Innovative Smartwatch for Kids: Watchout Wearables Offers a Unique

Watchout Wearables is a startup founded by Abhishek Baheti, a chemical engineer and gold medalist from Sardar Patel University who also holds an MBA in sales and marketing from SCMHRD, Pune. Prior to founding Watchout Wearables, Abhishek had worked with Essar Steel and Pedalite industry.

Watchout Wearables is a brand that focuses on making smartwatches for kids, with a focus on safety, connectivity, and curiosity. The smartwatches are designed to offer parents a way to keep their kids safe while also providing them with a device that can keep them connected to their children.

AIM & USP OF THE STARTUP

The aim of Watchout Wearables' smartwatch for kids is to provide parents with a device that offers safety, connectivity, and curiosity for their children. The smartwatch is designed to help parents keep track of their child's location, provide a way for parents and children to stay connected through video and audio calls, and also offers an object detection scanner to promote learning and curiosity.

The unique selling proposition (USP) of Watchout Wearables' smartwatch is its combination of safety and connectivity features, along with the object detection scanner for learning. The watch has a SIM slot, which makes it an independent device that can function without the need for a phone, unlike other watches in the market. It also has an anti-take-off sensor, elevated edges to prevent screen damage, and an SOS button for emergency situations. The object detection scanner provides a fun way for children to learn and satisfy their curiosity.

BUSINESS MODEL & TARGET MARKET

Watchout Wearables' business model is based on selling smartwatches for kids directly to consumers through their website and other e-commerce platforms. They also have a social media presence to raise awareness about their product and engage with potential customers. The company has a cost-effective approach to production, which allows them to offer their product at a competitive price.

The target market for Watchout Wearables' smartwatch is parents with children between the ages of 5 and 12 who want to keep their children safe and connected. The product is especially suitable for parents who want to keep track of their child's location and have a way to communicate with them at any time. Additionally, parents who are interested in providing their children with a fun and interactive way to learn will also find the product appealing.

The company is targeting parents who are looking for a reliable and affordable smartwatch for their kids, as well as those who are interested in innovative technology for their children's learning and development. They are also targeting parents who are concerned about the safety of their children and want to ensure that they are always reachable and can be located easily in case of an emergency.

SALES AND REVENUE

the selling price of each Watchout Wearables' smartwatch for kids is 10,000 INR. The estimated total addressable market for the product is around 100 crores INR.

In FY 21 to 22, the startup's sales were 1.1 crores INR, and in FY 22 to 23 years to date, the sales have reached 1.4 crores INR. The sales in August 2022 were 25 lakhs INR, which is an increase from the previous month's sales of 5 lakhs INR in July 2022.

Watchout Wearables has an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of 35%, which is a healthy profit margin. The net margin for the company is 25%, indicating that they are generating a significant amount of profit from their sales.

The projected sales for September 2022 are 30 lakhs INR, and for October 2022, the projected sales are between 30 to 40 lakhs INR. The startup makes 500 units per month, indicating that they have a sustainable production capacity to meet the demand for their product.

JOURNEY IN SHARK TANKS INDIA

Watchout Wearables was featured on Shark Tank India, where the founder Abhishek Baheti made an ask of 2 crores INR for 5% equity in the company at a valuation of 40 crores INR.

During the show, Veenita and Anupam offered 1 crore INR for 10% equity at a valuation of 10 crores INR and 1 crore debt at 15% interest rate. Abhishek countered with an offer of 1 crore INR for 5% equity. However, he later gave a counteroffer of 1 crore INR for 7.5% equity and 1 crore debt at 15% interest rate.

The final deal for Watchout Wearables was closed with Anupam and Veenita, who agreed to invest 1 crore INR for 10% equity in the company and 1 crore INR debt at a 15% interest rate. This meant that Watchout Wearables was valued at 10 crores INR after the deal.

Overall, appearing on Shark Tank India provided a platform for Watchout Wearables to showcase its innovative product and attract investors. The final deal with Anupam and Veenita allowed the startup to secure the necessary funding to expand its operations and reach a wider customer base.