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Spice Story is a Mumbai-based startup that was founded in 2019 by Soumyadeep Mukherjee, Vibhor Rastogi, and Gayatri Gogate. Soumyadeep Mukherjee, who is 44 years old and hails from Mumbai, has experience in distribution channels of FMCG and financial sectors. He has worked in five different countries and 19 different regions in India. Vibhor Rastogi is 40 years old, and Gayatri Gogate is also from Mumbai.
Spice Story aims to bring the flavors of the streets to every corner of the country. The company's vision is to provide a unique experience to their customers by offering the taste of traditional street food in a new and innovative way.
The founders of Spice Story believe that street food is an integral part of Indian culture, and they want to preserve its taste and flavor for generations to come. By offering traditional street food flavors in a modern and innovative way, Spice Story aims to create a brand that is synonymous with the best of street food in India.
The startup's vision is to become the leading brand in the Indian food industry by offering innovative products that cater to the tastes and preferences of the Indian palate. They want to be the go-to brand for customers looking for authentic Indian flavors and high-quality products.
Moreover, Spice Story aims to expand its reach across the country by making its products available in more stores and marketplaces. They want to reach every corner of the country and provide their customers with easy access to their products.
Spice Story is a startup that offers a unique value proposition to its customers. Their products are based on the traditional street food flavors of India, but presented in a modern and innovative way. This gives them a unique selling point (USP) that sets them apart from other food brands in the market.
One of the key USPs of Spice Story is their focus on providing the authentic flavors of street food in a convenient and easy-to-use format. Their sauces and condiments are designed to be versatile and can be used in a variety of dishes, making them a convenient option for customers who want to add a touch of Indian flavor to their meals.
Another key USP of Spice Story is their commitment to using high-quality ingredients in their products. They carefully source their ingredients to ensure that they are of the highest quality, which is reflected in the taste of their products.
Spice Story's products are also reasonably priced, making them accessible to a wide range of customers. This helps them to cater to a diverse customer base, including those who are looking for affordable yet high-quality food options.
The business model of Spice Story is focused on creating a strong brand presence in the Indian food industry by offering innovative products and expanding its reach across the country. They have adopted a multi-channel approach to distribution, selling their products through their website as well as various marketplaces like SwiggyInstamart, Zomato, Big basket, Flipkart, Amazon, and 1700 stores across five cities in India.
One of the key revenue streams for Spice Story is through the sale of their sauces and condiments. They offer a range of products that cater to different tastes and preferences, including options for those who prefer mild or spicy flavors.
Another important aspect of Spice Story's business model is their focus on customer engagement and building brand loyalty. They regularly engage with their customers through social media and other channels to gather feedback and incorporate it into their product development process.
Moreover, Spice Story has a strong distribution network in place that enables them to reach customers across the country. By partnering with major e-commerce platforms and retail stores, they have been able to expand their reach and increase their sales.
In terms of equity distribution, the founders of Spice Story hold the majority of the equity, with Soumyadeep Mukherjee holding 38%, Gayatri Gogate holding 12%, and Vibhor Rastogi holding 4%. The remaining equity is held by two other founding members and investors.
Spice Story's target market is primarily made up of consumers in India who are looking for authentic street food flavors in a convenient and easy-to-use format. Their products are designed to appeal to a wide range of consumers who enjoy Indian food, from those who prefer mild flavors to those who enjoy spicy and bold flavors.
One key segment of Spice Story's target market is young adults who are interested in trying new and innovative food products. This group is often interested in exploring different cuisines and flavors, and Spice Story's unique offerings appeal to their desire for new and exciting food experiences.
Another key segment of the target market is busy professionals who are looking for convenient and easy-to-use food products that can be incorporated into their busy schedules. Spice Story's sauces and condiments are designed to be versatile and can be used in a variety of dishes, making them a convenient option for busy professionals who want to add a touch of Indian flavor to their meals.
Additionally, families who enjoy cooking and eating together are also an important target market for Spice Story. Their products can be used in a variety of family-friendly dishes, making them a versatile and affordable option for families who enjoy exploring different cuisines.
In the financial year 2019-2020, the startup's sales were 1.5 crore rupees. By the next financial year, this had grown to 2.5 crore rupees, and in FY 2021-2022, Spice Story's sales reached 4.1 crore rupees. Last month, the company's sales were 57 lakhs rupees, and they are projected to reach Rs. 9 crores in sales.
Spice Story's founders have invested 65 lakhs of their own money into the business, and they have also raised two rounds of investment. In 2021, they raised 1.7 crore rupees at a pre-money valuation of 10.6 crores rupees. The following year, they raised 3 crore rupees at a pre-money valuation of 23 crores rupees.
Spice Story's gross merchandise value is 57 lakhs, and their net revenue is 32 lakhs rupees. Based on these numbers, it appears that the company is operating with healthy profit margins.
Spice Story appeared on Shark Tank India and pitched their business to the sharks. The owners asked for 70 lakh rupees in exchange for 2% equity in the company.
One of the sharks, Namita, made an offer of 70 lakhs for 5% equity in the company, which was a counteroffer to the owners' initial proposal. The other sharks did not make any offers and stepped out of the deal.
After considering Namita's offer, the owners of Spice Story ultimately decided to accept the deal. This means that Namita invested 70 lakhs rupees in the company in exchange for a 5% stake, which values Spice Story at 14 crores rupees.
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