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Initial Ask – Rs.50 lacs for 10% equity at a valuation of Rs.5 Cr.
About the Company
This is a Sneaker Resale platform, managed by three sneakerheads. Their processes involve buying the original limited sneakers from the platforms and making them available for their customers in every size. The USP of their products is the authentication done for proving the originality of the sneakers that they sell. Each sneaker goes through a 20 point checklist.
It basically acts as an aggregator market for all the sneaker resellers. Used sneakers are not resold in this market. Currently operating through Instagram (40k followers), they have 4000+ products listed. Their tagline ‘Buy, Sell, Trade’ says it all.
Past performance of the Company
Starting with their monetization 8 months ago, they have achieved a revenue of 26 lacs till now, of which 3.5 lacs was made in the month of October. Currently, they are operating at a net profit of 17 lacs, where the average selling price of each sneaker is Rs. 20000.
Industry Overview
With a huge market of 9000 Cr., sneakers are considered as an investment by the current generation. Its success is accredited to the millenials and GenZs, who look at this a catalyst for self-expression, freedom of choice and opinion. Projected at $30 billion, the resale market, constituting around 10-20% of the whole sneaker market, is expected to grow at an exponential rate. The value of sneakers has increased more than Gold over the years. Premium pricing over and above the original retail prices have made the sector quite profitable.
Offers made, and the one accepted:
1. Namita Thapar and Ashneer Grover started off by offering Rs. 50 lacs for 30% equity.
2. This was followed by all 5 sharks, including Peyush Bansal, Anupam Mittal and Aman Gupta, joining hands for 30% equity at the same amount.
This was countered by offering 20% equity for the same amount.
3. Finally, sharks came down to 25% equity for the above mentioned sum of money, at which the deal was closed.