In today’s episode of Shark Tank India following ideas were placed before the sharks tank india judges.
1. Raising Superstars Enterprises Private Limited
- Company valuation: Rs 50 Crores
- Offer: 1 Crore for 2% Equity
- Co-founders: Raghav Himatsingka , Stanford Graduate, 2nd time entrepreneur, and Shraddha Himatsingka
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About the products of Raising Superstars
It features Mobile App and Prodigy Baby. It provides tools to the parents who can use them to develop demonstrable abilities of intelligence, languages, reading, memory, math, music, personality, etc. in five minutes of daily fun and without any screen time or pressure. Once a user enrolls the app, it provides daily activities and exercises using short videos as well as expert guidance and support.
- Physical Material
Flash cards and Booster Materials are delivered to the home. In a span of year, they sold their product to more than 50,000 families. They demonstrated how their products benefit the kids through one of their product users.
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Story Behind Raising Superstars
Raghav and Shraddha have a child of their own. He started crawling at 3 months and walking at 8 months. This was noticed by other parents and then Shraddha started offline consultation with the parents. During the pandemic, they lost their earlier business and with the growing demand of parents they started to take it online.
- Initial Investment: 20,000 INR
- Target Customers: Parents with children between the age of 0-3 years.
When Aman asked why the age is from 0 instead of 1-½ years, when they actually start to understand. Raghav explained how the 1 billion neurons align to form a link from the stimulus they receive that helps in around 90% of brain development till the age of three. The brain in order to remove the inefficiencies tries to break the connection between neurons. This age provides a window of opportunity where when given the right stimulus will help strengthen the links and not cut off.
- Product Cost:
4 Programs: 500 INR for 1 week, 7000 INR for 3 months, 25000 INR for 6 months, 39000 INR for 1 year.
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Revenue of Raising Superstars
- Monthly Revenue: 1,10,00,000 INR
- Maximum Revenue Bearing Program: 7000 INR for 3 months.
- Gross Margin: 80%
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Shark’s Offer for Raising Superstars
Anupam stepped out citing the problem of Customer Acquisition Cost. Namita stepped out too mentioning that the principle doesn’t match with her ideology as a mother. Vineeta stepped out too as well.
Shark Ashneer offered them 1 crore with 5% equity and shark aman gupta offered them 1 crore with 4% equity as well. Later, they changed the deal
and together they offered 1 crore with 4% equity.
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Final Deal of Raising Superstars
Later, they closed the deal of 1 crore with 4% equity.
2. Torchit Electronics Private Limited
- Company valuation: 75,00,000 INR
- Offer: 75 lakhs for 1% equity
- Founder: Hunny Bhagchandani
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About the product
The product will guide the visually impaired alerting them about any obstacles coming in their path through different modes of vibration.
He demonstrated the effectiveness of the product with the help of a visually impaired person.
The product is 99.7% effective, is lab-tested and affordable compared to its competitors. The product algorithm is patterned in a specific way using SONAR Technology, based on sound.
- Market Cconsumer: 10% of 7 Cr People.
When Aman asked about their next strategy, he showed them their next product, which is still in the Research and Development phase. The product is Jyoti, a smart wearable glass for the visually impaired, which will be camera fitted and the information will be processed through mobile to the person’s ear. The product will be priced at average 10,000 INR much lower than the competitors.
- Target market: Direct customers, NGO’s (around 40%)
- Sales of Torchit:
- FY20-21:
Revenue: 1,10,00,000 INR
Profit margin: 30 lakhs - FY21-22:
Revenue: 2,60,00,000 INR
Future Orders: 1,00,000 pieces from Private Organization worth 18,60,000
Monthly Direct Customer Sales: 1,20,000 INR- 1,50,000 INR
- Distributors:
India: 30 networks worth 4,00,000 INR – 7,00,000 INR
Africa: 11 networks worth 16,00,000 INR – 20,00,000 INR
- Prior Investor:
2019
Company valuation 2 Cr, to 20Cr
Investment: Angel Investor, 50 lakhs @ 2.5% stake.
