India’s tailoring industry faces challenges due to disorganization and outdated methods. However, initiatives like Raja Rani Coaching are revolutionizing the sector by integrating tailoring with fashion and design. Their vision is to expand through hybrid centers across India, the founders offer equity in exchange for support, aiming to create a skilled workforce and transform India’s tailoring landscape.
From running a rent-outfit business to establishing Raja Rani Coaching, Mohit and Priya’s journey reflects their passion for industry transformation and skill development.
Journey of a Tailoring Education Hub
- Started by Mohit and Priya with inspiration from sister-in-law’s clothing rental business.
- Identified the need for practical tailoring education beyond theoretical government institutes.
- Built a strong online presence with 700,000+ Instagram followers and 150,000+ YouTube subscribers.
- Achieved success with popular courses like the Blouse Master Class.
- Seeking expansion into Beauty Management and tapping into a larger market opportunity.
- Conversion rate – 30% on monthly application download which is approx. 10,000 per month.
- Before course completion for example if person earns approx. ₹ 10,000 to ₹ 15,000, the same person will be able to earn as more as ₹ 40,0000 to 50,000 per month.
Raja Rani Coaching - Products/Business Plan and Vision:
- Empowering individuals: Equip individuals with the necessary skills and knowledge to succeed in the tailoring and fashion design industry.
- Addressing Industry Gaps: Their experience revealed gaps in smaller tailoring institutes, motivating them to start an academy focused on effective training aligned with industry needs.
- Skill revolution: Create a skilled workforce to contribute to the growth of the Indian fashion industry.
- Diverse Fashion Courses: Explore the world of fashion photography, illustration, and more with dedicated faculty trainers.
- Full Boutique Management Course: Learn everything from opening your boutique to managing it effectively, including resource procurement and development strategies.
Raja Rani Coaching - Coaching Product Offerings:
- Range of courses: Basic workshops starting at 99 rupees to full courses which has 9 different sub-courses priced at 37,500 rupees.
- Differentiating Factors: Raja Rani Coaching competes on service quality rather than pricing, offering comprehensive courses accessible through both offline and online platforms.
- Content: Tailoring techniques, fashion design principles, beauty management (future expansion).
- Popular course: Blouse Master Class (Rs. 4,400) with a 30% conversion rate into business ventures or employment.
- Practical Learning: Hands-on training and personalized feedback are central to Raja Rani Coaching’s success, empowering students to gain confidence and valuable skills.
- Empowering Women Entrepreneurs: Many graduates have launched successful businesses or advanced their careers, thanks to Raja Rani Coaching’s comprehensive training and resource development.
Raja Rani Coaching - Value Proposition:
- Focus on practical skills: Combine traditional tailoring techniques with modern technology.
- Affordable and accessible: Offer diverse courses at varying price points and online/offline formats.
- High conversion rate: Equip students with skills to start businesses or find employment.
- Expanding offerings: Continuously innovate and cater to evolving industry needs.
Target Audience – Boutique owners, Tailors, High school Graduates, Fashion design graduates
Current Business Performance:
- FY 2022-23 Sales – ₹ 78 Lakh
- FY 2023-24 (Till Sep) Sales – ₹ 2 Crores
- FY 2023-24 Projected Sales – ₹ 6 Crores, FY 2023-24 Projected Profit – 44% ₹ 6 Crores
Unit Economics
- Gross Merchandise Value – ₹ 118
- GST – ₹ 18
- COGS – ₹ 25
- CAC – ₹ 7
- Other Costs – ₹ 1
- Depreciation – ₹ 1
- Profit before Tax – ₹ 66
Investment Proposal asked by Mohit and Priya Gadhiya
- Seeking 1.3 Crore for a 5% equity stake at 26 crore valuation.
- Emphasize the 27,000-crore tailoring market and lack of trained professionals.
- Trained 70,000+ students in tailoring and Design across India in 2 years.
- Demonstrate revenue generation through diverse course offerings.
- Offer the opportunity to invest in shaping India’s skilled workforce.
Investor Offers and Negotiation
- Anupam Mittal’s Offer:
- Equity: ₹ 50 Lakhs for 10%
- Debt: ₹ 80 Lakhs at 15% Interest
- Valuation: 5 crores
- Amit Gupta’s Offer 1 :
- Debt: ₹ 1.3 crores
- Royalty: 10% until 2.6 crores is recouped (2 X of his Investment)
- Amit Gupta’s Offer 2: Same as Anupam’s offer.
In the midst of negotiations, Mohit and Priya boldly countered with an offer of ₹50 Lakhs for a 6% stake. While they were open to debt, they stood firm against any form of royalty. The Sharks, however, remained unyielding, refusing to consider anything less than a 10% stake.
