1 00:00:22,680 --> 00:00:24,480 [theme music playing] 2 00:00:34,560 --> 00:00:36,360 [theme music playing] 3 00:00:43,960 --> 00:00:45,760 [theme music playing] 4 00:01:05,800 --> 00:01:08,160 Sharks, we are all aware 5 00:01:08,280 --> 00:01:10,480 of modern health issues 6 00:01:10,640 --> 00:01:13,640 like low energy, weak immunity 7 00:01:13,720 --> 00:01:17,440 and poor gut health. The main reason behind this is the nutrition gap. 8 00:01:17,520 --> 00:01:21,520 But I don't know how to bridge this gap. 9 00:01:21,600 --> 00:01:23,480 [laughing] 10 00:01:25,360 --> 00:01:28,760 Don't worry, Nutrition Genie is here! 11 00:01:29,040 --> 00:01:30,600 What order do you have for me, sir? 12 00:01:30,680 --> 00:01:33,080 I wish there were an easy way 13 00:01:33,160 --> 00:01:37,760 to provide my family with good nutrition every day. 14 00:01:38,040 --> 00:01:41,680 That's all? Here you go. 15 00:01:43,080 --> 00:01:45,800 Feed them bottle gourd, Indian squash and sponge gourd. 16 00:01:45,880 --> 00:01:49,040 Mr. Genie, when I mention healthy vegetables, 17 00:01:49,120 --> 00:01:52,960 my family comes up with new excuses. 18 00:01:53,040 --> 00:01:54,360 Then try this. 19 00:01:54,720 --> 00:01:56,960 Multivitamins, tablets, syrups, 20 00:01:57,040 --> 00:01:58,280 health drinks, gummies. 21 00:01:58,640 --> 00:02:01,040 Mr. Genie, these are bitter medicines 22 00:02:01,120 --> 00:02:02,440 and it's full of sugar. 23 00:02:02,520 --> 00:02:06,120 There's no way I can give this to my family. Impossible! 24 00:02:06,240 --> 00:02:07,480 Amazing! 25 00:02:07,560 --> 00:02:10,680 Impossible! It is impossible to fulfil your wish! 26 00:02:11,080 --> 00:02:15,240 I wish there was someone who could fulfil my wish. 27 00:02:15,720 --> 00:02:16,960 Found it! 28 00:02:18,160 --> 00:02:19,440 There it is! 29 00:02:19,520 --> 00:02:21,120 What? 30 00:02:21,560 --> 00:02:24,800 Good Monk. Mix it with food 31 00:02:24,960 --> 00:02:27,040 and fix your family's nutrition. 32 00:02:27,120 --> 00:02:29,040 Yes! This is perfect. 33 00:02:31,120 --> 00:02:32,400 Lovely! That was brilliant acting! 34 00:02:32,440 --> 00:02:33,480 You practised a lot. 35 00:02:42,440 --> 00:02:43,880 We are from Bengaluru. 36 00:02:44,080 --> 00:02:46,560 Along with expert nutritionists 37 00:02:46,640 --> 00:02:48,960 and food technologists, 38 00:02:49,040 --> 00:02:51,480 we created a unique powdered formula 39 00:03:15,680 --> 00:03:20,240 a 95% improvement in people's energy, immunity, and gut health. 40 00:03:32,360 --> 00:03:35,520 we have positively impacted 40,000 families. 41 00:03:35,600 --> 00:03:39,600 Our vision is to bring easy and effective nutrition 42 00:03:39,680 --> 00:03:42,480 to every household's dining table. 43 00:03:42,840 --> 00:03:45,120 And this will be our greatest victory. 44 00:03:45,440 --> 00:03:49,560 For this, our ask is Rs. 1 crore of investment 45 00:03:49,640 --> 00:03:52,280 for 1.67% equity in our company. 46 00:03:56,920 --> 00:03:58,920 - and fix your nutrition. - Fix your nutrition. 47 00:04:07,720 --> 00:04:10,400 I am from Gurugram and I come from a business family. 48 00:04:10,840 --> 00:04:13,720 I graduated with Bachelor's in Information Technology. 49 00:04:13,800 --> 00:04:15,920 And Master's in Computer Applications. 50 00:04:16,080 --> 00:04:18,080 After that, we got married. 51 00:04:18,200 --> 00:04:20,120 And we have two lovely sons. 52 00:04:20,200 --> 00:04:22,920 They are 16 and 14 years old. 53 00:04:23,520 --> 00:04:26,640 I was born and raised in Rishikesh. 54 00:04:26,720 --> 00:04:30,600 After 12th grade, I did engineering at IIT Varanasi. 55 00:04:30,680 --> 00:04:33,360 After 4 years of Engineering, I went to IIM Kolkata. 56 00:04:39,040 --> 00:04:42,320 I worked with them for almost 15 years. 57 00:04:42,440 --> 00:04:43,720 What was your last role? 58 00:04:43,800 --> 00:04:45,000 Category Head for Chocolates. 59 00:04:47,920 --> 00:04:49,360 Dairy Milk Colour. 60 00:04:50,280 --> 00:04:53,240 They used to joke that if we slit our wrist, the blood will be purple. 61 00:04:53,320 --> 00:04:54,800 [laughing] 62 00:04:54,880 --> 00:04:57,000 - Your first company is your first love. - Yeah. 63 00:04:57,080 --> 00:04:59,040 After that, I moved to Diageo. 64 00:04:59,120 --> 00:05:03,040 I joined them as Chief Innovation Officer. 65 00:05:03,160 --> 00:05:06,320 After that, I got promoted to a more operational job 66 00:05:06,400 --> 00:05:09,880 where I led the business of Indian spirits. 67 00:05:14,880 --> 00:05:17,800 Ritesh, the powdered products in the market 68 00:05:17,920 --> 00:05:19,520 have a taste to them. 69 00:05:19,600 --> 00:05:20,800 They have a different design. 70 00:05:20,880 --> 00:05:22,880 It is targeted at adult audience. 71 00:05:22,960 --> 00:05:24,080 Your products are tasteless. 72 00:05:24,200 --> 00:05:27,800 Kunal, if I give it to you as it is, they all have a taste. 73 00:05:27,920 --> 00:05:30,840 But our patented approach 74 00:05:30,920 --> 00:05:34,760 is that when you mix everything and add it to your food. 75 00:05:41,000 --> 00:05:43,880 - Please go ahead, sir. - Sure, we will. 76 00:05:46,360 --> 00:05:47,760 Let's start from here. 77 00:05:47,840 --> 00:05:49,920 - My wife will start from there. - Okay. 78 00:05:52,480 --> 00:05:53,560 - Oh! - What is this, ma'am? 79 00:05:53,640 --> 00:05:54,680 This is dal. 80 00:05:57,200 --> 00:05:59,680 Sharks, you have two bowls. 81 00:05:59,760 --> 00:06:01,680 One bowl contains plain dal, 82 00:06:01,760 --> 00:06:05,560 and in the other, we've added Good Monk to the dal. 83 00:06:05,680 --> 00:06:07,920 You need to taste both 84 00:06:08,000 --> 00:06:10,480 and tell us the difference and which one contains Good Monk. 85 00:06:10,560 --> 00:06:12,000 I am thinking of my children. 86 00:06:28,080 --> 00:06:30,040 I think both taste the same. 87 00:06:30,160 --> 00:06:31,480 So you think they taste the same? 88 00:06:31,560 --> 00:06:33,240 - There is no difference in taste. - Yes. 89 00:06:36,360 --> 00:06:41,080 They are similar. The one to my left is slightly thicker. 90 00:06:41,200 --> 00:06:43,800 - But I think they are quite similar. - I agree. 91 00:06:43,880 --> 00:06:46,520 Does the red dot or the black dot contain your product? 92 00:06:46,640 --> 00:06:49,000 - What do you think? - Red dot. 93 00:06:49,640 --> 00:06:51,600 - Black dot! Oh my God! - It's the black one. Yes. 94 00:06:51,720 --> 00:06:52,760 Oh! 95 00:06:52,840 --> 00:06:55,520 - The black dot. The thicker dal has a red dot. - I thought it was red. 96 00:06:55,520 --> 00:06:56,960 I thought it was the red one. 97 00:06:57,040 --> 00:06:58,240 You tricked us. 98 00:06:58,320 --> 00:06:59,760 [laughing] 99 00:07:00,080 --> 00:07:02,000 We've been tricking everyone. 100 00:07:02,080 --> 00:07:04,040 - Amazing! - We've been tricking the children. 101 00:07:04,120 --> 00:07:06,840 - I love this. Revenge on the children. - Yeah. 102 00:07:07,960 --> 00:07:10,520 Look at this. This is the quantum 103 00:07:10,760 --> 00:07:13,440 of nutrients in plain dal. 104 00:07:13,600 --> 00:07:15,880 The amount of vitamin A, iron, 105 00:07:15,960 --> 00:07:17,960 D, B12, B9, B6 in the normal dal. 106 00:07:18,040 --> 00:07:21,960 This is the nutrient value in dal without Good Monk. 107 00:07:22,040 --> 00:07:23,840 If we go to the next slide, 108 00:07:24,360 --> 00:07:27,360 you will see that the dal with Good Monk 109 00:07:27,440 --> 00:07:30,640 - has improved the nutrient value. - Oh my! 110 00:07:30,920 --> 00:07:35,200 Ultimately, we are giving a regular dose of medicine to children. 111 00:07:35,720 --> 00:07:39,480 When we eat natural food, you showed us a bottle gourd. 112 00:07:39,560 --> 00:07:40,760 They have natural ingredients. 113 00:07:40,800 --> 00:07:43,560 Now, we've started giving children a daily dose. 114 00:07:43,640 --> 00:07:46,000 His life will be dependant on that dose. 115 00:07:50,400 --> 00:07:52,880 As parent founders, 116 00:07:53,080 --> 00:07:54,560 we always say 117 00:07:54,680 --> 00:07:57,320 that we should feed our family. 118 00:07:57,400 --> 00:07:59,840 Give them healthy food, there is nothing better than that. 119 00:08:00,040 --> 00:08:04,840 But the reality is that it is not possible. 120 00:08:05,000 --> 00:08:08,560 80% of Indians have micronutrient deficiency. 121 00:08:15,280 --> 00:08:19,040 Over four months of regular usage with 72 participants, 122 00:08:19,120 --> 00:08:20,600 we conducted safety tests, 123 00:08:20,680 --> 00:08:23,160 including liver and urine tests, 124 00:08:23,240 --> 00:08:24,680 as well as blood markers. 125 00:08:29,160 --> 00:08:30,280 On whom did you conduct the testing? 126 00:08:30,320 --> 00:08:33,680 We had external contestants. We conducted tests on external CRO. 127 00:08:38,160 --> 00:08:39,600 It is different. 128 00:08:40,280 --> 00:08:41,440 Let's dig deeper. 129 00:08:41,680 --> 00:08:45,160 Everything isn't purple. We have green and red too. 130 00:08:45,280 --> 00:08:46,600 These sachets are important, right? 131 00:08:46,600 --> 00:08:47,600 - Yes. - Right! 132 00:08:47,680 --> 00:08:49,520 How many sachets do you put in one go? 133 00:08:49,640 --> 00:08:52,040 Say there is a bowl of food. 134 00:09:07,680 --> 00:09:09,520 When we launched, 135 00:09:35,680 --> 00:09:36,680 That is a good solution. 136 00:09:36,800 --> 00:09:39,280 Why didn't anyone else come up with this? 137 00:09:40,640 --> 00:09:43,760 Despite our background in product development and innovation, 138 00:09:43,880 --> 00:09:46,400 it took me 15 months to crack this. 139 00:09:46,520 --> 00:09:49,680 Because every ingredient has a taste, right? 140 00:09:50,040 --> 00:09:53,880 And when we add it to food, it shouldn't alter the taste. 141 00:09:54,160 --> 00:09:57,040 So, basically, the first was science and the second involved the chef. 142 00:09:57,200 --> 00:09:58,880 In the chef part, the challenge 143 00:09:58,960 --> 00:10:01,280 was determining how to mix 144 00:10:01,520 --> 00:10:03,720 each ingredient without changing the taste. 145 00:10:04,080 --> 00:10:07,240 We understood the product. Effective and efficient. 146 00:10:07,400 --> 00:10:08,880 Sales? Numbers? 147 00:10:09,840 --> 00:10:13,960 We launched this in January 2023. 148 00:10:14,040 --> 00:10:18,360 In the first year, our net sales value was Rs. 75 lakhs. 149 00:10:19,800 --> 00:10:23,200 This year, our plan is Rs. 5 crores. 150 00:10:27,280 --> 00:10:28,840 Net was Rs. 35 lakhs. 151 00:10:28,960 --> 00:10:30,320 And the month before that? 152 00:10:30,400 --> 00:10:33,280 Around Rs. 33.5 lakhs. 153 00:10:33,560 --> 00:10:37,880 In February, our net sales were Rs. 6 lakhs. 154 00:10:46,040 --> 00:10:48,960 The overall burn is around Rs. 45 lakhs per month. 155 00:10:49,040 --> 00:10:50,600 On Rs. 35 lakhs of sales. 156 00:10:50,680 --> 00:10:52,840 On Rs. 35 lakhs of net sales. 157 00:10:53,640 --> 00:10:56,080 I will explain the breakup. 158 00:10:56,160 --> 00:10:57,840 25% is COGS. 159 00:10:57,920 --> 00:11:00,920 Our inherent gross margin is 75%. 160 00:11:01,000 --> 00:11:02,960 Our primary, secondary freight 161 00:11:03,040 --> 00:11:07,000 and marketplace commissions are around 16%. 162 00:11:07,120 --> 00:11:10,400 Our scale is currently smaller and our marketing cost 163 00:11:10,480 --> 00:11:14,280 is approximately 85% of performance marketing spends. 164 00:11:14,400 --> 00:11:15,720 Around 85% of? 165 00:11:15,800 --> 00:11:18,080 Of the sales. 85% of the net sales. 166 00:11:18,160 --> 00:11:19,680 To sell a product worth Rs. 100, 167 00:11:19,800 --> 00:11:21,880 you are spending Rs. 85 on marketing. 168 00:11:21,960 --> 00:11:23,080 Yes! 169 00:11:23,440 --> 00:11:24,800 Oh my! 170 00:11:25,280 --> 00:11:28,880 Which is roughly equivalent to a CAC of around Rs. 550. 171 00:11:37,000 --> 00:11:39,840 So, it has come down to Rs. 550 from Rs. 1,050. 172 00:11:40,440 --> 00:11:43,880 Our net CM2 is currently - 26%. 173 00:11:43,960 --> 00:11:47,120 We are on the road map 174 00:11:47,200 --> 00:11:49,520 to make it neutral by the end of January. 175 00:11:49,600 --> 00:11:53,600 The marketing cost is a big concern for me. It's 85%. 176 00:11:54,240 --> 00:11:57,880 - I understand that it is taking time to explain a new product - Yes. 177 00:11:57,960 --> 00:11:59,480 - You are spending a lot of money. - Sure. 178 00:11:59,480 --> 00:12:01,800 But you said you need to use this sachet every day. 179 00:12:01,920 --> 00:12:04,360 - People have to consume it daily. - Yes. 180 00:12:04,440 --> 00:12:06,360 How many percentage of the users 181 00:12:06,440 --> 00:12:09,960 are using it daily from the first time they purchased from you? 182 00:12:11,280 --> 00:12:15,440 In the last 3 months, 32% have come back to us. 183 00:12:21,800 --> 00:12:24,760 That customer comes back to us after around 50 days. 184 00:12:31,160 --> 00:12:33,040 22% of customers 185 00:12:33,160 --> 00:12:35,720 are repeat customers every month. 