What was your childhood like? Can you tell me?
Well, I grew up playing in the field all day long. I used to finish my homework early so that I could go outside and play with my friends. But nowadays, the amount of study pressure is so much, that kids can’t make time for sports.
ABC Fitness Firm organizes kids’ playtime. They have built a system in such a way that the kids can enjoy the sports and at the same time they can become competitive. They don’t function like a gym or other activity platform. They don’t ask the kids to come to them. Instead, they go to the kids themselves.
They cater to the target group of 4 to 16 age. They provide quality sports time. At the moment they have 85 coaches working under them. They teach basketball, tennis, badminton, gymnastics etc.
They groom kids in such a way, that they can play at district, state, national & international levels. They are running a profitable business. Namita Thapar is also a part of their sports league. She owns a team there.
They came to the Shark Tank India seeking ₹40 Lakhs for 2% equity of the company. Which gives the company a valuation of ₹20 Crores.
While asking for the money they brought a bunch of kids and they challenged the sharks to a basketball competition.
The team with the most successful throws will win the match. Aman scored & Vineeta scored. It was amazing as I didn’t expect any shark to successfully make a throw. None of the kids could score. And sharks won.
Anirudh is an Engineer. After completing Engineering, he was thinking about his future. What to do with life. In the afternoon, he used to play with the local kids and teach them sports.
Then one guardian encouraged him to charge some money, as he was providing value. Then he started charging. The business grew slowly and soon he realized that it was getting impossible for him to manage the business single-handedly. So he recruited other people and the business kept growing.
Roshan was also an Engineer. After completing Engineering, he also waited 1 year before doing anything. Later he joined Anirudh.
ABC has another feature called Pro Leagues. Pro Leagues is basically an inter-team competition. These matches are also telecast. Namita Thapar is also one of the team owners in ABC Fitness Firm Pro Leagues.
Among all the kids training under ABC Fitness Firm, 5 ~ 10% have already reached the national and state levels. Basketball and Tennis are currently the most popular in the Pro Leagues.
They currently have 2500 students in Pune. Each student gives ₹1000 rupees monthly fees. So, the monthly earning is ₹25 Lakhs. And that is just one city, Imagine all the cities combined and how big this number will be.
Imagine more students from each city, how massive this earning will be.
They earn between ₹1.5 to ₹2 Lakhs from Pro Leagues.
They want to acquire more and more students and want to grow the business like that.
Vineeta Singh was out because she thought growing this business would be challenging. There will be linear growth but not exponential growth. That’s why she felt she couldn’t invest in the business.
Aman Gupta was happy with the concept. But he was out because the founders hadn’t tested this outside Pune yet. He encouraged them to try this idea outside Pune and make it big.
Anupam Mittal thought to make the sports business big, they needed to work with government officials. They haven’t mentioned that intention in their pitch and that’s why he wasn’t interested in investing in the business.
In last fiscal year the revenue was ₹4.5 Crores. Among that profit is 40%.
They get ₹25 Lakhs every month. From that 45% goes to the coaches. Maintenance, tournament expenses & miscellaneous each account for 5%. The remaining 40% is the profit.
Their target for the next fiscal year is ₹6 Crores. Meaning ₹50 Lakhs per month.
Peyush Bansal was interested in the business. He offered ₹40 Lakhs for 10% of the company. Which gives the company a valuation of ₹4 Crores.
|Peyush Bansal – ₹40 Lakhs for 10%|
Namita Thapar was out because she thought the offer on the table was very good for them.
They came back with a counteroffer of ₹40 Lakhs for 6%, but Peyush Bansal didn’t budge.
They agreed and took the offer. The company valuation became ₹4 Crores. Peyush Bansal definitely got a good deal in this episode.
|Company Name||ABC Fitness Firm|
|Founders||Anirudh Anil Pole & Roshan Bhaskar|
|Asked Amount||₹40 Lakhs for 2%|
|Final Deal||₹40 Lakhs for 10%|
|Current Net Worth||₹4 Crores|
|Company Status||In Business|