Altor
Initial Ask – Rs.50 lacs for 5% equity at a valuation of Rs.10 Cr.
About the Company
A company for smart headgears, they have tried to reach to the roots of the problem of road accident aid. This company works on the technology that goes into the making of a smart headgear, for detection of accidents and contacting emergency numbers. With more than 100 units sold, this company wants to bring a revolution in the road safety industry. They have an app built for establishing a connection between one’s phone and their helmets while driving.
Their business actually constitutes of licensing arrangement with big players for working on just the tech side of these smart headgears.
Past performance of the Company
They are currently operating at low margins with a selling price of Rs. 5000 at a cost of Rs. 4000. Expectations are that with the improvement of world economics, they can cut down their costs to Rs. 2500 levels, thus ensuring good profits.
Industry Overview
The industry is expected to grow on account of the strict government regulations coupled with the rise of IoT in wearables. Reduction in the use of smartphones is another key driver in this segment. Also, growing sales of two wheelers complement this sector to a great extent. 18.6% CAGR is the current growth estimation.
There have been a few laggards in this industry due to the global supply chain disruption on account of Covid-19. However, post covid prospects of the sector can help the company increase their margins to a great extent.
Offers made, and the one accepted:
1. Namita Thapar first offered the asked amount i.e., Rs. 50 lacs for 20% equity in the company.
2. This was followed by Aman Gupta offering the same amount at 10% equity.
3. Other 3 sharks, Ashneer Grover, Anupam Mittal and Peyush Bansal joined hands to offer the same amount for 10%.
4. To this, Aman Gupta and Namita Thapar joined hands too for 10% equity.
All these sharky offers were countered by giving away 7% equity of the company for the same amount of money, to which Namita and Aman agreed, thus closing off the deal.