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Torchit is a startup that aims to provide a solution to the challenges faced by the visually impaired individuals in navigating their surroundings. The product developed by Torchit is a smart wearable device that uses SONAR Technology, based on sound, to alert the visually impaired about obstacles in their path through different modes of vibration. The product is designed to be highly effective, with a success rate of 99.7% as proven through lab testing. The mission of Torchit is to empower the visually impaired by enhancing their mobility and independence, thereby enabling them to lead a more confident and self-reliant life.
One of the key factors that sets Torchit apart from its competitors is its unique business model. Torchit's training program is conducted by visually impaired individuals themselves, who have undergone extensive training to become trainers. This not only provides livelihood opportunities for the visually impaired, but also ensures that the training is delivered in a manner that is tailored to the needs and challenges faced by the visually impaired community. This innovative approach of "training by the visually impaired, for the visually impaired" has garnered widespread recognition and support for Torchit, making it a standout player in the assistive technology space.
Torchit operates on a unique business model that combines generating sales through a distribution network and providing training by visually impaired individuals to other visually impaired individuals. This innovative approach not only empowers visually impaired individuals by providing them with employment opportunities but also creates a sense of community and support within the startup.
Torchit generates revenue through direct customer sales and partnerships with NGOs. The direct customer sales are made through an online platform and through a network of distributors across India and Africa. Torchit also partners with NGOs that work with visually impaired individuals, providing them with the necessary training and support to become distributors of the product. This symbiotic relationship benefits both parties, as it allows Torchit to reach a larger customer base while providing employment and empowerment opportunities to visually impaired individuals.
Torchit's primary target market consists of visually impaired individuals who require assistance in navigating their surroundings. In India alone, it is estimated that there are around 7 crore (70 million) visually impaired people, and Torchit aims to impact 10 lakh (1 million) users in the next 3 years. This represents a significant market potential for the startup.
In addition to direct customers, Torchit also targets NGOs that work with visually impaired individuals. These NGOs can act as distribution partners, reaching out to their networks and providing Torchit's product to their beneficiaries. This segment represents around 40% of the target market and provides a valuable avenue for reaching a wider audience.
In FY20-21, Torchit reported a revenue of 1,10,00,000 INR (11 million INR) with a profit margin of 30 lakhs (3 million INR). This initial success was a result of the company's efforts in product development, market penetration, and partnerships with NGOs and distribution networks.
In FY21-22, Torchit's revenue grew exponentially to 2,60,00,000 INR (26 million INR), reflecting a significant increase in sales. This remarkable growth can be attributed to the increased awareness and adoption of Torchit's product by visually impaired individuals, NGOs, and other distribution channels. The positive impact of the product on the lives of visually impaired individuals has further boosted its sales and market presence.
Furthermore, Torchit has secured future orders of 1,00,000 pieces from a private organization worth 18,60,000 INR (1.86 million INR), indicating the growing traction and potential for further growth in the coming years. This demonstrates the increasing demand for Torchit's product and the scalability of its business model.
Torchit has successfully secured funding in the past to support its growth and expansion plans. In 2019, the company's valuation soared from 2 Cr (20 million INR) to 20 Cr (200 million INR) after securing an investment of 50 lakhs (5 million INR) from an angel investor in exchange for a 2.5% stake in the company. This early-stage funding has provided the necessary capital for Torchit to invest in research and development, marketing, and building its distribution network.
Torchit's journey on Shark Tanks India was a mixed bag of emotions. While the product and the business model impressed the sharks, the negotiations did not result in a deal. Vineeta, one of the sharks, was not in support of funding from non-governmental organizations (NGOs) and stepped out of the deal. However, Namita and Aman, the other two sharks, discussed the deal privately with Hunny and advised him not to dilute his equity.
Anupam, another shark, showed interest in the direct customer business and made an initial offer of 50,00,000 INR for a 2.5% stake in the company along with 25 lakhs in debt. However, Hunny negotiated the offer, asking for 50,00,000 INR for a 1% stake and 25 lakhs in debt. Anupam disagreed with the counteroffer, and ultimately, no deal was made.
Although Torchit did not secure funding from Shark Tanks India, the exposure and feedback received from the show were valuable.
Torchit's future aim is to impact 1 million users within the next 3 years by strengthening its distribution network, establishing strategic partnerships, and expanding its market reach. The company plans to launch its next offering, "Jyoti," a smart wearable glass for the visually impaired, and continue investing in research and development to stay at the forefront of technological advancements in the assistive technology space. Torchit's focus is not only on financial success but also on creating a positive social impact by empowering visually impaired individuals with affordable and effective products to enhance their independence, mobility, and overall quality of life.
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