MUMBAI : On a recent episode of Shark Tank India, the three founders of the “affordable luxury” brassware brand P-TAL presented an amazing pitch that captivated the entire panel of sharks, which included Anupam Mittal, Vineeta Singh, Aman Gupta, Namita Thapar, and Amit Jain. The three founders evaluated their company at Rs 50 crore and requested Rs 50 lakh in exchange for 1% equity.
The founders noticed how people have grown to embrace Ayurveda and yoga, and they said they wanted to help the public in re-adopting old practices. They said that eating with utensils made of brass, copper, or bronze is good for good health. However, Namita had concerns about their product’s cost. She claimed that by charging more than Rs 6000 for a three-litre copper water dispenser, they are going for luxury.
“This is not affordable,” Aman said, claiming that Good Earth sells cheaper products. Vineeta said that this isn’t true, and asked who the founders want to target with their products. “Is your main proposition health benefits or style and looks?” Aman asked, and the founders said that they cater to three different kinds of clients. The first category values the health benefits, the second values the flavour that these utensils impart on the food, and the third category buys these products purely for their looks.
The founders also revealed that they want to expand internationally, where the demand for such rustic products is very high among non-resident Indians, and also foreigners. Anupam mentioned the knowledge that he has gained about this market via Shaadi.com and said that overseas revenue can be seven times higher than local business. And the founders agreed. They said that while their domestic order value is around Rs 4000, their overseas order value is over Rs 21000.
According to Anupam, the marketing should emphasize the health advantages of brass and copper rather than just how fashionable these things are. Aman made a joke, “For once, I agree with Anupam. Your tagline needs to be sharper.” Then one of the founders offered a breakdown of their company’s unit economics, which made Aman laugh again. “Aapne unit economics bola aur Amit bhai ke kaan khade hogaye.”
The first person to make an offer was Anupam. At the same valuation of Rs 30 crore that the company recently closed, he put out a proposal for a sale worth Rs 50 lakh. Aman entered the auction with an offer of Rs 50 lakh for a 1.5% equity. Vineeta and Amit accepted the offer, as Namita matched the offer.
“Why do people always copy me?” Aman asked. The founders said that they would like all sharks to come together, which Namita was initially reluctant to do.
“We’re sharks, yaar!” However, Anupam made a different suggestion. “Paisa aur lelo (Take more money)” was his suggestion when Vineeta placed a Rs 1 crore deal for 3.2% equity.
The three founders gave it some thought and decided to proceed, leaving with double the money they had initially requested but a lesser valuation than they had desired.
