NOCD symbolize for “No Ordinary Caffeinated Drink.” It is a natural energy drink devoid of dangerous substances that are frequently present in conventional energy drinks. The product is aimed at health-conscious people who want to increase their energy levels without sacrificing their health. The founders made it clear that they were committed to developing a product that would complement the worldwide movement toward better food and drink options.
The pitch highlighted the growing demand for healthier alternatives to traditional sugary energy drinks and positioned NOCD as a unique offering in the market.

Company Name: NOCD

Founder: Siddharth and Vinay

City: Bengaluru

Product: Energy drink

Highlights

• The founders shared early traction and customer feedback, indicating promising growth in niche markets.
• They highlighted the potential of the growing energy drink market in India, especially among urban consumers.
• The sharks questioned how NOCD stands out in an already crowded energy drink market dominated by global giants like Red Bull.
• Building a strong brand presence and educating consumers about the product’s benefits were seen as significant hurdles.
• The valuation of ₹25 crores seemed high for a company in its early stages with limited market penetration and revenue.
• The sharks highlighted the importance of scaling production and distribution while maintaining quality and affordability.

Pitch Details

Ask: ₹50 lakh for 2% equity.

Deal: After negotiations, a deal was secured for ₹20 lakhs for 15% equity and ₹30 lakhs debt.

Investors: The investment came from Vineeta Singh.

Conclusion

The NOCD proposal illustrated the potential of energy drinks with a health focus in a cutthroat market. The sharks were pleased by the creators’ vision and product innovation, which led to a deal despite issues with valuation and scalability. In order to succeed in the beverage industry, the pitch stressed the significance of focusing on branding and matching valuations with market realities. The product aligned well with the global shift toward healthier, functional beverages. The use of natural ingredients and a sugar-free formula appealed to the sharks as a unique selling point. The founders had a clear vision of their target market, including fitness enthusiasts and young professionals.

Significant findings

• Valuation Must Match Market Position
• Importance of Branding and Marketing
• Health-Focused Products Have Potential
• Flexibility in Negotiation

Key Takeaways from the Episode

1. High valuations, as seen with qZense Labs, can be a barrier to securing investment, even with innovative products.
2. Practical solutions addressing everyday problems, like Peeschute’s disposable urine bag, are highly valued.
3. The NOCD deal highlights the importance of flexibility in deal structures, combining equity and debt to meet both parties’ expectations.
4. This episode showcased the diverse range of entrepreneurial ventures in India, emphasizing the importance of realistic valuations, innovative solutions, and adaptability in negotiations to attract investment.