This article will tell you about the story of Arrcoat, Sony Liv Shark Tank India, Shark Tank India Arrcoat, Arrcoat Surface Textures, Shark Tank India Judges, Shark Tank India latest episode, shark tank India judges profile, shark tank India trp, shark tank india host, shark tank india sharks, shark tank india time and shark tank India episode 12. Shark Tank India will give you the most brighter side of India’s upcoming growth of Economy and Startup World
This pitch of shark tank India will be presented by Arrcoat Surface Textures.
In this story of Shark Tank India, the Contestants introduce themselves as
Mohammad Ekbal, Saransh Anad and Kranti Anand.. You can have a glimpse towards TOC to get a better view of Pitch
Introduction to the startup
Three of the founders started their pitch by describing the Houses in India are regarded as the representation of a personality himself. The houses themselves become strong if their base is strong and has good foundation walls. You might be surprised to know along with the paint Voc is released. VOC is Volatile organic compounds that are toxic chemicals responsible for spreading cancers in our body. The same depletes the ozone layer too.
If you are also worried then be calm because ARRCOAT is here with you. They have brought marble-like Taj Mahal which will last for ages.
ARR Coat Surface is an end-to-end wall solution company. They provide services in making walls of bricks till their final finishing. They are presenting you 1000 years old ancient heritage of India with modern architecture.
Read this- Gopals 56 – Will they bag 300CRORES from Shark Tank India
Who are the founders and owners of Arrcoat | Shark Tank India
Kranti Anand: Founder and CEO
Mohammad Ekbal: Co-founder of AAR Group
Saransh: Employee and son of Kranti.
What is the pitch of Arrcoat?
ARRcoat’s ask is Rs 50 Lakhs for 5 percent equity. The company is valued at Rs 10 Crores. Now Saransh is asking Sharks who is ready to make a revolution in India with their walls and provide them a sustainable future.
What is the specialty of Arrcoat? | Shark Tank India
If you want to give your house a premium look like a taj mahal which can last for ages then marbles that come from Arrcoat are packed with these benefits.
- This is water-resistant
- It is Washable.
- It comes with Zero VOC.
- This has anti-crack properties.
- It keeps your room cool because it is made of clay.
How did this startup start?
Peyush Bansal ( Founder and Ceo of Lenskart) starts the conversation by asking how does Arrcoat come up with this idea and how are you related to each other?
Well, Ekbal starts the answer as He is the one who manufactures the product. He entered this industry as a helper. While doing that job he became a craftsman (applicator) in 2004. Then he went to Dubai where he found them making varying textures that were unique.
He was shocked to see that as We in India didn’t have those textures. He got more interested in this thing. There he worked for a very long time which was about nine long years.
What he came across repeatedly was that they were using chemicals. Due to those chemicals he used to get rashes, Hands were itching and sometimes his eyes would burn. He realized that the paint was the reason for all of this.
He decided to make products that no one was making in our country and the problems he was facing should not be faced by anyone else in the country. Then He came back to India in 2016 with that worn in his heart.
He searched all across India then he found the raw material in India. To make this possible he had to sell the jewelry of his wife and children. He bought raw materials with that money and he was determined to make the product then he made the solution and tested it on his own wall. You will not believe that he got 100% success on his very first attempt.
He was happy but he also knew he had to solve one more problem to sell this product as There was no texture market in India. He is not an educated man. People ask him whether the product is lab tested or it has an attractive packing. His answers would always be a no. People would ask him whether he is making the product in a factory? Then he had to reply that he is running the whole process from his home.No one was believing that he had developed such a product. He himself had nothing to prove his own claims.
6 to 7 months went like a week and he got broken. Then he met Kranti and gave him the details over a phone call. He asked him if he want to refuse to do it over call only. Then Kranti invited him to meet and took to the product along with the founders and came straightway to Shark Tank India. Now they are standing in front of Sharks.
Eqbal showed a tile piece to the shark which he has done on the same day and It was having no smell. He mixed it himself. Kranti also said that “When we started working on these things then ARR Coat emerged.”
You won’t believe that the first project they have done was at a major celeb’s house – Gauri Khan. She herself is a quite well-known person in the interior industry. Kranti is her vendor now.
Sharks were impressed after listening to this story and they also appreciated the hard work of Mohammad Ekbal.
