The Yarn Bazaar Secured 1 Crore Investment For a 10% Stake on Shark Tank India

The company was founded in Mumbai, India by Pratik Gadia. The Yarn Bazaar’s mission is to bring more organization and efficiency to the unstructured textile industry. The textile business has evolved with modern technology, but key areas like marketing, advertising, purchasing, and sales still have challenges. The Yarn Bazaar website acts as a one-stop-shop for yarn buyers and sellers. One of the biggest problems in the textile industry is an irregular supply chain, which affects both revenue and costs. The Yarn Bazaar helps by allowing buyers to easily compare prices from different suppliers. The Yarn Bazaar has a user-friendly app interface. Buyers can send requests for quotes, and the company’s staff responds with pricing information. Buyers can then select what they want to purchase, the quantity, and where to have it delivered. The company works with small businesses to offer white-labeled yarns and collaborate on product development.

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Pratik Gadia is the founder and CEO of The Yarn Bazaar. He was frustrated by the opaque and outdated process of buying and selling yarn in the textile industry. The old-fashioned methods resulted in a lack of transparency and fairness, with huge losses for both sellers and buyers. To address this, Pratik founded The Yarn Bazaar in 2019, along with a team of like-minded individuals. His vision and mission is to organize the textile industry and empower small yarn buyers and suppliers.

Yarn Bazaar is a startup company that recently appeared on the TV show Shark Tank India. 1 On the show, the company’s owner was looking for an investment of 50 lakh rupees in exchange for a 2% equity stake in the company.  The four shark on the show – Anupam Mittal, Peyush Bansal, Ashneer Grover, and Aman Gupta – made a collective offer to invest 1 crore rupees  for a 10% equity stake in Yarn Bazaar. This means the four sharks wanted to buy 10% of the company for 1 crore rupees. The startup founder countered with a proposal to sell 10% equity for 1.25 crore rupees. After some negotiation, the two sides finally agreed on a deal where the four sharks would invest 1 crore rupees for a 10% stake in Yarn Bazaar.

The Yarn Bazaar has secured a total of $1.97 million in funding through three rounds. The first round took place on February 25, 2022, while the most recent round was a Seed round on June 19, 2023, raising $1.83 million. Eleven investors participated in the latest round, with Rajiv Dadlani Group and Equanimity Investments leading the way.

• The Yarn Bazaar has 7 major institutional investors, which are large organizations that invest money. These include Equanimity Investments, Culture Cap, and Rajiv Dadlani Group.
• The largest institutional investor in The Yarn Bazaar is a Ash Grove LLP.
• In addition to the 7 institutional investors, there are also 17 individual “Angel Investors” who have invested in The Yarn Bazaar.

The Yarn Bazaar is ranked first among its 53 competitors, with 4 of them being funded. In total, The Yarn Bazaar and its competitors have raised over $7.26 million in funding through 13 funding rounds with 60 investors. There are no private Unicorns in the entire competition set.

• Fabric Monde: A company that distributes handloom products. It was founded in 2016 and is located in Bengaluru, India. It has received a grant (prize money) of an undisclosed amount from 2 investors.
• The Design Cart: An online marketplace for fashion raw materials. It was founded in 2017 and is located in Delhi, India. It has raised $15,000 in 1 funding round from 1 investor.
• XSTOK: An auction-based marketplace platform for textiles. It was founded in 2015 and is located in Mumbai, India. It has raised $1.93 million across 2 funding rounds from 12 investors.

Aspiring entrepreneurs from across India come to Shark Tank India to present their innovative ideas and business models, hoping to secure the investment needed to take their startups to the next level.