Shark Tank India has returned with its second instalment on Sony Entertainment Television and Sony LIV. Shark Tank India Season 2 episode 11 premiered on January 16, 2023 with the title “Investing the Right Way” during the 10-11PM IST time slot. Payel Seth is the show’s creative director, while it’s been produced by Studio NEXT, with Ravikesh Vatsa as its writer.
The show is hosted by comedian Rahul Dua, and graced by six judges, better known as sharks – Anupam Mittal Founder-CEO of Shaadi.com – People Group; Aman Gupta, Co-Founder-CMO of boAt; Namita Thapar, Executive Director of Emcure Pharmaceuticals; Vineeta Singh, Co-Founder-CEO of SUGAR Cosmetics; Peyush Bansal, Founder-CEO of Lenskart.com and Amit Jain, Co-Founder-CEO of CarDekho Group and InsuranceDekho.com.
-Shark Tank India Season 2 Episode 11 Recap Contains Spoilers-
Shark Tank India Season 2 Episode 11 Recap
The first team of the day is ‘ABC Sports and Fitness Academy’, founded by Anirudh and Roshan Pole. With the onset of the COVID pandemic, the younger demographic was completely cut off from outdoor sports. To counter that hazardous impact, these founders are shifting our views of perceiving the world of sports.
With a positive outlook, their program makes kids’ playtime more organised systematic and competitive, something which regular schools have not yet tapped into. Instead of calling the kids out to to them, they conduct their trainings in housing societies and schools. 85 certified sports coached aid their training’s of basketball, Badminton, gymnastics and tennis. Some of their students have even crossed over to the national and international level of competition.
Presenting their ask of the day, in the most adorable way possible, ‘ABC Sports and Fitness Academy welcomes three of its students to make an offer of Rs. 40 lakhs for 2% equity. They put them up for a challenge with a short basketball shooting match. Each shark except Namita takes a turn to shoot the ball into the basket. The first one to shoot and score is Aman, followed by Vineeta, Peyush and Anupam miss their chances, but still win by a score of 2-0.
Having pursued engineering, both founders were cousins and converted their passion into a business, which initiated the ‘Pro-league’, which provides local players with a platform similar to the IPL-type format, further pushing the children to put in even more efforts. 5-10% of their total students make it to state and national championships, majorly in basketball and tennis.
Currently, 2500 students are enrolled in their academy, with Rs. 1000 as fee per student, which ultimately helps them garner monthly sales of Rs. 25,000. Anupam raises question about scalability, similarly Vineeta pulls out of the deal. Aman points out how their setbacks are limited at the local level, and as soon as they expand further, more unprecedented challenges will arise. He, too, pulls out of the deal due to its unknown territory.
Anupam lifts up the issue of coming together with political associations to make it a national issue, but the same needs time to produce results. On being asked by Peyush, they reveal their projected sales for the 22-23 cycle as Rs. 4.5 crores with a profit of 40%. They request Peyush to join hands with them to help them scale it. He puts forth an offer of Rs. 40 lakhs for 10% equity, since it requires a lot of groundwork.
Namita already owns a team in their pro-league setup of tournaments in Pune, and had wanted to support their cause but since Peyush had laid out an offer beforehand, she backs out and pushes for them to accept Peyush’s deal. They bring in a counter offer for 6% equity, but Peyush isn’t ready to budge and they eventually confirm it.
Next to come in is ‘Primebook’, with its founders Chitranshu Mahant, Umang Leech, Aman Verma and Pankaj Rawat, who push for the online education and the digitalisation of the domain, but with only 1 in 10 kids having the access to laptops in India, the vision falls short. Investigating the matter, they reached to a conclusion that the high prices of windows laptops, and the inaccessibility of android apps on the windows operating system are countering the much-needed approach.
Their solution to this predicament is the ‘Primebook’ line of laptops, supported by the Indian operating system – PrimeOS. 30 lakh+ downloads across 140 countries have already trickled in despite having launched it only two months ago. The ‘Primebook’ team asks for Rs. 75 lakhs for 1.5% equity.
The team size is 14, out of which 5 are developers. Anupam appreciates the vision and Chitanshu builds up on the emergence of new category of users – students. Primebook, functions as an android laptop, and fills in the gap where hasn’t auctioned efficiently. The price range for the same at the moment has been set at Rs 15000, while promising a 4G enable android laptop,. The plus points of the product are its andoid app ecosystem, price to performance ratio while sporting a 12 hours battery life with 4 GB RAm, 64 GB internal storage expandable upto 200 GB and 4G SIM connectivity.
Through Mobile Device Management (MDM), apps can be managed and can be white listed or black listed. Aman found it like any ordinary laptop, but with the speed a bit slow. Namita asks them to convince her of the advantages of an android laptop, while Vineeta talks about their upcoming competition with the JIO laptop.
