If you go to the market to buy chips, you’ll find the same age-old potato chips. It was time for new players to enter the market and introduce some new flavors. Beyond Snack is such a company that will disrupt the chips industry with its unique banana flavor chips.
Kerala Banana Chips is the product of Beyond Snack. The packaging will remind you of only bananas and nothing else. The packet is yellow of course.
Manas Madhu is the founder of Beyond Snack. He’s from Kerala. One day while he was traveling, he saw a lot of bananas being wasted. He talked to the farmers, and realized, that every year a huge number of bananas go to waste. He then wanted to make banana chips and reduce this wastage.
In 1.5 years, Beyond Snack has turned 140 metric tons of bananas into chips.
He was nervous when he was pitching his idea in the Shark Tank India. But the sharks made him comfortable. He was seeking ₹50 Lakhs in exchange for 2.5% equity in his banana business. Which gives the company a valuation of ₹20 Crores.
With the money, Manas wants to capture more locations in India. Currently, he’s not focusing on branding the product. He just wants to make sure his Kerala Banana Chips are available across the country.
Beyond Snack currently has 4 types of banana chips.
- Kerala Banana Chips – Original Style (Also the winning product)
- Kerala Banana Chips – Peri Peri
- Kerala Banana Chips – Salt and Black Pepper
- Kerala Banana Chips – Sour Cream, Onion and Parsley
They sell on Amazon & Flipkart.
Manas was very much confident about his product. He knew that he could turn this into a ₹100 Crores business within 2 years.
The sharks enjoyed eating the chips. They wanted to know more about the chips. How Kerala Banana Chips is different from other existing banana chips out there.
Manas was very straightforward. He said there’s nothing unique about the banana chips he’s making. But he wants to make a brand on top of banana chips which currently don’t exist. That’s how he wanted to play the game.
He added the chips are thinner than existing banana chips in the market.
Manas has invested ₹70 Lakhs of his own money. He also raised investments from outside. He raised ₹1.4 Crore and diluted 15% of the company. The remaining 85% is still with him. And he’s getting around ₹20 Lakhs sales every month.
The sharks were quite skeptical about the pricing of the chips. The chips price is ₹60. Sharks asked Manas whether he would be able to make it ₹10 or not. Manas replied he’s currently enjoying a good gross margin that’s why he doesn’t want to reduce the price at the moment but in the future, he will definitely launch ₹10 or ₹30 chips in the market.
That brings us to the question, what is the gross margin of the product? For online sales, it’s 55%, and for retail, it’s 48%.
Last fiscal year total sales were ₹60 Lakhs. His profit was 10% of it.
Namita Thapar was out. She didn’t give any offer.
Anupam Mittal was the first one to give an offer. He wanted to give ₹50 Lakhs for 10% of the company. After hearing Anupam’s offer Peyush also wanted to partner in that deal.
Ashneer Grover & Amit Gupta also gave an offer. They gave ₹50 Lakhs for 2.5% of the company. Just like Manas asked.
|Offer 1||Offer 2|
|Anupam Mittal & Peyush Bansal – ₹50 Lakhs for 10%||Ashneer Grover & Amit Gupta – ₹50 Lakhs for 2.5%|
What exactly happened after getting a 2 shark deal from Shark Tank India? Beyond Snack has grown 3 times in scale profitability. That too within 6 months. It’s such an inspiring journey Manas is having and hopefully, we’ll see more growth from this company.
|Company Name||Beyond Snack|
|Asked Amount||₹50 Lakhs for 2.5%|
|Gross Margin||48% – 55%|
|Final Deal||₹50 Lakhs for 2.5%|
|Sharks||Ashneer Grover & Amit Gupta|
|Current Net Worth||₹20 Crores|
|Company Status||In Business|