- Founders: Amrit Nahar & Anand Nahar
- Business: Food outlets
- Ask: ₹1.5 Crores for 1%
- Valuation/ Networth: ₹150 Crores
- Funding: No Deal
- Sharks: No Deal
- Episode: Season 3 Episode 7
ZORKO Shark Tank India Pitch:
ZORKO is an Indian startup that appeared on Shark Tank India Season 3 Episode 7, specializing in pure vegetarian fast food. At the time of their pitch, they had 150 food outlets, opened in just 17 months since their inception. Further, They offer over 80 varieties of food products through their outlets, claiming to be an affordable food franchise chain providing good-quality food at competitive prices. They were available in over 42 cities across India in 6 states.
Their vision is to expand pan India with 1000 outlets in the next 1000 days and eventually enter the catering industry. Therefore To fulfill this, the founders sought an investment of ₹1.5 Crores in exchange for 1% of their company, valuing their business at ₹150 Crores.
ZORKO Financials during Shark Tank India:
ZORKO made ₹60 lakh in revenue from the first outlet in their first financial year. The founders added that this was despite the pandemic when shops had to close at 8 PM. Moreover, They are at an Annual run-rate of ₹30 Crores in FY23-24. ZORKO made ₹2.4 Crores in the month of August 2023, out of which ₹2.2 Crores came straight from franchise and raw material sales. The company added that they have a gross margin of 40%, and after expenses, they are making a net margin of 20%. They expect to make ₹4.5 Crores in profits after tax in FY23-24.
ZORKO charges a franchise fee of ₹3.99 lakhs, but it also includes kitchen accessories and raw material for the first time, and ₹50 thousand for marketing. The company added that once they open an outlet, it makes a revenue of ₹2-2.5 lakhs, which jumps to ₹3-3.5 lakhs after a year. All their outlets are franchises. 50% of their outlets are profitable, 30% are breaking even, and the rest are in loss. One outlet makes between ₹3-3.5 Lakhs per month, and it takes an initial investment of ₹8-9 lakhs to open one outlet. An outlet usually has a gross margin of 50% and a net margin of 25%.
ZORKO Shark Tank India Negotiations & Funding:
Peyush was the first shark to go out, citing that founders are racing to open more stores but they should change their focus to sustainably grow the sales of existing outlets. Vineeta shared the same sentiment; therefore, she also goes out. Anupam felt like the entrepreneurs were trying to do too much, which was not possible with the manpower they had; therefore, he also steps out of the negotiations.
Aman wanted to make an investment, but he asked Ritesh if he would come along with him, to which he agreed. They come up with an offer of ₹20 Lakhs for 1% equity and the rest as debt at 10% interest, valuing ZORKO at ₹20 Crores. Also, to note, the loan would come in with a 3-year term.
Entrepreneurs take a moment to think; they come back to counter Aman & Ritesh at 1% for 100 hours of mentorship. Aman refused that, citing he cannot commit to a certain number of hours, and they stick to their initial offer. The founders still pushed to get the sharks to commit 50 hours for 1% advisory shares and ₹1.5 Crores as debt at 10%, to which Ritesh agreed to commit, but Aman refused that commitment. Anand again pushed for commitment from Aman; after hearing that, he goes out, and Ritesh also goes out due to the founders being indecisive about their offers.
Who are the founders of ZORKO?
Amrit Nahar & Anand Nahar founded ZORKO. They are from Surat, Gujarat. Anand is a SEBI registered research analyst.
How is ZORKO doing after Shark Tank India?
Our research into the company revealed that despite ZORKO not getting a deal on the show, the brand continues to expand after their pitch. Their website suggests that they sell over 125,000 burgers every month through their outlets. ZORKO is still in business as of January 2024 and thriving! You can check out Shark Tank India products by clicking the link below!
Amrit shared some numbers on LinkedIn, providing more insights on the show. It had 1 million applications in Shark Tank Season 3 across India 🇮🇳, out of which only 1 Lakh were shortlisted for the 2nd Round ‘Form Filling,’ consisting of 17 pages with detailed information about business, documentation & story. In the 3rd Round, only 800 startups were selected for ‘Personal Interview & Due Diligence.’ In the 4th Round, only 200 pitches were selected to ‘Present in front of Sharks’ and enter the magnanimous Shark Tank 3 Days Shoot at Film City.
Source: Instagram @zorkobrand
Here is an update on other companies from Season 3 Episode 7.