- Future Aim: Impacting 10 lakh users in 3 years
When asked by Anupam how it is different from other similar businesses, Hunny replies that they have a unique business model. Their 70% weightage is more than the 30% tax. That means the training is provided by a visually impaired person to another visually impaired person. There are over 500 physically impaired trainees all over India. The primary business model is generating sales through a distribution network.
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Shark offer for Torchit
Vineeta was not in support of the funding from the non governmental organisation and she stepped out. Namita and Aman discussed the deal privately and advised Hunny to not dilute his equity. Namita and Aman stepped out.
Anupam showed interest in the direct customer business, and offered 50,00,000 INR for 2.5% stake, and 25 lakhs debt. Ansneer stepped out as well. Hunny negotiated the offer by asking for 50,00,000 INR for 1% stake, and 25 lakhs debt. Anupam disagreed. So, there was no deal made.
Read more details on: Namita Thapar Emcure ED To Judge Shark Tank India
3. Sooduku Foods LLP La Kheer Deli
- Offer: 50 Lakhs at 7.5% Equity
- Founders: Shivang Sood, Sonia Sood, Shivikia Sood
- Brand Ambassador: Kheerstarji
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About La Kheer Deli
Based in Pune, and born out of mother’s love, the product is a Prepackaged Gourmet Kheer available at 9 different flavours, sold both in the online and offline platforms. In 4 years of time span, they were successful in selling around 400000 cups. The flavours are dry fruits, gulkand, mocha, chocolate, nuteloreo, and pataka kheer.
They started it in a small cart, on Friday, Saturday, and Sunday from 8-12. Their aim was to sell 30 units in a day. But they sold around 44 units that day. It is a standardized Product with a shelf life of 6 days. They manage the cooling system through ice boxes, they are in the Research and Development phase to take the product to a shelf life of 3 months. They bring the product from room temperature to -18°C in 3 hours and store the product at that temperature.
Vineeta argued that there is no scope of global reach even if the shelf life is extended to 3 months. Shivang then mentioned that they have pre mixes whose self life is more than 1 year.
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Sales of La Kheer Deli:
- Post pandemic: Around 6 Lakhs per month.
- Peak sales: 15 Lakhs
Regarding the sales in the modern trade, Anupam mentioned the difficulty in expansion because of the refrigeration problem in general trade and no scope of margin in the modern trade. As they don’t have a breakthrough distribution system, he asked them to focus on pre-mixes.
Ashneer and Vineeta pointed out some of the challenges that may creep up in the idea from poor distribution system to the risk involved in the quality. Ashneer suggested they break in the product through the HORECA system. And once they make their presence there then go for the brand.
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Initial Investment in La Kheer Deli: 1,00,000 INR
Shivang replied to Ashneer’s statement saying that with such a low capital it was difficult for them to go on the HORECA path. Anupam applauded the product taste but was not fascinated by the business growth strategy and the display, like the logo. He enquired about the premix turnover and whether the customer asks for the pre-mixes. Shivang informed that they are available in the market but not for sale but for their own use.
Namita asked whether they have thought about bringing in their focus solely to pre-mixes. They told that they might do it in near future
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Shark offer for La Kheer Deli
Ashneer rejected the offer. He liked the format, but he felt a lack of confidence when queried about the shelf life of the product.
Aman rejected the offer and asked them to focus on Pune itself and then expand it. Namita stepped out but showed interest and asked them to visit her if they planned to shift on to the pre-mixes in 20 flavours. Vineeta is out as well.
Anupam asked them to make it a premix distribution company and offered 50 lakhs against 25% equity. They tried to negotiate it at 50 lakhs against 15% equity. The deal was not done. Anupam asked them to reduce the variable, focus on Pune,make it a brand and change the name and brand logo as well.
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Shark Lessson of the Day
“A bootstrap company is a company where the Founder puts his own money and does not take any investment from any investor. Therefore they expand their business from the profit earned from their turnover.”