How is Hoora Doing After Shark Tank India?

Founders: Yashwant Budhwani & Harsh Somani
Business: Car Washing App
Ask: ₹80 lakhs for 2%equity
Valuation/ Networth: ₹40 Crores
Funding: No Deal
Sharks: No Deal
Episode: Season 3 Episode 18

Hoora Shark Tank India Pitch:

Hoora is an Indian startup which appeared on Shark Tank India season 3 Episode 18. Through Hoora, consumers can get a professional car wash experience at home by one of their trained partners. The founders added that Hoora uses 5X less water than traditional car washes. They claim to be India’s first doorstep car wash and bike care app with over 1 lakh downloads to date. The founders want to make autocare accessible and eco-friendly. To fulfill this vision, they sought an investment of ₹80 lakhs for 2% of the company, valuing the venture at ₹40 crores.

Hoora is mainly focusing on deep cleaning services. Their services start at ₹99, but they have a minimum order value of ₹200. Further, Their average order value currently is ₹400. Also, The company’s service partners carry a proprietary backpack which contains a wet & dry vacuum cleaner, in-house designed pressure washer, and power source. They also have filed patents for their in-house developed items. The founders added that they sell that backpack for ₹1.5 lakhs to their partners. Their average service is an hour long, and deep cleaning service gets done in 3 hours.

Hoora’s Financials & Revenue during Shark Tank India:

Hoora raised their first investment in April 2022 of ₹5 lakhs, followed by another ₹14 lakhs in October 2022. This money was raised at a ₹5 crore valuation. They raised another ₹47.5 lakhs in March 2023 at the same valuation of ₹5 crores. Further, The founders added that their monthly revenue at that time was ₹8 lakhs, and currently, they are doing ₹31 lakhs per month; therefore, they are asking for a ₹40 crore valuation. They are growing 100% quarter on quarter.

Hoora made revenue of ₹40 lakhs in Q1 of FY23-24. They are projecting to close Q2 at over ₹90 lakhs. For unit economics, for every ₹100 in revenue, ₹25 goes to the service partner, ₹15 is a kit cost giving them a gross margin of ₹60. Further, ₹25 goes to salaries and overhead, ₹25 is spent on marketing, and ₹15 goes to other operating expenses. Overall, The company is at a 5% loss at this stage. However, August 2023 was their first month where they broke even their sales. The company also charges a take rate of 15% per service.

Hoora Shark Tank India Negotiations & Funding:

Anupam was the first shark to go out, citing this is a commoditized business, and the founders should put their energy into solving some real problems rather than working on this. Namita felt like the business model was too complex and would be difficult to scale; therefore, she steps out of the deal as well. Vineeta goes out due to a small market size and scalability concerns. Aman goes out due to the company not having a defined market for this product. Amit goes out due to not having clarity on this business. Hoora left the Shark Tank without a deal.

Who are the founders of Hoora?

Yashwant Budhwani & Harsh Somani founded Hoora. Harsh is from Mumbai and Yashwant is from Nagpur. They met each other through Y-Combinator.