Fabriclore Update 2024 | Shark Tank India Season 03
Fabriclore founders pitched in Shark Tank India 3 and asked ₹68.7 lahks for 1% equity. The company aims to provide complete fabric solutions for fashion brands and designers.
In the show, they revealed that no money was left in the company’s bank account, and they’ve taken approximately ₹4 crores loan. The founders hadn’t taken any salaries in the past seven months.
It has been quite a long time since the episode was shot, and everyone is curious to know what happened to Fabriclore after Shark Tank.
Shark Tank Clips team follow-up entrepreneurs and companies appeared on the Shark Tank. Here’s your Fabriclore update!
| Company Name | Fabriclore |
|---|---|
| Founders | Vijay Sharma, Anupam D Arya, Sandeep Sharma |
| Founded | 2016 |
| Product | Fabric sourcing platform |
| Ask | ₹68.7 lakh for 1% equity |
| Deal | No deal |
| Sharks | No shark |
Fabriclore Update After Shark Tank
On Shark Tank India, Fariclore founders revealed that no money was left in the company’s bank account, and they haven’t taken any salaries for the last seven months.
They also took a home loan of ₹1.1 crores and invested in the company, and as of September 2023, the company had a loan of approximately ₹4 crores.
Unfortunately, no sharks invested in Fabriclore because of bad financials and business models. However, its appearance on Shark Tank gained immense popularity, and the company was featured in many popular news portals.
Additionally, the Shark’s advice gave them significant insights that could be useful in modifying their business policies and addressing the concerns raised by the Sharks.
Our team contacted the founders for an update on their latest investment round and is awaiting a response. We’ll provide more accurate information in our upcoming Fabriclore update!
As of March 2024, Fabriclore is operational and taking orders. There are six institutional investors, including Rajasthan Venture Capital Fund, Eiffel Industries, and Fluid Ventures.
More clothing brands appeared in Shark Tank India Season 03:
About the company
Vijay Sharma, Anupam D Arya, and Sandeep Sharma co-founded Fabriclore in 2016.
It is India’s first tech-empowered fabric-sourcing platform made for private labels. It offers various fabrics, printing, and dyeing, with low minimum order quantity at competitive prices.
Vijay Sharma is currently the CEO of Fabriclore. Vijay and Sandeep hold an equity of 21.68% each, and Anupam holds 13.49%.
One of the best aspects of Fabriclore is that it has India’s first walk-in fabric studio with 300+ certified fabrics from worldwide providers, printing samples, and customized designs.
Their business model is make-to-order. Fabriclore emphasizes digital printing and screen printing, so they have a 2-3 weeks short turnaround time, which is their USP.
As per information on their official website, Fabriclore has over 200+ certified fabrics and over 100+ verified printers and mills. Some of their most noticeable fabric suppliers are Birla Cellulose, Tencel, and Birla Modal.
They likewise offer different packaging and shipping choices. Fabriclore ships all their orders through DHL Express, which usually takes no longer than 3-6 business days from the date of order placement.
Their walk-in experience studio is open for visits from Monday to Friday between 10:00 AM to 5:00 PM IST.
Fabriclore Shark Tank India Pitch Recap
Entrepreneurs Vijay Sharma, Anupam D Arya, and Sandeep Sharma pitched their company, Fabriclore, and demanded ₹68.7 lakhs for 1% equity at a ₹68.7 crores valuation.
The founders began their pitch by stating that fabric outsourcing is complicated and time-consuming for brands and designers.
They founded Fabriclore to provide people with an overall solution for obtaining superior quality fabric, covering all the related processes.
Anupam Mittal asked about their previous investments.
Vijay informed them that they had to pivot the business model. The profitability before the pivot was breakeven and the total amount raised was ₹9.4 crores.
In Aug ’22, after pivoting, the founders raised ₹2.8 crores from existing investors with a pre-money valuation of ₹72 crores.
Therefore, the total amount raised became ₹12.2 crores.
Peyush Bansal asked, “How did you convince your investors to increase your valuation when your original business went almost to zero?”
They convinced investors to allow them to pivot, and they’ll keep the sales figures around ₹50-₹60 lakhs.
Azhar Iqubal stated that they’re good salesmen.
Namita Thapar asked, “When did you start your new model? What’s your current run rate?”
In March ’23, the founders took a home loan of 1.1 crore to sustain the company.
Later, in July ’23, they began approaching new investors. They received an investment commitment of ₹8 crores at a pre-money valuation of ₹56 crores from an institutional investor on the condition that the founders’ stake must be over 50% after the investment.
The company had booked orders of ₹85 lakhs, and their monthly sales are ₹40-50 lakhs with a gross margin of 20-22%.
They acquired 300 B2B customers from Feb ’23 to Oct ’23. Out of that, 109 customers purchased from Fabriclore every two months. Their average order value is ₹40,000.
Azhar asked, “How does your B2B sales occur?”
Co-founder Anupam informed them about their experience studio, which has a conversion rate of 90%.
Namita asked, “What are the types of customers you have?”
Their customer segments include independent private labels and multi-brand retailers, where multi-brand retailers contribute to 30% of sales.
Fabriclore isn’t making a profit yet. They were losing around ₹14 lakhs per month on a sale of around ₹40 lakhs and were in debt of almost ₹3.5 to ₹4 crore. Also, Vijay’s house is on mortgage.
Anupam advised them to ask their investors to go with the clawback option.
Vijay thanked him for this advice.
Azhar was the first Shark to go out because he found complexity in the business model.
Namita also went out because of their losses.
The business strategy didn’t align with Peyush’s ethical values, so he’s out. For similar reasons, Amit Jain didn’t invest.
Anupam wasn’t sure about getting his money back, so he was out.
Ultimately, Fabriclore had to leave without a deal from the Sharks.
Conclusion
Fabriclore had no money left in Septemeber 2023, but the founders took ₹1.1 crore home loan put in the company and stopped taking their salaries. This entrepreneurial determination helped this company survive despite profound financial challenges. As of March 2024, this company operates and sells fabrics to B2B businesses.
