Lil’Goodness Shark Tank Pitch:
Lil’Goodness is an Indian startup which makes snacks of ethnic traditional ingredients like teff from Africa, turmeric from India & special plant fibres of chicory roots by mixing them with chocolates. The company sought an investment of ₹1 Crore for 1% of the company. Their chocolates have 35% less sugar as compared to the competition and have turmeric. The founders added that all their chocolates are made with 100% cocoa butter. Their product line also include Teff Puffs & Oats Milkshake.
They launched in March 2020, 2 days before the covid lockdown. They went on Amazon in May 2020. At the time of the pitch, Their monthly sales were at ₹1.45 Crores per month. 60% of their sales come from Chocolates with a gross margin of 69% in this category, 20% from milkshakes with a gross margin of 64% and 15% from puffs. Their monthly burn rate is at ₹30 lakhs.
They have raised ₹11.5 crores in funding so far with a total diluation of 48% so far. Harshavardhan holds 24% share in the company and Damanbir holds 8% rest with management ESOP and Investors. Harshavardhan has also invested around ₹1 crore of his own money in this venture. They are raising a current round of ₹13.5 crores out of which they already have commitment of ₹12 crores at valuation of ₹100 Crores.
Lil’Goodness Shark Tank Negotiations & Funding:
Namita thought that the valuation was unrealistic considering the cash burn therefore she went out of the deal. Amit felt like the founders didn’t have a frugal attitude towards building their business therefore he also stepped out of negotiations. Anupam added that the founders lacked the execution skills and would never be profitable therefore he also went out. Vineeta goes out citing that this venture would not fit into her investment thesis. Aman goes out of the deal citing that he doesn’t want to play game of valuation.
Peyush comes in with only offer of ₹50 lakhs for 1% and rest as debt at 12% interest. He added that it would be non negotiable offer which founders accepted with the condiditon that Peyush would decrease the interest to 10% for the loan. Peyush accepted that and they shook hands on that offer.
Who are the founders of Lil’Goodness?
Damanbir Singh & Harshavardhan founded Lil’Goodness. Damanbir is from Chandigarh and Harshavardhan comes from Kerala. Harshavardhan is Peyush’s classmate and Vineeta’s mentee.
How is Lil’Goodness doing after Shark Tank India?
Our research into the company revealed that its Shark Tank India deal with Peyush was finalized and closed after the show aired. Small boxoffice provided an update on their situation in November 2023 where they shared that Lil’Goodness products are available in over 4000 stores across India with that number expected to grow to over 10,000 near future. As of December 2023, The company is still in business and have expanded their lineup to all kinds of chocolates and milk products.
Source: Instagram @lilgoodnessofficial
Here are other companies from Season 2 Episode 48.
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