Shark Tank India Season 3: Starting business with Rs 50K after his fathers NSE-listed company went bankrupt, this Mumbai entrepreneur gets 4-Shark deal
Raunit Gambhir of Mumbai started his startup Chefling in August 2020 with a Rs 50,000 loan from his mother after his fathers NSE-listed company, Artedz Fabs Limited, went bankrupt in the same year. The startup manufacturing ready-to-cook DIY kits launched during the coronavirus pandemic garnered attention during a Shark Tank India Season 3 episode, when one-man-army Raunit got a Rs 40 lakh 4-Shark deal. Read the captivating story of the 28-year-old whose family fortunes lapsed from glory to dust, but who wants to regain the lost sheen through his ambitious startup.
Shark Tank India Season 3: Mumbai-based new-age entrepreneur Raunit Gambhir's father once owned a NSE-listed company, Artedz Fabs Limited, which went bankrupt in August 2020. The collapse left the family in tatters, and Raunit penniless, who had dreams of reviving his family business after completing his Bachelor of Business degree from Amity University, Mumbai. With his dreams shattered and family finances hitting a roadblock, the young Raunit had nothing but to take a loan of Rs 50,000 from his mother to begin a startup called Chefling, which provided ready-to-cook meal kits. Finding it a little hard to start a business with that meagre amount, Gambhir took Rs 1 lakh more from his mother.
In a do-or-die situation when stakes were high for Gambhir, the only option the Mumbaikar was left with was to turn the tides in his favour.
Cut to the present, the startup began with meagre finances shot to national fame when Raunit's Chefling got a 4-Shark deal in Shark Tank India Season 3, where four Sharks- Amit Jain, Azhar Iqbal, Namita Thapar and Piyush Bansal- purchased a 16 per cent stake in Chefling for Rs 40 lakh at a valuation of Rs 2.5 crore.
Life came full circle for the 28-year-old Bhiwandi boy Raunit, whose journey started with Rs 50,000 and has reached an important milestone of Rs 2.50 crore startup valuation in just a little over three years.
Or has his journey to prominence just begun? Know the story of the entrepreneur.
Shark Tank India 3: What does Raunit's startup, Chefling, do?
Chefling manufactures ready-to-cook do-it-yourself (DIY) kits, which have the ingredients of global dishes.
The kits include everything from Japan's famous sushi and mochi to Mexico's tacos, enchiladas, and Italian lasagna.
The kits also include instructions for how to prepare these foods.
Since food preservation is a major factor in these types of meal kits, Raunit focuses on foods that don't have vegetables or meat.
But this also gives his business an X-factor since he delivers his product all over India.
The kits contain dishes that you eat only in restaurants. Having such dishes in his kits also strengthens his resolve to 'bring the restaurant home'.
Raunit is a one-man army and has outsourced his entire work. His in-house team consists of 2 packers and an accountant.
Shark Tank India 3: Where did the idea of Chefling come from?
A lot of good ideas come in private when you are cut off from the outside world.
Raunit found that opportunity during the time of the coronavirus pandemic, when everyone was locked at home during the first lockdown.
Restaurants were closed, and there were no avenues where he could hang out with his friends.
He visited a friend's home, and the friend said that he felt like eating sushi. He thought of making it at home.
Then they went to a nearby international premium store and brought ingredients for making sushi from there.
Like all good things, they come at a price. Their experiment with bringing sushi ingredients from outside cost them Rs 8,000.
But the event triggered the idea in Raunit's mind that would change his destiny.
He thought he should have begun the business of ready-to-cook meals.
It was time to materialise the idea, and he soon set up Chefling.
Ever since, the business he set up with Rs 50000 has generated a revenue of Rs 60 lakh.
Raunit says that when he launched the business with only 150 kits, all the kits were sold on the very first day.
Till now, this startup has sold more than 5000 kits.
Shark Tank India 3: What is the business model of Chefling?
At present, Chefling is focusing on B2C or D2C. The startup gets kit orders through Instagram and its website and then delivers the orders.
The company is earning money only by selling products, but in the future, it aims to start subscription plans.
The company prepares nine types of kits, and has plans to launch six new varieties focused on Indian grains for export.
Raunit says that he will keep the price of the kit in India at around Rs 100, in which 3–4 people will be able to eat food.
Shark Tank India 3: What are business challenges?
For every startup, manufacturing a cost-effective product is a big problem, and so is the case with Chefling.
Though its standard-sized kit has food for 3–4 people, its cost is around Rs 1200.
The kit that caters to two people and has only the essential ingredients of a food is priced at around Rs 499.
Shark Tank India 3: What is plan Chefling's future plan?
Schefling wants to spread its wings to the international market in the coming few months.
His main target will be the Indians settled abroad who yearn for Indian taste.
Since they don't get ingredients such as spices for Indian dishes in a foreign land, the startup wants to fill that void by providing Indian meal kits.
Raunit says Chefling doesn't want to restrict itself to meal kits and aspires to enter into the beverage segment.
He is trying to make a kit with the help of which people will be able to make beer at home.
People have to mix the required mixture with water and the liquid given in the kit, and the beer will be ready in a few days.
The price for 5 litres will be around Rs 1200, and after that, the refill will cost only Rs 200–250.
Shark Tank India 3: How did Raunit raise his funding?
Sheffling did a business of Rs 20 lakh last year and expects a business of Rs 40–45 lakh this year.
The startup that was bootstrapped raised its first round of fuding in Shark Tank India 3.
Raunit had asked for an investment of Rs 40 lakh in exchange for a 10 per cent stake in his business.
He got this offer first for 20 per cent, then 15 per cent and then 12 per cent.
In the end, Raunit gave a 16 per cent stake in his business in exchange for Rs 40 lakh at a valuation of Rs 2.5 crore.
With the Indian funding in his pocket, Raunit says that he has also applied for an international grant.
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