Cos IQ
Initial Ask – Rs.50lakhs for 7.5% equity at a valuation of Rs.6.67Cr.
About the Company
The company has made a serum based sunscreen for the consumers. They have created a 2 element Vitamin C Serum. The Vitamin C Serum as 23% Vitamin C in it. The packaging is very clear, in terms of marketing communication.
The main problem with the brand name is Cos-IQ. But the pronunciation of the name is pretty difficult.
The product quality is very premium, feels like an international brand.
Marketing needs a major hit. Currently the company is breaking even. There is no organic marketing of the brand as of now.
Past performance of the Company
The company has generated Rs.11lakhs in revenue over 4 months and 3.5lakhs in the previous month.
The company earns a gross profit of around 75% and a net profit of around 30% on its sales.
Industry Overview
The Indian beauty industry may be catching up as well, jumping from a mere USD 11 billion in 2017 and is expected to close USD 30 billion by 2025. This kind of expansion in the Indian markets have created scope for a number of startups to gain share in this industry. According to the survey carried out by ProdegeMR, around 31 percent of respondents stated that they typically purchased cosmetics online in India in 2019. Additionally, more than 25 percent stated that they sometimes purchased cosmetics online.
Offers made, and the one accepted:
1. Anupam Mittal offered Rs.50lakhs for 20% equity
2. Vineeta Singh offered Rs.20lakhs for 20% equity and Rs.30lakhs as debt
3. Ashneer Grover offered Rs.75lakhs for one-third of the company
4. Anupam and Vineeta merged to offer Rs.50lakhs for 25% equity, which was countered at 20%
5. Meanwhile, Ashneer lowered his offer to Rs.75lakhs for 25% equity.
6. Finally, Anupam and Vineeta’s deal at 25% was accepted