Ghar Soaps, a unique skincare brand, founded by two young entrepreneurs, Sayyam Jain and Sunny Jain, has taken the world by storm with their fusion of Ayurveda and modern technology. Their vision to combine traditional Indian knowledge with scientific advancements has brought them a lot of success, and they are now looking to take their business to the next level.
Recently, they appeared on Shark Tank India, a popular television show where entrepreneurs pitch their business ideas to potential investors, seeking funding to scale their business. The founders were seeking an investment of ₹60 lakhs for 2% equity of the company, valuing the business at ₹30 crores.
The sharks were impressed by the founders' vision and the success they had achieved so far. Peyush and Anupam were the first ones to make an offer, proposing ₹60 lakhs for 10% equity of the company, valuing the business at ₹6 crores. Aman soon followed suit, making a similar offer, and both offers were considered by the founders. After careful consideration, the founders gave a counteroffer of ₹1 crore for 5% equity of the company, valuing the business at ₹20 crores. This offer reflected the founders' confidence in their business and their willingness to negotiate a fair deal that would benefit both parties.
Aman revised his offer to ₹60 lakhs for 4% equity of the company, valuing the business at ₹15 crores, hoping to win the deal. Peyush and Anupam also revised their offer, matching Aman's offer of ₹60 lakhs for 4% equity of the company, valuing the business at ₹15 crores. After careful deliberation, the founders decided to accept Aman's offer. The final deal was closed at ₹60 lakhs for 4% equity of the company, valuing the business at ₹15 crores.
Ghar Soaps has had a great start, with projected sales of 1 crore on August 22, 80 lakhs on July 22, and 1.5 crores in the first quarter of FY 22-23. The founders have also managed to maintain a profit of ₹15 lakhs, despite spending 25% of total revenue on marketing.
Their marketing strategy has been impressive, with 70% of their marketing budget allocated to performance marketing and 30% to influencer marketing. They have also managed to generate 70% of their sales from their own website, while 30% comes from the marketplace.
The success of Ghar Soaps can be attributed to the founders' passion for their business, their willingness to learn and adapt, and their ability to combine traditional Indian knowledge with scientific advancements. The sharks recognized this potential and believed that the investment would help the founders take their business to new heights.
In conclusion, the deal between Ghar Soaps and Aman was a win-win situation for both parties. The founders received the funding they needed to scale their business, while Aman invested in a promising venture that has great potential for growth and success. It is a great example of how entrepreneurs can succeed with hard work, determination, and the support of investors who believe in their vision.
- Unique business idea can attract investors and succeed in the market: Ghar Soaps' founders combined traditional Indian knowledge with modern technology to create a unique skincare brand. This business idea attracted the attention of investors and has been successful in the market.
- Well-planned marketing strategy can boost sales: Ghar Soaps' marketing strategy was impressive, with a focus on performance marketing and influencer marketing. This strategy helped the founders generate 70% of their sales from their own website, and 30% from the marketplace.
- Negotiation skills are crucial for entrepreneurs: The founders of Ghar Soaps were able to negotiate a fair deal with the investors, reflecting their confidence in their business and willingness to negotiate.
- Investors look for potential and determination in entrepreneurs: The sharks recognized the potential of Ghar Soaps and were impressed by the founders' determination and vision. This shows that investors look for potential and determination in entrepreneurs before investing in their business.
- Consistent growth and revenue projections can attract investors: Ghar Soaps had consistent growth and revenue projections, which attracted the attention of investors. This shows that consistent growth and revenue projections can be a key factor in attracting investors.