Freakins India Shark Tank Pitch:
Freakins is an Indian startup that makes denim fast fashion products. They produce items tailored for various Indian women’s body types, and new styles are launched weekly. They offer over 35 categories and 1500+ styles, all made from denim. In the past three years, they have fulfilled 2.5 Lakh orders in India. Puneet added that their brand has been featured on Bollywood celebrities and is popular among college students. They are available through their website and marketplaces like Amazon, Nykaa, etc. The founders sought an investment of ₹70 Lakhs for 1% equity, giving them a valuation of ₹70 Crores.
Puneet has 54%, Shaan has 36%, and Shaan’s uncle has a 5% share in the company. They also have an ESOP pool of 5%. Shaan added that they lacked business operations; therefore, they brought Puneet in to help them out. Puneet shared that they commitment of ₹4.5 crores between ₹30-60 Crore cap from investors. They are also partnering with another firm, which is helping them raise money at a ₹70 Crore valuation.
Freakins made ₹90 lakhs in their first financial year, FY19-20. This was followed by 644% growth, and they closed FY20-21 at ₹6.7 Crores. Revenue in FY21-22 was clocked at ₹10.4 Crores. Shaan added that they have done average monthly sales of ₹90 lakhs in the first 6 months of FY22-23. They were at the break-even point in their first year, followed by a loss of ₹2.1 Crores and ₹3.8 Crores in the years 2021 and 2022, respectively. They are still losing ₹10 lakhs per month in FY 22-23. Their gross margin is at 63%. Freakins has done ₹1.05 Crores in net revenue in September 2022. They have spent ₹12 lakhs on performance marketing in the same month as well.
Freakins India Shark Tank Negotiations & Funding:
Anupam commented that this company was a mess; therefore, he stepped out of the deal. He added that there is no design language in the company as well. Peyush thought that it was very complicated; therefore, it was not investable. Namita shared the same sentiment as Peyush; therefore, she also went out of the deal. Aman commented that founders need to focus on brand building, but at this time, he would like to stay out of this investment.
Vineeta gives the first and only offer with a condition that it would need to be a part of a bigger round. With that, she offered ₹50 Lakhs for 2.5%, giving the company a valuation of ₹20 crores and the rest as debt at 12% interest. Entrepreneurs countered that with ₹50 lakhs for 2%, which Vineeta refused and added that her offer is non-negotiable. The founders accepted Vineeta’s offer of ₹50 lakhs for 2.5%, and they shook hands on that.
Who is the founder of Freakins?
Puneet Sehgal & Shaan Shah founded Freakins. Puneet is from Bombay, and Shan is from Ahmedabad. Shaan’s family background is in textile manufacturing. Puneet worked as a chief strategy officer at Nykaa.
How is Freakins doing after Shark Tank India?
Our research in the company revealed that their Shark Tank India deal with Vineeta Singh did not close after the show aired. Despite this setback, the company is thriving after their appearance. As of January 2024, they have a strong presence on Instagram with over 3.63 Lakh followers, and some of their reels gained millions of views on the platform, giving them further reach in their targeted demographic.
While financials of this company are not yet public, we will update this article as soon as more information comes to light.
Source: Instagram @freakinsindia
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