How is TeaFit doing after Shark Tank India?

• Founder: Jyoti Bharadwaj
• Business: Ice Tea 
• Ask: ₹ 50 Lakhs for 3% Equity
• Valuation/Net worth: ₹16.67 Crores
• Funding: ₹ 50 Lakhs for 8% Equity
• Sharks: Peyush Bansal, Anupum Mittal, Vineeta Singh, Aman Gupta
• Episode: Season 2 Episode 6

TeaFit Shark Tank India Pitch:

TeaFit is an iced tea with 0 calories, no sugar, and no artificial sweeteners. It is brewed using green tea, black tea, and hand-toasted barley. These iced teas feature 15 herbal formulations. TeaFit was founded in 2021 and has already served over 20,000 customers. The company sells its products through its own website, retail stores, and e-commerce platforms. The cost of a TeaFit iced tea bottle is INR 120, with a production cost of INR 30. Retail sales provide a margin of INR 36, resulting in a gross margin of INR 54.

During the discussion with Sharks, concerns were raised about the high production cost. Jyoti explained that the bottle itself costs INR 7.50, including the cap and sleeve, while the Ayurvedic herbs and tea are approximately INR 7, the filling with German technology is around INR 8, and logistics and miscellaneous expenses total around INR 5.5.

Anupam raised concerns on scalability and In response to Anupam’s concerns, Jyoti explained that in the next couple of months, the company is set to launch tea bags that can be directly brewed with hot water. This innovative addition to their product line is expected to provide several advantages, particularly in terms of logistics and sustainable scalability. By introducing tea bags that are convenient and versatile, TeaFit aims to tap into a broader market and further expand its reach.

TeaFit India Financials:

In the fiscal year 2021-2022, TeaFit achieved INR 15.5 lakhs in sales and a profit of INR 78,000, all without any marketing efforts. For the fiscal year 2022-2023, the company projects sales between INR 45-55 lakhs. In July ’22, TeaFit recorded INR 2.5 lakhs in sales, followed by INR 2.1 lakhs in August ’22. Their sales increased to INR 3.5 lakhs in September ’22. About 35% of the sales come from online channels, while the remaining 65% are from offline sources. Jyoti owns 99.5% of the equity, with the remaining 0.5% being owned by her mother-in-law, who initially invested INR 10 lakhs in the venture.

TeaFit Shark Tank India Negotiations:

Namita was the first shark to opt out, as she believed her involvement wouldn’t significantly contribute to the business’s growth. However, Anupam and Vineeta came together with an enticing offer, proposing INR 50 Lakhs for a 25% equity stake. Meanwhile, Pyuesh tabled an offer of INR 50 lakhs for a 20% equity share. To everyone’s surprise, Aman made an astonishing offer of INR 50 Lakhs for just a 10% equity stake.

In response, the other three sharks decided to match Aman’s offer. However, Jyoti had a counteroffer in mind, suggesting INR 50 Lakhs for an 8% equity share. After some negotiation, all four sharks and Jyoti eventually reached an agreement, finalizing the deal based on Jyoti’s terms.

What Happened to TeaFit after Shark Tank India:

Our research on TeaFit revealed that their Shark Tank India deal with Sharks did indeed close after the show aired. Founder Jyoti shared in a Podcast that she has already been a fan of the Shark Tank show and watched Shark Tank US before coming on the show. She also shared that they even applied in the first season but didn’t get in. Jyoti shared that the amount of coverage she got from the show is incredible. She said that they got really tensed up with the response of the show as it was quite overwhelming.

As of November 2023, TeaFit India is still in business and growing. They have over 11 thousand Instagram followers. While their financials are not yet available, we will update this information as soon as more information comes to light.

Source: TeaFit Instagram

Here are other companies from Season 2 Episode 6.