[music playing]
[theme music playing]
We are from Mumbai.
Do you see this girl wearing a dress that's way too big for her?
That's me.
Remember your childhood?
Our mom used to dress us up without our consent.
No one cared whether we liked the outfit,
if it fit well or looked good.
Mim played the stylist, and Dad turned into the photographer.
But Gen Alpha,
who are between 2 to 12 years old, have a mind of their own.
They like to stand out and they are very busy.
Parents want to celebrate their individual personalities.
The clothes that are stylish are out of budget.
And that are in our budget are not trendy.
At Taffykids, your fashion statement is our command.
So, Taffykids is a trendy and affordable kids wear brand.
your kids get the main character energy.
We launch around 40 new designs every week
We provide options for children that are available for you.
Sharks, in the last 3 years,
- we've brought fashion to 3.5 lakh children. - Amazing!
Sharks, 'Taffy' means toffee,
which is made from salt water.
It is sweet and salty.
We want to give 'Taffy' look to Gen Alpha,
sometimes sweet, sometimes salty.
So, our ask is
Rs. 75 lakhs for 1% equity.
- Oh, man! - Lovely! Look at them.
[cheering]
So cool!
- Welcome! - Oh!
She looks like your doll.
Nice!
So cute. My God!
[cheering]
Nice!
- Oh my God! - Oh, man!
Whoa!
- That's your pose. - Shah Rukh Khan.
[music playing]
- So amazing! - They raided our hearts, not the tank.
- Oh! - It was amazing!
Very cute.
I want to welcome all of you to Shark Tank.
- Thank you so much. - I have
- Me. Yes. - Last year. You?
- When Ari was born... - Oh!
- I received a message from you. - Yes.
- I dropped a comment. - You had messaged.
- Yes! - After your comment, we had a conversation.
- For that reason, I followed your products. - Wow!
Did he buy from you?
- The age group doesn't fit. - Okay!
- He is one year old. - He is still 11 months old.
We cater to children in the age group of 2 to 12 years.
How did you enter this business? Tell me about you.
I am from Mumbai.
I did Fine Arts in Fashion Designing.
I later became a senior designer at House of Anita Dongre,
where I led the research team
for their newly launched kids wear line.
During that time, I realised
that kids are evolving, they want to wear clothes just like we do.
Their clothes are cute and childlike.
No one is infusing fashion
or redefining that category.
They look at kids wear as a small business,
it's an extension of the main product line.
It is not a big business.
If I ask you
about a kids wear brand from India, you probably won't know much.
That was the idea. I want to fill this gap.
We started in 2021.
Within a year,
after finding an investor, we had set up everything.
Pratik and Sangita joined me in 2022.
- Okay! - Tell us about you, Pratik.
I have a background in engineering.
I did my Engineering at Father Agnel College, Mumbai.
I was an AVP at JP Morgan for 10 years
before joining Taffykids.
I have been in the fashion industry
for over 3 decades now.
I was with House of Anita Dongre for 25 years
in leadership roles.
- Are you the CEO, Niti? - Yes.
What role do you play, Pratik and Sangita?
I am the CEO.
I handle operations and technology.
I am heading production and sourcing completely.
Tell me something, you used the word 'childlike'.
- Yes. - Children don't want to wear clothes that look too childish.
- They want to wear trendy clothes like adults do. - Yes.
Shouldn't the name be less childish then?
I totally agree with you.
The name won't align with us when we expand into the teen line.
- Why not just name it 'Taffy'? - I agree.
- Drop 'kids'. - The trademark wasn't available.
Correct!
[music playing]
This is nice.
Oh, this is so cool.
- This tweed feels like Chanel. - Exactly!
This is currently trending.
Sangita and Niti, I can see that you come from the fashion industry.
The sheen of this tweed resembles that of Chanel,
and the buttons are very Balmain.
- Do you agree? - Yeah!
- You've given a couture look to kids fashion. - Yes.
- Compliments to you. - Thank you.
If my 8-year-old daughter were here,
- she would fall in love with these clothes. - 100%.
Thank you so much!
- Niti, are you pregnant? - Yes.
- Oh my God! Congratulations! - Congratulations!
- What a perfect business.
Your baby will be the most fashionable baby
in the entire kindergarten.
They will be a fashion icon.
It starts from Rs. 499
- and goes up to Rs. 2,299. - Okay!
- All three for Rs. 2,299 is very good. - That's the highest price.
- Rs. 2,299 is the highest price point. - Yes. The single T-shirt
starts from Rs. 499.
- The pricing is quite attractive. - The tag says Rs. 900.
It's a pack of two, ma'am.
- Okay! These two are for Rs. 900. - Yes.
It's pretty good.
In your business journey,
did you start from 2 to 12
or did you start with smaller sizes?
I started with four sizes.
The first lot was just 10 pieces.
- Okay. - 10 pieces, four sizes and only 13 designs.
Now, we launch around 40 designs weekly.
For which age group did you start?
From 2 years to 6 years.
We are gradually increasing our sizes.
Can you tell me about your channel distribution
online versus other places?
Basically, 90% of revenue comes from the marketplace
and 10% comes from our D2C website.
I noticed that young children model for you
- on your social media. - Yes.
- Now that he has mentioned it, please show it to us. - Sure.
We have around 23,000 followers on Instagram.
Show us your viral video.
So cute!
This is the same dress.
This one!
The one that Namita has?
- I love this! - Same dress.
Oh my God!
I cannot believe this.
Oh my God!
How old is she?
- She is 5 years old. - 5-year-old.
- Oh my God! - Oh my!
What attitude!
If I had a daughter, this is how I would dress her up.
Show us a boy.
- I doubt we have it. - You don't?
- and 10% for boys. - No!
You have that standard black, blue and brown.
Whenever I go shopping for my sons,
there are beautiful designs for girls
and there is this small rack for boys.
We are going to change the scenario.
We've just started doing boys clothes fairly recently.
The percentage is less.
We have around 75% girls clothing.
- We make boys clothes now. - My experience is in women's wear.
- That's why! - I was comfortable making girls clothing.
We're losing 50% of our customers.
Right now, we have 20% boys clothing.
Our target is to make it 50%.
How do you compare with your competitors?
- Yes! - How do you differentiate yourself from your competitors?
The brands that exist are comfort-oriented.
Hopscotch is a marketplace
that positions itself in fashion,
but within the marketplace, they have everything available.
But what they are building up is fashion for kids,
they've pivoted to that.
