 --> 00:04:43,400 as an application scientist. 41 00:04:48,280 --> 00:04:50,040 How did the idea of the business occur to you? 42 00:04:50,040 --> 00:04:53,120 So, I worked for that company for 4 years. 43 00:04:53,240 --> 00:04:54,240 I became so confident 44 00:04:54,240 --> 00:04:58,600 that I started a genomics company of my own in 2013. 45 00:04:59,480 --> 00:05:04,560 Around 2020, the business was establishing a decent top line. 46 00:05:04,920 --> 00:05:07,440 We were of the opinion that if we wanted to grow it, 47 00:05:07,520 --> 00:05:09,480 we had to get into genetic diagnostics 48 00:05:16,600 --> 00:05:20,000 And he also joined me in Clevergene about eight years ago 49 00:05:20,320 --> 00:05:21,680 as a co-founder and... 50 00:05:21,760 --> 00:05:23,960 - Is Clevergene your old company? - Correct. 51 00:05:24,040 --> 00:05:25,680 - What happened to it? - It's still there, 52 00:05:25,680 --> 00:05:27,280 but we both have exited 53 00:05:27,440 --> 00:05:29,360 - and other shareholders are taking it forward. - Okay. 54 00:05:29,360 --> 00:05:30,800 Do you no longer have a stake in it? 55 00:05:31,360 --> 00:05:34,240 We do, but we don't get involved in active operations. 56 00:05:39,600 --> 00:05:40,800 [tense music playing] 57 00:05:41,080 --> 00:05:43,560 - Don't you hold any post there? Director? - No. Nothing. 58 00:05:43,640 --> 00:05:45,200 - No post... - Who runs that company? 59 00:05:45,320 --> 00:05:47,240 Investors and co-founders 60 00:05:47,320 --> 00:05:49,800 - and all of them... - There are other co-founders who are running it. 61 00:05:49,800 --> 00:05:51,400 - Yes. - What's your stake in it? 62 00:05:51,520 --> 00:05:53,160 I have about 20%, sir. 63 00:05:53,240 --> 00:05:54,680 - And you? - 6%. 64 00:05:54,760 --> 00:05:57,120 - Who's the co-founder now? - Ria Dutta. 65 00:05:57,240 --> 00:05:59,560 - Ria Dutta? - She's the third co-founder. 66 00:05:59,640 --> 00:06:00,920 So, we were three co-founders. 67 00:06:01,000 --> 00:06:03,160 - Are you related to her? - Ria is my wife. 68 00:06:03,240 --> 00:06:05,160 [all laugh] 69 00:06:07,120 --> 00:06:08,520 How much stake does your wife have? 70 00:06:08,640 --> 00:06:09,920 She's got about 30%. 71 00:06:10,080 --> 00:06:12,800 You both have 50% stake. That makes it your company. 72 00:06:16,560 --> 00:06:18,120 How did they let you leave? 73 00:06:22,600 --> 00:06:26,120 We gave a shareholding to those investors in this company. 74 00:06:26,200 --> 00:06:27,200 Oh, those investors... 75 00:06:27,280 --> 00:06:29,760 So they can participate in both companies in case of an upside. 76 00:06:29,920 --> 00:06:31,680 - Not really. - Did you give your wife shares too? 77 00:06:31,720 --> 00:06:32,840 No. 78 00:06:32,920 --> 00:06:34,320 Tell us the split. 79 00:06:34,400 --> 00:06:37,280 - We three have 20.66% each. - Hmm. 80 00:06:37,400 --> 00:06:40,240 And we have a 10% ESOP hold. 81 00:06:40,320 --> 00:06:44,040 Okay. And how much shareholding did you give to those investors? 82 00:06:44,120 --> 00:06:45,000 28%. 83 00:06:45,080 --> 00:06:47,120 28% without an investment, right? 84 00:06:47,360 --> 00:06:49,280 But then, they are the ones who invested 85 00:06:49,360 --> 00:06:51,840 in the R&D of the whole idea. 86 00:06:52,040 --> 00:06:54,560 In total, they put about Rs. 7 crores in Clevergene 87 00:06:55,240 --> 00:06:56,920 of which Rs. 2.6 crores 88 00:06:57,040 --> 00:06:59,400 was exclusively put for the development of ideas. 89 00:07:05,280 --> 00:07:06,920 I'm a doctor of human genetics. 90 00:07:07,080 --> 00:07:08,600 Okay. What's your qualification? 91 00:07:08,680 --> 00:07:12,000 MSc and PhD from Punjab University, Patiala. 92 00:07:16,200 --> 00:07:18,080 You're the CEO. What is Dhaneesh's role? 93 00:07:18,200 --> 00:07:19,720 Sir, when we got this idea... 94 00:07:19,880 --> 00:07:23,480 So, it's a good idea. There's a lot of scope to expand. 95 00:07:24,360 --> 00:07:27,000 The problem is that fundamentally, we're both scientists 96 00:07:27,120 --> 00:07:30,280 and communicating this requires skill, right. 97 00:07:39,160 --> 00:07:41,280 But you two are communicating better than him. 98 00:07:41,360 --> 00:07:42,880 I've done visual communication. 99 00:07:42,960 --> 00:07:44,080 - Visual communication! - Right. 100 00:07:44,080 --> 00:07:46,800 - You took 20% to make this! - [all laugh] 101 00:07:46,920 --> 00:07:47,920 Unbelievable! 102 00:07:48,080 --> 00:07:50,760 Had you come to us, we'd have done it for 5-10%. 103 00:07:51,360 --> 00:07:54,560 Could you tell us conceptually what genetic mutation is 104 00:07:54,640 --> 00:07:57,080 - and why different markets need a different one? - Sure. 105 00:07:57,200 --> 00:08:01,360 And which diseases can we predict from these genetic mutations? 106 00:08:09,440 --> 00:08:11,200 we call it a mutation, right. 107 00:08:11,320 --> 00:08:14,080 If the mutation is in a functional region, 108 00:08:14,160 --> 00:08:16,120 it will render the protein dysfunctional 109 00:08:16,400 --> 00:08:19,360 and because of that, a disease can occur. 110 00:08:19,440 --> 00:08:21,160 That's the basic fundamental. 111 00:08:22,280 --> 00:08:25,840 The core function of the algorithm we've developed 112 00:08:25,920 --> 00:08:27,760 is to determine 113 00:08:27,840 --> 00:08:32,480 whether a DNA mutation will cause a disease or not. 114 00:08:48,120 --> 00:08:52,600 Heart... Cancer and cancer syndromes that could cause cancer. 115 00:09:30,120 --> 00:09:35,520 - If our algorithm confirms it's a pathogenic mutation... - Yes. 116 00:09:35,640 --> 00:09:39,080 So, if you have it, you are bound to get cancer. 117 00:09:39,240 --> 00:09:40,760 - *** percent? - Yes. 118 00:09:40,840 --> 00:09:44,000 That's the *** percent specificity that we have. 119 00:09:45,320 --> 00:09:46,160 Wow! 120 00:09:46,280 --> 00:09:49,000 Are you saying you can predict beforehand if someone's 121 00:09:49,080 --> 00:09:50,720 - going to get cancer. - Yes. 122 00:09:50,840 --> 00:09:53,320 And nobody else in the market is currently able to do that. 123 00:09:53,440 --> 00:09:54,960 Their accuracy is low. 124 00:09:55,040 --> 00:09:57,040 - You said their accuracy is 40%. - Right. 125 00:09:57,200 --> 00:09:59,800 - Even lower. - Do we have any proof or papers? 126 00:09:59,920 --> 00:10:02,080 - Anything? - We'll provide you the literature. 127 00:10:07,160 --> 00:10:08,680 There is Exact Sciences 128 00:10:08,760 --> 00:10:11,840 which does about $2.5 billion in revenue. 129 00:10:12,400 --> 00:10:16,000 And another poster child or a very famous company was 23andMe 130 00:10:16,080 --> 00:10:17,720 but their problem was that 131 00:10:17,800 --> 00:10:20,800 their product accuracy was not really appreciating. 132 00:10:21,040 --> 00:10:24,240 AI? Why is the name SugarStrings.ai? 133 00:10:24,720 --> 00:10:27,600 DNA is a string of sugars, ribose. 134 00:10:27,720 --> 00:10:29,520 So, Sugar Strings. 135 00:10:29,760 --> 00:10:30,760 And why AI? 136 00:10:31,280 --> 00:10:32,440 AI because we're using 137 00:10:32,800 --> 00:10:35,120 machine learning algorithms to do this. 138 00:10:35,200 --> 00:10:36,520 Until now, people... 139 00:10:36,600 --> 00:10:40,840 They had someone known as genetic analysts or genome analysts 140 00:10:40,960 --> 00:10:44,240 who sit and manually filter these variants 141 00:10:44,360 --> 00:10:45,880 and then, they prepare the report, 142 00:10:46,200 --> 00:10:47,960 which also is not scalable. 143 00:10:48,200 --> 00:10:53,360 So, we are bringing in ML algorithms to do all that prioritisation. 144 00:10:54,320 --> 00:10:55,720 How many people's diseases 145 00:10:55,800 --> 00:10:58,280 have you successfully predicted so far? 146 00:10:58,400 --> 00:11:02,440 We have worked on 3,500 known disease samples 147 00:11:03,000 --> 00:11:06,000 to validate and get the specificity and sensitivity itself. 148 00:11:19,880 --> 00:11:21,920 12% of people had cancer. 149 00:11:34,720 --> 00:11:37,920 - they had a probability of having cancer. - 12%. 150 00:11:38,920 --> 00:11:41,160 Enough time has not passed yet. 151 00:11:41,240 --> 00:11:43,280 I'm assuming those 12% people... 152 00:11:43,360 --> 00:11:46,160 - 12% of 32 is roughly 4. - 4 people. 153 00:11:46,280 --> 00:11:48,720 Nothing has been diagnosed for the 4 people so far 154 00:11:48,840 --> 00:11:50,360 who you predicted might get cancer 155 00:11:50,440 --> 00:11:52,320 - as only six months have passed. - Correct. 156 00:11:52,440 --> 00:11:53,600 How much does one test cost? 157 00:11:53,680 --> 00:11:55,080 Rs. 58,000. 158 00:11:57,240 --> 00:11:58,800 And it's a once-in-a-lifetime test. 159 00:11:58,960 --> 00:12:00,000 Oh my God! 160 00:12:02,240 --> 00:12:04,640 Taking our test is very simple. 161 00:12:05,160 --> 00:12:06,840 Visit our website 162 00:12:07,160 --> 00:12:10,640 and add the test to the cart. 163 00:12:10,760 --> 00:12:14,040 Fill in your details and make the payment. 164 00:12:14,200 --> 00:12:16,400 As soon as your test is booked, 165 00:12:16,680 --> 00:12:20,720 this Buccal Swab Collection Kit will arrive at your doorstep. 166 00:12:21,320 --> 00:12:23,280 In this kit, there are two things. 167 00:12:23,360 --> 00:12:25,080 There's a simple instruction manual 168 00:12:25,160 --> 00:12:27,040 which tells you how to take a sample 169 00:12:27,120 --> 00:12:29,400 and what are the things to be avoided. 170 00:12:29,640 --> 00:12:31,960 Then, there's the Buccal Swab Collection Kit. 171 00:12:32,040 --> 00:12:33,040 Okay. 172 00:12:33,120 --> 00:12:36,480 It contains a swab and a DNA-preserving solution. 173 00:12:36,760 --> 00:12:40,440 You've to collect the swab according to the instructions 174 00:12:40,640 --> 00:12:42,240 and then tightly seal it in this. 175 00:12:42,320 --> 00:12:43,800 - Like a COVID test. - Correct. 176 00:12:43,880 --> 00:12:45,560 It's a Rs. 58,000 test! 177 00:12:45,640 --> 00:12:47,080 You could've sent a technician home. 178 00:12:47,160 --> 00:12:48,600 This will predict a disease like cancer. 179 00:12:48,640 --> 00:12:50,640 Must he register online and take a test by himself? 180 00:12:50,920 --> 00:12:53,800 So, in Bengaluru, we're sending somebody. 181 00:12:53,880 --> 00:12:55,720 If they're ordering from other parts of the country, 182 00:12:55,760 --> 00:12:57,760 we courier the kit to them. 183 00:12:57,840 --> 00:13:01,240 Imagine. The person spends a bomb and then has to follow instructions! 184 00:13:01,320 --> 00:13:04,640 Even if you do a test for COVID, they send someone home. 185 00:13:04,720 --> 00:13:07,640 Once we reach that scale, we can do that. 186 00:13:08,480 --> 00:13:11,640 When you've collected the sample, 187 00:13:20,640 --> 00:13:23,200 Sharks, as you can see in the primary findings, 188 00:13:23,280 --> 00:13:24,400 in this particular case, 189 00:13:24,480 --> 00:13:26,520 there are no hereditary cancers. 190 00:13:26,720 --> 00:13:28,840 The heart disease shows Brugada syndrome. 191 00:13:29,120 --> 00:13:31,760 If you scroll down to the bottom of the report, 192 00:13:31,840 --> 00:13:35,960 you can see which defect is causing the Brugada syndrome 193 00:13:36,080 --> 00:13:38,000 in which particular gene. 194 00:13:46,840 --> 00:13:50,800 Brugada syndrome can contribute to up to 20% of such cases. 195 00:13:57,720 --> 00:14:00,720 - Yes. In fact, there are doctors who've taken this test. - Really! 196 00:14:00,800 --> 00:14:03,360 They also got their risks identified. 197 00:14:03,440 --> 00:14:08,200 So, we're very confident in saying this is a clinically relevant test. 198 00:14:10,640 --> 00:14:13,080 You charge Rs. 58,000 for a test. 199 00:14:13,200 --> 00:14:14,800 What does your cost come to? 200 00:14:14,880 --> 00:14:17,320 30% is our direct cost. 201 00:14:17,800 --> 00:14:20,360 This includes the DNA sequencing, the kit charge, 202 00:14:20,480 --> 00:14:21,520 transportation and others. 