Paradyes, India's first semi-permanent hair colour brand, created a buzz in Shark Tank Season 2. Yushika Jolly and Siddharth Raghuvanshi founded Paradyes in March 2021 to revolutionize hair colouring by providing a broader range of colours beyond browns and reds while dispelling the myths surrounding hair damage. Paradyes' products are affordable, easy-to-apply, and safe, providing a colour that lasts for 8-10 washes. The founders have over 80k followers on Instagram and have expanded their presence offline in over 35 Health & Glow stores, in online marketplaces like Amazon and Flipkart, and on the company website.
During the Shark Tank pitch, Jolly and Raghuvanshi asked for an investment of ₹65 lakh for 1% equity, valuing the company at ₹65 crore. Paradyes left the sharks impressed with a robust supply chain and on-brand marketing. It was dubbed a 'category-creation business' by Lenskart cofounder, Peyush Bansal. He started the bidding war with an offer of ₹65 lakh for 5% equity, valuing the company at ₹13 crore.
The founders received multiple lucrative offers, but they requested ₹65 lakh for 3% equity, but from Vineeta Singh and Aman Gupta. Gupta offered more than money to the founders. “We’re here to support you. In no other category has an Indian brand pushed out foreign brands from the Indian market but we (boAt) have. We know how to fight them. Now decide if you need value or valuation!” commented Gupta.
In less than five minutes, the startup’s valuation zoomed from ₹13 crore to ₹65 crore. The founders accepted the offer of ₹65 lakh for 2% equity, valuing the company at approximately ₹32.5 crore, despite having a higher offer from Bansal. Bansal remarked to the founders that it wasn’t the right choice, and Mittal doubted the founders' integrity, ultimately backing out.
Namita Thapar, executive director at Emcure Pharmaceuticals, supported the founders' decision and stated that they had every right to choose from the multiple offers available to them. Bansal stuck to his guns that Singh’s Sugar Cosmetics would prove to be competition for Paradyes.
Paradyes' unique value proposition has disrupted the traditional hair colouring industry by providing affordable, easy-to-use, safe, and versatile products that allow individuals to experiment with hair colouring without damaging their hair. The startup's partnership with industry experts will likely accelerate the brand's growth and market share as they expand into permanent and temporary hair colour categories.
- Have a unique value proposition: Paradyes' success can be attributed to its unique value proposition that disrupted the traditional hair colouring industry by providing affordable, easy-to-use, safe, and versatile products. Having a unique value proposition sets a business apart from its competitors and can attract more customers.
- Create a robust supply chain: Having a robust supply chain can ensure that a business can meet demand and provide quality products to customers. Paradyes impressed the sharks with its supply chain, which contributed to its success.
- Build a strong brand: A strong brand can help a business connect with customers, build loyalty, and create a memorable identity. Paradyes built a strong brand through its marketing efforts and social media presence, which contributed to its success.
- Be open to partnerships: Paradyes' partnership with industry experts like Vineeta Singh and Aman Gupta helped the brand accelerate its growth and expand into other categories. Being open to partnerships can bring in valuable resources and expertise that can benefit a business.
- Know your worth: Paradyes founders were confident in their product and valued their company at a fair price, despite receiving higher offers. Knowing your worth and being confident in your product can help negotiate better deals and secure partnerships that align with your business goals.