Recode Studios appeared on Episode 1 of Shark Tank India Season 2 but failed to impress any shark and raise any funding on the show. They became the first brand on Season 2 of Shark Tank India to fail at raising any funds despite having a genius customer acquisition strategy.
|Ask||INR 1 crore for 1% equity|
|Sharks Who Invested in Recode Studios||None|
Here's what happened during their pitch at Shark Tank India:
The discussion started where Rahul Sachdeva explains about the brand that it is a beauty and cosmetics brand, while providing an affordable range, the founders say that they have managed to bring international quality in their products.
Not only this, the brand opened their marketplace in 2021, where they have 60+ brands.
Anupam asks - How did you start and how did this idea come into your mind?
Rahul says that he used to work in an organised sector for a brand - Makeover. I studied there and learned what I can do and how I can make the products, or how people work in this sector.
Peyush - What problems are you solving? Because the competition in this sector is really high.
Rahul further says that there are various brands like - Maybelline, Lakme, Sugar, Loreal, Colorbar, Faces Canada, and more.
We say we do not compete with these brands because our segment is quite different from all of these. Because we acquire our customers through online teaching classes, no one does this way. After seeing the products, Aman says that he never saw a packaging that was this worse, ever.
Peyush questions about their sales?
Dheeraj answers - the sales for FY’ 21- 22 is ₹15 Crores and this year, FY’ 22- 23, it is ₹11.5 Crores. Instagram followers - 2, 36, 000
Anupam asks - Are you acquiring your customers through the online teaching classes, is this your strategy or are you just influencing people to buy your products? What is your real strategy?
Dheeraj answers that we give these classes through an artist to the students who are generally college goers. These classes are of 3-4 hours, and the fees for the class is ₹1500/-. Hence, we offer lunch to the students worth ₹1500/- as well as products worth the same amount.
They also say that they reach 1000 such makeup artists who are willing to teach the students. Peyush advises that they need to work on the branding. Vineeta praises the founders on their strategy to educate people and then sell their products.
Aman asks - Is this a profitable business?
Dheeraj answers - last year profit after tax - 6%. We earn ₹65- ₹70 lakhs of profit. The projected sales for this year is ₹30 Crores.
Anupam - Could you please explain about the marketplace you have built?
Dheeraj answers that they generate their 50% revenue from the marketplace. ₹7.5 Crore from other brands. He further explains that they had to add the marketplace in their business because of COVID-19. We already had a stock of our products that had 6-8 months expiry, hence, we have to sell such products at ₹1 all over India.
This way, people tried our products and then there was a demand for our products. And, due to this, more and more people joined us. Anupam declares that they are the emerging faces of India who are going to revolutionise the industry in India.
We all sharks are out but you inspired us!
Want to know more about Recode Studios?