Chitranshu claims that they’ve planned ahead and are ready to face it all as their strategy involves telecom partnerships in addition to raising enough capital and developing network effect.
Through affiliate partnerships, they plan on reducing the price of the product, but presently their gross margin is set at 35%. Peyush speaks up about the reliability of the hardware, and how it will be guaranteed. The parts of the product have been assembled in India, but major parts are coming from China, also where it has been stress tested. Projected sales for the quarter are 3000 laptops, which will be sold to ed-tech companies and NGO. In 2018, they raised an amount of Rs 1 crore, followed by Rs. 1 crore again in 2019 1 crore and Rs. 1.5 crores in 2021.
Last month sales were recorded at Rs. 20 lakhs, which pushes us to Aman’s offer of Rs. 75 lakhs for 4% equity, Vineeta hands in Rs. 75 lakhs for 3%, Peyush matches the same offer as Aman, and Anupam matches one with Vineeta. Namita guides them to come up with a counter offer for an all-shark deal, but Aman doesn’t accept. Namita eventually backs out since she sees pricing as a big issue.
A counter comes back for Rs. 75 lakhs for 2.5% equity from the team, Peyush brings down the stake to 3% in his offer. Further negotiations push both him and Aman to come down to 2.5%. The team tries to pull both of them together, to which Peyush pulls up the joint equity to 3%. Some confusions and commotion welcome both Aman and Anupam for Rs. 75 lakhs for 3% equity. Peyush hopes to aid them with the software, while Aman can do so for the hardware.
The last pitch of the day is from ‘Daily Dump’, founded by Poonam Bir Kasturi. The brand designs and develops composters and seeks to change the way we “waste waste”. In hopes of making good use of the kitchen waste, ‘Daily Dump’ produces compost instead of letting it all wash away with landfills. Their latest launch, Terrabite, a patented product has made composting even easier than before.
Putting the waste into the composter along with the magic powder, will reel out results in 30 days. They’ve come up with India’s first composter called Khamba. Having started in 2006, when no one saw the need for this, they created a new category of business and created a demand for it as well. With 80,000+ families using their products at the moment, they want to push for composters being an integral part of Indian households, for which the company needs Rs. 80 lakhs for 4% equity.
From the get go, Peyush calls it “one of the most impressive pitches”. Poonam ji belts out her history and other foundations like the setting up of Srishti School of Art Design and Technology in 1996, which further pushed her to implement her teachings with ‘Daily Dump’. Namita declares that she met her at Niti Ayog’s Women Entrepreneur Awards, where Poonam ji was a finalist and was applauded by the Prime Minister himself. But, now she doesn’t want any more awards, but rather money to grow out the business. Thereafter, she welcomes the co-founder, Arjun Dev, who breaks down the fundamental business model.
He brings up the different types of composters – ‘community composter’, for housing societies, and ‘home composter’ for individual houses, all sold via online channels, in addition to other accessories.
The “No.1 question” is put up by Aman as he asks about the pungent smell of composting, and Namita supports it by raising a complementary issue about educating the masses about the same. As the answer, they present the books prepared to impart better awareness on the matter. Anupam then questions why it’s an issue to let wet waste go into landfills despite it all being biodegradable. Poonam Ji explains that it generates a lot of landfill methane.
After a series of lighthearted chiding imparted by Poonam Ji to Aman and Vineeta, the sales for the year 21-22 are revealed to have been Rs. 3.75 crores, and last month’s sales were Rs. 26 lakhs. Terrabite is priced 20,000m with the Khamba design at Rs 3500 and the magic powder at Rs. 200-500.
Anupam thinks the price point cuts off the audience from reaching closer, which makes scalability an issue for their model, while Peyush recommends that the bin’s price is reduced and the rate for the powder to be increased. gross margin – 45%,
On further breaking apart the sales, 30% of the sales split is acquired by community and home composters, 50% terrabite, 15% remix powder and 5% remaining miscellaneous products. Peyush, wants them to bring in a hungry and talented team in terms of the innovation, because only Poonam ji’s mind is engrossed in it, so for now he’s out.
Vineeta, too, thinks their business doesn’t have the proof of scalability, Aman loved meeting them, but is out for now, and sets up the room for a “surprise” offer. This brings us to Namita, who believes in it to be a worthy investment since she knows the market.
Pricing and many other issues arise, but the social impact needs to be raised, so puts ahead an offer of Rs. 30 lakhs for 5% equity and 50 lakhs Debt at 10% interest. Arjun puts up a counter of Rs. 50 lakhs for 5% equity and Rs. 30 lakhs Debt at 10% interest, which again brings the ball back to Namita’s offer and she reduces her stake form 5% to 4% and they take it.
Shark Tank India Season 2 episodes will be broadcasted on Sony Entertainment Television and live-streamed on SonyLIV from Monday to Friday at 10 PM IST.
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