Shark Tank Pakistan Episode 11 showcased an exciting array of entrepreneurial talent, highlighting the innovation and ambition of Pakistani startups. From tech-driven solutions to niche marketplaces, the pitches represented diverse industries and business models.
While some entrepreneurs impressed the sharks with their vision and strategy, others faced tough scrutiny overvaluations and scalability. The episode offered valuable lessons for aspiring entrepreneurs, particularly about understanding market potential, realistic valuation, and preparing for tough investor questions.
Key Takeaways
Episode 11 was a testament to the entrepreneurial spirit thriving in Pakistan. Here are the key takeaways:
- Valuation Matters: Unrealistic valuations can deter even the most interested investors, as seen in multiple pitches this episode.
- Clear Market Strategy: Startups with a focused approach, like Mentor School, earned shark interest despite high equity demands.
- Product and Profitability: A strong product paired with steady profitability, as demonstrated by Arch, can attract significant investment.
- Pitch Preparation: Entrepreneurs need to back their claims with solid data and clear answers to investor concerns.
- Know Your Audience: Businesses like Biz B, targeting a specific demographic (women), highlight the importance of niche markets in gaining traction.
Shark Tank Pakistan Episode 11: First Pitch Overview
In Episode 11 of Shark Tank Pakistan, the first pitch was presented by a dynamic couple: Dr. Shaista, a physiotherapist and the CEO and founder of Fit Her, and Hannan Iqbal, the CTO of the company. Dr. Shaista shared an emotional story behind the inspiration for their startup.
Her mother, who suffered from hormonal imbalance, was eventually diagnosed with Bullous Pemphigoid (BP), a rare autoimmune disorder that affects approximately 200,000 people worldwide. This condition causes painful blisters all over the body and restricts sufferers from exposure to sunlight for nearly five months in a year.
Dr. Shaista highlighted a startling statistic: 52% of women in Pakistan experience hormonal imbalances, which are significant contributors to infertility, diabetes, obesity, and autoimmune disorders. With over four and a half years of experience in the field, she and Hannan have been working tirelessly through Fit Her to address these issues and empower women to take control of their health.
Dr. Shaista and Hannan Iqbal, the team behind Fit Her, pitched their business on Shark Tank Pakistan seeking an investment of 50 lacs for 8% equity to fuel the growth of their startup in Pakistan.
Business Performance and Projections
- Revenue history:
- April 2022 (Launch): Closed with 25 lacs in revenue.
- 2023: Closed at 40 lacs.
- 2024 (Projection): Expected to reach 80-90 lacs with the launch of their app.
- Net profit margin: 30%.
- Subscriber base: 1,200 subscribers.
- Monthly app revenue projection: 10 lacs.
Sharks’ Responses
Upon hearing the financial details, Alena and Usman stepped out, citing concerns about the current revenue figures.
Offers from the Sharks:
- Junaid Iqbal:
- Initial offer: 50 lacs for 15% equity and a 10% royalty.
- Final offer (after negotiation): 50 lacs for 20% equity and a 10% royalty.
- Rabeel Warraich:
- Initial offer: 50 lacs for 35% equity.
- Final offer (after negotiation): 50 lacs for 25% equity.
- Romanna Dad joined Rabeel in his offer.
The Outcome
Dr. Shaista countered Rabeel’s final offer with a proposal of 12% equity, which was not accepted. Unfortunately, no deal was reached, as neither the sharks nor the entrepreneurs found a mutually agreeable arrangement.
Shark Tank Pakistan Episode 11: Second Pitch Details
The second pitch of Episode 11 featured a tech-oriented app for schools called Mentor School, presented by two entrepreneurs, Nauman and Saba. This innovative platform offers a comprehensive school operating system with three dedicated apps:
- Principal App – For managing school operations.
- Teacher App – For tracking academic and administrative tasks.
- Parent-Student App – For communication and updates.
Business Model and Performance
- Pricing: 20 PKR per student per month.
- Revenue history: In their first three months, the app generated 1.5 lacs per month.
- Investment: A total of 6 crores has been invested into the project since its inception.
- Ownership structure:
- Nauman: 50%.
- Saba: 10%.
- Other two partners: 40%.
- Target market:
- Pakistan: 200,000 private schools targeted.
- 2024 goal: Onboard 1,000 schools.
- 2025 projection: Expand to 20,000 schools, expecting revenue of 1.5 billion PKR in two years.
Sharks’ Responses and Offers
The original ask was 2 crores for 5% equity, which led to several offers and counter-offers:
- Rabeel Warraich:
- Initial offer: 2 crores for 40% equity and 5% royalty.
- Aleena:
- Joint offer with Rabeel: 2 crores (1 crore each) for 20% equity each (totaling 40%) and 5% royalty.
Nauman requested a call with his team before responding.
Final Negotiations
- Counter-offer by Nauman: 2 crores for 20% equity and 5% royalty.
- Aleena’s final offer: 2 crores for 36% equity and 5% royalty.
After some discussion, Nauman and Saba accepted the deal with Aleena and Rabeel, closing at 36% equity and 5% royalty.
Shark Tank Pakistan Episode 11: Third Pitch Overview
The third pitch of the episode was presented by co-founders Faisal Shehzad and Musaddiq Inayat for their tech-based agricultural B2C startup, Fresh Box. The music video startup focuses on providing fresh agricultural products through a blend of online and offline sales channels.
Business Model and Breakdown
- Investment: 7 crore already invested.
- Revenue streams:
- 40% from meat.
- 30% from fruits and vegetables.
- 10% from dairy.
- 20% from rice and pulses.
