Shark Tank India has been a popular platform for entrepreneurs to display their innovative products and business ideas. One such remarkable episode featured a young team of founders from Patilkaki, a home-style snacks brand.
Patilkaki was founded in 2020 by two college dropouts - Vinit Govinda Patil and Darshil Anil Savla, and Vinit's mother Geeta Govinda Patil. Their mission was to create a snack brand that reminds people of the taste of home. Patilkaki offers a range of snacks like chakli, chivda, puran poli, modak, and laddu, made with no harmful ingredients and maintained with high hygiene standards.
The company sells its products through its website, patilkaki.com, and has already served 18,000 customers to date. The founders' vision is to deliver their homemade snacks to pan India and take the concept of Patilkaki to every Indian home. The best-selling product is their modak, while Puran poli and other snacks are scalable. The current shelf life of their products is 25 to 30 days, and with the introduction of nitrogen flushing, the expected shelf life will increase to 2.5 months.
In the Shark Tank India episode, the Patilkaki founders asked for funding of ₹40 lakhs for 2.5% equity at a valuation of ₹16 crores. The company had previously raised ₹7.5 lakhs at a valuation of ten crores and then ₹29 lakhs at the same valuation.
During the show, the Patilkaki founders received several offers from the Sharks. Anupam and Peyush offered ₹40 lakhs for 4% equity of the company at a valuation of ten crores, while Veenita offered ₹40 lakhs for 10% equity at a valuation of ₹4 crores. Aman gave an offer of ₹40 lakhs for 5% equity at a valuation of ₹8 crores, which he later revised to ₹40 lakhs for 4% equity.
In the end, Patilkaki accepted the offer from Anupam and Peyush, who agreed to invest ₹40 lakhs for a 4% equity stake in the company. This deal valued Patilkaki at ten crores, and the funding will help the company achieve its vision of delivering homemade snacks to every Indian home.
Patilkaki's modak has become a popular snack among customers, and the company's revenue has been steadily increasing. In FY 21 to 22, the revenue was ₹1.4 crores, while in FY 22-23 year-to-date, the revenue is ₹1.02 crores, with projected sales of around ₹3 crores this year. The company has an average selling price of ₹650, with 25% of the cost going toward production, 5% towards packaging, 15% towards additional delivery, 25% towards the gross margin, and 30% towards marketing.
Patilkaki's journey on Shark Tank India was remarkable, showcasing the entrepreneurial spirit of the young founders. The company's commitment to offering homemade snacks that maintain high standards of hygiene and quality has won them a loyal customer base. With funding from the Sharks, Patilkaki is poised to grow and achieve its vision of delivering delicious snacks to every Indian home.
There are several key learnings that businesses can take away from the story of Patilkaki on Shark Tank India:
- Focus on solving a real problem: Patilkaki founders identified a gap in the market for homemade snacks that remind people of the taste of home. By addressing this problem, they have created a loyal customer base and a unique selling proposition.
- Maintain high quality and hygiene standards: Patilkaki's commitment to using no harmful ingredients and maintaining high hygiene standards has helped them build trust with their customers.
- Leverage technology: Patilkaki's decision to sell their products through their website has enabled them to reach customers across India. By using technology to their advantage, they have been able to scale their business rapidly.
- Be open to feedback and advice: The Patilkaki founders were open to feedback and advice from the Sharks during their pitch. This willingness to listen and learn can help businesses to improve and grow.
- Focus on profitability: Patilkaki's focus on profitability is evident from their cost breakdown. Businesses should prioritize profitability and ensure that their costs are in line with their revenue.
Overall, Patilkaki's success on Shark Tank India can be attributed to their focus on solving a real problem, maintaining high quality and hygiene standards, leveraging technology, being open to feedback, and focusing on profitability. By applying these learnings, businesses can grow and succeed in their respective industries.