What Happened with Dorje Teas on Shark Tank India?

Dorje Teas appeared on Episode 1 of Shark Tank India Season 2. The brand was able to raise INR 30L for 15% from multiple sharks on Shark Tank India. 

Here’s everything that happened during their pitch on Shark Tank India

The founder, Sparsh delivered a beautiful story about the history of Darjeeling Teas and the significance of Darjeeling as a location. He highlighted the plight of Darjeeling tea market and the crop growers, beautifully. Their magnificent oration and storytelling skills impressed all the sharks.

Sparsh, the co-founder, says he aims to bring back the losing fame of tea gardens due to urbanisation. He wishes to maintain the image of Darjeeling as - the tea state of India and explained about the brand, further...

Set atop Selim Hills, the tea leaves are plucked, packed and dispatched. Through a subscription system, Dorje Teas provides people with the ever changing taste of tea due to changes in the weather from tea gardens to people’s homes. 

Sparsh calls Anupam to taste their different types of teas where he explains that Darjeeling gets its first rain in the spring season. It is when the tea bushes start blooming. He names it- The First Flush. Similarly, there are other three flushes - The Second Flush, Third Flush and the Final Flush.  

Sparsh gives a fantastic demo of his teas where he keeps on explaining different types of teas in different kinds of weather. Anupam and other sharks were really impressed with Ishaan’s way of explaining everything. Finally, all the sharks tasted the teas offered by Sparsh. 

Namita asks - How will people distinguish which tea one should milk and which tea they should drink with hot water? She was quite perplexed that half of the Indians will not be able to connect. 

Sparsh agrees with Namita and says that they are not here to dictate people on how they should drink their tea. But there are a number of people who love Darjeeling Tea. He further explains that in India, the total tea market is of ₹1.2 Lakh Crores and Darjeeling Tea has just ₹1500 Crores market in it. 

Peyush asks - Where do you see your business? 

Sparsh says that he needs lakhs of subscribers and their annual fees for the subscription is - ₹2100/- per year. 

Vineeta advises the founders that do not push the audience to subscribe but push them to buy your products. She says that surely there will be customers who will come to you because the product is exemplary. 

Anupam further asks - Where do you see your brand in the next 5 years? 

In the next 5 years, Ishaan says that he thinks we’ll reach ₹100 Crores. 

Anupam asks what is their current sales? 

He sharply answers - Last month's sales were ₹11 Lakhs. 

Anupam sharply questions - What is your strategy other than the 2 Lakh subscribers you wish to bring onboard? 

Sparsh tries to answer but Anupam cuts them in between and further conveys that they have a goal in mind but there is no other strategy. 

To which Sparsh agrees. 

Aman asks the gross margin and the net margin they earn in their business? 

To which Ishaan answers that there is a 75% gross margin and currently, they are in loss. In last month sales of ₹11 Lakhs, there was a cash burn of ₹2 Lakhs. 

They have already raised- ₹8.5 Crores. In this, ₹6.5 Crores were raised from brand capital and the rest of the Crores were raised from a few angel investors and HNI at the valuation of ₹32 Crores. 

While, it was clear that Ishaan is the product guy and Sparsh is the business (finance) guy, The CEO of the company is Ishaan. 

The equity split is 50-50 between the two. 

Anupam asks a very straight question - How will you save your business?

Sparsh continues that in the last 3 months, we have figured out the entire product line, how to target our customers, and right now we are at a place where our growth journey has started. 

Vineeta explains that there is a slight disconnect in the vision and the founders have added a subscription thing, which is not required. Yet, she is willing to come onboard and she makes an offer - 30L for 10% equity. 

Namita had an opinion that competing with the traditional drinking tea habits is difficult and she suggested to them that they should plan to give consumers an experience where they can take a stroll in your tea gardens, have a sip of tea and then buy their products. 

Aman was out because of the same that there is a disconnect in the vision. The net margin and the gross margins did not impress him. 

Namita and Aman were out for the day. Anupam, Peyush and Vineeta make an offer - 30L for 15% equity.  So, the brand received two offers, in total: 

• Offer 1: Vineeta’s offer: ₹30 Lakhs for 10% equity, Valuation - ₹3 Crores 
• Offer 2: Anupam, Peyush and Vineeta: ₹30 Lakhs for 15% equity, Valuation - ₹2 Crores 

Sparsh & Ishan accepted the combined offer by Anupam, Peyush and Vineeta, raising 30L for 15% equity for their company. 

Want to know more about Dorje Teas? 

• Read Everything You want to Know about Dorje Teas
• Check out Summary of Episode 1 of Shark Tank India Season 2