Wakao Foods
Initial Ask – Rs. 75 lacs for 5% equity at a valuation of Rs. 15 Cr.
About the Company
Bringing jackfruit, one of the most ignored fruits, back in our culture, this company offers a range of ready to cook/ready to eat food items based on that fruit only. They use tender jackfruit, which is neutral in taste and very fibrous. This is used to make any dish taste good for vegetarians, feel good for non-vegetarians and fulfill the needs of their vegan lifestyle. Made without any preservatives, these products have a shelf life of 12 months and need no refrigeration.
They have already received calls and have tied up with Hilton, IBs, Oberois. But, the founder wants to make the business D2C and move into the HoReCa segment. With the aim of making this brand name synonymous with Jackfruits, they want to seek mentorship of the sharks to make the company a big name.
Past performance of the Company
Their 10 month sales since inception has been worth Rs. 60 lacs with a gross margin of 50%.
Industry Overview
Jackfruit is one of the most ignored fruits ever produced: 80% people have eaten jackfruit some time or the other, still no one understands the prospects of the same. Almost about 1.6 million tons of jackfruits are produced every year in India, out of which 75% is wasted. Based on these stats, the food based industry has the potential to flourish, backed by jackfruits.
Apart from jackfruit, there are other dimensions to the industry analysis of this company: vegan lifestyle and ready to cook/eat segment. Veganism has grown like it has no bounds in India. Already 75 million people have turned vegan in India. This acts as another positive factor. Along with this, the changing habits and preferences of people has made the growth of the RTC/RTE market evident.
Offers made, and the one accepted:
1. First offer was made by the three women entrepreneurs of the shark tank, Ghazal Alagh, Vineeta Singh and Namita Thapar, where they offered Rs. 75 lacs for 30% equity of the company.
2. Post this, Peyush Bansal also offered to invest Rs. 15 lac for 5% equity of the company, along with Rs, 60 lacs as debt at 12%. He even gave another offer, which was to invest Rs. 25 lacs for 10% equity of the company along with the remaining money as debt @ 12%.
Counter offer of Rs. 75 lacs for 15% equity was put forward by the founder in front of the girls, to which they responded by offering the same amount, but at 21% stake.
The founder even countered by asking for Rs. 1 Cr. for 20% equity of the company, to which the sharks again responded by offering Rs. 75 lacs for 20%, but this time Vineeta was out.
Seeing this, the deal was closed at Rs. 75 lacs for 21% equity, where all three joined the company!