How is TURMS doing after Shark Tank India?

Founders: Surender Singh Rajpurohit
Business: Apparel
Ask: ₹1.2 Crores for 2% Equity
Valuation/ Networth: ₹60 Crores
Funding: ₹1.2 Crores for 4% Equity
Sharks: Azhar Iqubal
Episode: Season 3 Episode 4

Turms Shark Tank India Pitch:

Turms is an Indian apparel startup that appeared on Shark Tank India Season 3 Episode 4. They use technology to make intelligent apparel. Their clothing line comes with features like anti-stain, antibacterial, antifungal, and anti-odor, made possible by their hydrophobic technology. They also sell 30 days no-wash jeans that stay fresh without a wash for 30 days. Their latest addition to the line is 7-day no-smell socks. The founder’s vision is to make Turms a creative, innovative, and global brand; therefore, they asked for an investment of ₹1.2 Crores for 2% of the company, valuing their business at ₹60 Crores.

Turms has sold over 4 Lakh products since its inception. Interestingly, Peyush has already invested in the brand, and he commented that the company has not repaid or helped him write off those as a loss yet. Surender shared that he worked on three things after acquiring the business, which helped him turn it around. He optimized packaging, streamlined logistics, and cut down the team size.

Turms Financials during Shark Tank India:

They started this new venture after acquiring it in October 2022 and made a revenue of ₹57 Lakhs in FY22-23. Turms closed last month, which would be October 2023, at ₹86 lakhs of revenue, and out of that, they made ₹9.72 Lakhs in profits. They are expecting to close FY23-24 between ₹10-12 Crores and generate profits of ₹70-80 Lakhs. 90% of their sales come directly from their website, and the rest come from Amazon. They are hoping to touch monthly sales of ₹2 Crores by March 2024 with ₹25 lakhs of net profits. In FY22-23, the company burned ₹1.2 Crores in total, mainly spent on marketing.

While Turms does not have a pricing advantage, Surender shared that their products are still in high demand. On average, their tech products are 50% more expensive than regular products. Their jeans sell for ₹3000, and their shirts sell for ₹999. Their sales returns and RTO are only at 10%. Surender shared that cricketer MS Dhoni also uses their shirts.

Turms Shark Tank India Financials & Negotiations:

Turms gets the first offer from Aman for ₹1.2 Crores for 4%, plus royalty of 5% on sales until he makes his money back. Peyush felt like the company still needed to work on R&D to validate their claims; therefore, he goes out. Anupam gives the second offer of ₹1.2 crores for 4% and royalty of 2% until he makes 1.5X his investment, which would come to ₹1.8 Crores.

Azhar comes in with another offer of ₹1.2 Crores for 4%, but no royalties like other offers. This valued Turms at ₹30 Crores. Vineeta goes out because while she wanted to offer the deal, her offer would come in at a ₹20 crore valuation, and she couldn’t match Azhar’s offer. Surender commented that he would not accept a royalty offer, after which both Anupam and Aman go out, and the company accepted Azhar’s offer without any hesitation.

Who is the founder of Turms?

Surender Singh Rajpurohit was a customer of Turms in 2018 when he realized the potential of this business. In 2022, he decided to acquire the business for ₹15 Crores. He worked in the automotive industry for 15 years.