professionalsaathi
Brandsdaddy AFE is a promising startup founded by Roshaan Vivekanand Mishra and Ankita Roshaan Mishra. Roshaan, who previously worked as an insurance policy salesman, had the idea of creating a product that could help extinguish fires before first responders arrived. With the help of Ankita, they brought their vision to life and created the Brandsdaddy AFE.
The Brandsdaddy AFE is an auto fire extinguisher ball that can be used by people of any age group without any training. It has a shelf life of 5 years, zero maintenance cost, and is a portable device, making it a convenient product for all types of users. The device is completely made in India, which is a source of pride for the founders.
The aim of Brandsdaddy, as a startup, is to prevent fires and avoid any mishaps by extinguishing fires before they spread. The founders' mission is to provide a reliable and effective auto fire extinguisher ball that can be used by anyone, regardless of age or training. By doing so, they hope to make a positive impact on society and save lives. Their product is used by various organizations, including the government, schools, hospitals, corporates, fire brigade stations, BSF, and even insurance companies, which shows the effectiveness and importance of their mission. Ultimately, the aim of Brandsdaddy is to create a safer environment and minimize damage caused by fires.
The USP (Unique Selling Proposition) of Brandsdaddy is its auto fire extinguisher ball, which can be used by people of any age group without any training. The product has a shelf life of 5 years, zero maintenance cost, and is a portable device, making it a convenient and effective fire extinguisher. Brandsdaddy AFE is a completely made-in-India product, which also adds to its uniqueness and highlights the founders' commitment to supporting local manufacturing. The product's effectiveness and reliability have gained recognition, and it is used by various organizations, including government bodies, schools, hospitals, corporates, fire brigade stations, BSF, and even insurance companies. By offering a reliable and effective solution for fire extinguishing that is accessible to everyone, Brandsdaddy stands out in the market and is making a positive impact on society.
The business model of Brandsdaddy is focused on the production and sale of their auto fire extinguisher ball, which is their core product. The startup follows a direct-to-consumer (D2C) model, which means they sell their product directly to their customers through their website and other online marketplaces. This allows them to maintain control over their sales and marketing efforts, as well as provide a seamless buying experience for their customers.
In addition to selling directly to consumers, Brandsdaddy also sells their product to various organizations, including government bodies, schools, hospitals, corporates, fire brigade stations, BSF, and insurance companies. This provides them with a diversified customer base and ensures a steady stream of revenue.
Brandsdaddy's business model is focused on offering a quality product that is reliable, effective, and accessible to everyone. They have invested in research and development to create a unique product that meets the needs of their customers, and they have built a reputation for quality and effectiveness in the market.
The target market for Brandsdaddy is wide and diverse, as their product, the auto fire extinguisher ball, can be used by anyone. However, they have identified several key segments that are likely to be interested in their product:
Homeowners: Homeowners are a key target market for Brandsdaddy, as fires can occur in homes due to various reasons. By having an auto fire extinguisher ball, homeowners can quickly extinguish small fires before they spread.
Small businesses: Small businesses such as restaurants, shops, and offices are also a target market for Brandsdaddy, as fires can cause significant damage to their property and disrupt their operations.
Schools and educational institutions: Schools and educational institutions have a responsibility to keep their students and staff safe. Brandsdaddy's product can help in achieving this goal by providing an effective fire extinguishing solution that is easy to use.
Hospitals and healthcare facilities: Hospitals and healthcare facilities have a higher risk of fires due to the presence of various medical equipment and electrical systems. Brandsdaddy's product can help in extinguishing fires quickly, preventing injuries and saving lives.
Government bodies: Government bodies such as fire brigade stations, BSF, and other public entities are also a target market for Brandsdaddy. These organizations need reliable and effective fire extinguishing solutions to perform their duties efficiently.
The sales of Brandsdaddy have been steadily increasing year over year. In FY 20-21, the startup generated sales of ?51 lakhs, and in FY 21-22, their annual sales increased to ?1.45 crores. This indicates a growth rate of over 180% in just one year. Their monthly sales are currently at ?12 lakhs, which is a significant increase from the previous year's monthly sales.
The startup's gross margin is at a healthy 60%, which means that after deducting the cost of goods sold, they have a substantial amount of profit to reinvest in their business. Additionally, their net margin is at 10%, which indicates that they have been able to manage their expenses well.
Brandsdaddy's B2B average selling price is between ?1000 to ?1500, while the MRP of their product is ?5000. This suggests that they are able to offer their product at a competitive price point while still maintaining a healthy profit margin.
JOURNEY IN SHARK TANKS INDIA
The founders made an initial ask of ?70 lakhs for 5% equity of the company at a valuation of ?14 crores. Namita, one of the sharks, gave an offer of ?35 lakhs for 5% equity of the company and ?35 lakhs debt at 12% interest at a valuation of ?7 crores.
In response to Namita's offer, the founders gave a counter offer of ?50 lakhs for 5% equity and ?20 lakhs debt at 12% interest rate at a valuation of ?10 crores. After some negotiations, the final deal was closed with Namita for ?35 lakhs for 5% equity and ?35 lakhs at 12% interest, with the valuation of ?7 crores.
Overall, while the founders initially asked for a higher valuation, they were able to secure a deal that was still beneficial for their company. Namita's offer was lower than what the founders initially asked for, but it was still a significant investment that would help the company grow. The founders' counter offer shows that they were willing to negotiate to reach a mutually beneficial agreement.
In the end, the final deal was able to provide Brandsdaddy with the financial resources they needed to continue growing their business while still maintaining a reasonable valuation. This demonstrates the importance of being flexible and open to negotiation when seeking investment for a startup.
At Professional Saathi, we offer a range of business consultancy services that help businesses improve their performance, achieve growth, and overcome challenges.
We Empower Businesses with Expert Consultancy Services
Copyright 2024 © Created By KTPG PROFESSIONAL SAATHI CORPORATE CONSULTANT PRIVATE LIMITED, All Rights Reserved.
Leave Your Comment