203 00:14:21,600 --> 00:14:24,160 We have a gross margin of about 70% at the moment, 204 00:14:24,240 --> 00:14:25,240 at the MRP. 205 00:14:26,200 --> 00:14:27,520 Because you said MRP, 206 00:14:27,600 --> 00:14:29,400 - do you sell at a discount? - Yes. 207 00:14:29,520 --> 00:14:31,600 We're not getting into a discount business, 208 00:14:31,680 --> 00:14:35,360 but we're also building a network of wellness centres and doctors... 209 00:14:35,440 --> 00:14:37,080 - Giving them channel margins. - Who would also refer. 210 00:14:37,080 --> 00:14:38,240 So, they get a margin. 211 00:14:38,320 --> 00:14:40,200 - How much is that? - 15%. 212 00:14:40,280 --> 00:14:43,120 How did you sell these 32 kits? 213 00:14:43,200 --> 00:14:45,520 This is mainly through our direct connections. 214 00:14:45,600 --> 00:14:47,280 You sold them to known people. 215 00:14:47,360 --> 00:14:50,360 Plus also extended people who came through the website. 216 00:14:50,440 --> 00:14:52,960 Will you focus more on expanding globally or in India? 217 00:14:53,040 --> 00:14:54,440 Currently, we will start in India. 218 00:14:54,520 --> 00:14:56,640 We'll start in India, mature here 219 00:14:56,760 --> 00:14:58,400 and then, we'll figure out how to go... 220 00:14:58,480 --> 00:15:01,520 How many people do you think will spend Rs. 58,000 221 00:15:01,880 --> 00:15:03,040 on a diagnostic test? 222 00:15:03,640 --> 00:15:04,720 We have one... 223 00:15:04,800 --> 00:15:06,080 By the third year, 224 00:15:06,200 --> 00:15:08,480 we're confident we'll be able 225 00:15:08,560 --> 00:15:11,320 to get at least 25,000 people to take the test. 226 00:15:11,400 --> 00:15:12,920 - That's our first... - Annually? 227 00:15:13,040 --> 00:15:14,040 Annually. 228 00:15:14,920 --> 00:15:18,200 25,000 people each buying at a cost of Rs. 58,000. 229 00:15:18,360 --> 00:15:19,360 Seems tough. 230 00:15:20,800 --> 00:15:24,160 How many people in our country are detected with cancer every year? 231 00:15:24,240 --> 00:15:26,680 - Do you have a number? - 1.6 million people. 232 00:15:31,160 --> 00:15:32,720 and you're able to apply your algorithm. 233 00:15:32,800 --> 00:15:37,680 How many out of 1.6 million people will you predict to have cancer? 234 00:15:37,760 --> 00:15:39,400 Let me make a guesstimate here. 235 00:15:39,480 --> 00:15:40,720 Yes, give me a guesstimate. 236 00:15:40,800 --> 00:15:42,360 Generally, what is said 237 00:15:42,440 --> 00:15:44,080 is that in cancer, 238 00:15:44,280 --> 00:15:47,880 the genetic component can be anywhere between 20 to 30%. 239 00:15:54,080 --> 00:15:56,560 So, if a person is going to have cancer in 2035, 240 00:15:56,680 --> 00:15:58,080 - you can predict that today. - Correct. 241 00:15:58,120 --> 00:15:59,120 Of course. 242 00:15:59,280 --> 00:16:00,880 If we can predict that by 2035, 243 00:16:00,960 --> 00:16:04,200 - 3 lakh people will have cancer every year... - Yes. 244 00:16:04,280 --> 00:16:06,600 It should be a big research paper as far as I can understand. 245 00:16:06,640 --> 00:16:07,680 - Correct... - I still don't... 246 00:16:07,760 --> 00:16:10,720 It's not necessary to put everything in a research paper. 247 00:16:10,800 --> 00:16:14,040 The moment you disclose how you developed this, 248 00:16:14,240 --> 00:16:16,320 - someone else can develop it too. - Correct. 249 00:16:16,400 --> 00:16:17,600 It is an algorithm. 250 00:16:18,600 --> 00:16:21,680 Is there a certification body of global repute 251 00:16:21,920 --> 00:16:24,200 who we can approach with our tests, 252 00:16:24,360 --> 00:16:27,480 literature, research and results 253 00:16:27,800 --> 00:16:29,760 and ask them to validate this. 254 00:16:30,080 --> 00:16:31,960 Unfortunately, none currently exist. 255 00:16:32,960 --> 00:16:36,120 What 23andMe claims is their claim. 256 00:16:36,520 --> 00:16:39,600 What Exact Sciences claims is their claim. 257 00:16:39,840 --> 00:16:41,640 What we claim is our claim. 258 00:16:41,800 --> 00:16:43,120 That is the state at the moment. 259 00:16:43,560 --> 00:16:46,360 At what stage do most people realise they have cancer? 260 00:16:46,560 --> 00:16:48,320 In India, it is... 261 00:16:48,400 --> 00:16:52,680 75% of them identify either in stage 3 or stage 4. 262 00:16:57,360 --> 00:16:59,560 You could reduce your margin and widen your reach. 263 00:16:59,640 --> 00:17:01,360 - Did you think of that? - It is a possibility. 264 00:17:01,400 --> 00:17:04,240 We decided the price of Rs. 58,000... 265 00:17:04,320 --> 00:17:06,160 We kept it as a glass ceiling 266 00:17:06,360 --> 00:17:08,200 and we're optimising things at the moment 267 00:17:08,320 --> 00:17:10,720 as we talk to customers and so on. 268 00:17:12,520 --> 00:17:15,000 Guys, people still don't buy insurance in India. 269 00:17:15,080 --> 00:17:17,200 It's tough to get insurance, right? 270 00:17:17,560 --> 00:17:20,480 Spending Rs. 58,000 on a test looks a bit tough. 271 00:17:20,760 --> 00:17:22,000 You seem genuine, 272 00:17:22,440 --> 00:17:25,160 but I don't understand whether this will be genuine. 273 00:17:26,160 --> 00:17:28,680 There's no certification. I don't know if this is accurate. 274 00:17:28,800 --> 00:17:30,560 I even get scared. 275 00:17:30,760 --> 00:17:32,440 Three strangers establish a company. 276 00:17:32,600 --> 00:17:35,080 They come to me, do a test 277 00:17:35,160 --> 00:17:36,400 and run their algo on it, 278 00:17:36,520 --> 00:17:38,920 but I don't know if the algo works correctly. 279 00:17:39,040 --> 00:17:42,240 If it highlights a problem, my life will be ruined. 280 00:17:42,320 --> 00:17:43,520 I'll go mad thinking about it. 281 00:17:43,640 --> 00:17:45,920 For all you know, their algo wasn't up to the mark 282 00:17:46,000 --> 00:17:47,800 and so it gave mixed and inaccurate results. 283 00:17:47,960 --> 00:17:50,320 Frankly speaking, I wouldn't undergo a test for Rs. 58,000 284 00:17:50,440 --> 00:17:52,640 unless my doctor insisted and took a few tests himself. 285 00:17:52,800 --> 00:17:55,320 There's still time before this gets authenticated. 286 00:17:55,520 --> 00:17:58,160 Since that trust did not build, unfortunately, I'm out. 287 00:17:59,360 --> 00:18:02,720 I believe Rs. 58,000 is not going to be a barrier for you. 288 00:18:03,280 --> 00:18:06,880 Something like predicting cancer and heart attacks in India, 289 00:18:06,960 --> 00:18:09,520 - which is the heart attack capital of the world... - Correct. 290 00:18:10,000 --> 00:18:10,840 It is... 291 00:18:10,920 --> 00:18:14,080 You're solving something big and Rs. 58,000 is nothing for it. 292 00:18:14,760 --> 00:18:16,400 My challenge is this. 293 00:18:16,520 --> 00:18:19,840 - Your bigger point is credibility. - Yes. 294 00:18:19,960 --> 00:18:21,880 And you're not solving that. 295 00:18:22,000 --> 00:18:24,040 You're standing here 296 00:18:24,120 --> 00:18:26,080 and selling this product for Rs. 58,000 in India 297 00:18:26,160 --> 00:18:27,160 and wasting time. 298 00:18:28,080 --> 00:18:31,040 Say America or some of these markets, 299 00:18:31,120 --> 00:18:35,720 where people take these tests on a very large scale 300 00:18:35,800 --> 00:18:37,440 if you were to deploy it there, 301 00:18:37,520 --> 00:18:39,640 - then $700 is negligible. - Correct. 302 00:18:39,720 --> 00:18:42,760 And you could conduct these tests on thousands of people, 303 00:18:42,960 --> 00:18:45,920 use that validity along with showing other data points, 304 00:18:46,120 --> 00:18:47,280 and prove its efficacy. 305 00:18:47,360 --> 00:18:49,440 India should be your secondary 306 00:18:49,680 --> 00:18:51,920 or future later market 307 00:18:52,880 --> 00:18:55,440 because there's no competition here 308 00:18:55,520 --> 00:18:57,240 and you can't be benchmarked, 309 00:18:57,360 --> 00:18:58,960 and what you're saying 310 00:18:59,040 --> 00:19:00,280 will always be perceived 311 00:19:00,360 --> 00:19:01,920 as something that is too good to be true. 312 00:19:01,960 --> 00:19:03,200 Yes? For that reason, I'm out. 313 00:19:05,200 --> 00:19:09,920 Well, I feel that your market focus, 314 00:19:10,000 --> 00:19:12,680 which is a small market in itself in terms of wallet share, 315 00:19:12,800 --> 00:19:15,000 and along with it, you're focusing on India, 316 00:19:15,120 --> 00:19:16,720 is quite in the early stages. 317 00:19:16,960 --> 00:19:19,760 I believe it's great you're focusing on India 318 00:19:20,080 --> 00:19:22,840 but try to get your proprietary data. 319 00:19:22,920 --> 00:19:25,240 - Sure. - I'll give you all the help you need. 320 00:19:25,400 --> 00:19:28,040 But because that's not decided, for that reason, I'm out. 321 00:19:28,520 --> 00:19:29,800 - Okay. - Thank you. 322 00:19:30,560 --> 00:19:34,760 I had one question from the start which I could not get past. 323 00:19:35,400 --> 00:19:37,040 I think it is your claim 324 00:19:37,120 --> 00:19:41,160 that you can predict with *** percent accuracy 325 00:19:41,240 --> 00:19:43,920 versus 40% which is that of other players in the market. 326 00:19:44,080 --> 00:19:46,880 If you could actually do that, 327 00:19:46,960 --> 00:19:49,280 as per my understanding, it's definitely a research paper 328 00:19:49,400 --> 00:19:50,840 which is of course globally acclaimed 329 00:19:50,880 --> 00:19:53,240 given that you can predict diseases with such high accuracy. 330 00:19:54,080 --> 00:19:55,840 I had a strong doubt about that. 331 00:19:55,920 --> 00:19:57,920 Also, you didn't present conclusive data 332 00:19:58,000 --> 00:19:59,560 for me to be able to trust your claim. 333 00:20:00,040 --> 00:20:01,920 That was the biggest barrier for me. 334 00:20:02,000 --> 00:20:03,560 And for that reason, I am out. 335 00:20:04,520 --> 00:20:06,200 I unfortunately feel 336 00:20:06,280 --> 00:20:09,040 you're building the company in sort of an echo chamber. 337 00:20:09,360 --> 00:20:10,160 Okay. 338 00:20:10,280 --> 00:20:11,800 You're an impressive team. 339 00:20:11,880 --> 00:20:13,560 Your opinions are very strong 340 00:20:13,680 --> 00:20:15,840 and your research and experience are backed 341 00:20:16,280 --> 00:20:19,800 but I feel that internally, you're not challenging each other. 342 00:20:21,080 --> 00:20:23,360 And because you're not challenging each other, 343 00:20:23,440 --> 00:20:25,480 you're not able to see beyond the science 344 00:20:26,000 --> 00:20:30,240 - and turn this idea into a business. - Okay. 345 00:20:30,320 --> 00:20:32,480 This is a huge leap 346 00:20:32,560 --> 00:20:33,920 be it pricing, 347 00:20:34,240 --> 00:20:36,840 - or to establish the reason to believe... - Correct. 348 00:20:36,920 --> 00:20:41,040 I feel the product and idea are promising 349 00:20:41,120 --> 00:20:42,600 and there is a need for it, 350 00:20:43,000 --> 00:20:45,320 - but it isn't a business yet. - Okay. 351 00:20:45,600 --> 00:20:47,080 For that reason, I'm out. 352 00:20:47,320 --> 00:20:48,480 - Thank you. - Good luck. 353 00:20:48,560 --> 00:20:49,920 - Many best wishes. - All the best. 354 00:20:50,160 --> 00:20:51,480 [solemn music playing] 355 00:20:52,200 --> 00:20:55,200 'The accuracy we claimed is genuine' 356 00:20:55,400 --> 00:20:57,120 'and we have data to back it.' 357 00:20:57,200 --> 00:20:59,760 I guess we should have brought that data along 358 00:20:59,840 --> 00:21:02,840 or we should have presented that in some other way. 359 00:21:02,920 --> 00:21:06,280 'The other thing is, these are scientific facts.' 360 00:21:06,400 --> 00:21:09,040 We probably could have figured out a way 361 00:21:09,120 --> 00:21:11,440 to explain it in a simpler manner. 