186 00:12:50,040 --> 00:12:52,440 70% of sales come from our website. 187 00:12:52,520 --> 00:12:55,360 25% of sales come from the marketplace. 188 00:12:55,440 --> 00:12:58,920 And 5% sales from retail. 189 00:12:59,000 --> 00:13:00,800 You couldn't make it to quick commerce yet. 190 00:13:00,880 --> 00:13:02,200 Hopefully, after Shark Tank. 191 00:13:02,880 --> 00:13:04,200 How much is the total burn? 192 00:13:04,320 --> 00:13:08,000 Until now, our total burn is roughly around Rs. 11 crores. 193 00:13:09,320 --> 00:13:10,400 - Oh! - Yeah! 194 00:13:10,520 --> 00:13:11,840 - 11? - Yes. 195 00:13:11,920 --> 00:13:14,960 Crazy! What are your total sales? 196 00:13:16,240 --> 00:13:18,080 - Lifetime sales? - Rs 2.75 crores. 197 00:13:22,080 --> 00:13:23,240 Yes. 198 00:13:23,320 --> 00:13:24,840 We were bootstrapped. 199 00:13:25,000 --> 00:13:27,640 So we put Rs. 1 crore of our own money 200 00:13:27,760 --> 00:13:30,160 towards the company to just get them all rolling. 201 00:13:30,280 --> 00:13:32,840 We did that. We have done two rounds now. 202 00:13:32,920 --> 00:13:34,680 Tell us about both funding rounds. 203 00:13:35,960 --> 00:13:37,880 The first round, which was our seed round, 204 00:13:38,000 --> 00:13:40,920 was in December 2022, 205 00:13:41,120 --> 00:13:42,880 it was pre-revenue. 206 00:13:42,960 --> 00:13:48,160 Back then we raised Rs. 6 crores for Rs. 34 crores pre-money. 207 00:13:49,000 --> 00:13:51,440 After that, we raised a recent round 208 00:13:51,520 --> 00:13:53,920 in January 2024. 209 00:13:54,320 --> 00:13:56,400 That was a round of Rs. 6.5 crores. 210 00:13:56,480 --> 00:13:57,600 What was the valuation? 211 00:13:57,720 --> 00:13:59,760 The valuation was Rs. 40 crores back then. 212 00:13:59,880 --> 00:14:03,200 And we are in the middle of another round right now, 213 00:14:03,280 --> 00:14:05,920 which is the pre-series A round. 214 00:14:06,000 --> 00:14:09,320 Where we are raising Rs 10 crores. 215 00:14:16,720 --> 00:14:18,560 Tell us about the equity split. 216 00:14:18,640 --> 00:14:20,400 I have 48% equity. 217 00:14:20,600 --> 00:14:22,280 Sahiba has 12% equity. 218 00:14:22,360 --> 00:14:24,200 The rest is with the investors. 219 00:14:24,280 --> 00:14:27,160 In this round, you will lose another 15%-20%. 220 00:14:28,360 --> 00:14:29,400 Roughly 15%, yes. 221 00:14:29,480 --> 00:14:32,640 - So, both of you will be around 40%. - 50%. 222 00:14:33,600 --> 00:14:36,120 I don't think you will be able to create 223 00:14:36,240 --> 00:14:38,080 a category with around Rs. 6 crores. 224 00:14:38,160 --> 00:14:40,120 You don't have money. 225 00:14:40,240 --> 00:14:41,880 All five of us didn't know 226 00:14:41,960 --> 00:14:43,120 - that this was available in the market. - Yes. 227 00:14:43,160 --> 00:14:45,840 You will need a lot of money to make people aware of this product. 228 00:14:45,920 --> 00:14:47,000 What are you doing about that? 229 00:14:47,040 --> 00:14:48,520 This product... 230 00:14:48,600 --> 00:14:52,160 If a nutritional product starts working on me 231 00:14:52,240 --> 00:14:53,880 then I tell others about it. 232 00:14:53,960 --> 00:14:55,480 - Word of mouth. What else? - Yes. 233 00:14:55,560 --> 00:14:57,320 The other thing 234 00:14:57,440 --> 00:15:00,680 - is to build this approach through nutritionists, right? - Yes. 235 00:15:00,760 --> 00:15:05,000 - We have 350 nutritionists who are our affiliate partners. - Yes. 236 00:15:05,080 --> 00:15:07,080 We curated them over the last 237 00:15:07,160 --> 00:15:11,040 - 18 months. - Understood. That's a good one. 238 00:15:11,520 --> 00:15:13,040 - Amarpreet. - Yes, sir. 239 00:15:16,840 --> 00:15:18,320 Are we in a rush? 240 00:15:20,920 --> 00:15:23,000 Are we in a rush for? 241 00:15:23,160 --> 00:15:24,200 To build the business. 242 00:15:24,280 --> 00:15:27,120 Kunal, I don't think we are in a rush. 243 00:15:27,200 --> 00:15:30,360 I can give you a few examples. 244 00:15:30,800 --> 00:15:33,360 When we innovate products, 245 00:15:33,440 --> 00:15:36,920 I have two amazing ideas 246 00:15:37,000 --> 00:15:39,360 that our team pushes us to launch, 247 00:15:39,440 --> 00:15:41,960 saying it will drive business growth. 248 00:15:42,080 --> 00:15:45,680 But we are not launching them, as we are gathering clinical evidence. 249 00:15:45,760 --> 00:15:48,120 So, I would say we are not in a rush 250 00:15:48,200 --> 00:15:52,960 to launch the products and build short-term business. 251 00:15:53,200 --> 00:15:55,240 But are we in the rush to 252 00:15:55,360 --> 00:15:59,160 let more and more people know about our winning products 253 00:15:59,240 --> 00:16:01,880 and get to a 1 million store distribution 254 00:16:01,960 --> 00:16:05,120 and make a real impact in the country? Absolutely, yes. 255 00:16:11,520 --> 00:16:15,280 How can you make this business work in GT? I don't understand. 256 00:16:15,720 --> 00:16:18,320 At Kirana stores, nowadays, what sells is something 257 00:16:18,440 --> 00:16:20,400 that even a person earning 258 00:16:20,520 --> 00:16:24,920 - Rs. 6 lakhs per annum can afford to buy. - Our... 259 00:16:25,000 --> 00:16:27,280 - How will you... - It is... 260 00:16:28,080 --> 00:16:29,680 You can tell me directly, Sahiba. 261 00:16:29,800 --> 00:16:31,720 - Yes. - You don't have to say it through him. 262 00:16:31,840 --> 00:16:33,400 [laughing] 263 00:16:33,600 --> 00:16:35,760 I was telling Amar that our sales... 264 00:16:35,840 --> 00:16:38,080 Our maximum sales 265 00:16:38,160 --> 00:16:39,320 come from small cities. 266 00:16:39,400 --> 00:16:40,840 There are a lot of people in small cities 267 00:16:40,880 --> 00:16:43,120 - who can afford it. - We... Yes. 268 00:16:43,200 --> 00:16:44,960 The problem is not small cities. 269 00:16:45,040 --> 00:16:47,720 - The problem is Kirana stores... - I understood your question. 270 00:16:47,840 --> 00:16:49,000 They sell those products. 271 00:16:49,120 --> 00:16:50,840 Why did big companies 272 00:16:50,920 --> 00:16:54,400 start selling sachets instead of big bottles for Rs. 5? 273 00:16:54,520 --> 00:16:57,160 Because bite size is a problem. 274 00:16:57,880 --> 00:17:01,440 There is a clarity that will keep evolving. 275 00:17:01,640 --> 00:17:06,080 In the initial stages, we have to be online-centric brand 276 00:17:06,280 --> 00:17:07,840 because we get an opportunity here 277 00:17:07,920 --> 00:17:10,240 to build a good brand. 278 00:17:10,520 --> 00:17:13,440 But eventually, within 5 years, our vision 279 00:17:13,520 --> 00:17:15,280 is to make our business 50% each. 280 00:17:15,360 --> 00:17:18,480 It will be 50% online and 50% offline. 281 00:17:23,240 --> 00:17:26,240 We will try to ensure that our products are packed similarly, 282 00:17:26,440 --> 00:17:29,080 with individual sachets priced at Rs. 10. 283 00:17:29,200 --> 00:17:32,120 The concept is to mix it with food and fix the nutrition. 284 00:17:32,640 --> 00:17:34,560 [music playing] 285 00:17:34,680 --> 00:17:37,280 In simple language, our differentiation 286 00:17:37,360 --> 00:17:39,080 is that we are making it easy 287 00:17:39,200 --> 00:17:42,120 to consume multivitamins in a powdered form. 288 00:17:42,200 --> 00:17:43,680 From a customer standpoint, 289 00:17:43,760 --> 00:17:48,280 once I decide to have supplements and tablets daily, 290 00:17:48,480 --> 00:17:51,360 then be it in tablet form, 291 00:17:51,480 --> 00:17:53,480 this is not a big differentiator for me. 292 00:17:53,560 --> 00:17:55,640 I won't have an issue with having a pill 293 00:17:55,720 --> 00:17:59,000 because I have decided that I want to spend my life having supplements. 294 00:18:00,240 --> 00:18:03,240 Which I can see in different forms. 295 00:18:03,320 --> 00:18:06,160 You mentioned that your month-over-month retention is 9%. 296 00:18:06,400 --> 00:18:07,840 Out of all your customers, 297 00:18:07,920 --> 00:18:10,720 only 9% ordered from you the next month. 298 00:18:10,800 --> 00:18:13,560 This product is meant to be used daily. 299 00:18:13,920 --> 00:18:17,160 For a good business, it should be above 50%. 300 00:18:17,240 --> 00:18:20,000 Successful businesses have around 80%. 301 00:18:20,920 --> 00:18:24,720 For that reason, I want to be out. Thank you. 302 00:18:24,840 --> 00:18:26,040 - Thank you. - Thank you. 303 00:18:27,600 --> 00:18:29,200 You had two ways. 304 00:18:30,280 --> 00:18:33,000 One could have been to make 305 00:18:33,160 --> 00:18:34,920 top-of-the-line products in D2C. 306 00:18:35,000 --> 00:18:37,800 At the start, spend some money to acquire customers. 307 00:18:37,920 --> 00:18:40,440 But after that bring significant repeat. 308 00:18:40,800 --> 00:18:44,360 Your repeat rate hasn't completely matured. 309 00:18:44,440 --> 00:18:45,720 I think it will take some time. 310 00:18:45,800 --> 00:18:48,360 But it is essential if you want to be a D2C business. 311 00:18:48,440 --> 00:18:50,440 The other way is that you have to build GT. 312 00:18:50,520 --> 00:18:52,600 When you choose GT, 313 00:18:52,720 --> 00:18:56,160 the scale of expenses required for distribution 314 00:18:56,240 --> 00:18:59,320 will leave you with almost nothing in terms of net expense. 315 00:18:59,600 --> 00:19:01,960 Because I couldn't find clarity today, 316 00:19:02,040 --> 00:19:03,240 for that reason, I am out. 317 00:19:03,320 --> 00:19:04,600 - Thank you! - Thank you, Ritesh! 318 00:19:05,880 --> 00:19:07,560 - I am out today. - Sure. 319 00:19:07,640 --> 00:19:09,800 But I hope you can focus your energies, 320 00:19:09,880 --> 00:19:14,040 - talent and vast experience. - Yeah. 321 00:19:14,200 --> 00:19:15,880 And make this a successful company. 322 00:19:15,960 --> 00:19:17,760 - Thank you. - Thank you, Kunal. 323 00:19:17,880 --> 00:19:21,000 I have two children who are 6 and 9 years old. 324 00:19:21,080 --> 00:19:23,960 As a mother, it's a task 325 00:19:24,080 --> 00:19:27,440 to feed them 5 almonds every day. 326 00:19:27,520 --> 00:19:29,400 I have failed in that for so many years. 327 00:19:29,480 --> 00:19:33,000 So, my only option is to grate it 328 00:19:33,160 --> 00:19:36,000 and mix it in rice with ghee. They don't make out. 329 00:19:36,120 --> 00:19:37,400 - That helps. - Yeah. 330 00:19:37,480 --> 00:19:40,640 So, I think this is a real problem. 331 00:19:40,720 --> 00:19:42,840 Everyone faces this issue. 332 00:19:43,880 --> 00:19:45,680 But you've made a lot of mistakes. 333 00:19:46,240 --> 00:19:48,680 I think for your marketing, 334 00:19:48,760 --> 00:19:51,680 instead of raising so much money, 335 00:19:51,800 --> 00:19:53,640 give equity 336 00:19:53,720 --> 00:19:56,440 to a celebrity mom and celebrity nutritionist, 337 00:19:56,520 --> 00:19:58,520 take funding and bring them on board. 338 00:19:58,600 --> 00:20:01,160 You should make them do category creation for around 3 years. 339 00:20:01,240 --> 00:20:03,200 We have a lot of capital. 340 00:20:03,280 --> 00:20:06,240 But when we launched a Korean beauty brand, 341 00:20:06,320 --> 00:20:07,920 we partnered with Kareena Kapoor Khan 342 00:20:08,000 --> 00:20:11,680 because India listens to Kareena when it comes to skincare. 343 00:20:11,800 --> 00:20:13,440 We are in touch with many of them. 344 00:20:13,520 --> 00:20:17,640 Right! But before that, you burnt Rs. 11 crores. 345 00:20:20,080 --> 00:20:22,280 I will give you a conditional offer. 346 00:20:23,600 --> 00:20:25,400 And the condition is 347 00:20:25,520 --> 00:20:28,000 that you bring your marketing spend down to 20%. 348 00:20:28,120 --> 00:20:32,320 Because if you keep raising and come down to 5% equity, 349 00:20:32,400 --> 00:20:34,280 then it will not benefit any investor. 350 00:20:35,640 --> 00:20:38,880 And you will have to reduce your fixed cost. 351 00:20:38,960 --> 00:20:41,760 You will have to operate at -10% EBITDA. 352 00:20:43,360 --> 00:20:45,560 If you can do that in the next three months 353 00:20:45,680 --> 00:20:47,680 - by enduring the due diligence term. - Sure. 354 00:20:53,280 --> 00:20:56,960 and Rs. 50 debt for 10% interest for 3 years. 355 00:20:59,760 --> 00:21:02,160 There are a lot of issues in your business. 356 00:21:02,240 --> 00:21:04,160 Frankly, I don't want to be the monk here 357 00:21:04,280 --> 00:21:07,000 who will sell his Ferrari by investing in your business. 358 00:21:07,080 --> 00:21:08,840 So, unfortunately, 359 00:21:09,040 --> 00:21:12,200 I can't invest now. 360 00:21:12,640 --> 00:21:15,120 I would have made you an offer if Vineeta hadn't given you one. 361 00:21:15,360 --> 00:21:16,640 But Vineeta's offer is good. 362 00:21:16,720 --> 00:21:19,120 You negotiate and discuss it with her. 363 00:21:19,240 --> 00:21:21,960 What he meant was that the offer is so good, you shouldn't negotiate. 