Skippi Ice Pops
Initial Ask – Rs.45lakhs for 5% equity at a valuation of Rs.9Cr.
About the Company
The company aims at playing on Nostalgia. The company has developed Ice Pops, which the middle aged people used to love in their school times. Since then, due to bad business practice, the consumption of such ice pops fell.
The Ice Pops are made of soft ice, the technology for whose production is patented. The company uses 100% natural flavours and no preservatives.
The company is selling these in liquid form, which can be freezed at home before consumption. This allows the company to save funds by not competing for freezer space at supermarkets, and instead it can use normal shelf space. This allows greater distribution channels for the company.
Past performance of the Company
The company has earned a revenue of Rs.40lakhs in the past 6 months, scoring a rate of Rs.7.5lakhs in the previous month. The company has a 75% gross margin on the product.
Industry Overview
There is no big player in the Ice Pop industry. This company is also playing on nostalgia, which is a driving factor on high levels on sale.
The main target market for this product has become two-fold. The first is the middle-aged people who are being played on nostalgia, and the second is the young kids, which is covered by animated branding and the playful flavours.
The industry is topped by local players, who have no standardised processes and therefore, the quality of products is not consumable, hence, the local players can easily be dominated with such standardised and multi-flavoured varietes with proper branding.
Offers made, and the one accepted:
1. Anupam offered Rs.45alkhs in turn for 5% equity.
2. Ashneer increased the amount invested by taking it to Rs.60alkhs for 5% equity.
3. Anupam, Vineeta and Aman joined hands to offer Rs.60alkhs for 6%
4. Finally, all 5 sharks, Anupam, Vineeta, Aman, Ashneer and Namita came in to offer Rs.1Cr. for 15% equity, which was countered for 10%. However, the countered was turned down and the deal was closed.