Paradyes is a semi permanent hair color brand, started by a husband wife duo Yushika Jolly and Siddharth Raghuvanshi, who pitched their company in the 9th Episode of Season 2 of Shark Tank India. The Sharks were so impressed by the business that everyone except Namita was keen on investing and becoming a part of the paradyes journey, leaving the founders with a somewhat of an upper hand in terms of choice of Sharks and negotiations.
In this piece, I will walk you through what exactly is Paradyes, the Paradyes Shark Tank Pitch and share updates on what happened with Paradyes after their Shark Tank Appearance.
What is Paradyes?
Paradyes is a semi permanent hair color brand focussed specifically on the Indian market as of now. The brand manufactures hair color in colors other than the standard brown, black and red that are easily accessible in the Indian market. Paradyes sells more than 20 hair colors and claims its products help break stereotypes.
Paradyes Shark Tank Pitch & Deal
After entering the Shark Tank room, the husband-wife duo immediately began explaining what Paradyes does. They highlighted that Paradyes is a semi permanent hair dye brand, selling hair color in 20 shades that are safe and lasts for up to 8-10 washes. Paradyes products are available on its website, marketplaces like Amazon & Purplle & 35+ stores of Health and Glow. The brand also had an Insta community of 60k+ followers at the time and wanted to break stereotypes to help normalize hair coloring like makeup. After giving a basic overview of the brand, the founders informed they were seeking 65 lakhs in exchange for 1 percent equity.
On being asked more regarding the formation of the brand, the founders informed that they started research for building products in 2020 and launched products in March end of 2021. On being asked about the options available if he wanted to color his hair by Peyush, Yushika explained that permanent color is the most common option and it has the biggest market with established brands like Godrej, Loreal & Streax. The overall hair market, including semi permanent color, is worth 7500-8000 crore. In the semi permanent hair color, Vineeta said that Streax is the biggest brand in India but Yushika countered it by saying they only have 6 colors, while Paradyes has 20 colors.
On being asked about sales, Siddharth informed Paradyes did sales worth Rs 3.5 crores in FY22 and they had done Rs 2.5 crores already in two quarters in this year. Streax on the other hand did close to Rs 50 crores in the same segment.
When Namita asked that the sales and the valuation weren’t adding up, the founders defended the valuation by saying they have not focussed on scaling yet, plus they have ironed out possible manufacturing, logistical and supply chain issues.
After understanding their rationale, Anupam asked the founders to explain unit economics. Siddharth shared that their average order value was Rs 1100, a gross margin of 70-75%, and net profit of 19%. In the 2.5 crores sales that Paradyes did in FY22, close to 50 lakhs of it was profit.
After all this conversation, Peyush says he is interested in giving an offer of 65 lakhs for 5%, and he is open to negotiation. However, Namita says she is out as she does not have expertise in this category. Vineeta and Anupam give an offer of 65 lakhs for 4%. Aman also gives an offer of 65 lakhs for 5%.
After hearing three offers, the two founders take some time to think about which offer to take. They counter with an offer of 65 lakhs for 3%, but the founders want to go ahead with Vineeta and Aman. On seeing that the other Sharks would readily go ahead with it, Peyush offers 65 lakhs for 2 percent. Vineeta, Anupam and Aman counter offer with a shared deal of 65 lakhs for 3 percent. Peyush counters with 65 lakhs for 1%.
The two founders counter with an offer of 2% for Aman & Vineeta, excluding Anupam from the deal. Both parties agree to the deal and Vineeta & Aman invest 65 lakhs for 2%.
What Happened to Paradyes after Shark Tank ( Paradyes Shark Tank Update )
The Paradyes deal did not end on a very positive note considering that Anupam was extremely disturbed by the turn of events that happened during the acceptance of the deal. The disagreements between the Sharks got a lot of press coverage along with viewers weighing their opinion on the matter on Twitter.
As is often the case with controversy, it led to an increased interest in the episode and the Paradyes, which must have possibly led to an increase in sales as well.