Let's Try
Initial Ask – Rs. 45 lacs for 2% equity at a valuation of Rs. 22.5 Cr.
About the Company
Every snack and junk food contains palm oils and artificial ingredients. Wanting to change the food habits of children, this company has come up with healthy snacks containing quality ingredients. Their product portfolio contains 50+ healthy snacks. For example, one of their products are Bhujia, which contains flax seeds. All their products are made of 100% groundnut oil and without any preservatives. Currently operating through 600+ stores, e-commerce platforms and their own website, they have excellent packaging for their products. Peanut party mix makes their top selling SKU. Having a 15% higher price than that of Haldirams, they make their 90% sales through direct modern trade and general trade (60%). However, their branding and marketing needs a lot of work.
Past performance of the Company
They have yet earned revenue of about Rs. 16 lacs on a monthly basis. It is projected that they will reach Rs. 40 lacs per month revenue soon. They enjoy 60% as gross profit margins and 25% as net profit margin.
Industry Overview
This Healthy Snack sector is already been explored by brands like Ketofy and TooYumm. Although this sector is yet to be saturated and because people and becoming more health conscious because of the Pandemic. Thus, this industry has a lot of potential to grow. The shift from unhealthy snacks to healthy snacks will take time but eventually it will in the Long Run.
Offers made, and the one accepted:
1. Anupam Mittal and Aman Gupta came together to offer Rs. 25 lacs for 10% equity of the company and Rs. 20 lacs as debt.
This was countered by asking for the investments, wholly in the form of equity.
2. Anupam and Aman then revised their offer to Rs. 45 lacs for 15% , which was again countered to ask for the same amount at 10% equity. They finally came down to 12%, where the deal was closed.