The goal of the brand TagZ Foods is to offer healthier snack options. They provide guilt-free popped potato chips that are created without frying and have less oil than conventional, fatty chips. The brand’s promise of healthful snacks without sacrificing flavor or texture is its distinctive selling proposition. Unlike traditional fried chips, theirs are manufactured with a popping process, which keeps them crunchy and crisp while making them healthier.
Growing health-conscious consumers, particularly among younger generations, who are looking for better snack options without sacrificing flavor, are the company’s target market.

Company Name: TagZ Foods

Founder: Anish Basu Roy and Utsav Agarwal

City: Bengaluru

Product: TagZ Foods, a premium snack brand, offers popped potato chips.

Highlights

• The founders shared that TagZ Foods had already reached an annual revenue of ₹6 crore with a rapidly growing customer base.
• The sharks raised concerns about the robustness of the business. TagZ Foods had made good progress but needed to scale quickly to reach a larger market.
• Some sharks were concerned about the company’s valuation and whether the business was worth ₹70 crore at its current stage.
• The founders also highlighted the different flavors of the chips they offer, including popular flavors such as cheese, barbecue, and peri-peri.
• According to Ashneer Grover, the valuation seems exaggerated for a company at that point.

Pitch Details

Ask: ₹70 lakhs for 1% equity (₹70 crore valuation).

Deal: After negotiations, Anish and Utsav secured a deal for ₹70 lakhs for 2.75% equity.

Investor: The investment came from Ashneer Grover.

Conclusion

With their distinctive offering, which appealed to the health-conscious snack market, the founders showed the potential for expansion. The product quality and the market need for healthy food ultimately convinced the sharks, despite their reservations about the company’s valuation. The transaction demonstrated the sharks’ readiness to put money into the brand’s potential, even if it required modifying the valuation to better represent the state of the market.

In the quickly expanding health food industry, the TagZ Foods proposal stood out as an illustration of a product-based company with significant potential. With the support of some of the panel’s most powerful investors, the founders were able to obtain an investment that would enable them to grow the company even more.