How is Rock Paper Rum Doing After Shark Tank India?

Founder/Owner: Lalit Kalani
Business: Rum
Ask: ₹50 lakhs for 2% Equity
Valuation/ Networth: ₹25 Crores
Funding: ₹20 Lakhs for 1% Equity & ₹30 lakhs debt @10% for 2 Years
Sharks: Vineeta Singh
Episode: Season 3 Episode 39

Rock Paper Rum Shark Tank India Pitch:

Rock Paper Rum is an innovative Indian rum brand which appeared on Shark Tank India Season 3 Episode 39. Their product line includes Indian Spiced Rum, Coastal White, Tropical Coconut, Zesty Lemon, and Roast Coffee. They were available in over 1000 HoReCa establishments across Mumbai and Pune. The founder’s vision is to take this brand across India, and to fulfill this, he sought an investment of ₹50 lakhs for 2% equity in the company, valuing the business at ₹25 crores.

Rock Paper Rum’s Financials & Revenue during Shark Tank India:

Rock Paper Rum was launched in October 2022, but the company was incorporated in 2021. Their flagship product is Indian Spiced Rum. The founder shared that their products are priced competitively with Bacardi. Their lifetime retail sales are around ₹4 crores in 11 months, bringing them a net revenue of around ₹1 crore after taxes, fees, etc. The company has burned around ₹1.5 crores so far, mainly going into building the foundation and obtaining necessary licenses.

Rock Paper Rum’s net revenue of ₹1 crore came after retailer and distributor margins. Their cost of goods sold amounts to around ₹35 lakhs. They allocate another ₹35 lakhs for trade discounts, spend ₹4-5 lakhs on marketing, and allocate the rest to salaries. Their current monthly burn rate is around ₹8 lakhs.

Rock Paper Rum has raised an investment of around ₹2.5 crores before launching in 2022. It was on a convertible note with a ₹20 crore valuation cap. They are currently in the process of raising a second round from angel and institutional investors. They went for raising ₹3 crores, but Lalit shared that they have interest of around ₹4.5 crores so far at a ₹20 crore valuation.

Rock Paper Rum Shark Tank India Negotiations & Funding:

Peyush was the first shark to go out of Rock Paper Rum’s negotiations, citing that he wouldn’t be able to add value to this business. Aman goes out because he felt like it was unexplored territory. Ritesh goes out, citing that he doesn’t have the ability to help with this business. Anupam goes out, citing the lack of margins in this industry.

Vineeta was the only shark to give an offer to Rock Paper Rum as she felt like she could help with cracking the offline distribution of this company. She offered ₹20 lakhs for 1% of the company and the rest as debt at 10% on a 2-year term. The founder accepted that offer without any hesitation.

Who is the founder of Rock Paper Rum?

Lalit Kalani founded Rock Paper Rum. He is from Mumbai. His family has a background in the same industry. Lalit studied at New York University & Wharton Business School in the USA.