Namhya Foods
Initial Ask – Rs. 1 Cr. for 5% equity at a valuation of Rs. 20 Cr.
About the Company
Trying to build the first ever brand in the segment of ayurvedic preventive healthcare, this company has tried to blend in with the lifestyle of people by bringing out products like lattes, tea blends, breakfast cereals, etc. The company tries to cater the patients of diseases like diabetes and PCOD with the help of ayurvedic products, made with 70+ years old recipe, without any added preservatives.
They have their products differentiated on the basis of medicinal benefits, and want to build a brand for human consciousness and awareness. Making around 36% sales from their website, they have recorded around 50% repeat customers for their products. It is such that about 100 girls got their PCOS recovered with the products of the company.
Past performance of the Company
The company has made sales worth Rs. 54 lacs in the first 6 months of the financial year 2021-22, of which last month’s revenue figure is Rs. 16 lacs. They operate at a fancy EBITDA of 34%, where a product is manufactured at a cost of 125 and sold at a price of 579.
Industry Overview
Every 1 person among 12 are suffering from diabetes today. 1/5 girls are facing POCD. Thus, rising awareness about the importance of a healthy lifestyle, increasing preference in favour of chemical-free natural products, as well as favourable government initiatives have led to the expansion of the Ayurveda market in India. Trying to incorporate ayurveda in people’s lifestyle, this company has launched tea based products, but it cannot be compared to brands like Tata in this segment. Ayurveda is in USP here. This market is expected to growth at a CAGR of approximately 16% for the next 3 years.
Competition and copying of the products can be a little difficult here, because of the main raw material procurement: ‘Ashoka Chhal’. Sourcing of the real raw material amongst the false ones is quite daunting.
Previous Equity Split/Investments
The founder has made a self investment of Rs. 20-25 lacs till now.
Offers made, and the one accepted:
1. They first got a deal from Anupam Mittal and Vineeta Singh together, where they offered Rs. 50 lacs for 30% equity of the company along with Rs. 50 lacs as debt.
2. Aman Gupta joined the club by offering Rs. 50 lacs for 15% equity along with Rs. 50 lacs as debt.
This was countered by asking for Rs. 50 lacs as debt, but another Rs. 50 lacs for 7% equity.
Aman tried to negotiate and offered the same amount for 12% and later 10% equity, along with the same amount as debt. Finally, the deal was closed at 10%