362 00:21:11,520 --> 00:21:13,000 [up-tempo music playing] 363 00:21:17,800 --> 00:21:19,240 [music concludes] 364 00:21:19,480 --> 00:21:22,840 Welcome to ACKO Change Makers where we really welcome change 365 00:21:22,960 --> 00:21:26,240 and that is beautifully depicted on the wall behind me, 366 00:21:26,520 --> 00:21:28,400 our Change Makers wall. 367 00:21:28,680 --> 00:21:31,000 Through modern advancements and smart techniques, 368 00:21:31,080 --> 00:21:32,880 we're empowering change 369 00:21:32,960 --> 00:21:36,200 and today's Change Maker is Team SugarStrings. 370 00:21:36,280 --> 00:21:37,400 - Welcome. - Thank you. 371 00:21:37,480 --> 00:21:38,920 We're aware of diseases. 372 00:21:42,080 --> 00:21:44,920 - but not at what age they ought to be performed. - Okay. 373 00:21:45,000 --> 00:21:48,760 - What critical illnesses are connected with our DNA? - Right. 374 00:21:48,840 --> 00:21:52,960 Could you tell us what changes we need to make and at what age? 375 00:21:53,040 --> 00:21:56,640 - We know breast cancer is prevalent among females. - Hmm. 376 00:21:56,720 --> 00:21:59,680 - That is the major cause of death in females. - Hmm. 377 00:22:00,160 --> 00:22:01,640 In females... 378 00:22:01,760 --> 00:22:03,080 First and foremost, 379 00:22:03,160 --> 00:22:04,960 starting puberty, 380 00:22:05,040 --> 00:22:07,000 every girl must know 381 00:22:07,080 --> 00:22:10,360 - how to perform a self-breast exam. - Correct. 382 00:22:10,520 --> 00:22:14,040 The next thing is baseline risk. 383 00:22:14,120 --> 00:22:18,840 - Suppose, someone in your family had breast cancer. - Hmm. 384 00:22:18,960 --> 00:22:22,400 So, that person needs to establish their baseline 385 00:22:22,520 --> 00:22:25,160 to understand if they could suffer from it too. 386 00:22:25,240 --> 00:22:27,280 There are specific tests available for it 387 00:22:27,360 --> 00:22:28,400 that they could undergo. 388 00:22:28,480 --> 00:22:31,200 Thank you for bringing about this change in the industry. 389 00:22:31,560 --> 00:22:33,200 Just as they're bringing about a change, 390 00:22:33,280 --> 00:22:35,120 ACKO too, with its revolutionary offerings, 391 00:22:35,200 --> 00:22:37,120 is changing the landscape of insurance. 392 00:22:37,200 --> 00:22:40,480 Now, only pay for a car at the showroom while buying one. 393 00:22:40,560 --> 00:22:42,480 Don't fall prey to pressure and pay for car insurance. 394 00:22:42,520 --> 00:22:43,560 I bet you didn't know 395 00:22:43,640 --> 00:22:46,240 that buying car insurance from the showroom is not mandatory. 396 00:22:46,360 --> 00:22:48,280 Buy car insurance from ACKO 397 00:22:48,360 --> 00:22:50,200 and save up to Rs. 36,000. 398 00:22:50,440 --> 00:22:51,600 To honour your efforts, 399 00:22:51,680 --> 00:22:54,400 ACKO and Shark Tank wish to give you a memento. 400 00:22:54,840 --> 00:22:56,040 This is for you. 401 00:22:56,360 --> 00:22:57,720 Thank you for doing what you do. 402 00:22:57,920 --> 00:22:59,040 - Thank you. - Thank you. 403 00:23:01,000 --> 00:23:02,000 [camera shutter clicking] 404 00:23:02,400 --> 00:23:05,360 'Shark Tank India co-presented by ACKO Insurance,' 405 00:23:05,440 --> 00:23:07,480 'PokerBaazi and Swiggy Instamart.' 406 00:23:07,560 --> 00:23:10,200 'Co-powered by Adani and Jaquar Bath & Light.' 407 00:23:10,280 --> 00:23:14,200 'Partners Rayzon Solar, ICICI Direct and Lenskart.' 408 00:23:14,400 --> 00:23:15,760 [theme music playing] 409 00:23:38,560 --> 00:23:40,520 [theme music concludes] 410 00:23:41,240 --> 00:23:42,840 Sharks, did you know 411 00:23:42,960 --> 00:23:46,760 that over 65,000 people in India become investors daily? 412 00:23:47,720 --> 00:23:49,840 Can't believe it? You will. 413 00:23:50,160 --> 00:23:51,360 I'll tell you a fact. 414 00:23:51,600 --> 00:23:55,160 In India, more than 65,000 babies are born every day 415 00:24:03,960 --> 00:24:06,480 A newborn's skin is highly sensitive. 416 00:24:06,760 --> 00:24:09,960 From birth to pre-school, this three-year duration 417 00:24:10,160 --> 00:24:11,840 will see a huge need for baby essentials 418 00:24:11,920 --> 00:24:15,120 such as diapers, swaddles, blankets and clothing. 419 00:24:15,520 --> 00:24:17,680 The options available in the market, 420 00:24:17,920 --> 00:24:20,200 apart from being of substandard quality, 421 00:24:20,280 --> 00:24:21,840 aren't able to offer the complete range. 422 00:24:22,400 --> 00:24:24,120 Some brands are only making diapers, 423 00:24:24,240 --> 00:24:26,400 while some are making only baby clothes 424 00:24:26,480 --> 00:24:27,640 and some are making blankets. 425 00:24:27,760 --> 00:24:30,440 We at Moms Home are solving that problem. 426 00:24:34,720 --> 00:24:35,800 We're from Jaipur 427 00:24:35,880 --> 00:24:37,080 and we bring to you Moms Home, 428 00:24:59,200 --> 00:25:01,280 and so are our products. 429 00:25:01,400 --> 00:25:03,760 It's as pure as mom's love. 430 00:25:04,760 --> 00:25:07,520 We make over 50 baby products. 431 00:25:07,640 --> 00:25:09,520 Our products are available on our website, 432 00:25:17,480 --> 00:25:19,920 and chose Moms Home as the first choice for their babies. 433 00:25:20,240 --> 00:25:22,560 Sharks, our vision is as follows. 434 00:25:22,760 --> 00:25:26,880 For any parent, the first start-up of their life is their baby 435 00:25:26,960 --> 00:25:28,760 and we want to make that process easier 436 00:25:28,840 --> 00:25:32,640 and make the safest and softest baby products available to them. 437 00:25:32,720 --> 00:25:35,520 We have to come to you with our ask 438 00:25:35,600 --> 00:25:38,880 of Rs. 75 lakhs for 1% equity. 439 00:25:45,160 --> 00:25:47,200 My start-up was born last year. 440 00:25:48,120 --> 00:25:48,960 [laughter] 441 00:25:49,040 --> 00:25:50,320 Congratulations. 442 00:25:50,760 --> 00:25:52,000 Vaibhav! Bhupendra! 443 00:25:52,240 --> 00:25:55,040 - Welcome to Shark Tank Season 4. - Thank you, sir. 444 00:25:55,120 --> 00:25:56,880 Could you tell us about your journey? 445 00:25:56,960 --> 00:26:00,440 Why did you start this business and how did you get here? 446 00:26:00,520 --> 00:26:02,960 I did my MBA from IIM Indore. 447 00:26:09,920 --> 00:26:12,520 which was handled by Bhupendra. 448 00:26:13,200 --> 00:26:16,440 That was the time e-commerce boomed in India. 449 00:26:16,760 --> 00:26:20,040 We gained knowledge about sustainable fibres. 450 00:26:20,280 --> 00:26:22,080 It was quite interesting, 451 00:26:28,640 --> 00:26:31,040 Sir, I did my graduation in textiles from Jodhpur 452 00:26:36,320 --> 00:26:38,680 I worked from a quality manager to a business head. 453 00:26:38,800 --> 00:26:41,600 After that, we came together and started this business. 454 00:26:41,680 --> 00:26:42,480 In which year? 455 00:26:42,560 --> 00:26:45,560 The ideation began in 2016. 456 00:26:45,640 --> 00:26:47,320 We spent two years doing ideation. 457 00:26:47,520 --> 00:26:48,760 Why did it take you two years, sir? 458 00:26:48,800 --> 00:26:50,640 You have an experience of ten years. 459 00:26:51,160 --> 00:26:53,800 We initially did bulk supply like in schools, 460 00:26:53,880 --> 00:26:56,000 but we couldn't go on e-commerce and to retail stores. 461 00:26:56,040 --> 00:26:57,600 - You started B2B. - Yes. 462 00:27:03,400 --> 00:27:05,040 We kicked it off in e-commerce. 463 00:27:05,120 --> 00:27:07,760 In 2021, we converted our partnership firm 464 00:27:07,840 --> 00:27:09,160 into a private limited company. 465 00:27:13,840 --> 00:27:15,520 Sir, our main categories 466 00:27:26,360 --> 00:27:28,000 We sell swaddles the most. 467 00:27:28,080 --> 00:27:30,320 It's number one in India across marketplaces. 468 00:27:31,000 --> 00:27:32,920 Could we see your products? 469 00:27:33,400 --> 00:27:34,400 Bring them here. 470 00:27:34,760 --> 00:27:36,040 [light-hearted music playing] 471 00:27:41,440 --> 00:27:42,440 Very nice. 472 00:27:42,720 --> 00:27:43,520 Thank you. 473 00:27:43,600 --> 00:27:45,560 My kids have grown up or this would have been handy. 474 00:27:45,600 --> 00:27:46,640 This is expensive! 475 00:27:46,880 --> 00:27:48,320 - [Vineeta] Yes. - [laughs] 476 00:27:51,400 --> 00:27:52,680 The quality is top-notch. 477 00:27:52,760 --> 00:27:55,440 Every time someone becomes a mother, 478 00:27:55,560 --> 00:27:58,080 I give her a muslin cloth 479 00:27:58,480 --> 00:28:00,640 or such swaddles 480 00:28:00,720 --> 00:28:02,240 because getting such high-quality 481 00:28:02,320 --> 00:28:05,640 organic cotton products is generally difficult. 482 00:28:06,280 --> 00:28:08,160 You claim this is organic cotton. 483 00:28:08,240 --> 00:28:11,400 So, is this 100% organic cotton? 484 00:28:11,520 --> 00:28:13,200 - Because that's very expensive. - Yes! 485 00:28:13,320 --> 00:28:15,680 - Do you have a certificate for it? - Yes, we have a certificate. 486 00:28:15,680 --> 00:28:17,200 Who issues it? 487 00:28:17,280 --> 00:28:19,400 - Global Organic... - Global Organic Textile Standard. 488 00:28:25,160 --> 00:28:27,000 We had reached Rs. 10 crores. 489 00:28:32,120 --> 00:28:33,680 - Or gradually? - Gradually. 490 00:28:33,760 --> 00:28:35,200 - It took us three years. - Okay. So, today... 491 00:28:35,240 --> 00:28:37,520 What's the business from B2B and B2C? 492 00:28:37,640 --> 00:28:41,320 - B2B is only 10%. - 10%. 493 00:28:41,480 --> 00:28:43,240 - In the same company? - Yes. 494 00:28:43,320 --> 00:28:44,240 The same legal entity? 495 00:28:44,320 --> 00:28:45,760 Everything has been switched. 496 00:28:45,840 --> 00:28:46,960 A complete transition has been made. 497 00:28:47,000 --> 00:28:48,760 How much business are you doing right now? 498 00:28:48,840 --> 00:28:51,720 In FY 2022, our sales were Rs. 7 crores. 499 00:28:51,840 --> 00:28:54,000 In FY 2023, our sales were Rs. 9.5 crores. 500 00:28:55,440 --> 00:28:58,000 In FY 2024, our sales were Rs. 12.5 crores. 501 00:28:58,200 --> 00:29:01,120 And until now in October, we've done Rs. 10.5 crores. 502 00:29:01,280 --> 00:29:02,520 And projected sales? 503 00:29:10,640 --> 00:29:14,040 Sir, we have developed full capacity at the back end. 504 00:29:14,120 --> 00:29:16,040 We raised a round last year. 505 00:29:16,160 --> 00:29:17,320 How much did you raise? 506 00:29:17,400 --> 00:29:19,120 The round was for Rs. 5 crores. 507 00:29:19,200 --> 00:29:20,200 At what valuation? 508 00:29:20,280 --> 00:29:21,800 Rs. 23.5 crores pre-money. 509 00:29:46,600 --> 00:29:49,320 Approximately Rs. 1.8 crores. 510 00:29:49,480 --> 00:29:51,280 How much is the cash in the bank? 511 00:29:51,720 --> 00:29:52,720 Rs. 30 lakhs. 512 00:29:57,240 --> 00:29:58,240 Yes, sir. 513 00:29:59,320 --> 00:30:01,400 You have only Rs. 30 lakhs cash left! 514 00:30:01,480 --> 00:30:03,640 The cash flow has come in. 515 00:30:03,880 --> 00:30:05,400 Our current cash flow... 516 00:30:05,480 --> 00:30:07,520 - No, there was no burn. - It's Rs. 1.25 crores... 517 00:30:07,760 --> 00:30:09,160 The burn was Rs. 60 lakhs. 518 00:30:09,240 --> 00:30:11,040 - This year, you're at break-even. - Yes. 519 00:30:11,160 --> 00:30:12,400 - Where'd the money go? - Today... 520 00:30:12,640 --> 00:30:15,400 Our sales that were Rs. 80-85 lakhs 521 00:30:15,480 --> 00:30:17,680 - have gone up to Rs. 1.8 crores. - Okay. 522 00:30:17,760 --> 00:30:19,200 So, that comes in the working capital. 523 00:30:19,200 --> 00:30:21,320 Isn't your working capital Rs. 1.8 crores? 524 00:30:21,440 --> 00:30:22,560 Yes. 1.8... 525 00:30:22,640 --> 00:30:24,800 - To get there... - How much money did you invest in working capital? 526 00:30:24,840 --> 00:30:26,600 About Rs. 1.25 crores. 527 00:30:27,320 --> 00:30:28,640 What about the rest of the money? 528 00:30:29,960 --> 00:30:32,880 - You now have Rs. 30 lakhs in the bank. - Yes. 529 00:30:33,320 --> 00:30:35,840 - This gap of... - Rs. 4.7 crores. 530 00:30:36,000 --> 00:30:39,160 Let's suppose you burnt Rs. 50-60 lakhs last year. 531 00:30:39,400 --> 00:30:41,080 There's a gap of Rs. 4 crores. 532 00:30:41,160 --> 00:30:44,040 The investor gave us Rs. 4 crores. 