With a clear mantra of “beauty for a better world”, Mintree, a premium skincare startup by Kanikka Dewaniii, recently got a chance to present itself before the jury at the famous television show Shark Tank India Season 3. Let’s find out what unfolded for them as they sought an investment to fuel their expansion.
Mintree, a skincare startup in India, focuses on high-end, cruelty-free, and vegan skincare products for salons and spas. Currently available in over 3000 outlets in the country, they seek to expand their supply globally. With a strong distribution network, Mintree has reached 75% of India’s most populous cities. Moving forward, it aims to launch its direct-to-consumer line of skincare and beauty products. Their goal is to give every fifth customer in the world access to. premium skincare and cosmetics.
The Shart Tank India Pitch by Mintree
Founder Kanikka Dewanii presented the brand before the jury, valuing the business at ₹90 crores, and seeking an investment worth ₹90 lakhs in exchange for 1% of the equity in her company.
She also shone a light on the fact that the brand products are vegan, sulfate-free, cruelty-free and paraben-free. Furthermore, the brand has stepped up towards sustainability with its bio-degradable packaging which takes merely ninety days to break down.
Mintree Financials
Starting operations in 2019, Mintree has made a name for itself in the beauty industry, with clients like Enrich Salon onboard. The brand concluded its first year with a revenue of ₹1 crore and a net profit worth ₹2 lakh. Moving further, in FY 2019-20, their total sales tallied to ₹3 crores and net profit was at ₹28 lakhs. Last financial year, FY 2022-23. They were at ₹9 crores with ₹1 crore in net profit. Looking forward, the brand projects to close FY23-24 at ₹17.5 crores with a 12% net profit.
Negotiations and Fundings
Post the pitch, BoAt founder, Aman Gupta backed out from funding as he couldn’t justify investing ₹90 lakhs with a ₹9 crore valuation for the brand at present. Anupam Mittal, CEO of Shaadi.com and Vineeta Singh, founder of Sugar Cosmetics extended the same offer. The offer included ₹90 lakhs for 3% equity along with 2% royalty until they get 1.5X investment back.
Founder of Lenskart, Peyush Bansal and Co-founder of Inshorts, Azhar Iqubal joined hands to extend an offer. They offered the business ₹90 lakhs for 3% but 1% royalty until they make 1.5X of their investment back. Post this, Vineeta and Anupam also came together to extend the same deal.
Kanikka refusing all royalty deals, countered the sharks with another offer. She demanded ₹90 lakhs for 1.5% of her company. Ultimately as Peyush and Azhar matched the ask, Kanikka accepted the say for a ₹60 crore valuation.
| To sum it all up Business: Mintree Founders: Kanikka Dewanii Segment: Skincare products Ask: ₹90 lakhs for 1% equity Valuation: ₹ 90 crores Funding Agreed Upon: ₹90 lakhs for 1.5% equity (for a ₹60 crore valuation) Sharks: Azhar Iqubal & Peyush Bansal Episode: Shark Tank, Season 3 Episode 4 |