Shades of Spring
Initial Ask – Rs. 3 Cr. for 1% equity at a valuation of Rs. 300 Cr.
About the Company
Flower gifting business, for marriages, festivities, expression of thoughts or for any other good reason, is the aim of this company. They have around 300 plus varieties of farm fresh flowers, which makes the experience very good. Their flagship product is the DIY Flower Box, which reaches the doorstep of the customer within 48-72 hrs of harvest, directly from the farms. This costs 350 per delivery, which is quite an impressive price.
This company earns 50% of their revenue from subscriptions, which consists of the self consumption segment (80%) and gifting segment (20%). Another 50% comes from the bouquet market. However, they came in with a very steep valuation, which made everyone disinterested.
Past performance of the Company
In 2021, till November, they recorded Rs. 9 cr. in revenue. In the year 2020, sales worth Rs. 3.5 cr. was recorded, whereas in 2019, they earned Rs. 50 lacs, when business was mainly carried on through WhatsApp. They enjoy 29% in gross profit margins, as subscription business earns 20% margin and bouquet business earns 40% margins.
Industry Overview
The Gifting Industry in India is worth Rs. 50 lac Cr, out of which flowers make a very big business. It is known that about 24 lakh people are online every day just to buy gifts for their near ones. Luxury floral gifting alone accounts to 30% of the total gifting ecosystem. Thus, the company has a lot to capitalise on.
However, it has been seen that although India has a largest consumer base, floral gifting has not been treated as a lifestyle product and floral options are not available according to the seasonality, which is a major gap in the industry. This makes the flower market a niche market. Plus, subscription based revenue models are not capable of easy capability.
Offers made, and the one accepted:
No sharks offered a deal.