Moonshine
Initial Ask – Rs. 80 lacs for 0.5% equity at a valuation of Rs. 160 Cr.
About the Company
Trying to bring out 10,000 years old culture back, the company produces mead – the oldest alcoholic beverage of India, which is made of honey. Having launched in the carbonated, contemporary and slightly sweet categories, they don’t have any added flavours in their product. Currently running their business in 4 states, including Bombay, Pune and Goa, they intend to start selling in 4 more states.
Incurring a cost of Rs. 35 on the product in Maharashtra, they sell it to the distributor at a handsome price of Rs. 140, which is sold to the consumer at Rs. 185. They’ve yet tried to gain traction only through low budget guerilla marketing, but now they want a presence through digital marketing. One unique feature of their packaging is that they’ve left it a blank space for the artists to show any creativity that they wish to.
Past performance of the Company
Starting their company in 2018, they made Rs. 2 crs in that year through their product. Following that, the company earned Rs. 3.47 Cr in the year 2019 and Rs. 3.72 crs in the year 2020, leaving an impact due to covid. They projected to make Rs. 9 Crs. by the end of the year 2021. They enjoy around 70% margins too.
Industry Overview
Bringing back the oldest form of alcoholic beverage back, meads are in trend right now. On the path of sustainability, these leave a small carbon footprint since it depends on bees and nectar already available on existing farmlands, unlike grains that are cultivated specifically for beer, rum or whiskey. This is helping out farmers as well, as they can earn money only through natural farming.
Over the past decade, this industry has slowly been creating buzz in the country, trying to capture the middle ground between coke and beer, along with competitors like Cerana Meads. Key market driver is the growing demand for premiumised, innovative and flavoured alcoholic beverages among the youth. However, low consumer awareness is the one of the major constraints of the industry.
Previous Equity Split/Investment
They raised about Rs. 12 crs. in the beginning by giving 35% equity of the company. They were about to indulge in Series A funding, when they appeared on Shark Tank. The remaining 65% equity is with the other 2 founders.
Offers made, and the one accepted:
1. Anupam Mittal offered to invest Rs. 80 lacs, as per their ask, but in exchange for2% of the equity.
2. He also offered them a deal, where all the 5 sharks, namely Ashneer Grover, Vineeta Singh, Peyush Bansal, Aman Gupta and himself come together by offering same amount of money for 2.5% equity of the company.
This was countered by asking for Rs. 1.5 Cr for 1% equity of the company. However, the sharks refused to come in a deal like this.