Jhaji Store
Initial Ask – Rs.50lakhs for 10% equity at a valuation of Rs.5Cr.
About the Company
The company is involved in manufacture of No Preservative, Sun-dried Pickles. The pickles have a really authentic taste, however, there is not any particular differentiating factors from the others in the industry.
The problem faced by the company is the same, crunched margins and high customer acquisition cost. The company earns a profit of Rs.110 on an average order of Rs.600.
Past performance of the Company
The company generated a revenue of around Rs.5,14,000 in the previous month.
On an average order of Rs.600, the company earns a net profit of around Rs.110, which is something along the lines of 20%.
Industry Overview
The entire industry of pickles is loaded with local players. A number of local brands in every region, pick out their exclusive materials for manufacture of pickles. Therefore, as of now, there are not many national players in this market.
However, in the recent days, some brands have tried to take their pickles on the national level, through online sales.
However, the margins in this industry are very crunched and with High Competition and High Customer Acquisition Cost makes it difficult for any company to exist in this industry.
Previous Equity Split
20% of the Equity is reserved for the founder’s son, who is an Engineer and shall manage the tech work in the company.
15% of the equity is reserved for the other founder’s husband who is an MBA and shall manage the business operations of the company.
Offers made, and the one accepted:
No Offers were made