Preserving flowers in artistic forms allows LeafyAffair, a firm producing botanical lifestyle products including floral jewelry and stationery, to create Wearable art seeks to bring nature right into people’s reach. Operating with an 80% gross margin and a 35% EBITDA, Supriya Donthi founded the company and predicted ₹3 crores for the next cycle, having sold ₹1.1 crores. The Sharks expressed concerns about scalability and the possibility for rivals to copy the idea notwithstanding these impressive figures.
Company Name: Leafy Affairs
Founder: Supriya Donthi
Product: Botanical Lifestyle Brand
Highlights
1. Product Range: Focusses in floral jewelry and stationery, created by artistic floral preservation, under botanical lifestyle items.
2. Sales & Growth: With a forecast ₹3 crores in the next cycle, sales for FY 2021-2022 come out to be ₹1.1 crores.
3. Operates with an EBITDA of 35% and a gross margin of 80%.
4. Unique Idea: Emphasizes keeping flowers as worn art to bring the outdoors right in front of people.
5. Sharks voiced questions on scalability and the possibility of rivals duplicating the concept.
Pitch Details
Ask: ₹50 lakhs for 2.5% equity, valuing the company at ₹25 crores.
Deal: After negotiations, deal couldn’t happen
Investors: NO DEAL
Conclusion: The proposal for LeafyAffair in Shark Tank India Season 2, Episode 24, underlined an original idea of artistic preservation of flowers in forms like jewelry and stationery. The Sharks expressed worries about the scalability of the company and the likelihood of rivals copying the concept, even while the brand shown great sales and high profit margins. The lack of a clear road for mass expansion resulted in the choice not to invest even with the outstanding product and development possibilities. The pitch came off without a contract, so leaving the entrepreneur to investigate alternative paths for expansion.
Key Takeaways from the Episode
1. Set a Realistic Valuation: Overvaluing your business can lead to rejection.
2. Know Your Metrics: Have clear data on revenue, costs, and growth potential.
3. Be Open to Negotiation: Flexibility can help secure an investment.
4. Strong USP: A unique product or service helps you stand out.
5. Understand Your Market: Have a clear strategy for reaching and scaling your target market.
6. Preparation is Crucial: Be well-prepared and confident in your pitch.
7. Manage Equity Wisely: Offer reasonable equity in exchange for investment.
8. Stay Resilient: Learn from rejection and stay confident.
9. Solve Real Problems: Focus on innovation that addresses actual market needs.
10 Adapt and Learn: Be open to feedback and adapt your strategy.
