Hoovu Fresh Raises INR 1 Crore on Shark Tank India Season 2
Hoovu Fresh was successful in raising a funding of INR 1 Crore on Episode 1 of Shark Tank India Season 2. The brand came to the tank seeked an investment of INR 80 lakh in exchange for a 1% stake in the company and accepted an offer of 1 crore from Aman Gupta & Peyush Bansal for 2% equity.
About Hovvu Fresh
Hoovu Fresh aims to revolutionize the traditional flower industry in India by increasing the shelf life of flowers from a few days to fifteen days. Founded by Yeshoda and Rhea Karuturi, Hoovu Fresh has a presence in eight cities and has fulfilled over two million orders.
The company is associated with 300 temples and 500 farmers, and aims to make Hoovu a part of all prayers and give customers peace of mind. T
The company has a unique in-house technique and machinery that allows them to extend the shelf life of flowers, and they offer their flowers at a competitive price while also reducing wastage in the industry from 40% to 2-3%.
In addition to their unique technique for extending the shelf life of flowers, Hoovu Fresh has also worked to make their business more sustainable. They use biodegradable packaging, and have implemented a "no plastic" policy. The company has also developed a mobile app that allows customers to easily order flowers and track their delivery.
Hoovu Fresh is confident in the potential for growth in the traditional flower industry in India, and believes that their innovative approach will set them apart from competitors.
About the Founders
Tthe founders of Hoovu Fresh are Yeshoda Karuturi and Rhea. Yeshoda is the CEO of the company and is responsible for overseeing day-to-day operations and finance, while Rhea is the CTO and is responsible for marketing and tech.
The founders both studied in the United States, with Yeshoda pursuing a Masters in Accounting and a Bachelors in Business Administration at Washington University in St. Louis, and Rhea earning a mixed degree in Computer Science and Journalism at Stanford University.
The founders mention that they were inspired to start Hoovu Fresh after noticing the problem of freshness in the traditional flower industry in India and seeing an opportunity to improve upon it. They also mention that their family has a background in floriculture, which may have influenced their decision to enter the industry.
What are the sales of Hoovu Fresh?
According to Hoovu's pitch on Shark Tank India provided information, Hoovu Fresh had sales of INR 1.1 crore in August, INR 50 lakh in July, and INR 45 lakh in June.
The founders stated that their average sales are INR 60 to 65 lakh, and that they are projecting sales of INR 5 crore for the next fiscal year.
Hoovu Fresh's month-on-month sales
- August 2022: INR 1.1 crore
- July 2022: INR 50 lakh
- June 2022: INR 45 lakh
Funding Offers for Hovvu on Shark Tank India
The founders of Hoovu Fresh, Yeshoda Karuturi and Rhea, received multiple investment offers from the sharks.
The first offer was made by investors Namita and Vineeta, and consisted of INR 40 lakh in equity for 4% of the business and INR 40 lakh in debt at an interest rate of 12%, with a valuation of INR 10 crore based on projected sales of INR 5 crore for the next fiscal year.
The second offer by Aman Gupta & Peyush Bansal consisted of INR 1 crore for 2% of the company, with a valuation of INR 50 crore. The founders of Hoovu Fresh ultimately accepted the second offer.
Brand Trivia: Hoovu Fresh
Founded by | Yeshoda Karuturi and Rhea |
Presence in | 8 cities |
Orders fulfilled | Over 2 million |
Associated with | 300 temples and 500 farmers |
Shelf life of flowers extended from | 2-3 days to 15 days |
Wastage in industry reduced from | 40% to 2-3% |
Mobile app available for | Ordering and tracking deliveries |
Packaging is | Biodegradable and plastic-free |
Seeking investment of | INR 80 lakh |
Received offers of | INR 40 lakh in equity and INR 40 lakh in debt (valuation of INR 10 crore), and INR 1 crore (valuation of INR 50 crore) |
Accepted offer of | INR 1 crore (valuation of INR 50 crore) |
Projected sales for next fiscal year | INR 5 crore |
Average monthly sales | INR 60-65 lakh |
Learnings from Hovvu’s Pitch on Shark Tank India Season 2 Episode 1
- Highlighting the unique value proposition of the product: Hoovu Fresh was able to clearly articulate the problem that their product solves (short shelf life of traditional flowers) and the benefits of their solution (extended shelf life and reduced wastage). This can be an effective way to differentiate the brand and attract investors.
- Demonstrating market demand: Hoovu Fresh demonstrated a strong market demand for their product by citing the size of the traditional flower industry in India and their own success in fulfilling over two million orders. This can help to convince investors of the potential for growth and profitability.
- Providing a clear financial plan: Hoovu Fresh provided detailed financial information, including their projected sales for the next fiscal year and their average monthly sales, which can help investors understand the financial viability of the company.
- Being open to negotiation: While Hoovu Fresh had a specific investment amount in mind, they were open to negotiating and considering the offers made by the investors. This can help to build trust and find a mutually beneficial agreement.
- Having a clear vision and mission: Hoovu Fresh had a clear vision and mission of making their product a part of people's prayers and offering peace of mind, which can help to align the goals of the company with those of the investors.