Isak Fragrances
Initial Ask – Rs. 50 lacs for 8% equity at a valuation of Rs. 6.25 Cr.
About the Company
Already coming from a family who has been manufacturing perfumes since 160 years, the founder of this company saw the prospects of ‘attar’ in the perfume industry and thus was born ‘Isak’. This is a company which sells premium perfumes and attars, which are customisable, artisanal and unisex. They operate through select retail stores in the offline mode, while sell their products of their own website. Their unique selling proposition is the long-lasting nature of the perfumes, which have been manufactured keeping in mind India’s climate.
This company has even launched natural products, like the fragrance of sand during first rains, trapped in a small bottle. However, now they want to scale their business, because of which they seek to raise investments.
Past performance of the Company
They made Rs. 18 lacs during the first 5-6 months of the financial year 2021, of which they earned Rs. 3.5 lacs in the month of October. Having a cost of Rs. 350-600 in each product, they have priced their product quite high, example being Rs. 3200 per bottle.
Industry Overview
The fragrance market in India is anticipated to grow at a CAGR of 16% by the year 2024. Demand for luxury products, like that of perfumes have increased with the growing disposable income of the individuals, along with the growing urbanisation. The other reasons for the boost in the fragrance market are rising personal care and affordable pricing.
However, this company is more into attars, which goes long back. The market is not very famous for the same, thus opening up challenges for the company. Plus, the premium pricing does not make it very famous among the consumers. However, their segment of natural products can become trendy because of growing consumer awareness and less competition.
Previous Equity Split/Investments
The founder, having a self investment of Rs. 9 lacs and an investment of Rs. 8 lacs from her aunt, has 50% of the company currently. The other 50% of the company is with her aunt.
Offers made, and the one accepted:
Peyush Bansal, being the only one to offer, offered to invest the amount asked, i.e., Rs. 50 lacs, but for equal share in the company, i.e., 50% equity of the company. The offer being non negotiable, was countered by asking for the same amount at 30% equity of the company. However, the deal closed at original terms only.