- Founder/Owner: Gurseet Singh
- Business: Nicotine-Free Tablets
- Ask: ₹1 crore for 1% Equity
- Valuation/ Networth: ₹100 Crores
- Funding: ₹50 Lakhs for 5% Equity & ₹50 lakhs debt @15% for 3 Years
- Sharks: Anupam Mittal
- Episode: Season 3 Episode 40
Smotect Shark Tank India Pitch:
Smotect creates the world’s first nicotine-free & natural tablets that aid in quitting smoking and repairing the body damage caused by smoking. The company appeared on Shark Tank India Season 3 Episode 40. The founder shared that the formulation of these tablets is safe and effective and passed the golden standard of clinical trials. Smotect had 20,000 paid customers by the time of their pitch. The company sought an investment of ₹1 crore for 1% of the business valuing the venture at ₹100 crores.
Smotect has observed a 95% success rate in double-blinded randomized placebo-controlled multicentric studies. Research and development of the product started in 2014. They began conducting clinical trials in 2016 with 100 patients. They prescribe 4 tablets a day and each tablet is priced at ₹25.
Smotect’s Financials & Revenue during Shark Tank India:
Smotect acquires 3,500-4,000 new customers per month. The average duration of their products is 1.5-2 months. The founder shared that he has invested ₹5-6 crores during the research process, which he made from his another business that is still ongoing. They have a current team size of 10 people, and the company is completely bootstrapped.
Smotect made ₹1 crore in revenue in September 2023. Notably, their pitch was shot in October 2023. They made revenue of ₹2.81 crores in the last financial year, which was FY22-23. The Company is projecting to close FY23-24 with a revenue of ₹12 crores. They made ₹4.25 crores by September 2023 with PAT of 12%. Their gross margin is 80%, and EBITDA comes down to 28%. Their customer acquisition cost is at around ₹800.
Smotect Shark Tank India Negotiations & Funding:
Aman was the first shark to go out due to the founder having two businesses at one time. Namita goes out of negotiations due to the same reason. Deepinder goes out because he didn’t get a conviction that this product works. Vineeta goes out due to the same reason.
Anupam gives the first and only offer but with the condition that efficacy claims will need to be verified. He offered ₹50 lakhs for 5% of the company and the rest as debt at 15% for 3 years. The founder countered Anupam with ₹50 lakhs for 2%, which Anupam refused and added that his offer is non-negotiable. The founder accepted that offer, and they shook hands on the ₹10 crore valuation.
Who is the founder of Smotect?
Gurseet Singh founded Smotect.
How is Smotect doing after Shark Tank India?
Our research on Smotech revealed that while they did get a deal on Shark Tank India, whether that deal closed after the show is still unclear. Early signs, however, suggest that the deal has not gone through, but this could very well be because they are still in the due diligence phase. We will update this article with their revenue and final verdict once more information comes to light. In the meantime, you can check out season 1 companies and Shark Tank India products by clicking the Amazon Button below!
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Source: Instagram @smotect.official
Here are other companies from Season 3 Episode 40