If you happened to overlook episodes of Shark Tank India Season 2. Here is a recap of what you missed on TeaFit’s appearance on Shark Tank.
The founder brought her two young kids along for the business pitch. She told the judges that they have been a part of her entrepreneurial journey. Jyoti Bharadwaj with her beverage company impressed all of the Shark Tank India S2 panel. TeaFit produces FSSAI-certified zero-calorie healthy beverages brewed with natural herbs and ingredients, without sugar or sweeteners, since its first commercial batch was introduced in March 2021. She was praised for recognizing a niche market at a high price range.
The highlight moment was when the kids began the pitch by asking the sharks if they enjoy having Iced Tea which is ‘unhealthy’ but with their brand, it’s ‘healthy’. How? Ask Mumma!
Valuation raised from 2 Cr to 6.25 Cr
TeaFit has raised INR 50 lakhs from Shark Tank India S2 for equity of 8%. Initially, Jyoti asked for INR 50 lakhs for the 3% equity.
- Vineeta Singh and Anupam Mittal teamed up for original proposal of Rs 50 lakhs for 25 % equity, which valued the company at ₹2 crores.
- Peyush Bansal’s offer of Rs 50 lakhs for 20 % equity, raised its value to ₹2.5 crores.
- Namita notices the sharks’ eager response, she accepts their offers and backs out.
- Aman Gupta, who likes sweet drinks, was charmed by the teas he tried on the show and made a bid of Rs. 50 lakhs for 10% of the shares, doubling the valuation to ₹5 crores.
- The sharks make counteroffers and match their offer right away.
Jyoti tries her hand at more haggling to convince all four sharks to join her counteroffer. Aman, Peyush, Vineeta, and Anupam joined in for the new offer of Rs. 50 lakhs for 8% stock, which Anupam first opposed, but they all eventually agree to it and sealed the final agreement. Putting a ₹6.25 crore value on the start-up.
About Jyoti Bharadwaj – The Founder
She graduated from the Indian School of Business in 2013 with a Master of Business Administration (MBA, ISB) in Finance and Marketing. Patna is her hometown and currently resides in Mumbai. Her business made the Top 100 D2C and in July 2021 the company was listed among the Top 30 Startups.
Stand-out Features of TeaFit
Tea Fit products range from 0 – 17% in calories and 0 – 4% in sugar content. The health-conscious individual can confidently consume this award-winning, unsweetened Natural Ice Tea, which is blended from 15 herbs. It doesn’t contain any concentrates or premixes, which are unsafe for your health.
Liquorice, barley, and cinnamon (also add a hint of sweetness) are the source of sweetness. TeaFit is safe for diabetic people and attempting to cut back on sugar.
This company wants to appeal to Indian consumers. Individuals have developed lifelong sugar addictions due to the prevalence of artificially sweetened beverages, making India the top diabetic country in the world.
With a healthy and honest approach, TeaFit introduces Lean Green Tea, which improves metabolism, Toasty Barley Tea, which promotes healthy hair and skin, and Lemon Ice Tea, which energizes the body and refreshes the mind.
Products by TeaFit
Jyoti took cues from Japan and believes that in order to build a healthy society, we must provide 100 healthier options for every 10 unhealthy ones.
The goal of Tea Fit is to offer a trustworthy ayurvedic nutritional beverage. TeaFit offers drinks brewed with hand-toasted barley, green tea, black tea, and instant mixes.
- TeaFit Glow – Tangy Toasty Barley Tea
- TeaFit Bounce – Lemon Black Assam Tea
- TeaFit Lean – Peach Ginger Green Tea
- TeaFit Explore Pack All in one
- Ginger Tea Premix – Unsweetened
- Cardamom Tea Premix – Unsweetened
- Lemongrass Tea Premix – Unsweetened
- Indian Spiced Tea Premix – Unsweetened
- Instant Tea Premix Trial Pack – Unsweetened
The product is available to purchase on their website and various sites including Amazon, Flipkart, Cred, Spencers, Nature’s basket, and Wellness Forever stores.
She amazed the sharks with her quick responses and grasp of unit economics
Another noteworthy moment in the pitch came when she discussed product pricing and how each bottle’s MRP is 120.
COGS = Cost of Goods Sold
When questioned why her bottle of tea costs Rs. 30 to make rather than Rs. 10 when she used only Rs. 5 worth of Ayurvedic herbs, she immediately deconstructed the entire data down to the price of the cap at 50 paise, the bottle Rs.5, and the sleeve Rs.2, leaving everyone in wonder. Sharks praised her for her confidence, clarity, and business savvy.
Exponential Sales Velocity
TeaFit generated a profit of ₹78,000 in FY22 from sales of ₹15.5 lakhs with no advertising expenditure. Based on its sales in July (2.5 L), August (2.1 L), and September (3.5 L), the start-up projects that it would close FY23 with revenues of between ₹45 – 55 lakhs.
Through online and offline platforms, TeaFit has served over 20,000 consumers. 35% of its sales are made through online channels, while the rest 65% are generated via offline channels.
She also mentioned that her mother-in-law, Dr. Urmila Pandey, a Ph.D. holder, and former professor, was the company’s first investor. She wrote the first cheque for Rs. 10 lakhs from her savings for a 0.5% investment in the business.
What’s next for TeaFit?
The product to be introduced in the near future is already developed- unsweetened pre-mix sachets with the same formula combinations. Specifically, for the winter. To make a beautiful aromatic tea, simply combine it with boiling water. The pack of 10 is expected to cost between Rs. 350 and 450.
She added that although these beverages now cost Rs.120, TeaFit can make other variations like plain vanilla iced tea, which can be marketed for Rs. 40.
The company has already accelerated their product launches and distribution plans following Shark Tank. TeaFit’s grab-and-go teas come with more than simple flavors, making it possible to make the ultimate healthy ice tea this coming summer. Check out their website and Instagram to discover more about how they overcome challenges, how technology blends with tradition in the brewing of tea, major milestones, and more.
Shark Tank S2: Sugar loving shark buys into no-calorie iced teas biz. (2023). Business Insider. [online] Available at: https://www.businessinsider.in/business/news/sugar-loving-shark-buys-into-no-calorie-iced-teas-biz/articleshow/96879298.cms#:~:text=Bharadwaj%20walked%20away%20with%20a%20collective%20investment%20of