Carrgreen
Initial Ask – Rs. 50 lacs for 10% equity at a valuation of Rs. 5 Cr.
About the Company
The microplastics consumed along with the food served in the plastic containers have capability to cause cancer. This is the reason this company has come up with its alternative, boxes made of food grade board. Along with that, they offer perforation for the same, spoons and plates can be extracted from the box itself. They have deals with huge clients like that of Haldirams, Balajee, etc, who use their plates and spoons. They have monthly sales of around 4-5 lacs spoons. They even want to exploit the space of Zomato and Swiggy.
However, their product may not be useful everywhere, like that of greasy and oily substances, where leakage is a possibility. Also, scalability of this kind of product is a little difficult.
Past performance of the Company
Their spoon business earns Rs. 80,000-90,000 monthly revenue. The boxes segment can be analysed through its selling price of Rs. 15 and its cost price of Rs. 11.5.
Industry Overview
This Industry has a limited scope because this does not solve a very real problem. The problem is limited to a very small number of people and does not exactly serve the purpose of a plate or a spoon. Thus, gaining high volumes in this industry is highly improbable and until a business has high volumes, it won’t be able to gain hefty profits in this industry.
Offers made, and the one accepted:
1. Anupam Mittal and Peyush Bansal together offered Rs. 50 lacs for 25% equity of their company.
They countered by asking for Rs. 50 lacs at an equity of 12%.
2. To this, the two of them came down at 20% equity for the same amount of funds, and the deal was sealed here.