The State Plate
Initial Ask – Rs. 65 lacs for 2% equity at a valuation of Rs. 32.5 Cr.
About the Company
Bringing the diversity of food items of India under one name, this company has been launched. This is an e-commerce website, which lists brands for every regional food item possible and deliver it PAN India. For those products which doesn’t have a known brand, they sell it under their own private label, ‘The State Plate’. Since 15 months of their inception, they have listed about 400+ products from 8+ states and have delivered more than 40,000 orders.
They don’t have their own manufacturing unit, their aim to make available every kind of Indian ethnic food all over India. Making about 30% sales from their own private label and other 50% from other marketplaces, they are trying to maintain all the packaged food items in their product portfolio.
Past performance of the Company
The company has made sales worth Rs. 4.25 Cr. till now, of which they made Rs. 40 lacs on a monthly basis during a period of Aug-Oct 21. They earn a gross profit margin of 34%, of which 15% goes into marketing, another 15% for shipping and the remaining is incurred in transaction costs and packaging.
Industry Overview
This company can be separately analyzed for 2 segments: regional food industry and packaged food industry. Speaking about the former, it is highly disorganised because most of the micro food processing firms make up almost 98% of this segment, of which 66% of these are located in rural areas. The cluster based approach for the local food industry was announced in the year 2020, which is aimed towards optimisation of the hyperlocalised production.
On the other hand, the packaged food segment is expected to double in 5-10 years in India, again on the back of urbanisation, changing consumer patterns and preferences and health concerns. Both of these will play out positively for this company.
Previous Equity Split/Investments
They earlier had self investment of Rs. 40 lacs, and then raised Rs. 1.3 Cr. from Antler India for a valuation of Rs. 13 Cr. So, their most recent equity split is as follows: 40-40% for each founder, 10% with Antler India and other 10% in ESOPs.
Offers made, and the one accepted:
Peyush Bansal was the only shark to offer Rs. 20 lacs for an equity of 3% along Rs. 45 lacs as debt. This was countered by asking for either Rs. 20 lacs for 1.5% equity along with the remaining as debt, or Rs. 40 lacs for 3% equity along with Rs. 25 lacs as debt. Peyush tried to negotiate by offering Rs. 30 lacs for 3% equity and the remaining as debt, but the deal was closed at the 2nd counter offer made by the founders.