- They are your direct competitor. - Yes.
Do they operate on a larger scale than you?
- Yes, of course. - Yes.
Who else is there besides them?
- Zara. But their pricing is 3 times more than ours. - True.
What sets our brand apart is that we have a design language
that is unique to us,
while others source their designs from other countries.
Share your numbers with us.
Last year, we closed at Rs. 12 crores.
- Whoa! - Oh!
Before that, we closed at Rs. 3.5 crores.
And the year before that, we closed at Rs. 55 lakhs.
What is it this year in the first six months?
Our monthly run rate is Rs. 1.5 crores.
We are planning to close at Rs. 19 crores.
What's the bottom line this year and in the previous years?
Bottom line, our EBITDA was 8% last year.
FirstCry provided us with scale.
For the past year, we were exclusive with them.
- Okay! - They poached us in October.
And they offered us that they would make our business a brand,
scale it and bring it to their customers.
We recently exited from FirstCry.
Why did you stop selling
- at FirstCry? - Our contract was for 12 months.
- When the contract was over... - They ended the exclusivity.
- Now, we are available in every marketplace. - Got it!
They have over 10 lakh daily visitors.
They gave us visibility that we didn't have before.
They placed banners and offered discounts.
Because of that, we were able to scale.
Out of Rs. 12 crores, how much of the business came from FirstCry?
We were exclusive.
Our COGS is 25%.
What is your average order value?
Average order value is Rs. 1,300.
Is your gross margin 75%?
Yes.
Okay! What next?
47% is our commission.
- Marketplace commissions. - Marketplace.
- 47%? - Oh!
- Yes! - FristCry!
- It's high. - FirstCry.
Did they purchase it outright from you?
- No! - No!
- And yet it is 47%. - And still, it's at 47%.
Because it entailed their logistics, marketing, and packaging.
And the promised amount of marketing...
How much did they put for marketing
- out of 47%? - They used to make
a 3-month plan for Rs. 36 lakhs.
They spent that much.
47% is for commission logistics.
- You have not paid for marketing from your pocket. - Nothing.
- Your contribution margin is 28%. - Yes.
What other expenses were there?
- We have 4% marketing spend for our D2C website. - Okay.
9% is fixed cost.
Does the Rs. 12 crore net revenue include GST?
Yes, it included GST.
Okay! How much GST do you pay in percentage?
- If you take 10% from Rs. 12 crores and... - Got it.
- Deduct Rs. 1 crore, you'll be left with Rs. 11 crores. That's fine.
How is your gross margin so high?
You don't see a gross margin of 75% in fashion.
How are you making it for a cheap price?
We have a different business model.
- We buy ready fabrics that are available. - Ready fabric.
When you buy ready fabric,
the price comes down slightly.
- what we are doing. We save there. - Made-to-order is expensive.
The other thing is job working.
The other brands get it made from vendors,
then the vendors take 10%.
Our plan is to grow the D2C channel.
Our plan is to reach Rs. 100 crores.
After that, we will open EBO stores across India.
I've seen many brands do this.
When they start the retail expansion,
- that is where the problem begins. - Correct.
You mentioned the lack of brands for children's clothing.
- 'Give us a few names!' - Yes.
- They come and go. - Correct.
Why do they leave?
Retail is a business of inventory and right drop.
All retail brands collapse due to inventory challenges.
The inventory point is valid.
Have you taken any inventory write-offs so far?
- Yes! - Yes.
Does the inventory write-off exclude the gross margin when reported?
- We exclude it. - We deduct it.
So, 75% is after this write-off,
- which is almost 10%. - Right.
You are saying, otherwise, your gross margin was 85%?
Yes.
No! Then say it properly.
No, it won't be like this.
You tell us, ma'am. He is new.
No! Only he can share the numbers.
He is getting confused.
No, I am not confused.
- 25% is our COGS. The goods we sold. - Yes.
And the 10% write-off you did last year,
- where did you allocate it? - 10%...
We took the write-off from the leftover inventory after EBITDA.
- After EBITDA? - After EBITDA.
How did you take the write-off after EBITDA?
This comes under expenses.
If your write-off is Rs. 97 lakhs,
your last year's profit was Rs. 96 lakhs.
- Your 8% EBITDA. - Yes.
This means your net profit was zero last year.
Yes, we were break-even.
- Zero. - Oh! You didn't say that.
Niti, your image is taking a hit.
Until now, you said you've made a profit.
All of a sudden,
we know that your profit is zero. Is this true?
So, Pratik handles numbers.
Honestly, I am confused
about where we stand. I am trying to recall.
Just tell me one thing. Did you make money last year?
We made around Rs. 8 lakhs.
That is it then.
- Hold on! How much income tax did you pay last year? - It's clear now.
We showed a profit of Rs. 4 lakhs.
- 25% on it. - So, Rs. 1 lakh.
What is your inventory provisioning policy?
We write off the inventory
that's older than 6 months.
Oh!
The main reason why I am out
is because your marketplace management will be very critical.
Okay!
- You'll have to strengthen your team a little more. - Yes.
Hire someone in finance who is good with numbers.
You will either be a hit or a miss.
- There is a good chance of being a hit if you have a good team. - Yes.
- Keep this in mind. - Correct! It's a great feedback.
- Thank you. - Thank you, bye!
Your business is scaling fast.
- It's quite disproportionate. - Okay!
Currently, you need to control your business as much as you can.
Yes.
For example, you said you don't know the numbers.
- You don't have this option. - Correct.
- You are the CEO. - Correct.
But that said, I think
this business can become a culture transformation agent
- in young people's lives. - Yes.
I think I can help you by first establishing
a proof point in your store's segment for one year.
- I believe it will take some time to create that proof point. - Yes.
- Yes, of course. - Agreed.
Once it's established,
scaling it up will be easier,
as we have successfully made thousands of stores profitable.
I think I will be able to assist you in that process.
Definitely!
But I think I can't help you alone.
- Oh! - Okay.
I think, if possible,
we should do this with Vineeta.
Vineeta can bring her own abilities in D2C, design and so on.
I think what is exceptional about you
is product design and manufacturing cost.
I've handled many fashion businesses,
but I have never come across such gross margins.
Your inventory is only 3 months old. That's exceptional.
- In fashion, that's where everything falls apart. - Correct.
So, for that reason, I would love to partner with Ritesh.
And we will give you an offer.
Rs. 75 lakhs for Rs. 1.5%.
Plus a 1% royalty,
till our capital is recouped
in the next few years.
