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Avimee Herbal is a young Indian startup founded by Siddhant Agarwal, Ambika Agrawal, Radha Krishna Choudhary, Vinita Agrawal and Vibhor Agarwal. The company was established in 2021 with the aim of creating hair care and skin care products that combine Ayurvedic and modern science principles to solve people's hair and skin problems. Avimee Herbal has 27 products in the market, and they are currently ranked 9th on Amazon's bestseller list.
Avimee Herbal's unique selling proposition lies in the combination of Ayurvedic and modern science principles in their hair and skin care products. This approach differentiates them from traditional Ayurvedic products that are often associated with a strong aroma and greasy texture. Avimee Herbal's products, on the other hand, have a pleasant aroma and are non-greasy, making them more appealing to consumers.
Avimee Herbal's business model is centered around e-commerce, with 85% of their sales coming from their own website. Avimee Herbal is a unique brand that combines Ayurvedic principles with modern science to create hair care and skincare products that help people solve their hair and skin problems. They have a wide range of products in the market that cater to different hair and skin types. Their products are made from natural ingredients and are free from harmful chemicals, making them safe and effective for daily use.
Avimee Herbal sells its products through various channels, including their own website and different online marketplaces like Amazon, Flipkart, and Nykaa. They have a strong online presence with a user-friendly interface, making it easy for customers to browse and purchase products. The company has adopted a direct-to-consumer (D2C) model, which has helped them build a loyal customer base by providing high-quality products at an affordable price.
Avimee Herbal's target market is primarily women between the ages of 18 and 40 who are looking for natural and effective solutions to their hair and skin problems. Women in this age group are often concerned about their appearance and are willing to spend money on products that can help them look and feel their best.
Moreover, the company's products are not restricted to any particular hair or skin type, making them suitable for a wider audience. However, the company has emphasized on hair care products more than skincare. Therefore, their primary customers are those who suffer from hair loss, hair fall, dandruff, and other related hair problems.
Avimee Herbal has been successful in capturing the attention of its target audience by leveraging social media platforms like Instagram and Facebook to create brand awareness and engage with customers. Their marketing strategy has been effective in building a strong customer base, and the company has been successful in building trust with its customers by providing high-quality and effective products.
Avimee Herbal has seen impressive growth since its launch in 2021, with their net sales reaching 6.5 crores in FY21-22. The company has continued its upward trend with its sales projections for FY22-23 set at 20 crores, with a potential boost coming from the Dubai market. The founders have already received their first order from Dubai, worth 1 crore, which signifies the potential for expansion of the business in the international market.
It is important to note that 85% of Avimee Herbal's sales come from their own website, which showcases the effectiveness of their marketing efforts and the demand for their products. Additionally, their best-selling product, Kesh Pallav oil, accounts for 50% of their total sales, followed by Hair Tone Spray at 30%, and other products at 20%. The high repeat rate of 32% indicates that customers are satisfied with the quality of the products and are likely to repurchase.
Moreover, the company has a gross margin of 69%, which is a healthy margin for any business. It is impressive that Avimee Herbal has managed to maintain this margin while keeping their prices affordable for the customers.
Avimee Herbal's founders appeared on Shark Tanks India with an ask of 2.8 crores for 0.5% equity of the company at a valuation of 560 crores.
The founders received two offers from the Sharks. Amit gave an offer of 1 crore for 2.5% equity of the company at a valuation of 40 crores and 1.8% debt at 12% interest rate. Anupam gave an offer of 70 lacs for 2% equity of the company at a valuation of 35 crores and 2.1 crore debt at 15% interest rate.
The founders gave a counteroffer of 2.8 crores for 1.5% equity. However, the founders did not accept any of the offers, and therefore no deal was finalized.
Avimee Herbal plans to expand its market reach by launching new products and entering international markets. The company's first order from Dubai is worth 1 crore, and they plan to tap into other international markets as well. The company also plans to set up its own factory to increase production capacity and reduce costs.
In conclusion, Avimee Herbal is a promising startup that has achieved remarkable success in a short time. The company's unique selling proposition, combined with its e-commerce business model and focus on natural
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