Cocofit
Initial Ask – Rs.5 for 5% equity at a valuation of Rs. 100
About the Company
Looking at the big unorganised and underutilised market at hand, the company Cocofit was found. This company aims at turning the coconut market into a corporate world, thus bringing out a range of products, all made of fresh coconuts. They have their appearances in 7 states till now, where they’ve established 31 outlets.
Their business is actually not a product company, but is a franchising company. They have till now sold 2 master franchises at Rs. 50 lacs per franchise, making direct profit. Also, if a master franchise sells unit franchise, they get 50% of the money of that deal too. Their vision towards carrying business out in this format is that they want to create a localised experience for the customers at each location they sell. Thus, they are selling parts of their business so that their products are consumed by people in all possible cities.
Past performance of the Company
They’ve made a revenue of Rs. 3.1 Cr. till now, of which Rs. 2.4 Cr. is their gross profit and Rs. 2.1 Cr. is their net profit. This is the power of the franchise business.
Industry Overview
India’s coconut production is so vast, that it ranks 3rd in coconut production globally. However, this market is avoided by people, or even if tapped, done in a very unorganised manner. This is due to the fact that its transportation becomes difficult because of its size and weight. Thus, this underutilized and unorganised 256 billion revenue generating market has a lot of potentials.
Another important factor to be noted is that hygiene is not taken seriously here. Whatever companies operate in this segment often try to sell forged products (Juice containing half water). Thus, these points show that there is a huge corporate market of coconut out there, which can be captured and this company is on track of it.
Offers made, and the one accepted:
Aman Gupta, Namita Thapar and Anupam Mittal came together to give Rs. 5 in exchange of 5% equity of the company, as per the original ask. The deal was closed here.