Magic Lock
Initial Ask – Rs.1.2 Cr. for 8% equity at a valuation of Rs. 15 Cr.
About the Company
To solve the cases of LPG gas leakage in the country, the company Magic Lock has come up with a product, looks like a small bullet, but saves people from the blasts. This product, if attached to the gas cylinder can detect the leakage in first few seconds itself and lock the cylinder. The vision of the company is to make this patented product available at every residential.
The founder of the company says that the plan ahead will consist of the manufacturing of a rubber pipe, in which this product can be pre-installed which will then be used to connect the gas cylinder with the stove. Currently, they are running on B2B model, where 85000 units have been sold in total.
Past performance of the Company
The company has so far done sales worth Rs. 14 lacs. The product sold here is sold at a price of Rs. 70 in B2B model, and at that of Rs. 499 in B2C model. However, the cost of the product is Rs. 10 only, thus enjoying heavy margins of profits.
Industry Overview
There are about 45 crores LPG connections all over India, all of which contains 14 kgs of gas. Now this leads to approximately 700-800 gas blasts every year, just from the residential side of it, let alone the commercial and industrial cases. Thus, these factors make such a product and its market quite impressive and needed.
However, government approvals can be a major hindrance in the business here. This, along with the fact that companies like Indraprastha Gas won’t let anyone install any kind of products in the gas pipes doesn’t make the future of this market look bright. Lastly, clearly proven results are hard to achieve here.
Offers made, and the one accepted:
No sharks offered a deal.