So, I think
you can be a Temu for kids, but in a nicer way.
In a Janie and Jack way.
- You got it. - You can be that.
- I love Janie and Jack. - Yes.
And I have people in this industry
who are absolute experts.
- And with them, you will get all the expertise. - Wow!
I would like to make you an offer.
Rs. 75 lakhs for 1%. That is your ask.
With a 1% royalty on sales
till I get my money back.
- Are you fine, Niti? All okay? - Yes.
- Do you want to sit down, Niti? - No, I am fine.
- Sure? - I'd like to...
- Are you sure? - Hear the offer.
That's it.
- She is so excited. - A lot of excitement.
Give her a chair. Help her out.
Okay! Design is a good attribute of this business.
You and Sangita have this superpower.
But this business is going to enter a risky phase.
You are assuming
that now you are out of FirstCry
and if you add marketplaces,
- the sales will grow. - Hmm!
- It is not necessary that this will happen. - Okay.
Because when you go to other marketplaces,
there will be more brands
- with whom you have to fairly compete. - Correct.
Your revenue may not necessarily stay the same in the next 12 months.
It could go up or it will be half of it.
- All right! - Because your distribution will suddenly change.
Yeah, I agree.
I'll invest Rs. 2 crores.
Okay!
At a Rs. 30 crore valuation.
Okay!
Which is 6.67%.
Okay! Thank you so much for your offer.
It's 1.5% and 1% royalty.
Now, we want to change it to Rs. 75 lakhs
But to give an equity of 6.6%, think hard.
So, thank you, Sharks, for the offer.
I want to give a counteroffer to Vineeta and Ritesh.
Can you bring down the royalty?
The second option is, can all three of you come on board?
I will give you a counter from Ritesh and me.
Rs. 75 lakhs for 1.5%,
- My offer is Rs. 75 lakhs for 1% at a 0.5% royalty. - Yes.
for the stage and the risk in the business.
- Otherwise, I would've come on board. - Okay.
You have two offers now. Please decide.
- I guess I will go with Vineeta and Ritesh. - Thank you.
- Thank you so much. - I am very excited.
And lovely designs.
- Thank you. - Keep up the good work.
We are raising a funding round.
With the right valuation, we can secure further investment.
If we had accepted Kunal's deal, our valuation would've gone down.
So, we didn't go with his offer.
Vineeta has already created a consumer brand.
Ritesh has experience in creating retail brand.
It will really help us in the future.
- Hello, friends. - Hi!
- How was your experience inside? - Great! It was good.
Good. Did you expect a deal from them or someone else?
No! Things panned out our way.
- It's great that you got a deal. Congratulations on that. - Thanks.
I saw the entire pitch.
I loved your products.
You are working on kids fashion, which is great.
When I was a child, I visited many places
wearing my sister's frock.
- So... - Your sister's frock?
Yes! I enjoyed wearing them.
But the society didn't let me wear it.
But, amazing!
I see you're in the children's fashion space,
so it's time we level up your style statement.
I've ordered gifts for you from Swiggy Instamart.
- It was delivered in 10 minutes. - Thank you!
Wow!
Thank you! Thank you so much.
This is for you.
- Thank you! - Thank you!
- Thank you so much! - We ordered sunglasses,
sling bag and smartwatch.
Friends, you need to up your style game.
Order what you want from Swiggy Instamart.
You get everything there.
It also gets delivered in 10 minutes. Order now.
[music playing]
Imagine it's night time
and you're heading home from your office.
The street is deserted
and suddenly, you feel like someone is watching you.
A wave of fear rushes over you and you grip your bag tighter.
Your pace quickens as you walk,
your only thought being
how to reach home as soon as possible.
This fear, this uneasy feeling,
this instinctive reaction
has become an inevitable part of every woman's life.
Whether it's day or night,
indoors or outdoors,
alone or in a crowd.
Currently, in India,
a rape case is reported every 16 minutes
Sexual assault, molestation,
even eve-teasing in some form or other,
every woman has either endured these traumas or knows someone who has.
Basic safety, which should be
a fundamental right for all of us,
has become a luxury in today's world.
Hello, Sharks. I am Nandita Yenagi.
We are social impact innovators.
Sharks, after the Nirbhaya case,
we were returning from a candle march, feeling defeated.
We hadn't even reached the parking lot
when news broke of yet another case being reported.
That day, we were filled with anger.
We started wondering, what can we do?
Being tech-driven individuals, so we found a technical solution.
After speaking to survivors
and conducting some research, we discovered
that there are no handy self-defence gadgets
available in the market
to tackle panic situations and defend oneself.
That's why we took a small step
and created Whale Wearables,
where we have designed patented, handy self-defence gadgets.
With which you can give an attacker a current...
It is a wristband or a button,
if you click on it, you can send an SOS alert and call for help.
Our vision is to make the world, not just India,
a place where women can live freely and safely.
Our vision can be summed up in one line,
but it's an ambitious one, Sharks.
For this, we need your support
and Rs. 30 lakhs at 3% equity.
- Hello, Nandita and Sharad, - Hello!
- The whales are here at Shark Tank! - Yes.
After Nirbhaya, we were all deeply moved
- and there was a lot of anger in the country. - Yes.
But you took that anger and turned it into something tangible.
For that, from my side, you have a lot of respect.
But before we discuss your business and product,
let's start from the beginning.
Tell us the journey of business.
We met at an engineering college.
We had a similar thought process.
We used to do a lot of social work together.
We started our first startup in the agritech sector.
Which year was this?
It was registered in 2017.
But we started working on this
- in the first year of engineering. - From the first year
of engineering, we used to make prototypes.
- Which year was that? - 2013.
We had many ideas in college.
We filed 12 patents back then.
- What are you saying? Wow! - Yes, sir.
What was the startup?
There are many farms around Belagavi.
The fertilizer has to be fed into the root network.
But there are no devices for it.
I had a simple idea for it, sir. A backpack,
with pipes and a bit of mechanism,
that can be inserted into the root network.
Due to a lack of subsidy,
sales have dropped after 2019-2020.
Did you shut down the business?
We have a team there. The team is waiting for the subsidy.
But are you still the equity holders?
- Yes, we are. - We are equity holders.
But we don't have any responsibility.
Are you both just friends or is there something more?
- No, we are husband and wife. - We are husband and wife.
- We recently got married. - Congratulations!
Let's talk about Whale Wearables.
You mentioned in your pitch
that you were returning from Nirbhaya's candle march,
is that when you started working on this?
