“Muhammad Zeeshan, Founder and CEO of Zee Sy Jewelry, Proposes 5 Crore Investment for 12.5% Equity on Shark Tank Pakistan”.
Muhammad Zeeshan is the Founder and CEO of Zee. Sy Jewelry. Since 2009 he started his journey from a small store in Nazimabad and then they introduced their designs of artificial jewelry to the customers across the world through e-commerce and the customers liked their designs very much. Today they have four retail outlets available and apart from this they are going to expand in the whole world of Pakistan and after Pakistan they are going to launch their stores in UK, Canada and UK.
Their revenue in 2023 is 13 Cr PKR and 15 Cr PKR in 2024. 60% split is from e-commerce, 40% from branches, 15% from Franchise and 25% comes from factory outlet. Gross margin revenue is 60% and CGS is 40%, breakdown Gross margin 7% admin expense, 9% marketing expense, 5% salary, 5% courier expense, 5% Franchise fee, 4% packaging cost, 3% GST and net profit is 22%.
Shark Romanna asked him that the 60% of your online customers are from Pakistan? Founder said that our overall sales are 80% from Pakistan, 10% from US, 4% from Canada, 3% from UK and 3% from other countries. Shark Usama asked him tell me the breakdown if you will get it, what you will do? Founder said that its breakdown will be that our future projection is that we will first built two stores in Punjab and the one cost for the making of store is 1.5 Cr PKR. The shops are minimum 500 square feet and maximum is 800 square feet.
The next location which they are going to open, where they have maximum client is Lahore and after that Islamabad. Founder said that they will expand 1Cr in marketing because when they are opening branches, they will focus on marketing and they will spend 1 Cr in team building.
Shark Faisal wants to place an offer he said that I will give you 5 Cr PKR but not on 12.5% but on 50% equity and I will change you trajectory. Founder said that 6 Cr PKR inventory is now available in the companies stock. Shark Rabeel said that if you build these two shops worth 1.5 Cr PKR per day, the return on those will not be that good, you will get a worse return than that if you focus on marketing and make the thing work, keep running it.
Shark Usama said that I want to make a deal, I will give you 2 Cr PKR for 30% equity and after that I will give a line of credit of 3 Cr PKR for your shops and you will return 80% of the net revenue of the company to me so that this 3 Cr PKR can be used as a cover up. If it happens and I get back my money of 3 Cr PKR, after that I will be a 30% shareholder in the company. At the end the founder is not satisfied by the deal which the Sharks offer him and the is closed!
He should mentioned the growth of the franchising model and explain the unit economics of each franchise, like monthly revenue, average monthly net profit and the capital required.
He rejected the offer and I am really happy for him because he already has product market fit and it makes no sense to give up such huge equity at this stage. I think he should grow his business through franchising and exit base can help him make the complete franchising models and bring the investors for the growth.
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.
