Patil Kaki Shark Tank India
The second season of Shark Tank India has started and brought new hopes for startups to get funds for their business. In the last week, Shark Tank India Season 2 has seen many pitches – but the pitch of Patil Kaki made four out of the five judges into a bidding war. That became the moment of a homemade snack business – Patil Kaki. The Patil Kaki story has impressed all the judges with her impressive numbers.
In this article, we will study how the 47-year-old entrepreneur, Geeta Patil from Mumbai has built her 3 crore business. Our team of experts have put a lot of research into evaluating their brand on various factors and how her pitch and numbers stunned Shark Tank India Judges. Let’s shed light on the company, its journey, and the founder’s background.
Table of Content
- 1 Patil Kaki Shark Tank India
- 2 Patil Kaki Shark Tank Fact
- 3 Patil Kaki Founder and their Story
- 4 About Patil Kaki Company
- 5 Patli Kaki Deal and Bidding
- 6 Is it a profitable Deal for Sharks or Entrepreneurs?
- 7 Lesson learned as an entrepreneur
- 8 How do Patil Kaki get funding at 10 crore valuation?
- 9 Marketing Terms used in Patil Kaki Shark Tank Episode
Patil Kaki Shark Tank Fact
|Episode Info||Season 2 Episode 2 (1st Jan 2023)|
|Business Pitch||Homemade Maharashtrian Dishes at your doorstep. Authentic and best in quality straight from Marathi homes|
|Entrepreneur/founder||Vinit, Geeta Patil, Darshil|
|Asked for (Expectation)||₹40 lakhs for 2.5 equity, at 10 crore evaluation|
|Deal (Reality)||₹40 Lakhs for 4% equity at 10 crore evaluation|
|Shark||Piyush Bansal and Anupam Mittal|
|Patil Kaki Address||PATIL KAKI ECOM VENTURES PVT LTD, 34/265, Anand Nagar, Vakola, Santacruz East, Mumbai, 400055, Maharashtra, India|
Patil Kaki Founder and their Story
Geeta Patil, aka Patil Kaki, has started her snacks business with 5000 rupees in a 200 sq feet kitchen in Mumbai. When her husband lost his job in 2016, she started making and selling snacks in her colony and nearby areas. A new face of this business emerged when her 21-year-old son Vinit Patil and his friend Darshil Savla joined the business.
Her Son, Vinit, and his friend, Darshil, are college dropouts who gave a digital presence to the business. They were already running a small IT service company. With their digital and web development experience, they have built a website for Patil Kaki to reach more customers online. The online web platform helped them to expand their sales from 15-20 orders per day to around 3000 orders monthly, as per reports.
These young and ambitious entrepreneurs established a market for Patil Kaki snacks business. Their motivation and experience in IT led them to take this business to the next level.
About Patil Kaki Company
Patil Kaki Shark Tank India is a traditional Maharashtrian snack-selling business. She started her business by selling homemade food products, which are Ladoo, Chakli, and a variety of Namkeen. This home business also manufactures and delivers products made only in Marathi homes. Ukdiche, Modak, Pooranpoli, Bhajani, and Chivda are among the best-selling products in the Patil Kaki menu. This popular and authentic snack brand is loved by many people for its delicious products.
In 2020, Vineet Patil and Darshal used their tech knowledge to build a website and joined Patil Kaki’s business full-time. During the Pandemic, they invested their funds and resources to build a strong online traditional snack brand. As a result, they attracted hundreds of customers from PAN India and sent hundreds of Farsan packets using their business delivery model.
What problem did Patil Kaki solve?
By bringing home meals to a huge commercial scale and integrating it with all food delivery partners, a fantastic business case study for India has been provided. There are many home-based enterprises around. However, not all businesses can establish on such a vast scale.
The Patil Kaki online snacks business addressed the issue of local snacks’ accessibility. They introduced this brand for people to enjoy home-based snacks at affordable prices and get them delivered to their homes. People can purchase local foods from Patil Kaki online at a reasonable price.
Patil Kaki Mission
Patil Kaki’s business mission is simple – Create a one-stop platform for traditional Maharashtrian Snacks. After building a successful online presence, their small home-based business turned into a multi-million business. Let’s learn more about their products and their market value.
Patil Kaki Products
You can satisfy all your snacking needs in one place. They have divided products into four categories: Namkeen, Ladoo, Healthy, and Traditional Marathi Snacks.
- The healthy category includes all types of Ladoos.
- Namkeen includes chives, chakli, kachori, and more.
- Other traditional types, such as Modak, Puran Poli, and karanji.
Patil Kaki’s Modak, Chivda, and Ladoos are other traditional snacks famous among social media followers and online customers. Initially, they invested 5000 rupees in their business. At first, they started making products at home and selling traditional food products from house to house. When their products became a sensation on the Internet, demand started rising. Soon, the business sales turnover crossed the 3 crore milestone. You can try Patil Kaki protein ladoo as a healthy and delicious snack.
Patil Kaki Snack business is a women-led business, where employees are local women who have been working with Geeta Patli since 2017. Over 20 women are working with Geeta to produce fresh and flavorful home-based snacks for people all over India. The market size of food production is expected to reach $66 billion in 2023. The food snack market is expected to grow annually by 7.52% between 2023-27.
Patil Kaki Products Shelf Life
Modak, Pooranpouli, and other namkeen are loved by their potential customers. The USP of this business is that they sell Maharashtrian snacks to PAN India, and their shelf life is 25 to 30 days. Other snacks, such as Modak and Pooranpouli, have only 2 days shelf life, but new technologies could increase the shelf life by 2 to 2.5 months.
