Meatyour
Initial Ask – Rs.30 lacs for 5% equity at a valuation of Rs.6 Cr.
About the Company
Brown odourless eggs being the only, but the most crucial product of the company, this company has made significant presence in B2B markets. For the last 6 years, this company has been selling brown eggs to big companies and brands, through white labelling. The company has around 9 hubs in Mumbai and 3 in Pune.
Their company really started since the inception of its D2C vertical. Using technology of WhatsApp, they’ve tried to reach as many consumers as possible, making their minimum 6 month retention rate close to 15%. In the opinion of its founders, they have such an experience and scalability in this industry, that they can’t be challenged by any other company.
Past performance of the Company
Their B2B business has made a turnover of Rs. 1.3 Cr. and a net profit of Rs. 35 lacs in the year 2020-21. With a cost price of Rs. 3.5 and a selling price of Rs. 5.5, they make a gross profit of 30%.
On the other hand, the B2C vertical showed sales worth Rs. 16.1 lacs in the previous year, whereas 2.8 lacs in the month of October 21. Cost of Rs. 5 and a selling price of Rs. 9.16 promises a gross profit of 40% and a net profit of 30%.
Industry Overview
Eggs make the cheapest source of protein in today’s world. Almost around 300 million eggs are consumed everyday in India, and 8 million is consumed in Mumbai alone. With such a big market size, the companies like MeatYour have a great potential to grow and expand. Today, China has the biggest production capabilities of eggs, and thus have a major share in the global market of eggs. But, looking at the fact that India’s and China’s population figures are not that different to each other, India having a share of mere 7% in this market is not justifiable. These reasons present opportunities to companies like MeatYour. This industry is expected to grow at a CAGR of 9.1%.
Enhancement of the product line by introducing other poultry products, for example chicken can work out better for the company.
Previous Equity Split/Investments
Previously, the founder had all the equity distributed among the family members, except the Sai, the younger son. They planned to convert it to 20% each afterwards.
Offers made, and the one accepted:
1. Peyush Bansal and Aman Gupta started the offering round by giving Rs. 30 lacs, as per their ask for exchange of 20% equity of the company. This was built on a few conditions, like merging the B2B and B2C vertical by introducing higher range of products and developing a good tech team.
2. Anupam Mittal also made the same offer afterwards.
This was countered by asking for the same amount for 14% of the equity.
3. Following this counter offer, the above mentioned 3 sharks offered the same amount at 20% equity of the company. The deal was closed at this.