Diabetes is a very common issue in our country. Heck, not just our country, it’s a rising problem in every country in the world right now.
We don’t eat right and the things we eat aren’t healthy for our body. We eat grains a lot, and the problem with grain is, it increases the blood sugar level in our body.
The glycemic load acts as a big factor in keeping our sugar level in control. It’s basically a parameter that indicates which food will increase our blood sugar level by how much.
Suppose you ate something that’s glycemic load is 60, which is a lot. Now, the blood sugar level in your body will increase and you have to have the necessary medicine to keep the level in control.
That’s where the startup Diabexy enters the room.
Diabexy mainly produces diabetes friendly-food products and they try to maintain the glycemic load as low as possible. Suppose they are making atta, then the glycemic load of that Atta will be lower than the traditional atta you can find in the market.
Diabexy has a range of products. They have sweets, biscuits, etc. They have currently 40 employees working for the company.
In 2 years, Diabexy has served 3.5 Lakh people with their produced food.
They came to the Shark Tank India seeking ₹1.5 Crores for 1% equity in the business. It’s such a rich valuation.
Lokendra Tomar is basically a pharmacist. He has immense knowledge of medicine. At the same time, he has much knowledge of food.
So, he combined these two and made his own unique products, that will help mankind in the long run.
Lokendra doesn’t come from a rich family. In fact, when he was young, he saw much hardship in his family that made him realize that he needed to do something in his life. His father was a farmer and so he saw many difficulties growing up. Later, he wanted to do business so that he could become a wealthy man one day.
He was doing well in his career. His company gave him a book as a reward for reaching the given target in sales. The book’s name was “How to Win Friends & Influence People”.
Upon reading that book, he fell in love with reading. Later he completed almost 1000 books. He used to finish 3 books per week.
Nishu Tomar was also a business enthusiast. She learned how to make a website on her own, she learned digital marketing. Then they both launched Keto products and started selling on Amazon.
|Fiscal Year||Annual Sales|
|2016 – 2017||₹65 Lakhs|
|2017 – 2018||₹1.5 Crores|
|2018 – 2019||₹3.25 Crores|
|2019 – 2020||₹5.25 Crores|
|2020 – 2021||₹8.25 Crores|
|2021 – 2022||₹13 Crores|
They both take a salary of ₹1 Crore per year. After taking their salary, there’s another additional ₹1.5 Crore profit left for the company. So, we can say they made ₹2.5 Crores Profit last year.
They spend 33% on COGS, 33% on marketing, distribution & overheads, and 33% on Profit and tax.
They have a repeat customer rate of 70%.
They offered the sharks their products, and upon eating them they were very impressed with the taste of the food.
For the sweetness, they use Oligofructose. It doesn’t increase the sugar level of your body.
So, setting a vision for the company is very important. The founders want to make a 500 Crores turnover in the next 5 years.
Pricing is a big problem for the company. The price of the atta is 500 per kg. In India, there aren’t many people who can afford to buy atta at this price point.
Anupam Mittal didn’t give any offer. Because he thought they were doing pretty well for themselves. They don’t need any outside investors.
Peyush Bansal, Namita Thapar, Aman Gupta & Amit Jain gave a combined offer of ₹1.5 Crore for 20% of the company. They wanted to dilute only 1% and the sharks wanted 20%.
|Peyush Bansal, Namita Thapar, Aman Gupta & Amit Jain – ₹1.5 Crore for 20%|
Lokendra didn’t accept the offer. He thought the sharks were offering a lower valuation and he didn’t want to accept any valuation under ₹100 Crores. Good for him.