364 00:21:22,080 --> 00:21:22,880 That's what he meant. 365 00:21:22,960 --> 00:21:25,000 I accidentally made a typo while speaking. 366 00:21:25,240 --> 00:21:26,760 - Can we just take some time? - Think about it. 367 00:21:26,800 --> 00:21:27,960 - Take some time. - Thank you! 368 00:21:31,520 --> 00:21:34,000 Vineeta, you ruined my deal. I hate you. 369 00:21:34,080 --> 00:21:36,920 We got an offer from Vineeta. 370 00:21:37,040 --> 00:21:38,240 And the offer is... 371 00:21:38,360 --> 00:21:39,360 What was your offer? 372 00:21:39,440 --> 00:21:40,920 I would've asked for 10% at least. 373 00:21:41,000 --> 00:21:42,560 10%? 374 00:21:43,320 --> 00:21:45,480 [music playing] 375 00:21:47,840 --> 00:21:49,560 Thank you for the offer, Vineeta. 376 00:21:50,960 --> 00:21:54,840 Can we go with Rs. 50 lakhs for 1% equity? 377 00:21:56,000 --> 00:21:59,480 And balance Rs. 50 lakhs debt at 10%. 378 00:22:06,600 --> 00:22:08,120 So, I gave a fair offer 379 00:22:08,200 --> 00:22:11,200 to respect the last round's investor. 380 00:22:15,600 --> 00:22:17,840 So, this is going below that. 381 00:22:18,520 --> 00:22:21,000 It's just 0.25% of what you are asking. 382 00:22:21,960 --> 00:22:23,320 Yes, just to keep the... 383 00:22:23,440 --> 00:22:25,560 You can show 0.25% 384 00:22:25,760 --> 00:22:29,000 as an advisor if you want. 385 00:22:37,880 --> 00:22:38,960 [laughing] 386 00:22:42,440 --> 00:22:45,480 - Okay, let's do it. - Right! 387 00:22:45,640 --> 00:22:47,360 - Deal accepted! - Deal done! 388 00:22:57,600 --> 00:22:58,920 [camera shutter clicks] 389 00:23:08,840 --> 00:23:11,360 [music playing] 390 00:23:16,880 --> 00:23:18,640 Welcome to ACKO Change Makers, 391 00:23:18,720 --> 00:23:20,280 where we really welcome change. 392 00:23:20,360 --> 00:23:23,640 It has been portrayed beautifully 393 00:23:23,800 --> 00:23:25,920 behind us on this change makers wall. 394 00:23:26,000 --> 00:23:28,080 With a forward-looking vision, we are bringing 395 00:23:28,200 --> 00:23:31,320 a modern advancement in health and fitness. 396 00:23:31,400 --> 00:23:35,200 Our today's change makers are Team Good Monk. Welcome! 397 00:23:41,320 --> 00:23:43,880 But there is a perception that people don't take 398 00:23:44,000 --> 00:23:45,840 supplements or powders 399 00:23:45,960 --> 00:23:49,080 because they are scared about it being artificial 400 00:23:49,160 --> 00:23:51,720 or that this is not something you are supposed to consume. 401 00:23:51,800 --> 00:23:54,440 So, for our viewers and those who are watching, 402 00:23:54,520 --> 00:23:57,640 how can they change their perception to realise that this is necessary? 403 00:23:57,760 --> 00:23:59,240 The reality is that 404 00:23:59,320 --> 00:24:02,880 8 out of 10 Indians lack essential micronutrients. 405 00:24:03,000 --> 00:24:05,280 If we don't address this, 406 00:24:05,360 --> 00:24:07,200 then this gap will increase. 407 00:24:07,280 --> 00:24:10,360 And because of that, there will be low energy, poor immunity, 408 00:24:10,440 --> 00:24:12,080 - and weak gut health. - Right! 409 00:24:12,160 --> 00:24:15,160 So, we encourage everyone 410 00:24:15,280 --> 00:24:17,800 - to consume balanced meals. - Hmm! 411 00:24:17,880 --> 00:24:20,600 But that is not possible in modern times. 412 00:24:20,720 --> 00:24:22,920 - That is why a supplement is a great way... - Right! 413 00:24:23,000 --> 00:24:24,520 Of supporting your diet. 414 00:24:24,600 --> 00:24:27,560 This is an easy way. Mix it with food 415 00:24:27,640 --> 00:24:28,800 and fix your nutrition. 416 00:24:28,880 --> 00:24:31,240 Absolutely! Thanks for bringing this change 417 00:24:31,320 --> 00:24:32,880 - into our day-to-day life. - Yes. 418 00:24:32,960 --> 00:24:35,560 Similarly, ACKO, with its revolutionary offering, 419 00:24:35,640 --> 00:24:37,200 is changing the landscape of insurance. 420 00:24:37,280 --> 00:24:39,800 Now, while taking car insurance, no spam calls. 421 00:24:39,880 --> 00:24:43,880 Avoid the confusion you have with price and policy. 422 00:24:44,000 --> 00:24:45,360 Buy ACKO's car insurance. 423 00:24:45,480 --> 00:24:47,480 It's easy, transparent, hassle-free, 424 00:24:47,560 --> 00:24:49,000 and the right premium. 425 00:24:49,080 --> 00:24:51,160 And to celebrate your time in the tank, 426 00:24:51,240 --> 00:24:52,720 you have a deal. I love it! 427 00:24:52,800 --> 00:24:56,360 There is a memento for you from ACKO and Shark Tank. 428 00:24:56,920 --> 00:24:58,240 This is for you, 429 00:24:59,120 --> 00:25:00,560 Sahiba and Amarjeet. 430 00:25:16,120 --> 00:25:18,160 [theme music playing] 431 00:25:32,240 --> 00:25:35,320 Sharks, the life philosophy these days is YOLO. 432 00:25:35,440 --> 00:25:37,680 Meaning, you only live once. 433 00:25:37,920 --> 00:25:40,080 You just felt like it, picked up my bag, and walked away. 434 00:25:40,080 --> 00:25:41,440 Hold on! 435 00:25:41,560 --> 00:25:44,240 No money in my pocket, no friends by my side. 436 00:25:44,320 --> 00:25:47,760 Just the perks of working from home and the spirit of Bunny. 437 00:25:48,040 --> 00:25:50,200 Old jeans and a guitar. 438 00:25:50,280 --> 00:25:53,240 No roof over your head, and strangers become friends. 439 00:25:53,680 --> 00:25:56,520 A new city with dreams of wanderlust. 440 00:25:56,600 --> 00:25:59,160 That is why there is love for solo travelling. 441 00:25:59,240 --> 00:26:02,240 Unfortunately, this love story hits a bump with a puncture. 442 00:26:02,320 --> 00:26:04,640 Because whenever we visit budget hotels, 443 00:26:04,720 --> 00:26:07,280 we encounter yellow washrooms, 444 00:26:07,480 --> 00:26:08,680 flipped blankets, 445 00:26:08,760 --> 00:26:11,040 and food that's centuries old and stale. 446 00:26:12,320 --> 00:26:14,120 It's their speciality 447 00:26:14,200 --> 00:26:16,840 to make female solo travellers feel uncomfortable 448 00:26:16,960 --> 00:26:19,920 and drive everyone away from their city. 449 00:26:20,360 --> 00:26:22,960 That is why in 2022, we decided 450 00:26:23,040 --> 00:26:25,360 to fulfil everyone's YOLO dreams. 451 00:26:28,920 --> 00:26:31,480 We are from Delhi and we are the founders of ArtBuzz. 452 00:26:31,760 --> 00:26:33,320 ArtBuzz is youth hotels 453 00:26:33,400 --> 00:26:35,920 that give all the facilities to modern travellers, 454 00:26:36,000 --> 00:26:37,680 but at affordable prices. 455 00:26:44,920 --> 00:26:47,280 Dorms! The bunk beds. 456 00:26:47,360 --> 00:26:50,680 Nowadays, in youth hotels, there is an option of shared accommodation 457 00:26:50,800 --> 00:26:52,400 instead of private rooms. 458 00:26:52,520 --> 00:26:55,000 Today's travellers want everything. 459 00:26:55,080 --> 00:26:58,200 But at ArtBuzz, we always pass the vibe check. 460 00:27:07,640 --> 00:27:11,400 all our properties are designed artistically. 461 00:27:11,480 --> 00:27:12,840 Isn't it Instagram-worthy? 462 00:27:22,640 --> 00:27:24,320 10 years from today, 463 00:27:24,400 --> 00:27:27,640 the youth hospitality segment no one knew about 464 00:27:27,720 --> 00:27:30,280 currently has a market share of Rs. 1,500 crores. 465 00:27:34,440 --> 00:27:37,880 and become the leaders of the youth hospitality segment in India. 466 00:27:38,000 --> 00:27:42,000 Our ask is Rs. 1 crore for 3% equity in our company. 467 00:27:46,680 --> 00:27:49,160 Shashank and Anubha, welcome to Shark Tank! 468 00:27:49,240 --> 00:27:50,520 - Thank you! - Thank you, Kunal. 469 00:27:50,600 --> 00:27:52,720 Tell us about your story. 470 00:27:52,800 --> 00:27:54,960 I am a single mother of two children. 471 00:27:55,040 --> 00:27:56,280 We live in Delhi. 472 00:27:56,360 --> 00:27:58,280 I studied Art History. 473 00:27:58,400 --> 00:28:00,240 I've always loved art. 474 00:28:00,320 --> 00:28:03,240 I wanted to become a curator and open a gallery. 475 00:28:03,320 --> 00:28:04,960 But I got married soon. 476 00:28:05,040 --> 00:28:08,280 My in-laws asked me to sit at their office. 477 00:28:08,360 --> 00:28:09,640 They had a huge business. 478 00:28:09,720 --> 00:28:11,840 I worked for 8 years in their business. 479 00:28:11,960 --> 00:28:14,760 By the end of it, I was heading it as their CFO. 480 00:28:19,480 --> 00:28:22,560 I thought I might not be able to work in this company. 481 00:28:22,640 --> 00:28:24,720 So, I looked for what work to do. 482 00:28:24,800 --> 00:28:26,360 I was looking 483 00:28:26,480 --> 00:28:30,000 to start a proper entrepreneurial venture. 484 00:28:30,120 --> 00:28:34,040 That is when I posted on Instagram, 'Looking for a collaborator.' 485 00:28:34,120 --> 00:28:35,880 That is when I received a DM from Shashank. 486 00:28:37,200 --> 00:28:40,760 - We met in 2017. - 2017. 487 00:28:43,800 --> 00:28:47,280 We met Anubha for the first time in Dubai at an event. 488 00:28:47,360 --> 00:28:50,360 That is when we exchanged our Instagram handle and that's it. 489 00:28:50,480 --> 00:28:55,120 After that, we had our conversation in 2021. 490 00:28:55,720 --> 00:28:58,280 Anubha, how many hours do you sleep in a day? 491 00:28:58,360 --> 00:28:59,760 How many hours do I sleep? Why? 492 00:28:59,840 --> 00:29:02,200 Single mom of two, plus a founder. 493 00:29:02,280 --> 00:29:04,480 This is the hardest job in the world. 494 00:29:04,560 --> 00:29:05,680 Yes, it's a hard job. 495 00:29:05,760 --> 00:29:07,760 I don't know, I always like to count my blessings. 496 00:29:07,840 --> 00:29:09,240 Very good family, good parents, 497 00:29:09,320 --> 00:29:11,320 good sisters, good co-founders and everything works. 498 00:29:11,320 --> 00:29:13,560 - Amazing! Super resilient. - Great attitude. 499 00:29:13,840 --> 00:29:16,000 Give us your background, Shashank. 500 00:29:16,080 --> 00:29:17,520 I was born and raised in Delhi. 501 00:29:17,800 --> 00:29:19,440 So, I started working very early. 502 00:29:19,600 --> 00:29:22,360 By the time I entered college, I was involved in many events. 503 00:29:22,440 --> 00:29:25,920 After that, I did a corporate job for 2 years in an events company. 504 00:29:26,040 --> 00:29:28,240 After a point, I felt that this was not my calling. 505 00:29:28,320 --> 00:29:30,680 And I went on a solo trip to Southeast Asia. 506 00:29:30,800 --> 00:29:32,200 My first destination was Thailand. 507 00:29:32,280 --> 00:29:36,040 I experienced a hostel for the first time there. 508 00:29:36,120 --> 00:29:39,640 I was amazed because I made a lot of friends in a couple of days. 509 00:29:39,760 --> 00:29:42,120 I travelled to that country with them. 510 00:29:42,200 --> 00:29:43,560 I was so excited 511 00:29:43,680 --> 00:29:46,120 that I felt like this was it, I wanted to bring this to India. 512 00:29:46,160 --> 00:29:48,520 So, I hired two interns. 513 00:29:48,640 --> 00:29:49,840 I started working on the backend 514 00:29:49,880 --> 00:29:52,760 and launched a brand called House of Amigos. 515 00:29:53,600 --> 00:29:55,120 And then COVID happened. 516 00:29:55,840 --> 00:29:58,680 - And then you sent a message and you met. - I messaged him. 517 00:29:58,840 --> 00:30:01,240 But on the side, I was running a small co-working space 518 00:30:01,320 --> 00:30:03,880 to fulfil my passion, called ArtBuzz. 519 00:30:03,960 --> 00:30:07,080 We only allowed artists and creative professionals. 520 00:30:07,160 --> 00:30:09,280 I started that in 2018. 521 00:30:09,360 --> 00:30:10,600 It was my passion project. 522 00:30:10,680 --> 00:30:12,280 But it was not enough for me. 523 00:30:12,360 --> 00:30:15,560 He said that he runs a hostel and I told him I run a co-working space. 524 00:30:15,680 --> 00:30:17,200 I think this was in 2021. 525 00:30:17,280 --> 00:30:19,400 We started our website during the lockdown 526 00:30:19,480 --> 00:30:20,920 and completed the entire inventory and artistry. 527 00:30:20,960 --> 00:30:22,120 Painting and so on? 528 00:30:22,200 --> 00:30:24,560 Original paintings, watercolours, photographs, flat. 529 00:30:24,680 --> 00:30:27,280 For around 3-4 months, under ArtBuzz 530 00:30:27,360 --> 00:30:29,360 we had the co-working space and website. 531 00:30:29,440 --> 00:30:31,840 But it didn't feel very exciting to us. 532 00:30:31,920 --> 00:30:34,920 I felt that a physical space was missing. 533 00:30:35,000 --> 00:30:36,440 He felt the same way. 534 00:30:36,560 --> 00:30:38,600 Gradually, he started training me 535 00:30:38,720 --> 00:30:41,520 to run a hostel, it is good business. 536 00:30:41,600 --> 00:30:44,760 Finally, in December 2021, I agreed to do it. 537 00:30:44,840 --> 00:30:48,800 In April 2022, we launched our first ArtBuzz. 538 00:30:48,920 --> 00:30:50,560 - Where was this? - Mussoorie. 539 00:30:52,360 --> 00:30:53,720 Do you have a property in Goa? 540 00:30:53,800 --> 00:30:54,640 - We do. - Yes. 541 00:30:54,760 --> 00:30:55,800 I've seen it. 542 00:30:56,880 --> 00:30:59,160 Okay! You launched the first location. 