Maisha is all about colorful leather bags. Esha, founder of Maisha was frustrated with the leather bags available at the market. She wanted to bring something new to the table. She also wanted to make it affordable so that mass people could purchase it without breaking the bank.
To disrupt the leather bags industry, she stepped in and founded Maisha from Ahmedabad. She’s not alone in the team. Her father Nayan Hasmukhlal Shah and husband Neel Vora also joined her in her venture.
The bag is made of eco-friendly materials like a cotton slug, jacquard, burlap & jute. So far they’ve sold 50,000+ Maisha bags. They have their own business website and are also available on Nykaa and Amazon.
Esha came to the Shark Tank seeking ₹75 lakhs. She’s willing to dilute 3% of her company. Which gives the company a valuation of ₹25 crores.
Esha handles the creative side of the business. From creating a new design to the final product, she handles everything. Esha knows the Instagram ballgame very well. If you check their Instagram handle you’ll see their engagement ratio per post is really high.
Also, did I mention? The Instagram handle is MaishaByEsha, which has around 300k+ followers at the time of writing this content.
Esha’s father handles the operation part and her husband handles the marketing side of the company. Currently, the equity split of the company is Mr. Nayan has 50% equity, Esha has 25% and Neel has 25%.
But as it’s Eshas’ brainchild don’t you think she should’ve had more equity in her company?
All the sharks were impressed by Eshas’ pitch, she has a nice personality. But they were not impressed by her bag designs. They thought the bag didn’t reflect any USP.
So, let’s get behind some numbers, shall we? The monthly marketing expense is 24% of sales. They spent around ₹10 lakhs on marketing each month. Their repeat customer is 20%.
Let’s talk about sales.
The business started in 2018.
|Fiscal Year||Annual Sales|
|2018 – 2019||₹5 Lakhs|
|2019 – 2020||₹23 Lakhs|
|2020 – 2021||₹73 Lakhs|
|2021 – 2022||₹2.92 Crores|
|2022 – 2023||₹3.5 Crores (Till That Date)|
So, if you look at the table, there’s a big jump in 2020. Can you guess the reason? Well, before 2020 they didn’t have any personal business website. They only used to sell at different exhibitions.
I think that’s a big takeaway from this episode. If you don’t have your own personal website or business website then you’re missing out on a huge market out there.
So, you see, they are making half a crore in sales every single month, not bad.
Their net profit is around 10%. So, if you take October month for example, they made around ₹4.7 lakhs in profit.
So, after having this brief discussion with the founders, it was time for the sharks to decide whether they wanted to give an offer or not.
Namita was the first one out (not the reason you’re thinking). She was out because for her the business was not scalable. She couldn’t get an exit from this business making big money. That’s why she’s out.
Aman agreed with Namita. He couldn’t find how to scale this business in the long run. He was out as well.
Vineeta was impressed with the content marketing of Maisha. However as she is partnered with another similar company, she refused to give any offer due to a conflict of interest issue.
Peyush was also impressed with the company. However, he had problems with the current equity structure of the company. He thought Esha should be the CEO and take charge of the company, rather than her father. That’s why he politely declined to give any offer.
Anupam was also out. So, that leaves only one shark, Amit Jain.
Amit Jain was really impressed with their Instagram game. But Amit wanted to mentor them and gave them an offer.
|₹10 lakhs for 1% equity & ₹65 lakhs as debt with 18% interest|
The offer was ₹10 lakhs for 1% equity. Which gives the company a valuation of ₹10 Crores. He wanted to give the remaining ₹65 lakhs as debt with 18% interest.
If you look closely you’ll realize he’s basically getting the 1% equity freely. Because with the debt clause, he will get back ₹65 lakhs + ₹11.7 lakhs = ₹76.7 lakhs. Smart guy Amit, I must say.
While they were discussing Eshas’ father pointed at his daughter and said the New CEO would respond now, that was a very wholesome moment.
This was the only offer on the table and Esha happily took the offer, didn’t even counter it.
This was a very good deal because they will have Amit Jains’ mentorship and hopefully take this business to the next level.
|Founders||Esha Shah & Neel Vora|
|Founder Expertise||Design, Marketing|
|Asked Amount||₹75 lakhs for 3% equity at ₹25 crores Valuation|
|Final Deal||₹10 lakhs for 1% equity & ₹65 lakhs as debt with 18% interest|
|Current Net Worth||₹10 Crores|
|Company Status||In Business|