- Entrepreneurs: Ganesh Balakrishnan
- Business: Footwear Brand
- Ask: ₹75 Lakh for 3% equity
- Result: No Deal
- Sharks: No Deal
Flatheads Shark tank Pitch:
Flatheads is an Indian startup that makes shoes from natural materials like banana fiber, linen, and bamboo fiber, providing a comfy, T-shirt-like feel for your feet while being eco-friendly. Their soles are super light, making them great for all-day wear.
Founded in November 2019, Flatheads had served over 20,000 customers when they appeared on Shark Tank India. They sold their shoes through their website and on platforms like Amazon and Myntra, with prices ranging from ₹1000 for slippers to ₹5000 for flagship shoes. In FY22, they earned over ₹3.4 Crores in revenue with a 60% gross margin, but they had a net loss of 20%. They had previously raised ₹5.2 Crores in a funding round in April 2021, valuing the company at ₹28 Crores before the investment.
Their mission was to turn Flatheads into an international brand. They also introduced an Innovation range, including monsoon-resistant shoes, and had collaboration plans in the pipeline, for which they needed capital, hence their Shark Tank appearance.
Flatheads Shark tank Negotiations:
During the Shark Tank negotiations, the sharks found the shoes comfortable but lacking in style. Ganesh, the founder, explained they targeted everyday shoe wearers, not sneaker enthusiasts. When questioned about lower valuations compared to their previous funding round, Ganesh cited financial constraints, as they were running low on funds, even personally investing ₹35 lakhs each. With last month’s sales at ₹15 lakhs and expenses at ₹20.5 lakhs, they were in the red.
The sharks expressed concerns about the business basics (the 4 P’s: product, price, promotion, and place). Namita opted out, fearing it would take too long to revive the brand. Vineeta questioned the product-market fit, and Anupam offered Ganesh a job, but Ganesh declined. Aman opted out, citing fundamental business issues.
Peyush offered ₹75 lakhs for 33.3% equity with conditions for a restart. Vineeta joined the offer. Ganesh left the tank to think, and upon returning, thanked the sharks but declined the offers. He decided to reevaluate his priorities and gain experience working with a D2C brand.
It is one of the best episodes and I recommend everyone to watch.
What Happens to Flatheads after Shark Tank?
After Shark Tank India, Flatheads persevered. They paused operations to sell existing inventory and revive the brand. They launched a successful limited edition “NOT OUT collection” through crowdfunding, selling out in 60 hours. Ganesh revealed their shoes were meant to be worn without socks. They also began selling socks through a partnership with Soxytoes and hinted at future sustainable sock offerings like bamboo socks.
As of September 2023, Flatheads appears to be thriving. Their website is active, offering new lines and collections, including limited-edition “NOT OUT” shoes and various color options.
Image source: Flatheads Instagram
Here are more companies from Shark Tank India Season 2 Episode 5.
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