533 00:30:44,160 --> 00:30:46,600 Rs. 1 crore is subjective for us to take. 534 00:30:46,680 --> 00:30:47,800 We haven't taken it yet. 535 00:30:47,920 --> 00:30:50,080 Fine. What about the remaining Rs. 3 crores then? 536 00:30:50,320 --> 00:30:51,800 Our inventory... 537 00:30:51,880 --> 00:30:54,160 - That's just Rs. 1 crore. - Rs. 1.25 working capital. 538 00:30:54,240 --> 00:30:55,280 That leaves you with 2.25... 539 00:30:55,320 --> 00:30:57,000 Where's the remaining Rs. 1.75 crores? 540 00:30:57,080 --> 00:30:58,760 Where is Rs. 1.5 crores? 541 00:31:00,440 --> 00:31:02,280 Hang on. Give us all the heads. 542 00:31:02,400 --> 00:31:03,440 What are your receivables? 543 00:31:03,480 --> 00:31:05,080 Give us the figures for your receivables. 544 00:31:05,480 --> 00:31:08,120 Our receivables are about Rs. 1 crore. 545 00:31:08,200 --> 00:31:10,160 - So, receivables are Rs. 1 crore. - Yes. 546 00:31:10,240 --> 00:31:12,560 - You said the inventory was Rs. 1.8 crores. - Yes. 547 00:31:22,160 --> 00:31:24,000 Your burn is Rs. 60 lakhs. 548 00:31:24,240 --> 00:31:26,200 So, Rs. 2.1-2.2 crores. 549 00:31:26,280 --> 00:31:28,120 Let's take a buffer of Rs. 40-50 lakhs. 550 00:31:28,200 --> 00:31:29,560 You're still short of Rs. 1 crore. 551 00:31:29,640 --> 00:31:31,280 [unsettling music playing] 552 00:31:32,360 --> 00:31:33,240 - Something's fishy. - No. 553 00:31:33,320 --> 00:31:36,160 We spent Rs. 1 crore on the rebranding exercise. 554 00:31:36,240 --> 00:31:37,080 - How much? - No, that... 555 00:31:37,160 --> 00:31:38,640 - How much? - How much was it? 556 00:31:38,720 --> 00:31:39,840 - Hang on. - Rs. 30 lakhs. 557 00:31:39,920 --> 00:31:43,560 - A rebranding exercise isn't capitalised. - Uh-huh. 558 00:31:43,640 --> 00:31:46,400 - The rebranding exercise is OpEx. - Okay. 559 00:31:46,520 --> 00:31:48,520 Either it comes under the loss of Rs. 60 lakhs 560 00:31:48,600 --> 00:31:50,160 or this year's break even. 561 00:31:50,240 --> 00:31:53,240 - Which means... - We had a burn of Rs. 50 lakhs this year also 562 00:31:53,320 --> 00:31:54,600 in the first six months 563 00:31:54,720 --> 00:31:55,880 after which we hit break even. 564 00:31:55,880 --> 00:31:58,720 The total burn is 60 plus 50 lakhs. That's Rs. 1.1 crores. 565 00:31:58,800 --> 00:32:01,200 - Didn't you say you were at break even? - Yes. 566 00:32:01,280 --> 00:32:04,200 We hit break even at Rs. 1.5 crores. 567 00:32:04,280 --> 00:32:06,760 The break-even was in this month and not this year. 568 00:32:06,840 --> 00:32:09,200 Initially, you said you hit break even this year. 569 00:32:09,280 --> 00:32:10,400 That is a wrong figure. 570 00:32:10,720 --> 00:32:12,200 [tense music playing] 571 00:32:12,720 --> 00:32:14,440 You should've said this earlier. 572 00:32:14,920 --> 00:32:16,320 - You know... - Exactly. 573 00:32:16,600 --> 00:32:20,760 The smallest of things can break your trust in a founder. 574 00:32:21,120 --> 00:32:22,480 This was the impression you gave. 575 00:32:22,560 --> 00:32:24,200 "We were profitable for two years." 576 00:32:46,000 --> 00:32:49,280 What will be the profit from your Rs. 20-crore projected sales? 577 00:32:49,360 --> 00:32:51,520 Given our current monthly run rate... 578 00:32:51,640 --> 00:32:53,960 We did Rs. 1.8 crore sales in October. 579 00:32:54,200 --> 00:32:55,280 - So... - Net? 580 00:33:04,520 --> 00:33:07,160 E-commerce and our website. 581 00:33:07,240 --> 00:33:10,880 - What's the share? - The share of marketplaces is 60%. 582 00:33:11,560 --> 00:33:15,320 Our website contributes to 25%. 583 00:33:15,560 --> 00:33:18,480 And we do the rest through bulk and B2B. 584 00:33:19,520 --> 00:33:22,840 The sales through our website have picked up. 585 00:33:43,760 --> 00:33:45,640 If you take an average, in one year, 586 00:33:45,880 --> 00:33:46,880 in one year, 587 00:33:46,920 --> 00:33:50,520 spends around Rs. 50,000 on baby essentials. 588 00:33:50,720 --> 00:33:52,520 In one year, around 2.5 crore babies are born. 589 00:33:52,560 --> 00:33:54,600 In five years, that's 12.5 crores. 590 00:33:54,720 --> 00:33:55,720 It's a huge market. 591 00:33:57,200 --> 00:33:59,720 Which big companies compete with you? 592 00:33:59,840 --> 00:34:01,000 SuperBottoms, right? 593 00:34:01,080 --> 00:34:03,280 There's SuperBottoms, Luvlap, 594 00:34:03,680 --> 00:34:06,160 FirstCry and Hopscotch. 595 00:34:06,280 --> 00:34:08,440 But all the existing players 596 00:34:08,520 --> 00:34:10,120 are focused on kids fashion. 597 00:34:10,360 --> 00:34:12,880 They focus on fashion in 5 years and beyond children. 598 00:34:12,960 --> 00:34:14,560 They lose out... 599 00:34:14,640 --> 00:34:16,240 Is your competitive advantage that 600 00:34:16,320 --> 00:34:17,960 you are focusing only on the 0 to 5 range? 601 00:34:18,000 --> 00:34:19,840 Our competitive advantage is 602 00:34:20,000 --> 00:34:23,280 that we founders have relevant experience in textiles. 603 00:34:23,360 --> 00:34:25,640 So, is your sourcing cost 604 00:34:25,840 --> 00:34:28,320 for the same quality better than others? 605 00:34:28,440 --> 00:34:29,440 - Yes! - Correct. 606 00:34:29,480 --> 00:34:32,440 How cheap are you compared to SuperBottoms or Luvlap? 607 00:34:32,520 --> 00:34:34,160 If you take a hospital, 608 00:34:34,240 --> 00:34:36,640 there are 40 products included in it for a mother. 609 00:34:36,720 --> 00:34:40,160 If you buy these products individually from any brand, 610 00:34:57,800 --> 00:35:00,360 between you and SuperBottoms' individual swaddle? 611 00:35:00,520 --> 00:35:02,840 Superbottoms don't sell swaddle. 612 00:35:02,920 --> 00:35:04,480 Some other brand then. Luvlap, for example. 613 00:35:04,520 --> 00:35:06,400 Luvlap has a cotton swaddle. 614 00:35:06,520 --> 00:35:09,000 That retails for Rs. 599. 615 00:35:15,440 --> 00:35:17,200 But you are expensive then, right? 616 00:35:34,560 --> 00:35:35,720 That's a tall claim. 617 00:35:37,040 --> 00:35:42,040 Our prices are less by at least 25%-30% 618 00:35:42,160 --> 00:35:43,160 compared to other brands. 619 00:35:43,640 --> 00:35:45,520 How much is your average order value? 620 00:36:00,520 --> 00:36:04,240 - On Amazon, our average rating is 4.2. - Nice. 621 00:36:10,320 --> 00:36:11,680 If I talk about swaddle, 622 00:36:11,800 --> 00:36:14,360 - just that and not a blanket or towel. - Yes. 623 00:36:14,600 --> 00:36:17,440 On Amazon, the market size for swaddle is 624 00:36:29,960 --> 00:36:32,680 - Amazon won't let it go beyond 10%. - But... 625 00:36:32,880 --> 00:36:33,720 How will you grow it? 626 00:36:33,840 --> 00:36:35,080 We will grow it on D2C 627 00:36:35,160 --> 00:36:36,600 and retail. 628 00:36:36,680 --> 00:36:40,320 In D2C, we used to make Rs. 5 lakhs per month. 629 00:36:40,480 --> 00:36:42,520 Now, we've reached Rs 35 lakhs. 630 00:36:42,680 --> 00:36:45,440 But the more your scale, your economics will get worse. 631 00:36:45,520 --> 00:36:47,120 The D2C market won't be 632 00:36:47,240 --> 00:36:49,200 significantly larger than what it is on Amazon. 633 00:36:49,280 --> 00:36:52,200 No, we can be... One kit 634 00:36:52,400 --> 00:36:54,720 sells for Rs. 5,000. 635 00:36:55,120 --> 00:36:56,480 Let's look at the average. 636 00:36:56,600 --> 00:36:59,160 If you sell 100 kits daily, 637 00:36:59,440 --> 00:37:01,480 then you can do sales of Rs. 5 lakhs, daily. 638 00:37:01,560 --> 00:37:04,040 India is a big market, and we have achieved that scale. 639 00:37:04,320 --> 00:37:06,560 Rs. 1.5 crores of sales will come from there. 640 00:37:06,640 --> 00:37:08,080 When this business grows up, 641 00:37:08,720 --> 00:37:09,760 what will it be? 642 00:37:09,920 --> 00:37:12,800 This would be a Rs. 100 crores brand 643 00:37:12,960 --> 00:37:14,640 in the next 2 years. 644 00:37:14,720 --> 00:37:16,960 And after that, this would be 645 00:37:17,240 --> 00:37:20,280 around a Rs. 300 crores brand in the next 5 years. 646 00:37:21,160 --> 00:37:24,240 Okay, Vaibhav and Bhupendra, it was a pleasure meeting you. 647 00:37:24,600 --> 00:37:26,720 You said that price is your biggest advantage. 648 00:37:26,800 --> 00:37:28,840 I think that price can't be a significant advantage. 649 00:37:28,920 --> 00:37:30,800 It dissolves after a long time. 650 00:37:30,920 --> 00:37:33,880 You need to work hard and focus on the brand. 651 00:37:34,160 --> 00:37:35,640 You are not quite aspirational. 652 00:37:35,720 --> 00:37:38,320 Rs. 100 crores in 3 years. Rs. 200 crores in 5 years. 653 00:37:38,480 --> 00:37:39,920 That is not much. I felt 654 00:37:40,040 --> 00:37:42,440 that the category is small or you are not quite aspirational. 655 00:37:42,520 --> 00:37:45,040 For these two reasons, I am out, unfortunately. 656 00:37:46,560 --> 00:37:50,200 I agree with, Aman. The pricing advantage is not a long time play. 657 00:37:50,440 --> 00:37:52,360 In the next three years, 658 00:37:52,440 --> 00:37:55,240 if you want to make this brand and a consumer business, 659 00:37:55,360 --> 00:37:58,520 then your advantage will have to be product 660 00:37:58,800 --> 00:37:59,880 and branding. 661 00:37:59,960 --> 00:38:02,040 Okay? You have a lot of work to do in that segment. 662 00:38:02,840 --> 00:38:04,360 So, I will give you an offer. 663 00:38:06,440 --> 00:38:08,320 Rs. 75 lakhs for 3%. 664 00:38:08,400 --> 00:38:09,920 Which is the same as your valuation. 665 00:38:10,240 --> 00:38:12,760 Plus 1% royalty 666 00:38:12,840 --> 00:38:15,560 till I recover 1.5 times my investment. 667 00:38:19,680 --> 00:38:22,360 The journey from Rs. 200-Rs. 1,000 crores, 668 00:38:22,640 --> 00:38:25,120 for that, I will have to invest a lot of time and effort. 669 00:38:27,160 --> 00:38:28,760 Vaibhav and Bhupendra, 670 00:38:28,840 --> 00:38:30,200 the scale is good. 671 00:38:30,280 --> 00:38:33,360 But the answers I needed to understand the scale of the business 672 00:38:33,480 --> 00:38:36,240 were not clear. 673 00:38:36,520 --> 00:38:38,560 So, I am unable to understand the business. 674 00:38:38,680 --> 00:38:39,920 For that reason, I will be out. 675 00:38:41,760 --> 00:38:44,800 I think your combined strength, 676 00:38:45,000 --> 00:38:47,400 coupled with the momentum of this industry, 677 00:38:48,000 --> 00:38:51,440 which is why, I want to support your business. 678 00:38:52,240 --> 00:38:53,800 I have an offer for you. 679 00:38:54,840 --> 00:38:58,280 I will give you the capital of Rs. 75 lakhs you asked 680 00:38:58,760 --> 00:39:00,840 for 4% ownership. 681 00:39:01,640 --> 00:39:02,680 And no royalty. 682 00:39:08,400 --> 00:39:11,280 But there are a few aspects in this category 683 00:39:12,200 --> 00:39:14,720 that you can't change even if you put in the effort. 684 00:39:15,480 --> 00:39:18,960 One, this is a fundamentally low repeat category. 685 00:39:19,040 --> 00:39:20,920 With execution excellence, 686 00:39:21,000 --> 00:39:23,400 you can make a low repeat category slightly better. 687 00:39:23,600 --> 00:39:26,840 - But structurally, a few categories are low repeat. - Correct. 688 00:39:27,800 --> 00:39:30,800 Second, this is a price-sensitive category. 689 00:39:31,280 --> 00:39:33,600 You have an advantage today. 690 00:39:34,200 --> 00:39:36,400 But that can also become a disadvantage. 691 00:39:36,680 --> 00:39:40,200 Someone else can come and say they don't want to invest in a brand. 692 00:39:40,640 --> 00:39:42,560 They just want to sell the cheapest product 693 00:39:43,000 --> 00:39:44,760 to increase traction with the customer. 694 00:39:45,520 --> 00:39:47,720 So, for these reasons, today, I am out. 695 00:39:48,040 --> 00:39:49,080 Wish you all the best. 696 00:39:49,800 --> 00:39:51,920 So, you have two offers. You can decide. 697 00:39:52,080 --> 00:39:53,320 [music playing] 698 00:39:54,240 --> 00:39:57,560 We have a counteroffer for Vineeta. 699 00:39:57,960 --> 00:40:02,400 Can we do Rs. 75 lakhs for 1.5% equity? 700 00:40:03,960 --> 00:40:05,000 And no royalty? 701 00:40:05,120 --> 00:40:06,640 Yes, we can go with royalty. 