The Renal Project
Initial Ask – Rs. 1 Cr. for 3% equity at a valuation of Rs. 33.33 Cr.
About the Company
A dialysis service provider company, this one aims to provide services of dialysis even in the remotest of areas. Thus, the company opens a dialysis centre consisting of 2-3 beds for serving the patients. Starting its operations in 2019, they currently have 20 hubs in Pune, Thane, Nasik and Mumbai. They are going to open the 21st centre very soon, but that’s not it. They even deliver their services at home. Proud of having catered to around 1000+ customers till date, the founders feels this market to be one of the most untapped ones.
The unique selling proposition of this company is its execution play itself. It is an extremely difficult task to cater to such a large market of dialysis patients and that’s what this company challenges. They even are working on an in-house management software, which tracks everything down in all the centres. Thus, one of the most unseen problems of the remote areas of the country is getting solved through it.
Past performance of the Company
The company generated a revenue of Rs. 7.5 Cr. from January to May 2021 through home dialysis. Having a monthly revenue of Rs. 25 lacs, this is a Rs. 3 Cr. ARR company.
Industry Overview
There are a several dialysis providers in the country, and there are many people working in this sector. But the execution play and management is always the one suffering. Companies like NephoPlus is doing the same job, by going to the hospitals and outsourcing it. However, it boils down to the fact that there are almost 10-15 lac dialysis patients currently and every year, there is an addition of 2.5 lac patients. Most of them remain unattended because of the difficulty in providing services in the remote areas. Thus, the company is on the right track to work on its in-house management software in order to capture a big share in this ‘untapped’ market.
Previous equity split/investments
This company has already had a valuation of Rs. 20 Cr. at hand.
Offers made, and the one accepted:
1. Ashneer Grover started off by offering Rs. 25 lacs for 1% equity of the company, along with Rs. 75 lacs as debt at 12% interest, to be repaid in 5 years.
2. Namita Thapar joined the club by offering Rs. 1 Cr, as asked by the founder, but in exchange of 10% equity of the company.
3. Aman Gupta joined hands with Namita at the same offer.
4. However, they revised their offer for 8% equity of the company.
These offers were countered by asking for Rs. 1 Cr. at 4% equity of the equity.
5. The counter offer was negotiated by the duo of Namita and Aman by offering Rs. 1 Cr. for 6% of the equity.
6. To this, Ashneer revised his offer to Rs. 50 lacs at 2% equity and the rest as debt under the same terms as before.
However, the founder closed the deal with Namita and Aman.