- Founder: Yashas Alur, GD Prasad & Rahul Bajaj
- Business: Filter Coffee
- Ask: ₹ 60 Lakhs for 1.5% Equity
- Valuation/Net worth: ₹40 Crores
- Result: ₹19 Lakhs for 1% Equity and ₹41 Lakhs @ 10% interest
- Sharks: Namita Thapar
- Episode: Season 2 Episode 16
VS Mani & Co. Shark Tank India Pitch:
VS Mani & Co was founded in Bangalore in 2020, initially specializing in the sale of authentic-tasting filter coffee. In May 2023, they expanded their offerings to include South Indian snacks. South Indian filter coffee is derived from the root of the chicory plant and contains no caffeine. They sell their products through their Shopify website, Amazon, various retailers, and supermarkets.
Anupum has already invested in this company and has chosen to step back from any decision-making to avoid influencing the process. Angel Investors hold 21% of the equity, GD Prasad holds 45% as the CEO of the company, Yashas owns 14% as the head of growth, and Rahul possesses 14% as the head of operations. Additionally, The remaining 6% is owned by the family
VS Mani & Co. Shark Tank Negotiation:
At Vani Mani & Co., the majority of their sales, 60%, come from coffee, while the remaining 40% is attributed to snacks. In the fiscal year 2020-21, they recorded sales of INR 15 lakhs. The following fiscal year, 2021-22, saw a substantial increase to INR 1.2 crore, and from 2022 up to the airing of the episode, their sales have already surpassed INR 2 crore. In addition to that, They have set their sights on achieving INR 7.5 crore in the fiscal year 2022-23. In 1 month, they achieved sales of around INR 60 lakhs, but they also incurred a cash burnout of INR 20-25 lakhs.
Their monthly expenses are significant, totaling INR 85 lakhs, with INR 25 lakhs allocated to product costs, INR 33 lakhs for marketing, INR 5 lakhs in salaries, INR 7.5 lakhs for shipping, and the remaining INR 14.5 lakhs for administrative expenses. While, The value of their cash burnout left all the sharks shocked, and Namita raised questions about how they were valuing their company and what the valuation was in their previous fundraising round.
GD explained that they had raised INR 3.96 crore at a valuation of INR 15 crore in March 2022. Peyush, Amit, and Aman decided to opt out due to concerns about the business model. Namita made an offer, motivated by her love for filter coffee. She offered INR 15 lakhs for a 1% equity stake and INR 45 lakhs at a 10% interest rate. Vani Mani & Co. countered with an offer of INR 19 lakhs for a 1% equity stake and INR 41 lakhs at a 10% interest rate. Namita accepted their counteroffer, and the deal was finalized.
What happens to VS Mani & Co. after Shark Tank India:
Our research in the company revealed that the deal with Namtia never closed. GD Prasad shared on the podcast that the deal didn’t make any sense and it was a “Shitty Deal,” and they already had interest from other parties in investment. He added that they took a deal that they didn’t necessarily want, and he doesn’t even know why they took it. Despite that, the company is still in business and thriving.
They have over 48,000 followers on Instagram and regularly update their pages. GD Prasad shared on a podcast that their sales increased by 20 times for three to four days just on Amazon after the episode aired, and their supply chain became disrupted due to the high volume of orders. He also shared that they prepared for 2 times growth. He also said that Shark Tank’s reach is huge, and it was the right move to go on the show for overnight visibility. They have also expanded into retail stores all over the country.
GD Prasad tips for new entrepreneurs:
GD Prasad shared some tips for new entrepreneurs in a podcast as well. he shared their strategy that their plan from the start was to move forward with only one hero product, which was just an instant filtered coffee powder that they scaled for about a year and a few months. He shared that there needed to be a clear idea of how many SKUs you can manage.
He also said that they were aligned with their manufacturer from the first day and had clear expectations set and the capacity to handle the demand. He shared that they started with 5,000 units a month and went up to 50,000 units for the same SKU, and after that, they started with the second SKU.
Source: Source: VS Mani & co Instagram
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