The Quirky Naari
Initial Ask – Rs. 35 lacs for 5% equity at a valuation of Rs. 7 Cr.
About the Company
Being a lifestyle and apparel brand, this company delves deep into the personalised and customised space of fashion. This company is such that they are the first ones to launch the hand-printed denim brand and the only one to customise bridal sneakers. It is literally a zero investment startup, which has even received a shoutout from Priyanka Chopra.
Their unique selling proposition being customisation till now, they now want to move into the standardised space, and scale their business. However, they will still continue the customised leg of the business with all the hand-printed stuff. Having a follower base of 26,000+ on Instagram, the company is more known for its quirky shoes, rather than clothing.
Past performance of the Company
Making about Rs. 15 lacs from the first 5-6 months of the financial year 2021-22, the founder made the breakup of the revenue crystal clear. With a selling price of Rs. 1300 and a base price of Rs. 300, they make Rs. 700 as gross profits, as the interns are paid out Rs. 300.
Industry Overview
Over the years, India has shown tremendous growth in the fashion and lifestyle industry, reflecting a powerful manufacturing sector and a fast-growing middle class. Not only this, the pandemic saw shift of consumer demand from offline to online stores, thus rapid digital transformation and technology playing its role in the sector. The country’s apparel market is expected to be worth $59.3 billion by the end of the year 2022.
However, this company caters to the customised lot of the industry, which is fast growing because of the changed patterns and demands noticed in genz and millennial generation. This is the reason it is said that customisation is the present and further future of the fashion industry. The footwear segment under it will remain in focus, since India ranks 2nd in the consumption as well as production of shoes. Lastly, this company being the first one to customise bridal shoes, it is going to have an advantage over the upcoming competitors.
Offers made, and the one accepted:
1. First, Vineeta Singh offered Rs. 20 lacs for 20% equity of the company, along iwth Rs. 15 lacs as debt. Anupam Mittal proposed to join in this deal too.
2. After this, both of them changed the terms of their deal and were ready to offer Rs. 35 lacs for 25% equity of the company.
They received counter offer from the founder’s side, where she asked for Rs. 35 lacs for 20% equity and then 23% equity. However, the final deal was done at 24% equity by offering the same amount.