Herbal Tea Brand Blue Tea’s Phenomenal Growth After Shark Tank India

Blue Tea is a premium tea brand from India that specializes in fresh herbal teas, sourced directly from farms and delivered to customers within two weeks. Their selection features a variety of floral flavors, including Butterfly Pea, Chamomile, Rose, Jasmine, Hibiscus, and Lavender. What sets them apart is that their teas are not bitter, packed with antioxidants, calming, and caffeine-free. The founders started the brand in 2018, and it has since expanded to serve customers not only in India but also in 12 other countries via their website and popular marketplaces. In India, they offer a wide range of 50 flavors, while in the United States, there are 35 flavors available.

Click here to visit their official website: Blue Tea

Blue Tea currently sells about 1.5 Crores worth of tea each month. However, the company has noted that their growth has been stagnant for the past few months. They maintain a 15% net profit margin, which they reinvest into marketing efforts. Notably, 80% of their sales come from international markets, with the US contributing around 60% of their total sales. In India, they account for the remaining 20%.

Looking at their financial performance, they earned ₹50 Lakh in FY 19-20, increased that to ₹2 Crores in FY 20-21, and finished last year with a total revenue of ₹10 Crores. For the fiscal year 22-23, they are aiming to close at ₹30 Crores. Additionally, they have gathered about 8,500 reviews on Amazon, boasting an impressive average rating of 4.3 stars.

Related: HoneyVeda ₹ 50 Lakhs for 20% Equity and ₹ 25 Lakhs Debt at 12% Interest Win on Shark Tank India

Anupam is unhappy because the entrepreneurs are not providing clear answers, so he decides to back out of the investment. Amit shares the same concern about trust and also chooses to exit the deal. Namtia thinks the business is promising, but she doesn’t personally connect with the product, which leads her to withdraw her interest. Vineeta believes the founders lack transparency, so she too decides to step away from the opportunity.

In contrast, Aman finds the company interesting and feels a bond with the co-founders. He makes an offer of ₹15 lakh (1.5 million rupees) for a 5% stake in the business, not realizing that this values the entire company at ₹3 crores, while it is actually projected to be worth ₹30 crores. Respectfully, the founders counter his offer, asking for ₹50 lakh for a 2% stake. Aman declines this offer and suggests instead a 3% stake for the same ₹15 lakh, which the company agrees to.

Our investigation into the company showed that their deal with Aman Gupta was finalized after the episode was broadcast. Nitesh Singh, the founder of Blue Tea, mentioned in a podcast with Surya Tiwari that following the airing of the show, they experienced a massive surge in sales from the Indian market, which had only accounted for 20% of their total sales before the show. Remarkably, their sales soared sevenfold within just 24 hours after the episode aired. He noted that participating in Shark Tank played a crucial role in establishing trust in the Blue Tea brand. As of July 2024, the brand is still successfully operating and flourishing!