Dobiee: Bringing Back the Joy of Childhood with Delicious Candies

Dobiee is a confectionery brand that was founded in 2001 by Arjun Mukesh Dharamshi and Mukesh Dharamshi, both from Mumbai. Mukesh used to work in a bus tempo and later went to a candy factory out of curiosity to find out how candies are made. Arjun is a mechanical engineer. The aim of the startup is to bring back the joy of childhood memories in the form of candies that people have almost forgotten. They want to make Dobiee the king of candy and take it globally.

USP of Dobiee

Dobiee's USP is its focus on bringing back the joy and fond memories of childhood in the form of candies. The founders, Arjun Mukesh Dharamshi and Mukesh Dharamshi, saw that people were increasingly forgetting about these nostalgic candies, and sought to bring them back into the mainstream.

Dobiee differentiates itself from other confectionery brands by making double-flavored candies such as pineapple and coconut, strawberry with lemon, and pink guava with green guava. These flavors are not commonly found in other candy brands, which makes Dobiee's products unique and distinctive. The company also offers toy candies, which come with two or three toys inside the packet. This is another USP that sets Dobiee apart from other candy brands, as it adds an element of surprise and delight for the customers.

In addition to its unique product offerings, Dobiee has also established a strong brand identity that resonates with its target market. The company's vision to make Dobiee the "king of candy" and take it global has helped it to build a loyal customer base. The founders' passion for the product is evident in the way they talk about it, and this has helped to create a brand image that is both authentic and relatable.

Business Model & Target Market of Dobiee

Dobiee makes various types of candies in its in-house manufacturing unit. The company sells its products through a network of distributors, stockists, and CNF. The MRP of a packet is 100 rupees, the trade margin is 55 rupees, the price to distributors is 45 rupees, the COGS is 22 rupees, and the gross margin is 23 rupees. The company's factory capacity utilization is 15 to 20%. Dobiee is currently available in 50,000 offline outlets across 9 states in India and is going to be available online through Amazon from next month.

The target market of Dobiee is people who want to relive their childhood memories with candies. The Indian market size of candies is 20,000 crores, and Dobiee wants to capture a significant market share of it.

Gross Sales of Dobiee

Dobiee has sold over 9 lakh packets of candies to date, with lifetime sales exceeding 4 crores. In the last month, the company recorded sales of 32 lakhs, which is an impressive figure for a confectionery startup.

To achieve these sales numbers, Dobiee has adopted a multi-pronged approach. The company sells its products through a network of distributors, stockists, and CNF agents. Its candies are available in different packaging sizes, including packets that come with two or three toys inside. Dobiee has also expanded its reach by making its products available in 50,000 offline outlets across 9 states in India. This has helped the company to establish a strong presence in the market and reach a large customer base.

In terms of pricing, Dobiee sells its products at an MRP of 100 rupees per packet. The trade margin for distributors is 55 rupees, while the price to distributors is 45 rupees. The COGS (Cost of Goods Sold) for the company is 22 rupees per packet, leaving a gross margin of 23 rupees. This pricing strategy has allowed Dobiee to remain competitive while maintaining profitability.

Journey on Shark Tanks India

Dobiee founders asked for ?72 lakhs in exchange for 2% equity at the valuation of 36 crores. Amit gave an offer of 40 lakhs for 5% equity of the company at the valuation of 8 crores and 32 lakhs debt at 11% interest rate. Anupam gave an offer of 72 lakhs for 11% equity of the company at a valuation of 6.55 crores. Founders gave an offer of 72 lakhs for 5% equity of the company. Anupam revised his offer for 72 lakhs for 9% equity. Amit revised his offer for 72 lakhs for 7% equity. Amit and Anupam jointly gave an offer of 72 lakh for 10% equity. Founders gave an offer of 72 lakhs for 6% equity of the company. The final deal was closed with Amit for 72 lakhs at 6.5% equity of the company at the valuation of 11.07 crores.