543 00:30:59,240 --> 00:31:01,000 What were the results in the first year? 544 00:31:01,080 --> 00:31:03,040 It was a very small property. It was a trial. 545 00:31:03,120 --> 00:31:05,440 We didn't want to invest. 546 00:31:05,520 --> 00:31:06,920 So, we had a small inventory. 547 00:31:07,000 --> 00:31:10,240 We opened at the right time. Our season was sold out. 548 00:31:10,320 --> 00:31:13,320 After around 4 months, I was convinced that we can do this. 549 00:31:19,440 --> 00:31:22,040 94 rooms, 228 beds. 550 00:31:27,440 --> 00:31:30,560 dorms, co-working spaces and cafes. 551 00:31:31,000 --> 00:31:32,720 We have cafes in all our locations. 552 00:31:42,640 --> 00:31:43,960 How big are these spaces? 553 00:31:44,080 --> 00:31:45,840 Our properties have 14 rooms on average. 554 00:31:46,960 --> 00:31:48,320 Around 18,000 sq. ft. 555 00:31:51,640 --> 00:31:52,960 On average, Rs. 30 lakhs. 556 00:31:53,040 --> 00:31:56,120 That includes advanced rentals and securities. 557 00:31:56,240 --> 00:31:57,120 That's very good. 558 00:31:57,200 --> 00:32:00,600 Please divide it. How much is the advance rental/security and CapEx? 559 00:32:00,720 --> 00:32:02,880 Our recoverables alone are Rs. 18 lakhs. 560 00:32:02,960 --> 00:32:05,360 - That's Rs. 1 lakh per room if I calculate roughly. - Yes. 561 00:32:05,440 --> 00:32:07,040 We just need to do branding, 562 00:32:07,120 --> 00:32:09,520 paint the room yellow and hang up artwork. 563 00:32:09,600 --> 00:32:11,160 Don't tell him more. He's from OYO. 564 00:32:11,240 --> 00:32:13,720 - [laughs] They know. - We're learning from you. 565 00:32:13,840 --> 00:32:15,480 How can we not tell you? You already know. 566 00:32:16,200 --> 00:32:17,880 What's your payback approximately? 567 00:32:18,160 --> 00:32:20,480 - About 18-24 months. - Not bad. 568 00:32:20,600 --> 00:32:22,320 In your pitch, you mentioned 569 00:32:22,400 --> 00:32:24,400 stained bathrooms and bad service. 570 00:32:24,480 --> 00:32:26,080 What are you doing to make sure... 571 00:32:26,160 --> 00:32:28,600 Hygiene is the biggest problem in India. 572 00:32:29,120 --> 00:32:31,080 All eight locations of ArtBuzz are hand-picked 573 00:32:31,360 --> 00:32:32,560 and are very nicely made. 574 00:32:32,640 --> 00:32:33,880 Show us photos and videos. 575 00:32:35,840 --> 00:32:36,840 This is Dehradun. 576 00:32:37,320 --> 00:32:38,320 Looks good. 577 00:32:39,000 --> 00:32:40,960 - This is the Dehradun private room. - This is great. 578 00:32:41,000 --> 00:32:42,400 It's beautiful. 579 00:32:44,000 --> 00:32:45,440 This is co-working, Dehradun. 580 00:32:45,520 --> 00:32:46,760 Those are private cabins. 581 00:32:46,920 --> 00:32:48,880 I used to stay in OYO. I'll switch to ArtBuzz now. 582 00:32:48,880 --> 00:32:49,880 [laughter] 583 00:32:51,000 --> 00:32:52,120 Our pleasure. 584 00:32:53,080 --> 00:32:54,160 It's good. Very cool. 585 00:32:54,240 --> 00:32:55,640 - Not bad. - Very nice. 586 00:32:55,880 --> 00:32:57,400 - This is really good. - This is Kasol. 587 00:32:57,560 --> 00:33:00,640 And every room has one dedicated artwork. 588 00:33:00,720 --> 00:33:02,480 A room is dedicated to an artist. 589 00:33:02,800 --> 00:33:05,520 How many rooms does one dorm have? 590 00:33:05,640 --> 00:33:07,440 - Six on average. - Six is fair. 591 00:33:07,640 --> 00:33:09,520 Could you tell us what your rating is? 592 00:33:09,600 --> 00:33:11,680 If I talk property-wise on Booking.com, 593 00:33:11,760 --> 00:33:14,280 our lowest rating is of the oldest property 594 00:33:27,440 --> 00:33:29,400 We believe in going through the reviews. 595 00:33:29,520 --> 00:33:31,840 We feel they help us get to know the customers. 596 00:33:31,920 --> 00:33:33,360 They help us keep a track. 597 00:33:33,440 --> 00:33:34,720 Of course, we have SOPs 598 00:33:34,800 --> 00:33:37,200 laying out when to broom, when the fans should be cleaned... 599 00:33:37,280 --> 00:33:38,600 There's a checklist for everything. 600 00:33:38,640 --> 00:33:42,360 The housekeeping SOP and a printout with checkboxes 601 00:33:42,440 --> 00:33:43,560 are something everyone does. 602 00:33:43,920 --> 00:33:45,680 I think it is what you are aspiring for 603 00:33:45,800 --> 00:33:47,360 and we are really aspiring for this. 604 00:33:47,440 --> 00:33:50,280 This is very important to us because we will not sell... 605 00:33:50,400 --> 00:33:53,000 We will not get a repeat rate if we don't provide this. 606 00:33:53,160 --> 00:33:55,760 I love your matter of factness with everything. 607 00:33:55,840 --> 00:33:57,480 I really liked one thing you said. 608 00:33:57,560 --> 00:34:00,200 I think customer reviews are the most important. 609 00:34:00,280 --> 00:34:01,800 I personally try 610 00:34:01,880 --> 00:34:05,000 to definitely read them very actively. 611 00:34:05,280 --> 00:34:06,880 Let's talk about the business. 612 00:34:06,960 --> 00:34:09,320 Tell us about your occupancy and ARR. 613 00:34:09,440 --> 00:34:13,120 - Our occupancy is 51% until November... - Not bad. 614 00:34:13,200 --> 00:34:14,360 - Till date. - Not bad. 615 00:34:14,440 --> 00:34:17,320 In urban cities, the occupancy is 70-75%. 616 00:34:17,400 --> 00:34:18,800 Their properties are mostly 617 00:34:19,040 --> 00:34:20,720 in offbeat locations which are seasonal. 618 00:34:20,800 --> 00:34:25,680 The occupancy of hotels there is also typically 40-50% annually. 619 00:34:26,600 --> 00:34:27,920 And Rs. 1,100 ADR. 620 00:34:30,960 --> 00:34:34,880 For Rs. 1,100, do I get a bunk bed or a room? 621 00:34:34,960 --> 00:34:37,360 - Rs. 1,100 is our average. - Okay. 622 00:34:47,400 --> 00:34:48,440 It's in three locations. 623 00:35:02,400 --> 00:35:05,240 What are their respective contributions to the revenue? 624 00:35:05,320 --> 00:35:07,440 Hostels contribute to 75%, 625 00:35:07,520 --> 00:35:09,040 cafes contribute to 13% 626 00:35:09,360 --> 00:35:10,640 and 12% comes from co-working. 627 00:35:10,760 --> 00:35:13,640 Are those complimentary with the stay? 628 00:35:13,720 --> 00:35:14,760 No, separately billed. 629 00:35:15,120 --> 00:35:16,480 Out of co-working's 12%, 630 00:35:16,560 --> 00:35:20,360 how much do 75% of the people who are staying contribute? 631 00:35:20,440 --> 00:35:23,400 - Negligible. - The normal audience contributes 99%. 632 00:35:23,480 --> 00:35:25,400 1% comprises people who're leaving but stay back. 633 00:35:32,320 --> 00:35:35,960 ArtBuzz tried to mix these and build a new business 634 00:35:36,040 --> 00:35:37,280 but there's no mixing as such. 635 00:35:37,360 --> 00:35:38,280 You're right. 636 00:35:38,360 --> 00:35:40,520 Actually, it was more like a unit economics for us. 637 00:35:40,640 --> 00:35:42,080 Suppose we have an empty room. 638 00:35:42,160 --> 00:35:45,480 Either we could build a common room there which would yield no revenue 639 00:35:45,680 --> 00:35:48,320 - or we could put a few desks and bring in some revenue. - Very smart. 640 00:35:48,320 --> 00:35:49,160 - Very smart. - Okay. 641 00:35:49,240 --> 00:35:51,160 But none of that is relevant to the customer. 642 00:35:51,280 --> 00:35:53,840 The customer gets a brand repeatability. 643 00:35:53,920 --> 00:35:55,760 Suppose someone stays at our co-working in Dehradun. 644 00:35:55,760 --> 00:35:56,840 When they travel, 645 00:35:56,920 --> 00:35:59,600 we have a property in Mussoorie and Rishikesh. 646 00:35:59,680 --> 00:36:01,440 Okay, do you have a data point? 647 00:36:01,520 --> 00:36:02,920 We haven't noted that down. 648 00:36:03,000 --> 00:36:05,640 - Then this claim is subjective basically. - No. 649 00:36:05,720 --> 00:36:07,320 - Feedback... - We've gotten this feedback. 650 00:36:08,600 --> 00:36:10,400 Let's get to the numbers. 651 00:36:10,560 --> 00:36:13,000 We had only two properties in FY 20. 652 00:36:48,360 --> 00:36:50,680 Was the first property among those to open 653 00:36:50,760 --> 00:36:52,760 last year profitable? 654 00:36:52,840 --> 00:36:54,480 All our units are profitable. 655 00:36:56,880 --> 00:36:57,960 Rs. 4.5 crores. 656 00:36:58,560 --> 00:37:02,400 As per what you originally said, the average is Rs. 30 lakhs. 657 00:37:02,560 --> 00:37:04,280 This figure makes the average Rs. 50 lakhs. 658 00:37:04,360 --> 00:37:05,880 - I'll give you a break-up. - Okay. 659 00:37:05,960 --> 00:37:07,720 Rs. 30 lakhs multiplied by 6 properties. 660 00:37:07,800 --> 00:37:09,360 - Rs. 1.8 crores. - Okay. 661 00:37:09,440 --> 00:37:12,200 After that, the loss I mentioned, 662 00:37:12,280 --> 00:37:14,720 - that makes it Rs. 1.3 crores... - The total. 663 00:37:14,920 --> 00:37:16,520 - Yes. - Oh, you mean altogether. 664 00:37:16,600 --> 00:37:17,520 - Yes. - Rs. 4.5 crores. Okay. 665 00:37:17,600 --> 00:37:18,720 Yes, altogether. 666 00:37:18,800 --> 00:37:21,600 - So, your CapEx has only been Rs. 2 crores. - No. 667 00:37:21,680 --> 00:37:24,680 We signed a property in Kasol, Himachal, 668 00:37:24,800 --> 00:37:27,600 - and unlucky for us, Himachal was hit by floods. - Oh, no! 669 00:37:27,760 --> 00:37:29,760 That property got stuck 670 00:37:29,920 --> 00:37:32,040 and we got that property this year in June. 671 00:37:32,680 --> 00:37:35,440 Our average cost slightly increases because of that property. 672 00:37:36,280 --> 00:37:38,880 - Have you raised funds? - No. 673 00:37:38,960 --> 00:37:40,120 - You're bootstrapped. - Yes. 674 00:37:40,280 --> 00:37:42,040 Could you tell us the economics of one unit? 675 00:37:42,120 --> 00:37:44,120 The rent is about 34%, 676 00:37:44,200 --> 00:37:46,280 maintenance and utility is 16%, 677 00:37:46,400 --> 00:37:48,360 the unit's salary is 22% 678 00:37:48,440 --> 00:37:52,520 and if I take the consumption of food we sell in our cafes, then 6%. 679 00:37:52,600 --> 00:37:55,360 So, 22% is the unit-level EBITDA. 680 00:37:55,440 --> 00:37:57,440 What's the fixed cost of the business? 681 00:37:57,560 --> 00:38:01,080 Marketing and commission is 12%. 682 00:38:01,200 --> 00:38:02,880 20% is our corporate cost. 683 00:38:03,000 --> 00:38:07,600 - So, the unit-level profitability post-marketing is 10%. - Yes. 684 00:38:10,240 --> 00:38:13,160 If we raise our occupancy to 70%, then that comes down 685 00:38:13,240 --> 00:38:15,400 - because the cost remains the same. - As he said, that isn't possible. 686 00:38:15,440 --> 00:38:17,480 - I didn't say it isn't possible. - The locations you've mentioned, 687 00:38:17,480 --> 00:38:20,000 - it's 50% on average there. - Ours is a very young brand. 688 00:38:20,080 --> 00:38:23,560 We could easily achieve 70-75% occupancy on average. 689 00:38:24,160 --> 00:38:27,040 What's your main moat? It's not work, it's not... 690 00:38:27,120 --> 00:38:28,800 - What is it? .- Community building. 691 00:38:28,880 --> 00:38:31,720 Dorm beds are a very big offering which hotels aren't able to provide. 692 00:38:32,840 --> 00:38:36,120 Does the main revenue come from dorms or rooms? 693 00:38:36,200 --> 00:38:38,480 The major revenues come from rooms. 694 00:38:38,840 --> 00:38:41,680 What's the break up of dorm versus private room? 695 00:38:41,760 --> 00:38:44,600 35% from dorms and 65% from private rooms. 696 00:38:45,240 --> 00:38:47,840 What is the percentage of inventory in both? 697 00:38:47,920 --> 00:38:49,760 We have 94 rooms. 698 00:38:49,960 --> 00:38:52,640 - We have dorms in 26 rooms. - Dorms. 699 00:38:52,720 --> 00:38:54,320 The rest are private rooms. 700 00:38:54,400 --> 00:38:58,000 - In real estate, we have given only 25% to dorms... - Correct. 701 00:38:58,080 --> 00:39:01,000 But they contribute to 35% of your revenue. 702 00:39:01,080 --> 00:39:03,920 This means your dorm is more successful than your private room. 703 00:39:04,080 --> 00:39:06,200 In fact, you shouldn't need private rooms 704 00:39:06,280 --> 00:39:08,720 because those seeking them have the option of hotels. 705 00:39:08,960 --> 00:39:10,320 Let's take Azhar's argument. 706 00:39:10,400 --> 00:39:14,080 - Can you create an ArtBuzz that only has dorms? - No. 707 00:39:15,360 --> 00:39:17,880 Is it because you think you won't get occupancy? 708 00:39:18,000 --> 00:39:19,320 - No, because we want a mix. - No. 709 00:39:19,320 --> 00:39:20,880 We get all types of clients. 710 00:39:21,000 --> 00:39:21,880 - As I said... - That is why... 711 00:39:21,960 --> 00:39:22,960 Correct. Yes, maybe. 712 00:39:23,040 --> 00:39:24,280 A couple is travelling. 713 00:39:24,400 --> 00:39:26,120 They are intending to stay in a hostel. 714 00:39:26,200 --> 00:39:27,840 They are searching for that category now. 715 00:39:27,920 --> 00:39:29,800 Are couples your core consumer? 716 00:39:29,880 --> 00:39:32,320 Why couples? Lakhs of properties cater to them. 717 00:39:32,400 --> 00:39:34,920 I guess we ought to analyse this mix a bit more. 718 00:39:35,600 --> 00:39:37,480 Then who's your core customer? 719 00:39:37,560 --> 00:39:40,280 Friends, solo travellers, workers... 