How is Avataar Skincare Doing After Shark Tank India?

Founder/Owner: Saumya Misra
Business: Skincare Treatment
Ask: ₹70 Lakhs for 1% Equity
Valuation/ Networth: ₹70 Crores
Funding: ₹35 Lakhs for 0.5% Equity & ₹35 Lakhs debt at 14% interest
Sharks: Anupam Mittal & Aman Gupta
Episode: Season 3 Episode 30

Avataar Skincare Shark Tank India Pitch:

Avataar Skincare is an Indian startup that appeared on Shark Tank India season 3 episode 30. They are the world’s first application that brings world-class skincare laser treatment services to your home. They address conditions like acne, pigmentation, unwanted hair, hair fall, weight reduction, etc. The company employs equipment that the US FDA has approved and guarantees 100% safety. Dermatologists design all their treatments, and trained technicians administer treatment to clients at home. Their equipment has cocktail technology which ensures faster results than the competition at 20-30% less cost. They had over 7,000 customers by the time of their pitch. The founder sought an investment of ₹70 Lakhs for 1% of the company valuing her business at ₹70 Crores.

Avataar Skincare Financials during Shark Tank India:

Avataar Skincare has four main categories: laser facials which cost between ₹3000-₹5000, Permanent Hair Reduction which costs ₹35,000 for 6 sessions, Weight Reduction using technology which could vary between ₹3,800 to ₹10,000 per session, and lastly, Skin Rejuvenation which can cost between ₹3000-10,000 per session. The founder added that they do have a significant price advantage over their competitors in this space. She also added that their equipment is better than the competitors as well.

Avataar Skincare has small dark stores in Gurgaon, Delhi & Noida where they store the machines. They had 50 therapists onboard at the time of their pitch who come to take the machines according to their respective sessions. Also, most of their therapists are fresh graduates or college students, and the company trains them after hiring.

Avataar Skincare has a 30% repeat rate of month on month with a rating of 4.8. Their monthly revenue is at ₹60 Lakhs. They have also added Mumbai to their roster in November 2023 and have already made around ₹4 lakhs of revenue from there in just 15 days. The company was started in April 2022. They are currently raising their first investment round of $2 million (₹16.6 Crores) out of which they already have a commitment of $1.5 million dollars at ₹70 Crore valuation.

The company has a gross margin of 87%. However, the company is not yet profitable. The founder shared that they are contributing 9% at the CM level 2. They have a monthly burn rate of ₹10-15 Lakhs. The founder made an initial investment of ₹1.5 crores in the business and has $100k in grants which sustained this expansion so far.

Avataar Skincare Shark Tank India Negotiations & Funding:

Vineeta was the first shark to go out of the negotiations because she felt like the founder lacked humility but she is targeting a market which requires extra empathy due to insecurities of the masses in this area. Peyush also goes out even before asking the revenue numbers because he couldn’t see the core differentiator in this business. He also pointed out that the founder would need to work on her language skills and how the words she says come across. Namita goes out due to high valuation.

Anupam puts the first offer on the table of ₹70 lakhs for 3% of the company. Aman also comes in with the offer and gave the same offer as Anupam. Saumya asked if she could get a ₹70 Crore valuation with equity debt structure after which both Sharks revised their offers to ₹20 Lakhs for 0.28% equity and ₹50 Lakhs debt at 14% interest on 3-year term. The founder countered that with ₹35 lakhs at ₹70 crore valuation and the rest as debt with the same terms but both sharks come together which the sharks accepted and they shook hands on that.

Who is the founder of Avataar Skincare?

Saumya Misra founded Avataar Skincare. She is an IIM Bangalore graduate and competed on national levels for pistol shooting. She is born and brought up in Bopal and went to NIT Bhopal for engineering.