Thea and Sid
Initial Ask – Rs. 80 lacs for 7% equity at a valuation of Rs. 11.43 Cr.
About the Company
A ring making business for the GenZ, they make excellent quality rings using 925 sterling silver and 6A grade cubic zincota. They even provide a ring sizer. They provide other services with their products: after sales services and relationship advice. Their aim is to make a more vibrant and young experience for youth, by providing low budget but beautiful rings.
The founders have another company named Adastra Jewellery, which is mainly into the export business of all kinds of jewellery. Having a target audience of 18-24 age girls and boys, they want to make this brand synonymous with everyday jewellery to them. They even have a full fledged manufacturing unit, which helps them achieve efficiency.
Past performance of the Company
Their export business, Adastra recorded a sales of Rs. 10.5 lacs in the month of October, 2021. Covid year 2020 saw sales of Rs. 2 Cr. Coming to the current business, they report monthly sales of Rs. 1.3 lacs. Here, their selling price of Rs. 1500-6500 against a cost of Rs. 350-850 makes them earn a gross profit margin of 75-90% and net profit of 30%.
Industry Overview
Jewellery industry at large contributes significantly to India’s GDP and exports, the figures for 2020 were 7.5% and 14% respectively. But, the jewellery industry is divided into 2 segments: one which is all expensive, like that of Tanishq and Kalyan Jewellers brand, the other which is used as everyday jewellery. The everyday jewellery industry flourishes because of its target consumers, who get their needs fulfilled at a comfortable price, along with good quality. The raw materials used here are meant to be able to cater to all groups of people, who can’t afford to buy the first category of jewellery.
However, the authenticity of the first category is more powerful to let this industry become dominant.
Offers made, and the one accepted:
No sharks offered a deal.