Shark Tank India: Doubts Emerge Over Clothing Deal

Shark Tank India: Doubts Emerge Over Clothing Deal 

The entrepreneurs sealed the deal with all four Sharks

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On a recent Shark Tank India episode, Lavanya Aneja and Kriti Anjea, a mother-daughter entrepreneur team from the clothing brand Lea, pointed out the contrast between how European women emphasize their curves and how Indian women tend to conceal their body shapes, which intrigued the Sharks. As they presented Lea Clothing Co, portraying it as a brand that embraces women with diverse body types, the entrepreneurs instantly captured the Sharks' attention, laying the groundwork for an engaging episode of Shark Tank India Season 3. As the pitch wrapped up, boAt CEO Aman Gupta experienced a slight pang of FOMO while witnessing the other Sharks engage in negotiations without his involvement.

When showcasing the brand's products to the judges, Lavanya emphasized that one of Lea's distinctive features is its development of a personalized sizing chart specifically designed for Indian body types, covering sizes from XS to 5XL, to empower women with confidence in our clothing.The entrepreneurs also introduced their affiliated sister brands -- Saanjh by Lea and L'ange by Lea, specializing in ethnic wear and swimwear/lingerie, respectively. The entrepreneurs aimed for a Rs 1 crore investment in return for a 2 percent ownership stake, valuing their company at Rs 50 crore, which surprised CEO Anupam Mittal.

As the episode unfolded, the Sharks teased Lavanya for addressing her mother as "Kriti ji" instead of "Mummy," to which she responded with laughter, explaining that it had become a habit.

When Sugar Cosmetics' CEO Vineeta Singh inquired about Lavanya's ability to launch three businesses in a brief period, Lavanya attributed their success to positive customer feedback. She highlighted that women were purchasing Lea's corsets not only for casual wear but also with the intention of pairing them with sarees and lehengas. She also mentioned that a significant portion, around 75 to 80 percent, of their product line consists of corsets, which further intrigued the Sharks. The entrepreneurs also shared with the Sharks that while Lea's products had an average price of Rs 6,900, whereas items under the Saanjh label were priced higher, ranging from Rs 12,000 to 13,000. She also highlighted that despite starting with an initial investment of Rs 25 lakh, Lea achieved breakeven within four months, became profitable, and has maintained profitability ever since, leaving the Sharks amazed. Lavanya provided insight into their business performance, indicating that they attained sales worth Rs 60 lakh in February 2024, along with net sales amounting to Rs 3 crore during the fiscal year 2022-23.

As the conversation concluded, Mittal was the initial one to convey his admiration for their venture and proposed an investment of Rs 1 crore, albeit in exchange for a 4 percent equity stake. He additionally requested a 2 percent royalty on sales until his investment is recouped at 1.5 times its value. Vineeta also aligned with Anupam's proposal and requested a 4 percent equity stake. Surprising the entrepreneurs, Emcure Pharmaceuticals' Executive Director Namita Thapar and Inshorts CEO Azhar Iqubal also presented a similar offer, indicating their eagerness to participate in the investment.

In the midst of the discussions, Mittal modified the shared terms and requested a 6 percent equity stake in exchange for Rs 1 crore. After the entrepreneurs left for further discussion, Gupta questioned the judges, "Will she even listen to you?" In response, Singh and Mittal stood by Lavanya, acknowledging her passion and vitality, dismissing Gupta's hinted worry, and effectively addressing his comment.

Upon their return, Lavanya requested Mittal to reconsider the offer, suggesting Rs 1 crore for a 4 percent equity stake and reducing the royalty to 1 percent. Subsequently, when Thapar proposed an alternative of "Rs 1 crore for 4 percent equity and 2 percent royalty until Rs 1.5 crore is recouped," the entrepreneurs sealed the deal with all four Sharks.

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