Shark Tank India: Rare Planet's Successful Funding Journey

Rare Planet is a startup that was founded by Ranodeep Saha and Vijay Kumar TR, with a mission to provide a platform for Indian artists to showcase their unique artwork and culture to the world. Ranodeep, one of the co-founders, started painting earthen potteries in 2015 to fund his engineering studies, and his entrepreneurial spirit eventually led him to co-found Rare Planet.

AIM

The aim of Rare Planet is to provide a platform for Indian artists to showcase their unique artwork and culture to the world. India is known for its diverse art and culture, but most of these artworks don't reach the customers at the right place and the right price. Rare Planet aims to bridge this gap and enable artists to showcase their work directly to customers.

The startup's vision is to link with all the artists in India to make them self-dependent and move forward on their own. They want to empower the artists by enabling them to showcase their work and sell it directly to customers, which will help them grow their business and support their families.

Rare Planet's mission is not just about promoting Indian art and culture, but also about creating a sustainable ecosystem for the artists. By providing a platform for artists to showcase their work, Rare Planet aims to help them become self-sufficient and create a sustainable livelihood for themselves.

BUSINESS MODEL

Rare Planet's business model is centered around providing a platform for Indian artists to showcase their unique artwork and culture to the world. The startup works with more than 10,000 artists, and their vision is to link with all the artists in India to make them self-dependent and move forward on their own.

Rare Planet sources products directly from the artists and sells them through four airports and e-commerce platforms. The startup offers a wide range of products including terracotta, ceramic, copper, and studio pottery products. They have a rigorous selection process for artists, ensuring that they showcase only the best quality and unique artwork.

Rare Planet's revenue model is based on a commission-based system, where they take a percentage of the sales made through their platform. The commission varies based on the product and the artist's agreement. The startup also generates revenue through partnerships and collaborations with various organizations and brands.

The startup's business model is focused on empowering Indian artists and creating a sustainable ecosystem for them. By providing a platform for artists to showcase their work and connecting them with customers directly, Rare Planet is helping them to become self-sufficient and grow their business. The startup's unique business model has helped them to establish a strong brand presence in the market and gain a loyal customer base.

TARGET MARKET

Rare Planet's target market is primarily people who appreciate and value Indian art and culture. The startup's platform showcases authentic Indian art from different regions across the country, and their products include terracotta, ceramic, copper, and studio pottery products.

The startup's target market includes both domestic and international customers who are interested in purchasing unique Indian artwork directly from the artists. Their products appeal to people who appreciate handcrafted products and are interested in learning about Indian culture.

Rare Planet's products cater to a wide range of customers, including art collectors, interior designers, and people who are looking for unique gifts or home decor items. The startup's products are also suitable for people who are interested in sustainable and ethical products, as they source their products directly from the artists.

The startup has a strong online presence and sells its products through e-commerce platforms, which makes it accessible to customers across the globe. They have also established their presence in four airports, making their products accessible to travelers who are looking for unique souvenirs.

SALES AND REVENUE

Rare Planet has a gross profit of approximately Rs. 100 lakhs, with Rs. 78 lakhs coming from offline sales and Rs. 22 lakhs from online sales. They sell a variety of products with a total of 6,000 SKUs, including copper bottles which are priced at around Rs. 1799 each.

The startup has chosen to retail their products in four airports, which has likely helped to increase their sales. Additionally, they sell their products both online and offline, giving customers multiple options to purchase their products.

Rare Planet's monthly revenue was around 4 to 5 lakhs rupees per month, which is a strong indication of their growing popularity and customer base. They have raised a total of Rs. 3.75 crore rupees in investment at a valuation of 6.5 crore rupees.

The fact that Rare Planet was able to raise a second round of investment of Rs. 2.5 crore rupees in August 2020 indicates that investors are confident in their business model and growth potential.

FUNDING IN SHARK TANKS INDIA

The co-founders of Rare Planet appeared on Shark Tank India and asked for an investment of 65 lakhs for 1% equity in their company. However, they received a counter offer from Namita, who offered 65 lakhs for 5% equity.

The co-founders of Rare Planet then gave a counter offer of 2 crore rupees for 5% equity, which they later revised to 65 lakhs for 2.5 to 3% equity. Namita then countered their offer with 65 lakhs for 4% equity.

After some negotiation, the final deal was closed at 65 lakhs for 3% equity. This means that Namita agreed to invest 65 lakhs in Rare Planet in exchange for a 3% stake in the company.