Gold Life - Anti Suicide Fan Rod
Initial Ask – Rs. 50 lacs for 5% equity at a valuation of Rs. 10 Cr.
About the Company
The company has inserted a spring in the fan rod. If the fan gains excess weight, the spring of the fan will come down and the person who is trying to hang will come to the ground, without the fan hitting the person in the top.
The company has supplied these rods to hotels, hostels, jails and colleges to stop suicides in such places.
The company aims to eventually move into fan manufacturing and a make wholesome fan brand.
The company has installed these rods in IIM Ahmedabad and now are getting references from other IIMs.
Past performance of the Company
The company earned in its 1st year (2017), Rs. 5 lacs from its sales. This was followed by the revenue of Rs. 16 lacs in the year 2018 and that of Rs. 35 lacs in the year 2019. The covid year saw sales year Rs. 10 lacs, and the financial year 2021 saw sales worth Rs. 15 lacs till November, but is expected to hit TRs. 60 lacs by the end of the year. Gross margin is 45% and their net profit margin is 25%.
Industry Overview
As per the national records bureau, there have been more 100 suicides everyday, and most of these suicides have been by hanging from the fan.
Every room today has a fan, and all hostels, hotels, colleges, and jails are probable experience suicides.
With increasing awareness in education, the number of colleges and hostels are increasing. Moreover, due to increasing competition in the education industry, the pressure on the students, the number of student suicides is rising everyday.
Offers made, and the one accepted:
- Peyush offered 10 lacs for 10% and the remaining 40 lacs as debt @12%, and will be open for further cash burn.
- Further, Vineeta and Ghazal offered 50lacs for 30% equity.
Peyush also agreed to match the above offer.
The counter was to get all three sharks at 50lacs for 30%, which was accepted.