- Entrepreneurs: Manish, Sagar
- Business: Snacks
- Ask: ₹70 Lakh for 1% equity
- Valuation/ Networth: ₹70 Crore
- Funding: ₹70 Lakh for 2.75% equity
- Sharks: Ashneer Grover
- Episode: Season 1 Episode 2
Tagz Foods Shark Tank India Pitch:
Tagz Foods Founders presents a healthy alternative to traditional fried junk food. They kick-started their pitch by urging the Sharks to consider a shift away from oil-based snacks, highlighting how many chip companies rely on this method. The company had already launched its first product a year and a half prior to their appearance on Shark Tank. Their unique selling point is that their chips are made with 50% less oil and are compressed under high pressure, proudly sporting the tagline ‘Never Fried Never Baked.’ Tagz Foods offers a range of 6 chip flavors and 4 dip varieties.
Their products are available in over 2,000 retail stores and more than 30 online platforms, including their own website. At the time of the pitch, they boasted a run rate of around 7 crore, a significant increase from the previous year’s 1.25 crore. Impressively, 40% of their sales were conducted through their website, and a whopping 66% of their total sales were online. Their average gross margin stood at a healthy 48%. They had already secured an investment round of 4 crore at a valuation of 20 crore. The company’s vision is to disrupt the snack market with innovative and healthier products.
Tagz Foods Shark Tank Negotiations & Funding:
Sharks drew a comparison between Tagz Foods and Virat Kohli’s Too Yumm brand. In response, the entrepreneurs emphasized that their chips are created using a completely new method, and the machinery required isn’t even available in India. Ashneer sought to understand why Tagz Foods hadn’t expanded offline, to which the owners cited market instability caused by the COVID-19 pandemic. However, Ashneer challenged this reasoning.
When Aman asked about the challenges they faced, the entrepreneurs identified defending their gross margin as the most significant hurdle.
Anupam was the first to exit the negotiations, expressing concerns about scalability and valuation. Vineeta praised the product and packaging but didn’t align with the vision of going direct-to-consumer, leading her to opt out as well. Aman and Namita jointly offered 70 lakhs for a 4% stake in the company. Ashneer, made a similar offer of 70 lakhs but for a 3.5% stake.
After some deliberation, they returned with a counteroffer of 70 lakhs for a 2.5% stake. Aman and Namita countered with 3%, while Ashneer offered 70 lakhs for a 2.75% stake. The entrepreneurs requested 70 lakhs for a 2.5% stake from Ashneer, stating it would satisfy their current inves
How is Tagz Foods doing After Shark Tank India:
Our research into the Tagz Foods update post-Shark Tank revealed that although the show depicted only Ashneer making the deal, other Sharks were interested in joining the investment round. According to Business Today India, Namita was another Shark who wrote a check for an undisclosed amount. Tagz raised an additional $2 million from investors including 9 Unicorns, Dexter Angels, Agility Ventures, Venture Catalysts, Kulb, Indifi, and Rannvijay Singha.
Namita Shared on her Socials that the company’s revenue has grown 8X and margins have improved to 22% and they have expanded their distribution to 12,000 Stores across country.
As of September 2023, the company is experiencing rapid growth. They have secured an official sponsorship with the Rajasthan Royals, an IPL team, and their brand is endorsed by cricketer Shikhar Dhawan. According to some sources, tagZ chips has a net worth of around 30Cr in 2023.
You can check Tagz Products by clicking the Amazon button below!
Source: Instagram @tagzfoods
Here are other companies from Season 1 Episode 2.
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