Writing
Various Channels of organising writing events
Season 3 Episode 13
| Brand | Daak Room |
| Company Name | S H ENTERPRISES LLP |
| Founders | Shivani Mehta, Harnehmat Kaur |
| Original Ask | 36 lakhs for 4% equity at the valuation of Rs. 9 crores |
| Deal | 36 lakhs for 6% equity at the valuation of Rs. 6 crores |
About the Product
Experience zones at events curated by Daakroom offer attendees a unique opportunity to disconnect from the digital world and engage in hands-on activities, fostering creativity and enjoyment. Their events serve as a canvas for individuals to unleash their inner artists and immerse themselves in a world of offline experiences. Workshops and corporate engagements, such as the Digital Detox Day (D3), provide organizations with the means to enhance team cohesion, explore interpersonal connections, and cultivate a culture of appreciation through creative offline engagement programs. Daakroom’s promotional and marketing campaigns are characterized by thoughtfulness, effectively reaching target audiences while prioritizing customer engagement and value. Their customizable event planning services seamlessly integrate meaningful engagements into celebrations, ensuring an unforgettable experience for participants. Daakroom’s carnivals, inaugurated in 2016, offer city-wide events with high footfall across the country. Attendees are invited to participate in authentic postal experiences, compete in various competitions, attend workshops led by professionals, and enjoy a wide array of creative activities, ensuring a memorable and enriching experience for all.
Founders & their story
- Shivani Mehta
- Harnehmat Kaur
Daak Room, a network comprising over 1000 schools and institutions, celebrates the beauty, tangibility, and sentimentality of letters. With a profound understanding of the benefits that writing entails—ranging from learning and therapy to fostering analytical and critical thinking, as well as cognitive and emotional development—Daak Room has facilitated the authorship of over 800,000 letters. Founded by visionaries from the National Institute of Design, Ahmedabad, Daak Room offers an array of writing curriculums tailored to nurture creativity, enhance personal and formal communication skills, and inspire individuals to write to their role models and beyond.
The revenue streams of Daak Room encompass educational programs and workshops designed for schools, dynamic marketing campaigns and events, as well as vibrant letter writing carnivals. These carnivals, characterized by an entry fee ranging from Rs. 100 to Rs. 250, attract an average footfall of 6000 to 7000 attendees. In essence, Daak Room embodies a commitment to fostering the art and joy of writing, enriching lives, and forging connections through the timeless medium of letters.
About the company
College roommates Shivani and Harnehmat, bonded by their mutual affection for handwritten correspondence, fostered a tradition of exchanging letters and postcards throughout their academic years. Their enthusiasm led them to establish a modest stall for postcard writing at the National Institute of Design in Ahmedabad during October 2013, coinciding with World Post Day. The overwhelming response sparked their vision to inspire others to embrace the timeless allure of the written word amidst the digital age. They aim to create a space for handwritten communication, advocating for its significance in fostering connections, patience, and clarity of thought. Their mission is to establish the largest global platform dedicated to celebrating and promoting the art of letter writing in the 21st century, with a particular focus on making India a leader in revitalizing the practice of handwritten letters. Through their initiatives, they strive to cultivate a culture of “Digital Detox” nationwide, encouraging individuals to slow down and savour the experience of penning heartfelt messages. Their goal is to steadily expand Daakroom’s presence across the country, fostering a nationwide celebration of the enduring charm of letter writing.
Revenue
In the fiscal year 2023-2024 (until October), Daak Room has achieved sales amounting to 90 lakhs INR. Projected sales for the entire fiscal year 2023-2024 are anticipated to reach 1.46 crores INR, reflecting significant growth compared to previous years.
Notably, the company’s sales in the fiscal year 2016-2022 amounted to 61 lakhs INR, followed by a slight decrease to 42 lakhs INR in the fiscal year 2022-2023. Additionally, the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin for the fiscal year 2023-2024 (until October) stands at 15%
Founders’ Ask
36 lakhs for 4% equity at the valuation of Rs. 9 crores.
Offers:
Vineeta’s offer: 36 lakhs for 6% equity at the valuation of Rs. 6 croresand 3% royalty until 72 lakhs is recouped.
Ritesh’s offer: 36 lakhs for 6% equity at the valuation of Rs. 6 crores.
Ritesh’s condition: If FY 23-24 projected sales of Rs 1.46 crores is achieved with 15% EBITDA then 1% equity will be given back to the founders.
Founder’s Counteroffer:
36 lakhs for 5% equity at the valuation of Rs. 7.2 crores.
Final Deal
Ritesh: 36 lakhs for 6% equity at the valuation of Rs. 6 crores.
