PDD Falcon
Initial Ask – Rs. 75 lacs for 3% equity at a valuation of Rs. 25 Cr.
About the Company
Circulating around eco-friendly stainless steel, this company manufactures innovative premium quality products which are non-toxic and food-safe. Currently having 300+ products in their portfolio like that of lunch box containers and steel sippers with steel straws, they are wholly Made in India brand.
Trying to become a steel based tupperware alternative to the households, their top products are vegetable choppers and new generation ‘cool’ sippers. However, their branding and marketing is not that good, for which they are seeking mentorship from the sharks.
Past performance of the Company
They earned a revenue of Rs. 2.72 Cr. in the year 2019-20, post which they bagged sales worth Rs. 2.42 Cr. in the year 2020-21. This year, till November, they recorded sales worth Rs. 2.42 Cr. and projected to reach Rs. 4.65 Cr. as revenue till the end of the financial year.
Industry Overview
It is known that an average Indian family utilises 200 kgs of steel approximately. The industry for just steel tiffin boxes is so humongous, that it is worth Rs. 5000 crores. Thus, the steel industry is capable of going on profitably till n number of years. Also, the stainless steel industry in particular is dominated by cookware and durables, thus making a great deal out of the whole steel industry.
However, currently, the corporate and business world is thriving upon fulfilling the needs of GenZs and Millennials, who may find these categories of products quite ‘uncool’. Thus, additional efforts are required to make the product attractive enough for the current generation.
Offers made, and the one accepted:
Ghazal Alagh was the only shark to offer them Rs. 30 lacs for 10% of the equity, along with the remaining 45 lacs as debt at the rate of 12% p.a. This was countered by asking for Rs. 75 lacs for 6% equity of the company, to which Ghazal responded by offering Rs. 75 lacs, as per their ask, but for 11% equity of the company. The deal was not accepted by the founders.