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Avimee Herbal: Shark Tank India Season 2

Avni Dubey

By Avni Dubey

  • 8 min read
  • 12th April, 2023
Avimee Herbal: Shark Tank India Season 2

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 on Shark Tank India

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.

Avimee Herbal Team presenting their Pitch on Shark Tank India

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.

ALIPPO LEARNINGS:

Here are some key takeaways from this blog:

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
Faq

Frequently asked questions?

What is Avimee Herbal, and what makes it different from other hair and skin care brands?

Avimee Herbal is a hair and skin care brand that combines Ayurvedic principles with modern science. Their products are all-natural and free from harmful chemicals, making them effective solutions for various hair and skin issues.

Avimee Herbal was founded by five enterprising individuals - Siddhant Agarwal, Ambika Agrawal, Radha Krishna Choudhary, Vinita Agrawal, and Vibhor Agarwal.

In FY21-22, Avimee Herbal achieved net sales of 6.5 crores, and they anticipate sales to reach 20 crores this fiscal year. They have already secured a significant order worth 1 crore from Dubai. The majority of their sales (85%) are generated from their own website, with a gross margin of 69%.

Avimee Herbal, despite its remarkable achievements, did not secure investment from the Sharks on Shark Tank India. The sharks expressed concerns about the company's high valuation and the founders' limited experience in managing a large-scale operation. Despite an impressive counteroffer, the sharks ultimately deemed the investment too substantial for a company that is still in its early stages.

Avimee Herbal's hair and skin care products blend Ayurvedic principles and modern science. They use natural ingredients like amla, bhringraj, and neem, as well as modern ingredients like argan oil and vitamin E, to create safe and effective products. Their product range includes shampoos, conditioners, face packs, and more, with the first product being an oil to combat hair fall caused by COVID-19. All products are free from harmful chemicals and preservatives.

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