Shark Tank India Season 2 Episode 2 Watchout Wearables
|Company name||Watchout wearables|
|Ask||₹2 crores for 5% equity|
Watchout Wearables Founders
Abhishek Baheti is the founder of the company. He is a chemical engineer and gold medalist from Sardar Patel University then he did MBA and worked with Essar Steel and also worked with Pedalite industry. He did MBA in sales and marketing from SCMHRD, Pune. Abhishek was featured in the Shark Tank India Season 2.
About Watchout Wearables Brand
Watch out for wearables make smartwatches for kids. They are made on three fundamentals and these are safety, connectivity and curiosity. For safety, it has a GPS tracker and parents can track their child’s location with the help of it. The second important feature is connectivity as the child and parent can connect with each other through video calls and audio calls anytime and anywhere. The latest feature is curiosity. The watch comes with an inbuilt object detection scanner so that the children can scan objects to learn their meaning and definition and can have fun learning. The different thing about this watch is that it has a SIM slot whereas the other watches in the market do not have this feature. This watch is an independent device and can function in the absence of a phone. They launched this product in 2022 and now more than 3000 parents and their children use this product.
Abhishek Baheti’s vision is to offer a device to children that will keep them smart and safe as well. The straps of the watch are made of breathable soft silicon so that kids can wear it comfortably. The watch has elevated edges so if it falls the screen will not get damaged. There is a 0.5-megapixel camera so that selfies and video calls can be done there. There is a sim slot and a Nano sim can be inserted into it. An SOS button is there and if the child presses and holds the button for 3 seconds then the parents will get a notification on the last location and a 30-second surrounding recording will also be sent. The back of the watch has an anti-take-off sensor. The watch design is copyrighted. In the next launch, there is a watch for senior citizens but there is a slide difference in the safety features as it has an anti-fall alarm.
Ask by the pitchers of Watchout Wearables
The founder made an ask of ₹2 crores for 5% equity in the company at a valuation of ₹40 crores.
Other information about the company- The selling price of each watch is 10000. The estimated total addressable market is around 100 crores. In FY 21 to 22 the sales were 1.1 crores. In FY 22 to 23 years to date, the sales were 1.4 crores. In August sales were 25 lakhs and on July 22 the sales were 5 lakhs. EBITDA is 35%. Net margin is 25% the projected sales on September 22 are 30 lacs on October 22 the projected sales are 30 to 40 lacs. They make 500 units per month.
Offers and Counteroffer
Veenita and Anupam gave an offer of 1 crore for 10% equity at the valuation of 10 crores and one crore debt at 15% interest rate.
Abhishek gave a counteroffer of 1 crore for 5% equity.
Abhishek again gave a counteroffer of 1 crore for 7.5% equity and 1 crore debt at 15% interest rate
Watchout Wearables Final Deal
The final deal closed with Anupam and Veenita at 1 crore for 10% equity and 1 crore debt at 15% interest rate.