Shark Tank India Founders Invest Over Rs 1 Cr in Toy Library Venture: Criticism Sparks Call for Innovative Business Model

Shark Tank India Season 4 is currently showing on Sony LIV. Recently, a couple from Mumbai, Sourabh and Srishti Jain, showcased their innovative toy library business, The Elefant. They were inspired to start this venture after noticing the growing pile of toys their three-year-old had. They realized that outside Mumbai, the idea of a toy exchange library was quite unfamiliar.

After leaving his full-time job, Sourabh invested Rs 1.25 crore of his savings into the business before seeking additional funds from venture capitalists. On the show, they sought Rs 60 lakh for 1% equity, which would value their company at Rs 60 crore.

The Elefant is an app-driven platform for toy and book rentals. Parents can select a subscription plan to choose from various toys and books for their kids. The business operates on a franchise model. Franchisees manage the libraries from their homes, ensuring the toys are sanitized and packed for new orders. However, the franchisees need to invest over Rs 7 lakh upfront, which raised some eyebrows during their pitch.

Vineeta Singh was the first to exit the deal, sharing her struggles with scaling a subscription-based business. Peyush Bansal raised concerns about the sustainability of their toy circulation, questioning if the same toys would be used for three years – the time it would take for a franchisee to recover their investment. He was surprised to learn about various hidden costs in their model, suggesting they consider a simpler approach. He ultimately decided not to invest.

Aman Gupta also expressed doubts about their subscription model, while Kunal Bahl pointed out that their revenue seemed equivalent to their losses. Anupam Mittal noted that although they were focusing on appealing themes like sustainability and women entrepreneurship, the underlying issues were significant. He opted out as well.

In the end, The Elefant did not secure any offers from the sharks.

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