The Sass Bar
Initial Ask – Rs. 40 lacs for 8% equity at a valuation of Rs. 5 Cr.
About the Company
A concept gifting artisanal brand of dessert soaps, this company makes its products in a fashion that people will be confused about whether they are soaps or desserts. Not only soaps, but also having scrubs and candles in their product portfolio, their products are synonymous with travel, food, music related concepts.
This company wants to cater, not in the skincare segment, but in the gifting segment. Making their packaging as the unique selling proposition, they believe that soaps are their category of competency. They derive 80% of their business from their soaps, whereas the other 20% comes from the other categories. Their mission is to deliver their products PAN India, for which they seek mentorship from the sharks.
Past performance of the Company
They made sales worth Rs. 30 lacs in the first 6 month of the financial year of 2021-22, of which October 2021 saw a revenue of Rs. 7 lacs. They enjoy a gross profit margin of 65% and are able to convert 55% as net profits.
Industry Overview
The soap industry of India accounts for almost 50% of the manufactured goods under the FMCG sector. It is expected to become a $4.4 billion worth market by 2026, on the back of rising hygiene concerns.
However, this brand is more into the gifting industry than into the soap industry. The Indian gifting industry is expected to become worth $159 million by the year 2025. In this segment, the personalised and handmade gifting segment has been seeking traction due to a shift towards customisation. Pandemic led to the uprisings of innumerable businesses in this category.
Thus, clubbing the prospects of the two segments, we can expect good results of the company in the future.
Offers made, and the one accepted:
Anupam Mittal and Ghazal Alagh were ready to invest Rs. 40 lacs for 40% equity of the company, but under the condition that they need to focus on bathing products and make a brand out of it. This was countered by asking for the same amount for an equity of 30%. This was negotiated by the sharks, where they offered the same amount for 35% equity of the company. The deal was closed at this offer!