Swadeshi Blessings ₹25 Lakhs for 5% Equity and ₹ 25 Lakhs Debt @ 12% Interest Win on Shark Tank India

Swadeshi Blessings, a company hailing from Udaipur, appeared on Shark Tank India Season 2. They specialize in handcrafted earthenware for cooking and home decor, made by local artisans in Kankroli, Udaipur. In their pitch, they sought Rs. 50 lakh in exchange for a 5% stake in the company. The Sharks were impressed by their commitment to offering environmentally friendly, all-natural alternatives for cooking. Swadeshi Blessings has successfully delivered over 25,000 products to customers in India and 25 other countries. Notably, their products are free from glazing.

Click here to visit their official website: Swadeshi Blessings

The founders revealed that the breakage rate for their products is just around 3% per month. Since starting in 2020, the company made Rs. 30 lakh in their first fiscal year (FY20-21). Their growth skyrocketed by 500% in the following year (FY21-22), reaching Rs. 1.8 crores in revenue. Currently, in the fiscal year FY22-23, they have already hit Rs. 1.2 crores with a projected target of Rs. 3.6 crores. The average price of their products in India is Rs. 900, while for exports, it is around Rs. 7,700. Their gross margin stands at 60%, resulting in a net margin of approximately 15%.

In the last month, Swadeshi Blessings achieved sales of Rs. 28 lakh, and after deducting all expenses, they garnered a net profit of Rs. 4 lakh. Most of their revenue, about 65%, comes from exports, with the remaining 35% from sales within India.

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Madhavi Paliwal, Dattatreya Vyas, and Sunita Vyas established Swadeshi Blessings in Kankroli, Udaipur, Rajasthan. Madhavi, who holds an MBA from Amity University, is responsible for product sourcing and business development within the company. Dattatreya, an electrical engineer, oversees the marketing and business operations of Swadeshi Blessings.

Peyush shared his feedback suggesting that the company should focus on improving the branding of their products. He also mentioned that there were other Sharks on the panel who could provide better assistance to the founders, which is why he decided to step out of the deal. Anupam, while appreciating the founders and the positive impact they were making, expressed concerns about the market potential in India and thus opted out of the deal. Aman, on the other hand, declined the offer, mentioning the need for more emphasis on branding and questioning the long-term scalability of the business.

Vineeta and Namita then made their first offer of Rs. 25 lakh for a 5% stake in the company, along with an additional Rs. 25 lakh as a debt with 12% interest. Their offer came with the requirement that one of the founders, Dattatreya, would have to leave his current job and fully commit to the business. Namita even proposed a collaboration between Swadeshi Blessings and her other investment from Shark Tank, Rare Planet. In response, the founders proposed a counteroffer of 4% equity for the same investment amount, but the Sharks turned down their conditions. Eventually, the company accepted the initial offer of Rs. 25 lakh for a 5% stake in the company and the remaining amount as debt. They sealed the deal with a handshake agreement.

Based on our investigation, it appears that the deal made by the company on Shark Tank India with Namita and Vineeta did not come to fruition after the show was aired. However, despite this setback, the company is still doing well as of December 2023. They have successfully expanded their operations internationally, and exports continue to be a significant part of their overall revenue. It’s worth mentioning that they offer free shipping worldwide for their products.