Homestrap Shark Tank Pitch:
Homestrap is a solutions brand which helps you organize things in your home. They sell products to organize cupboards. Their product line includes Saree Organizer, Shirt Stacker, Clothes Organizer, Jewellery Organizer and Shoe Organizer. They are available through marketplaces and have served over 15 Lakh customers by the time of their pitch. Their vision is to organize all the wardorobes in India and for that they sought investment of ₹70 Lakh for 1% of the company.
Homestrap has done ₹17.2 Crore in sales last year with an Average selling price of ₹505. Their projections for FY22-23 are at ₹23 Crores. The company’s first financial year was FY16-17 where they did ₹2.13 Crores in sales followed by ₹7 Crores, ₹9 Crores, ₹12 Crores and ₹19 Crores in FY 18, 19, 20 and 21 respectively. They saw a dip due to entering in furniture category which they decided to pull back after Covid. Their EBITA is at 3% at the time of pitch.
For Unit Economics, Their product which MRP for ₹100 gives them ₹55 in gross profits. Marketplaces cost around ₹31% in commission and 6-7% is spent on marketing. They are also working with influencers. They only had 1000 followers on Instagram but the founders shared that they only started that 3 months ago. The company spent ₹35 lakh in Marketing in FY 21-22.
Homestrap Shark Tank Negotiations & Funding:
Aman goes out citing their is very small EBITA and this category will be hard to build the brand. Peyush goes out because he didn’t think he could add value in this. Vineeta thinks that this will get comodotized therefore she goes out of the deal. Namita didn’t like the quality of the products therefore she went out of the deal as well. Anupam was intereseted in the market and offered ₹50 lakh for 10% and rest as debt for 10% interest. The company counters at 5% for ₹50 lakh to which Anupam counters at ₹70 Lakh for 10%. Homestrap counters at ₹50 lakh for 7% and rest as debt.
Who are the founders of Homestrap?
Akash Mehta & Priyanka Mehta, A couple from Indore founded Homestrap. They have known each other since grade 10 and have been partners for 22 years. Priyanka is IIM Banglore graduate.
How is Homestrap Doing after Shark Tank India?
Our research into the company revealed that their Shark Tank India deal with Anupam was finalized and closed after the show aired. The company is thriving after the show. As of December 2023, The company is still in business and growing. They have expanded into multiple categories across the home organization. They have over 30 thousand Instagram followers and a strong presence on the internet.
Source: Instagram @homestrap_india
Here are other companies from Season 2 Episode 32.
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