How is The Cinnamon Kitchen doing after Shark Tank India?

Founders: Priyasha Saluja
Business: Baked goods
Ask: ₹60 Lakhs for 2%
Valuation/ Networth: ₹30 Crores
Funding: ₹60 Lakhs for 5%
Sharks: Aman Gupta
Episode: Season 3 Episode 2

The Cinnamon Kitchen Shark Tank India Pitch:

The Cinnamon Kitchen is a 100% gluten-free, refined sugar-free, and plant-based bakery that appeared on Shark Tank India Season 3 Episode 2. They are renowned for creating healthy and tasty snacks without any preservatives. Moreover, their snacks are available in dairy-free form, with options for those seeking keto-friendly choices. The founder’s vision is to make healthy food the norm, not an exception. Priyasha sought an investment of ₹60 Lakhs in exchange for 2% of the company, valuing her business at ₹30 Crores.

On the show, The Cinnamon Kitchen presented Keto Cake, Vegan Cheese Chips, Apple Crumble Cake, Oh Fudge, and Flourless Almond Butter cookies. Deepinder liked the keto cake, and overall, the Sharks had positive comments on the products. The founder shared that the products are manufactured in their own factory in Noida, spanning 2500 square feet. They are available for purchase through their website, select retail locations offline, and online marketplaces like Blinkit, Amazon, etc.

The Cinnamon Kitchen’s Financials on Shark Tank India:

The Cinnamon Kitchen began in 2019, operating in two categories: Packaged grocery items and Fresh Cakes & Bakery. 25% of their sales come from Fresh cakes, and the rest are from packaged goods. At the time of the pitch, the company had 45 SKUs, including packaged chocolates. Their products have a 15-day shelf life and cost around ₹70, with the selling price of vegan Nutella at ₹550.

The Cinnamon Kitchen generated revenue of ₹1.4 Lakhs in the first financial year (FY19-20), followed by a growth rate of over 700% to ₹12.5 Lakhs in FY20-21. The company made ₹25 Lakhs in FY21-22 and closed FY22-23 at ₹82 Lakhs. They project to achieve ₹6 Crores in FY23-24 as they have started performance marketing, with ₹1.3 Crores in the first 6 months of the year till September 2023. Their profit margin is at 30%.

Notably, The Cinnamon Kitchen was completely bootstrapped at the time of the pitch. The founder shared that the company started with only ₹50,000, and she grew this business without any additional funding up to this stage.

The Cinnamon Kitchen Shark Tank India Negotiations & Funding:

Namita was the first Shark to opt-out due to the small size of the healthy snacks market and the intense competition. Vineeta was the first Shark to give an offer, proposing ₹60 lakhs for 10%, valuing the business at ₹6 Crores. She added that this is purely a bet on the entrepreneur, as these kinds of businesses are not usually investable. Deepinder Goyal opted out due to a conflict of interest with Zomato and Blinkit, preventing him from investing in restaurants, bakeries, and D2C brands.

Anupam expressed personal interest in the market and asked Vineeta if he could join her. Vineeta accepted, and they jointly offered ₹60 Lakhs for 10%, maintaining the same valuation. Aman gave an offer of ₹10 Lakhs for 2% and the rest as debt at 12% interest, repayable in the next 2 years. Priyasha asked if Aman could consider a straight equity deal. She countered all Sharks at ₹60 Lakhs for 4%, to which Aman said he would close the deal at 5%.

Deepinder Goyal jumped in to recommend entrepreneurs raise more money for more equity. He suggested she raise ₹1.2 Crores for 10%, and she accepted, pitching ₹1.2 Crores for 10%, asking for a ₹12 Crore valuation. Vineeta opted out of negotiations, feeling Priyasha preferred Aman. Aman stuck to ₹60 Lakhs for 5%, which Priyasha accepted after a brief conversation with the Sharks.

Who is the founder of The Cinnamon Kitchen?

Priyasha Saluja is the founder of The Cinnamon Kitchen. Diagnosed with PCOS at the age of 13, she has previous working experience in marketing. She humorously shared that her credit score is 838.