720 00:39:40,360 --> 00:39:43,640 We've been able to track the age group between 18 to 40. 721 00:39:43,720 --> 00:39:45,280 Is it more male or more female? 722 00:39:45,360 --> 00:39:46,960 - More male. - Small town? Large city? 723 00:39:47,080 --> 00:39:48,320 And where are they coming from? 724 00:39:48,440 --> 00:39:49,880 Big cities or small? 725 00:39:50,000 --> 00:39:51,760 - Big as well as small. - Yes. 726 00:39:51,840 --> 00:39:54,240 - You said... - This is not a perfect answer. 727 00:39:54,320 --> 00:39:56,680 Big as well as small cities, male... 728 00:39:56,760 --> 00:39:59,200 We ought to have one core customer. 729 00:39:59,320 --> 00:40:01,320 Actually, our client is a mix. 730 00:40:01,840 --> 00:40:04,800 We think that hostels are only for friends and solo travellers 731 00:40:04,920 --> 00:40:06,440 but families also prefer to stay. 732 00:40:06,560 --> 00:40:09,440 Until you're not able to define your core customer, 733 00:40:09,520 --> 00:40:11,000 you can't do this business. 734 00:40:11,560 --> 00:40:14,200 You said such a nice thing in your pitch. 735 00:40:14,280 --> 00:40:15,800 "Solo women travellers." 736 00:40:15,880 --> 00:40:18,720 That seems to have gotten lost in the rest of your pitch. 737 00:40:19,400 --> 00:40:23,160 And I feel that you're stuck in the same spot 738 00:40:23,280 --> 00:40:25,440 where most founders are, 739 00:40:25,600 --> 00:40:28,640 which is that if you don't stand for something, 740 00:40:28,880 --> 00:40:30,080 you fall for everything. 741 00:40:30,160 --> 00:40:31,560 I really like you, Anubha, 742 00:40:31,640 --> 00:40:34,800 the way you speak and your conviction. 743 00:40:34,880 --> 00:40:37,480 You've invested Rs. 4 crores of your own. 744 00:40:37,560 --> 00:40:38,600 It's incredible. 745 00:40:38,800 --> 00:40:40,560 Focus on one property first 746 00:40:40,640 --> 00:40:43,040 and exactly figure out what you're doing. 747 00:40:43,400 --> 00:40:45,160 I'm out for now but I wish you the best. 748 00:40:45,320 --> 00:40:46,320 - Thank you. - Thank you. 749 00:40:46,880 --> 00:40:49,320 Your concept is great for Gen Zs. 750 00:40:49,760 --> 00:40:53,520 If you are resolute and focus on Gen Zs... 751 00:40:53,800 --> 00:40:55,440 The period is a little long. 752 00:40:55,560 --> 00:40:56,560 They'll come. 753 00:40:56,800 --> 00:40:58,480 When they get to know, they'll surely come. 754 00:40:58,480 --> 00:41:00,400 However, if you allow everyone, 755 00:41:00,480 --> 00:41:04,800 aunties, couples and uncles, 756 00:41:04,880 --> 00:41:06,280 Gen Zs will run away. 757 00:41:06,440 --> 00:41:07,800 They'll say, "We can't stay here." 758 00:41:09,320 --> 00:41:11,400 Your financials are a bit weak right now. 759 00:41:11,680 --> 00:41:13,440 Secondly, this is very capital-intensive. 760 00:41:13,560 --> 00:41:16,000 You'll have to raise big rounds and get investors on board. 761 00:41:16,080 --> 00:41:17,680 Once your business model is clear, 762 00:41:17,760 --> 00:41:19,520 you can send the best out of business. 763 00:41:20,640 --> 00:41:22,160 Unfortunately, I'm out for now. 764 00:41:22,440 --> 00:41:23,480 Thank you, Aman. 765 00:41:23,640 --> 00:41:24,920 Hmm, the best. 766 00:41:28,000 --> 00:41:30,640 People generally see the hotel industry from the outside 767 00:41:30,720 --> 00:41:32,960 and think it's exciting and glamorous 768 00:41:33,200 --> 00:41:35,520 but once you're in, you realise how much hard work it is. 769 00:41:36,800 --> 00:41:38,200 You did well in some aspects. 770 00:41:38,280 --> 00:41:40,320 Stick to new properties rather than old. 771 00:41:40,400 --> 00:41:41,840 The maintenance cost increases. 772 00:41:42,240 --> 00:41:43,760 The design adds value. 773 00:41:43,880 --> 00:41:46,360 You've set the payback period to 16-18 months. 774 00:41:46,440 --> 00:41:48,840 Actually, I do want to support you 775 00:41:49,680 --> 00:41:50,640 but you know 776 00:41:50,720 --> 00:41:52,920 - I'm in a related field in a way. - Really! 777 00:41:53,040 --> 00:41:55,600 We at OYO run an initiative 778 00:41:55,680 --> 00:41:57,960 called OYO Accelerator Program. 779 00:41:58,120 --> 00:42:01,040 Independent hotel chains associate with us. 780 00:42:01,640 --> 00:42:04,040 We provide capital, infrastructure, 781 00:42:04,120 --> 00:42:07,440 strategic guidance and distribution to them to expand their businesses. 782 00:42:07,520 --> 00:42:09,320 I'd like to meet you about it outside 783 00:42:09,400 --> 00:42:10,520 if you're interested. 784 00:42:10,960 --> 00:42:13,560 I wish to give you two pieces of advice specifically. 785 00:42:13,720 --> 00:42:18,440 One wrong property in this business can lead to the business going down. 786 00:42:20,240 --> 00:42:21,440 Tread very carefully. 787 00:42:21,520 --> 00:42:23,160 Ma'am, that's your responsibility. 788 00:42:23,240 --> 00:42:25,200 Second, I agree with Aman. 789 00:42:25,360 --> 00:42:26,560 At the start, you said, 790 00:42:26,640 --> 00:42:28,840 "Each ArtBuzz passes the vibe check." 791 00:42:29,400 --> 00:42:31,440 The vibe is not just about infrastructure, 792 00:42:31,560 --> 00:42:33,920 it is also about the guests staying in our property. 793 00:42:34,000 --> 00:42:35,160 We're in a similar space. 794 00:42:35,240 --> 00:42:36,360 For that reason, I'm out, 795 00:42:36,600 --> 00:42:39,240 but we as a company, would like to partner with you. 796 00:42:40,560 --> 00:42:44,120 The clarity of thoughts and numbers at some places, 797 00:42:44,440 --> 00:42:45,600 who you're approaching 798 00:42:45,680 --> 00:42:47,640 and how exactly you're building the business 799 00:42:47,720 --> 00:42:50,440 didn't fully come to me. 800 00:42:51,040 --> 00:42:52,760 Given the business at the moment, 801 00:42:52,960 --> 00:42:54,800 I am still lacking conviction. 802 00:42:54,880 --> 00:42:56,640 I'm unable to take a bet as an investor. 803 00:42:56,720 --> 00:42:57,720 And I'm out. 804 00:43:00,880 --> 00:43:02,000 Anubha, I really like... 805 00:43:02,480 --> 00:43:03,880 You have poise, 806 00:43:16,680 --> 00:43:18,720 which is safe and which is clean. 807 00:43:18,800 --> 00:43:19,880 Is this true? 808 00:43:20,080 --> 00:43:21,120 That is OYO. 809 00:43:22,040 --> 00:43:23,800 Is it price-sensitive or a vibe? 810 00:43:23,960 --> 00:43:26,080 A vibe, but at good pricing. 811 00:43:26,200 --> 00:43:27,320 What is more important? 812 00:43:27,720 --> 00:43:28,720 Vibe. 813 00:43:29,200 --> 00:43:31,400 - Yes, Kunal. - The people coming to you 814 00:43:31,480 --> 00:43:33,400 - are price-sensitive. - Yes, they are. 815 00:43:33,480 --> 00:43:34,480 Of course, it's India. 816 00:43:34,600 --> 00:43:35,800 One... Let me finish. 817 00:43:35,880 --> 00:43:38,120 So, they are price-sensitive customers. 818 00:43:38,200 --> 00:43:39,400 That's not a problem. 819 00:43:39,520 --> 00:43:41,160 I have an issue with the sector. 820 00:43:41,240 --> 00:43:43,840 This sector sees 3-4 good years in a decade 821 00:43:43,920 --> 00:43:46,320 and then some calamity occurs 822 00:43:46,520 --> 00:43:50,560 and the cycle of stress starts, debt repayments... 823 00:43:51,120 --> 00:43:51,960 You always feel 824 00:43:52,040 --> 00:43:55,120 like you're one mistake away from mortality. 825 00:43:55,200 --> 00:43:57,960 For that reason, I'm out but I wish you all the best. 826 00:43:58,040 --> 00:43:58,840 - Thank you, guys. - Thank you. 827 00:43:58,920 --> 00:44:00,040 - All the best, do well. - Thank you. 828 00:44:00,040 --> 00:44:02,240 - Many best wishes. - I'll come and stay there for sure. 829 00:44:02,520 --> 00:44:03,520 Thank you. 830 00:44:04,960 --> 00:44:06,720 [solemn music playing] 831 00:44:07,280 --> 00:44:10,400 I believe they've kept lower dorms than they can. 832 00:44:10,480 --> 00:44:13,280 I feel they can have 50-60% dorms and they'll be occupied. 833 00:44:13,360 --> 00:44:14,280 It's a chicken and egg game. 834 00:44:14,360 --> 00:44:17,960 You have to wait, just as you asked, as the ramping up takes time. 835 00:44:18,040 --> 00:44:21,040 You need loss absorption capacity for the first three months. 836 00:44:21,120 --> 00:44:23,240 Yes. And when that doesn't happen, they'll start shutting it down. 837 00:44:23,240 --> 00:44:25,320 If they wait for 3-4 months, 838 00:44:25,840 --> 00:44:28,200 I think they'll get customers with a higher ADR 839 00:44:28,400 --> 00:44:31,400 and those customers breed other customers. 840 00:44:31,520 --> 00:44:34,680 If you see, Gen Z is investing in travel and experiences. 841 00:44:34,760 --> 00:44:36,600 - Travel, see new places and so on. - Yes. 842 00:44:36,680 --> 00:44:39,040 - Good, right? - You're giving me OYO shares! Okay, thanks. 843 00:44:39,120 --> 00:44:40,680 [laughter] 844 00:44:40,760 --> 00:44:43,440 'We are mainly focused on Gen Z and millennials.' 845 00:44:43,520 --> 00:44:45,840 We get other types of customers too. 846 00:44:45,960 --> 00:44:48,040 They misinterpreted that as 847 00:44:48,120 --> 00:44:49,880 our market segment not being defined. 848 00:44:50,080 --> 00:44:52,760 90% of the pitch went very well. 849 00:44:52,840 --> 00:44:54,400 We thought that we are getting the offer 850 00:44:54,440 --> 00:44:57,200 because it was always positive feedback. 851 00:44:57,360 --> 00:44:58,880 And never say never. 852 00:44:58,960 --> 00:45:00,080 Not today, but maybe in future, 853 00:45:00,080 --> 00:45:02,520 the Sharks might approach us for funding. 854 00:45:02,720 --> 00:45:03,880 Hello, Team ArtBuzz. 855 00:45:03,960 --> 00:45:07,400 - Welcome to the PokerBaazi zone where you hold the cards. - Hi. 856 00:45:07,520 --> 00:45:10,160 There are a lot of similarities between business and poker. 857 00:45:40,400 --> 00:45:41,920 - For Straight. - Okay. 858 00:45:42,080 --> 00:45:44,960 - Customer service. - Customer service, okay. 859 00:45:45,040 --> 00:45:47,680 - The third is marketing. - Marketing. 860 00:45:47,840 --> 00:45:50,280 - Human resources. - Human resources. 861 00:45:50,640 --> 00:45:52,080 HR, interesting. 862 00:45:52,240 --> 00:45:54,200 - And operations. - Operations. 863 00:45:54,960 --> 00:45:56,000 This is so interesting 864 00:45:56,080 --> 00:45:57,720 because operations and logistics 865 00:45:57,800 --> 00:46:00,240 must be a core part of your business 866 00:46:00,320 --> 00:46:02,440 because you're handling so many properties. 867 00:46:02,520 --> 00:46:04,800 Why did you rank it last in place of High card? 868 00:46:04,880 --> 00:46:07,560 It's because all these things... 869 00:46:07,640 --> 00:46:09,080 Sales is the first thing. 870 00:46:09,160 --> 00:46:11,480 If we don't have any sales, what good is operations? 871 00:46:11,560 --> 00:46:14,840 Then customer service is very important to us as a brand 872 00:46:14,920 --> 00:46:16,840 - as we mentioned in our pitch. - Hmm. 873 00:46:16,920 --> 00:46:20,240 And then marketing generates awareness for us. 874 00:46:20,360 --> 00:46:22,280 Human resources is as important 875 00:46:22,360 --> 00:46:26,480 - because we're a very heavily-manpowered company. - Okay. 876 00:46:51,360 --> 00:46:54,960 and the total prize pool is worth Rs. 100 crores. 877 00:46:55,040 --> 00:46:55,880 - Very nice. - Wow. 878 00:46:55,960 --> 00:46:57,280 A lot up for grabs. 879 00:46:57,440 --> 00:46:59,560 You too could download the PokerBaazi app, 880 00:46:59,640 --> 00:47:01,760 use your strategies to place a winning hand. 881 00:47:01,840 --> 00:47:03,080 Download the app now. 882 00:47:03,200 --> 00:47:06,120 'Shark Tank India co-presented by ACKO Insurance, ' 883 00:47:06,200 --> 00:47:08,280 'PokerBaazi and Swiggy Instamart.' 884 00:47:08,360 --> 00:47:11,040 'Co-powered by Adani and Jaquar Bath & Light.' 885 00:47:11,120 --> 00:47:15,040 'Partners Rayzon Solar, ICICI Direct and Lenskart.' 886 00:47:15,200 --> 00:47:16,520 [theme music playing] 887 00:47:52,000 --> 00:47:53,680 [theme music concludes] 888 00:47:54,280 --> 00:47:58,440 Sharks, the heart of Indian cooking lies in its spices. 889 00:47:58,680 --> 00:48:02,080 Be it the aroma of simple homemade 'aloo mutter' 890 00:48:02,320 --> 00:48:05,320 or that of 'shahi paneer' in a restaurant. 891 00:48:05,840 --> 00:48:07,680 We prepare food in a kitchen, 892 00:48:07,840 --> 00:48:11,440 and its aroma can make a whole neighbourhood fragrant. 893 00:48:11,960 --> 00:48:17,160 From tea to chickpeas, India has a special spice mix for everything. 894 00:48:17,280 --> 00:48:20,680 In fact, 75 out of the world's 109 spices 895 00:48:20,760 --> 00:48:23,440 are grown in our country. 896 00:48:35,840 --> 00:48:39,200 We're from Mumbai and we present to you Tulua. 897 00:48:40,600 --> 00:48:45,080 We make unadulterated spices and ready-to-cook pastes. 898 00:48:52,880 --> 00:48:55,680 We don't just deliver these spices to your homes, 899 00:49:30,720 --> 00:49:33,160 with a 20x growth. 