NOCD Energy Drinks
Initial Ask – Rs.50lakhs for 2% equity at a valuation of Rs.25Cr.
About the Company
The brand has created a NO SUGAR Energy Drink, which is already existent in the market. However, the source of caffiene in this Energy Drink is Green Coffee Bean, which is good for health as well. It has a classic BCAA(Branch Chain Amino Acid), which has an aftertaste, which people might not like. It has caffeine equal to one cup of coffee, derived from Green Coffee Bean, hence the consumption quantity may be difficult to track. Selling price is Rs.110, whereas Red Bull sells its product at Rs.115.
NO Carbonated Drink is the full form of NOCD, which is not a very attractive name, according to Ashneer, the name reminds him of a medical drug. Currently the product is present in 1100 stores out of which 300 are situated in Mumbai and 800 in Bangalore.However, this industry is crowded with competitors, starting from low range energy drinks like Sting, all the way to premium energy drinks like Red Bull. Moreover, the basic composition of an energy drink and the kind of sticky customers that brands like Red Bull have created has made it really difficult to enter the market.
Brands like Monster create flavours to vary the taste as per consumer demand in order to make sure that there is no new entry in the market.
Past performance of the Company
The company has generated a revenue of Rs.1.16Cr. in the past six months and has grown to a rate of Rs.20lakhs per month revenue.
Industry Overview
India Energy Drink market is projected to grow at a CAGR of 9.22% during the forecast period, 2020-2025. Energy drinks are caffeinated beverage products, which exceed 145 mg of caffeine per liter. The products are marketed as non-alcoholic beverages, which are consumed to boost energy.
However, this industry is crowded with competitors, starting from low range energy drinks like Sting, all the way to premium energy drinks like Red Bull. Moreover, the basic composition of an energy drink and the kind of sticky customers that brands like Red Bull have created has made it really difficult to enter the market.
Brands like Monster create flavours to vary the taste as per consumer demand in order to make sure that there is no new entry in the market.
Offers made, and the one accepted:
Only Vineeta Singh made an offer for Rs.20lakhs for 20% equity and Rs.30lakhs of debt, which was countered for Rs.20lakhs for 10%equity, other things remaining the same. Finally the deal was taken at 15% for Rs.20lakh and Rs.30lakh as debt.