The awareness regarding gut health has gained momentum recently, with many people focusing on eating clean and healthy. Acidity, bloating, and gastric issues are common millennia troubles with 1 out of every 3 individuals suffering from either of these gut issues. Working their way to invent a natural cure for these digestive problems, two American-Indian sisters, Rebekah and Ariella surprised the Sharks on the 3rd episode of Shark Tank Season 2 with their innovative idea.
They also created quite a buzz with their ease of communicating in Hindi. Born and brought up in India, these sisters launched their company – Atmosphere Studio which offers organic and healthy probiotics and prebiotics like Kombucha and Kefir. Let us read more about their brand and whether they cracked the deal or not.
About Atmosphere Studio
A Delhi-based startup called Atmosphere Studio sells healthy and natural kombucha. In addition to kombucha, this company also provides a variety of other wholesome and natural foods, such as cheesecake, pasta, salad, and pancakes. The primary ingredients used in the production of kombucha are water, kombucha culture (yeast and bacteria), organic tea, organic sugar, vanilla, molasses, organic spices, and lime juice. Probiotics, digestive enzymes, organic acids, and B vitamins are among the nutrients that give the body energy. This is best consumed in the morning to aid in digestion.
Ariella Blank and Rebekah Sood, the company’s co-founders, opened their doors for business in South Delhi in 2018. Due to their extensive experience working in the wellness industry, both of these sisters had a very thorough knowledge of this field. Ariella, while working in the nutrition sector realized that many Indians suffered from gut health problems. They created the Atmosphere Kombucha after realizing that hectic lifestyles and the polluted environment are the main causes of gut problems. A sparkling probiotic tea, kombucha has numerous health advantages, including the ability to fight bacteria, lower risk of heart disease, and many more.
The startup not only sells kombucha but also kefir, cheesecake, fudge, pancake mix, and pasta. This business ships its goods to Delhi-NCR, Jaipur, Bangalore, and Mumbai. The price of one 210 ml bottle of Kombucha is Rs 220. It uses eco-friendly packaging when shipping the goods. Products are offered on its website, Swiggy, Zomato, and Amazon.com.
About the Founders
Ariella Bank
Ariella completed a year-long course in nutritional therapy after graduating from Oberlin College with a degree in computer science. She worked for Organic India for a year as a nutrition consultant after completing her studies. She established Ellas Wellness, an office for nutritional therapy, in Delhi in 2017. Ariella is the Co-Founder and Chief Operations Officer of The Atmosphere Kombucha Company.
Rebekah Sood
Rebekah graduated from Oberlin College with a degree in Computer Science. In 2017, she worked in Fabcafe Foods Pvt Ltd restaurant chain that opened 28 restaurant chains nationwide. Her husband, Armaan Sood, is the founder of Sleepy Owl Coffee.
Their Asking at Shark Tank
Ariella Blank and Rebekah Sood asked for ₹75 lakhs from the sharks for 3% equity at a ₹25 Crores Valuation.
The Pitch
Both Rebekah Sood and Ariella Blank entered Shark Tank India and asked the sharks for 75 lakhs for 3% equity. They offer delivery across India and sell kombucha at Starbucks, Blue Tokai, and on their own website. By hiring only women, they also do their part to advance the status of women. There are 14 women currently employed by their company.
They had a sales volume of one crore in the fiscal year 2022. B2B accounted for 60% of the sale, and online sales accounted for 40%. They transact business with 20% retail establishments and 40% cafes and restaurants. In retail and cafes, they typically make between 35% to 40% of sales. With an investment of one crore, they made a profit of 29 lakhs. In India, the majority of kombucha products are sold at railroad stations.
They want to establish a production facility with the investment money so they can produce 3 lakh kombucha bottles each month.
Sharks’ Opinions
Namita Thapar
Although she liked the idea, she believes that a cold-beverage-selling business has a lot of headaches, so she voted it out.
Aman Gupta
The Boat founder felt that expanding this company would be similar to engaging in combat, so he too voted it out.
Anupam Mittal
Anupam Mittal proposed a sum of Rs. 75 lakhs for 20% equity at Rs. 3.75 crores.
Vineeta Singh
At a valuation of $3 billion, Vineeta Singh made an offer of $30 lakhs for 10% equity and $45 lakhs in debt at 12% interest.
Counter Offer
The sister duo refused Vineeta Singh’s offer but gave a counteroffer to Anupam Mittal. At a valuation of 9.38 crores, Ariella and Rebekah counter Anupam for 75 lakhs for 8% equity. Rebekah explained that they cannot increase the equity beyond 10%, despite Anupam’s claim that he can reduce it from 20% by 1% or 2%. He voted out saying that his valuation will not match.
Final Thoughts
Although Atmosphere Studio’s founders could not crack a deal at Shark Tank India, they left the sharks impressed with their business sense, love for India, and knowledge of the Indian ways and lifestyles. Hopefully, they will find investors elsewhere and will be able to level up their business as per their dreams.
