Category: Shark Tank Pakistan

“Arshad Chaiwala Demands Rs. 1 Cr for 5% Equity on Shark Tank Pakistan”

Arshad Khan and Kazim Hassan are co-founders of Cafe Chai Wala. In 2016 Arshad Khan’s picture went viral of making tea, he said for one and a half to two months I could not understand what is happening to me. When I understood, I started modeling and acting in Lahore, Faisalabad, Karachi. After that a lot of people told me to open a cafe, when I used to work at someone’s cafe I wanted to open my own. After that I met Kazim Hassan and we launch a proper office in Islamabad.

Kazim Hassan said that in March 2020, we opened our first cafe, Roof Top cafe in Blue Air Islamabad and as soon we built it, Covid came in March and then there was a gap and then we relaunched it in October 2020, It went viral even before it was launched. They asked for Rs. 1 Cr PKR for 5% equity. Rs. 20 Cr Valuation.

Shark asked them that there are any cafes you are running in Pakistan? Founder said that yes we are currently running two cafes in Pakistan, one in Balakot and second one in Saidu Sharif. The international cafes are running in Lifford Lane, Slough and Scotland and these all are running on franchise. Franchise fee in Pakistan is 35 Lacs Upfront 5% royalty, and for UK franchise fee is £150k – £200k pounds. Equity split is 50-50% between these two founders.

There revenue in last month in UK is 38000 pounds. Shark Faisal and Rabeel are out for today but they give their best wishes to them. Shark Rabeel said that I think whatever you have done till now, credit goes to you for taking where you are, but you need a lot of help in this and you need that opportunity to open that network. What I offer you is 1 Cr PKR for 24% equity. Shark Romana said that Rabeel you have given a good offer and I think I can also add a lot of value in this thing, I have a lot of experience in merchandising products and these restaurant, cafes etc. I had a chain in London, our own cafe chain so if you wouldn’t mind I would love to join your offer. He said sure why I would mind.

Then Shark Usman said that I would also like to give you an offer similar to there, 1 Cr PKR but for 30% equity and master franchise. Founders said that your offers are good but we got the same offer for 2 Cr PKR but we rejected it. Founders said can you give us 1 Cr PKR against 20% equity than the Sharks said no there’s a lot of risk in your work. At the end founders take the deal of 1 Cr PKR for 25% equity and the deal is closed.

 They were not able to negotiate the deal, instead of having a good brand. They already have franchises in the UK, so they should double down on their franchising model with less franchising fee. Their franchising fee is too high. I suggest such startups visit Exitbase.pk if they want to dilute huge equity. We have a lot of such investors.

Amazing to see how Arshad branded himself from a chai wala to an owner of the food brand. It’s great learning how he utilizes his viral photo into a good venture.

https://www.facebook.com/cafechaiwala

https://www.instagram.com/cafechaiwala_arshadkhan/?hl=en

“Yumkins Founder Seeks Rs. 9M for 15% Stake, Rs. 6 Cr Valuation on Shark Tank Pakistan”

Hira Mubeen and Abdul Rahman are co-founders of Yumkins Food. They started their work since last year and they are siblings. Founders said that as parents we want best food for our kids but when it comes to their first solid food we get confused about the best of the best . It is difficult to choose the right kind of food which is healthy, chemical free, convenient and at the same time it is made in Pakistan because 90% of the baby food brands made in Pakistan use chemicals. Hira said Shark I present to you Yumkins is a natural baby food brand that makes healthy, convenient and affordable baby food products. Our products are designed keeping in mind the dietary needs of babies from 6 months onwards.

Revenue

The company has generated Rs. 6 lacs in last 6 months with 1300 units sold without doing marketing. Both co-founders hold 50 – 50 % equity split. Shark Faisal asked them what is the composition of your product tell us? Founder said that we have used natural ingredients including variety of ingredients like cereals, fruits, vegetables and seed. Currently they are selling only one product which is BB cereal which is for children above 6 months. But they have develop more products but they did not launch them yet. Their unique selling preposition is 100% chemical free.

Sharks asked them that their are any competitors in the market? Founders said that yes their are competitors in US and Germany but in their product their is a little bit harshness because of the sugar content but our product is made of beetroot and banana. Market size is 1500 Arab baby food. The total investment in the company is Rs.10 Lacs PKR. We sell our products for Rs.700 for 250g. The breakdown of this products is Rs.160 for raw material, Rs. 60 for packaging, Rs. 110 in Marketing, Rs. 90 for logistics, Rs. 48 for payrolls, Rs. 12 for utility, Rs. 10 for Web & Tech, Rs.7 For rent, Rs. 5 for R&D. Then their net profit is 32%.

All Sharks are so impressed by their product and said that now the demand of these products are increasing day by day in markets, but all 4 Sharks are out but they appreciate them and their product.

Episode 1

Update

Shark Romanna said that I really want to support something like this, but I also feel that there is a lot of work to be done, such as your entire packaging, innovation, branding something modern like a brand because this is a premium market product we have to start this so I will give you a full amount but I want 40% of the equity because it needs a lot of work to done. The founders counter offer is 90 Lacs PKR for 36% equity. valuation 2.5 Cr PKR, the Shark Romanna accepted their counter deal and the deal is closed.

