Dobiee ₹72 Lakhs for 6.5% Equity Win on Shark Tank India

Dobiee is a candy brand that specializes in a variety of sweets for the public. The company’s creators have revealed that the market for their goods exceeds ₹20,000 Crore. They also offer dual-flavored candies in various sizes. Their distinctive product range includes Toy Candies, which feature an assortment of candies along with toys. Since their establishment in 2021, they have sold more than 9 Lakh packets. Dobiee is accessible in 9 states through over 50,000 retail stores and is set to expand to Amazon soon. They were looking for an investment of ₹72 Lakh for a 2% share in the company.

Click here to visit their official website: Dobbie

Dobbie has generated revenue of more than ₹4 Crores in the past 15 months. They benefit from having their own manufacturing facility. In the previous month, their sales reached ₹32 Lakhs. This was achieved by utilizing agents to concentrate on specific regions and handle product distribution through them. For a product with a ₹100 MRP, the production cost is ₹22, and it is sold to distributors at ₹45, resulting in a Gross Profit of ₹23 for Dobbie. As a result, their net profit margin stands at approximately 10%.

Related: Girgit’s ₹ 20 Lakhs for 20% Equity Win On Shark Tank India

Arjun and Mukesh Dharamshi, a father-son duo, established Dobbie in Bombay. Mukesh has previous experience working in candy shops and eventually launched his own venture producing white-label candies. Arjun, on the other hand, is a mechanical engineer who pursued studies in France.

Peyush exits the deal because of challenges within their sector, although he had a positive opinion of the entrepreneurs. Aman also decides to step away for similar reasons. Namita follows the lead of the other sharks and opts out of the opportunity, citing moral disagreements with the candy market.

Amit expresses his interest in the business and proposes an offer of ₹40 lakh for a 5% stake in the company, with the remaining amount to be provided as a debt with 11% interest. Anupam makes a second offer, motivated by his belief in the potential of the company’s Toy Candies for long-term growth. Anupam suggests investing ₹72 lakh in exchange for an 11% ownership share. He emphasizes that this offer will be his final one.

The founders counter Anupam’s offer by proposing ₹72 lakhs for a 5% stake in the company. Anupam then suggests a compromise at 9%, while Amit offers at 7%. Eventually, the founders inquire if both sharks can collaborate on the deal, leading the Sharks to adjust their offer to ₹72 lakhs for a 10% share of the company.

The founders take a break outside the tank to discuss their position before returning to make a new offer to Amit: ₹72 Lakhs for a 6% stake in the company. After hearing this, Anupam decides to step back from the negotiations. Aman recommends that Amit finalize the deal at 6.5%, which Amit agrees to, offering the entrepreneurs ₹72 Lakhs for a 6.5% share of the company. The founders accept this proposal without hesitation, resulting in the company being valuation of ₹11.8 Crores.

After the show, their business grew a lot. Before the show, they were making around ₹30 Lakh in sales each month, but after the show, their sales went up to over ₹1 Crore per month in just 2 months. This is a 7X growth! Their candies are really popular, and they can’t keep up with the demand – they can only fulfill about 30% of it with their current production capacity.

The company Dobiee is still doing well as of December 2023, and they shared some updates. Their profit increased from 5% to 12% after being on Shark Tank. They used to be in 50,000 stores, and now they’re in over 90,000 stores. Their sales have grown 2.5 times, and now they make about ₹60 Lakhs per month. This means that being on Shark Tank helped them get more customers and grow their business.