Dobiee is a candy company that was founded by two brothers from Mumbai, Arjun Mukesh Dharamshi and Mukesh Dharamshi. The company produces a variety of candies that are designed to bring back the fond memories of childhood. In a world where candy has been relegated to the backburner, Dobiee seeks to reignite the love for these sweets.
Dobiee has an extensive range of double-flavored candies, including pineapple and coconut, strawberry with lemon, and pink guava with green guava. They also produce toy candies that come with two or three toys inside the packet. Their products come in different packaging sizes, making them a hit with consumers of all ages. Dobiee has sold over nine lakh packets of candy since its inception in 2001 and is available in over 50,000 offline outlets across nine states in India.
Despite the company's success in the Indian market, the founders believe that there is a lot of potential for growth both locally and internationally. With a market size of over 20,000 crores in India alone, the sky is the limit for Dobiee's expansion. The company is already taking steps towards this goal, as they plan to start selling their products online through Amazon from next month.
During their appearance on Shark Tank, the founders asked for a funding of ₹72 lakhs in exchange for 2% equity at a valuation of 36 crores. The sharks were impressed with Dobiee's success and were eager to invest in the company. Amit was the first to give an offer of 40 lakhs for 5% equity of the company at a valuation of 8 crores and 32 lakhs debt at 11% interest rate. Anupam followed with an offer of 72 lakhs for 11% equity of the company at a valuation of 6.55 crores. The founders also made an offer of 72 lakhs for 5% equity of the company.
However, the sharks were not satisfied with the offers on the table, and they continued to negotiate. Anupam revised his offer for 72 lakhs for 9% equity, while Amit revised his offer for 72 lakhs for 7% equity. Amit and Anupam jointly gave an offer of 72 lakhs for 10% equity. The founders also revised their offer, giving 72 lakhs for 6% equity of the company.
After much negotiation, the final deal was closed with Amit for 72 lakhs at 6.5% equity of the company at the valuation of 11.07 crores. The sharks were pleased with the deal, and they saw a lot of potential for Dobiee's growth in the Indian market and beyond.
Dobiee's sales and revenue have been steadily increasing over the years, with lifetime sales of over 4 crores. The company sells its products through a network of distributors, stockists, and CNF agents. The MRP of a packet is 100 rupees, with a trade margin of 55 rupees. The price to distributors is 45 rupees, and the COGS is 22 rupees. This translates to a gross margin of 23 rupees per packet. The factory capacity utilization is 15 to 20%, leaving plenty of room for growth.
Dobiee's success story is a testament to the power of perseverance and hard work. The founders' dedication to bringing back the love for candies has paid off, and the company has become a household name in India. With the backing of the sharks, Dobiee is well-positioned to take on the global market and become the king of candy.
Here are some key learnings from Dobiee's success that can be helpful for other businesses looking to grow:
- Innovation: Dobiee's success can be attributed to its innovative product range, which combines nostalgia with new flavors and packaging. Businesses that are looking to grow can also benefit from innovating their product or service offerings to stand out in the market.
- Market Research: Dobiee's founders understood their target market well and tailored their products to meet their preferences. Conducting thorough market research can help businesses better understand their customers' needs and preferences and develop products that cater to those needs.
- Distribution: Dobiee's extensive network of distributors, stockists, and CNF agents has played a crucial role in its success. Businesses looking to grow should focus on developing a robust distribution network to reach a wider audience and increase sales.
- Strategic Partnerships: Dobiee's partnership with Amazon will help the company reach a wider audience and expand its sales channels. Businesses should also focus on developing strategic partnerships with other companies that can help them grow and expand their reach.
- Financial Management: Dobiee's founders understood the financial aspects of their business well, including the COGS, trade margins, and gross margins. Businesses should focus on developing strong financial management practices to ensure profitability and sustainability