How is Elitty doing after Shark Tank India?

Founders: Pranali Janbandhu and Vailina Tulsani
Business: Teenage Cosmetics
Ask: ₹1 Lakhs for 4% equity
Valuation/ Networth: ₹25 Crores
Funding: No Deal
Sharks: No Deal
Episode: Season 3 Episode 11

Elitty Shark Tank India Pitch:

Elitty is the first teenage cosmetics line made from teen skin-friendly ingredients such as witch hazel and avocado oil. They offer 22 colored eyeliners, lip glosses, and nail polishes, as well as five types of customizable makeup kits. The top two selling products are eyeliner and lip gloss, with 80% of sales coming from eyeliners, priced at 499. They sell across all marketplaces and on their own website.

Elitty Financial during Shark Tank:

There are 22 crore teenagers in India, consisting of Gen Z and Gen Alpha, with a market cap of 2000-2500 crores for teenage cosmetics. In the fiscal year 2022-23, they achieved sales of 49 lakhs, and in the fiscal year 2023-24 (until October), they reached 1.13 crores in sales, aiming to close the year with a 2 crore mark. In November 2023, they recorded sales of 11 lakhs with a negative EBITDA of 10 lakhs. Their first fundraising round took place in August 2021, where they raised 2.1 crores from Angel Investors with a valuation of 10 crores.

The second round occurred in March 2023, where they raised 3.2 crores with a valuation of 23.2 crores. They have already spent 4 crores from 5.3 Crores. Their B2B gross margin is 36%, while the B2C gross margin ranges between 75% and 80%.

Who are the founder of Elitty?

Elitty was founded by Pranali Janbandhu and Vailina Tulsani. Pranali has worked with Maybelline and created the FitMe product. Vailina has worked with consulting firms. The idea for Elitty came from Vailina, and interestingly, they both did not know each other before starting this brand. Pranali holds 25% equity, and Vailina has a 40% stake in the company.

Shark Tank India Negotiations & Funding:

Namita was the first shark to opt out because she could not provide the valuation they were asking for. Vineeta also chose to opt out because she believes their contribution margin is negative and advised them to cut their price by 30-35% as teenagers really care about value for money. Aman chose to opt out of negotiations as the company burns a lot and he does not want to take risks. Ritesh also chose to opt out due to future insecurities of the company.

Anupam made an offer of 1 crore for 15% equity. The founders countered with 1 crore for 6% equity. Anupam still has his offer on hold, and the founders again countered with 1 crore for 9% equity. No agreement was finalized.