900 00:49:34,400 --> 00:49:37,920 We envision making Tulua a brand 901 00:49:38,080 --> 00:49:41,080 that is not just limited to our kitchens 902 00:49:41,160 --> 00:49:44,800 but goes on to become the number one choice 903 00:49:44,880 --> 00:49:47,800 of over 75 lakh restaurant chefs across India. 904 00:49:47,960 --> 00:49:49,960 And for that, our ask is 905 00:49:50,040 --> 00:49:53,520 Rs. 50 lakhs for 2% equity. 906 00:49:54,800 --> 00:49:56,080 Come on, Sharks. 907 00:50:02,640 --> 00:50:04,080 - Thank you. - Thank you. 908 00:50:04,160 --> 00:50:06,840 Before I ask you something else, let's talk about "Tulua". 909 00:50:06,920 --> 00:50:08,160 What does Tulua mean? 910 00:50:08,280 --> 00:50:10,680 - Tulua means "to rise" in Sanskrit. - Oh! 911 00:50:10,760 --> 00:50:14,360 So, I wanted a name that is very easy for people to pronounce 912 00:50:14,480 --> 00:50:16,560 be it in India or abroad. 913 00:50:16,640 --> 00:50:20,120 And a name that does not remind you of anything else 914 00:50:26,360 --> 00:50:27,360 - Yes. - Yes. 915 00:50:30,480 --> 00:50:31,720 Thank you. Thank you so much. 916 00:50:31,800 --> 00:50:33,760 - Nice shoes by the way. - Thank you. 917 00:50:34,480 --> 00:50:35,320 Thank you. 918 00:50:35,400 --> 00:50:36,840 - How are you, Richy? - Good. 919 00:50:41,880 --> 00:50:45,880 This is our Masala Dabba that we sell on our website. 920 00:50:45,960 --> 00:50:48,920 This has eight spices all from different regions. 921 00:50:55,560 --> 00:50:57,440 - Depicted it sweetly. - We thought that 922 00:50:57,520 --> 00:50:59,320 spices grow all over India. 923 00:50:59,440 --> 00:51:01,800 So, as a customer, they should also know 924 00:51:01,880 --> 00:51:04,280 where each of the spices grows. 925 00:51:05,120 --> 00:51:07,360 No, the packing is lovely. 926 00:51:07,440 --> 00:51:08,840 Many times, sellers don't pack this 927 00:51:08,920 --> 00:51:12,080 - and if they do, they seal everything. - Yes. 928 00:51:12,160 --> 00:51:15,160 You left a specific section visible. 929 00:51:15,280 --> 00:51:17,080 - That's a smart choice. - Thank you. 930 00:51:17,240 --> 00:51:20,160 - We'll go home and cook with your spices. - Sure. 931 00:51:20,240 --> 00:51:22,240 Why? Don't you use Zoff Spices? 932 00:51:22,360 --> 00:51:24,160 I'll use Zoff for lunch and at night... 933 00:51:24,240 --> 00:51:25,880 - And Tulua for dinner. - [all laugh] 934 00:51:27,240 --> 00:51:28,640 Tell us about yourselves. 935 00:51:28,720 --> 00:51:31,280 I was born and brought up in Mumbai. 936 00:51:31,360 --> 00:51:35,680 I've been working in the sales field for 35 years. 937 00:51:36,320 --> 00:51:40,880 Earlier, I'd sell pressure cookers, stoves and others. 938 00:51:41,000 --> 00:51:44,200 Then I moved to corporate selling in a packaging company. 939 00:51:44,320 --> 00:51:45,600 For 15 years, 940 00:51:53,840 --> 00:51:54,840 In which year? 941 00:51:55,000 --> 00:51:57,040 The end of 2021. 942 00:52:03,120 --> 00:52:04,760 I didn't have to 943 00:52:04,880 --> 00:52:06,000 as I pre-planned it 944 00:52:06,080 --> 00:52:08,320 - and poached him at the right time. - Poached. 945 00:52:08,400 --> 00:52:09,560 Was it your idea? 946 00:52:09,640 --> 00:52:10,960 Yes, it was my idea. 947 00:52:11,040 --> 00:52:14,000 How does it feel to be your father's boss? 948 00:52:14,120 --> 00:52:15,480 Does he listen to you? 949 00:52:15,560 --> 00:52:17,800 Or in a tough situation, he eventually says, 950 00:52:17,880 --> 00:52:19,240 "I'm your father!" 951 00:52:19,920 --> 00:52:21,720 Actually, that never happens. 952 00:52:21,800 --> 00:52:23,440 I feel I'm really fortunate 953 00:52:23,520 --> 00:52:26,360 that my parents are extremely supportive. 954 00:52:26,640 --> 00:52:29,200 I present my views before Richy. 955 00:52:29,280 --> 00:52:31,160 "Look, this is what we could do." 956 00:52:31,240 --> 00:52:33,360 - The final decision is hers. - Excellent. 957 00:52:33,520 --> 00:52:34,920 - Tell us your story. - Sure. 958 00:52:35,000 --> 00:52:37,480 I launched Tulua in 2020. 959 00:52:38,440 --> 00:52:42,080 I was one of those students who interned throughout college. 960 00:52:42,200 --> 00:52:44,920 Right after tenth grade, I started working. 961 00:52:45,120 --> 00:52:47,920 After college was over, I founded my first start-up. 962 00:52:48,000 --> 00:52:49,840 It was a digital marketing agency. 963 00:52:49,920 --> 00:52:52,440 - I started that in 2015. - Okay. 964 00:52:52,520 --> 00:52:56,920 Through the agency, I worked with many upcoming Indian start-ups 965 00:52:57,040 --> 00:52:59,840 mainly in the F&B space. 966 00:53:03,000 --> 00:53:05,280 Between 2015 to 2020, 967 00:53:05,360 --> 00:53:08,360 I was researching deeply ranging consumer behaviour. 968 00:53:08,440 --> 00:53:12,000 That's when I realised that many women like me out there 969 00:53:12,080 --> 00:53:13,640 didn't know how to cook. 970 00:53:13,720 --> 00:53:16,440 That's when the idea of Tulua struck me. 971 00:53:16,520 --> 00:53:18,920 We launched with ready-to-cook pastes. 972 00:53:23,800 --> 00:53:28,560 we noticed a sharp decline in our ready-to-cook orders. 973 00:53:28,640 --> 00:53:30,400 Until then, we were bootstrapped 974 00:53:30,520 --> 00:53:33,480 and I had launched Tulua with my personal savings. 975 00:53:33,560 --> 00:53:35,760 So, this product was a hit then 976 00:53:35,880 --> 00:53:37,400 because everyone was home during the pandemic 977 00:53:37,440 --> 00:53:38,640 and was fond of cooking. 978 00:53:38,720 --> 00:53:40,600 So, you used it to your advantage. 979 00:53:40,680 --> 00:53:42,320 More importantly, there were no cooks. 980 00:53:42,400 --> 00:53:45,080 Yes. You made a product then which did very well. 981 00:53:45,160 --> 00:53:47,360 Now, it is discontinued and you have a new business. - Yes. 982 00:53:47,400 --> 00:53:50,320 We still have pastes but their quantity is very little. 983 00:53:50,400 --> 00:53:51,640 That's not our main focus. 984 00:53:51,720 --> 00:53:55,960 Our main focus now is spices in which we have two verticals. 985 00:53:56,280 --> 00:53:59,320 B2B that sells in HoReCa and D2C. 986 00:53:59,880 --> 00:54:01,800 How's the work divided between you two? 987 00:54:01,960 --> 00:54:04,800 I am basically more focused on sales 988 00:54:05,000 --> 00:54:07,120 plus I oversee a bit of operations. 989 00:54:07,240 --> 00:54:09,800 And I mainly oversee brand strategy, brand design, 990 00:54:09,880 --> 00:54:12,120 D2C side of the business, 991 00:54:12,200 --> 00:54:14,400 product launches and growth. 992 00:54:14,680 --> 00:54:16,960 - This says 'Lakadong Turmeric'. - Yes. 993 00:54:17,040 --> 00:54:18,440 - Isn't Lakadong an area? - Yes. 994 00:54:18,520 --> 00:54:19,560 - The Northeast. - Yes. 995 00:54:19,680 --> 00:54:21,840 - Is it sourced from there? - Yes, it is. 996 00:54:22,080 --> 00:54:24,880 With what differentiator did you launch your spices? 997 00:54:24,960 --> 00:54:28,600 In fact, your Lakadong Turmeric also is easily available in the market. 998 00:54:28,680 --> 00:54:31,440 All the spices grow all over India. 999 00:54:31,640 --> 00:54:33,640 So, if we want the best quality... 1000 00:54:33,720 --> 00:54:35,160 Let's say turmeric. 1001 00:54:35,240 --> 00:54:36,720 So, where does the best turmeric grow 1002 00:54:36,800 --> 00:54:38,200 and what makes it the best? 1003 00:54:38,320 --> 00:54:40,440 It's the amount of curcumin in it. 1004 00:54:44,760 --> 00:54:46,960 - It says here, "9.3% Curcumin." - Correct. 1005 00:54:54,520 --> 00:54:57,720 Why don't other brands sell Lakadong turmeric? 1006 00:54:57,840 --> 00:55:00,240 It's difficult to source as well as costly. 1007 00:55:00,320 --> 00:55:03,000 Most of the brands who are selling the Lakadong turmeric 1008 00:55:15,360 --> 00:55:17,600 So, your overlap of SKUs, 1009 00:55:17,720 --> 00:55:20,520 let's take say Everest, is what percent? 1010 00:55:20,800 --> 00:55:23,400 We have 8 SKUs of spices 1011 00:55:23,480 --> 00:55:25,360 out of which Everest has 4. 1012 00:55:25,440 --> 00:55:27,040 Is it of the same origin? 1013 00:55:27,120 --> 00:55:29,520 Everest and other brands 1014 00:55:29,600 --> 00:55:32,960 don't claim which region it was sourced from. 1015 00:55:33,040 --> 00:55:34,440 Typically, the same pack 1016 00:55:34,520 --> 00:55:37,320 - of Everest or other brands is in what price range? - Sure. 1017 00:55:37,400 --> 00:55:39,880 Let's take the example of Kashmiri Chilli Powder. 1018 00:55:51,520 --> 00:55:56,760 Richy is probably one of the most impressive founders I met recently. 1019 00:55:57,320 --> 00:55:59,440 - We came very close to investing. - Why didn't you? 1020 00:55:59,520 --> 00:56:01,360 - We didn't go ahead. - Why not? 1021 00:56:01,480 --> 00:56:03,000 For a variety of reasons. 1022 00:56:03,080 --> 00:56:05,120 When we had the discussion, 1023 00:56:05,200 --> 00:56:08,200 you weren't absolutely sure 1024 00:56:08,320 --> 00:56:11,880 about doing B2B or B2C as well. 1025 00:56:12,320 --> 00:56:14,800 Our main focus is HoReCa, B2B. 1026 00:56:14,880 --> 00:56:16,760 When we talk of HoReCa, 1027 00:56:16,840 --> 00:56:19,280 chefs mainly want whole spices 1028 00:56:19,360 --> 00:56:22,200 the reason being that they make their own powders. 1029 00:56:22,280 --> 00:56:24,760 In that, most of the spices that are sold 1030 00:56:24,840 --> 00:56:27,000 are without any branding. 1031 00:56:27,080 --> 00:56:28,600 There is no single brand 1032 00:56:28,720 --> 00:56:31,480 that supplies whole spices and single-powdered spices 1033 00:56:31,560 --> 00:56:34,400 of good quality consistently. 1034 00:56:34,480 --> 00:56:36,280 We saw a big gap. 1035 00:56:36,360 --> 00:56:39,640 Are you claiming you want to be one of the first brands in B2B? 1036 00:56:40,400 --> 00:56:42,160 I won't say there isn't any brand 1037 00:56:42,240 --> 00:56:45,240 because there is a brand that sells blended spices. 1038 00:56:45,360 --> 00:56:48,240 By blended, I mean chaat masala, garam masala... 1039 00:56:48,320 --> 00:56:51,160 But whole spices, which is the biggest category, 1040 00:56:51,240 --> 00:56:53,920 in that there are no branded players. 1041 00:56:54,080 --> 00:56:56,440 So, you've primarily decided 1042 00:56:56,520 --> 00:56:57,800 - to focus on HoReCa - HoReCa. 1043 00:56:57,880 --> 00:57:00,440 You'll sell a little online for branding. 1044 00:57:00,560 --> 00:57:02,000 - Yes. - What's the distribution 1045 00:57:02,240 --> 00:57:03,520 between HoReCa and retail? 1046 00:57:03,600 --> 00:57:06,920 - HoReCa contributes to 92%... - Whoa! 1047 00:57:11,840 --> 00:57:13,520 I'm guessing in the powder, 1048 00:57:13,600 --> 00:57:15,520 you're not able to clearly state your differentiation, 1049 00:57:15,560 --> 00:57:17,320 especially something like Kashmiri Chilli. 1050 00:57:17,400 --> 00:57:19,320 Everyone's Kashmiri Chilli in a box is the same. 1051 00:57:19,440 --> 00:57:24,560 Why don't you make similar whole spices just for chefs? 1052 00:57:25,000 --> 00:57:26,880 We're already doing that. 1053 00:57:26,960 --> 00:57:29,120 That focus is mainly on HoReCa. 1054 00:57:29,200 --> 00:57:32,440 I believe that if we're not available on D2C 1055 00:57:32,520 --> 00:57:33,920 or if we don't build a brand, 1056 00:57:34,000 --> 00:57:36,680 it will also impact our overall growth. 1057 00:57:37,640 --> 00:57:40,920 Our entire focus is already on HoReCa. 1058 00:57:41,320 --> 00:57:43,280 We're doing this parallelly 1059 00:57:43,400 --> 00:57:47,800 because in future, we'll do D2C and retail and grow there as well. 1060 00:57:47,920 --> 00:57:49,480 The market size is very big. 1061 00:57:50,200 --> 00:57:53,280 What were your revenues for the last 3 years? 1062 00:57:53,360 --> 00:57:56,320 In 20-21, our revenue was Rs. 8 lakhs. 1063 00:57:56,480 --> 00:58:00,920 In 21-22, our revenue was Rs. 42 lakhs. 1064 00:58:01,000 --> 00:58:04,280 This year, we exported to the US. 1065 00:58:04,360 --> 00:58:05,920 We only had pastes then. 1066 00:58:06,000 --> 00:58:09,120 The next year, our revenue was Rs. 14 lakhs. 1067 00:58:09,200 --> 00:58:11,640 This time also, it was just our paste category. 1068 00:58:11,720 --> 00:58:15,640 Last financial year, our revenue was Rs. 2.9 crores. 1069 00:58:15,960 --> 00:58:19,080 We launched the spices this financial year. 1070 00:58:19,160 --> 00:58:21,000 In the current financial year, 1071 00:58:21,120 --> 00:58:26,120 we've clocked a revenue of Rs. 2.9 crores till date. 1072 00:58:26,320 --> 00:58:29,760 Our monthly MRR is Rs. 37.5 lakhs. 1073 00:58:41,320 --> 00:58:43,160 What was the bottom line last year? 1074 00:58:43,280 --> 00:58:46,560 Last year, we had a -13% EBITDA. 1075 00:58:53,520 --> 00:58:54,880 Who funded the negative EBITDA? 1076 00:58:54,960 --> 00:58:56,640 We've done two rounds so far. 1077 00:58:56,720 --> 00:58:57,960 The first was an angel round 1078 00:58:58,040 --> 00:59:00,840 which we did at the start of 2023. 