Beyond Snack
Initial Ask – Rs. 50 lacs for 2.5% equity at a valuation of Rs. 20 Cr.
About the Company
Trying to revolutionise the banana chips sector by standardisation and hygiene, this company aims to put banana chips at an equal stature with that of potato chips. They produce chips that are equal in thickness, are of thin slices and of smaller size. There are multiple local vendors, selling banana chips in those transparent packages, but the hygiene and the taste that this company brings about cannot be competed with. With the confidence that Lays will come up to the owner in order to acquire the brand, this company has plans to launch a Rs. 30 packet for grabbing a greater audience. The gross margins can be increased to 80%, given the yield is also increased to 35%.
Past performance of the Company
Having earned Rs. 20.6 lacs from the sales in the month of October 2021, the selling price of one packet of the chips is Rs. 60. They earn a gross profit margin of 55% in the online platforms and 48% through the physical stores.
Industry Overview
This sector considers both the health and the taste aspect of banana chips. Generally, Banana chips is made by local players where hygiene is not a guarantee. Thus there is no standardization in this Industry and no brand that produces healthy banana chips specifically. Players like Haldirams’ do make Banana Chips but that is not their speciality or focus. So this industry is a great opportunity for growth. If the customer is assured that he/she is getting banana chips which is manufactured hygienically then he will shift from the local sellers. Thus, this can capture a lot of the snacks market.
Previous Equity Split/Investments
The founder himself invested Rs. 70 lacs in the business, along with his father. Later, he even raised Rs. 1.4 Cr. for a dilution of 15%.
Offers made, and the one accepted:
1. Anupam Mittal was the first one to make an offer of Rs. 50 lacs for 20% equity of the company.
2. But after listening to his previous investments, Anupam was joined by Peyush Bansal to offer Rs. 50 lacs for 10% equity.
3. But, at this moment, Aman Gupta and Ashneer Grover took the game away wholly by offering Rs. 50 lacs for 2.5% equity of the company, exactly as per his ask.