Hammer
Initial Ask – Rs.30lakhs for 3% equity at a valuation of Rs.10Cr.
About the Company
Direct competitor of the shark, Aman Gupta, this company sells a range of products in the segment of electronics: bluetooth headphones, electric toothbrush, wireless chargers, wifi plugs, etc. Having about 14 Stock Keeping Units, which are too much according to one of the sharks, this company’s top 3 SKUs are Hammer Bash (headphones), wireless chargers and watches.
This company has gained about 1.5 lac customers till now. The founder of the country has a vision of spreading these products in all of India. However, the founder lacked purpose and clarity.
Past performance of the Company
This company made sales worth Rs. 2.5 Cr. in the year 2019, whereas Rs. 5 Cr. in the year 2020. In the first 6 months of the year 2021, the company earned about Rs. 6 Cr. and projects sales worth Rs. 10 Cr. till the end of the year.
Industry Overview
This sector is filled with big competitors like Shark Aman Gupta’s Boat itself. However, there still remains scope in this sector for small players. Why? Because of its huge demand among every generation living today. This market is expected to grow at a CAGR of 11.7% till 2027 globally. It is driven by the convenience of wireless technology and the increasing penetration of smart devices.
But this is not it. The company sells smart toothbrush, which is one of the most unexplored markets of India. Doing wonders globally in countries like Germany, China and Dubai, this company has the potential to build a brand name in this segment alone.
Offers made, and the one accepted:
1. Aman Gupta gave the most sharky offer ever to offer Rs. 1 Cr. in exchange of whole of the company i.e., 100% equity.
2. Ashneer Grover and Anupam Mittal joined hands to offer the same amount of money at 25% equity.
3. Aman went on to revise his offer multiple times, offering same amount of money first at 75% equity, then at 50%, finally stopping at 40% equity of the company.
4. By this time, Anupam was out of the deal, but Ashneer revised his offer by giving the same amount at 20% equity.
However, the founder said yes for whom he actually came, Aman Gupta!