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Tea Fit, founded by Jyoti Bhardwaj in 2021, is a refreshing unsweetened beverage brand that aims to provide a healthier choice to consumers. Jyoti holds 99.5% shares of the company, while the remaining 0.5% shares belong to her mother-in-law, who was her first investor.
The idea behind Tea Fit is to provide a healthier beverage option for consumers who want to avoid sugary drinks. Jyoti Bhardwaj was inspired by her own family's struggle with diabetes and wanted to create a product that would be a refreshing and healthy choice for everyone.
The aim of Tea Fit is to promote health and wellness by providing a beverage that is free from calories and sweeteners. The company uses a proprietary brewing process to create a blend of green tea, black tea, hand-toasted barley, and a formulation of 15 herbs. This blend gives Tea Fit its unique flavor and provides a little sweetness without the need for any added sugar or artificial sweeteners.
Tea Fit is committed to providing a high-quality product that is FSSAI tested and contains no calories or sweeteners. The company is also dedicated to making its product widely available by selling it through its online store, Amazon, Big Basket, Cred, and in more than 200 leading retailer stores throughout India.
The unique selling proposition (USP) of Tea Fit is its commitment to providing a refreshing and healthy beverage option that is free from sugar and other sweeteners. Unlike many other tea and beverage brands, Tea Fit contains no calories, making it an ideal choice for those who are watching their weight or trying to reduce their sugar intake.
Another key USP of Tea Fit is its proprietary brewing process. The company uses a blend of green tea, black tea, hand-toasted barley, and a formulation of 15 herbs to create a delicious and unique flavor profile that sets it apart from other unsweetened tea brands.
Tea Fit's dedication to quality is also a key USP. The company's products are FSSAI tested, ensuring that they meet the highest standards for safety and quality. Additionally, the company is committed to making its products widely available through its online store and partnerships with major retailers like Amazon and Big Basket.
The business model of Tea Fit is centered around providing a healthy and refreshing beverage option to consumers while maintaining a focus on quality and accessibility. The company's primary revenue stream is the sale of its unsweetened tea products, which are available through its online store and partnerships with major retailers such as Amazon and Big Basket.
Tea Fit's products are priced competitively, making them accessible to a wide range of consumers. The company also offers promotions and discounts to encourage repeat purchases and build customer loyalty.
In addition to its direct-to-consumer sales, Tea Fit also generates revenue through partnerships with retailers. By making its products available in more than 200 leading retailer stores throughout India, the company is able to reach a wider audience and increase its sales volume.
Tea Fit's business model is also built on a commitment to quality and safety. The company's products are FSSAI tested, ensuring that they meet the highest standards for safety and quality. This dedication to quality helps to build customer trust and loyalty over time.
The target market for Tea Fit is health-conscious consumers who are looking for a refreshing and healthy beverage option that is free from sugar and other sweeteners. This includes individuals who are actively trying to reduce their sugar intake, manage their weight, or adopt a healthier lifestyle.
Tea Fit's products are also well-suited to individuals with specific dietary requirements, such as those with diabetes or who follow a keto or low-carb diet. The inclusion of hand-toasted barley and cinnamon in Tea Fit's products provides a little sweetness without the need for added sugar, making them a great choice for those looking for a more natural and healthy alternative to traditional sugary beverages.
Tea Fit's products are widely available throughout India, both through the company's online store and partnerships with major retailers such as Amazon and Big Basket. This makes the products accessible to a wide range of consumers, including those who may not have access to specialty health food stores or other retailers that cater specifically to health-conscious consumers.
Tea Fit has a price of ?120 for one bottle, out of which the trade margin is ?36, and the price to the retailer is ?84. The COGS (Cost of Goods Sold) is ?30, and the gross profit is ?54. The cost of making one bottle is ?5, and other costs such as the bottle cap, sleeve, ayurvedic herbs, tea leaves, German technology, filing cost, box cost, and other miscellaneous costs total up to ?15.5.
In FY 21 to 22, Tea Fit reported sales of ?15.5 lakhs and a profit of ?78 lakhs. In FY 22 to 23, the company is projecting sales of ?45 to 55 lakhs. The company's monthly sales figures in July 22, August 22, and September 22 were ?2.5 lakhs, ?2.1 lakhs, and ?3.5 lakhs, respectively. Tea Fit's sales are distributed between online sources and offline sources, with 35% of sales coming from online sources and 65% from offline sources.
Tea Fit has recently developed pre-mixed tea sachets that it plans to launch soon in the market. These sachets are expected to be priced between ?350 to 450 for a pack of 10 sachets. This move is expected to increase Tea Fit's sales volume and reach a wider audience, especially those who prefer the convenience of pre-mixed sachets.
The owner asked for ?50 lakhs for a 3% equity stake in her company at a valuation of ?16.67 crores.
During the pitch, Jyoti received offers from multiple sharks. Vineeta and Anupam offered ?50 lakhs for a 25% equity stake in the company at a valuation of ?2 crores. Peyush offered ?50 lakhs for a 20% equity stake in the company at a valuation of ?2.5 crores. Aman offered ?50 lakhs for a 10% equity stake in the company at a valuation of ?5 crores.
Later on, Vineeta, Anupam, and Peyush revised their offer and matched Aman’s offer. However, Jyoti gave a counteroffer to all four sharks of ?50 lakhs for an 8% equity stake at a valuation of ?6.5 crores.
Finally, Jyoti closed the deal with all four sharks at ?50 lakhs for an 8% equity stake in the company at a valuation of ?6.5 crores. This partnership with the sharks is likely to provide Tea Fit with additional capital and resources to expand its business and increase its market share.
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