In this exciting episode of Shark Tank India, two young entrepreneurs, Hitesh Rathi and Shrey Kumar, presented their unique brand Aadvik, which specializes in selling products made from camel and goat milk. The sharks were intrigued by the founders' pitch and the benefits of camel milk, which includes being 10 times richer in iron and 4 times richer in vitamin C compared to cow milk. Goat milk, on the other hand, is known to be good for digestion and dengue prevention.
Aadvik started with just one product, but has now expanded to include milk powder, chocolate, ghee, and soaps. The founders shared that in the last six years, they have sold over 8 lakh litres of milk and processed 3 lakh orders, providing a significant source of income for goat and camel owners. Aadvik's highest-selling product is milk powder, while the average cost of chocolate is 100 rupees, and the price of camel milk is 500-550 rupees per litre. More than 75% of their sales come from D2C, while 25% come from B2C. Their repeat rate is 30%.
The founders asked for 60 lakhs rupees for 1.5% equity in the company at a valuation of 40 crore. The sharks were interested in investing in the unique brand, and Amit offered 15 lakhs for 1.5% equity and 45 lakhs debt at 12% interest. However, the founders countered with a proposal of 30 lakhs for 1.5% equity and 30 lakhs debt at a 12% interest rate. In the end, Amit stuck to his initial offer, and the deal was finalized.
The sharks were impressed with Aadvik's growth and success over the years, despite being completely bootstrapped. The founders shared that their monthly sales are 50 lakhs rupees per month, which is a testament to the growing demand for healthy and unique food products.
As the pitch progressed, the sharks were treated to a glass of camel and goat milk each. The founders, Hitesh Rathi from Bikaner, Punjab, and Shrey Kumar from Delhi, have a clear vision for their brand, and they want to make it a global success. The pitch highlighted the importance of healthy eating and how consumers are becoming more conscious of what they consume. Aadvik's unique products cater to this growing demand and offer consumers healthy and tasty alternatives to traditional dairy products.
The pitch also showcased the power of entrepreneurship and how two young entrepreneurs can create a successful business from scratch. Overall, the episode was an exciting showcase of the potential of entrepreneurship and how startups like Aadvik can make a significant impact on people's lives. The sharks were impressed with the founders' vision, and Amit's investment will undoubtedly help Aadvik achieve its goals and become a global success story.
Here are some learnings that can help businesses grow:
- Focus on unique selling points: Aadvik's success can be attributed to their focus on unique products made from camel and goat milk. By identifying a gap in the market and offering products that cater to consumers' growing demand for healthy and unique food products, Aadvik was able to stand out from the competition.
- Embrace D2C (Direct-to-Consumer) model: More than 75% of Aadvik's sales come from the D2C model, which has enabled them to establish a direct relationship with their customers, gather valuable feedback, and improve their products accordingly. By leveraging digital platforms and social media, businesses can reach their target audience directly and build a loyal customer base.
- Bootstrap as much as possible: Aadvik's success shows that it is possible to grow a business without external funding. Bootstrapping not only helps businesses stay lean and agile but also forces them to focus on revenue generation and profitability from an early stage.
- Be open to strategic partnerships: While Aadvik was bootstrapped, they were still open to taking on debt from investors. This shows that businesses can benefit from strategic partnerships that can provide them with the necessary capital, expertise, and resources to grow and expand.
- Prioritize customer satisfaction: Aadvik's high repeat rate of 30% can be attributed to their focus on customer satisfaction. By offering quality products and excellent customer service, businesses can build a loyal customer base and generate positive word-of-mouth publicity, which can lead to increased sales and growth.