In 2014, all over the nation,
it was the 2nd anniversary march.
There was a candle march on that day.
We literally felt anger and helpless.
What can we do about this?
I also had an experience.
I was travelling back to Belgavi from Mumbai.
There was an incident where the guy did not touch me.
As I was returning from the driver's seat, he blocked my way.
And I literally froze.
I was helpless.
And that is when we thought
we had to do something,
which has to be a wearable gadget
and not something I keep in my pocket or bag
that I can't access quickly.
But who roams around wearing a glove?
- For example, pepper spray. - Yeah.
You can spray that. But who wears a glove?
- Ma'am, I want to show you a demo. - Please show us.
Ma'am, this is a glove.
This is called Whale Thunder.
This enclosure you see here
has circuits and batteries.
I will wear it and explain.
There is a safety switch here.
When you turn it on, the technology will activate.
You can also start a loud siren.
It also has a flashlight.
In case you are stuck in a dark area and you need to navigate.
You can also use it to distract the attacker.
When the flashlight is directed at the eyes, it blinds you.
A woman with a job has to travel late at night.
They know the areas
where the hotspots or risk spots are.
You will then wear the glove
- when you are in those areas. - You will wear this
before you are there.
Tourists can use this. They can rent it out.
This particular device
will be connected to our app through Bluetooth.
We use the phone's GPS location.
The GPS will send an SOS alert
This one has less shock.
This is for the general public and women.
We have one with more voltage.
[electric whirring]
What can that do?
- All our technologies are non-lethal. - Non-lethal.
This will disable the attacker,
providing you with extra time to act.
His muscles will contract.
He won't understand what's going on.
You get around 10 minutes to escape.
How intense is the shock?
It's around 4,000 volts.
- No! - Will it lead to hospitalisation or a health issue?
- No, ma'am. - That could be a litigation issue
if it's the wrong person.
It won't cause that much damage.
If someone who has suffered...
What if the survivor gets a shock?
It can be very challenging then.
How are you solving that?
If you're getting shocked, you'll wonder how to turn it off.
Because you freeze.
It doesn't give you a shock for more than 5 seconds.
that there's minimal risk of hurting oneself.
Can only women buy this or can anybody?
Is there a risk of it falling into the wrong hands?
This has a biometric too.
The biometric will be at the right thumb.
Only the woman registered with us and whose KYC we have
- can... - Only she gets to use it.
Out of the agriculture problem and this one,
why did you choose agriculture first?
- Sir... - Sir, it is comparatively easy to make.
But it can't take ten years to make it.
Sir, Nandita was always of the opinion
that she wanted to focus on this idea first.
Sir, every time we approached
the Home Ministry or Police Department with this,
they'd always say, "You're students. Focus on studies."
We didn't have the reputation or the funds, sir.
And back then, we were student entrepreneurs
and there weren't any ecosystems for start-ups back then.
Alright, show us the next product.
Um, this is Whale Click.
Our wristband has two variants actually.
This is the first variant.
Usually, smartwatches have an SOS button
and one has to look for it.
In panic situations,
it gets a little difficult to find and press it.
This only has SOS.
The complete body can be treated as a button.
Every time this is activated, the haptic will give you feedback
for 30 seconds continuously.
- If it's false... - And it can be cancelled.
Yes.
- Sir... - I'll take this. Give the others...
- Be careful. - Yes.
I'll try the gloves.
- Careful. - Vineeta, I'll guide you.
Yes, tell me.
- Let me see. - Yes.
Then here is the panic switch, okay?
[siren wailing]
Leave it. Nothing will happen.
Both happen simultaneously. The sound and shock.
- It's together. - You can do it.
- Now... - So, hang on.
So, I have to bring this part in contact with their hand.
- Any part of the body. - And it has to touch the skin.
- Anywhere, ma'am. - No, anywhere.
- Even on the dress. - On the clothes too?
- Yes, ma'am. - Yes.
Got it.
Coming to this watch.
35% of people in the elder care market have falls.
- So, they wear a pendant. - Hmm.
- There are many gadgets where the SOS message is sent... - Yes.
- That they have fallen. - Yes.
- So what you've made in the form of a watch is very common. - No, ma'am...
- Our watches have SOS. - Yes,
but why don't they make it easy?
I have a gripe with all the watch companies.
In future, we should have
a big button which is very easy to press
- no matter who's pressing it. - Ma'am...
- Will you be integrating it? - It's there in our variant.
It is in yours, but why not in watches?
- If I'm wearing a watch... - Yes.
I want it built-in.
I don't want to wear multiple wearables.
Our wristband has another variant which is voice-activated.
Our actual plan is to integrate it.
- [indistinct dialogue] - Yes.
Vineeta, please come here.
Ma'am, this is voice-activated.
I'll say it in a sentence so that no one else finds out.
So, I'll say, "Wake up, Whale."
"Oh, I forgot to feed Bruno."
- You'll feel the haptic. - Hmm.
Within 30 seconds of activation, you'll get a dummy call
and if you don't,
your location would've been immediately shared
and the SOS triggered.
Your second wearable
which is the watch,
its use case will be low
because people like us are working on it.
Only a button needs to be added later on, right?
- We'll add the SOS button in due course. - Okay.
Voice activation and GPS are already there.
If you want to work on the glove part,
you can double down on that.
It's still in the prototype phase.
Have you raised funding?
How will you work on this?
What's the plan? Do you have a grant?
Do you have anything?
We had savings of almost Rs. 40 lakhs.
- We'd invested in the patents earlier. - Okay.
We invested the entire Rs. 40 lakhs in this
and we have Rs. 20 lakhs left to make this a functioning product
- Okay. - We want to make this sleek and even more compact.
- Are there issues in the manufacturing? - Yes.
This is just an idea with a patent for now
- ready to go into execution, correct? - Correct.
- Okay. So, you don't have any investors. - No.
- You haven't raised funds. - Bootstrapped.
Vineeta, do you guys think this is useful and worth wearing?
If I have to run in the dark, I'll be really scared.
I'm comfortable with something like this
that can be worn to give a shock to someone.
You're comfortable with it.
I personally don't feel
that your product in its current form
is the right solution.
Your intent might be right,
but this is not innovation according to me.
All these use cases are there.
Just by putting buttons in a different place
and getting a process patent,
it's not really innovation.
So, I'm not convinced yet
- on the innovation part. - Sure, ma'am.
And for that reason, I'm out.
