Is Qzense Labs out of business after Shark Tank India?

• Founders: Rubal and Doctor Shrishty
• Business: Food Freshness Detector
• Ask: ₹1CR for 0.25% equity
• Valuation: ₹400 Cr.
• Result: No Deal
• Sharks: No Deal

Shark Tank Pitch:

Meet Rubel, a 31-year-old entrepreneur from Mohali, and Dr. Shrishthy. They had a simple but tricky question for the sharks: Can you tell if the apple in your hand is fresh or not? Turns out, it’s not that easy. In India, a whopping 92,000 crore worth of organic produce goes bad each year because people can’t answer this question. It’s like playing a guessing game with your food’s freshness. But fear not, they’ve developed a solution – a patented device called Q Scan, proudly made in India.

The Q Scan Device:

The Q Scan device is a game-changer. It’s 95% accurate at telling you how fresh your fruit is, and the best part? It won’t harm your precious fruits or veggies. The device has two lights: one red and one green. Green means your fruit is fresh, and red means it’s not. It can even tell you how sweet your fruits are. Their revenue this year is 15 lakhs, and the device costs around ₹15,000.

Shark Tank Negotiations:

Now, let’s dive into the Shark Tank discussions:

1. Consumer Habit: Aman asked if people would need to change their eating habits. The response was that it’s not for consumers yet; they’re focused on retailers and wholesalers. Aman followed up with a big question: Is the company worth ₹400 crores?
2. Global Market: Namita wondered if similar technology existed worldwide. The entrepreneurs acknowledged that similar tech is out there.
3. Revenue Model: Ashneer wanted to know how they make money. They’re all about Quality Control right now, planning to digitalize a warehouse and rent it out. But Ashneer was still a bit puzzled about their model. The entrepreneurs explained that they charge an initial cost of 45-50 thousand upfront with extra services available.
4. Valuation Challenge: Anupam and Aman were still curious about the ₹400 crore valuation. The entrepreneurs consulted their CA and shared their journey – they’d raised 1.8 crores in a pre-seed round and closed a second round at 5 crores with a valuation of 24 crores. Aman questioned how it jumped from 24 to 400 crores, especially since they’ve only sold 30 devices. The entrepreneurs argued that these sales validated customer contracts, but Anupam disagreed, thinking they were in it for publicity, and he backed out.

Aman also exited, citing valuation, and Namita followed suit. Vineeta asked for projections, and Rubel said they expect ₹5 crores this year, shooting up to ₹20 crores next year. She made an offer of 1 crore for a 5% stake. Ashneer, still puzzled by the valuation, backed out. Rubel countered Vineeta’s offer with 1 crore for a 0.5% stake, but Vineeta turned it down.

Post-Shark Tank Success and National Recognition:

So, what happened after Shark Tank? Well, it seems qZense Labs had quite a journey. They made it to the Forbes Asia Top 100 to Watch list, published on August 9, 2021. But that wasn’t all. In 2023, qZense Labs received the prestigious National Technology Award from the Government of India, further highlighting their remarkable achievements.

As of September 2023, qZense appears to be a resounding success story. They’re experiencing significant growth with a client base that includes Udaan, Country Delight, and Captain Fresh. In addition to their innovative sensors, the company now offers cold storage and automation services, expanding their reach and impact. While revenue estimates exist, the company hasn’t officially published numbers. For more updates on Shark Tank companies, explore other articles on this site.

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Image source: Qzense Labs website

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