How is Urban Space Doing After Shark Tank India?

Founders: Rohit Agarwal & Radhika Koolwal
Business: Home Furnishing
Ask: ₹1.8 crores for 1% equity
Valuation/ Networth: ₹180 Crores
Funding: No Deal
Sharks: No Deal
Episode: Season 3 Episode 17

Urban Space Shark Tank India Pitch:

Urban Space is an Indian startup which appeared on Shark Tank India Season 3, Episode 17. They design and manufacture products to fulfill all your home furnishing dreams. Their product line includes bedsheets, curtains, table linens, carpets, and more. They have over 1200 SKUs. All their products are made with high-quality fabric which can be purchased through their own website and other marketplaces like Amazon. The founders want Urban Space to be a one-stop solution for all home furnishing needs, and to fulfill this vision, the owners sought an investment of ₹1.8 crores for 1% of the company, valuing their business at ₹180 crores.

Urban Space Financials/Revenue during Shark Tank India:

Urban Space started in 2016 and is currently at an annual run-rate of ₹45 crores for FY23-25. The owners shared that they are projecting to close in October 2023 with a revenue of ₹8 crores, and their total for this financial year would be at ₹29 crores so far. Previously, In FY22-23, they clocked a revenue of ₹22.5 crores. Moreover, Curtains bring around 45% of their total revenue, and they have around 400 SKUs in that category alone. Bedsheets make up another 25%, and the rest comes from other products.

Urban Space has its own manufacturing setup which gives them a unique advantage over their competitors in quality, speed, and pricing. Further, They only spend about 7% of their sales on marketing. Additionally, the average rating of their products is around 4.5 stars. Also, 85% of their revenue comes from marketplaces, and the rest comes from their own website. Amazon is the biggest seller and would bring in around ₹20 crores of revenue for the brand in FY23-24. Their projected net margin this year is at 25%.

Urban Space shared that their average selling price is around ₹1,100. 33% of that goes to cost of goods, 17% goes to shipping and commissions, marketing takes another 7%, 5% goes to overhead, and returns make up another 12%. Finally, after taking GST of 7%, this leaves them with EBITDA of 19%. They have a repeat rate of 25% on marketplaces and 31% on their own website. Their Dormancy rate is at 25%, and net promoter score is a strong 89%.

Urban Space Shark Tank India Negotiations & Funding:

Aman was the first shark to go out due to not having an extensive knowledge of this industry to help entrepreneurs grow this venture. Namita couldn’t figure out how she would take an exit from this business, therefore she also goes out of the negotiations. Vineeta didn’t see a brand story in this, and she felt like there would be difficulty in scaling, therefore she also goes out of this deal.

Amit liked the product and entrepreneurs but didn’t like the valuation. He offered ₹1.8 crores for 2% of the company and asked for 5% royalties until he recoups ₹2.7 crores and then royalties go away. Anupam gives the same offer as Amit but he would only take 3% in royalties until he makes 2X of his money which would come to ₹3.6 crores. Anupam suggests Amit to combine their offer to which he agreed, and they presented their final offer of ₹1.8 crores for 2% and 3% royalties until they make a total of ₹3.6 crores back.

The owners take a moment to think and come back to decline both the offers. They added that they would not do a royalty deal, and the max equity they could give away would be 1.25% for ₹1.8 crores, valuing the business at ₹144 crores. Anupam commented that the owners were only there for marketing, therefore he goes out of the negotiations. Amit also follows Anupam’s lead and goes out due to the same reasons. Urban Space leaves the Shark Tank without a deal.

Who are the owners of Urban Space?

Rohit Agarwal & Radhika Koolwal own Urban Space. They are based in Ahmedabad, Gujarat. Rohit comes from a family business of textiles. They got married in 2016.