‘Arista Vault’ के Smart Luggage में बैठकर Sharks ने की Ride | Shark Tank India S3 | Full Pitch

Shark Tank India

27 Feb 202416:35

Summary

TLDRIn this Shark Tank India episode, Purvi and Atul Gupta from Delhi pitch their startup, Arita World, offering innovative solutions to the luggage industry with their flagship product, a 'Follow Me' smart suitcase that promises hands-free airport navigation and the ability to carry the user. They've sold their smart products to 35,000 customers, aiming to solve lost and theft issues with technology such as app-connected wallets and fingerprint locks. Seeking ₹5 lakh for 1.5% equity, they showcase their journey, from inception at India Runway Week 2017 to securing investments and government support. The sharks express concerns over technology, branding, and scalability, leading to a nuanced negotiation, concluding with a conditional deal blending equity and debt.

Takeaways

💻 Atul Gupta and Purvi, founders of Arita World from Delhi, introduced an innovative smart luggage solution to the luggage industry.
🛍 The highlighted product is a 'Follow Me Suitcase' that can follow the owner, allowing for hands-free operation at airports.
🛎 Additionally, they've developed bags with fingerprint locks and a smart wallet that connects to an app for easy location of lost wallets or mobile phones.
📲 Their smart wallet also features a map location tracker and a remote selfie function, enhancing the travel experience with technology.
💵 Seeking an investment of ₹5 lakhs for 1.5% equity, showcasing their commitment to solving the problem of lost belongings with their innovative products.
💰 They have already sold their smart products to 35,000 customers, indicating market acceptance and potential for growth.
🔧 Their journey began at India Runway Week 2017, where the founders met and decided to address the hassle of lost and stolen items with their company.
💼 The team has received support from the Ministry of Electronics and IT, indicating governmental backing for their innovative solutions.
📈 They presented a strong financial background, with significant sales growth over the years and notable investments from various sources.
📱 Demonstrated the versatility and practicality of their products through live demonstrations, including the ability to ride the suitcase and its follow-me feature.

Q & A

What is the name of the startup founded by Pooja, Atul and Colonel?
-The startup is named Arrita World.
What problem does Arrita World aim to solve for travelers?
-Arrita World aims to solve the problem of luggage getting lost for travelers using their innovative products like smart luggage, smart wallets, and fingerprint locked bags.
What smart luggage features does Arrita World offer?
-Arrita World's smart luggage comes with features like automated following capability, ability to ride on the luggage when tired, built-in charger, removable battery, selfie button, and GPS tracking.
How much funding has Arrita World raised so far?
-Arrita World has raised Rs 2.5 million initially at a Rs 11 crore valuation. They then raised Rs 1.2 crore at Rs 12 crore valuation. Most recently, they raised Rs 1.4 crore at Rs 20 crore valuation.
What is Arrita World's main distribution channel?
-Most of Arrita World's sales (30-40%) happens through their website e-commerce channel. The remaining major channels are B2B sales and corporate gifting.
How does Anupam view the market size opportunity?
-Anupam is skeptical about the $14 billion market size claim. He estimates the realistic current market size for smart luggage to be around Rs. 450 crores in India.
What are some of Anupam's concerns regarding Arrita World's business?
-Anupam is concerned that Arrita World's tech advantage may not be sustainable as bigger players can replicate it. He is also concerned about lack of manufacturing competitiveness and a confused branding strategy.
What counter offer does Anupam propose to Pooja and Atul?
-Anupam offers Rs. 2 crores for 10% equity in Arrita World along with a Rs. 2.5 crore debt facility at 18% interest for 2 years.
What condition does Anupam put for his proposed investment?
-Anupam's proposed investment is conditional on Arrita World's Dubai distributor deal for Rs. 10 crores in sales in the first year going through successfully.
Does Arrita World accept Anupam's offer?
-Yes, Pooja and Atul accept Anupam's offer of Rs. 2 crores for 10% equity and Rs. 2.5 crore debt at 18% interest for 2 years.

Outlines

00:00

😊 Introducing smart luggage products

Purvi and Atul, founders of startup Arita World, pitch their smart luggage products to the Sharks. Their flagship product is a follow me suitcase that can follow you autonomously in the airport. It also has footrests to sit on when tired. Other products include fingerprint locked bags and smart wallets that can be tracked via an app.

05:01

😃 Discussing market size and financials

Atul shares that the Indian luggage market is $14 billion currently and growing. He expects the smart luggage market to reach $10 billion in India in the next 5 years. Arita World has done ₹4 crore in sales so far this year, projecting ₹9 crore sales for the full year with ₹1.5-2 crore in profits. Their unit economics show 40% COGS and 20% net margins.

10:02

😉 Evaluating business model and concerns

Anupam points out concerns regarding sustainability of technological competitive advantage and distribution reach compared to larger competitors. He offers ₹2 crores for 10% equity, conditioned on a pending $10 million Dubai deal being confirmed. Purvi counters with ₹2 crores for 1% equity and ₹2.5 crore debt.

15:04

😕 Withdrawing from deal

After deliberation, Anupam withdraws his offer, concerned that the business seems too early-stage and complex in terms of technology integration. He suggests focusing first on scaling the smart wallets product before expanding into more categories.

Mindmap

Keywords

💡Smart luggage

Smart luggage refers to luggage that has built-in features like GPS tracking, battery packs, Bluetooth connectivity, etc. This is the core product being pitched in the video. The founders claim their smart luggage solves problems like items getting lost while traveling.

💡Market size

The market size refers to the total value or expected revenues for the smart luggage industry. The founders estimate it to be a $14 billion market currently in India, which they expect will grow as more people start traveling post-pandemic.

💡Sales

Sales refer to the amount of revenue generated by selling products. The founders report sales worth Rs. 3.6 crores in 2021-22 and expect it to grow to Rs. 9 crores in 2023-24. This indicates fast growth and market traction for their smart luggage.

💡Manufacturing

Manufacturing refers to the process of making or assembling the smart luggage products. The founders currently outsource manufacturing to a factory owned by a family member rather than doing it themselves.

💡Distribution

Distribution refers to how the smart luggage reaches customers after manufacturing. The founders sell mainly through their own e-commerce website and some B2B clients rather than traditional retail stores.

💡Design

Design refers to the look, style, features etc. of the smart luggage products. The founders aim to create luxury designs though the investors point out some shortcomings in consistency and branding.

💡Competition

Competition refers to other players in the market who sell similar products. The investors warn about incumbent luggage brands catching up and replicating the smart features, making it difficult to retain a competitive advantage.

💡Angel investment

Angel investment refers to funding provided during early stages of a startup, often by wealthy individuals. The founders have raised money from various angel investors over multiple rounds to grow the company so far.

💡Equity

Equity refers to ownership share in a company. The investors offer to provide funding in exchange for equity stake in this startup to get returns later if it grows.

💡Valuation

Valuation refers to the total worth or price tag estimated for a company. The startup's valuation has increased from Rs. 11 crores to Rs. 20 crores over multiple investment rounds based on its growth potential.

Highlights

The founders started the company Arrita World in 2017 to solve lost and theft issues with innovative products

Key products include smart luggage that follows you, smart wallets with tracking features, and fingerprint lock bags

The company has made sales of almost 40 million rupees so far across smart luggage, smart wallets and bags