The Health Factory Shark Tank India Pitch:
The Health Factory is a food startup which appeared on Shark Tank India Season 2. The founders shared that they have created their products with the help of international food technologists. They claimed to be the first company to make protein bread in India. The founders sought an investment of ₹75 Lakhs in exchange of 2.1% equity in their company valuing the business at ₹35.71 Crores.
The Health Factory’s unique selling proposition is that their breads contain 300% more protein with 20% fewer carbs as compared to regular bread. Not only that, they are also low in fat and sugar as compared to regular breads. At the time of their pitch, the brand has already expanded to over 100 stores in Mumbai and Pune. They were also available at all the major online marketplaces. They also provide subscription through their own website.
The Health Factory does not have a price advantage over the regular brands as their products are 1.5X the cost of the competition. The company sells their 250g pack for ₹60 as compared to 400g packs for ₹50 from other brands. The founders shared that the industry in India is worth over 8000 Crores out of which around 55% is organized.
The Health Factory’s Financials during Shark Tank India:
The Health Factory has already closed a fund raise in May 2020 where they raised ₹1.83 Crores. The founders shared that their sales before the fundraise were around ₹11 Lakhs. The company was started in 2018. In the first full financial year, the brand made a revenue of ₹75 Lakhs, followed by ₹60 Lakhs due to COVID. They bounced back to ₹90 Lakhs in FY22. The company was at a monthly revenue of ₹30 Lakhs at the time of their pitch and projecting to close the year at around ₹5 Crores for FY23. The founders added that they have ₹1.4 Crores in bank still.
For the unit matrics, their raw material and packaging costs come to 32%; manufacturing costs take another 12%, leaving them with a gross margin of 56%. Delivery charges take another 13% out of the gross margin. In August 2022, on the revenue of around ₹30 Lakhs, the company burned ₹6 lakhs. The founders shared that they would still be at a loss by the end of the year. The founders shared that their biggest issue is wastage which is 12-15%.
The Health Factory Shark Tank India Negotiations & Funding:
Namita was the first shark to go out due to a conflict of interest. She shared that she had just invested in a similar company a few months ago. Anupam didn’t like the questionable health claims of the brand therefore, he went out as well. Vineeta wasn’t interested in the partnership therefore she went out as well. Peyush and Aman thought the execution was too slow therefore they went out as well.
Who are the founders of The Health Factory?
Vinay Maheshwari & Mohit Sankhala founded The Health Factory. Vinay is 31 and Mohit is 27 years old.
How is The Health Factory doing after Shark Tank India?
Our research in The Health Factory revealed that while the company did not get a deal on the Shark Tank India their appearance on the show had a positive impact on the business. As of November 2024 the company is still in business and thriving.
The company’s founder, Vinay, shared on the Powerful Humans podcast that they are the healthiest option for bread. He added that two years since their shark appearance and since then they have grown 50X which gives os their estimated annual revenue of ₹250 Crores. He added that sharks views on the industry were very different and they weren’t as seasoned so that is the reason why they could not secure a deal. You can check out their products by clicking the Amazon button below!
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Here are other companies from Season 2 Episode 46.