“Reach Break Even, Get Rs 150 Crores Valuation” – Ritesh to Kreo on Shark Tank India

Shark Tank India Season 5’s Episode 31 introduced viewers to Kreo, a consumer electronics firm based in Bengaluru that is quickly establishing itself in the market for gaming and video creation equipment. The pitch highlighted how domestic IT companies are aiming for worldwide recognition in addition to showcasing India’s developing passion economy.

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Ishan Sukul, Himanshu Gupta, and Niraj Chitnis founded Kreo in 2022 with the straightforward but ambitious goal of providing gamers and creators with high-quality, reasonably priced electronics that compete with those of international rivals. The firm sells products like gaming keyboards, mice, lighting, microphones, tripods, and more mostly as a direct-to-consumer (D2C) brand.

Kreo, which has its headquarters in Bengaluru, India, has created what it refers to as the “Kreosphere,” a burgeoning community where tech enthusiasts, producers, and gamers interact, network, and help shape new products.

Official Website – Kreo

From mechanical keyboards and wireless gaming mice to creator-focused audio and lighting accessories, Kreo’s products are notable for their ability to combine beautiful design with functionality. Whether someone is producing movies, streaming content, or participating in esports, these solutions are designed to satisfy a variety of needs.

Kreo markets its products as cost-effective substitutes without sacrificing usability, in contrast to conventional consumer electronics companies that offer expensive equipment. In the quickly growing gaming sector, this strategy has helped draw a devoted following, particularly among younger consumers and first-time purchasers.

The main goal of Kreo is to enable users to “unleash their passion,” whether it be playing video games, streaming media, making digital art, or establishing online communities. The community, which the firm proudly refers to as the #Kreosphere, is where users, known as Kreons, interact, exchange ideas, and develop as a group. Kreo stands out from many conventional IT companies that just concentrate on product specifications thanks to its emphasis on community-first branding.

By providing easily accessible, well-designed equipment, the founders have made it clear that their objective is not merely to manufacture accessories but also to enable young Indians to engage with the global tech and gaming culture with confidence.

A vast array of gear and accessories designed for both gamers and producers are part of Kreo’s product lineup:

• Gaming Mice: Precision sensors, ergonomic designs with customizable RGB lighting.
• Mechanical Keyboards: RGB lighting, tactile switches, and performance features.
• Audio Accessories: Headsets and microphones for content creation and immersive gaming.
• Lighting & Tripods: Creator-focused lighting solutions and mounts to improve production quality.
• Monitors & Screens: Kreo has also ventured into made-in-India gaming monitors, marking its deeper push into hardware categories that are typically dominated by international brands.

Kreo sells directly to customers (D2C) online via its official website and well-known e-commerce platforms. This gives them a significant edge in the budget to mid-range market by enabling them to provide competitive prices while lowering distribution expenses.

Debt (Total Borrowed) – Rs 15.3 Crores

Outstanding Debt – Rs 5.1 Crores

Interest Rate – 16-17%

Amount Raised:

August 2022 – Rs 2.5 Crores

May 2023 – Rs 5.5 Crores

May 2024 – Rs 3 Crores

September 2024 – Rs 3 Crores

Lifetime Sales – ~Rs 70 Crores

Sales:

FY 22-23 – Rs 33 Lakhs

FY 23-24 – Rs 8 Crores

FY 24-25 – Rs 32 Crores

FY 25-26 Projected – Rs 55 Crores

A significant gap in the Indian market was highlighted at the start of the pitch. Even though there are millions of gamers and producers, premium peripherals are frequently still pricy and controlled by multinational corporations.

The combination of cost, accessibility, and aspirational customer behavior—themes that Sharks regularly assess—made this problem statement very appealing.

Kreo’s demonstration was essential to the company’s success as a consumer electronics firm. Hardware companies require tangible proof, thus the pitch must focus on product quality, design, and usage.

The founders highlighted performance, design, and affordable prices when showcasing their products. In a field where fierce rivalry is common, this contributed to building credibility.

Profitability is one of the first things that entrepreneurs in the electronics industry look at. Naturally, sharks looked into pricing sustainability, manufacturing costs, and margins.

Thin margins are infamously sensitive for consumer hardware companies. Here, having strong financial clarity is essential for boosting investor trust.

In these kinds of pitches, competition is frequently the defining tension. Sharks usually ask how up-and-coming companies intend to compete with multinational behemoths like Razer or Logitech.

Naturally, value-driven pricing, community involvement, and brand positioning with an emphasis on India are the main points of uniqueness for Kreo.

The Ask

Kreo Founders asked for Rs 2 Crores for 1% Equity at the valuation of Rs 200 Crores.

Sharks Reactions

Shark Vineeta Singh pointed out that these kind of business burn a lot of money before becoming too big and she also doubted the long term scalability of their brand, thus, she opted out.

Shark Namita Thapar showed concerns in the low margins of hardware sector and how it’s a capital intensive and isn’t lucrative, thus she backed out too.

Shark Aman Gupta called entrepreneurs, their brand, their products “pro level” but he said that the category is not growing as they would want. He didn’t offer anything.

Shark Kunal Bahl wasn’t impressed by the financials of the brand, he was concerned about the debt servicing from the sales. So he backed out as well.

Shark Ritesh on the other hand, saw potential of esports rising in India, pointing towards multiple game launches this year. He gave them an offer – Rs 1 Crores for 1% Equity + 1 Crores Debt at 9% interest for 3 years tenure at the valuation of Rs 100 Crores.

The founders gave a counter offer of Rs 1 Crores for 0.67% Equity + 1 Crores Debt at 9% interest for 3 years tenure at the valuation of Rs 150 Crores.

Ritesh put one condition on founder’s counter offer – Valuation steps up to Rs 150 Crores upon FY break-even.

The founders accepts Ritesh’s offer of Rs 1 Crores for 1% Equity + 1 Crores Debt at 9% interest for 3 years tenure at the valuation of Rs 100 Crores with the condition – Valuation steps up to Rs 150 Crores upon FY break-even.

Kreo is set to aggressively expand its “Kreosphere” community by scaling its lineup of affordable, creator-focused hardware. The brand’s immediate focus remains on disrupting markets traditionally held by international giants, specifically through the growth of its “made-in-India” gaming monitors and high-performance peripherals.

The company’s primary financial goal is to reach operational break-even, which will trigger a valuation step-up to ₹150 Crores as part of their deal with Ritesh. With a projected revenue of ₹55 Crores for FY 25-26, Kreo aims to leverage its D2C model to maintain competitive pricing while scaling its presence across the Indian passion economy.