Shark Tank India, where entrepreneurs come to pitch their innovative products and ideas to a panel of seasoned investors, hoping to strike a deal that can take their business to the next level. We have Avimee Herbal that recently appeared on Shark Tank India, a hair and skin Care Company that blends the ancient wisdom of Ayurveda with the latest scientific research to offer a range of natural and effective products.
Avimee Herbal was founded by five enterprising individuals - Siddhant Agarwal, Ambika Agrawal, Radha Krishna Choudhary, Vinita Agrawal, and Vibhor Agarwal. While RK Choudhary hails from Bihar and holds a degree in commerce, the other founders bring diverse skills and experiences to the table. Siddhant oversees the company's operations, while Ambika, with her impressive 400,000 Instagram followers, handles the marketing. Vinita and Vibhor own a third of the company's equity, while RK Choudhary's deep interest in Ayurveda inspired him to research and create the first product - an oil to combat hair fall caused by COVID-19.
Avimee Herbal is the perfect blend of tradition and innovation. The founders have taken the timeless principles of Ayurveda and combined them with modern scientific research to create a range of hair and skin care products that are both effective and safe. Their aim is to solve the hair and skin problems of people by offering them products that are free from harmful chemicals and preservatives. And it seems they are succeeding - Avimee Herbal is already the 9th best-selling brand on Amazon, with a 32% repeat rate.
But as the company grows, so do their needs. To keep up with demand, they need to set up a factory, which would cost those around 5 to 6 crores. To raise this amount, they have come to Shark Tank India, seeking an investment of 2.8 crores for 0.5% equity, valuing the company at a whopping 560 crores. The sharks were impressed with Avimee Herbal's success so far and were curious to learn more. They asked about the company's sales and revenue, and the founders reveal that in FY21-22, they had net sales of 6.5 crores. In the current financial year, they project sales of 20 crores, with a major order from Dubai worth 1 crore already secured. The founders also disclose that 85% of their sales come from their own website, with a gross margin of 69%.
Amit offers 1 crore for 2.5% equity at a valuation of 40 crores and 1.8% debt at 12% interest rate. Anupam, on the other hand, offers 70 lakhs for 2% equity at a valuation of 35 crores and 2.1 crore debt at 15% interest rate. But the founders are looking for a better deal and counter with an ask of 2.8 crores for 1.5% equity. The sharks are impressed with the counteroffer, but they are not convinced that it is worth investing such a large sum in a company that is still in its infancy. They are also concerned about the high valuation and the founders' lack of experience in managing a large-scale operation. After much discussion, the sharks decide not to invest in Avimee Herbal.
Despite the impressive growth and success of Avimee Herbal, the sharks on Shark Tank India ultimately decided not to invest in the company. However, the founders remain determined to continue growing their business and solving the hair and skin problems of people through their innovative products.
Here are some key takeaways from this blog:
- Innovation is key: Avimee Herbal's success is due to its unique blend of traditional Ayurvedic principles and modern scientific research. Businesses should strive to innovate and differentiate themselves from competitors.
- Know your numbers: The founders of Avimee Herbal were able to impress the sharks with their sales figures and projected revenue. It is essential for businesses to have a clear understanding of their financials to attract investors and make informed decisions.
- Be realistic with valuations: The sharks were hesitant to invest in Avimee Herbal due to the high valuation and lack of experience managing a large-scale operation. Businesses should be realistic with their valuations and have a solid plan for scaling their operations.
- Focus on customer satisfaction: Avimee Herbal's success on Amazon can be attributed to its 32% repeat rate, which indicates that customers are satisfied with the products. Businesses should prioritize customer satisfaction to build a loyal customer base and drive growth.
- Stay determined: Despite not receiving investment, the founders of Avimee Herbal remain determined to continue growing their business. Businesses should persevere through setbacks and stay focused on their goals to achieve success.