702 00:40:10,760 --> 00:40:13,800 We can't go less... 703 00:40:13,880 --> 00:40:16,280 So, your commercial counter offer 704 00:40:16,440 --> 00:40:20,040 is for Vineeta and me for Rs. 75 lakhs at 1.5%. 705 00:40:20,120 --> 00:40:21,720 They just mentioned Vineeta. 706 00:40:22,760 --> 00:40:25,280 - No, but because... - They don't want to upset you. 707 00:40:25,480 --> 00:40:27,680 - I... I will give you a counter. - Be direct. 708 00:40:27,880 --> 00:40:30,440 Okay! Then think about you and then hear Ritesh out. 709 00:40:32,760 --> 00:40:36,640 Rs. 75 lakhs for 2.5%. 710 00:40:37,920 --> 00:40:40,480 And 1% royalty up to 1x. 711 00:40:45,200 --> 00:40:46,200 Good game! 712 00:40:46,520 --> 00:40:49,040 My suggestion is no royalty. 713 00:40:49,320 --> 00:40:51,320 Rs. 75 lakhs at 3%. 714 00:40:51,400 --> 00:40:53,080 [music playing] 715 00:40:57,640 --> 00:41:00,440 Vineeta, can we somehow... 716 00:41:00,520 --> 00:41:03,640 - I get it that you always mention Vineeta. - Let me tell you. 717 00:41:03,720 --> 00:41:06,920 No! Ritesh doesn't mind, why are you making a fuss? 718 00:41:08,040 --> 00:41:10,520 That is my job! I enjoy doing that. 719 00:41:10,600 --> 00:41:12,520 - Really? - No! I really thank 720 00:41:12,680 --> 00:41:15,400 Ritesh also for such a good offer. But... 721 00:41:15,560 --> 00:41:17,200 I think this is my best offer. 722 00:41:17,280 --> 00:41:19,880 It doesn't work for you. It's fine, I am out. 723 00:41:20,840 --> 00:41:23,000 I can suggest that you... 724 00:41:23,080 --> 00:41:24,240 Can you structure it 725 00:41:24,360 --> 00:41:25,800 - in another way? - Yes! Rs. 75 lakhs 726 00:41:25,840 --> 00:41:28,480 - at 1.5% valuation. - Our valuation... 727 00:41:28,560 --> 00:41:30,640 Give me a 1% advisory separately. 728 00:41:30,760 --> 00:41:32,120 1% is a lot. 729 00:41:32,200 --> 00:41:33,200 Advisory? 730 00:41:35,440 --> 00:41:38,480 Okay! 0.75%. Works? All right! 731 00:41:38,920 --> 00:41:40,720 I don't negotiate more than this. 732 00:41:41,760 --> 00:41:43,240 What is the final offer? Vineeta, would you like to share? 733 00:41:43,240 --> 00:41:46,280 Please! Can you help us with a better offer? 734 00:41:47,720 --> 00:41:51,000 We will make sure to take it to Rs. 300 crores. Trust me. 735 00:41:51,320 --> 00:41:52,400 Okay! 736 00:41:52,480 --> 00:41:54,000 - Vineeta's final offer. - Rs. 75 lakhs 737 00:41:54,280 --> 00:41:55,920 - at 2.1%. - Not bad. 738 00:41:56,040 --> 00:42:00,200 You can give me 0.6% advisory separately. 739 00:42:00,640 --> 00:42:02,240 Plus 1% royalty. 740 00:42:05,680 --> 00:42:07,080 [laughing] 741 00:42:07,920 --> 00:42:10,480 Listen, the projected 2x valuation jump 742 00:42:10,560 --> 00:42:14,040 from Rs. 24 crores to Rs. 50 crores in a year 743 00:42:14,320 --> 00:42:16,640 - doesn't seem right to me. - That depends on the scale. 744 00:42:16,720 --> 00:42:18,120 What is your final counter? 745 00:42:19,000 --> 00:42:21,560 You are headed in the wrong direction. This is not right for you. 746 00:42:22,480 --> 00:42:24,120 You will get stuck in the valuation game. 747 00:42:24,200 --> 00:42:25,920 No, this is not the valuation game 748 00:42:26,000 --> 00:42:28,720 - Because... - Decide your final offer. 749 00:42:29,760 --> 00:42:34,400 Rs. 75 lakhs for 1.75% equity. 750 00:42:41,360 --> 00:42:44,520 You... I really tried. 751 00:42:44,640 --> 00:42:48,440 - You're over-optimising for a mere 0.3%. - Don't do this for 0.3%. 752 00:42:48,520 --> 00:42:50,520 [music playing] 753 00:42:51,520 --> 00:42:53,120 - Shall we? - Do it for 2%. 754 00:42:53,240 --> 00:42:54,920 Close it at 2%, Vineeta. 755 00:42:56,200 --> 00:42:57,400 Please! 756 00:42:58,000 --> 00:42:59,200 I will show you my final counter. 757 00:42:59,200 --> 00:43:01,440 Rs. 75 lakhs at 2%, 758 00:43:01,600 --> 00:43:04,160 1% royalty till I make 1.25 times. 759 00:43:09,800 --> 00:43:10,800 Okay, Sharks! 760 00:43:19,320 --> 00:43:22,360 - Good quality. Make an amazing plan. - Thank you! 761 00:43:22,440 --> 00:43:24,160 [camera shutter clicks] 762 00:43:24,880 --> 00:43:27,120 - All right! Best of luck. - Best wishes. 763 00:43:27,480 --> 00:43:29,400 - Good job, guys. - All the best. 764 00:43:30,440 --> 00:43:32,560 'You can't go beyond a certain level.' 765 00:43:32,640 --> 00:43:34,880 'But at the same time, you want' 766 00:43:35,000 --> 00:43:36,560 'their expertise.' 767 00:43:36,840 --> 00:43:38,360 It's the same internal conflict, 768 00:43:38,480 --> 00:43:41,120 the same arguments that were in my mind. 769 00:43:41,240 --> 00:43:43,560 My heart was saying one thing, and my mind had a different opinion. 770 00:43:43,600 --> 00:43:46,640 I am thankful. We got the best offer. 771 00:43:47,080 --> 00:43:50,560 - Team Moms Home, welcome to the PokerBaazi Zone. - Yes. 772 00:43:50,760 --> 00:43:52,080 Where you hold the card. 773 00:43:52,240 --> 00:43:54,680 - And you also hold a cheque. - Yes. 774 00:43:54,760 --> 00:43:57,040 - Vineeta gave it to you. - Thanks. 775 00:43:57,120 --> 00:43:59,600 There are a lot of similarities between poker and business. 776 00:44:29,040 --> 00:44:30,520 from your business phase? 777 00:44:30,600 --> 00:44:32,640 Yes, there is a story from our introduction phase. 778 00:44:32,720 --> 00:44:34,360 What happened was, 779 00:44:34,440 --> 00:44:37,040 unfortunately, I met with an accident and my hand was injured. 780 00:44:37,400 --> 00:44:39,400 - Oh! - Kumar used to be in Spain back then. 781 00:44:39,480 --> 00:44:41,640 - Hmm! - I handle operations in India. 782 00:44:41,760 --> 00:44:44,360 Kumar handled e-commerce in Spain. 783 00:44:44,720 --> 00:44:46,440 Kumar came to India immediately 784 00:44:46,520 --> 00:44:49,600 and during that time, our business was at its lowest. 785 00:44:49,720 --> 00:44:51,800 - Hmm! - I couldn't help 786 00:44:51,880 --> 00:44:53,200 with the production. 787 00:44:53,320 --> 00:44:56,200 Kumar returned and grew the business again. 788 00:44:56,280 --> 00:44:58,720 We could finally rebuild the business after some time. 789 00:44:58,800 --> 00:44:59,960 Now, we are here. 790 00:45:00,040 --> 00:45:01,200 What a great co-founder. 791 00:45:01,280 --> 00:45:04,280 - Let me tell you, your cards are good. - Yes, I can see. 792 00:45:04,400 --> 00:45:06,120 This is a... Four of a kind. 793 00:45:06,200 --> 00:45:09,040 - Yes! - It is your third-highest winning card. 794 00:45:33,320 --> 00:45:35,200 And I really hope that you grow in the future. 795 00:45:35,280 --> 00:45:37,920 - I am very excited to see what you do. - Thank you so much. 796 00:45:38,000 --> 00:45:40,600 If you have skills and strategy, 797 00:45:40,680 --> 00:45:43,000 then visit PokerBaazi and make your winning hand. 798 00:45:43,120 --> 00:45:44,200 Download the app now. 799 00:46:07,160 --> 00:46:09,360 [theme music playing] 800 00:46:22,240 --> 00:46:23,920 Hi, Sharks! How are we today? 801 00:46:24,120 --> 00:46:25,200 - All right! - We're all right. 802 00:46:25,240 --> 00:46:27,280 - Thirsty! - Sharks, before we start, 803 00:46:27,400 --> 00:46:28,960 can we please serve you some drinks? 804 00:46:29,040 --> 00:46:30,040 We have Roxanne here. 805 00:46:30,120 --> 00:46:32,200 She's going to shake things up today for us. 806 00:46:32,280 --> 00:46:34,000 [music playing] 807 00:46:46,360 --> 00:46:47,880 [music playing] 808 00:47:05,480 --> 00:47:06,920 Thank you so much, Roxanne. 809 00:47:22,080 --> 00:47:23,960 Before we start, 810 00:47:24,120 --> 00:47:26,600 let me introduce you to a fascinating term. 811 00:47:26,760 --> 00:47:27,760 EANABs. 812 00:47:36,200 --> 00:47:37,720 This drink is served 813 00:47:37,960 --> 00:47:40,360 at every party at Stanford University. 814 00:47:41,840 --> 00:47:45,360 This drink is fancy, tasty and also healthy. 815 00:47:45,440 --> 00:47:48,160 Also, it has no alcohol. 816 00:47:50,640 --> 00:47:51,760 This world 817 00:47:51,840 --> 00:47:53,960 had two types of people until now. 818 00:47:54,120 --> 00:47:56,040 Drinkers and non-drinkers. 819 00:47:56,200 --> 00:47:59,120 But in recent times, globally and in India, 820 00:47:59,200 --> 00:48:00,960 a third group has been identified. 821 00:48:01,080 --> 00:48:03,720 The conscious, self-aware, ethical drinker. 822 00:48:03,800 --> 00:48:05,840 They lead an active lifestyle. 823 00:48:05,920 --> 00:48:08,040 They are fitness and wellness enthusiasts. 824 00:48:08,320 --> 00:48:11,680 They enjoy going out, partying, 825 00:48:11,760 --> 00:48:13,480 but they don't want a hangover the next day. 826 00:48:13,560 --> 00:48:14,600 They want to enjoy a drink 827 00:48:14,640 --> 00:48:16,520 without facing the drawbacks associated with it. 828 00:48:17,680 --> 00:48:19,960 But they don't have many options. 829 00:48:20,200 --> 00:48:22,920 Acidic fresh lime, caffeinated and sweet colas, 830 00:48:23,360 --> 00:48:24,960 diet colas with aspartame, 831 00:48:25,160 --> 00:48:26,560 or sweet mocktails. 832 00:48:27,440 --> 00:48:30,000 Introducing Catwalk non-alcoholic spirits. 833 00:48:37,080 --> 00:48:39,480 Sharks, this is a better-for-you party. 834 00:48:39,720 --> 00:48:42,360 Catwalk offers four unique concoctions. 835 00:48:59,800 --> 00:49:01,280 Within 6 months, 836 00:49:01,440 --> 00:49:05,120 we are available across 1,500 retail stores, 837 00:49:13,040 --> 00:49:16,440 But for Catwalk, our vision is not to replace alcohol. 838 00:49:16,640 --> 00:49:19,520 Our vision is to replace unhealthy options 839 00:49:19,600 --> 00:49:22,680 that are sold as alcohol alternatives in the market. 840 00:49:22,800 --> 00:49:26,600 And to do this, these cats need a friend in the Sharks. 841 00:49:30,120 --> 00:49:31,440 - Oh! - We are from New Delhi. 842 00:49:32,040 --> 00:49:33,080 Our ask is 843 00:49:33,280 --> 00:49:36,960 Rs. 1 crore for 4.16% of our company. 844 00:49:41,600 --> 00:49:44,240 The calculation to determine the valuation is very easy. 845 00:49:45,680 --> 00:49:48,240 How did you come up with 4.16%? 846 00:49:48,320 --> 00:49:51,280 Our last round's valuation was Rs. 24 crores. 847 00:49:51,360 --> 00:49:53,400 Rs. 24.03 crores, to be exact. 848 00:49:55,040 --> 00:49:57,360 Hmm! Your math is faster than a computer. 849 00:49:57,440 --> 00:49:58,640 [laughing] 850 00:49:59,720 --> 00:50:01,480 So, welcome Ishan and Aamir. 851 00:50:01,560 --> 00:50:04,520 You mentioned that you heard this term at Stanford. 852 00:50:04,600 --> 00:50:05,600 Did you study there? 853 00:50:05,640 --> 00:50:07,480 I went there for my sister's graduation. 854 00:50:08,760 --> 00:50:10,880 We thought you were here. 855 00:50:10,960 --> 00:50:13,240 I... That is what I wanted. 856 00:50:13,320 --> 00:50:14,560 We were impressed. 857 00:50:14,640 --> 00:50:16,840 He is from Stanford! That was strategic. 858 00:50:18,320 --> 00:50:19,160 I thought 859 00:50:19,240 --> 00:50:21,920 that you would listen carefully if I say that, 860 00:50:22,000 --> 00:50:22,840 after that, I'll tell you. 861 00:50:22,920 --> 00:50:25,800 Tell us your story. Where did you study? 862 00:50:26,720 --> 00:50:28,920 I graduated from Amity Law School. 863 00:50:29,000 --> 00:50:31,280 I graduated in 2011. 864 00:50:31,360 --> 00:50:34,520 After that, I worked in a Tier 1 law firm, Trilegal. 865 00:50:34,680 --> 00:50:36,600 - Nice! - After working there, 866 00:50:36,720 --> 00:50:40,080 I realised that I am not a good lawyer. 867 00:50:40,280 --> 00:50:41,600 [laughing] 868 00:50:41,680 --> 00:50:44,680 I saw the lawyers around me who were amazing. 869 00:50:44,760 --> 00:50:46,440 I thought they were better than me. 870 00:50:46,520 --> 00:50:49,200 I cannot be better than them, I am not enjoying this. 871 00:50:49,280 --> 00:50:51,720 I moved to London with my savings. 872 00:50:52,000 --> 00:50:53,200 I studied music there. 873 00:50:53,280 --> 00:50:56,360 - I studied sound engineering and music production. - Where? 