SharkTank India Gears Up For Season 2, Hoovu Bags A Deal!
1 year ago Rituka MHoovu Flowers bags an investment of 1 crore for 2% equity stake from sharks, Aman and Peyush at a 50 Crore valuation of the company.
With successful and positive feedback from the audience for season 1, SharkTank India is back. The 2nd season premiered on 2 January 2023 with 6 judges gracing the judging panel. The panel consists of Aman Gupta, Amit Jain, Anupam Mittal, Namita Thapar, Peyush Bansal, and Vineeta Singh.
Across the various episodes, there will be a multitude of startups that will pitch their ideas to the sharks. In the first episode, three companies pitch their ideas to the sharks for their investment.
HooVu Flowers – Fresh flowers delivered to your home
Coming from a floriculture background, sisters Yeshoda and Riya Karuturi have been involved in this industry for generations. Having worked in their father’s rose farm initially, they realised that the floral industry is unorganized. They also found that the unorganized supply chain pattern results in high amounts of wastage. Attempting to solve this, they studied the market and began Hoovu Fresh. ‘Hoovu’ means ‘flower’ in Kannada, and they are based out of Bangalore.
The Pitch
Identifying the primary problem of the floral industry being the shelf-life of flower and its freshness, Hoovu aims to create a sustainable solution. The pooja industry amounts to 2.5 crores of the economy. However, there is over 40% wastage that occurs. Flowers are a primary part of our culture and fresh flowers are important to our religious beliefs. Hoovu Fresh intends to solve this issue.
Hoovu employs an in-house technique to extend the shelf-life of flowers upto 15 days rather than the current 2 day shelf-life. This reduces the wastage from 40% to 2%. They try to control the moisture in the flowers and hand package the flowers. Hoovu is available in 8 cities, and is tied up with 300 temples and 500 farmers.
Since its inception in 2019, they have made an average sale of 60-65 lakhs, and over 5 crores in FY22 sales. In their first month, they made 1 crore sales with 15 lakhs in profit. With a growth rate of 11.1% in the last 3 months, the projected sales for FY22-23 are 10 crores.
The founders pitched their ideas to the sharks and seek 80 lakhs investment for 1% equity stake in the company. After a scintillating discussion, Hoovu received two offers from the sharks. Hoovu has previously raised 3.5 crores at a 50 crore valuation. Aman and Peyush, valuating the company at 50 crores, offered 1 crore for 2% equity stake. Matching the valuation, Vineeta and Namita revised their original offer to Hoovu, and offered 50L for 1% equity and 30L debt @ 12% interest, valuating their company at 50 crores. Choosing Aman and Peyush’s offer, Hoovu landed a great deal!
