How is EVA Scalp Cooling System doing after Shark Tank?

Founders: Raghuveer Surupa
Business: Medical devices
Ask: ₹30 Lakhs for 1.2% equity
Valuation/ Networth: ₹25 Crores
Funding: ₹30 Lakhs for 1.8% Equity
Sharks: Namita Thapar, Ritesh Agarwal & Aman Gupta
Episode: Season 3 Episode 11

EVA Scalp Cooling System Shark Tank India Pitch:

EVA Scalp Cooling System can prevent hair loss during chemotherapy treatment. This treatment is also given alongside chemotherapy treatment as well. During this process, the patient’s scalp is cooled with precise cooling technology to maintain an accurate temperature of hair follicles. The founder shared that there are only 3 companies in the world which were able to manufacture this device, with them being the third one. They have conducted over 1000 sessions in 12 hospitals across 5 states using their devices. The founder sought an investment of ₹30 Lakhs for 1.2% of the company, valuing his business at ₹25 Crores.

EVA Scalp Cooling System was started in 2020. The company shared that their device can be used by two patients simultaneously and independently. Further, The machines can be configured based on gender, age group, and type of cancer. After this, the process is divided into three parts: pre-infusion, infusion, and post-infusion. Their cap design is patented.

EVA Scalp Cooling System Shark Tank India Financials:

Hospitals charge ₹1500-₹4000 per session per machine for EVA Scalp Cooling System. The entire system costs a hospital a total of ₹13 Lakhs. The company also added that their competitor sells a similar product for ₹24 Lakhs. Their machines are also manufactured in-house.

The product was introduced into the market in December 2022, and they closed FY22-23 with ₹22.5 lakhs in revenue. However, in FY23-25, from April to their time of pitch in November 2023, they have generated around ₹59 lakhs in revenue. Also, Their gross margin is at 85%. They are projecting to close FY23-24 at ₹1.2 Crores, and they would break even their EBITA by the end of this year.

EVA Scalp Cooling System has already raised funds from the Department of Biotechnology, which has given them ₹25 Lakhs as a seed grant. This was given at a valuation cap of ₹12 Crores. Further, ₹75 Lakhs were raised from an angel investor at a ₹10.9 Crore valuation. In May 2023, the company raised another ₹1.5 Crores at a ₹17 Crore valuation. The founders shared that Pfizer CEO is his business advisor.

EVA Scalp Cooling System Shark Tank India Negotiations & Funding:

Aman puts the first offer out of ₹30 Lakhs for 2%, but he added that it would be on a condition that Namita would come along with this offer. Even though Namita wasn’t fully convinced with the product, she still took a shot at it and came along with Aman’s offer. Ritesh offered a Dream deal to Raghuveer of exactly what he asked for.

Anupam goes out citing that he doesn’t believe that there is that big of a market for this in India. Vineeta felt like other sharks can help them better; therefore, she also steps out of the negotiations. Namita and Aman ask Ritesh to join their deal together. They offer ₹30 Lakhs for 1.8%, valuing the company at ₹16.67 Crores, and the founder accepted that deal without any hesitation.

Who is the founder of EVA Scalp Cooling System?

Raghuveer Surupa founded EVA Scalp Cooling System. He is from Hyderabad. Raghuveer graduated from IIM Ranchi in 2012. He worked at Pfizer after his graduation in 2012, where he worked in sales and marketing.