1079 00:59:01,000 --> 00:59:04,320 We raised Rs. 2 crores at a valuation of Rs. 10 crores. 1080 00:59:04,400 --> 00:59:07,640 This year, we've raised Rs. 2.7 crores 1081 00:59:07,720 --> 00:59:10,920 at a post-money valuation of Rs. 19.7 crores. 1082 00:59:11,440 --> 00:59:15,760 How did the change from -13% to 3% EBITDA occur? 1083 00:59:16,480 --> 00:59:18,800 Last year, we launched spices 1084 00:59:18,880 --> 00:59:21,480 and our strategy was to break the price 1085 00:59:21,560 --> 00:59:24,120 and enter as many kitchens as possible. 1086 00:59:24,200 --> 00:59:27,160 So, we deliberately compromised on the gross margin. 1087 00:59:27,440 --> 00:59:29,960 This year, we increased our gross margin. 1088 00:59:30,040 --> 00:59:31,720 In which region are you currently distributing? 1089 00:59:31,760 --> 00:59:35,080 In the last year, we worked really hard on Mumbai. 1090 00:59:35,160 --> 00:59:36,680 Now, we're in the process 1091 00:59:36,760 --> 00:59:39,880 of starting in Pune in Maharashtra and in Surat in Gujarat. 1092 00:59:40,000 --> 00:59:42,440 How many restaurant partners are you selling to? 1093 00:59:42,520 --> 00:59:43,640 Over a hundred. 1094 00:59:43,800 --> 00:59:45,120 How many of those restaurants 1095 00:59:45,200 --> 00:59:47,560 did you know in your 15 years of experience 1096 00:59:47,680 --> 00:59:51,120 and how many of them have you sold to for the first time? 1097 00:59:51,200 --> 00:59:56,600 Sir, out of these 100, 25-30% are from my previous jobs. 1098 00:59:56,800 --> 00:59:58,240 The rest are all new. 1099 01:00:06,280 --> 01:00:08,960 'Founder-market fit is when' 1100 01:00:09,280 --> 01:00:13,960 'a founder's personal background, skills and experience' 1101 01:00:14,200 --> 01:00:16,880 'perfect align with the market' 1102 01:00:16,960 --> 01:00:19,880 'in which they wish to start the business.' 1103 01:00:20,320 --> 01:00:21,440 'It is not necessary' 1104 01:00:21,720 --> 01:00:25,040 'that they must have a background and experience to be successful,' 1105 01:00:25,200 --> 01:00:26,880 'although it may help.' 1106 01:00:27,480 --> 01:00:32,600 I think you have the mind, passion and conviction of a marketer 1107 01:00:32,720 --> 01:00:35,400 and you're a really strong founder. 1108 01:00:35,640 --> 01:00:38,680 And because you're together, 1109 01:00:38,920 --> 01:00:43,280 the business is getting pulled in opposite directions. 1110 01:00:43,680 --> 01:00:45,360 On such a small scale, 1111 01:00:45,520 --> 01:00:47,480 you're exporting and selling in India, 1112 01:00:47,680 --> 01:00:49,640 doing whole spices and powdered ones too, 1113 01:00:49,720 --> 01:00:52,360 D2C as well as HoReCa. 1114 01:00:52,560 --> 01:00:56,160 And you're selling the paste you said you had discontinued. 1115 01:00:57,040 --> 01:00:59,640 I feel that focus has a superpower 1116 01:00:59,760 --> 01:01:01,960 which is very important in the early stages. 1117 01:01:02,040 --> 01:01:05,600 The team is not getting that power today 1118 01:01:05,720 --> 01:01:09,200 because you can't decide 1119 01:01:09,280 --> 01:01:10,920 what to say no to. 1120 01:01:11,160 --> 01:01:14,440 And I feel that you won't be able to make this decision 1121 01:01:14,800 --> 01:01:16,120 even if you got Rs. 50 lakhs 1122 01:01:16,200 --> 01:01:17,840 and you'll continue to do too many things. 1123 01:01:17,920 --> 01:01:19,080 For that reason, I'm out. 1124 01:01:19,360 --> 01:01:20,440 Thank you, Vineeta. 1125 01:01:20,680 --> 01:01:22,840 If you want leadership in HoReCa, 1126 01:01:23,360 --> 01:01:25,840 in your five-year vision, you should say 1127 01:01:29,440 --> 01:01:31,680 "but lead in multiple products in the long term." 1128 01:01:31,760 --> 01:01:34,680 If not, then maybe D2C is an opportunity, 1129 01:01:34,760 --> 01:01:36,160 and you're well-versed with it too! 1130 01:01:36,200 --> 01:01:38,240 I mean, the quality of design, 1131 01:01:38,320 --> 01:01:40,360 thinking and others you've done is quite good. 1132 01:01:40,440 --> 01:01:42,440 I do feel that you lack clarity today. 1133 01:01:42,680 --> 01:01:44,760 For that reason, unfortunately, I'm out. 1134 01:01:44,880 --> 01:01:45,760 - Thank you. - I wish you the best. 1135 01:01:45,840 --> 01:01:47,600 - Thank you so much. - Thank you so much, Ritesh. 1136 01:01:47,640 --> 01:01:49,920 I feel that your strategy, 1137 01:01:50,000 --> 01:01:52,440 that one's a consumer-facing brand 1138 01:01:52,520 --> 01:01:54,680 but is primarily a B2B business, 1139 01:01:55,440 --> 01:01:56,880 is actually a fine strategy. 1140 01:01:57,680 --> 01:02:00,800 Many brands in India were built this way. 1141 01:02:01,440 --> 01:02:03,640 For example, Ferns N Petals. 1142 01:02:03,920 --> 01:02:06,800 Because such a brand gets brand recognition, 1143 01:02:07,080 --> 01:02:10,400 it's your preference because it's more reliable. 1144 01:02:13,920 --> 01:02:15,640 primarily in Mumbai. 1145 01:02:16,120 --> 01:02:19,600 Hitesh, you have experience in this region. 1146 01:02:19,960 --> 01:02:21,000 So, the question is, 1147 01:02:21,080 --> 01:02:24,160 when you expand to another five states, 1148 01:02:24,280 --> 01:02:26,200 are you able to replicate this? 1149 01:02:26,960 --> 01:02:28,960 Because there's no clarity on that, 1150 01:02:29,880 --> 01:02:31,320 for that reason, today, I'm out. 1151 01:02:31,520 --> 01:02:33,640 - Thank you, guys. Good to see you again. - Thank you. 1152 01:02:36,840 --> 01:02:39,920 So, I see you as yet another vendor. 1153 01:02:40,120 --> 01:02:43,920 You might build a decent business with your experience 1154 01:02:44,200 --> 01:02:49,800 but I don't see this becoming a brand or a significant leader. 1155 01:02:49,880 --> 01:02:51,240 For that reason, I'm out. 1156 01:02:51,520 --> 01:02:52,560 Thank you, Azhar. 1157 01:02:53,400 --> 01:02:54,480 [solemn music playing] 1158 01:02:55,880 --> 01:02:59,240 When you arrived, I liked your business. 1159 01:02:59,840 --> 01:03:01,080 It reminded me of Zoff. 1160 01:03:02,000 --> 01:03:03,240 I was there. 1161 01:03:03,440 --> 01:03:05,160 It started here. Spices. 1162 01:03:05,240 --> 01:03:06,120 The team is good. 1163 01:03:06,200 --> 01:03:08,680 You said you were focusing on HoReCa and that's also fine. 1164 01:03:11,800 --> 01:03:14,120 Because what you're doing, Hitesh... 1165 01:03:14,240 --> 01:03:16,160 You've got good sales in HoReCa. 1166 01:03:16,360 --> 01:03:19,200 If I were in your place, I'd have told my daughter, 1167 01:03:19,280 --> 01:03:20,400 "Do one thing." 1168 01:03:20,480 --> 01:03:22,800 "Grow D2C. Focus on offline." 1169 01:03:22,920 --> 01:03:24,240 "Make it an omnichannel brand." 1170 01:03:24,360 --> 01:03:28,240 We're saying that we are also doing D2C. 1171 01:03:28,320 --> 01:03:29,720 I asked you a simple question. 1172 01:03:29,800 --> 01:03:30,720 Where will you focus? 1173 01:03:30,800 --> 01:03:32,080 Your answer was HoReCa. 1174 01:03:34,160 --> 01:03:35,400 I'd like to give you a suggestion. 1175 01:03:35,440 --> 01:03:37,360 Please... This has potential. 1176 01:03:37,440 --> 01:03:40,320 Sometimes, we underestimate ourselves. 1177 01:03:40,440 --> 01:03:42,560 Here, I think you guys are underestimating yourselves. 1178 01:03:42,600 --> 01:03:45,240 Aman, we said we're doing D2C also 1179 01:03:45,320 --> 01:03:47,320 and we'll also do retail in future. 1180 01:03:47,400 --> 01:03:50,520 - But today, it's more HoReCa-heavy. - Yes, got it. 1181 01:03:50,600 --> 01:03:52,280 The problem with the pitch was 1182 01:03:52,360 --> 01:03:55,400 that all of us felt that you were so focused towards HoReCa 1183 01:03:55,480 --> 01:03:56,760 that you didn't want to do this. 1184 01:03:57,000 --> 01:03:58,880 So, unfortunately, I'll be out. 1185 01:03:59,760 --> 01:04:01,920 - Thank you so much. Lovely to meet you all. - All the best. 1186 01:04:01,920 --> 01:04:03,560 - Best of luck. - We'll be in touch. 1187 01:04:06,000 --> 01:04:08,640 I was very disappointed in the CEO! 1188 01:04:08,720 --> 01:04:10,200 But she is very capable. 1189 01:04:10,280 --> 01:04:11,000 Yeah! 1190 01:04:11,080 --> 01:04:13,040 Underestimating their own potential. 1191 01:04:13,120 --> 01:04:14,640 - Her dad's shadow is... - Yes. 1192 01:04:14,760 --> 01:04:16,880 They could have done better. 1193 01:04:16,960 --> 01:04:18,600 Yes, she needs to be independent. 1194 01:04:18,680 --> 01:04:20,840 This is absolutely incorrect. 1195 01:04:20,920 --> 01:04:24,120 Because Richy is the CEO 1196 01:04:24,200 --> 01:04:26,360 and founder, and she makes 1197 01:04:26,440 --> 01:04:27,880 all the company decisions. 1198 01:04:28,000 --> 01:04:30,600 So it was Richy's idea to go HoReCa. 1199 01:04:30,680 --> 01:04:32,160 And I am just supporting her. 1200 01:04:32,240 --> 01:04:35,080 The brand we are building is an omni-channel brand. 1201 01:04:35,160 --> 01:04:39,200 At some point, they felt we were not doing B2C at all, 1202 01:04:39,280 --> 01:04:41,720 whereas we are, 1203 01:04:41,840 --> 01:04:43,480 but more consciously 1204 01:04:43,600 --> 01:04:47,040 without spending too much, growing it more organically. 1205 01:04:47,400 --> 01:04:48,920 Hello, Team Tulua. 1206 01:04:49,000 --> 01:04:50,000 - Hi. - Hi. 1207 01:04:55,800 --> 01:04:57,440 I wanted to see if you can tell me, 1208 01:04:57,520 --> 01:04:59,840 which shark is which spice? 1209 01:04:59,920 --> 01:05:01,600 - Oh, wow, okay. - Yeah! 1210 01:05:01,680 --> 01:05:02,680 - Fun game. - Yeah. 1211 01:05:02,800 --> 01:05:04,200 Okay, tell me, Vineeta? 1212 01:05:04,560 --> 01:05:06,000 - Chilli powder. - Oh! 1213 01:05:06,080 --> 01:05:08,520 - Kunal? - Bay leaf. 1214 01:05:08,600 --> 01:05:09,960 Bay leaf, why? 1215 01:05:10,040 --> 01:05:13,240 Aromatic, very calm and soothing. 1216 01:05:13,320 --> 01:05:14,720 Nice. Ritesh? 1217 01:05:14,800 --> 01:05:16,120 Lakadong turmeric. 1218 01:05:16,200 --> 01:05:17,400 Oh nice. Azhar? 1219 01:05:17,560 --> 01:05:18,720 Coriander. 1220 01:05:18,800 --> 01:05:20,000 Coriander. And Aman? 1221 01:05:20,080 --> 01:05:20,960 Cumin. 1222 01:05:21,040 --> 01:05:22,600 Aman is cumin. But why? 1223 01:05:22,720 --> 01:05:23,800 The cumin tempering. 1224 01:05:23,880 --> 01:05:27,320 - He adds a bit of himself to everything. - Yes. 1225 01:05:27,400 --> 01:05:30,240 Amazing! Where did you get these answers from? 1226 01:05:30,360 --> 01:05:32,440 You were answering like a rapid-fire round. 1227 01:05:32,600 --> 01:05:34,640 I love it, but unfortunately, 1228 01:05:34,720 --> 01:05:38,240 I have a terrible cold, so my voice is a little nasal. 1229 01:05:38,320 --> 01:05:41,560 I feel like I might spread it to people around me. 1230 01:05:41,800 --> 01:05:44,160 So I really need to take care of my immunity on set today. 1231 01:05:44,240 --> 01:05:46,240 - So you have turmeric? - Yes. 1232 01:05:46,320 --> 01:05:47,560 Pure turmeric? 1233 01:05:47,640 --> 01:05:49,760 Yes. It's the best 1234 01:05:49,840 --> 01:05:51,560 for nasal issues. 1235 01:05:51,640 --> 01:05:55,080 Great! So I immediately ordered lactose-free milk from 1236 01:05:55,200 --> 01:05:57,040 Swiggy Instamart because I can't have dairy. 1237 01:05:57,120 --> 01:05:58,840 And look, it arrived in 10 minutes. 1238 01:05:59,320 --> 01:06:01,960 I am going to use this milk and your turmeric. 1239 01:06:02,080 --> 01:06:03,320 And it will sort you out. 1240 01:06:03,400 --> 01:06:05,320 It will? Great! Thank you so much. 1241 01:06:05,400 --> 01:06:08,400 - I know it boosts immunity, so I am going to have it. - Yes. 1242 01:06:08,480 --> 01:06:12,000 And guys, if you need anything, Swiggy Instamart has it all, 1243 01:06:12,080 --> 01:06:14,120 and it arrives in ten minutes. Order now. 1244 01:06:18,120 --> 01:06:20,200 Fragrance plays a significant role in life. 1245 01:06:20,320 --> 01:06:22,840 A scent leaves a lasting impression on you. 1246 01:06:28,280 --> 01:06:31,560 'We have created unique and modern fragrance' 1247 01:06:31,640 --> 01:06:33,960 'and designed premium packaging.' 1248 01:06:37,280 --> 01:06:40,320 He came here and left a mark on our lives too, 1249 01:06:40,400 --> 01:06:43,840 with his performance and everything he did after leaving. 1250 01:06:43,920 --> 01:06:46,040 'A valuation of 200 crore is no small feat.' 1251 01:06:46,120 --> 01:06:47,880 'What is the price-to-sales ratio?' 1252 01:06:48,040 --> 01:06:50,280 'Last month, we did six crores.' 1253 01:06:50,360 --> 01:06:52,600 - '- Oh lovely! - Very nice!' 1254 01:06:52,680 --> 01:06:54,200 'How much did you burn?' 1255 01:06:54,280 --> 01:06:56,840 'Burning is around five per cent.' 1256 01:06:56,920 --> 01:06:58,520 'Did you raise funds?' 1257 01:06:58,600 --> 01:06:59,920 'No, we take debt.' 1258 01:07:00,000 --> 01:07:01,240 'Oh, I think so.' 1259 01:07:01,320 --> 01:07:03,840 'My offer is one crore' 1260 01:07:03,920 --> 01:07:06,720 - '- for one per cent of the company. - Wow!' 1261 01:07:06,800 --> 01:07:09,160 'And a royalty of' 1262 01:07:09,280 --> 01:07:12,440 'one per cent of your net revenue' 1263 01:07:12,520 --> 01:07:13,880 'until I recover my one crore.' 