Unwind with Blue Tea: The Perfect Stress-Reducing Beverage

Blue Tea is a startup company founded by Nitesh Singh and Sunil Chandra Saha in 2018. Nitesh Singh, the COO, has an MBA in rural management, while Sunil Chandra Saha, the CEO, has an MBA in marketing from Pune. The two founders hail from different parts of India, with Sunil from Kolkata and Nitesh from Ahmedabad.

The inspiration for Blue Tea came about six years ago when the founders read about pink tea in a magazine. After researching further, they discovered that pink tea was a traditional drink in Malaysia and Thailand. This led them to develop a new product, Blue Tea, using an ancient formula of shankhpushpi flower. Blue Tea is a herbal tea brand that makes tea from flower formula and this is the first blue color ayurvedic tea to be introduced in the world.

USP OF THE PRODUCT

The company was founded in 2018 by Sunil Chandra Saha and Nitesh Singh, both MBA graduates, and it is the first blue color ayurvedic tea in the world. The product's USP is that it has no bitterness, is full of antioxidants, soothing, and caffeine-free.

One of the significant advantages of Blue Tea is its unique formula that sets it apart from other types of tea. The shankhpushpi flower used in the tea is known for its medicinal properties, including reducing stress and anxiety. The tea has become popular for its ability to promote relaxation, reduce stress, and improve overall wellness.

Another significant benefit of Blue Tea is that it is caffeine-free, making it a healthier alternative to other types of tea. The lack of caffeine in Blue Tea means that people who are sensitive to caffeine can still enjoy a delicious, soothing cup of tea without the unwanted side effects.

The company has already sold its products in India and 12 other countries worldwide, with a 60% sales percentage in the US, making it the most popular selling country for the brand. With over 50 flavors in India and 35 in the US, Blue Tea has a wide range of options for its customers to choose from. The company's products have garnered a 4.3-star rating from 8500 reviews, indicating that customers are pleased with the quality and taste of the tea.

Blue Tea's USP is its herbal formula, which includes shankhpushpi, its lack of bitterness, full of antioxidants, soothing properties, and being caffeine-free. These unique features have made Blue Tea a popular choice for health-conscious consumers looking for a tasty, healthy beverage option. With its vision to become the number one blue tea brand in the world, Blue Tea is a startup to keep an eye on.

BUSINESS MODEL AND TARGET MARKET

The company's target market is health-conscious individuals who are looking for a healthier alternative to regular tea and green tea. Blue Tea's products are caffeine-free, full of antioxidants, and have a soothing effect, making them an attractive option for people who are looking to reduce stress levels and improve their overall health.

The company has 50 flavors of blue tea in India and 35 flavors in the US. The product has a 4.3-star rating and over 8,500 reviews. The company has sold its products all over India and in about 12 countries worldwide, with 60% of its sales coming from the US, which is its most successful market.

The pricing strategy of Blue Tea is focused on creating a premium brand image. The price of Blue Tea is INR 800 per 100 grams, which is more expensive than green tea (INR 200 per 100 grams) and regular tea (INR 100 per 100 grams). The company's business model is centered around e-commerce and online sales, allowing it to reach a wider audience and expand its customer base.

Blue Tea has a unique business model that targets health-conscious individuals who are looking for a healthier alternative to regular tea and green tea. The company's premium pricing strategy, e-commerce focus, and innovative product offerings have enabled it to establish itself as a leading player in the herbal tea market. With its vision to become the number one blue tea brand in the world, Blue Tea is well-positioned for continued growth and success in the future.

SALES AND REVENUE

Blue Tea's monthly sales are currently at 1.5 crore rupees. This translates to approximately 210,000 USD. Looking at their financial performance over the past few years, it is clear that Blue Tea has experienced rapid growth. In FY 19-20, their sales were 10 lakhs rupees, which is equivalent to approximately 14,000 USD. By FY 20-21, their sales had grown to 2 crore rupees or approximately 280,000 USD. In FY 21-22, their sales soared to 10 crore rupees or approximately 1.4 million USD. Furthermore, the projected sales for the end of the current financial year are 30 crore rupees or approximately 4.2 million USD.

It is worth noting that Blue Tea's net margin is 19%. This is a healthy margin that suggests the company has a good handle on its costs and is able to generate a profit on each unit sold.

Blue Tea's impressive sales and revenue growth suggest that the company is doing well and has the potential for further success in the future. With its unique product offering and a growing customer base, Blue Tea is well-positioned to continue expanding its business and market share in the herbal tea industry.

FUNDING IN SHARK TANKS INDIA

The owner of Blue Tea pitched for an investment of ?75 lakhs for 1% equity of the company at the valuation of ?75 crores.

During the pitch, Aman offered 15 lakhs for 5% equity and 60 lakhs debt at 12% interest. However, the pitcher countered the offer with 50 lakhs for 2% equity and 25 lakhs debt at 12% interest. Aman then made a counter offer of 50 lakhs for 3% equity and 25 lakhs debt at 12% interest.

Finally, Blue Tea accepted Aman's counter offer of 50 lakhs for 3% equity and 25 lakhs debt at 12% interest. This implies that Blue Tea is now valued at ?16.67 crores. This funding would help the company to grow and expand its business further. Aman's expertise and network would also help Blue Tea to scale up their production and increase their customer base. Overall, this deal seems to be a win-win situation for both the startup and the investor.