Daryaganj's Unique Pitch Wins Over Shark Tank India Investor

Daryaganj is a Delhi-based startup that was founded by Gurpreet Singh, Raghav Jaggi, and Amit Bagga. The company's mission is to continue the culinary legacy of Kundan Lal Jaggi, Raghav's grandfather, who invented the famous dish butter chicken and dal makhani at his restaurant in Daryaganj in Delhi. The company aims to bring authentic and flavorful North Indian cuisine to its customers.

Daryaganj has five restaurants and one cloud kitchen currently, with plans to expand its business by opening five more restaurants and cloud kitchens. The company's long-term goal is to open 100 restaurants in the next five years. The company's unique features and culinary legacy have made each of its restaurants profitable on their own.

AIM OF THE STARTUP

The aim of Daryaganj is to continue the culinary legacy of Kundan Lal Jaggi and bring authentic and flavorful North Indian cuisine to its customers. The company's founders are passionate about honoring the culinary heritage of their grandfather, who invented the famous dishes butter chicken and dal makhani in his restaurant in Daryaganj in Delhi.

The company aims to provide customers with an unforgettable dining experience that showcases the unique and authentic flavors of North Indian cuisine. To achieve this aim, Daryaganj uses high-quality ingredients, traditional cooking techniques, and recipes that have been passed down through generations.

Another key aim of Daryaganj is to expand its business and open more restaurants and cloud kitchens. The company plans to open five more restaurants and cloud kitchens in the near future and eventually grow to have 100 restaurants in the next five years. This expansion will allow Daryaganj to reach more customers and share its unique and flavorful dishes with a wider audience.

In addition to expanding its business, Daryaganj aims to maintain the profitability of each of its restaurants. The company's unique features and culinary legacy have made each of its restaurants profitable on their own, and the company plans to continue this trend as it expands its business.

TARGET MARKET AND BUSINESS MODEL

Daryaganj's target market is primarily people who are interested in experiencing authentic and flavorful North Indian cuisine. The company's unique selling point is its commitment to honoring the culinary legacy of Kundan Lal Jaggi, who invented the famous dishes butter chicken and dal makhani.

The target market for Daryaganj includes food enthusiasts, families, and tourists who are looking for an unforgettable dining experience. The company's restaurants offer a unique ambiance that combines traditional Indian decor with modern amenities, which appeals to a wide range of customers.

Daryaganj's business model is centered around providing high-quality and authentic North Indian cuisine to its customers. The company sources its ingredients from trusted suppliers and uses traditional cooking techniques to create its dishes. The company's unique features and culinary legacy have made each of its restaurants profitable on their own.

Daryaganj's expansion plans include opening more restaurants and cloud kitchens to reach a wider audience. The company's cloud kitchens will allow it to offer its dishes through online platforms, catering to customers who prefer to order food online.

The company's revenue model is based on selling food and beverages to its customers. Daryaganj's pricing strategy is competitive, making it accessible to a wide range of customers while still maintaining its commitment to using high-quality ingredients and traditional cooking techniques.

SALES

The cost of butter chicken is ?550, and Dal Makhani is ?385. In the last month, the net sales for Daryaganj were ?3 crores. In the fiscal year 2021-2022, Daryaganj had annual sales of ?22 crores. From the start of fiscal year 2022-2023 until now, Daryaganj's sales have been ?18 crores, and it is projected to reach ?38 crores by the end of the fiscal year.

The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Daryaganj's outlets is 21%, while for the corporate level, it is 13%. Out of the total sales, 27% goes towards food cost, 3% for packaging, manpower cost is 17%, real estate cost is 17%, and overheads and commission are 15%. The EBITDA for Daryaganj is 21%.

The average payback period for Daryaganj is between 18 to 21 months. The CapEx (Capital Expenditures) for a new outlet is between ?1.5 to ?1.75 crores.

JOURNEY ON SHARK TANKS INDIA

Daryaganj requested a funding amount of ?90 lakhs for 0.5% equity at a valuation of ?180 crores. During the pitch, the owners received several offers and counteroffers from the sharks.

Veenita offered ?90 lakhs for 1% equity, while Anupam offered ?10 crores for 20% of Raghav's equity and ?90 lakhs for 0.5% equity of the company. Aman offered ?50 lakhs for 1% equity and ?40 lakhs in debt at 12% interest, with a condition that he would be included as a secondary offload.

In response, the founders of Daryaganj made a counteroffer to Aman for ?90 lakhs at 0.75% equity, but Aman gave a last offer of ?90 lakhs for 1% equity with the same condition as before. Ultimately, the final deal was closed with Aman for ?90 lakhs at 1% equity, with the condition that Aman would be included as a secondary offload.

It is important to note that the convertible debt with a 30% discount on the next round's valuation was also proposed as a counteroffer by the founders. However, this option was not accepted by Aman, and the deal was closed with the equity investment offer. Overall, the funding process for Daryaganj was successful, and the startup was able to secure the investment they were looking for.