1264 01:07:14,000 --> 01:07:16,240 - '- Deal done. - Oh wow!' 1265 01:07:16,320 --> 01:07:18,640 'Cool, congratulations.' 1266 01:07:19,880 --> 01:07:23,080 Hello, welcome to Adani Presents Beyond the Tank. 1267 01:07:23,240 --> 01:07:26,320 Adani believes in every Indian with the spirit 1268 01:07:26,400 --> 01:07:29,480 to make it big because we make it happen. 1269 01:07:29,720 --> 01:07:32,480 We celebrate those founders and pitchers 1270 01:07:32,560 --> 01:07:35,320 who came to Shark Tank, seized the opportunity, 1271 01:07:35,480 --> 01:07:37,680 and created an impact. 1272 01:07:37,760 --> 01:07:40,880 Today, we have with us the founder of the brand ADILQADRI. 1273 01:07:40,960 --> 01:07:42,560 - Mr Adil Qadri. - Hi. 1274 01:07:42,640 --> 01:07:43,920 - How are you? - All good. 1275 01:07:44,000 --> 01:07:45,680 How much confidence does it take 1276 01:07:45,800 --> 01:07:47,640 to name your brand after yourself? 1277 01:07:47,720 --> 01:07:49,840 It takes a lot of confidence, a lot of hard work. 1278 01:07:49,920 --> 01:07:53,160 And most importantly, the courage to face criticism. 1279 01:07:53,240 --> 01:07:54,920 - Does Shark Tank help? - Yes, it does. 1280 01:07:55,000 --> 01:07:57,960 - What benefits did you experience? - Your market awareness increases. 1281 01:07:58,040 --> 01:07:59,480 People start recognising you. 1282 01:07:59,600 --> 01:08:01,120 You get a bit of a celebrity feel. 1283 01:08:01,240 --> 01:08:04,480 For me, a few extra things happened, sales grew, 1284 01:08:04,560 --> 01:08:06,200 opportunities increased, 1285 01:08:06,280 --> 01:08:08,560 and investors and customers started coming in. 1286 01:08:08,640 --> 01:08:10,680 You do a great job at branding, 1287 01:08:10,760 --> 01:08:13,480 but do you ever wonder, 'What is Adil Qadri really about?"' 1288 01:08:13,560 --> 01:08:15,120 [laughs] 1289 01:08:15,200 --> 01:08:16,840 - I have to do that. - Right? 1290 01:08:16,960 --> 01:08:18,440 Indirectly, I want to send the message 1291 01:08:18,520 --> 01:08:20,840 that Adil Qadri is not just me, it's the team behind it. 1292 01:08:20,920 --> 01:08:23,240 Adil Qadri is an organisation, a brand, 1293 01:08:23,360 --> 01:08:24,840 run by a hundred to 200 people. 1294 01:08:24,920 --> 01:08:29,320 You mentioned watching the episode with your entire family. 1295 01:08:29,400 --> 01:08:31,960 That must have been a proud moment for them. 1296 01:08:32,120 --> 01:08:34,280 It was both things for my family. 1297 01:08:34,360 --> 01:08:37,160 Watching the episode and seeing how much debt was being discussed. 1298 01:08:37,240 --> 01:08:39,400 That got them a little worried. 1299 01:08:39,480 --> 01:08:42,360 Coming from a regular family, they have a concern about loans. 1300 01:08:42,440 --> 01:08:43,720 My mom is very emotional. 1301 01:08:43,800 --> 01:08:46,400 But then we cut a cake, we made her sit down. 1302 01:08:46,480 --> 01:08:48,240 And explained that it doesn't work like that. 1303 01:08:48,360 --> 01:08:50,600 The annual business is 90 crores, 1304 01:08:50,680 --> 01:08:52,360 so five to six crore in debt is nothing. 1305 01:08:52,480 --> 01:08:55,600 Now, marketing is only going to get stronger. 1306 01:08:55,720 --> 01:08:56,760 So don't stress about it. 1307 01:08:56,880 --> 01:09:00,400 And the real proud moment started the next day 1308 01:09:00,520 --> 01:09:02,400 when the videos went viral. 1309 01:09:02,480 --> 01:09:04,440 My relatives started calling. 1310 01:09:04,560 --> 01:09:06,560 You know how typical moms are. 1311 01:09:06,640 --> 01:09:09,600 After that, she started feeling proud. 1312 01:09:09,760 --> 01:09:11,480 Debt was already a talking point, 1313 01:09:11,560 --> 01:09:14,200 they were saying it was a trap. 1314 01:09:14,280 --> 01:09:17,160 And then you got a royalty-based deal. 1315 01:09:17,240 --> 01:09:19,520 What were you feeling at that moment? 1316 01:09:19,640 --> 01:09:21,680 Being on Shark Tank and getting aired 1317 01:09:21,760 --> 01:09:24,360 - is massive marketing in itself. - That's true. 1318 01:09:24,440 --> 01:09:25,480 I am a businessman. 1319 01:09:25,560 --> 01:09:29,000 I thought logically, one crore is nothing compared 1320 01:09:29,320 --> 01:09:30,880 to what we would spend on advertising. 1321 01:09:30,960 --> 01:09:33,000 So I decided to take the deal and move forward. 1322 01:09:33,120 --> 01:09:34,840 Once the episode aired, 1323 01:09:35,160 --> 01:09:37,560 the marketing and branding 1324 01:09:37,680 --> 01:09:41,480 would be worth it. No tension at all. 1325 01:09:41,560 --> 01:09:43,360 And Anupam Sir had said... 1326 01:09:43,440 --> 01:09:45,240 'You are the gangster of this industry.' 1327 01:09:45,480 --> 01:09:46,880 'A gangster goes straight to jail.' 1328 01:09:47,000 --> 01:09:48,280 'You have to become a king.' 1329 01:09:48,360 --> 01:09:49,960 Have you become the king, or is there still a journey left? 1330 01:09:49,960 --> 01:09:51,880 I'm on the way, I will become one very soon. 1331 01:09:51,960 --> 01:09:54,320 Great! Where do you see your brand going from here? 1332 01:09:54,440 --> 01:09:56,640 We will expand further into the premium range, 1333 01:09:56,720 --> 01:09:58,080 and enter the luxury segment. 1334 01:09:58,200 --> 01:10:01,160 We are aiming for big international markets. We are already in Dubai. 1335 01:10:01,240 --> 01:10:02,640 - Absolutely. - We plan to open 1336 01:10:02,720 --> 01:10:04,880 stores in the UK, US, and Canada. 1337 01:10:04,960 --> 01:10:07,080 When we saw you in the Tank, 1338 01:10:07,160 --> 01:10:09,120 you were mostly online. 1339 01:10:09,240 --> 01:10:10,440 Yes, the majority was online. 1340 01:10:10,560 --> 01:10:13,280 When I came to the Tank, we had seven stores. 1341 01:10:13,360 --> 01:10:15,160 - Seven? - Yes, seven stores. 1342 01:10:15,240 --> 01:10:17,400 Today, while I'm shooting this, we have 31 stores. 1343 01:10:17,480 --> 01:10:18,840 Our target is 111 stores. 1344 01:10:18,920 --> 01:10:20,920 We are opening two stores every month right now. 1345 01:10:21,000 --> 01:10:22,720 Gujarat and Maharashtra have the highest numbers. 1346 01:10:22,760 --> 01:10:24,880 After getting a deal, you mentioned in an interview 1347 01:10:24,960 --> 01:10:27,320 that you took the deal 1348 01:10:27,400 --> 01:10:31,480 because you were experimenting and learning, now you want expertise. 1349 01:10:31,600 --> 01:10:34,000 Did you get that expertise from the Shark? 1350 01:10:34,080 --> 01:10:37,320 Yes, I did, a lot of things from Vineeta Ma'am's team. 1351 01:10:37,400 --> 01:10:41,800 When I needed investment, she said, 'I'll mail, and you'll get a reply.' 1352 01:10:41,920 --> 01:10:44,720 - She sent the mail, I got a response immediately. - Okay. 1353 01:10:44,840 --> 01:10:47,360 Then she guided me for an hour. 1354 01:10:47,520 --> 01:10:49,000 So all this helps. 1355 01:10:49,080 --> 01:10:50,880 These things open up pathways and new opportunities. 1356 01:10:50,920 --> 01:10:51,920 Obviously, doors open up. 1357 01:10:52,120 --> 01:10:54,200 Tell us, what's new in terms of products? 1358 01:10:54,280 --> 01:10:56,840 Recently, Adil Qadri launched 1359 01:10:56,920 --> 01:11:01,080 four new attars under the Royal Series. 1360 01:11:01,160 --> 01:11:03,120 - Royal Series? - Yes, this is the Royal Series. 1361 01:11:03,200 --> 01:11:07,520 Now that we have stores, people demand premium and luxury products. 1362 01:11:07,600 --> 01:11:09,320 So, we launched this. 1363 01:11:09,800 --> 01:11:12,400 Wow, the container looks stunning. 1364 01:11:12,480 --> 01:11:14,640 People like to display 1365 01:11:14,720 --> 01:11:18,400 these bottles in their showcases or washrooms. 1366 01:11:18,520 --> 01:11:20,760 We designed this with that perspective in mind. 1367 01:11:20,840 --> 01:11:24,240 How much are you spending on performance marketing this year? 1368 01:11:24,320 --> 01:11:27,160 We are spending 3.5 crore rupees per month. 1369 01:11:27,240 --> 01:11:28,360 - Every month? - Yes. 1370 01:11:28,440 --> 01:11:31,640 This generates sales of around 10-11 crores, 1371 01:11:31,720 --> 01:11:34,600 which means a ratio of about 30 per cent. 1372 01:11:34,680 --> 01:11:37,120 Are you considering raising more funds to scale up? 1373 01:11:37,200 --> 01:11:39,800 We need funds, and we will raise them, but through an IPO. 1374 01:11:39,880 --> 01:11:43,160 - Oh! - The public wants profit, and we will ensure they get it. 1375 01:11:43,240 --> 01:11:45,080 Your educational background wasn't very strong, 1376 01:11:45,160 --> 01:11:47,080 yet you learned everything 1377 01:11:47,240 --> 01:11:49,280 on your own through experiments. 1378 01:11:49,360 --> 01:11:51,520 Then, you went on to employ people, 1379 01:11:51,600 --> 01:11:54,600 especially those from small towns. 1380 01:11:54,680 --> 01:11:57,160 You not only developed their skills 1381 01:11:57,240 --> 01:11:59,920 but also boosted their confidence and morale. 1382 01:12:00,000 --> 01:12:02,000 We truly appreciate what you have done. 1383 01:12:02,080 --> 01:12:05,720 For this, we now take you to the Adani Hall of Achievements. 1384 01:12:06,960 --> 01:12:08,840 How does it feel to be back on Shark Tank? 1385 01:12:08,920 --> 01:12:11,040 It feels amazing. Brought back old memories. 1386 01:12:11,120 --> 01:12:12,440 I had come one year ago. 1387 01:12:12,520 --> 01:12:14,160 But this time, I'm feeling a little better 1388 01:12:27,320 --> 01:12:28,920 - Here you go. - Thank you so much. 1389 01:12:35,120 --> 01:12:37,720 I'm good. I came to shoot the podcast. 1390 01:12:37,840 --> 01:12:41,680 That's great. Explosive sales this year, right? 130 crores. 1391 01:12:41,760 --> 01:12:44,200 Did you imagine the jump would be so big after Shark Tank? 1392 01:12:44,280 --> 01:12:45,960 No. But it was great. 1393 01:12:46,040 --> 01:12:47,240 What is your plan now? IPO? 1394 01:12:47,320 --> 01:12:49,800 - Yes, we are hiring a merchant banker. - Okay. 1395 01:12:49,880 --> 01:12:52,600 - He'll tell us first... - Why don't you wait for a year? 1396 01:12:52,760 --> 01:12:54,400 We are doing it after the audit in March. 1397 01:12:54,520 --> 01:12:56,600 - Amazing. - But we're first checking the eligibility. - I see. 1398 01:12:56,600 --> 01:12:59,320 If we are not eligible, then we'll do it after one year. 1399 01:12:59,400 --> 01:13:01,480 - But it's profitable. - Hmm. 1400 01:13:01,560 --> 01:13:04,600 - The PAT is positive, so there is no need for funding. - Hmm. 1401 01:13:04,760 --> 01:13:06,080 So you will cross 100 crores. 1402 01:13:06,160 --> 01:13:07,840 - 100 crores. - And with PAT positive. 1403 01:13:07,920 --> 01:13:09,600 - PAT is positive. - That's so inspiring. 1404 01:13:09,760 --> 01:13:12,480 Great, I hope this will be the first Shark Tank IPO. 1405 01:13:12,560 --> 01:13:13,720 - Yes. - It'll be great fun. 1406 01:13:13,800 --> 01:13:15,920 - Yes. - I have full faith, I've already told everyone 1407 01:13:15,960 --> 01:13:18,680 that we're going to have the first IPO of Shark Tank. 1408 01:13:18,840 --> 01:13:19,960 - Thank you. - Bye. 1409 01:13:20,040 --> 01:13:21,160 Thank you. 1410 01:13:31,400 --> 01:13:34,400 Please welcome the co-founder and CMO of boAt Lifestyle, Mr Aman. 1411 01:13:38,320 --> 01:13:41,320 - It was good, wasn't it? - Yes, it was good. 1412 01:13:41,840 --> 01:13:43,920 Do you really eat so many momos? Or do they just tease you? 1413 01:13:43,960 --> 01:13:46,240 - I eat them. I like them a lot. - You eat them. 1414 01:13:46,760 --> 01:13:49,960 Today's question says, 'Greetings, Aman.' 1415 01:13:50,080 --> 01:13:53,160 'I'm from Kanpur and my name is Arvind Tripathi.' 1416 01:14:10,640 --> 01:14:13,560 We have had celebrities for the last seven years. 1417 01:14:13,640 --> 01:14:15,880 It's not like we've roped them in just now. 1418 01:14:15,960 --> 01:14:18,440 The main purpose of bringing in a celebrity 1419 01:14:18,520 --> 01:14:23,400 is to create a long-term vibe between the brand and the celebrity. 1420 01:14:23,520 --> 01:14:25,280 ROI is not everything. 1421 01:14:25,360 --> 01:14:27,680 We are an ROI-driven brand and we do ROI-driven marketing. 1422 01:14:28,000 --> 01:14:30,520 There is ROI on long-term not short-term. 1423 01:14:30,600 --> 01:14:34,480 It improves the awareness. Yes, it increases consideration and purchase. 1424 01:14:34,680 --> 01:14:37,920 But to track it at that time 1425 01:14:38,080 --> 01:14:42,880 - when the celebrity... Suppose our celebrity is Ranveer. - Yes. 1426 01:14:43,000 --> 01:14:45,080 His vibe and our brand vibe match very well. 1427 01:15:19,120 --> 01:15:22,360 We'll meet on the next 'Ask The Shark,' with a new question and a new Shark.