No worries, ma'am. Thank you.
Sharad and Nandita!
I feel it's not clear yet
what its successful form factor would be.
The purpose is good.
You'll need to reimagine it
in terms of a form factor that is convenient
- as well as effective. - Yes.
And is not a burden
- where you've to wear multiple devices. - Right.
Making its adoption really high.
If there is adoption, only then a lot of people will use it
and feel safe.
Your objective will be solved then.
I'm out for today
but I really do wish you're very successful.
- Thank you so much, sir. - All the best.
Thank you, sir.
What approvals would be needed from the government?
Is it allowed to make devices that give continuous shocks?
Sir, stun guns below 1,000 volts
- are already available. - This is 4,000 volts.
Sir, the voltage can be tweaked.
We've set it at 4,000 volts
- so that you can see the spark. - Right.
But otherwise, if you give someone a shock of 1,000 volts
even if the spark isn't visible,
they'll still feel it.
Are you saying this can be sold on Amazon?
There are people who are selling stun guns in India.
- Some products need work as far as I think. - Yes.
Completely agree, sir.
The patents are good.
If you need some support...
We invest crores here, so Rs. 30 lakhs for 3% equity...
We can... I can help you by guiding you on manufacturing.
So, that's it. Rs. 30 lakhs for 3% equity.
- Let me know. - Okay.
The condition is
- subject to government approvals on this one. - Sure, sir.
which smartwatches these days don't offer.
Do you want to use your patent
by collaborating with existing smartwatch companies
to integrate it?
- Yes. - We're open to that.
Subject to your clearance,
- I would love to join Aman's offer. - Okay.
And I'm sure Aman can help you with the wearables.
And whatever help you need from me
in building a better product,
I'd be happy to help.
Mine is a joint offer with Aman.
Rs. 30 lakhs for 3% equity.
We'll take 1.5% each.
I'd have made you an offer
but I feel that Aman's offer is better for you
and he'll also be able to help you.
I wish you all the very best.
I hope you do well and grow your business.
Aman and Vineeta, you have a deal.
- If we don't help you, who will? - Yes, sir.
- Okay, great job. - Thank you so much, ma'am.
Vineeta could very much relate to our product.
I think their guidance and support
will prove very important for us to build the product
as per the user case scenario.
I think we got a great deal from the appropriate Sharks.
[up-tempo music playing]
Welcome to ACKO Change Makers where we really welcome change.
You can see a beautiful portrayal of it on our Change Makers wall.
And today's Change Makers are Nandita and Sharad.
- How are you? - Well.
Well! How was your experience?
- Very good. - Fantastic.
Seriously speaking, what you're doing is very important.
Sadly, women's safety is still a big issue in our country.
I wish to ask you a question on behalf of our audience.
What changes could they bring about in their daily lives
to ensure women's safety and empower women?
In my opinion,
no girl should take safety lightly.
The first thing is to be prepared always.
If someone tries to do something,
you must defend yourself.
Learn self-defence techniques.
I think this is one way for women to empower themselves,
their sisters and daughters
and men as well.
Thank you so much for the change you're bringing about.
You're bringing about a great change
just as ACKO, with its revolutionary offerings,
is changing the insurance landscape.
Now, with ACKO car insurance,
get claim repairs done at your preferred GST-registered garage
and get a cash settlement.
Also, filing a claim is very easy because it's all online.
We wish to appreciate your change
and for your time on the show,
Shark Tank and ACKO wish to give you a gift.
[camera shutter clicking]
[theme music concludes]
Hey, what's up?
What do I tell you?
Tell me. Did something happen?
How do I tell you in front of everyone?
That too on national TV!
Come on, say it. They won't eat you.
They're not fishes, these Sharks have money.
[laughter]
Okay, I'll try.
Shi... Shilajit!
What's the problem?
Hey! You know people's perception of shilajit!
For thousands of years,
shilajit has been recognised by Indian Ayurveda
for its health benefits.
People should openly talk about it.
But people are still embarrassed to consume shilajit.
Women think it is for men
and men think it is only to improve sexual performance.
How then will shilajit's real benefits come to light?
We will bring them to light with Zingavita Ayurveda.
Hello, Sharks. I'm Sachin.
went on a drive and arrived directly in the Tank
with our brand Zingavita
through which we make your daily life healthier
that contains essential trace minerals
and organic compounds
such as fulvic acid
Moreover, shilajit also gave a boost to our business at the right time.
You must be wondering
what is unique about our shilajit in such a busy space.
Exactly.
Sharks, our vision is to break the taboo around shilajit
so that no one is hesitant to keep shilajit in their homes
or on their dining tables.
To realise this vision, Sharks,
we want your guidance, expertise
and your Rs. 1 crore investment for 1.25% equity
in our company
with Zingavita Ayurveda?
[music playing]
- What do I take? - One of this.
Our top seller is the Shilajit Effervescent Tablets.
No, this is resin. Ritesh, the honey is there.
- This tiny packet costs Rs. 1,600. - Exactly!
The MRP is Rs. 1,600.
Do we have to consume one spoon?
- Yes. - Yes, one spoon.
- This will last a long time. - [indistinct].
All your products contain shilajit.
Shilajit! Shilajit...
You can try Shilajit Honey.
- Open it... - I don't need it. [smirks]
- [Sharks laugh] - Sir, this...
Aman, we want to change this perception.
[laughs]
There's so much shilajit in the world now
which wasn't the case until yesterday.
Why is everyone selling shilajit all of a sudden?
The demand for it started increasing in the US
and people in India started becoming aware.
It increased in the US first!
Yes, it started increasing in the US a little earlier.
The awareness in India rose because the following claims rose.
If you want to build your strength, stamina and vitality
and gain muscle,
taking shilajit will help you gain muscle faster.
Is the study on muscle strength new or was it known for years?
Because sexual...
We've heard, "Consume shilajit if you have erectile dysfunction."
Let's take a step back. What is shilajit?
It's a plant concentrate found in the mountains
which decomposes over the years and settles on the rocks.
Those rocks are brought down from a height of 18,000 feet.
Then it undergoes a purification process
in which 'triphala' is used.
Then, a resin and gooey substance is formed
which is edible shilajit.
What does shilajit contain?
Fulvic acid and trace minerals.
What fulvic acid does is...
It's called a joining carrier.
When it enters your body,
it will form a compound with your cells
in turn boosting your metabolism.
If my metabolism is being boosted and energy production is better,
whether I position it for sexual health or muscle gain
is open to interpretation.
