Falhari
Initial Ask – Rs. 50 lacs for 2% equity at a valuation of Rs. 25 Cr.
About the Company
This is a fresh fruits brand, which sells products like salad, juices, yogurt, etc. Their aim is to build a market of 25 exotic premium fresh fruits, which they try to deliver to the customers in a personalised format. Based in Gurgaon currently, they want to expand to several cities of the country. They are not just a fruit seller, they are actually a firm which capitalizes on its innovation and procurement. 95% of their revenue comes from the innovation that they have applied to sell health oriented fruit clinic products.
They maintain a wastage rate less than 5%, and this is possible because of the chain of their processes. They use a particular product according to the condition it is in, like for example, serving it raw if fresh, making juices if ripe and blended when starts melting. Apart from this, their innovation in the range of products sold, their advanced tech which allows dynamic sales and the customised nature of their business makes it noteworthy. They receive about 70% repeat customers daily, such are their operations!
Past performance of the Company
They made a sales of Rs. 20 lacs in the month of October 2021, before which they made sales worth Rs. 17 lacs. They enjoy around 25% in gross margins. Their burn rate so far has been 5%.
Industry Overview
The fresh fruits industry is expected to grow annually by 8.57% CAGR between 2022-2026 globally. India ranks second in the production of fruits and vegetables internationally, still is associated with only 2% level of food processing. The biggest challenge faced by the food processing segment is perhaps, limited and inconsistent availability of fruits. This is the stage which this company wants to improve, and hence is working towards the procurement, as described in the earlier section.
Fruit Smith is one of the competitors of this company, also catering in the fresh fruits sector. However, an expected CAGR of 7.26% in the industry for 2022-2023 can help the companies grow together.
Previous Equity Split/Investment
Dhruv was their 1st investor, who invested Rs. 5 lacs, but for a mere equity of 1.5%. The other two founders have 75% and 15%. They have also raised about Rs. 25 lacs in January 2020, at a valuation of Rs. 5 Cr., again Rs. 17.6 lacs in October 2020, at a valuation of Rs. 10 Cr. Post this, they did a 3rd round of raising, where they got Rs. 31.4 in March 2021 at a valuation of Rs. 10 Cr. again. Lastly, they again raised Rs. 31.4 lacs in August 2021 at a valuation of Rs. 25 Cr.
Offers made, and the one accepted:
Vineeta Singh was the only one to offer Rs. 50 lacs for an equity of 8% of their company. However, it was not accepted by the founders.