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Wednesday, February 02, 2022

5 Captivating Shark Tank India Business Pitches

By Century Financial in 'Blog'

5 Captivating Shark Tank India Business Pitches
5 Captivating Shark Tank India Business Pitches

Shark Tank India presented by Century Financial (in Middle East Feed) continues to garner eyeballs, with each passing episode broadening the perspectives of innovative start-ups.

This discussion is in continuation of our prior article on “Analyzing 5 Intriguing Shark Tank India Deals - Series 2.”

In this article, we dive into 5 new intriguing business ideas that were pitched on the show.

This series covers the businesses focused on innovation in the healthy food category including COCOFIT, and Beyond Water.

Meanwhile, tech-focussed businesses including ‘Hammer Lifestyle,’ a consumer electronics brand, and ‘PNT Robotics,’ involved in designing smart customized AI-powered autonomous solutions, boast of Made in India appeal.

Further, ‘Bamboo India’ focussed on bamboo-based FMCG products, deserves a special mention, owing to its eco-friendly appeal.

Each of the five businesses discussed in the article appears well-positioned from a scalability perspective. The strategically selected deals throw light on five thought-provoking business ideas:

Hammer Lifestyle

Hammer Lifestyle, founded in 2019, is a D2C and an FMEG (Fast Moving Electronic Goods) company offering fast-paced lifestyle gadgets.

The devices were showcased on the show by Rohit Nandwani, Chand Bhatia, and Rohit Singla, in Episode 15.

Entrepreneur’s Ask INR 30 lakh for 3% Equity
Final Deal INR 1 Crore for 40% Equity
Final Deal Valuation (Pre Money) INR 2.5 Crore
Century’s insights

Hammer Lifestyle is primarily an Indian athleisure audio tech brand mainly driven by online sales.

The company boasts of 14 SKUs, which speaks volumes on its core competency and focus on expanding its product portfolio.

The company’s devices are designed keeping in mind the demand of the younger generation. Hammer offers wireless earbuds, wireless headphones, wireless earphones, smartwatches, and even electric toothbrushes.

The consumer electronics market is experiencing a good CAGR in the Indian market. Hammer’s attempt to capitalize on the market’s growth prospects, looks promising.

Moreover, Hammer has also spread legs across smart wireless and IoT (Internet of Things) driven devices, with the new category integration that includes smart plug and Wi-Fi remote.

However, this segment is flooded with several players making it a price-sensitive market.

We believe the Sharks appropriately estimated the valuation.

The business roadmap would be to focus on building trust amongst the youth with quality enhancements, product upgrades, innovation, and impactful digital marketing.

PNT Robotics

PNT Robotics works on advanced industrial projects powered by innovative technologies like IoT, machine learning (ML), Artificial Intelligence (AI), and Robotics.

The company involves these next-gen technologies to develop and design smart customized autonomous solutions for the hospitality industry, restaurants, etc.

Founders Pratik Nandan Tirodkar and Ashish P Patil showcased the company’s products, in Episode 15.

Entrepreneur’s Ask INR 50 lakh for 4% Equity
Final Deal INR 25 lakhs for 25% Equity + INR 25 lakhs debt
Final Deal Valuation (Pre Money) INR 1 Crore
Century’s insights

The Mumbai-based entrepreneurs demonstrated multi-functional robots, namely Ado, an AI-driven automated, interactive robot, and Coro-bot robot.

PNT Robotics is primarily involved in developing machines to automate select tasks at dedicated divisions. This includes hospital in-house supplies, mining, robot-based exploration, to mention a few.

The scalability of the business is linear, as the revenue generation appears to be directly proportional to the number of machines sold.

Scalability can be enhanced with time as the robots find applications across several industries and consequently improve revenue generation ability.

The valuation estimated by Sharks might give the impression to be on the lower side. However, the number can be justified as the robots will require dynamic upgrades to prove their commercial viability.

