In the bustling metropolis of Mumbai, Ayush Mahesh Verma had a vision. He saw a problem that was plaguing countless women across the city, and he knew he had the solution. As a computer science engineering graduate, Ayush was well-versed in problem-solving, but this was a challenge that was particularly close to his heart. He knew that hair care was an issue that affected not just women's appearance, but also their confidence and self-esteem. So, he decided to do something about it and founded Ravel - a brand that makes customized hair care products based on the type of hair, goal, and more.
Ravel's mission was simple - to provide a personalized hair care solution for every woman. Ayush and his team recognized that every individual's hair is different and requires different care. From oily hair to frizzy hair, every strand deserved its specialized treatment. That's where Ravel comes in. Their products are sulfate and paraben-free, and they are designed to cater to the unique needs of each customer.
Since its launch in January 2021, Ravel has served over 2 lakh customers, and the response has been overwhelming. Women across the city have praised the brand for its ability to deliver a customized hair care experience like no other. But, like all startups, Ravel needed more capital to continue growing and expanding its reach. That's when Ayush decided to take his pitch to the Sharks on Shark Tank India. His ask was 75 lakhs for 2.5% equity in the company, and he was confident that he had a winning idea that would catch the Sharks' attention.
Ayush started by explaining the problem that Ravel was solving. He spoke about the struggles that women face when trying to find the right hair care products and how Ravel was making it easier for them. He then went on to talk about the success that Ravel had achieved in such a short time. The current annualized revenue run rate was 5 crore rupees, and last month's sales were 40 lakhs rupees. From January 2021 to March 2022, the sales were 1.55 cr, and in FY 22-23, the sales were 1.4 cr rupees. The GMV was 40 lakhs rupees, and net sales were 35 lakhs rupees. Ayush even threw in some impressive numbers about the repeat cohort - 25% for 3 months and 35% for 6 months.
Anupam was the first to make an offer. He offered 75 lakhs for 10% equity in the company, but with a condition that Ravel would generate 7.5 lakhs rupees monthly profit in two months. Ayush was taken aback by the condition, but he was willing to negotiate. He countered with an offer of 75 lakhs for 3.5% equity in the company, but the Sharks were not impressed. They felt that Ayush was undervaluing his company and asked for a higher equity stake.
Ayush then countered with an offer of 75 lakhs for 7.5% equity in the company. The Sharks were intrigued, but they still felt that Ravel was worth more. After much discussion, they finally agreed on a deal - 75 lakhs for 10% equity at a valuation of 7 crores.
In conclusion, Ayush Mahesh Verma's vision for Ravel impressed the Sharks of Shark Tank India. Despite initial negotiations, Ayush was able to secure a deal of 75 lakhs for 10% equity at a valuation of 7. With Ravel's success in serving over 2 lakh customers and achieving impressive sales and repeat customer numbers, the Sharks saw potential in the brand's future growth and were eager to invest. Ayush's determination and passion for solving a problem close to his heart have led him to success, and Ravel is poised to continue making a positive impact on women's hair care needs.
Here are some learnings for businesses that can help them grow:
- Solve a real problem: One of the key reasons why Ravel impressed the Sharks was because they were solving a real problem that affected countless women. When businesses can identify a genuine problem and provide a solution that is effective and unique, it can help them stand out and attract customers.
- Focus on personalization: Ravel's success was largely due to its focus on personalization. By recognizing that each customer's hair is unique and requires specialized care, they were able to provide a more personalized and tailored experience. Businesses can take a page from Ravel's book by finding ways to personalize their products or services to better meet the needs of their customers.
- Build a strong brand: A strong brand can help businesses differentiate themselves from the competition and build customer loyalty. Ravel's branding was clean, and modern, and communicated its mission effectively. Businesses should invest in building a strong brand that resonates with their target audience and represents their values and mission.
- Be prepared to negotiate: Negotiation is a critical part of business, especially when seeking investments or partnerships. Ayush's negotiations with the Sharks on Shark Tank India demonstrate the importance of being prepared to negotiate and having a clear understanding of your business's value.
- Leverage data and analytics: Ravel's success was also due in part to its use of data and analytics. They tracked sales, repeat customers, and other metrics that helped them make informed decisions about their business strategy. Businesses can use data and analytics to gain insights into customer behavior, market trends, and other factors that can help them make more informed decisions and grow their business.