- Founder: Gauri Kaushish Varma
- Business: Cake Decorating Products
- Ask: ₹1 Crore for 1% Equity
- Valuation/ Networth: ₹100 Crores
- Funding: ₹1 Crore for 2% Equity + 2% royalties until ₹1 Crore is recouped
- Sharks: Namita Thapar
- Episode: Season 4 Episode 1
CONFECT Shark Tank India Pitch:
CONFECT is an Indian startup which appeared on Shark Tank India Season 1 Episode 1. The founder shared that despite India being the second biggest exporter of sugar, we will import bakery ingredients from outside. So the founder came up with the idea of CONFECT. She added that all their products are made of fondant which is a smooth, sugar-based paste used to cover and decorate cakes creating a polish and often sculpted appearance.
The founder shared that she has spent over 2 years and over 400 attempts to bring this product to life. She added that all their products are clean and 100% vegan. Their product line includes premixes, cake sprinkles, fondant, edible laces and 800 more products. The founder sought an investment of ₹1 Crore in exchange for 1% equity in the company valuing the business at ₹100 Crores.
CONFECT is a supplier for 5-star hotel chains like Oberoi and Taj Hotels. The company also exports to USA, UK & Australia. The founder shared that they are also launching soon in Canada. The company primararily served its B2B clients prior to Covid-19 but they had to change strategies after the pandemic. The founder added that they have made over a million dollars in USA just in 1 year.
CONFECT’s Financials during Shark Tank India:
CONFECT had their first financial year in FY18-19 where they made ₹24 Lakhs. This was followed by ₹1.2 Crores of revenue in FY19-20, ₹3.4 Crores in FY20-21, ₹5.6 Crores in FY21-22, ₹4.5 in FY22-23 and they closed their last year with revenue of ₹8 Crores. The founder added that they have already made ₹7.5 Crores this year and they are projecting to close FY24-25 with ₹15 Crores of revenue.
CONFECT has primarily moved their entire business to exports because the founder shared that the Indian market is too price sensitive and they were losing market share to new players. She added that they were also having issues with storage and handling along with vendor management.
The founder said that she is at the tank to get funding so that they can open warehouses in the USA as that is where majority of their business is coming from. She added that they have also trademarked their brand in Europe and UK. CONFECT gets 60% of their revenue from Fondant in India whereas their share in the USA is only 15%. The founder shared that, their Hero product in the USA is their Sprinkles which brings in 65% of the revenue here.
CONFECT Shark Tank India Negotiations & Funding:
Peyush was the first shark to go out because he felt like the business was not ready for the investment. Vineeta felt like it was too early. Therefore, she went out as well. Anupam felt like the business still needed some work therefore, he went out as well. Aman goes out because he feels like the valuation is too high.
Namita gives the first and only offer with a condition that the founder would need to focus on India’s business as equally as their USA business as well. She offered ₹1 Crore for 2% equity in the company valuing the business at ₹50 Crores. She added that she would also take royalties of 2% until she recouped her ₹1 Crore back. The founder accepted that offer without hesitation.
Who is the founder of CONFECT?
Gauri Kaushish Varma founded CONFECT. She is from Delhi. Gauri went to Lady Sri Ram College for her higher education and then moved to the UK to study at Said Business School at the University of Oxford.
The founder started a bakery and a cloud kitchen in 2014-2015. She launched CONFECT brand’s first product in 2018.
How is CONFECT doing after Shark Tank India?
Our research in the CONFECT revealed that their appearance on the show had a positive impact on the show. The founder currently boasts a following of 80 thousand on Instagram. As for their deal with Namita, Early signs suggest that their deal did not go through but it could be because its not finalized yet. we will update this article once more information comes to light but in the meantime, you can check out their products by clicking the Amazon button below!
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