- Entrepreneurs: Pulkit Ahuja & Inderjit Singh Makkar
- Business: Smart Products
- Ask: ₹35 lakhs for 1% Equity
- Valuation: ₹35 Cr
- Result: ₹1 crore for 10% Equity
- Sharks: Ashneer Grover and Peyush Bansal
Proxgy Shark Tank Pitch:
Proxgy, a visionary startup founded by Pulkit Ahuja and Inderjit Singh Makkar in 2020, entered the spotlight on the finale episode of Shark Tank India season 1. Their pitch revolved around an innovative concept that blended IoT and AI technologies, giving birth to an array of intelligent products such as smart helmets, smart glasses, and smart drones. At the heart of their offering was a groundbreaking platform that allowed users to experience distant places and activities in real-time, all thanks to a live human proxy equipped with smart helmets or glasses. Users could control these proxies’ actions and movements through voice commands.
Proxgy’s pitch was captivating and addressed a common problem faced by people: limited access and mobility due to factors like distance, time, traffic, health, or safety. Their solution was equally ingenious, offering virtual reality experiences that enabled users to shop, travel, learn, or work from virtually anywhere. In a compelling demonstration, they showcased how a user could effortlessly shop at Delhi’s Sarojini Nagar market from the comfort of their own home.
Proxgy Shark Tank Negotiations:
The Sharks were intrigued by Proxgy’s pitch, seeing potential in their innovative approach to IoT and AI. However, the valuation of the startup, which was set at 35 crores for a mere 1% equity stake, raised eyebrows among the investors. While the Sharks recognized the problem-solving nature of Proxgy’s technology, they probed further into the company’s financials, sales figures, margins, growth rate, patents, and competitors.
The founders, in response, revealed that they had achieved a revenue of 1.5 crores in the previous financial year, boasting an impressive gross margin of 60% and a net margin of 40%. They also disclosed having six patented products and an additional 25 patents pending, indicating their commitment to continuous innovation across various industries. Interestingly, they noted that they faced no direct competitors in India, though they acknowledged the presence of global players like Amazon Prime Air and Google Glass.
The Sharks’ responses to the pitch varied. While Anupam Mittal and Namita Thapar expressed reservations and opted out due to concerns about valuation and market potential, Ashneer Grover, Peyush Bansal, and Aman Gupta saw Proxgy as a futuristic and disruptive opportunity. Their passion, innovation, and execution impressed the Sharks.
After negotiation, a joint offer was made by the three interested Sharks: 1 crore INR for a 10% equity stake. The founders accepted this offer, and the deal was sealed between Ashneer Grover, Peyush Bansal, and Proxgy. The Sharks commended the founders for their remarkable pitch and product, welcoming them into the Shark Tank family. In turn, the founders expressed gratitude for the trust and support extended by the Sharks, eagerly anticipating the journey ahead.
What Happened to Proxgy After the Shark Tank?
Following their appearance on Shark Tank India, Proxgy’s journey has been nothing short of spectacular. There deal with sharks went through!
Proxgy secured a significant valuation of $12 million after successfully raising an angel and pre-seed round, in addition to the funding received on Shark Tank India. Their total funding amounted to $800,000. According to cxotoday,The startup recorded an astonishing 20x business growth within a six-month period following their funding on Shark Tank India.
Proxgy introduced a new product line featuring smart drones designed for aerial surveillance and inspection, further diversifying its portfolio.The company forged valuable partnerships with esteemed entities, including ONGC, Indian Railways, Reliance Industries, and Tata Power, to provide their smart safety helmets across various industries.Proxgy consistently improved its technology and infrastructure, leveraging IoT and AI to enhance the performance and efficiency of its products.
In September, they also shared the news that Smarthat® has been crowned the winner of India’s Best Design Project at India’s Best Design Awards 2023! 🎉
Image Source: Proxgy Instagram
Here are more companies from Shark Tank Season 1 Episode 33.
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