Xavier's Finance Community

Raising Superstars

Initial Ask – Rs. 1 Cr. for 2% equity at a valuation of Rs. 50 Cr.

About the Company

Raising Superstars has created content which will help the parents to monitor their children and help the early brain development of their children, between ages of 0 to 3 years. 
The presentation by a child customer was very fascinating and impressed all the sharks. The company has provided materials like books, tiles, playtoys etc, using which the parents can guide their children. Further, they have a platform on which the parents can watch videos and accordingly help their children out in their everyday tasks. 
This company has made sure that the child has to face no screen-time and has a very playful and enjoyable experience. 
The company has an average order value of Rs.7000, on which the company grosses 70%.

Past performance of the Company

The company is currently doing business at a rate of Rs.1.10 Cr per month.

Industry Overview

The entire child education industry is filled with players from all around the world. Starting from small local playschools, to big players in the industries, it is very difficult to make a name for a new company.
Though this company has explored the age categories of 0-3, it is very difficult to convince parents to start teaching their parents at such an early age. This industry will require high levels of Spreading awareness, which means the customer acquisition cost will keep on increasing and therefore margins will keep on decreasing. 
This is a huge capital consuming industry as content needs to re-created every once in a while.

Offers made, and the one accepted:

1. Initially Ashneer offered, Rs.1Cr. for 5% of the company
2. Aman undercut ashneer at Rs.1Cr. for 4%.
3. Finally, both joined hands to finalise the deal at Rs.1Cr for 4%.

Final Deal - Rs. 1,00,00,000/- for 4% equity

Invested by: Aman Gupta and Ashneer Grover