874 00:50:56,440 --> 00:50:57,880 Pointblank Music School. 875 00:50:57,960 --> 00:50:59,800 After that, I went to Berklee College of Music. 876 00:51:04,680 --> 00:51:06,680 It is nice. 877 00:51:07,720 --> 00:51:09,000 Over there, I understood 878 00:51:09,080 --> 00:51:11,840 that I wanted to enter a creative side and not go back to law. 879 00:51:11,920 --> 00:51:13,640 I met someone in London. 880 00:51:13,720 --> 00:51:16,720 He said we would start a business together when I go back to India. 881 00:51:16,880 --> 00:51:18,800 I returned to India, I spoke with him 882 00:51:18,880 --> 00:51:22,000 and I started my first startup in 2016. 883 00:51:22,480 --> 00:51:23,800 It was a publishing startup. 884 00:51:24,000 --> 00:51:26,320 When that startup didn't work, 885 00:51:26,680 --> 00:51:28,440 I was asked to shut the shop. 886 00:51:28,600 --> 00:51:30,800 I saw I have social media managers, 887 00:51:30,880 --> 00:51:32,360 designers and content writers. 888 00:51:32,440 --> 00:51:35,240 So, I converted it into a full-fledged creative agency. 889 00:51:36,320 --> 00:51:39,240 That creative agency has been live for 8 years. 890 00:51:39,320 --> 00:51:41,600 I worked over there as a creative head. 891 00:51:41,680 --> 00:51:45,080 And these Catwalk designs are my concepts. 892 00:51:45,240 --> 00:51:47,560 I've done this for more than 150 brands. 893 00:51:47,640 --> 00:51:49,480 Oh, wow! Where is that agency? 894 00:51:49,800 --> 00:51:52,520 That agency is going on, but I am not a Creative Head there. 895 00:51:52,600 --> 00:51:54,320 - Okay! - I am just a founder. 896 00:51:55,000 --> 00:51:56,680 - Just? - You are interesting. 897 00:51:56,760 --> 00:51:57,960 - Just a founder? - Thank you! 898 00:51:58,120 --> 00:52:00,520 - That's it? - When did you start Catwalk? 899 00:52:01,160 --> 00:52:03,640 In this journey, I met Aamir as a client. 900 00:52:04,720 --> 00:52:06,560 We met for the first time in 2017. 901 00:52:06,640 --> 00:52:07,640 We knew that 902 00:52:07,720 --> 00:52:09,560 he was well-versed in things I wasn't 903 00:52:09,640 --> 00:52:11,520 and I was knowledgeable in areas he wasn't. 904 00:52:11,760 --> 00:52:13,880 So, we kept meeting. We became friends. 905 00:52:14,000 --> 00:52:16,360 So, that is when we thought of doing something together. 906 00:52:17,160 --> 00:52:20,800 I was born in a small place in UP called Khurja. 907 00:52:21,480 --> 00:52:23,960 I moved to Aligarh Muslim University. 908 00:52:24,080 --> 00:52:25,400 I did my BCom honours 909 00:52:29,840 --> 00:52:31,120 So, I started my job. 910 00:52:31,360 --> 00:52:33,480 I started as a sales executive 911 00:52:33,560 --> 00:52:35,440 selling credit cards for ICICI Bank. 912 00:52:35,520 --> 00:52:37,200 I worked with them for six years. 913 00:52:37,280 --> 00:52:39,880 And then I worked at HDFC Bank for 6 years. 914 00:52:39,960 --> 00:52:42,280 And then I left the bank and started my business. 915 00:52:42,360 --> 00:52:44,720 I started trading FMCG products. 916 00:52:44,880 --> 00:52:47,720 - FMCG! - I started importing non-alcoholic beer from Dubai. 917 00:52:47,800 --> 00:52:49,880 We created a distribution network in India. 918 00:52:49,960 --> 00:52:52,080 We had a total of 100 distributors. 919 00:52:52,200 --> 00:52:54,480 That business is currently operational. 920 00:52:54,560 --> 00:52:56,680 But I handed it over to my family 921 00:52:56,760 --> 00:52:57,880 around a year back. 922 00:52:58,040 --> 00:53:00,400 When Catwalk came to a level 923 00:53:00,480 --> 00:53:01,640 where we were about to launch. 924 00:53:01,640 --> 00:53:04,400 You didn't clear CAT, is that why you named it Catwalk? 925 00:53:04,520 --> 00:53:05,720 - No! - No. 926 00:53:05,800 --> 00:53:08,160 We came up with the name Catwalk 927 00:53:08,240 --> 00:53:10,320 because we wanted this to become a fashion statement. 928 00:53:11,280 --> 00:53:13,160 Those who are non-drinkers 929 00:53:13,280 --> 00:53:15,560 are taking a conscious call. 930 00:53:15,640 --> 00:53:17,560 They want to look after their mind 931 00:53:17,640 --> 00:53:18,680 - and body. - Do you drink? 932 00:53:18,920 --> 00:53:20,320 - I don't! - What about you? 933 00:53:20,480 --> 00:53:21,320 I never drank. 934 00:53:21,400 --> 00:53:22,720 I used to drink, but I quit. 935 00:53:22,800 --> 00:53:24,160 Because I realised that 936 00:53:24,240 --> 00:53:27,560 I was stuck in mediocrity, both professionally and personally. 937 00:53:28,120 --> 00:53:30,800 I used to feel that I was incapable of working hard. 938 00:53:31,000 --> 00:53:33,400 I needed focus in life. 939 00:53:33,480 --> 00:53:34,520 Did you drink a lot? 940 00:53:34,680 --> 00:53:35,680 On weekends. 941 00:53:36,040 --> 00:53:37,120 You used to drink a lot during weekends. 942 00:53:37,160 --> 00:53:40,760 The weekend seemed like it was meant for this. 943 00:53:41,360 --> 00:53:43,640 I tried to reduce my alcohol intake. 944 00:53:43,720 --> 00:53:46,280 This was around 2022. 945 00:53:46,480 --> 00:53:49,080 One day, he came over and I was hungover. 946 00:53:49,240 --> 00:53:51,240 He said, 'Why do you drink so much?' 947 00:53:51,320 --> 00:53:54,280 I told him. There is no option. I go out.' 948 00:53:54,360 --> 00:53:57,440 'If I am out for four hours, I will be holding the glass.' - Yes. 949 00:53:57,560 --> 00:54:01,040 He replied, 'I have always been a teetotaller, I don't like this.' 950 00:54:01,160 --> 00:54:02,160 And I said, 951 00:54:02,240 --> 00:54:04,840 'Aamir, I want to quit. I am done.' 952 00:54:04,960 --> 00:54:06,760 So he was like, 'Let's come up with something.' 953 00:54:06,800 --> 00:54:08,400 When we received the sample of Catwalk, 954 00:54:08,600 --> 00:54:10,320 It took us 2 years for R&D. 955 00:54:14,280 --> 00:54:16,400 I like this, so I can replace it with this drink. 956 00:54:16,480 --> 00:54:19,160 So, in the last 4-5 years, 957 00:54:19,400 --> 00:54:21,680 the huge alcohol brands 958 00:54:21,760 --> 00:54:24,960 have also launched non-alcoholic wines and beers. 959 00:54:25,200 --> 00:54:28,520 There are a lot of D2C brands in India. 960 00:54:28,640 --> 00:54:30,880 Coolberg was a funded brand 961 00:54:30,960 --> 00:54:32,640 - of non-alcoholic beer. - You are absolutely right. 962 00:54:32,680 --> 00:54:35,760 There are quite a few zero-calorie options in the market as well. 963 00:54:36,040 --> 00:54:37,800 We noticed that you can do so much better 964 00:54:37,920 --> 00:54:40,440 - than the options available. - Please elaborate. 965 00:54:40,520 --> 00:54:43,040 Better taste or emotion? 966 00:54:43,160 --> 00:54:45,600 Better taste, look and feel. 967 00:54:45,680 --> 00:54:47,560 Let there be a first moment of truth with this. 968 00:54:47,680 --> 00:54:49,000 When someone sees 969 00:54:49,400 --> 00:54:51,720 a bartender preparing a drink for them, 970 00:54:51,800 --> 00:54:53,760 they should feel that, even if they aren't drinking alcohol, 971 00:54:53,800 --> 00:54:55,400 effort has still been made just for them. 972 00:54:55,440 --> 00:54:57,320 There are special bottles. 973 00:54:57,400 --> 00:54:58,400 For example, 974 00:54:58,560 --> 00:54:59,800 we made a gin 975 00:55:01,080 --> 00:55:03,400 in which we added pink grapefruit, lemongrass, 976 00:55:03,480 --> 00:55:04,840 basil, hibiscus. 977 00:55:04,920 --> 00:55:06,640 We took six months to complete it. 978 00:55:06,720 --> 00:55:07,720 So the question is, 979 00:55:07,800 --> 00:55:11,360 is this only for people who want to quit? 980 00:55:11,480 --> 00:55:12,880 Let me tell you. 981 00:55:12,960 --> 00:55:15,600 - A lot of mock meats are available nowadays. - Yes. 982 00:55:15,680 --> 00:55:17,280 Vegetarians don't eat mock meat. 983 00:55:17,360 --> 00:55:19,840 Because vegetarians don't want that. 984 00:55:20,000 --> 00:55:22,440 Those who are trying to quit eat them. 985 00:55:22,520 --> 00:55:24,560 - The market gets limited. - Yes. Absolutely! 986 00:55:24,640 --> 00:55:28,000 Is this just for people who want to switch? 987 00:55:28,920 --> 00:55:31,520 Mock meat is still not famous 988 00:55:31,680 --> 00:55:33,320 because we have soya in India. 989 00:55:33,400 --> 00:55:35,240 Soya is tasty. 990 00:55:35,640 --> 00:55:38,600 To get mock meat so close to real meat 991 00:55:38,680 --> 00:55:41,000 that they forgot to make it tasty. 992 00:55:41,520 --> 00:55:42,720 What are you adding to it 993 00:55:42,800 --> 00:55:46,000 that makes it resemble alcohol, but it's not actually alcohol? 994 00:55:47,240 --> 00:55:51,000 In gin, juniper is a botanical that you can use. 995 00:55:58,520 --> 00:56:01,720 This didn't taste like gin. 996 00:56:01,800 --> 00:56:03,320 It is sweet and tangy. 997 00:56:03,400 --> 00:56:04,400 This tastes like juice. 998 00:56:04,440 --> 00:56:06,160 Why does it say 0% gin? 999 00:56:06,240 --> 00:56:08,560 Because we used botanicals that go into making gin. 1000 00:56:08,720 --> 00:56:10,760 But the taste you are missing 1001 00:56:10,840 --> 00:56:13,120 comes predominantly from ethanol. 1002 00:56:13,200 --> 00:56:14,760 [laughing] 1003 00:56:18,000 --> 00:56:20,840 When we were making this product, we never tried it neat. 1004 00:56:20,960 --> 00:56:22,760 Because neat alcohol is consumed directly. 1005 00:56:22,840 --> 00:56:24,400 So, we have to dilute it. 1006 00:56:24,520 --> 00:56:28,120 All the natural flavours get compacted together. 1007 00:56:28,240 --> 00:56:30,200 So, to release them, you need to add something. 1008 00:56:30,280 --> 00:56:33,240 Why don't we give a diluted final product? 1009 00:56:33,320 --> 00:56:36,640 - We have it in the can... - It is with a mixer. 1010 00:56:37,680 --> 00:56:38,720 How much does one can cost? 1011 00:56:38,760 --> 00:56:40,280 Rs. 125 is the MRP. 1012 00:56:41,040 --> 00:56:44,680 The bottle, the design and the font you chose 1013 00:56:44,880 --> 00:56:46,240 are very high quality. 1014 00:56:46,840 --> 00:56:48,800 I like the packaging too. 1015 00:56:48,920 --> 00:56:50,160 - It's cool and unique. - Thank you! 1016 00:56:50,160 --> 00:56:51,560 I have one question. 1017 00:56:52,200 --> 00:56:54,000 Is this a gender-focussed brand? 1018 00:56:54,400 --> 00:56:56,520 If you think so because of the name, 1019 00:56:56,600 --> 00:57:00,120 then we named it Catwalk because we wanted a mascot. 1020 00:57:01,360 --> 00:57:02,880 This cat is our mascot. 1021 00:57:02,960 --> 00:57:05,040 It has a story. The cat is named Battuta. 1022 00:57:05,400 --> 00:57:07,040 - Wow! - Battuta is inspired by 1023 00:57:07,120 --> 00:57:08,960 the medieval traveller, Ibn Battuta. 1024 00:57:09,120 --> 00:57:12,040 - Oh! - Ibn Battuta used to collect spices from around the world. 1025 00:57:12,360 --> 00:57:13,880 Our cat collects botanicals. 1026 00:57:14,000 --> 00:57:15,960 Our Delhi 6 Botanic 1027 00:57:16,160 --> 00:57:18,360 has cinnamon, cardamom and fennel. 1028 00:57:18,480 --> 00:57:20,200 Stockholm Infusion has peach and orange. 1029 00:57:20,280 --> 00:57:22,200 Battuta is our travelling cat. 1030 00:57:23,160 --> 00:57:25,440 Let's talk about the numbers. 1031 00:57:26,560 --> 00:57:28,840 How much are we selling every year? 1032 00:57:28,920 --> 00:57:30,680 We launched in April... 1033 00:57:30,760 --> 00:57:33,360 Okay! This year April. How much did you sell in 6 months? 1034 00:57:33,440 --> 00:57:35,600 We did sales of Rs. 32 lakhs. 1035 00:57:35,960 --> 00:57:37,640 In April, it was Rs 5 lakhs. 1036 00:57:37,960 --> 00:57:39,800 In May, it was Rs. 4 lakhs. 1037 00:57:40,280 --> 00:57:42,240 In June, our revenue was Rs. 2 lakhs. 1038 00:57:42,480 --> 00:57:44,560 In July, it was Rs. 6 lakhs. 1039 00:57:45,120 --> 00:57:46,680 In August, we did Rs. 5 lakhs. 1040 00:57:46,800 --> 00:57:48,840 In September, Rs. 6 lakhs. 1041 00:57:48,920 --> 00:57:51,920 October was approximately Rs. 3 lakhs. 1042 00:57:52,040 --> 00:57:54,480 This must be placement, mostly. 