How is RAJA RANI doing after Shark Tank India?

Founder: Mohit Kalubhai Gadhiya & Priya Mohit Gadhiya
Business: Coaching Classes
Ask: ₹1.3 crores for 5% equity
Valuation/ Networth: ₹26 Crores
Funding: No Deal
Sharks: No Deal
Episode: Season 3 Episode 14

RAJA RANI Shark Tank India Pitch:

RAJA RANI founders shared that India has a tailoring market of ₹27,000 crores and is mostly unorganized. To organize this and spread this talent, RAJA RANI coaching was formed. They claim to be India’s fastest-growing tailoring academy. They have trained over 70,000 students across India in the past two years for tailoring and design. The founder’s vision is to expand pan India with the help of hybrid centers, and to fulfill this, they sought an investment of ₹1.3 crores for 5% of the company, valuing their business at ₹26 crores.

RAJA RANI offers a full 4-month course for ₹37,500. That one full course has 9 different sub-courses. They offer both online and offline classes. Offline classes, however, are only available in Surat. They also provide both live and pre-recorded classes. They source students through Instagram and YouTube. At the time of their pitch, RAJA RANI had over 7 lakh Instagram followers and around 1.5 lakh subscribers on YouTube.

RAJA RANI Financials/Revenue during Shark Tank India:

RAJA RANI also provides workshops which start at ₹99. Further, Their best-selling class is Blouse Masterclass which is priced at ₹4,400. They had 20,000 students in August 2023. Their monthly downloads for their app are 10,000, out of which 30% is conversion rate.

RAJA RANI closed the last financial year of FY22-23 at ₹78 lakhs. They have launched their application in March 2023 and have done revenue of ₹2 crores since then (till September) for FY23-24. They are projecting to close the year with ₹6 crores in revenue. Their projected profit is at 44%.

For unit economics, their GMV is ₹118. After GST, that leaves them with ₹100. ₹25 goes to the cost of goods, which gives them ₹75 in gross margin. Their customer acquisition cost is ₹7, and they also have other expenses of ₹1. This leaves them with EBITDA of ₹67. Depreciation also accounts for another ₹1, and that leaves them with a profit before tax of ₹66.

RAJA RANI Shark Tank India Negotiations & Funding:

Vineeta was the first shark to go out due to market size and the business not being investable at this stage. Aman felt like the entrepreneurs should not take an investment; therefore, he goes out. Namita offered assistance without investing as she also had a similar opinion as Aman.

Anupam gives the first offer of ₹50 lakhs for 10% of the company and the rest as debt at 15% interest. Amit gives a royalty offer, where he offered ₹1.3 crores for no equity, but he would take 10% of the net sales until he makes 2X of his capital back. He also matched Anupam’s deal and presented that as his second offer. Anupam also matched the royalty offer which was presented by Amit. The founders take a moment to think and come back to counter at ₹50 lakhs for 6% and the rest as debt. Sharks refused that counter, and entrepreneurs decided to walk out of the tank without a deal.

Who are the founders of RAJA RANI?

Mohit Kalubhai Gadhiya & Priya Mohit Gadhiya founded RAJA RANI. They have both done a fashion design course from the International Institute of Fashion Design, Surat. They both own the company 50/50.