Bluepine Foods (P) Ltd.
Initial Ask – Rs.50lacs for 10% equity at a valuation of Rs.10Cr.
About the Company
The company is involved in manufacture of Handcrafted momos which are frozen and sold on shelves, with a shelf life of more than 4 months. The company is involved in supplying to HORECA(Hotels, Restaurants and Cafes) and also operates a front Quick Service Restaurant(QSR) named Yankees. A title “MOMO MAMI” has been given to the owner by their customers for the high quality momos that the company manufactures.
Past performance of the Company
The Company has sold products worth Rs.3.60Cr. over 5 years. Started at Rs.9lakhs in year 1 to 27lakhs in second, 47 in third and 74 in fourth. In the fourth year, Yankees(the QSR) opened and revenue rocketed to 1.09Cr in the fifth year. In 2020, the sales were down to 95lakhs and they have done 50lakhs in 2nd Quarter of the current year.
Industry Overview
Fast food industry is undertapped in India, with it being 5% of all food services. The global average is at around 20%.
Since this is a long shelf life product, it can be used by QSRs in a flexible manner. Main competition ill be coming from fresh serving momo QSR- both chain and local. I think they might face some difficulties in replacing localised momo shops. Chains will have the advantage of good logistics as well. Difficult outlook for the company.
Offers made, and the one accepted:
1. Ashneer Grover offered 50lakhs for 7% of the company
2. Vineeta Singh offered 50lakhs for 20%
3. Aman joined Ashneer to offer 50lakhs for 12% – This was countered for 10% or capital was raised to 75lakhs for 12%.
4. Finally, All three sharks came together to get the deal for 16% of the company in change for Rs.50lakh.