- Entrepreneurs: Roshaan Mishra and Ankita Mishra
- Business: Automatic Fire Extinguisher
- Ask: ₹ 70 Lakhs for 5% Equity
- Valuation: ₹14 Crore
- Result: ₹ 35 Lakhs for 5% Equity and ₹ 35 Lakhs debt @12% interest
- Sharks: Namita Thapar
- Episode: Season 2 Episode 4
Shark Tank India Pitch:
Brandsdaddy AFE, a startup dedicated to producing and distributing non-toxic and zero-maintenance fire extinguisher balls designed to extinguish fires within a mere five seconds, stepped onto the stage with a mission to transform fire safety.
The ingenious minds behind Brandsdaddy AFE are Roshaan Mishra and Ankita Gandhi, both engineers and entrepreneurs. Their entrepreneurial journey began in 2013 when they were deeply moved by a fire accident that occurred in their neighborhood. Fueled by their passion for innovation and safety. So they embarked on a mission to develop an innovative solution to address fire-related emergencies.
They sought Rs 70 lakh in exchange for a 5% equity stake in their company, valuing Brandsdaddy AFE at a remarkable Rs 14 crore. The co-founders swiftly captured the sharks’ attention by demonstrating their product’s efficacy, tossing a fire extinguisher ball into a fire pit to showcase its ability to extinguish flames through a powerful blast and the release of extinguishing powder. They emphasized that their product was not only unique but also protected by patents and adorned with several awards.
Brandsdaddy’s Financials, Valuation, and Sales at the time of the pitch?
In the fiscal year 2020-2021, Brandsdaddy recorded revenues of Rs 51 lakh. In the subsequent fiscal year, 2021-2022, the company witnessed a substantial growth in sales, with revenues reaching Rs 1.45 crore. This remarkable increase in sales was accompanied by an impressive gross margin of 60%, and the net margin stood at 10%. Notably, Brandsdaddy emphasized its profitability since its inception.
It is worth noting that a significant portion of the company’s revenue is derived from business-to-business (B2B) sales. The pricing structure for their AFE fire extinguisher balls typically ranges from Rs 100 to Rs 1500 per unit. The maximum retail price (MRP) is set at Rs 5000 per unit. Mishra and Gandhi expressed their intent to leverage the funding to scale up production. They wanted to diversify their distribution channels and amplify their social impact.
Shark Tank Negotiations
While the investors were undoubtedly intrigued by Brandsdaddy AFE’s groundbreaking product and passionate pitch, the negotiation process unveiled some crucial questions and reservations. The sharks expressed concerns regarding the startup’s valuation, scalability, product differentiation, and the size of the potential market.
During the deliberation, Namita Thapar made an offer that resonated with the co-founders. Thapar proposed Rs 35 lakh for a 5% equity stake and an additional Rs 35 lakh as a loan with a 12% interest rate. She believed that the initial valuation was too high.
After careful consideration, Roshaan Mishra and Ankita Gandhi accepted Namita Thapar’s offer, recognizing the immense value of securing a mentor and partner who could contribute significantly to their business’s growth.
How Is Brandsdaddy AFE Doing After Shark Tank?
Our Research of company revealed that the deal with Vineeta closed and The journey of Brandsdaddy AFE from its impactful pitch on Shark Tank India to its current success is a testament to the power of innovation and entrepreneurial resilience.
Post-Shark Tank, Brandsdaddy AFE received a significant infusion of capital when it secured Rs 50 lakh from Peyush Bansal, the co-founder and CEO of Lenskart. This crucial funding provided the startup with the financial resources needed to expand its operations and enhance its offerings.
One of the noteworthy milestones achieved by Brandsdaddy AFE was the establishment of a manufacturing unit in Nashik, Maharashtra. This strategic move allowed the startup to bolster its production capabilities, ensuring the availability of its innovative fire extinguisher balls to a wider audience.
Brandsdaddy AFE didn’t stop at the status quo. The startup expanded its product range and distribution channels, allowing its innovative fire safety solution to reach more individuals in need. With its strengthened presence, Brandsdaddy AFE now offers a diverse range of fire safety products, making them more accessible to the public.
Maintaining an online presence, Brandsdaddy AFE cultivated a loyal customer base with over 44,000 followers on Instagram.
Image source: Brandsdaddy’s Instagram
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