In a recent exciting episode of ‘Shark Tank India 3‘, a bakery from Delhi called The Cinnamon Kitchen stole the spotlight by bagging a hefty investment of ₹60 lakh from Aman Gupta, co-founder of boAt. This deal, where Gupta snagged a 5% ownership in the business, is a big win for The Cinnamon Kitchen, known for its plant-based, organic, and gluten-free goodies.
The story behind The Cinnamon Kitchen is inspiring. It all started when the founder, Priyasha Saluja, was diagnosed with PCOS. Determined to take control of her health, she started experimenting with healthy treats. By ditching dairy, refined flour, and white sugar, she created some delicious alternatives.
The Cinnamon Kitchen's Unique Selling Points
What began as a personal journey soon transformed into a full-fledged business in 2019. Today, The Cinnamon Kitchen offers a wide range of snacks that are not only gluten-free and preservative-free but also vegan and diabetic-friendly. With about 45 different products, including vegan cakes, keto snacks, granola, and more, they’ve got something for everyone.
Now, you might be wondering what sets The Cinnamon Kitchen apart from other similar companies. Well, according to Priyasha, it’s all about the recipes. Their unique formulas make their treats stand out in a crowded market.
Distribution Strategy: From Online Platforms to Retail Stores
You can find The Cinnamon Kitchen’s products in various places, from their own website to retail stores, Amazon, and Blinkit.
They’ve also cleverly divided their offerings into two categories:
- Fresh cakes and bakery items make up 25%,
- Packaged grocery items cover the remaining 75%.
This strategic move allows them to cater to different customer needs while also boosting repeat business and order values
So, whether you’re looking for a guilt-free indulgence or stocking up on pantry essentials, The Cinnamon Kitchen aims to be your one-stop shop for healthy and tasty snacks. With their innovative approach to baking and commitment to quality, it’s no wonder they caught the eye of investors on Shark Tank India.
The Impressive Numbers Behind The Cinnamon Kitchen
The founder of The Cinnamon Kitchen, Priyasha Saluja, faced an uphill battle when she started with just ₹50,000 in hand, completely bootstrapped
But her determination paid off as the business blossomed, with sales skyrocketing from ₹1.4 lakhs in 2019-20 to a whopping ₹82 lakhs in 2022-23. Her ambitious projection of ₹6 crores for the current year left the Sharks astounded, especially considering the already impressive ₹1.3 crores in revenue by September, with a healthy 30% profit margin, and the anticipated Diwali season boost.
Financial Growth and Projections
During her pitch, which was sprinkled with rhymes and humor, Saluja asked for ₹60 lakh for a 2% stake in her company. While the Sharks chuckled at her wit and were impressed by the tasty samples she provided, they didn’t hold back on their critiques.
With an ask of ₹60 lakh for a 2% equity stake at a valuation of ₹30 crores, Saluja laid out ambitious plans for future expansion. She discussed strategies for scaling distribution, prolonging product shelf life, and venturing into new cities and even international markets. This clear roadmap for growth resonated well with potential investors.
Furthermore, Saluja highlighted the immense potential of the Indian snacking market, which stands at ₹70,000 crores, with the healthy food segment growing at an impressive rate of 20% annually. Her plans to tap into this lucrative market through increased online presence, partnerships with airports, and eventually exports showcase her vision for The Cinnamon Kitchen’s future success.
Feedback and Critiques
Anupam Mittal and Vineeta Singh pointed out flaws in the brand’s packaging and labelling, suggesting a need for clearer visuals and a sharper focus on either bakery or packaged goods.
Responding adeptly to concerns about product pricing, Saluja emphasized the premium quality of her offerings, citing their popularity on platforms like Blinkit. She also acknowledged feedback on packaging and reaffirmed the brand’s commitment to packaged goods.
Vineeta Singh commended The Cinnamon Kitchen’s use of QR codes for easy reordering, recognizing it as a smart strategy.
Negotiation Shenanigans: A Hilarious Exchange with the Sharks
In the offers and deal section, the Shark Tank episode turned into a hilarious exchange of banter and negotiation. Priyasha Saluja’s memorable punchline, “Mera Credit Score bahut achcha he” (My credit score is very good), sparked a flurry of offers from the Sharks.
Vineeta Singh and Anupam Mittal both threw in their bids of ₹60 lakhs for a 10% equity stake at a valuation of ₹6 crores.
In the high-stakes world of Shark Tank negotiations, things took a hilariously unexpected turn when Aman Gupta made a comeback after being initially sidelined. His reason? Well, he credited Priyasha Saluja’s witty credit score punchline for pulling him back into the fray. So, in a classic “you scratch my back, I scratch yours” move, Aman decided to counter with a debt offer, citing Priyasha’s stellar credit score as his motivation.
Aman’s offer? Picture this: ₹10 lakhs for a 2% equity stake at a valuation of ₹5 crores, plus an extra ₹50 lakhs as debt, complete with a generous 12% interest rate for a cozy two-year period.
Cue Priyasha’s live and witty response, where she deftly swerved his debt offer with a hilarious quip about already having better deals outside the tank. With a twinkle in her eye, she insisted on an equity-only deal, stressing the need for more than just money – she wanted guidance, strategy, the whole shebang!
Sealing the Deal: How Priyasha Saluja Closed the Agreement
And oh, the negotiation dance wasn’t done just yet!
Priyasha coolly threw out an offer of ₹60 lakhs for a 4% equity stake, only to have Aman, quick on his feet, counter with a 5% stake at a whopping ₹12 crores valuation, all without skipping a beat.
Despite the playful banter and witty exchanges, Priyasha managed to clinch the deal with Aman Gupta, sealing the agreement with a handshake and a shared chuckle.
Pursuing Deepinder Goyal: The Comic Pursuit for Guidance
But wait, there’s more hilarity to be had! Enter Deepinder Goyal, the elusive Shark with a wealth of knowledge from Zomato and Blinkit. Priyasha, ever the go-getter, wasn’t about to let a little conflict of interest stand in her way. In a side-splitting moment of determination, she relentlessly pursued Deepinder for guidance, prompting a flurry of excuses and dodges.
Yet, in a stroke of comedic brilliance, Priyasha managed to wrangle his phone number, proving that when it comes to her business, she’s willing to go the extra mile – or in this case, the extra phone call!
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