“Pakistan’s First AI Incubator and Newborn Intensive Care Unit Seek 3 Crore for 15% Equity on Shark Tank Pakistan”
Muhammad Laiq and Asad Aslam are co-founders of kangaroo care AI, they both are biomedical engineers. Founder said that when a new born baby get sick then we take him to the hospital and if the right equipment are not available then the baby become more ill. So, to solve this problem, we have created a product which is locally manufactured, Infant Incubator, we are manufacturing this in our own factory in Pakistan. They asked for 3 Cr PKR for 15% equity.
Shark asked him to tell how you conceived the components so that local things are used here, founder said that we purchase it totally as a raw material like iron sheets or acrylic also it is in straight form and then comes the electronic parts which is software based control, its our own designed software which we have installed in it. The manufacturing cost of 1 incubator is from 75k-85k, selling price of this incubator is 150k-200k.
Its already been one and a half year since they started manufacturing it and the 400 units which they had sold are in hospitals, medical centers and gynaecologist, who want that if baby is delivered here then they should admit them if the baby is sick. Founders said that if they divide the revenue of six months then they thought that they sold 100 units. Sharks asked them if you are doing this for CE then tell us what is the process and when it is expected? Founders said that the process is of six months and for that all their protocols have to be followed, and they are here today because they want CE certification which is costly, The cost is round about 80 lac PKR to 1 Cr PKR.
In their team there are 4 members who are currently working. Right now they make 10 to 15 more in a months, if there were more, we would have sold 20 incubators. This year they have approximately sold more than 250 units which means they have a revenue of 3 Cr PKR in 2024 and the net profit of 40%.
Founders said that we have to complete the capacity of our country, right now the children are dying in our country. Take Sindh, Balochistan and KPK, we will first compete our capacity and make it sufficient in our country. Funding Breakdown is 1 Cr PKR Certifications, Rs. 2 Cr PKR for manufacturing units and team.
Judges who funded the startup are Romanna Dada , Rabeel Warraich , Usman Bashir , Junaid Iqbal , Faisal Aftab . Sharks wants to place an offer Junaid, Usman and Faisal offer PKR 3 Cr for 25% equity. Founders are not satisfied by the offer then the Sharks offer PKR 3 Cr for 30% equity. Laiq & Asad counter offer is PKR 3 Cr for 20% equity. All Sharks Deal PKR 3 Cr for 25% equity and the deal is closed.
They are selling the product without certifications, it’s like playing with the life of the kids. They don’t have a child specialist on the team, they should have one. Normally you should have 2-3 partners max in the team. 4 is too much.
The story behind starting the business. They are building made-in-Pakistan products and found a great niche where not many founders are working. Good negotiation skills with sharks, they tried their best to increase the valuation.
https://pk.linkedin.com/company/kangaroocareai
https://www.instagram.com/kangaroocareai/?hl=en
Sumbal is shark tank enthusiast, ever since the show started airing, she has followed it. She likes writing and researching about startups. She is also helping a few startups scale.
