Avataar Skincare Update | Shark Tank India Season 03
Avataar Skincare founder Saumya Misra pitched in Shark Tank Season 3, seeking 70 lakh in exchange for 1% equity in the company. It provides world-class skincare treatment at home.
Vineeta and Peyush decided to avoid making an offer because they noticed too much arrogance in her pitch. However, the company has decent revenue, a considerable margin, and huge growth potential.
Aman Gupta and Anupam Mittal decided to bet on the founder’s confidence and offered 70 lakh for 3% equity. But Saumya doesn’t want to lower the valuation.
Are you eager to know what happened to Avataar Skincare in the Shark Tank and where this company is now? Find out everything in this Avataar update!
| Company Name | Avataar Skincare |
|---|---|
| Founders | Saumya Misra |
| Founded | 2022 |
| Product | Laser skincare treatment service at home |
| Ask | 70 lakh for 1% equity |
| Deal | 35 lakh for 0.5% equity + 35 lakh debt at 14% interest for 3 years |
| Sharks | Aman Gupta, Anupam Mittal |
Avataar Skincare Update After Shark Tank
Avataar Skincare founder Saumya Misra appeared in Shark Tank India (Season 03) and got a combined deal from Aman Gupta and Anupam Mittal. Both sharks invested 35 lakh for 0.5% equity and 35 lakh debt at 14% interest for 3 years.
As of March 2024, Avataar is doing tremendous and has expanded its business in eight cities. Avataar Skincare services are available in Delhi, Mumbai, Bangalore, Pune, Chandigarh, Gurugram, Faridabad, and Ludhiana.
In a live conversation on Instagram, Saumya Misra revealed they will start their services in Chennai, Hyderabad, and Ahmedabad by May 2024. Currently, the company has 222 employees, 180 of whom are women.
She also revealed that companies are getting orders and bookings beyond their capacity, which started after the episode aired on Sony Television.
The company started an artificial intelligence feature on its website where anyone can do a skin analysis and get recommendations for the most suitable skincare services.
More beauty and skincare businesses appeared in Shark Tank India:
About Avataar Skincare
Saumya Misra started Avataar Skincare. She claims it to be the lone app in the world that can be used to book world-class laser treatments from the comforts of our homes.
They provide treatments for many skin conditions like acne, pigmentation, unwanted hair, hair fall, weight reduction, etc.
All of their equipment is US FDA-approved and 100% safe. Dermatologists themselves design the treatments. Clients receive the treatments at their homes from trained technicians.
Their types of equipment come with ‘Cocktail Technology,’ which ensures faster results for clients at a 20-30% cheaper rate. They have already provided service to more than 7000 customers.
Avataar Skincare Shark Tank India Pitch
The founder began the pitch with an ask of ₹70 lakhs at 1% equity.
Anupam: Why did you keep your brand’s name as ‘Avataar’?
Founder: We were looking for a word that would be relatable to all. It also portrays our essence nicely. We give people the avatar that they desire.
Aman then said that the brand is doing the same thing as UrbanClap. They provide salon services at home, and Avataar provides skin care services.
Founder: Sir, please don’t compare us with them. Our value proposition is the best results and affordability.
Aman: OK, let me take the name of a different company, KayaatHome.
Founder: No. There are differences in our results, practices, and sanitization.
Anupam and Namita then said to explain their actual business model rather than demeaning other brands.
Founder: We have four categories. Our sessions range from 3,000 – 10,000 per session.
The founder then explained that they have dark stores in three cities where their machines are stored. They also have 50+ therapists who collect it and go to customers’ homes.
Peyush: What is the profile of your therapists?
Founder: They are primarily people who have completed the salon beautician course. We hire both fresh graduates and college students as well.
Vineeta then asked about key differences between Avataar and its competitors.
The founder said that we have superior equipment, which is US FDA-approved, and we use ‘Cocktail Technology,’ which provides faster results. We also provide incentives to their therapists for better performance.
Peyush: In business, Incentives don’t fix everything in the long term. And all the things you just said can be easily copied.
The founder said they also have developed a great working culture in their company, which is why all their therapists are still with them, and very few have joined the competitors.
Anupam: What is the difference between customers in Home Service vs Clinic?
Founder: It is just 1%. But, in the future, we will capture 20% of the market, and so it will be 20% since no one else is doing home laser treatments.
Anupam: Saumya, I can see arrogance in your answers. You are putting people down or just disrespecting our questions.
The founder apologized and said she didn’t want to put anyone down.
Vineeta: The skin care market is extremely huge. But I won’t be able to work with you since you lack humility. This category needs extra empathy, which you lack.
Peyush: Sharks are already leaving the deal without looking at your sales. There must be a reason for it. I am also out today.
The founder then defended herself by revealing that they have 30% repeat clients, which means they provide a comfortable experience.
Peyush: I am not judging you. I just gave a feedback. We all make mistakes and learn.
The founder then revealed that they are doing 60 lakhs per month.
Anupam: Your sales are good, but why do you have such a high valuation?
Founder: I think we have proven a business model that works. Now, we need money to scale it. We have already received 16.6 crores at the same valuation.
Namita then went out of the deal. She said there is no clarity on whether the business model is trustworthy.
Anupam then advised on starting an Omni-channel business, which will help them scale faster. They shouldn’t rely just on home services.
Anupam: I think your valuation is completely off. But I can see some spark in you. So, I offer you 70 lakhs for 3%.
Aman: I also feel that you can do something. Take 70 lakhs for 3% equity.
The founder then gave a counteroffer of 35 lakhs for 0.5% equity and 35 lakhs debt at 14% interest for 3 years. Aman and Anupam agreed to this proposal, and Saumya left the show with a combined deal.
Final Words
Avataar Skincare got funding and two experienced sharks on board. Their appearance on such popular TV shows did free marketing for the company. Avataar Skincare saw a massive spike in orders and revenue growth.
As of now, their services are available in 8 cities and expanding in other cities also. We’re sure that Saumya, Aman, and Anupam will make Avataar a giant brand in home skincare services.
