How is Honey Twigs doing after Shark Tank India?

Founders: Kanishka Patel & Raj Shah
Business: Honey products
Ask: ₹75 lakhs for 3% Equity
Valuation/ Networth: ₹25 Crores
Funding: ₹75 lakhs for 3% Equity
Sharks: Ritesh Agarwal, Anupam Mittal & Peyush Bansal
Episode: Season 3 Episode 12

Honey Twigs Shark Tank India Pitch:

Honey Twigs is an Indian startup which appeared on Shark Tank India Season 3, Episode 12. They specialize in honey products, and their USP is their innovative packaging of honey, which makes it easier to consume in any setting. They have two natural and five infused variants of honey. All their honey is ethically sourced and lab-tested. They also claim to be a plastic-neutral brand. Honey Twigs is sold in nine countries across the globe through their own website, marketplaces, and retail supermarkets. Their products are also distributed to HoReCa and airlines. The founders sought an investment of ₹75 lakhs for 3% of the company, valuing the business at ₹25 crores.

Honey Twigs shared that they also sell their products through Starbucks. Not only that, the company added that their flavors are very popular with kids. Further, The product packaging is developed and manufactured in-house. 65% of their sales are domestic, and the rest are exports.

Honey Twigs Financials during Shark Tank India:

Honey Twigs closed their first financial year of FY20-21 at ₹1.3 crores. This was followed by a growth rate of 100% as they closed FY21-22 at ₹2.6 crores. The company made revenue of ₹4 crores in the last financial year, FY22-23. Also, They made ₹55 lakhs in June 2023, ₹18 lakhs in July, and ₹35 lakhs in August and September each. They are projecting to close this year with revenue of ₹6 crores without funding and ₹9 crores if they raise the funding. Their net profit for this year would be at 3%.

The company has raised two funding rounds so far. The first one was the Angel round where they raised ₹50 lakhs at a ₹2.77 crore valuation. Notably, this round was closed in 2017. In 2020, they raised a second investment round of ₹1.5 crores at a ₹12 crore valuation. Jigar and Paras have 36% of the company each, and Prafull has 5%, for which he invested ₹1 crore of his own money in this business.

Honey Twigs Shark Tank India Negotiations & Funding:

Aman liked the products, even though he added that he is not a fan of honey. Moreover, he felt like he could work well with the entrepreneurs as well; therefore, he offered ₹45 lakhs for 3% and the rest as debt at 10% interest with a 2-year term. Vineeta also wanted to invest, so she offered ₹75 lakhs for 4%, valuing the company at ₹18.75 crores.

Anupam and Ritesh joined hands to offer a Dream Deal of exactly what the entrepreneurs asked for, which was ₹75 lakhs for 3% of the company. Peyush asked if he could join Ritesh & Anupam’s offer, to which they accepted. Aman and Vineeta also came together to give another offer of ₹75 lakhs for 4% of the company.

Honey Twigs founders took a moment to think and came back with two options. First, they asked all Sharks to come together at ₹1 crore for 5%, or they would go with Anupam, Ritesh & Peyush’s offer of ₹75 lakhs for 3%. Notably, they were willing to lower the valuation to ₹20 crores instead of ₹25 crores offered to them to get all Sharks onboard. The Sharks decided not to do an All Shark deal, and they shook hands on ₹75 lakhs for 3% of the company.

Who are the founders of Honey Twigs?

Jigar Mehta, Paras Fatnani & Prafull Dwivedi founded Honey Twigs. Jigar is from Delhi, and his dad has a business which needed bee wax, giving him exposure to this market. Paras has worked in marketing and brand building in the past 10 years. He is born and brought up in Mumbai. Prafull has 25 years of experience in food, non-food, and FMCG businesses. He has also worked with Himalaya Herbal in the past.