If I consume 300-400 mg of shilajit, even women,
it will just help boost their metabolism and that's it.
To effectively boost metabolism,
what is the RDA for shilajit as recommended by clinical studies?
This contains 100 mg.
Coffee has 125 mg.
This says 400 mg.
They all have different quantities.
People consume coffee once or two to three times a day.
That's why we've limited the quantity of shilajit to 125 gm.
Now, the Honey Stick, we thought you might consume it once in the morning
and not very often in one day.
So, we decided on 400 mg.
Did you run any trials?
Did you run any trials of your own with doctors?
We've not done any yet,
Once the product-market fit...
Usually, trials should be done before scaling.
Namita, if we are doubtful of this category and product
that this is a new ingredient which is not established,
- then we could think about it. - You thought this was selling,
let's sell it too.
[solemn music playing]
In your pitch, you said
- that shilajit boosted your business. - Right.
- So... - Aman, let me give you this year's numbers.
In April, we did Rs. 50 lakhs.
In May, we did Rs. 65 lakhs.
In June, we did Rs. 70 lakhs.
In July, we did Rs. 1.1 crores.
In August, we did Rs. 1.8 crores.
In September, we did Rs. 1.9 crores.
Now, we're at around Rs. 1.95 crores in October.
Tell us your revenue while you're at it.
In 2021-22, we did Rs. 1.9 crores.
In 2022-23, we did Rs. 6 crores.
In 2023-24, we did Rs. 8 crores.
- We've done Rs. 8.6 crores until now. - Nice.
As per our current estimation,
we will close this year at Rs. 19 crores.
our estimated burn on Rs. 19 crores will be Rs. 5.5 crores.
Let's take the revenue as Rs. 100.
Our cost of goods sold is Rs. 32.
68% is our gross margin.
Our commissions and logistics cost is about 28%.
So, the CM1 is 40%.
Our marketing at a blended level is 50%.
So, our CM2 is -10%.
And our overhead cost is about 15%.
So, we're at an EBITDA burn of about 25%.
The unit economics we just saw
are also evolving.
Our RTOs are high.
- Our returns are high. - Right.
What percent are your returns?
30-35% returns.
Is this RTO?
Yes, RTOs when the customer refused to accept the order.
- 35% RTO for a D2C brand! - 30-35%!
Crazy!
This is the highest I've ever heard.
You must've called 100 customers to ask them why they returned it.
What was the top reason?
Many times, the customers say
that they ordered it for their friends
which I fail to understand...
- They must have been embarrassed. - Must be embarrassing.
But we've observed
that our RTOs are reducing month on month,
first point.
Second, when we scaled,
we had just one fulfilment centre.
If I compare Delhi to the South or the rest of India,
improving the delivery timelines
will also give us incremental impact,
point number one.
Second, as the taboo around shilajit is breaking...
Coming to your first question about how shilajit sales have grown.
It's a process.
The market is seeing a correction
- and returns are lowering. - We don't believe the second one
because thousands of brands come everyday with one fulfilment centre.
What was your marketing spend in October?
Good. It's going great.
We'll go big with shilajit.
[chuckles]
You will, you have it in you.
Aman, one...
- Can I say one thing before you speak? - Yo.
- Our revenue comes through four channels. - Yo.
We haven't explored US yet.
- As we mentioned, the market there has grown exponentially. - US.
I agree.
There's no control over your burn.
There's no control on the RTO.
And you need to know that to build a business.
I understand if there are loss-making businesses in tech
and crowded categories,
but not in a new category like shilajit.
Aman, I have one thing to say.
My repeat rate is only 20-25% and it is increasing
because the people who consume it do so for long periods.
- This business will be profitable. - Yes.
We're aware of the past profitability.
I understand, but you are not profitable right now.
Secondly, the valuation.
A valuation of Rs. 80 crores.
No way!
If I really want to invest,
wouldn't I rather put in Rs 1-2 crores and start a new brand?
- Aman, this... - I'm asking you. Can I do it?
You can do anything you want.
You say, "We'll make it too." So, we will too.
[laughs] Correct.
I don't want to invest Rs. 1 crore in this, unfortunately.
Aman, I had a point. One point.
He's out. Talk to the rest of us.
- I'm out, unfortunately. - Tell us your point.
I'm out.
I spoke about trials.
You know, RTO of course is very high.
Third is the milligrams.
If you focus on the fundamentals, evidence and trials
and create some data of your own,
this can explode.
Namita, I had two points.
Let's talk about clinical trials.
With our third-party contract manufacturer
who manufactures our products,
we do a very unique thing to manage quality control.
We source the raw material on our own.
We get our own shilajit,
give it to the third-party contract manufacturer
and he'll make it.
- And... - No, it's fine. Let's...
See, for today, I'm out because that's not a trial.
- You know which trials I was implying. - No...
- Namita, exactly. - I'm talking about with actual patients
and with proper Ayush doctors.
So, for that reason, today, I'm out.
My structural concern,
because of which I'm considering being out of this deal...
You're considering it.
In order for a structural impact,
either you should've gotten positive clinical feedback
or there has been a reasonable history
where you've observed over two-three years
that your repeat pattern was good.
If the consumer likes it, great. They're akin to God.
Because I'm unable to make up my mind
if this is a fad or a structural business opportunity,
I'm out for that reason.
However, over the next six months to a year,
if your repeat rate improves,
then hopefully, we'll get a chance to talk again.
I wish you both all the very best.
Thank you, Ritesh.
Your marketing cost
is increasing not just as a number but also as a percentage.
From April to October,
you went from Rs. 50 lakhs to Rs. 2 crores,
which is incredible, four times,
but even the marketing cost went from 30% to 50%.
So, I think
this -CM2 of 10%
on which you're operating
simply put in very raw terms means
that the more units you sell the more loss you're making.
So, every customer...
Every extra box that you sell
adds to your company's loss.
So, right now,
I don't find this investment quite right.
For that reason, I'm out but wish you the best.
I feel you should go back to the drawing board
and perhaps, reduce your SKUs.
And don't follow the crowd
and start running after high sales.
It's fine even if it's not a lot.
First, try to identify
where the island of profitability of your business lies.
It has to be somewhere in your business
that is around Rs. 10 crores today.
There ought to be an island of profitability here
where the contribution margin is positive.
Perhaps, an SKU, a geography, a channel... Anywhere.
My recommendation would be
to cut your islands of losses
where the contribution margin is negative.
