Twee in One
Initial Ask – Rs. 30 lacs for 7.5% equity at a valuation of Rs. 4 Cr.
About the Company
The company manufactures reversible and convertible clothing, which will target females in India. The clothing can be reversed and converted into 2 styles of clothing in the same garment. A lot of design issues might be faced in this arena. These products are very high in cost and therefore might not cater to the Indian Market.
The cost of kidswear ranges from Rs.1,300 to Rs.5,000 which is very high in costs as per the Indian Consumer.
The Price Point is not agreed upon by any of the sharks.
Past performance of the Company
The company recorded sales worth Rs. 5,70,000 in the period Aug-Oct 21. Their selling price is Rs. 15,000 with a cost price of Rs. 5,500, thus enjoying a good margin.
Industry Overview
The fashion industry is overcrowded with every other player entering the market without any hindrances, due to high number of manufacturers. Moreover, this industry has no patenting and therefore any format can be replicated by any major player in the near future.
Moreover, branding in the industry is very difficult and expensive at the same time. Moreover, the number of designs that are required to please the consumer increases the difficulty in the market. Moreover, the management of these many designs increases costing and restricts scalability.
The industry is also facing a great price war between the brands, which is the eventual killer of the brands in the industry. The margins are crunched and the CAC increases over time.
Offers made, and the one accepted:
No offers were made!