COCOFIT

COCOFIT offers coconut juices, dairy-free smoothies, shakes, and ice creams, at competitive and affordable prices.

COCOFIT is essentially following a franchise model. The trio of Sasi Kanth Visinigiri, Pavan Kumar Seepana & Sunil Kumar Tentu demonstrated the product portfolio and pitched the business idea to the Sharks, in Episode 15.

Entrepreneur’s Ask INR 5 for 5% Equity
Final Deal INR 5 for 5% Equity
Final Deal Valuation (Pre Money) INR 100
Century’s insights

COCOFIT believes coconuts are the richest asset of India. The company aims to take the coconut experience to a different level improvising on four key parameters -- hygiene, taste, quality, and quantity.

This coconut-inspired formulation makes COCOFIT products nutritionally better compared to other aerated drinks. This gives COCOFIT a competitive edge to create a niche market for the same.

The product portfolio consists of delicious servings across 65+ innovative variants, solely inspired by coconut and its family.

COCOFIT outlets follow the norm, “Coconut meeting fitness.” The company advocates a natural menu, that is preservative-free, and the servings do not undergo any pasteurization process.

COCOFIT aims to expand its presence across PAN India and to international markets.

Pitching the business idea on the show was more focused on having the Sharks on board for expert advice. The founders displayed their vision on the growth outlook of the business, which was backed by promising net profit numbers.

The promoters did not wish to raise funding and demanded a token of INR 5 for 5% equity. This stunt, however, made the right noise and garnered eyeballs. which might have given a good exposure, considering a marketing perspective.

The innovative product line has room to expand its reach. Word of mouth driven by consistency and improvement in the quality of the product can help build customer stickiness. Moreover, advanced digital marketing tactics will complement the focus on global expansion.

Bamboo India

Pune-based entrepreneur couple, Mrs Ashwini Shinde and Mr Yogesh Shinde launched Bamboo India in 2016. The couple pitched their business idea in Episode 16.

The business, with the mission to make the country eco-friendlier, aims to provide a simple replacement for plastic with bamboo-based products.

Entrepreneur’s Ask INR 80 lakh for 4% Equity
Final Deal INR 50 lakhs for 3.5% Equity + INR 30 lakhs debt
Final Deal Valuation (Pre Money) INR 14.3 Crore
Century’s insights

Bamboo India has developed around 22 products in addition to the flagship product — Bamboo Toothbrush.

The company leverages technology for processing the bamboo plant to deliver bamboo-based products.

The brand appears well-positioned from a demand perspective as the green vision is compelling. Moreover, the concept of packaging is innovative and appealing.

Advanced digital marketing endeavours can boost the outreach. The estimated valuation by the Sharks seems appropriate.

The inclusion of debt is a welcome move as it provides liquidity without any equity being wiped out.

Beyond Water

Beyond Water is involved in developing the liquid water enhancer aimed to enhance the taste of water. The liquid mix is formulated to be a healthier option when compared to soda and other aerated soft drinks.

Devang Singhania and Shachi Singhania, the brother-sister duo, are the founders of Beyond Water and pitched the business idea in Episode 16.

Entrepreneur’s Ask INR 75 lakh for 7% Equity
Final Deal INR 75 lakhs for 15% Equity
Final Deal Valuation (Pre Money) INR 5 Crore
Century’s insights

Beyond Water has ventured into a niche market. The company advocates that making the water tasty or adding a flavour will encourage people to fulfil the target of drinking four litres of water in one day.

The scalability of the business seems promising backed by digital marketing initiatives and improvements in packaging.

Moreover, strengthening the e-commerce logistics channel will likely make it a viable option over the traditional channel, though the company is trying both channels.

Further, the company’s plans to expand its portfolio with an alcohol enhancer mix appealed to the Sharks.

However, the pricing, being on the higher side, likely makes the product reach confined to the urbane residents with relatively high disposable income.

Against this backdrop, the Sharks’ valuation appears to be fair as they wanted to support the founders explore the comparatively lesser tapped space.

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