In the age of ChatGPT, three entrepreneurs from a startup appeared on Shark Tank India’s third season with an idea called ‘Beauty GPT’. Although the startup’s concept was intriguing and caught the attention of the investors, it was a surprising offer from judge Peyush Bansal that stole the spotlight in the episode.
Investor Vineeta Singh liked the cool “Beauty GPT” and AI stuff but wasn’t sold on the business plan. However, investor Peyush Bansal wanted to buy the whole company. Their “magic mirror” is like those virtual try-on tools on websites like Nykaa or Lenskart. It lets you see how products look before buying, and it can be set up in stores.
It has to be noted that Orbo is creating AI tools to help beauty brands increase sales, customer engagement, and loyalty. Their Beauty AI system adds personalized visual features to products on websites and in stores. It recommends products based on individual needs and works across mobile apps, online shops, and physical stores. Features include finding the right foundation shade, trying on makeup, and analyzing skin and hair.
Peyush Bansal Surprises Everyone With Rs 15 Crore Offer For Rs 133 Crore AI Startup
Orbo AI asked for Rs 1 crore for a 0.75% stake, valuing the company at Rs 133.33 crore. Vineeta loved their magic mirror and mentioned her company, Sugar Cosmetics, might rent their mirrors. Peyush also tried it and was impressed with the tech.
The founders stated they had raised Rs 26 crore so far, prompting Anupam Mittal to comment, “Aap paise raise karne mein awwal number ho (You are too good at raising money).”
Most sharks weren’t keen on investing due to the company’s financial state. However, Vineeta made a conditional offer: if they could secure the Rs 3 million term sheet they were negotiating, she’d invest Rs 1 crore for a 1% stake.
When Vineeta made her offer, Peyush Bansal escalated things by proposing to buy a 51% majority stake in the company for Rs 15 crore.
Aman found this offer bizarre, saying, “Company thode bech sakte hain aise 10 minutes mein (They can’t sell their company in 10 minutes).”
After considering their options, the founders were ready to negotiate with Peyush. However, Peyush turned down their offer of Rs 35 crore for a 51% stake. In the end, they accepted Vineeta’s offer.