Two Hyderabad sisters presented their brand of natural supplements, Earthful, in the last episode of Shark Tank India. The sisters said that their hero’s product is a pill for menopausal women. The founders aimed at an evaluation of RS 75 crore, asking RS 75 Lakh per 1% of equity, showing substantial growth of their initial income.
Despite the initial interest, the land has increased several red flags among investors.
The founder of Titan Capital, Kunal Bahl, was worried about their product market adjustment. He underlined the low rehearsal rates and noted that even with an out -of -competition product – a pill for menopausal women – they still had to spend in marketing to attract return customers. He withdrew from the agreement.
The co-founder and CEO of Sugar Cosmetics, Vineeta Singh, was particularly alarmed when the founders said that the pills should be consumed within 2 months for better efficiency and revealed that their shelf life was 12 months.
The sisters later revealed that they insisted that the user should finish a bottle in 2 months because they wanted fast reversals. To this, Singh said: “It’s scary.”
The director general of Emcure Pharmaceuticals, Namita Thapar, expressed her concerns about the phrasing on the product. Thapar asked even if the founders were talking about efficiency, why someone would take a product after it was no longer effective.
She added that the product label can be easily interpreted as an expiration.
The founder of Thapar and Shaadi.com Anupam Mittal was skeptical about the lack of clinical trials. Anupam even called the founders for having made major complaints without conducting clinical trials.
In addition, he criticized the slogan, “” nutrition that looks like comforting foods “, I have no idea what it means. How can pills be comforting foods?” Vineeta Singh also withdrew from the offer, mentioning financial and logistical concerns.
She said that she did not think that the founders faced a problem with lands, but there are other problems that are much more important than PMF. Singh added that even if the founders are faced with losses, their losses decrease.
“I think there are a few problems, the most important is your 12 -month shelf life. It could take four months for your product just to reach customers. In addition, you have not budgeted an inventory that could expire on your side, and it is very dangerous in a loss business. And if only 35% of customers come back in a year, it’s very less.”
Despite concerns, Ritesh Agarwal offered a conditional agreement, offering 75 Lakh rupees for 2.5% of equity, reduced to 2% during negotiations, based on income projections. This agreement was accepted by the sisters.