Either fix them or shut them in a time-bound manner.
That's what I did in my business
because of which we got through our most difficult phase.
However, if you are so attached
and want to scale up
even if the margins are negative,
then sooner or later, you'll run into a wall.
I am out for today but wish you all the best.
Many best wishes.
- Thank you. - Leave with a smile.
- Thank you. - Enjoy.
[solemn music playing]
- Hello, Dheeraj and Sachin. - Hello.
- How are you? - Great.
- How did it go inside? - It was fun.
They asked good questions. We liked the interaction.
The sales talk took place inside.
- Let's keep it chill here. - Sure.
Done, sir.
Product. Great!
Customer service. Next?
- Quality assurance. - Quality assurance.
Okay. Interesting.
- At Two pair? - Marketing.
At One pair?
Research and development.
R&D at High card.
This is very interesting. You chose marketing at One pair.
Rank four. Why?
- The product comes first. - Yes.
The product is the most important.
- That's what the customers buy. - Right.
- The second is customer service. The customer is akin to God. - Okay.
When will the customer be happy? When they get quality assurance.
- with a total prize pool of Rs. 100 crores. - Thank you.
Go there and apply your winning strategy.
You too go download the PokerBaazi app,
use your strategy and place a winning hand.
Go and download the PokerBaazi app now.
[theme music playing]
[theme music concludes]
Sharks, has a stranger ever come up to you
and complimented your bag?
"Where did you buy this? Which brand is it?"
Have you been asked that?
This happens to our customers every day.
It's because my team members and I made this with our hands.
And these girls made me a businessman.
[all chuckle]
Thank you.
Sharks, I am Usha Borda.
I am Bansari Borda.
We are from Mumbai.
The story of Dhaaga Life began here from a single thread.
Dhaaga Life is a lifestyle brand
that makes nature-inspired
unique and handcrafted bags and accessories.
and on the other hand, high-end designer labels
that are really expensive.
Our Instagram community has grown to over 70,000 followers.
We've fulfilled over 1.5 lakh orders on B2B and D2C.
Sharks, we want to fill the lives of our customers with beauty,
one stitch at a time.
And we want people to pause and appreciate art.
So, our ask is Rs. 75 lakhs for 5% equity.
Come on, Sharks.
[laughter]
Good.
Bansuri, tell us a little about yourself.
I was born and brought up in Mumbai.
I went to school and college here.
Then I went to MIT ID in Pune to study design.
I was in the marketing team, retail and events.
At Ishita's insistence, I left Bengaluru and came to Surat.
Okay. Ishita, what about you?
I did my eleventh and twelfth grade in Arts at Mithibai College
and then I went to study at Rachana Sansad in Prabhadevi.
even when I was in college
and we'd conduct exhibitions all over India.
- Which year was this? - 2014.
Gram Dakshinamurti Ambla is my school's name.
It's near Bhavnagar.
Are you in Surat at present?
- Yes. - Okay.
Ma'am, can we see your products?
- Sure. - Yes.
- That's for you, both the bags. - This one?
- Both the bags? Thank you. - Yes.
- This is for you. - Nice.
Oh, I love this one. Beautiful.
Oh, this is pure jute!
It's called 'sutli' in Hindi.
Stunning. It's very pretty!
Oh! It says Priya! Wow!
This is incredible.
Oh, how sweet!
Everything is absolutely handcrafted.
- All of it? - Yes.
What material is this?
That is juco which is jute and cotton.
One can do two embroideries in one day.
Now, people will really stop and ask me,
"Where did you buy the bag from?"
- Yes! - [laughter]
You've used a bit of suede here
- and tussar silk inside. - Yes.
It's a combination of these materials.
Sometimes, people use cheap material for the insides.
Your material is good. It's nice.
I won't say you gave it for free. I'll say I bought it.
- Yes, fine. - [laughter]
Just pay up. Make the payment.
- Oh, how about that? - [all laugh]
- Auntie! - You're a typical Gujarati.
You're business savvy.
Sorry...
What is its price?
That's for Rs. 5,000.
- And this one? - This bag?
This is Rs. 6,200 without customisation
When did you turn this into a proper business?
The first product mom made was this Half Moon Bag using jute
only with a needle and thread.
That's why we named our brand Dhaaga.
We feel we've seen this as a business in the last two years.
Before that, the name of our brand was Dhaaga Handcrafts
and we didn't have a website.
Our website was launched in August 2022.
that directly...
- They're now our direct customers. Yes. - You save money.
So, do you make only handbags?
No, we also make accessories
that include bracelets, necklaces, earrings,
key charms and other products.
89% is handbags
- and 11% is accessories. - Okay.
- So, you're mainly a handbag brand now. - Yes.
At what frequency do you launch new products?
Around three months.
- How many new products do you launch? - Three products.
- That is the bestseller. - It's very cool.
That gave us a revenue of Rs. 1.55 crores.
In one and a half years. Yeah.
The 12 people in the office are on a salary basis
and those who work from home are paid on a piece basis.
How much do you pay them per bag?
Like, tell me about that garden bag.
Around 500 for the embroidery.
This is a bracelet. This is the embroidery.
They are making the tassels.
- Is this the office? - Yes.
How do you make arrangements
with people who work part-time?
There is an admin boy in our office
who goes to the houses of all the housewives and takes the stuff
and gives it to them and also takes back
the stuff which is ready. We maintain a diary
which both of us keep for calculations.
To whom you gave the raw material
and whether you got the finished product from them.
Yes, we provide everything...
- You provide it all? - even needles, cutter and thread.
that are trying to make similar products?
The one brand I can remember is Fizzy Goblet.
That brand also used to exhibit with us.
And they also have a store in Bandra today.
Do you consider Zouk a competition?
Not really, because I think the customer is pretty different.
The Zouk bags are digitally printed.
Our customers are a little conscious...
Environmentally conscious.
About what material we use and the detailing.
We also have customers who will save and buy a customised bag
for their wife or girlfriend on a special occasion
and those who buy LV bags will buy them
as a part of a collection because they like the beauty of the design.
What's your starting price point?
- From 1700... - For a handbag?
- Yeah. - And up to how much?
- 8000. - Which is the bag worth 8000?
The blue one if you customise it...
It looks like the one Vineeta has.
- But that is the mini one. - That's small.
That's the bigger size.
When you scale it, you know,
let's hope you'll make it a big business.
And hand embroidery takes time. So how will you manage that?
We also felt that at some point, it is not scalable.
