Freakins, a fast fashion brand for Indian women, presented their pitch on Shark Tank India S2. The founders, Puneet Sehgal and Shaan Shah hoped to secure a deal with the sharks. In this article, we'll dive deeper into Freakins, their pitch, and the outcome of their appearance on the show.
Freakins Founders
Puneet Sehgal, the CEO of Freakins, is from Mumbai, while Shaan Shah, the marketing operations and CMO, hails from Ahmedabad. Shaan comes from a textile business background and, together with his uncle Sachin, started collecting the same fabric and raw materials to make products for themselves.
Puneet was the former chief operation manager of Nykaa, and he and Shaan decided to create something bigger together.
More About Freakins
Denim is a highly popular fashion item, but the denim sector has not been able to provide clothes according to body shapes, weather, and the needs of people. The market is also serving more men than women. To solve this problem, Freakins was founded.
They launched as a denim brand that releases different styles of products each week for women of every body shape and size. They are a GenZ-focused brand with over 35 categories and 1500 styles.
Over the past three years, they have fulfilled 2.5 lakh orders, and their products are available on their own website and marketplaces like Amazon, Myntra, Nykaa, and Meesho. Puneet holds 54% equity, Shaan holds 36%, Shaan's uncle has 5%, and the remaining 5% is with ESOPs.
Ask by the Owner Freakins
The owners of Freakins asked for 70 lakhs rupees for 1% equity in the company.
Freakins Sales and Revenue
In the financial year 19-20, sales were 90 lakhs rupees, in 20-21 sales were 6.7 crore rupees, and in 21-22 sales were 10.4 crore rupees. The average monthly net sales are 90 lakhs rupees.
In the years 19-20, they broke even. In the year 20-21, they incurred a loss of 2.1 crore rupees, and in the years 21-22, the loss was 3.8 crore rupees. In the last six months of 22-23, they incurred a loss of 60 lakhs.
The gross margin is 63%. In September '22, the net sales were 1.05 crore rupees, and the marketing spend was 12 lakhs rupees.
Freakins Offers and counter offers
The Freakins founders pitched their business to the sharks, hoping to secure an investment. Vineeta made an offer of 50 lakhs rupees for 2.5% equity and 20 lakhs rupees debt at a 12% interest rate, with the condition that this investment would be part of a bigger investment round. The Freakins founders counter offered 50 lakhs for 2% equity and 20 lakhs rupees debt at 12% interest.
Freakins Final Deal
The deal was finalized with Vineeta for 50 lakhs rupees in exchange for 2.5% equity in the company. The founders were pleased with the outcome and excited to move forward with their business plans.
Conclusion
Freakins, a fast fashion denim brand for Indian women, made a successful pitch on Shark Tank India Season 2 Episode 33 and secured a deal with Vineeta. The founders, Puneet Sehgal and Shaan Shah have shown impressive growth in sales and a dedication to providing a wide range of styles and sizes for women.
The investment from Vineeta will likely help the company continue to expand and succeed in the competitive fashion market. We look forward to seeing the future success of Freakins and the impact they make on the fashion industry in India.
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