Bamboo India
Initial Ask – Rs. 80 lacs for 4% equity at a valuation of Rs. 20 Cr.
About the Company
Bamboo India is the first company to enter the bamboo toothbrush market. Therefore, it has a market of Rs 5000 Cr. open to it. The company has mastered the acquisition of raw material and labour at the lowest possible costs to increase the gross profit margins to a huge level.
Moreover the company has international connections where such activities are not yet popular, hence leaving a wide market open for the company there as well.
As the product is small in size and low in weight, it’s transportation is also not a problem for the company
Previous Year Performance
The company has sold 40lacs toothbrush, in over 18 countries.
The revenue for the previous year was Rs.2.8Cr., and year-to-date, they have done Rs.2.2Cr.
The Gross Margins are around 66.67%.
Industry Overview
Bamboo is a very attractive industry because of low costs and high utility. At the same time, India has high levels of Bamboo Production and with the cheap labour complementing high production, the total production costs in this industry are very low, thus keeping the gross margins high.
Moreover, Bamboo was a part of the old Indian Culture reflecting the Rural Indian habits.
With the government’s initiative to stop production one time plastic use materials, the usage of Bamboo brushes can we very widely pushed.
Moreover, no other company is playing in this arena, which will give any new company in this area a lot of space to market in!
Offers made, and the one accepted:
1. Aman offered Rs.20lacs for 4% of the company, and the remaining 60lacs as debt
2. Peyush Bansal offered Rs.80lacs for 20% Equity.
3. Ashneer and Anupam joined hands to offer Rs.40lacs for 8% and Rs.40lacs as debt
5. Aman joined Peyush in his offer. All these offers were countered for Rs.50lacs for 3% and Rs.30lacs as debt.
6. Ashneer and Anupam revised their offer to Rs.50lacs for 6% and Rs.30lacs as debt
7. Aman and Peyush offered Rs. 50 lacs for 5% and the debts was same
8. Ashneer and Anupam undercut Aman and Peyush to offer the same for 4%
9. Aman and Peyush matched the above offer
10. Ashneer and Anupam undercut themselves again by offering Rs.50lacs for 3.5% and the same debt, which was accepted