- Target market: Agricultural market valued at 60-65 billion PKR in Pakistan.
- Revenue to date: 5.2 crore over the past 15 months.
- Profit margin: Gross margin of 20%.
- Operations: Based in Rawalpindi and Islamabad, operating through an app and offline stores.
The Ask
The founders sought 2 crore for 2% equity, valuing their company at 100 crore.
Sharks’ Feedback and Response
The pitch was described as lively and entertaining, with Usman commenting, “This is going to be fun.” However, the high valuation of 100 crore in just 15 months raised significant skepticism among the sharks.
Key Shark Concerns:
- Aleena Nadeem: Highlighted that many players, including larger companies like Cravemart, have attempted similar ventures, emphasizing the competitive and challenging nature of the agricultural market.
- Usman: Questioned the valuation projection and expressed doubts about how the company could achieve such a high valuation in such a short time.
- The co-founders were unable to provide a convincing response to justify their valuation.
Outcome
Due to the lack of a solid explanation for the valuation and an unclear growth strategy, all sharks opted out, and no deal was made.
Shark Tank Pakistan Episode 11: Fourth Pitch Overview
The fourth pitch was presented by Hashir Aziz, the founder of Arch, and Sheraz, the operations manager. Based in Multan, Arch is a tech company specializing in earbuds featuring OWS (Open wearable Stereo) technology, a first in Pakistan.
Business Performance and Highlights
- Revenue: Achieved 6 crore in sales over the past 15 months.
- Customer base: Sold to 18,000 customers.
- Margins:
- Gross margin: 55%.
- Net profit margin: 10%.
- Startup investment: Initially funded with 30 lacs.
- Marketing: 25% of revenue spent on ads.
- Sales channel: Currently selling exclusively online.
The Ask
Hashir sought an investment of 1 crore for 6% equity, valuing the company at 16.67 crore.
Sharks’ Reactions
The sharks examined the product, and Usman particularly admired it. However, the valuation and growth strategy prompted in-depth discussions.
Initial Offers:
- Usman, Romanna, and Rabeel: Joint offer of 1 crore for 30% equity and 5% royalty from the top line.
Counter-Offer:
- Hashir countered with a proposal of 10% equity.
- In response, Usman and Romanna withdrew, leaving Rabeel Warraich as the sole shark interested.
Final Negotiations with Rabeel:
- Rabeel offered 25% equity and 5% royalty, later reducing it to 22% equity after further discussion.
- After some hesitation, the final deal was closed at 1 crore for 20% equity and 5% royalty with Rabeel.
Outcome
Hashir ultimately accepted Rabeel Warraich’s offer, securing a partnership to grow Arch’s presence in the Pakistani tech market.
Shark Tank Pakistan Episode 11: Fifth Pitch Overview
The final pitch of Episode 11 was presented by Shehrish Raza, the founder of Biz B, a marketplace focused on buying and selling second-hand items (commonly known as lunda in the market). The platform is tailored specifically for women, offering a safe and accessible space for second-hand commerce.
Business Highlights
- Founded: 2020.
- Revenue:
- 2022: 2 crore.
- 2023: 4 crore.
- 2024 projection: Expected to close at 14 crore.
- Profit Margins:
- Gross margin: 20%.
- Net profit margin: 4%.
- Business Model:
- Commission-based: Charges 20% commission on every sale.
- Free listing: Sellers can list their products without any fee.
- Funding History:
- Raised a SAFE round at a cap of $175,000 from Accelerating Asia, a Singapore-based accelerator.
The Ask
Shehrish requested 1 crore for 1.4% equity, valuing Biz B at approximately 71.4 crore PKR.
Sharks’ Reactions
All the sharks appreciated the idea and acknowledged its potential, especially given the focus on empowering women through a dedicated platform. However, the valuation of Biz B surprised the sharks, as they found it too high compared to the business’s current performance metrics.
Outcome
Due to disagreements over the valuation and lack of clarity on the justification for such a high valuation, no deal was made with the sharks.
Final Words
Episode 11 of Shark Tank Pakistan brought to light the passion and determination of Pakistani entrepreneurs aiming to disrupt industries with innovative ideas. While some pitches highlighted the power of preparation, realistic valuations, and niche market strategies, others served as a reminder of the challenges in convincing investors without strong justifications.
For aspiring entrepreneurs, the episode underscored the importance of balancing ambition with practicality, showcasing confidence backed by data, and being open to constructive feedback. Ultimately, success lies in understanding your market, knowing your numbers, and delivering a pitch that inspires trust and excitement in investors.
This episode was a masterclass in the dos and don’ts of pitching, leaving invaluable lessons for those preparing to make their mark in the entrepreneurial world.
FAQs for Aspiring Entrepreneurs from Episode 11
1. What is the most important factor investors consider before investing?
Investors prioritize realistic valuations, a proven revenue model, and a clear growth plan over big ambitions or innovative ideas alone.
2. How do I justify my startup’s valuation?
Valuations should be backed by data such as revenue history, profit margins, market size, and projections. Unsupported valuations, like in the Fresh Box pitch, often fail to convince investors.
3. Should startups focus more on profitability or growth?
A balance is essential. While profitability ensures sustainability, investors are also drawn to scalable growth potential, as highlighted in Mentor School’s pitch.
4. What role does a niche market play in business success?
Targeting a specific market, like Biz B’s focus on women, allows startups to stand out and create a loyal customer base, which can later expand.
5. How can startups handle tough questions during a pitch?
Preparation is key. Anticipate questions about valuation, growth strategies, and competition, and back your answers with credible data and logical reasoning.