Patil Kaki Marketing and Sales strategy
Adopted PAN India delivery model to deliver their product to customer’s doorstep. By establishing a successful-online website helps them to reach more customers online. They have over 25k followers on Patil Kaki Instagram page. They have converted more customers through clicks into sales using a performance marketing strategy.
Patil Kaki Packaging
The colorful packaging of the Patil Kaki has stunned judges, which looks stunning and makes a statement for its brand. The biodegradable and sustainable material is used to prepare packaging for Patil Kaki orders.
Patli Kaki Sale and Profit
Geeta Patil first invested 5000 rupees in starting her business. Later on, her business earned revenue around 12 lakh annually until 2021. When her son, Vinit Patil joined the business, Patil Kaki revenue reached INR 1.4 crore. In FY 2022-23, they made 1.02 sales till November. In the last year, Patil Kaki started making more profits, and in August 2022, their profit was INR 6.5 lakh.
Their average selling price is INR 650.
At the end of the year, Patil Kaki turnover is expected to be nearly 3 crore.
Patli Kaki Cost Structure
The average product cost is 650. Each product cost depends on cost structure:
- Making Cost contributes to total Cost – 5%
- Packaging- 5%
- Deliver- 15%
- Marketing- 30%
- Profit Margin- 25%
Patli Kaki Growth Plan
Sharks asked the Patil Kaki founders how they were planning to grow this home-style business. Currently, the business is using semi-automate for making snacks. The business has over 25+ members for cooking and packaging products, and the other 2-10 employees manage business operations, such as marketing, sales, delivery, and others.
In Shark Tank India, they asked 40 lakhs for 2.5 % equity to make this business completely automated without compromising the taste and quality of the products. They want to take this home-style snack business onto the global stage by introducing new technologies. Their main vision is to increase the shelf life of products such as Modak and Pooranpoli so that they can deliver the taste of Maharashtra to every corner of India.
Patli Kaki Deal and Bidding
Demand from Entrepreneur
Vinit Patil and his friend have made a deal of INR 40 lakhs at 2.5% equity. The estimated business valuation is expected to be 10 crores. Depending on their business valuation, they have raised 7.5 lakhs and 29 lakhs from other investors in their last two pitches before pitching to shark tank judges.
Offer from Sharks
This home-style business has impressed four out of five Shark tank India judges. After pitching, Shark Anupam offered INR 40 lakh for 4% equity at a company valuation of 10 crore. Then Shark Vinita offers 40,000 for 10% equity and a $4 million company valuation. Shark Peyush and Shark Anupam then made an offer of 40,000 for 4% equity and a company valuation of ten crore rupees.
In the end, Business Pitcher closed a deal with Shark Piyush and Shark Anupam’s offer – 40 lakh for 4% equity, a 10 crore valuation for the company.
Is it a profitable Deal for Sharks or Entrepreneurs?
Vinit and his friend offered a deal at 40 lakhs for 2.5% equity. The business pitch closed at 40 lakhs for 4% equity by Shark Piyush and Shark Anupam Mittal at a 10 crore valuation as Anupam Mittal saw that these young guys had earned profits of INR 3 crore.
Patil Kaki has already turned her business into a successful brand. They have bagged investments from other investors before pitching their Idea to Shark Tank India Investors. After seeing their performance and the company’s valuation, they agreed to 4% equity, whereas on the other hand, other sharks wanted to give 40 lakhs for 10% equity.
After seeing their potential, Sharks were able to lower their equity percentage from 10% to 4% to join this successful business. Founders also accepted this offer, close to what they offered by Judges of Shark Tank India. So, it was profitable for Entrepreneurs, as they could use Piyush Bansal’s and Anupam Mittal’s experience to change product quantity using automated technologies and improve their profits out of sales.
Lesson learned as an entrepreneur
On Friday evening, Mittal wrote on LinkedIn: “This story teaches us a valuable lesson … once you have clarity, maybe you don’t need a college degree. They dropped out with confidence, which is worth considering. These guys have a profitable revenue run rate of ₹3 crore. We were moved by their resourcefulness, tenacity, and clarity, which compelled us to invest.”
How do Patil Kaki get funding at 10 crore valuation?
There are various reasons, which are mentioned below:
- High-quality products with flavorful taste and healthy elements.
- Maintain hygiene and use sustainable packaging for orders.
- 21-year-old serial entrepreneur with business and marketing experience.
- The average selling price is INR 650.
- Annual Sales of products are more than 1 crore and their profit margin is 25%.
- Valuable performance marketing.
- Attracted other investors at 10 crore valuation.
Marketing Terms used in Patil Kaki Shark Tank Episode
Performance marketing is a type of digital marketing in which advertisers pay publishers (affiliates) for specific actions taken by users, such as making a purchase or filling out a form. The advertiser only pays the publisher when a specific action is taken, hence the name “performance marketing.”
This differs from traditional forms of advertising, such as brand advertising, in which the advertiser pays upfront for ad space or airtime regardless of the number of conversions.
Average Selling Price
The Average Selling Price (ASP) is a metric used to measure the average revenue generated per unit sold over a specific period of time. It is calculated by dividing the total revenue by the number of units sold during that period.
The Average Selling Price is a useful metric for businesses to understand how their pricing strategy is impacting their sales and revenue. By monitoring the ASP over time, businesses can identify trends and make informed decisions about pricing, product development, and marketing.
For example, if a company sold 100 units of a product for a total of $10,000 in a given month, the ASP would be $100 (10,000 / 100). If the company raised the price of the product, the ASP would increase and the business would make more revenue but sell fewer products.