Bummer
Initial Ask – Rs.75lakhs for 4% equity at a valuation of Rs.18.75Cr.
About the Company
The company has introduced a micro-modal fabric based, super light-weight innerwear, with quirky designs to appeal to the younger audience.
When asked on industry play, the company has a plan to play on branding in the industry. For this, extremely high marketing expenses are to be incurred.
In terms of manufacturing, the company has partnered with a manufacturer in Delhi, where the machinery has been provided by the company, in turn for the manufacturing.
The company has introduced matching innerwear for couples, which appeals to a different kind of target market, and thus increases the market cap, by including the gifting aspect to it.
Fortunately, the company enjoys a 30% repeat customer rate.
Past performance of the Company
The company has sold goods worth Rs.15lakhs in the previous month and enjoys a net profit of around Rs.150, on an average order of Rs.1,100.
Industry Overview
The Indian Innerwear Industry is one which is booming. With raising awareness about intimate hygiene, the younger generation is particularly interested in using high quality innerwear to maintain intimate hygiene. The women innerwear industry is expected to double in the next 4 years, while the male innerwear industry is expected to grow 4 times in the next 4 years.
Moreover, due to the high levels of quirky likeliness, the quirky designs appeal more to the younger generations. Moreover, the younger generation has more intimate contact with others than the older generations and thereby, having fashionable innerwear, and also comfortable ones is very appealing to this generation.
The company has also introduced matching innerwear for couples which appeal to another set of target audience, thus bringing the female sector into the picture.
Previous Equity Split
The company has an ESOP pool of 12.5%. It also raised an investment from B-Next at a valuation of Rs.9Cr.
4 other angel investors are also involved in the company.
Offers made, and the one accepted:
Aman and Namita offered Rs.75lakhs for 15%, which was countered with 6%.
Aman and Namita came down to 10%, and then this was again countered with 6.5%
Finally, the deal was closed at 7.5%.