Sharks vs Arrcoat | QnA | Shark Tank India
How did Arrcoat reach Gauri Khan?
Kranti got some references from her as He has been in the interior business in India for the last 6 years. Before that, I was in the middle east. Today Concept Creation is an established contractor in the Interior designing market.
What does Saransh Do in the company?
He replied to this answer in a very sarcastic way. He said ” I’m Kranti’s father and he is my son”
What is the Equity split of ARRCOAT?
Kranti is the owner, Ekbal has a stake of 30% in profits. Kranti holds 100% shares of the company. Saransh has nothing in the stakes.
Sharks were hesitating on this point as the whole idea, concept, thoughts, and innovation were all made by Ekbal and he is having no equity.
Why Eqbal has no equity?
Kranti “What we do, We do together in the company.
Aman Gupta who is the Co-founder of Boat said in contrast to Kranti’s answer “No, you are not working together if you were a good owner you’d give Ekbal shares instead of just profit shares. He is the inventor and you took the advantage of his situation you did not give him equity. You should have given him equity”.
Kranti “That’s not true, Ekbal is like my younger brother and as we grow Ekbal’s share will also grow. Moreover he gets a salary of 40,000Rs and stake is separate. ” and Ekbal also agreed to this and said ” He has given me a lot- But not equity”
Sharks were not very much happy of giving equal only profit but not stake in the company. They said that this setup will bring you troubles in the future.
Now sharks kept this thing aside and moved towards the Business side and said that “If any one of the sharks invests in your company you have to fix this equity immediately in the paperwork too”.
What is the sale of your Business?
Last year the sale clocked to 77 Lakhs and this year they plan to 1.5 Crores.
What is the Profit in your Business?
Last year profit was 10% which comes to 8 Lakhs and this year profit will go to 20% which will be 30Lakhs. This year 10 Lakhs of profit will go to Ekbal.
Sharks asked them about their Business Plan?
In the coming months, when you will install Arrcoat’s mobile app so you will scan your walls and google their textures on them.
Which of the Sharks Stayed in and which left?
Ashneer Grover ( Founder and Md of BharatPe) was not happy with their plan of execution as Arrcoat’s were planning to make themselves a Direct to consumer brand which does not work in the Paint trade.
The consumer asks the contractor for the top brand and if the contractor presents the other options the consumer refuses. Your numbers are low because you are not providing any additional value as there is no mass scale. With this message, he left the idea to invest in their business
Namita Thapar (Director of Encure Pharmaceuticals) also made her decision and said that She cannot help a lot of Arrcoat in their business. For that reason, she exited herself.
Aman Gupta (Co-Founder Boat) feels that this is not fit for him to invest and for that reason, he is out.
Peyush Bansal (Founder Lenskart) decided to not invest and said this. “I have decided, You are running two businesses one of interior and paint. These two businesses running simultaneously can never make a big explosion. You will have to drop interior business but for now, I can become your customer as Lenskart wants to do everything environmentally friendly.
So Four sharks are out but do not be disheartened as the fifth is here to revive them.
Offer from Shark
Anupam (Shark) offered them an offer of five million -50 Lakhs on these conditions
- It should be clean and organic as Arrcoat claims as it’ll be tested.
- No other such market should exist today.
- You need to give equity to the co-founder.
- Kranti will only manage the interior business and let his son and ekbal manage Arrcoat.
- Appointment of New Co-founder for marketing and distribution
Offer in Brief – Rs 30 Lakhs for 10% Equity valuing Arrcoat at 3 Crores whereas will give them a loan of Rs 20 Lakhs.
Counteroffer of Team Arrcoat
Now the team of Arrcoat decided to talk in person. They came up with a counteroffer of 50 Lakh for ten percent equity and Kranti will sell his company to someone else who finds it trustworthy and 30% equity to ekbal.
Arrcoat will appoint a new co-founder and will decide his equity whereas Saransh of 23 Years looks at himself as an employee in the company.
Where does the deal meet with both Shark and Founder?
Anupam said that his offer is non-negotiable and they are left with only one offer which he made earlier but he can increase the amount to 50Lakhs as an investment only in exchange for 15% equity.
With respect to all the conditions, Arrcoat’s Team accepted the deal and took 50,00,000 Rs in their bag. They were also given a Business Skill Development course from Upgrad which is the sponsor of this program.
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