They have diluted huge equity but I think its a good approach as first time founders. Normally in Pakistan founders are very conservative about their equity. In my opinion if you are a first time founder and you are getting good capital with great network then dont worry about the equity. You can grow your business with the capital and network much faster.

https://yumkins.co

https://www.instagram.com/yumkins.pk/?hl=en

“Shahtaj Qaiser Seeks 8 Million PKR for 15% Equity on Shark Tank Pakistan”

Shahtaj Qaiser the founder of Shahtaj Qaiser is working with her mother for the last 4 years. Founder said that in my opinion fashion is a universal language which transcends different cultures and traditions. It gives all of us a great opportunity to show our creativity and that’s how I got this opportunity by taking an admission in Pakistan Institute of Fashion and Design Lahore and graduated as a textile designer. She asked for 80 Lacs PKR for 15% equity.

She is the only one who holds 100% equity and her mother is doing all the production work for 10% equity. Shark Romanna asked her how much time do you take to make these? Founder said that the minimum time I take is 10 days, maximum time I take is 25 days for formals and 30-40 days for bridals and formals. Prices in formals start from PKR 40k and above and our price in bridals starts from 2 Lacs PKR – 8 Lacs PKR.

Total revenue of 4 years is Rs. 3.6 Cr PKR breakdown of this is, in the first year it was 80 Lacs, in the second year the revenue was 1.2 Cr PKR, in the third year the revenue was dropped to 1 Cr PKR and currently this year the revenue is 60 Lacs PKR.

Two Sharks are out for today because they said that you can become a niche business, if it is a niche business then of course create a small business volume wise but then make it very high margin. If you do customizations then charge for those customizations and if you want to sell globally through platforms then you will have to standardize your products but we are sure you will figure out which way you have to go, but for today we are out but we wish you all the best.

Shark Usman said that I feel like potential is there if it is structured out properly and more focus is given to international markets. You have demanded 80 Lacs PKR but I would like to offer you 40 Lacs PKR for 20% equity and PKR 40 Lacs line of credit with 7% royalty. But the founder is not satisfied with the offer she said can we just have PKR 80 Lacs for 25% equity. Shark Usman’s revised offer is PKR 50 Lacs for 20% equity and PKR 30 Lacs line of credit with 7% royalty. Both two Sharks Romanna and Faisal also joined the offer they said that the founder has potential so they gave her the deal and the deal is closed.

Its not the startup, its mainly a business that could earn good profit but scalability is difficult. As a founder she has to think what could be other revenue stream that could make it scalable.

Her presentation and honestly is amazing through out the pitch. Sharks invested in her because of her confidence and they think she could do something big.

https://www.shahtajqaiser.com/?srsltid=AfmBOoqgqslG4i0X5im8kQ0sU7DpxCzmKJLJCPMO0ytxVf6C98C2LvyK

https://www.instagram.com/shahtaj.qaiser/?hl=en

“Moveit Founders Pitch for Rs. 5.5 Cr in Exchange for 2.5% Equity on Shark Tank Pakistan”

Uzair Khan and Hasan Baig are founders of Moveit. Uzair Khan said that When I graduate and came back to Pakistan, I joined the family business which was related to agriculture and textiles. I realized very early on that every business has a huge stake in Pakistan’s economy. Pain point is its transport and logistics. On coming back from university, I discussed my idea with hasan and we came up with the idea Moveit; an aggregator in Pakistan moving and shipping services.

The company has generated Rs. 60 Cr. PKR oof revenue in last 3 years. They asked for Rs. 5.5 Cr PKR for 2.5% equity. Rs. 2.2B Valuation. Shark Usman asked them to tell how your service operate? Founder said that we enable the gig economy in the market. We connect the laborers, movers, vendors, drivers with services that businesses want and household customers want. Shark Aftab asked them how much capital have you raised before this? Founder said that we have raised a total of 17.5 Cr PKR since 2021 and our last raise was four months ago and it was 5.5 Cr PKR.

Funding Raise Previously Rs. 17.5 Cr. (72% founders and remaining investors and ESOPs). Shark Junaid asked them how many truckers or such vendors are with you and on the other side, how many customers have you acquired till date? Founders said that because we have been there for four to three years. It’s been done and in the initial one year we are working on supply, so we have a total 3k – 4k trucking drivers, we have got over 200 vendors that work with us.

Founders said that service module is now only available on our app. For B2B we used web based platform, we only work with special client like you know because B2B services are more like specialized services in which we have clients like Foodpanda, Daraz etc. then we have to give them customized service and working with them. In one year we did work worth about 18 Cr PKR, out of which we took about 10 to 11% margin.

Founders said that we are raising Rs. 5.5 Cr PKR that is specifically for the relocation segment within Pakistan and Saudi Arabia. So initially we have just signed an MOU and there is still a way to sort of align things on how this partnership will go further. At the all Sharks gave their opinions and said that your valuation is very high so thats why all Sharks are out for this deal and the deal is not done.

They understand the market and already generating good revenue. As a founders try to understand one thing when you are pitching to investors that the investor is here to make money, if you already raised the money on high valuation then it will be difficult to raise funding from investors who prefer to invest in early stage startups.

https://moveittech.com

https://www.instagram.com/moveit.pk/?hl=en