1043 00:57:55,520 --> 00:57:58,360 - And the number is between Rs. 5-Rs. 6 lakhs. - Yes. 1044 00:57:58,440 --> 00:58:01,200 - What is the reason? - The first placement that we had... 1045 00:58:01,400 --> 00:58:03,680 Yes, it just went into the placement. 1046 00:58:03,960 --> 00:58:04,840 After that, 1047 00:58:04,920 --> 00:58:07,240 our website went live in May. 1048 00:58:10,480 --> 00:58:13,200 30% is online. 70% is offline. 1049 00:58:14,360 --> 00:58:16,560 How many tertiary events took place last month? 1050 00:58:16,720 --> 00:58:20,320 In the modern market, there were 71 bottles of tertiary. 1051 00:58:20,320 --> 00:58:21,800 The big bottles are priced at Rs. 1,299. 1052 00:58:21,840 --> 00:58:22,920 That is less. 1053 00:58:24,000 --> 00:58:26,320 - Yes! - We have not done marketing. 1054 00:58:26,440 --> 00:58:28,320 We are not doing anything. It is automatic... 1055 00:58:28,400 --> 00:58:29,600 You don't have a promoter? 1056 00:58:29,680 --> 00:58:31,240 - Nothing! - No promoters as of now. 1057 00:58:32,160 --> 00:58:34,040 Are online sales happening without marketing? 1058 00:58:34,120 --> 00:58:36,600 We started allocating a small budget for performance marketing. 1059 00:58:36,600 --> 00:58:38,440 What is the budget and how much did you sell? 1060 00:58:38,600 --> 00:58:40,600 We get orders worth Rs. 1.5 lakhs 1061 00:58:40,680 --> 00:58:43,080 after spending Rs. 1 lakh on online marketing. 1062 00:58:43,400 --> 00:58:45,600 I doubt you are making money. 1063 00:58:45,680 --> 00:58:47,320 - We are losing money. - How much? 1064 00:58:47,480 --> 00:58:50,200 The average total burn is between Rs. 5.5-Rs. 6 lakhs. 1065 00:58:50,280 --> 00:58:52,680 - Oh my! Sales of Rs. 5 lakhs and burn of Rs. 5 lakhs. - Yes. 1066 00:58:53,200 --> 00:58:54,720 How much is your gross margin? 1067 00:59:12,360 --> 00:59:14,440 We did one round with Angels. 1068 00:59:14,520 --> 00:59:16,160 Introduce us to these Angels who give 1069 00:59:16,240 --> 00:59:19,240 a valuation of Rs. 24 crores for sales of Rs. 5 lakhs. 1070 00:59:20,080 --> 00:59:23,480 We did a soft launch in January. 1071 00:59:23,640 --> 00:59:26,880 We gave our products to mixologists, chefs 1072 00:59:26,960 --> 00:59:28,960 and others to give feedback. 1073 00:59:29,040 --> 00:59:30,600 Based on the feedback, 1074 00:59:30,720 --> 00:59:31,840 we went to them 1075 00:59:31,920 --> 00:59:34,920 and with his network, we already had orders. 1076 00:59:35,080 --> 00:59:36,400 How much capital did they provide? 1077 00:59:36,480 --> 00:59:38,280 We raised Rs. 85 lakhs from them. 1078 00:59:38,360 --> 00:59:39,800 We raised CCDs. 1079 00:59:40,120 --> 00:59:41,840 Floor is at Rs. 19.2 crores. 1080 00:59:42,080 --> 00:59:43,360 Cap is at 24. 1081 00:59:43,480 --> 00:59:45,640 And why did you raise CCD as your first round? 1082 00:59:51,480 --> 00:59:53,440 in June 2023. 1083 00:59:53,640 --> 00:59:55,040 Okay! How much did you raise there? 1084 00:59:55,120 --> 00:59:57,520 Rs. 25 lakhs at Rs. 5 crores valuation. 1085 01:00:00,160 --> 01:00:02,680 We have around Rs. 3 lakhs in our bank account. 1086 01:00:02,760 --> 01:00:05,680 And Rs. 18 lakhs as receivables from debtors. 1087 01:00:09,640 --> 01:00:12,800 - No, not both of you. - In your business. 1088 01:00:13,440 --> 01:00:14,560 In your business. 1089 01:00:15,120 --> 01:00:17,200 In simple words, 1090 01:00:17,400 --> 01:00:19,680 the train has left the platform. 1091 01:00:20,680 --> 01:00:23,280 Because we are getting repeat orders from good restaurants. 1092 01:00:23,360 --> 01:00:24,840 Customers are giving us repeat orders. 1093 01:00:24,920 --> 01:00:26,000 Our plan is, 1094 01:00:26,120 --> 01:00:29,040 if we don't get the funding, we will reduce the burn 1095 01:00:29,120 --> 01:00:31,000 and we will keep the business going with our sales. 1096 01:00:31,000 --> 01:00:33,360 Receiving funding seems dicey. 1097 01:00:33,560 --> 01:00:36,800 No! We still... I know those who come here say this. 1098 01:00:36,880 --> 01:00:38,720 But we also have soft commitments. 1099 01:00:39,640 --> 01:00:41,480 Everyone who comes here says this, it seems! 1100 01:00:41,600 --> 01:00:44,880 - I know you take this lightly. - And you are selling soft drinks. 1101 01:00:45,720 --> 01:00:47,080 We spoke with VC. 1102 01:00:47,200 --> 01:00:50,280 They asked for a minimum of Rs. 50 lakhs in sales. 1103 01:00:50,360 --> 01:00:51,720 We saw each other's faces and said 1104 01:00:51,760 --> 01:00:53,440 if that were the case, we would've managed. 1105 01:00:53,520 --> 01:00:55,480 [laughing] 1106 01:00:56,640 --> 01:00:59,400 Let's assume your money issue has been resolved. 1107 01:01:00,240 --> 01:01:01,960 How will you make this a big business? 1108 01:01:02,040 --> 01:01:05,040 In HORECA, we want to make a team of mixologists 1109 01:01:05,360 --> 01:01:06,400 and promote this. 1110 01:01:06,480 --> 01:01:09,320 Distributors have told us that they will put our product 1111 01:01:09,760 --> 01:01:11,520 in 100 restaurants in three days 1112 01:01:11,600 --> 01:01:13,040 if we hire a team of mixologists. 1113 01:01:13,120 --> 01:01:14,920 We want more people to drink this. 1114 01:01:15,120 --> 01:01:17,440 The more people we give it to, the more it will grow. 1115 01:01:17,520 --> 01:01:20,560 So, Ishan and Mr. Aamir Khan, 1116 01:01:24,480 --> 01:01:26,400 Both of you already have businesses. 1117 01:01:27,600 --> 01:01:29,920 This becomes a good business to try out. 1118 01:01:31,400 --> 01:01:34,400 I think this is category creation, which will need a lot of money. 1119 01:01:34,480 --> 01:01:35,960 What will it become? 1120 01:01:36,160 --> 01:01:37,880 Both of you are interesting founders. 1121 01:01:38,000 --> 01:01:39,680 It will be fun working with you. 1122 01:01:40,640 --> 01:01:43,720 You can come to me for some other business, but not this one. 1123 01:01:43,920 --> 01:01:45,440 Unfortunately, I am out. 1124 01:01:53,000 --> 01:01:57,720 And I like your branding and positioning. 1125 01:01:57,800 --> 01:01:59,560 But I have a few problems with this business. 1126 01:02:00,280 --> 01:02:02,720 I believe your go-to-market 1127 01:02:02,960 --> 01:02:06,200 for Rs. 5 lakhs per month business is confused. 1128 01:02:08,720 --> 01:02:10,520 The only time 1129 01:02:10,600 --> 01:02:13,760 when people want such a cool thing is during social drinking. 1130 01:02:15,440 --> 01:02:19,120 You came up with this product too soon. 1131 01:02:20,720 --> 01:02:24,720 I think you are not patient enough 1132 01:02:24,960 --> 01:02:28,080 to build a category creation business. 1133 01:02:29,320 --> 01:02:31,040 That's why I am out. 1134 01:02:31,160 --> 01:02:34,760 And I think you shouldn't raise the valuation of Rs. 24 crores 1135 01:02:35,040 --> 01:02:36,960 because you will keep getting impatient. 1136 01:02:38,000 --> 01:02:42,240 The product you have is a bit in the early stage. 1137 01:02:42,480 --> 01:02:43,840 It has only been six months. 1138 01:02:46,040 --> 01:02:49,080 Many hotels are willing to try your products, we will also do that. 1139 01:02:49,160 --> 01:02:50,920 Since I believe that 1140 01:02:51,080 --> 01:02:53,320 your product-market fit is not quite there at the moment, 1141 01:02:53,520 --> 01:02:55,280 for that reason, I am out. 1142 01:03:01,720 --> 01:03:04,000 they have been almost flat. 1143 01:03:04,240 --> 01:03:07,880 The demand for the product does not fit in. 1144 01:03:09,240 --> 01:03:10,960 For that reason, I am out. 1145 01:03:14,600 --> 01:03:17,240 You are overestimating this market. 1146 01:03:17,880 --> 01:03:19,680 Indian consumers have 1147 01:03:19,840 --> 01:03:23,040 - just started consuming in the last 5-15 years. True. 1148 01:03:23,160 --> 01:03:25,680 Now, they want full indulgence. 1149 01:03:26,520 --> 01:03:30,360 When I asked you, what will you do if you have 1150 01:03:30,440 --> 01:03:31,680 infinite resources? 1151 01:03:32,000 --> 01:03:33,920 And if our answer is 1152 01:03:34,600 --> 01:03:35,840 'we will do sampling,' 1153 01:03:37,160 --> 01:03:42,320 then I think our aperture is narrow. 1154 01:03:42,400 --> 01:03:44,240 We will need to increase the aperture a bit. 1155 01:03:44,600 --> 01:03:47,080 But for that, we might have to evolve our product. 1156 01:03:56,600 --> 01:03:59,760 'In India, between 2005-2022, 1157 01:04:00,080 --> 01:04:02,800 the number of consumers in men and women has come down. 1158 01:04:03,120 --> 01:04:04,480 But consumption has increased. 1159 01:04:04,560 --> 01:04:06,400 So, people who are drinking are consuming more. 1160 01:04:06,480 --> 01:04:07,840 But if you look at government data. 1161 01:04:07,880 --> 01:04:10,200 The number went from 32% to 22%. 1162 01:04:10,280 --> 01:04:12,760 As Aman said, he thought 1163 01:04:12,840 --> 01:04:14,040 both the founders were smart. 1164 01:04:14,120 --> 01:04:15,840 When smart, talented people 1165 01:04:15,920 --> 01:04:18,520 enter a particular category, they do so after careful consideration. 1166 01:04:18,560 --> 01:04:20,560 They can see something that motivates them to take that step. 1167 01:04:20,560 --> 01:04:21,840 They don't blindly jump into it. 1168 01:04:21,920 --> 01:04:24,760 Ishan and Aamir, welcome to the PokerBaazi Zone, 1169 01:04:24,840 --> 01:04:26,080 where you hold the cards. 1170 01:04:26,200 --> 01:04:27,480 Let's have some fun. 1171 01:04:27,560 --> 01:04:28,760 Have you played poker? 1172 01:04:29,200 --> 01:04:30,840 - Yeah! - Not me. 1173 01:04:30,920 --> 01:04:31,840 - I have. - But you have. 1174 01:04:31,920 --> 01:04:32,760 So you would know 1175 01:04:32,800 --> 01:04:35,080 - the similarity between poker and business. - Absolutely! 1176 01:04:39,360 --> 01:04:40,760 These are the sequences. 1177 01:05:08,960 --> 01:05:10,320 - Then it will be... - Sales. 1178 01:05:10,400 --> 01:05:12,240 Sales is your full house. 1179 01:05:12,360 --> 01:05:14,080 - And then? - And marketing. 1180 01:05:14,160 --> 01:05:15,960 - That's the flush. - Flush. 1181 01:05:16,160 --> 01:05:18,840 Usually, marketing comes before sales. 1182 01:05:18,920 --> 01:05:20,720 Because there are no sales without marketing. 1183 01:05:20,800 --> 01:05:24,360 So, why did you switch flush? 1184 01:05:24,440 --> 01:05:25,720 We come from the same background. 1185 01:05:25,800 --> 01:05:27,200 He is from sales and I am from marketing. 1186 01:05:27,240 --> 01:05:30,040 So, for us, sales and marketing are equal. 1187 01:05:56,280 --> 01:05:58,480 You too download the PokerBaazi app, 1188 01:05:58,560 --> 01:06:00,600 apply strategy and make a winning hand. 1189 01:06:00,680 --> 01:06:02,000 And download the app now. 1190 01:06:06,000 --> 01:06:09,360 They say hair is not only about style. 1191 01:06:09,640 --> 01:06:12,280 It plays a big role in confidence. 1192 01:06:19,160 --> 01:06:20,680 'Like permanent hair extensions,' 1193 01:06:20,760 --> 01:06:24,520 'temporary extensions that can be DIYed and wigs.' 1194 01:06:24,600 --> 01:06:26,760 'My ask is' 1195 01:06:26,960 --> 01:06:29,240 'Rs. 60 lakhs for 2% equity.' 1196 01:06:29,320 --> 01:06:30,960 - 'Whoa! - Oh my!' 1197 01:06:31,160 --> 01:06:32,840 How much have you done in sales? 1198 01:06:32,920 --> 01:06:35,600 'In around five months, we did Rs. 2.5 crores.' 1199 01:06:35,720 --> 01:06:37,120 - 'Wow! - Nice!' 1200 01:06:37,680 --> 01:06:40,320 Our today's founders gave confidence 1201 01:06:40,480 --> 01:06:43,320 to the entire world with their premium hair extensions. 1202 01:06:43,480 --> 01:06:45,800 'You are here for validation.' 1203 01:06:46,080 --> 01:06:47,760 'You got validation from 5 judges.' 1204 01:06:47,880 --> 01:06:49,000 - 'You have one offer. - Yes!' 1205 01:06:49,000 --> 01:06:51,920 'There are three Sharks. Anupam, Peyush and Ashneer.' 1206 01:06:52,000 --> 01:06:54,000 'Rs. 60 lakhs for 5%.' 