Shark Tank India Season 3: This Gen Z oriented company's entrepreneur couple secures a 5-shark deal by prioritising their hometown

Shark Tank India Season 3: In the latest episode of Shark Tank India, an apparel startup managed to capture the attention of all the Sharks, eventually securing a deal that was too compelling to resist. This startup, named Littlebox, founded by Partha Kakati and Rimjim Deka from Guwahati, Assam, swiftly -a five-Shark deal. Despite initial skepticism from Aman Gupta regarding the profitability of these deals, the founders presented an offer that was irresistible to all the investors.

Entrepreneur's Journey

Littlebox, a fast-fashion direct-to-consumer brand targeting the Gen Z demographic, commenced its journey in June 2022. Since then, the company has shipped over 200,000 products across India, with a current daily shipment rate exceeding 1,200. The company operates from two key locations, with marketing, content, IT, and operations based in Guwahati and the warehouse and factory situated in Delhi.

The founders, who have been married for six years, manage the business collaboratively, splitting their time between both cities. Due to the lack of resources in Guwahati, the decision was made to establish the factory in Delhi while maintaining a presence in their hometown.

Expressing their love for their hometown, Rimjhim expressed, "We want to contribute to our hometown and inspire the youth here to pursue entrepreneurship."
She highlighted the significant shift towards startups in Assam, supported by government initiatives and incubation centers. Rimjhim herself initiated a brand in 2012, which continues to thrive despite initial challenges.

With an impressive monthly revenue of Rs 2 crore, Littlebox conducts all sales through its online platform, primarily leveraging Instagram for performance marketing. The company's estimated net revenue for the current fiscal year is around Rs 36 crore, offering a healthy EBITDA of 15 per cent. Littlebox maintains an average order value of Rs 1,250, with 22 per cent of customers being returning users.

 Entrepreneur's Ask

At the onset of their pitch, Littlebox sought a valuation of Rs 75 crore, offering 1 per cent equity in exchange for Rs 75 lakh. Aman Gupta made the first offer, proposing Rs 50 lakh for a 2 per cent equity at a valuation of Rs 25 crore, accompanied by a Rs 25 lakh loan at 12 per cent interest for two years.

Deal from all 5 Sharks

The Sharks swiftly entered a bidding war, with Namita Thapar offering Rs 30 lakh for a 0.5 per cent equity at a Rs 60 crore valuation, alongside a Rs 45 lakh debt with a Rs 2 per cent royalty clause. Vinita Singh proposed a 2 per cent equity for Rs 75 lakh, while Amit Jain offered Rs 50 lakh for a 1 per cent equity at a Rs 50 crore valuation, along with a Rs 25 lakh loan at a 12 per cent interest rate. Anupam, valuing the company at Rs 75 lakh, sought a 2 per cent royalty until his investment doubled.
 
Ultimately, all sharks agreed to a deal, with Littlebox accepting Rs 75 lakh for 2.5 per cent equity at a valuation of Rs 30 crore, despite Aman Gupta's withdrawal due to equity concerns. The founders prioritised inclusivity and value, choosing to dilute equity to accommodate all investors, resulting in a groundbreaking five-Shark deal.