Girgit operates in the apparel and clothing sector and focuses on manufacturing unique types of apparels which change colour on initiating contact with specific triggers. The entire product positioning is based on the USP of the company. The startup recently pitched themselves on Shark Tank India. Deep dive into the article and gain insights about the business model of the company and various other variables.
What is Girgit?
Girgit has positioned itself as the only brand in India that manufactures a horde of apparels which can change colour when they come under the influence of any specific trigger. An example of the uniqueness of their apparels can be noticed as follows. Girgit Store sells a range of water shorts which can easily change colour by coming in contact with water. The products manufactured by the company focus on all three categories ie. Women, Men and Kids. The apparel aren’t saturated to a specific type instead there are various categories of these apparels. They also sell various accessories such as footwear, masks, wrist bands, water bottles etc.
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Who are the Founders of Girgit?
Girgit was founded by Pooja Binoy Shah and her husband Binoy Shah during the pandemic. Pooja is the CEO of the company and Binoy has been instrumental throughout the business. They launched the business after an extensive research of around 3 months.
|Name of Startup||Girgit|
|Founder||Pooja Bajaj Shah and Binoy Shah|
|Deal Asked for||10% equity at the stake of ₹20 lakhs|
|Finalised deal||20% equity at the stake of ₹20 lakhs|
What are the business operations of Girgit?
Girgit has a vast product range across its marketplace. A basic idea pertaining to the price range is as follows. The sneakers on the platform sell for around ₹2000 to ₹3000. Apart from that the selling price of the water bottle is around ₹750. If we look at the market there is no other product apart from Girgit therefore there’s no competition. If we look at the statistics of Girgit the overall sales averaged around ₹58 lakhs. Apart from that the overall gross margin of the business is around 79%.
If we look at the statistics of Girgit in August 21 it was around ₹7.5 lakhs. Overall the company uses “WhatsApp ” for it’s marketing strategy. Apart from that they also use Instagram for it’s marketing wherein they spend around ₹30,000 as ad spend.
What was the Shark Tank India pitch of SoupX?
After the pitching commenced all the sharks displayed their apprehensions towards investing in the startup. The major issue associated with the start-up was pertaining to the scale opportunities available in the business.
The founders originally raised an offer for staking 10% equity at a rate of 20 lakhs. This equation bought their overall valuation to around ₹2 crore. However Namita Thapar pitched an offer asking for a stake of 20% equity at a rate of ₹20 lakhs. This would bring the overall valuation of the company to around ₹ 1 crore. After listening to the offer the entrepreneurs approached Namita with a counter offer asking for ₹20 lakhs at a stake of 15% equity. This would bring the overall equity to around ₹1.33 crores. On hearing the counter offer Namita said that it isn’t feasible to scale this business therefore she won’t be relenting from her previous offer. After this the entrepreneurs finalised the offer.