How is ASSEMBLY doing after Shark Tank India?

Founders: Aditya Khanna and Mohit Garg
Business: Luggage
Ask: ₹85 Lakhs for 1% Equity
Valuation/ Networth: ₹85 Crores
Funding: No Deal
Sharks: No Deal
Episode: Season 3 Episode 15

ASSEMBLY Shark Tank India Pitch:

ASSEMBLY, an Indian startup, featured on Shark Tank India Season 3 Episode 15. They manufacture function-based luggage with a simple yet practical design philosophy. The founders added that their products are well-designed as well as budget-friendly. They have sold over 2 Lakhs products over the past 3 years. Their vision is to become India’s biggest thoughtful travel store within the next 3-5 years, and to fulfill this dream, they sought an investment of ₹85 Lakhs for 1% of their company, valuing the business at ₹85 Crores.

ASSEMBLY founders claimed that they are priced comparatively in the luggage market and have a huge competitive price advantage over legacy brands. They had 11 SKUs available in different colors. All their sales come from online channels through their website and marketplaces. 40% of their revenue comes from their website, 50% from marketplaces, and the rest from B2B sales.

ASSEMBLY Financials/Revenue during Shark Tank India:

ASSEMBLY made a net revenue of ₹2 Crores in October 2023 and has made ₹11.5 Crores in net revenue by October of FY23-24. The founders shared that they are projecting to close the year between ₹25-30 Crores. In their first financial year, FY20-21, they made ₹55 Lakhs, followed by a growth rate of 300%, closing FY21-22 at ₹2.2 Crores. They closed the last financial year of FY22-23 at ₹11 Crores. They are hoping to reach ₹80 Crores net revenue in the next 18-24 months.

ASSEMBLY also shared their unit economics as follows: For ₹100 worth of sales, they pay ₹15 in taxes, ₹42 for COGS, ₹8 for shipping, and ₹20 for marketing, leaving them with a contribution margin of ₹15. As of October 2023, they are at a breakeven point but they were burning money prior.

The company raised a seed round 18 months ago where they raised ₹2.75 Crores at ₹15 Crores valuation. Moreover, They are currently in the process of raising ₹15 Crores at ₹70 Crore valuation. They already have a commitment of ₹13.5 Crores for their current funding round.

ASSEMBLY Shark Tank India Negotiations & Funding:

Aman commented that their design lacked a lifestyle element and they need a brand guy to build their enterprise, so he goes out of the deal. Ritesh shared the same sentiment so he followed Aman’s lead and goes out. Vineeta commented that founders didn’t talk about quality and they are playing on price instead of quality, so she goes out. Namita commented that they have too many investors, so she also goes out.

Anupam gives the first and only offer of ₹85 Lakhs for 2% valuing the business at ₹42.5 Crores. On top of that, he adds royalty of 1% on sales until he makes 1.5X of his money back. He added that the founders lacked execution which he can support them with. Entrepreneurs ask Anupam to reconsider as they wanted to work with him but couldn’t lower their valuation as they already had commitments at a much higher valuation for their company. After hearing that he revises his offer to ₹85 Lakhs for 1%, but royalties stay as it is. The founders didn’t want to take a royalty deal; therefore, they walked out of the Tank without a deal.

Who are the founders of ASSEMBLY?

Aditya Khanna and Mohit Garg founded ASSEMBLY. Both of them have family backgrounds in the luggage industry.