1207 01:06:54,120 --> 01:06:56,480 'On the other hand, you have Vineeta and me' 1208 01:06:56,560 --> 01:06:59,200 'with the same offer of Rs. 60 lakhs for 6%.' 1209 01:06:59,280 --> 01:07:01,600 'Ashneer, Anupam and Peyush,' 1210 01:07:01,960 --> 01:07:04,040 'please accept the counteroffer of 4%.' 1211 01:07:04,120 --> 01:07:05,360 'Accepted! Done!' 1212 01:07:05,800 --> 01:07:07,560 'Congratulations!' 1213 01:07:08,840 --> 01:07:11,120 Hello and welcome to Adani presents Beyond the Tank. 1214 01:07:11,200 --> 01:07:13,400 Adani celebrates every Indian's 1215 01:07:13,520 --> 01:07:15,240 'Hum Karke Dikhate Hain' spirit. 1216 01:07:15,360 --> 01:07:19,000 In this special segment, we speak with founders 1217 01:07:19,240 --> 01:07:21,960 who achieved success and turned their dreams into reality. 1218 01:07:22,040 --> 01:07:23,800 We have with us the visionaries, 1219 01:07:23,960 --> 01:07:26,000 the founders of HairOriginals, 1220 01:07:26,360 --> 01:07:27,760 Piyush and Jitendra. 1221 01:07:27,880 --> 01:07:30,920 So, let's speak with the founders who made it. 1222 01:07:31,080 --> 01:07:32,160 How is it going? 1223 01:07:32,240 --> 01:07:35,600 If you go to any city in India, you will find our stores. 1224 01:07:35,680 --> 01:07:39,240 The valuations have gone up by 10%. 1225 01:07:39,360 --> 01:07:41,880 When we were aired in Season 1, no one knew 1226 01:07:41,960 --> 01:07:43,040 about hair. 1227 01:07:43,120 --> 01:07:44,440 When I first told people 1228 01:07:44,560 --> 01:07:48,240 about it, they thought I'd bring hair from temples and sell it. 1229 01:07:48,440 --> 01:07:50,200 Even I thought so. 1230 01:07:50,280 --> 01:07:51,200 I'm being really honest. 1231 01:07:51,280 --> 01:07:52,880 I'm proud to say that through Hair Originals 1232 01:07:52,920 --> 01:07:55,080 and of course, Shark Tank, 1233 01:07:55,160 --> 01:07:58,480 the world, especially India, now knows about hair extensions. 1234 01:07:58,600 --> 01:08:01,000 Earlier I had to sit them down and explain what it is. 1235 01:08:01,080 --> 01:08:04,040 I'd also like to say that it's quite a unique category 1236 01:08:04,120 --> 01:08:06,880 that encompasses 'from the woman, by the woman, for the woman'. 1237 01:08:06,960 --> 01:08:08,240 This means the raw material for 1238 01:08:08,320 --> 01:08:10,080 this product is produced by women, 1239 01:08:10,160 --> 01:08:12,920 the ones making it in the factory are also women. 1240 01:08:13,000 --> 01:08:14,760 and of course, our users 1241 01:08:14,880 --> 01:08:16,880 are also women amongst others. 1242 01:08:16,960 --> 01:08:19,200 You had been on Shark Tank season one. 1243 01:08:19,280 --> 01:08:22,720 Back then no one knew how this was going to impact you 1244 01:08:22,800 --> 01:08:25,400 because it wasn't known in India. It was talked about outside India. 1245 01:08:25,440 --> 01:08:26,680 What were your expectations? 1246 01:08:26,760 --> 01:08:29,520 Firstly, we wanted to validate it ourselves 1247 01:08:29,600 --> 01:08:33,200 that the product or category that we've chosen is viable. 1248 01:08:33,280 --> 01:08:35,600 So it was definitely very validating. 1249 01:08:35,680 --> 01:08:38,800 Then when it went on air, we received around 27000 calls 1250 01:08:38,920 --> 01:08:40,080 on our phones. 1251 01:08:40,160 --> 01:08:41,520 Our website crashed. 1252 01:08:41,600 --> 01:08:43,520 You said that you received validation here. 1253 01:08:43,600 --> 01:08:45,680 Were you not sure about your product? 1254 01:08:45,800 --> 01:08:48,880 This market is worth 14 billion dollars across the world. 1255 01:08:48,960 --> 01:08:51,760 And in India, it is vastly governed by 1256 01:08:51,880 --> 01:08:54,480 the hair donations made to temples. 1257 01:08:54,560 --> 01:08:56,360 With the market that I had assessed, 1258 01:08:56,440 --> 01:08:58,160 all the demand was outside India. 1259 01:08:58,280 --> 01:09:01,960 And with the way India's investment eco-system is, we were concerned 1260 01:09:02,040 --> 01:09:04,480 about the way it would be received. 1261 01:09:04,560 --> 01:09:06,760 Basically, we needed validation on our category creation. 1262 01:09:06,800 --> 01:09:09,080 In terms of how much would this category boom in India. 1263 01:09:09,160 --> 01:09:11,440 Hair is an emotional aspect for everyone. 1264 01:09:11,520 --> 01:09:13,440 We even have consumer cases 1265 01:09:13,520 --> 01:09:15,480 where our users are cancer patients 1266 01:09:15,600 --> 01:09:17,120 and alopecia patients. 1267 01:09:17,200 --> 01:09:20,920 But I think all of these interesting and beautiful stories, 1268 01:09:21,000 --> 01:09:23,120 and the impact they have on people, 1269 01:09:23,200 --> 01:09:27,120 that was more of a motivation for us than the fame. 1270 01:09:27,200 --> 01:09:29,040 I have a 9-year-old daughter. 1271 01:09:29,120 --> 01:09:31,120 She donated her hair last year. 1272 01:09:31,240 --> 01:09:35,280 She volunteered to donate for a good cause. 1273 01:09:35,640 --> 01:09:36,640 Wow! 1274 01:09:36,720 --> 01:09:40,120 And looking at you, I'm sure she had beautiful hair. 1275 01:09:40,320 --> 01:09:42,320 You said that hair is supplied outside. 1276 01:09:42,400 --> 01:09:43,480 They have hair in other countries. 1277 01:09:43,520 --> 01:09:46,360 Donation of hair only takes place in India. 1278 01:09:46,480 --> 01:09:49,560 In temples of Southern India, there are traditions 1279 01:09:49,760 --> 01:09:51,640 where women also donate their hair. 1280 01:09:51,680 --> 01:09:52,320 Right. 1281 01:09:52,400 --> 01:09:54,520 And because of this tradition of spirituality, 1282 01:09:54,680 --> 01:09:57,440 this donation builds up. 1283 01:09:57,520 --> 01:10:00,160 And that's why, ethically-sourced hair 1284 01:10:00,240 --> 01:10:02,080 can only be found in India. 1285 01:10:02,160 --> 01:10:04,960 In fact, the D2C brand that we created in the US, 1286 01:10:05,040 --> 01:10:06,600 the theme we built for that is 1287 01:10:06,720 --> 01:10:09,200 ethically sourced hair from India. 1288 01:10:09,360 --> 01:10:12,320 It's with pride that we sit here today and tell you 1289 01:10:12,400 --> 01:10:14,280 that we have centres in 11 cities. 1290 01:10:14,400 --> 01:10:16,600 Two of them are at Coimbatore and Hyderabad airports. 1291 01:10:16,720 --> 01:10:18,520 We have three centres in Canada. 1292 01:10:18,680 --> 01:10:20,480 We're opening in Houston soon. 1293 01:10:20,560 --> 01:10:22,560 And in the next 16 months 1294 01:10:22,680 --> 01:10:25,320 we're going to open 42 centres across India where we'll be joined 1295 01:10:25,560 --> 01:10:29,120 by an A-list Bollywood celebrity as our co-founder. 1296 01:10:29,200 --> 01:10:31,280 Oh? I want to know what you think 1297 01:10:31,400 --> 01:10:34,680 is the best advice you received on Shark Tank 1298 01:10:34,760 --> 01:10:36,480 which proved very good for you. 1299 01:10:36,560 --> 01:10:38,400 Peyush played a huge role 1300 01:10:38,480 --> 01:10:40,640 in creating our D2C brand. 1301 01:10:40,720 --> 01:10:43,440 He has guided us so well that we're now 1302 01:10:43,560 --> 01:10:45,400 the top players in this category. 1303 01:10:45,480 --> 01:10:49,840 As for Anupam, I'd say he's a treasure trove of knowledge. 1304 01:10:49,920 --> 01:10:52,040 - Truly. - No matter what you discuss 1305 01:10:52,120 --> 01:10:53,760 with him, he has such brilliant ideas. 1306 01:10:53,840 --> 01:10:55,320 With respect to Ashneer, I think 1307 01:10:55,400 --> 01:10:58,360 he can give you solutions within a minute if he feels he has one. 1308 01:10:58,640 --> 01:11:01,080 So, of course, Shark Tank has been very beneficial for us. 1309 01:11:01,160 --> 01:11:03,560 You're running a huge business. Of course, it can't be a piece of cake. 1310 01:11:03,600 --> 01:11:05,320 You might have faced some challenges like every industry does. 1311 01:11:05,360 --> 01:11:08,240 The most challenging points are on the supply-chain side, 1312 01:11:08,240 --> 01:11:09,560 the manufacturing side. 1313 01:11:09,680 --> 01:11:11,960 The hair you get from a temple, 1314 01:11:12,040 --> 01:11:13,520 it's in quite a different form. 1315 01:11:13,640 --> 01:11:15,240 The end product that you see, 1316 01:11:15,320 --> 01:11:16,040 - It's beautiful! - that is 1317 01:11:16,120 --> 01:11:17,840 a very complicated process. 1318 01:11:17,920 --> 01:11:21,800 That's a challenge. Secondly, this industry is still largely manual. 1319 01:11:21,880 --> 01:11:22,720 Whatever we're doing, 1320 01:11:22,800 --> 01:11:26,120 we're trying to shift it from manual to automation. 1321 01:11:26,240 --> 01:11:29,480 We're trying to use robotics as well as other things 1322 01:11:29,600 --> 01:11:31,400 in order to automate this industry. 1323 01:11:31,480 --> 01:11:33,360 You increased your valuation by ten times, 1324 01:11:45,960 --> 01:11:47,440 This is the Adani Hall of Achievements 1325 01:11:47,480 --> 01:11:50,600 where we cover the success of founders. 1326 01:11:50,680 --> 01:11:52,040 How do you feel? 1327 01:11:52,120 --> 01:11:53,760 It feels like this is where it all began. 1328 01:11:53,840 --> 01:11:55,840 Whatever we've achieved today, 1329 01:11:55,920 --> 01:11:57,280 was founded here. 1330 01:11:57,360 --> 01:11:58,560 Sir, you're too kind. 1331 01:11:58,640 --> 01:12:01,040 To honour and support your 'can do' attitude and passion, 1332 01:12:01,120 --> 01:12:04,280 we'd like to present you with a special gesture on behalf of Adani. 1333 01:12:10,440 --> 01:12:11,880 - How's it going? - Hi, sir. 1334 01:12:12,760 --> 01:12:13,840 Good to see you, man. 1335 01:12:13,960 --> 01:12:16,360 - Congratulations. - Thank you. 1336 01:12:16,640 --> 01:12:18,120 How much is your valuation now? 1337 01:12:18,200 --> 01:12:21,400 After this on-going round, it'll be 150. 1338 01:12:21,640 --> 01:12:23,480 How can you expand it? In which category? 1339 01:12:23,640 --> 01:12:26,320 We've added other products with hair extensions. 1340 01:12:26,400 --> 01:12:28,920 Then we've powders that are hair-related. 1341 01:12:29,040 --> 01:12:32,800 We've covered those products. I'd like to say, eventually, 1342 01:12:32,960 --> 01:12:36,080 we'd cover instant hair patching or make-up but long-term. 1343 01:12:36,120 --> 01:12:37,160 I'm telling you, 1344 01:12:37,520 --> 01:12:38,880 focus solely on hair extensions. 1345 01:12:38,920 --> 01:12:40,480 Then venture out later. 1346 01:12:40,600 --> 01:12:41,760 What they're doing, 1347 01:12:41,880 --> 01:12:45,120 if others start scaling their business, they can still 1348 01:12:45,280 --> 01:12:47,040 open 1000 stores for hair extensions. 1349 01:12:47,160 --> 01:12:48,560 What's the revenue currently? 1350 01:12:48,640 --> 01:12:50,840 At gross level, we're at Rs. 2.5 crores. 1351 01:12:50,880 --> 01:12:51,720 Very nice. 1352 01:12:51,840 --> 01:12:53,720 - Net? - Around Rs. 2 crores. 1353 01:12:53,800 --> 01:12:55,840 - Deducting everything... - Alright. 1354 01:12:55,920 --> 01:12:57,360 - So good to see you. Best of luck. - Thank you. 1355 01:12:57,360 --> 01:12:58,400 Thank you, sir. 1356 01:12:58,680 --> 01:12:59,920 Alright, sir. 1357 01:13:00,320 --> 01:13:01,320 See you. 1358 01:13:15,240 --> 01:13:15,960 Of course. 1359 01:13:16,080 --> 01:13:19,120 We have Dhitti, a 21-year-old from Hyderabad. She writes, 1360 01:13:38,360 --> 01:13:42,080 If we look at all the news consumers broadly, 1361 01:13:42,160 --> 01:13:43,280 they can be divided into two parts. 1362 01:13:43,280 --> 01:13:46,240 There are active consumers of news and passive consumers of news. 1363 01:13:46,800 --> 01:13:50,480 Those who use social media for news consumption are passive consumers. 1364 01:13:50,560 --> 01:13:54,160 They look for tidbits or broader headlines. 1365 01:13:54,360 --> 01:13:57,040 They were anyway not our target audience. 1366 01:13:57,160 --> 01:14:00,280 There are people who seek news actively. 1367 01:14:00,360 --> 01:14:02,920 Those who want to read news willingly.