If you’re a parent then every time your kids go outside, you’ll be worried. Until he returns from school, and the playground you’ll worry about his safety.
If only there was a way to track your kids all the time, wouldn’t that be great?
To solve this problem, Abhisek Baheti founded Watchout Wearables. This is basically a smartwatch that can track your kids 24/7. Abhisek started the company in 2022. Till now, he has served 3000+ customers.
Before diving into the main story, let’s go to a flashback in 2008. Abhisek lost 2 family members due to a short-circuit accident in the house. After the tragic incident, he wanted to make something that can help young kids & old people in situations like this. With devices like this, young & old people can call for help.
Abhisek came to Shark Tank India seeking ₹2 Crores in exchange for 5% equity in the company.
Watchout wearables make smartwatches keeping 3 very important fundamentals in mind. Safety, connectivity & curiosity.
This smartwatch has a GPS tracker. Whenever you want you can check your kid’s whereabouts.
You can call your kids; they can do the same. Both video & audio call options are available. You can insert a SIM inside the smartwatch. The watch has a 0.5 MP camera, which will be used in video calls. If your kid is disturbing you with random calls, then you can use the Forbidden Call option. If used, your kid can’t call you anymore.
The smartwatch has a built-in object detection scanner. If your kid points the watch at anything that’s unknown to him, the watch will scan the object and tell the result.
There’s a SOS button in the smartwatch which if pressed for more than 3 seconds, automatically notifications will be sent to the parents. The last location of the kid will be sent to the parents also.
If someone removes the smartwatch from their hand, then that notification will be sent to the parents also.
The straps of the smartwatch are made from breathable soft silicon. It is very comfortable to wear.
They have smartwatches for old people also. And we know that old people fall a lot. That’s why that particular smartwatch has a fall alarm. Anytime the person wearing the watch falls, automatic notifications will be sent.
Currently, they have 4 smartwatches
- Duo Kids Smartwatch
- Elegant Kids Smartwatch
- Next-Gen Kids Smartwatch
- Senior Citizen Smartwatch
One drawback of the smartwatches is the price is slightly on the higher end. Each smartwatch costs somewhere around ₹10,000. But the price can be reduced down to ₹5,000.
The total addressable market for this product is ₹100 Crores.
|2021 – 2022||₹1.1 Crore|
|2022 – 2023 (Till Date)||₹1.4 Crore|
Aman Gupta was out. He thought the price needed to be somewhere around ₹5,000. But at this point, he couldn’t offer anything.
Peyush Bansal was out. He thought the TAM was still undefined for this kind of product. And the valuation the founder was asking, Peyush won’t be able to match that.
Namita Thapar was out. She thought the price was too high for mass people to purchase it. She couldn’t justify the valuation the founder was asking.
Vineeta stated one key important thing. Once a parent buys this smartwatch, he won’t buy it again because his kids will get old and he won’t need the smartwatch anymore. That’s why it will be very tricky to scale and grow this business.
Anupam Mittal & Vineeta Singh made a combined offer. They offered ₹1 Crore for 10% of the company. And ₹1 Crore as debt at 15%. The valuation will be ₹10 Crores.
|Anupam Mittal & Vineeta Singh – ₹1 Crore for 10% & ₹1 Crore as debt at 15%|
Abhisek gave 2 counteroffers.
The first one was ₹1 Crore for 5%.
The second one was ₹1 Crore for 7.5%.
The debt will be there also, he didn’t bargain with the debt.
But the sharks didn’t accept anything below 10%. They thought there was too much risk in this business. That’s why they stuck to their original offer.
|Company Name||WatchOut Wearables|
|Founder Expertise||Chemical Engineer|
|Asked Amount||₹2 Crores for 5%|
|Final Deal||₹1 Crore for 10% & ₹1 Crore as debt at 15%|
|Sharks||Anupam Mittal & Vineeta Singh|
|Current Net Worth||₹10 Crores|
|Company Status||In Business|
Eventually, the founder took the offer and diluted 10% equity of the company.