Iced Tea
Various Flavours
Season 3 Episode 31
| Brand | FOMO |
| Company Name | FOMO CRAFT BREWING PRIVATE LIMITED |
| Founders | Avik Chaudhery, Gaurang Gadia |
| Original Ask | 35 lakhs for 4% equity at the valuation of Rs. 8.75 crores |
| Deal | 35 lakhs for 6% equity at the valuation of Rs. 5.83 crores |
About the Product
FOMO ventured into recipe development with a determination to create innovative beverages. The journey, though, initially chaotic due to their kitchen experiments, resulted in the birth of their signature iced teas. Their concoctions, crafted in domestic kitchens rather than sterile labs, offer a distinctive taste and lightness, resonating well with consumers.
Their commitment extended to sourcing ingredients directly from Indian hinterlands, shunning refined components, preservatives, and synthetic additives commonly found in mainstream products. This endeavour led them to discover the reasons behind the prevalent use of such dubious ingredients in the industry. FOMO’s offerings include the OG Lemon Iced Tea, Classic Peach Iced Tea, Wild Berries Iced Tea, and Mango Peach Iced Tea, each embodying their dedication to quality and authenticity.
Founders & their story
- Avik Chaudhery
- Gaurang Gadia
FOMO offers freshly brewed iced teas with no refined sugar, preservatives, or concentrates. Their products are available across restaurants, corporate offices, marketplaces, and embassies, with plans to launch milk mixes soon. Their best-selling product is Peach iced tea, containing 8 grams of sugar per 100 ml and 96 calories per bottle. Each bottle contains 24 grams of sugar, and the shelf life is 2 months for berry and mango flavours. The price per bottle is Rs 99. They have recently introduced iced tea premixes priced at Rs 35 for 300 ml. Their total investment stands at 32 lakhs, with 15 lakhs raised in 2023 at a valuation of 6 crores cap. Their sales split across different channels is: Horeca 60%, Retail 30%, and Online 10%. Their cash conversion cycle spans 82 days, with Delhi NCR contributing to 70% of their sales.
About the company
FOMO, a brand initiated by two tenacious 21-year-olds, Gaurang and Avik, natives of Delhi and sports enthusiasts since childhood, embarked on their journey as foodies turned entrepreneurs. Their inception involved rigorous recipe concoctions in their kitchens, MVP trials on streets and retail outlets before partnering with a food tech for commercial production, leading to their market debut in August 2022.
Their significant milestone in brand establishment occurred when they secured Khan Chacha, a prominent client in Delhi NCR. In today’s dynamic market, beverages like iced teas and lemonades often lack their core ingredients, driven primarily by pricing strategies. Large corporations manufacture sugary concoctions at minimal costs, yet market them at premium prices, leaving consumers paying exorbitant amounts for essentially flavoured sugar water.
The stark difference in pricing between raw sugar and processed beverages raises ethical concerns. For instance, while sugar retails at Rs. 40 per kg, powdered iced tea (comprising 85-90% sugar) sells for Rs. 500. Such practices not only lack transparency but also compromise the health benefits associated with hydrating beverages, replacing them with deceptive substitutes that may prove even more detrimental.
Revenue
Their sales for October 2023 amounted to 3.4 lakhs, while September 2023 saw sales of 3.7 lakhs. In August 2023, sales reached 3.1 lakhs, and July 2023 recorded sales of 3.05 lakhs. The EBITDA for September 2023 ranged between 1-1.5%. Their monthly revenue run rate is steady at 3.5 lakhs. Across different channels, their gross margins are as follows: HORECA at 30%, Online at 65%, and Offline retail at 50%.
Founders’ Ask
35 lakhs for 4% equity at the valuation of Rs. 8.75 crores.
Offers
Anupam’s offer: 35 lakhs for 7% equity at the valuation of Rs. 5 crores.
Namita and Ritesh’s offer: 35 lakhs for 7% equity at the valuation of Rs. 5 crores.
Amit’s offer: 35 lakhs for 7% equity at the valuation of Rs. 5 crores.
Aman and Anupam’s offer: 35 lakhs for 7% equity at the valuation of Rs. 5 crores.
Aman and Anupam’s revised offer: 35 lakhs for 6% equity at the valuation of Rs. 5.83 crores.
Amit’s revised offer: 35 lakhs for 6% equity at the valuation of Rs. 5.83 crores.
Namita and Ritesh’s revised offer: 35 lakhs for 6% equity at the valuation of Rs. 5.83 crores.
Final Deal
Aman and Anupam: 35 lakhs for 6% equity at the valuation of Rs. 5.83 crores.
