Mommy's Kitchen
Initial Ask – Rs. 90 lacs for 3% equity at a valuation of Rs. 30 Cr.
About the Company
Freshly baked, thin crust, best quality pizzas being the product delivered, this company has their outlets in Kolkata, Mumbai and Bengaluru. They operate in cloud kitchen infrastructure, which is owned by them at all the three places. With just referral marketing, they’ve tried to build their brand name with the help of mouth-to-mouth word spread. They are yet to explore the platforms like Swiggy and Zomato, because they don’t want to give away 28% of their revenue to these platforms. Plus, the fact that they serve only within a radius of 6 kms is a worrisome factor for them.
They have not yet come out of the family bonds for expansion of their business. Already having an idea of the costs of setting up cloud kitchens some where outside, they wanted sharks to guide them with the expansion of their business.
Past performance of the Company
The company has so far done a sales of Rs. 1.15 Cr. since 18 months of its inception. On an average, they get monthly sales of Rs. 6.5 lacs from all the cities, of which last month’s figure is Rs. 4.5 lacs. The company used to get more orders during the lockdown.
Industry Overview
With the increasing consumerism, more women employed and the changing lifestyle of people, the pizza industry has been booming ever since, recording a CAGR of 26% in the last 5 years. Not only this, the lockdown and pandemic helped the sales surge to a very high level, which does not know going back.
In the midst of recall brand names like Dominos and Pizza Hut, the small homegrown brands have also been trying to get the limelight through their good quality, low price pizzas. However, expansion and scalability like the above mentioned brands is difficult to achieve, even with the growing consumerism and growing incomes of people.
Nevertheless, industry promises good results as it depends highly on the age and mindset of the generation, which is not that aware with self cooking.
Offers made, and the one accepted:
No sharks offered a deal.