Koparo Update | Shark Tank India Season 03
Koparo is a toxin-free cleaning brand that manufactures chemical-free dishwasher liquids and home cleaning products. Founder Simran Khara appeared in Shark Tank India (Season 03) seeking ₹75 lakh investment in exchange for 1% equity.
boAt co-founder Aman Gupta and Sugar Cosmetics co-founder Vineeta Singh matched the ask and invested ₹75 lakh for a 1% stake in the company. Will Aman and Vineeta really invest in Koparo? Here’s what happened to Koparo after Shark Tank.
| Company Name | Koparo Clean |
|---|---|
| Founders | Simran Khara |
| Founded | 2021 |
| Products | Toxin-free dish and home cleaning products |
| Ask | ₹75 lakh for 1% equity |
| Deal | ₹75 lakh for 1% equity |
| Sharks | Vineeta Singh and Aman Gupta |
About the Company
Simran Khara founded Koparo in 2021. Her motivations are to intercept the harmful conventional cleaning products which are extremely unsafe to use.
This is what led her to start Koparo where they make toxin-free, eco-friendly, pet-safe, and child-safe products.
They have a very diverse inventory, which includes floor cleaners, laundry detergent, fabric conditioners, dishwashing liquid, handwash, cleaning accessories, and fresheners.
The company had ₹4.5 crores in revenue in FY22-23, and they’re projecting ₹12 crores in revenue in FY23-24.
She raised ₹5.2 crore from 4P Capital Partners at a valuation of ₹32 crore, and in the second round, she raised ₹12 crore at a valuation of ₹57 crore.
Koparo Shark Tank India Pitch
The founder pitched a deal of ₹70 lakhs for 1% at the valuation of ₹70 crores. The sharks looked interested and were ready to know about Koparo in detail.
₹70 lakhs is certainly a huge ask, and the founder will have to make her position even stronger for this deal to materialize. This is where the discussion begins.
Vineeta: Is there any data or research about the harmful effects of conventional cleaning products that we use daily?
Founder: Yes, there are many studies that prove that bleach, which is common in all conventional cleaning products, can cause various health issues.
Vineeta wasn’t convinced by this answer and thought it to be far-fetched as there are even so many beauty products that use such ingredients, and people still use them.
Anupam agreed with this.
Anupam: There are many modern theories about all chemicals being bad for humans, but we still don’t have enough scientific evidence to conclude anything.
Founder: No, I don’t believe that all chemicals are bad. But, I believe in efficacy, and we test all our products in the lab to check that they are equally effective at the same time not harmful.
Peyush raised an important point that even the mainstream FMCG brands can do the same, and they already have their own distribution.
Founder: Yes, the mainstream brands will do that, but after a few years. And, until then, we would have already got a stronghold in the market.
The discussion moved toward the price point, where Vineeta raised concerns that this product may have a premium price point. The founder disagreed and gave actual price points.
Founder: Koparo’s dishwasher liquid of 500ml is sold at ₹159. Meanwhile, our competitor’s liquid is sold at ₹129.
The sharks looked very impressed with this price point. Ritesh really liked the fact that Koparo’s pricing is so competitive against the conventional brands.
All the sharks were now eager to review their products.
The sharks liked the smell and packaging of the products. But, there were some concerns regarding the diversity of products.
Vineeta: The handwash is really a stretch as people may not use the same brand of handwash that they use for washing their clothes and utensils. Only some rare brands have been able to make that transition.
Even Anupam agreed with this and added whether the brand’s equity would transfer into so many categories in the long run.
Founder: I truly think that it is sustainable to cut across so many categories. Although we are making a category brand, we can make changes in the future if we want according to the market.
Ritesh now diverted the discussion towards market share and inquired about Koparo’s current position in the market compared to its competitors.
Founder: We are already ahead against some of our competitors. And, also our price ranges are quite lower compared to the rest. Last month, we did revenue of ₹80 lakhs.
Peyush then asked about yearly revenues. The founder revealed that Koparo did business of ₹4.5 crores last year, and this year, there are projections are about ₹12 crores.
Peyush: But you are still very early. Your biggest competitor is at ₹400 crores in revenue; meanwhile, you are second and only at ₹12 crores.
Founder: Yes, because the space is not crowded in natural care in India.
Vineeta then went on to praise the founder for keeping prices so close to their competitor, who are already market leaders. She gave an offer of ₹70 lakhs for 2% equity in Koparo.
Vineeta: I think you are a phenomenal founder, and I am really interested in working with you.
This offer was made quite already as the other sharks still were not completely convinced and needed more substance. Peyush inquired about the company’s previous funding.
Founder: We have raised two rounds. The first one was ₹5.6 Cr, and the second one was ₹12 crores at a valuation of ₹57 crores.
The founders informed us that Koparo’s gross margin is currently at 66%. Meanwhile, order processing, third-party logistics, and warehousing costs 28%.
Peyush: Okay, so what is your sales channel?
Founder: We do 45% of our sales from our website, 40% from Amazon, 7-8% from BigBasket, and the rest from quick commerce.
Anupam seemed impressed with the numbers and vision of the founder. He gave an offer of ₹70 lakhs for 1.16% equity. This is very close to the founder’s original ask.
Aman then wanted to know about what he could add to Koparo as they were already doing great, and everything looked jolly.
Founder: Aman, I am not making this up. Your knowledge about digital brand-building is extremely incredible and we would want that in Koparo.
The founder then said that she is actually looking for an experienced entrepreneur who has already made it big in the market and could help her in scaling and making fruitful decisions.
Aman: I get you. I was already convinced after looking at your price range. And, the day you take your price range even lower, then you will kill it in the market.
Aman and Vineet then gave a combined offer of ₹70 lakhs at 1%. This is exactly what the founder was looking for.
The founder happily accepted the offer even before the remaining sharks could make an offer.
Peyush: So, you don’t even want to hear our offer?
Founder: No, I don’t want your offer now. Sorry.
Everyone starts laughing, and she takes Aman and Vineeta’s combined offer.
Koparo Shark Tank Update
Koparo founder Simran Khara pitched on Shark Tank India with an ask of ₹75 lakh for 1% equity. Anupam gave her a counter-offer of ₹70 lakh for 1.16% equity, but Aman and Vineeta matched the initial ask and invested ₹70 lakh for 1% equity.
Simran happily accepted Aman and Vineeta’s offer and came out of the Shark Tank. After airing the episode, many news websites featured this brand. It resulted in a huge boost in sales through online stores and Amazon.
We are hoping that Simran will make Koparo India’s #1 natural home cleaning brand. In 2024, the Koparo website is live, and it’s products are also available on Amazon.
Also Check:
Final Words
In Shark Tank India, it’s very hard for a founder to get a deal on the initial ask. But Koparo absolutely deserved it. They are doing well in the market, so it was extremely easy to convince the sharks.
With ₹70 lakh investment, extreme popularity, and two experienced sharks on board, Kopara has the perfect opportunity to become a mainstream player.
