Thinkerbell Labs
Initial Ask – Rs. 30 lacs for 0.5% equity at a valuation of Rs. 60 Cr.
About the Company
This company has launched a self learning remote controlled braille literacy device: Annie with all the new content and downloadable study material (through on air content). It is a highly compatible device, which is important to develop cognitive learning in a child’s brain, before he/she can understand other modes of media. Their target is to tap international markets, for which they have already gotten a contract with a company in America, the value of the contract being Rs. 13 Crs. They even have investors like Anand Mahindra on board with them. Their current business model is to sell just to Governments, it is not B2C.
However, there is too much dependence on the big American customer. Also, the pricing of $1000 is too much for an Indian consumer, which requires the business model to change from hardware selling to making money from the software.
Past performance of the Company
The company had already done sales worth Rs. 3.5 Cr. till November 2021 and is projecting their revenue for the year to reach Rs. 5 Cr. They are also targeting Rs. 20 Cr. sales for the next financial year.
Industry Overview
India has approximately 20 lac children, who have an impaired visibility, therefore having a need of this literacy device. The braille literacy rate here is only 1%, far lower than the regular literacy rate of 77.7%. This presents a significant problem; without braille education, the quality of life for visually impaired people is significantly decreased. Without braille literacy, blind people are often unable to understand or use written communication. As a result, they require an interpreter to read and write for them, which can limit their employability.
Not just in India, it is a big problem globally too. The US itself has a 10% literacy rate. Thus, the problem at hand is quite big, thus making the industry for this company bigger and bigger. But, it is mandatory to think from a viewpoint that this device reaches the end consumers. For this, Ashneer Grover suggested to take this up session wise, where a consumer is paying through QR and is getting 1 hour slot on the device. This will really revolutionise this space and industry.
Previous Equity Split/Investments
They have already diluted 35% of their company’s shares to other investors.
Offers made, and the one accepted:
1. Anupam Mittal first offered Rs. 30 lacs for 2% stake in the company.
2. Peyush Bansal gave his own offer: Rs. 1 Cr. for 5% stake in the company.
3. Namita Thapar joined this club, by offering Rs. 30 lacs for 1%. Peyush and Anupam were ready to match this offer.
4. To this, Namita offered the same amount for an equity of 0.75%. This was countered by asking for all 4 sharks, i.e., the above mentioned along with Ashneer Grover to come onboard with Rs. 1 Cr. for 2.5% equity.
5. The sharks proposed to offer Rs. 1 Cr. for 4% equity, where all are coming in.
This was again countered by asking for Rs. 1.2 Cr. for 3%. At this point, Ashneer was out.
6. Peyush Bansal offered Rs. 1 Cr. for 3% alone, but that was rejected.
7. Final offer made by the other 3 sharks was Rs. 1.05 Cr. for 3% stake.
The deal was sealed at this offer.