Despite the high stakes and intense pressure, Mohit and Priya didn’t flinch. They took a step back, recognizing the value of their venture and the importance of holding true to their vision. In a moment of entrepreneurial courage, they stood their ground, refusing to compromise their principles for the sake of a deal.
This standoff wasn’t just about numbers; it was a testament to the unwavering dedication of two entrepreneurs who believed in the worth of their venture and were unwilling to settle for anything less than what they knew it deserved.
Q&A
Who is the founder of Raja Rani coaching?
Raja Rani Coaching, India’s fastest-growing tailoring academy, was founded by the dynamic duo of Mohit Kalubhai Gadhiya and Priya Mohit Gadhiya from Surat, Gujarat. Together, they have built a premier institution recognized for its excellence in the fashion and tailoring industry, even securing a spot on Season 3 of Shark Tank India.
What world record does Raja Rani Coaching hold?
Raja Rani Coaching stands as India’s leading fashion and tailoring institute, holding a world record for training over 70,000 students through online platforms.
What is the valuation of Raja Rani Coaching?
Founded by Mohit Kalubhai Gadhiya and Priya Mohit Gadhiya, Raja Rani Coaching was valued at ₹26 crores when the founders sought an investment of ₹1.3 crores for a 5% equity stake during their pitch on Shark Tank India.
Learning Section
What is vocational training
Vocational training, also known as vocational education and training (VET), Vocational training refers to education and training that focuses on providing practical skills and knowledge required for specific trades, crafts, or professions. It prepares individuals for employment in various fields such as mechanics, healthcare, construction, hospitality, and technology, among others. Unlike traditional academic education, vocational training emphasizes hands-on experience and technical expertise relevant to particular industries or occupations.
Germany: Renowned for its dual education system, Germany combines classroom instruction with on-the-job training. Students typically spend part of their week in school and the rest working in a company related to their field of study.
Switzerland: Similar to Germany, Switzerland emphasizes apprenticeship programs where students receive practical training alongside theoretical education. This approach fosters a skilled workforce highly valued in industries like engineering, hospitality, and healthcare.
Australia: Australia offers a wide range of vocational education and training programs through its TAFE (Technical and Further Education) institutes. These programs cover diverse fields such as construction, automotive, tourism, and business management.
Singapore: Singapore’s Skills Future initiative promotes lifelong learning and skills development. It offers various vocational courses and subsidies to support individuals in acquiring industry-relevant skills and staying competitive in the job market.
United States: In the U.S., vocational training is often provided through community colleges, technical schools, and apprenticeship programs. These programs offer training in fields such as healthcare, information technology, construction, and manufacturing.
Overall, vocational training plays a crucial role in equipping individuals with practical skills and credentials essential for success in specific industries, contributing to economic growth and workforce development globally.
Which steps India is taking to promote vocational training ?
In India, several steps have been taken to promote vocational training and skill development:
Skill India Mission: Launched by the Government of India, this initiative aims to train over 400 million people in various skills by 2022. It includes schemes like Pradhan Mantri Kaushal Vikas Yojana (PMKVY) which offers skill training programs across different sectors.
National Skill Development Corporation (NSDC): Established to facilitate skill development efforts in India, NSDC works with various stakeholders to create a sustainable ecosystem for skill development. It partners with private training providers, industry associations, and governments to offer skill development programs.
Industrial Training Institutes (ITIs): ITIs provide vocational training in various trades such as electrician, mechanic, carpenter, and computer operator. These institutes offer certificate courses of varying durations to equip individuals with practical skills for employment.
Apprenticeship Training: The government encourages apprenticeship training wherein individuals learn on-the-job skills under the guidance of experienced professionals. The Apprentices Act, 1961 regulates the apprenticeship programs in India, and recent amendments have been made to enhance its effectiveness.
Public-Private Partnerships (PPP): Collaborations between the government, private sector, and NGOs play a crucial role in promoting vocational training. Many companies have established training centers or partnered with existing institutions to impart skill training to youth.
Skill Development Initiatives in Schools and Colleges: Efforts are being made to integrate skill development programs into the curriculum of schools and colleges. This helps in preparing students for future careers and reduces the gap between academic learning and industry requirements.
Recognition of Prior Learning (RPL): RPL is a process to certify the skills and knowledge acquired through informal or non-formal learning. It allows individuals with prior experience to obtain formal recognition for their skills, enhancing their employability.
These steps, among others, aim to address the skills gap in India and empower its workforce with the necessary competencies to meet the demands of a rapidly evolving job market.
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