Shark Tank Freakins
In this episode of Shark Tank India Freakins, a fast fashion apparel brand for Indian women presents the pitch. Will the founder get a deal from the sharks? To know about the deal read till the end.
|Founders||Punnet Sehgal and Shaan shah|
|Ask||₹ 70 lakhs in for 1% equity|
Puneet Sehgal, the CEO, is from Mumbai, and Shaan Shah, the marketing operations and CMO are from Ahmedabad.
Shaan’s family supported him. He is from a textile business background. He along with his uncle Sachin started to collect the same fabric and raw materials to make products for themselves.
Puneet was working as the chief operation manager in Nykaa. Then he met with Shaan. Then they decide to make something big together.
About the company Freakins
Denim is very popular in the fashion market. But the denim sector has not been able to provide clothes according to body shapes, weather, and needs of people. It is also true that the denim market is serving more men than women. So in order to solve this problem they have started their company Freakins. Freakins is such a denim brand that launches different styles of products per week for women of every body shape and size. They are GenZ-focused brands and have 35+ categories. They have 1500 styles. For the last 3 years, they have fulfilled 2.5 lakhs orders. Their products are available on their own website and marketplaces like Amazon, Myntra, Nykaa, and Meesho. 54% of equity is with Puneet, 36% is with Shaan, 5% is with Shaan’s uncle and the remaining 5% is with ESOPs.
Ask by the Owner Freakins
The owner asked 70 lakhs rupees for 1% equity in the company.
Freakins Sales And Revenue
In the financial year 19-20 the sales were 90 lakhs rupees, in 20-21 the sales were 6.7 crore rupees and 21-22 the sales were 10.4 crore rupees. The average monthly net sales is 90 lakhs rupees. In the year 19-20 it was breakeven. In the years 20-21 the loss was 2.1 crore rupees. In the year 21-22 the loss was 3.8 crore rupees. In the year 22-23 for the last 6 months, the loss is 60 lakhs. The gross margin is 63%. In the month of September ’22 the net sales were 1.05 crore rupees and the marketing spend was 12 lakhs rupees.
Healthy Binge Shark Tank
Offers and counter offers
Vineeta offers 50 lakhs rupees for 2.5% equity and 20 lakhs rupees debt at 12% interest rate with a condition that this investment will be a part of a bigger investment round.
Pitchers counter offer 50 lakhs for 2% equity and 20 lakhs rupees debt at 12% interest.
Freakins Final deal
The deal was finalized with Vineeta for 50 lakhs rupees in exchange for 2.5% equity in the company..