“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://www.instagram.com/yumkins.pk/?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.