But when we posted our first bag on Instagram
and the response we got,
people were waiting for 40 days,
which happens for sneakers, the same was happening for the bag.
We took manual orders and people paid in advance for this bag
because it was a special bag.
We then knew that our design was working.
At that time, women were working at a slower pace.
So we went to the artisans and asked them
to make these bags for us and they did it
and we reduced the 40 days TAT to 5 days.
If we can bring such a difference with 40 people,
we can cater to that as well when we are 400.
How did you acquire 70,000 followers on your Instagram? That's amazing.
Actually, 2-3 of our reels went viral.
- Can we see which is the most viral reel among them? - Yeah, we...
I'm sure it has the making process.
- It went viral? - Yes.
And that is me doing the finishing of the bag.
43,745 likes and...
- How many views? - 1.8 million.
Wow!
Will you please tell me what you were doing with the fire?
The jute that we use is used in its raw form,
- so to finish off its threads... - For finishing.
- It was mom's idea that we should do this. - Amazing!
- Do you come up with these ideas yourself, ma'am? - Yes.
Which one of these is it?
[upbeat music]
The one you gave me is so beautiful.
That is Swarovski crystals.
Okay, let's talk about the numbers.
When we registered Dhaaga Life in 2022,
we did not make any sales from there.
Tell us about the last year.
- Last year, we did 1 crore and 70 lakhs. - Okay.
And this year, we have already done 1.2 crores,
and we are set to do 2.6 crores.
What were your B2B orders in the past years?
We did a B2B order with Lakme India in the first year.
They said that they needed 40,000 pieces for the GWP campaign.
This was a huge opportunity for Dhaaga.
- Because... - As such was our collaboration.
They said Lakme was going to be a Dhaaga and we design the bags.
So we took this and we fulfilled it very nicely.
- So you delivered all 40,000? - Yeah, on time!
Wow!
After this, they were so happy next year
that we got a new order of 32,000 pieces from Lakme.
What were the values of 40,000 and 32,000?
The one which was 40,000,
then for the first time, I saw a PO for Dhaaga above 1 crore.
What was your total sale?
That time, one crore 41 lakhs.
Without B2B, total sales were just 40 lakhs.
Yes, 41 lakhs.
The sales reported this time don't include B2B.
No, absolutely no B2B.
Tell us how many bags were sold in B2B.
Forty, thirty-two, and forty.
That makes eighty plus thirty-two.
If out of one and a half lakh,
one lakh ten thousand went into B2B,
then in three years,
- only 40,000 bags have gone to individual consumers. - Right.
Your business makes it
for 1300 and sells it for 6500. That's a highly profitable business.
Then why is the profit margin just five per cent?
I think it's because B2B orders
have very low margins.
- Because it's almost cost-plus. - Exactly.
- They compare ten to twelve brands before deciding. - Right.
Yes.
Mrs Usha, it was a pleasure meeting you and your family.
Thank you.
Thanks for the bag. I really liked the bag.
I see just one issue with this business.
recently started personalisation on headphones,
and it's doing very well.
But our product is made where the personalisation factory is.
It gets packed and shipped from there.
When doing one-by-one personalisation,
scalability becomes an issue.
Building a large-scale business gets a little tough.
when there's so much manual work involved.
Unfortunately, I'm out for now.
Thank you.
Hearing praise about your homeland, how does it feel?
I don't want to get carried away.
Don't want to get carried away.
You three represent the power of Surat's women.
And it's brilliant, the designs are excellent.
But I agree with Aman.
Whenever there's hand embroidery
or customisation involved, scaling it becomes difficult.
You don't just create an investible business.
If investors like us will come, there will be immense pressure.
Don't rush into taking
- an investment at this point. - Okay.
At some point, if you pivot from customisation and hand embroidery
and explore something different,
we can talk. But for today, I'm out.
Your B2B selling so far
has been good. It's brought some momentum to the business.
But it hasn't built real value yet.
I feel you need to rethink your pricing strategy.
The product is expensive,
but that doesn't mean lowering the price will reduce the brand's value.
- It's still early days. - Right.
- The brand is just beginning to take shape. - Yes.
You have margins in this business.
You can make the product more accessible.
But today, it's not clear to me
at what price-to-performance point
this brand will take off for the end consumer.
And for that reason, I'm out.
Thank you.
Right now, 70 per cent of your business
has been B2B,
where you've supplied a single business for promotions.
Figuring out whether
young women today will buy embroidered bags
for 6,000 rupees is tough.
Which is why, at this moment,
it's not a compounding business.
I don't see it as scalable right now.
But I'd love
to continue sourcing SUGAR gifts with purchases from you
if you keep that part
of the business going.
- So you can reach out to us. - Yes, we are open to that.
I'll give you my contact,
so please reach out to me.
I'm a big believer in slow fashion.
Your proposition which is environmentally sensitive
while also delivering great design
is truly differentiated.
People are appreciating slow fashion.
Your D2C business
is exciting, but it's still very early.
You're saying 80 per cent of your revenue is your strength.
But in the last six to nine months, it's only been the starting point.
I believe if you wait another year
and consistently deliver on your D2C efforts,
not just me but all the sharks
and even the broader ecosystem will show significantly more interest.
Because it's still in the early stage,
I'll have to pass on this deal today.
But as Vineeta also mentioned,
I will definitely become a B2B buyer of your products
in the next three to six months.
Thank you so much.
- Thank you. Bye! - Good luck!
- Thank you! - Bye!
'Shark Tank India, co-presented by Acko Insurance,'
'PokerBaazi, and Swiggy Instamart.'
'Co-powered by Adani and Jaquar Bathroom Light.'
'Partners Rayzon Solar, ICICI Direct, and Lenskart.'
Today's question comes from 42-year-old Sana Ansari
from Secunderabad.
She says, 'Mr Ritesh, you have a lovely smile,' which I agree with.
when they believe that by combining forces,
one plus one can become three.
For example, many may not know
- that Google didn't create YouTube, it acquired it. - Oh!
Because Google already had a massive user base
searching for text-based content.
But they realised that people wouldn't just search for text,
- they would want to search for videos too. - Yes.
So, Google bought YouTube for just one billion dollars.
Today, I estimate YouTube alone
to be worth around 400 to 500 billion dollars
from just one billion dollars.
- Or take Instagram, which Facebook acquired. - Yes.
Initially, Facebook was only a desktop platform.
But today, our generation mostly uses Instagram.
See you in the next Ask the Shark
with a new question and a new shark.