Shark Tank India 4: Tikitoro founder Prasanna invests family's savings; opts for Namita over Vineeta

Shark Tank India 4: Prasanna Vasanadu, the founder of Tikitoro, stunned the Sharks on Shark Tank India 4 by revealing that she invested ?14 crore, including her family's entire savings, into her skincare and haircare brand. Tikitoro, launched in December 2021, has already achieved ?8.5 crore in year-to-date sales despite facing significant losses, with an EBITDA of -20% for FY24-25 (till October). Prasanna pitched for ?25 lakh in exchange for 0.5% equity at a ?50 crore valuation. After receiving multiple offers, she chose Namita Thapar's deal of ?25 lakh for 1% equity and a 0.5% royalty, rejecting Vineeta Singh¡¯s offer of ?25 lakh for 3% equity.

Shark Tank India 4: Tikitoro Founder¡¯s Background and Vision

Prasanna, an engineer with an MBA in Marketing from Symbiosis Pune, founded Tikitoro with a vision to create safe, scientifically backed products for children and teens. Her dedication to the brand is evident, as she has invested her entire savings into the business.

Tikitoro: A Skincare Brand Backed by Science

Tikitoro is a dermatologically tested and pediatrician-approved skincare and haircare brand for children and teens. Launched in December 2021, the brand offers Tikitoro Kids for ages 4¨C10 and Tikitoro Teens for ages 11¨C16. All products have been certified safe by an international organization and their claims are validated by third-party labs. The products maintain a pH balance of 5.5, making them suitable for sensitive skin.

The brand¡¯s best-selling product is its kids¡¯ shampoo, with other offerings like body lotion priced at ?740, body wash at ?640, and shampoo at ?640. Tikitoro products are available on their website and various e-commerce platforms.

Tikitoro¡¯s Impressive Sales Numbers

Tikitoro has shown impressive revenue growth despite financial challenges. In its first three months, the brand earned ?6 lakhs, followed by ?2 crore in its second year and ?8.2 crore in FY2024. By October of FY24-25, Tikitoro had already crossed ?8.5 crore in sales, with a projected revenue of ?17 crore for the full year. The Sharks praised the brand's sales performance.

However, when asked by Viraj Bahl about the company¡¯s losses, Prasanna revealed that Tikitoro had an EBITDA of -49% in FY23-24, which left the Sharks surprised. She added that the EBITDA for FY24-25 (till October) had improved to -20%. Prasanna shared that she has fully bootstrapped the business, investing ?8 crore of personal and family savings, alongside a bank overdraft of ?2 crore.

Sharks Highlight Financial Challenges

During her pitch, Prasanna asked for ?25 lakh for 0.5% equity, valuing Tikitoro at ?50 crore. However, Sharks raised concerns about the business¡¯s financial sustainability. Viraj Bahl called the business ¡°unfundable¡± due to its high losses and large inventory investments of ?6.5 crore. Vineeta Singh also pointed out the financial risk of maintaining a 12-month inventory, describing it as ¡°suicidal.¡±

Peyush Bansal advised Prasanna to focus on accountability and run her business with fewer resources, stating, ¡°Turn this around with ?2 crores and then raise an investment.¡±

Namita Thapar¡¯s Winning Offer

Despite the challenges, Prasanna received multiple offers from the Sharks.

1. Namita Thapar offered ?25 lakh for 1% equity and a 0.5% royalty until the investment amount is recovered. She added conditions:

• Achieving ?17 crore in sales in FY24-25.
• Starting the royalty only after the company becomes profitable.

2. Vineeta Singh offered ?25 lakh for 3% equity, with a condition that no capital would be raised for the next two years.

After careful consideration, Prasanna chose Namita¡¯s deal, citing her belief in Namita¡¯s guidance and discipline to help refine Tikitoro¡¯s business operations.

Namita called Prasanna the ¡°turnaround success story¡± of the season, while Anupam Mittal and Peyush Bansal applauded her determination. With Namita¡¯s support and guidance, Tikitoro now aims to achieve profitability and sustain its rapid growth, making it a potential success story in India¡¯s competitive skincare market.