KG Agrotech
Initial Ask – Rs. 30 lacs for 10% equity at a valuation of Rs. 3 Cr.
About the Company
Coming from the small town of Malegaon, Jugadu Kamlesh made an entry to represent the whole farming community of our country through this company. Kamlesh along with Naru, worked on an innovative machine for 7 continuous years, which can replace the heavy 17 kgs tank for spreading out pesticides. This was done to prevent the farmers from carrying this on their back and being prone to diseases from the chemicals in those pesticides.
This product had its own unique features, like tubeless tires to support the texture of the farming lands, rotatable front wheel, removable parts and its light weight. This product could be further improved to accommodate seed dropping or ploughing. Jugadu Kamlesh received multiple offers from various companies for this product of his, got several orders for the product after the product demo got viral through a YouTube video. However, he lacked funds for the production of the same, and thus could not do anything except for creating a prototype.
He not only has this invention, but several other ongoing projects, this is the reason why he is called ‘Jugadu’ Kamlesh. He wants to buy several machines for the same, carry on production of these units, and wants to take advantage of economies of scale by producing more and more of these at lesser prices.
Past performance of the Company
He hasn’t made any sales yet, but has decided on a selling price of Rs. 12000, at a cost of Rs. 8000.
Industry Overview
Approximately 70% of the Indian population is made up of farmers, out of which 50% are poor. These people can’t afford to buy automated devices and complex structured machines invented for making farming easier. Responses to questionnaires have shown that 68.6% farmers sprayed pesticides themselves and were thus directly exposed to excessive sweating, burning/stinging/itching of eyes, dry/sore throat, and excessive salivation, all more prevalent among sprayers. This is where this company enters, and this is the population that Kamlesh wants to cater.
There have been other players in the market addressing the same issue, but with the help of products like drones, which most farmers cannot afford to buy. Thus, there is a huge market for simpler and farmer-friendly products like this one.
Previous Equity Split/Investments
Not a proper equity split, but he made it very clear from the beginning that Naru has a share of his company along with himself.
Offers made, and the one accepted:
While every other shark promised to help him with the government grants and subsidies, Peyush Bansal was the only one to offer him Rs. 10 lacs for 40% equity of his company, keeping in mind Naru and preserving 10% equity for him. He offered to give him the rest of the amount in the form of interest free debt.