Artinci Update 2024 | Shark Tank India Season 03
Bengaluru-based sugar-free sweets startup Artinci was featured in Shark Tank India (Season 03). The company makes delicious sugar-free sweets for diabetic people.
Sumit Rastogi and Aarti Laxman started this business in 2017, and both came to the show, seeking ₹50 lakh for 1.75% equity.
Anupam and Vineeta were impressed by the taste, but the company’s financials were not good. Will Artinci grab any deal in the Shark Tank? Here’s your Artinci update after the show!
| Company Name | Artinci |
|---|---|
| Founders | Sumit Rastogi, Aarti Laxman |
| Founded | 2017 |
| Product | Sugar-free sweets and ice-creams |
| Ask | ₹50 lakh for 1.75% equity |
| Deal | ₹50 lakh for 5% + 1% royalty until ₹75 lakh recouped |
| Sharks | Vineeta Singh |
Artinci Update After Shark Tank
Sumit Rastogi and Aarti Laxman pitched in Shark Tank, seeking ₹50 lakh for 1.75% equity. The sharks were concerned about their financials because the company was running at a loss. However, Vineeta saw the potential and invested ₹50 for 5% equity along with 1% royalty on each product until ₹75 lakh is recouped.
Our team follows all the companies and founders that appeared in Shark Tank. Once we get a response, we provide the company updates after the show.
As of March 2024, the Artinci website is live, and this business is operational. The company saw a huge boost in sales after the airing of the episode. The marketing cost is also reduced because the company was featured in many popular news magazines after appearing in Shark Tank.
We are hoping that Sumit and Aarti will make Artinci India’s No. 1 sugar-free sweet and ice-cream brand. As soon as we get any reply from the founders, we’ll come up with the latest Artinci update for our readers.
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About Company
Artinci is a zero-sugar sweets maker. They even manufacture ice cream, Indian sweets, and cookies. They are not only tasty but completely free from any sugars.
The company uses its proprietary stevia-based sweetener with a low glycemic index. Artinci has served more than 50,000 customers till now.
They have their own website, and also their products are available on marketplaces. The founders claim that their vision is to serve health-conscious people with the best alternatives where they don’t miss out on tasty sweets.
Artinci Shark Tank India Pitch
The founders started their pitch with an ask of 50 lakhs for 1.75% equity at a valuation of ₹28.57 crores.
The sharks tasted their products and really liked their taste.
Aman: So, do you manufacture your own sweetener?
Founder: Yes! It took eight months to research and develop the ice cream sweetener. Also, we have a library of sweeteners. We use different sweeteners for different products.
But, the sharks said that they were getting the aftertaste of sugar in most of their products which they tried.
The founders then showed a comparison report of two servings of regular gulab jamun and Artinci’s gulab jamun. It showed that when a user ate Artinci’s gulab jamun, there was no spike in sugar.
Vineeta: Okay, so what is the difference in calories?
Founder: No, our products are not calorie-free, and neither are we marketing ourselves as a low-calorie product. We specialize in diabetics.
Namita then asked about their manufacturing process and how they centralized everything in their brand.
Founder: We manufacture a facility in Bangalore. It has a monthly manufacturing capacity of 8000 liters of ice cream and 2000 liters of cookies.
The founder then said that their sales in FY22-23 were ₹4.4 crores. But, they had ₹5 crore loss during that. This year, they are going to make sales of ₹5.3 to ₹5.5 crores, and they will have a loss of ₹1.1 to ₹1.2 cores only.
The sharks were shocked to know that the brand was facing such high losses.
Anupam then asked about the equity shareholders of Artinci.
Founder: We own 72% of the company. We have already raised ₹3.1 crores at the same valuation.
Peyush: Okay, but what are your margins in your business?
The founder said that they are doing 62% gross margin currently. They were running dark stores with physical facilities exclusively dedicated to fulfilling online orders, but they expanded too quickly and started facing huge losses.
Aman: So, why didn’t you guys do the math properly? It was an easy task.
Founder: In hindsight, yes, it is. We overlooked the finances and, because of this, went into loss.
Vineeta said that they were selling at a unit-level loss, which is very senseless.
Peyush: So, have you corrected your finances now?
Founder: Last November, our loss was ₹44 lakhs, but this November, it is reduced to ₹8 lakhs. Our gross margin has also increased from 42% to 62% since last year. Our major burn currently is in salaries.
Peyush said that the inventory of Artinci is the problem. It is perishable.
The founder explained that, yes, that is surely an issue. The shelf life of our products is not that high, which forces us to burn more of our working capital.
Aman: So, how much working capital do you guys have left in the bank?
Founder: We have around ₹8 lakhs left in the company’s bank account.
The sharks quickly explained that the brand was running at the brink of total collapse. They don’t even have the capital to operate for another month.
Founder: Our family is helping us and lending money to us.
Peyush: See, I really liked your product’s taste and quality. But I am out of the deal as you guys are not on the correct path right now. I hope you guys find the right path.
Then, even Namita went out of the deal for very similar reasons.
Anupam: I think you guys lack business acumen. I can’t understand your brand or products. You guys have gone too broad with such a little capital. So, I am out. Good Luck!
Vineeta then said that even Cadbury tried and failed in the market when they tried to replace Indian sweets with chocolate but failed.
She said that there is a huge potential in Artinci’s product. She offered them a deal of ₹50 lakhs at 10% equity.
Aman: The other sharks have already told you so much. And I won’t repeat anything. I am out.
After a few counters, the founders closed a deal with Vineeta for ₹50 lakhs for 5% equity and also 1% royalty until ₹75 lakhs are recouped.
Final Words
Artinci managed to get the much-needed funding and also an experienced shark on board. Their products have a huge potential if scaled properly and with proper guidance. Vineeta definitely saw something in them, which is why she was the only shark to give an offer to Artinci.
