What Happened with Hoovu Fresh on Shark Tank India? 

Hovvu Fresh featured in Episode 1 of Shark Tank India Season 2. The brand was able to/failed to raise a funding of INR 1 Crore at a valuation of 50 crores from Shark Aman Gupta and Peyush Bansal. 

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

The discussion started from Aman who sharply asked both the sisters, Yeshoda and Rhea, their reason to start this business because there are endless opportunities and the sharks were quite confused on the scalability of this venture. 

Both the founders were from Bangalore and they took this question sportingly where they stated that their family business is in floral culture. And, they returned to India starting a traditional flower business to help people reduce the floral waste by increasing their shelf life to 15 days. 

Aman was curious when they said that they returned to India in their intro pitch and asked about their background. 

Yeshoda answers that she has completed her Masters in Business Accounting and Bachelors in Business Administration from St. Louis, Washington University. While, Rhea answers that she did her under-graduate from Stanford University in Computer Science and Journalism. 

Peyush then asks - Okay, so are you from Stanford University, hence, this business idea must be something. And Aman asks - How is your work divided between the two of you?

To which, Yeshoda answers that she is a CEO and she takes care of day to day operations and finance, while Rhea is CTO and she looks after marketing and technical aspects of their brand ‘Hoovu’. 

Namita was concerned about the scalability of the brand because people generally buy the fresh flowers from a nearby vendor. 

Rhea answers that she looks at these vendors as a channel and not a competition. They both have a vision that they can deliver ‘Hoovu’ fresh traditional flowers, they can pass it on to the customers delivering high quality flowers. 

Namita asks - What is the price difference? 

Rhea answers that they started with 10 Rupees packets of flowers to compete with the already saturated market. People wish to buy high-quality flowers and with ‘Hoovu’ quality is guaranteed + there is 2%-3%reduction in the wastage of flowers which is otherwise 40% in India. 

Anupam asks about the technology they use to keep the flowers fresh for 15 days?

Rhea answers that they do not use technology on a broad level but yes they control the moisture levels in the flowers, bacterial growth, and more. They showed a presentation where they showcased their garland machine. Also, they pointed out that they hired 60 ladies to take care of this garlanding work. 

When these flowers get wilted or blooms, there is just 1 biological process and we help stop that biological process. When the packet is sealed at our factory, the flowers are flushed with a gas and this helps stop this biological process. 

Vineeta asks - Is this process similar to a chips packet?

No, it is not a nitrogen flush which is done in chips packets. 

Anupam asks - Why don’t we work this process for fruits or vegetables?

Rhea answers that it does not work like that. For plants, transpiration or respiration are the first signs of damage. While, fruits and vegetables show such signs on a later stage. The sharks were impressed by Rhea’s explanation. 

Peyush wanted to see the products and asks for a demo. 

While smelling one of the flowers, Vineeta makes a face that resembles that she did not like the smell of the flowers. Yeshoda explains that this is not a marigold flower which is why it smells different. 

Peyush asks - Does the packaging make your flower smell differently?

Yeshoda denies. 

Vineeta asks - Is this a growing market? 

Shark Vineeta was of the opinion that youngsters don't do Puja often, to which Aman answers that he also prays and offers flowers to Gods. 

Peyush asks about the sales which is an important question. 

Yeshoda answers that she was able to make ₹1 crore sales in a month. Profit - ₹15 Lakhs in a month. All the sharks were impressed by their sales and Rhea exclaims that we are under-performing. The market is really big for this business. 

Anupam asks - from which channel do you get most of your sales?

Yeshoda answers that she sells to quick commerce platforms like - BigBasket, BlinkIt and Zepto. We also supply to temples who decorate their entire temples with such traditional flowers. Also, there is no competition right now who is doing such traditional flower business. 

Namita asks - This is not difficult to replicate and she does not see a potential in this business?

Rhea begs to differ and says strongly that she does not find this business easy. We work with 500 farmers and the flower of every variety fluctuating price (hour per hour and market to market) becomes an issue without having a shortage of flowers in seasonal flowers is itself a big moat.

People who start a business, stop here. Vineeta and Namita talk separately and make an offer. 

Peyush asks - What are the things that you will never do in your business? 

Rhea answers that she does not believe in 'fail fast' philosophy and doesn't wish to break the trust factor of the brand’s customers. 

Anupam asks about the month on month growth?

Yeshoda answers - In August, the sales was ₹1 Crore. In July, it was ₹50 Lakhs and in June, the sales were ₹45 Lakhs. 

Anupam says that because of the festive seasons - there might be a drop when there are festivals round the corner - maybe after November? 

Yeshoda says that her average sales is ₹60-₹65 Lakhs. The projection of this year is - ₹10 Crores. FY’ 22 projection is ₹5 Crores. The brand Hovu is already funded by Sauce. VC - ₹3.5 Crores, Valuation - ₹50 Crores 

Anupam advises Yeshoda and Rhea to improve their technology as he was doubtful of the brand’s future. 

After the discussion, the brand recieved multiple offers from the Sharks: 

• Offer 1: Namita and Vineeta: ₹40 Lakhs at 4% equity & ₹40 Lakhs debt at 12% interest, Valuation - ₹10 Crores
• Offer 2: Peyush and Aman: ₹1 Crore for 2% equity, Valuation - ₹50 Crores 
• Offer 3: Revised Offer by Namita and Vineeta: ₹50 Lakhs for 1% equity & ₹30 Lakhs debt @ 12% interest, Valuation - ₹50 Crores 

Hovvu's founders accepted Peyush & Aman's offer and raised a total of INR 1 crore for 2% equity. 

Want to know more about Hoovu Fresh? 

• Read Everything You Want to Know about Hovvu Fresh Now
• Check out Our Episode Summary for Episode 1 of Shark Tank India Season 2