Story of Loom company- Shark Tank Bangladesh- Entrepreneur
Introduction to the Loom Founders
The founders of Loom, a fashion marketplace startup, had a
dynamic and dramatic entry into the world of business pitching. They were
excited to present their vision for their company on a popular platform, Shark
Tank Bangladesh. Loom specializes in trendy clothing and accessories, aiming to
bridge the gap between designers and buyers. The company’s goal is to create a
network of talented designers and offer a platform for showcasing their
products to a broader audience. Their pitch was met with great enthusiasm, and
the entrepreneurs were eager to present their business to the sharks.
Early Beginnings of Loom
Loom was founded in October of the previous year, a startup
dedicated to providing a marketplace for designers. The founders initially
began their journey by creating a simple Facebook page to display their
products. They carefully curated content, showcasing the designs and products
of local fashion designers, and used social media as the first point of contact
with potential customers. The early days were challenging, but their commitment
paid off when, within just 13 days of launching, they successfully sold 18
products, marking their first significant milestone.
The Marketplace Model
The founders explained that Loom operates as a marketplace,
connecting fashion designers with buyers. In the initial stages, the platform
focused solely on selling products within Bangladesh. Loom has now expanded its
approach, developing a website as its main channel for transactions. This move
has allowed the company to scale, making it easier for customers to browse and
buy from a variety of designers. Despite being in its early phases, Loom has
already built a solid foundation and demonstrated the potential for growth.
Understanding the Business Model
The founders shared the financial aspects of their business,
emphasizing that each order on their platform averages a value of around 12,000
Bangladeshi Taka. They also highlighted the profitability of their model,
boasting a gross profit margin of 27% to 30% and a net profit margin of
approximately 22%. This financial success in such a short time indicates that
the business has been well-received in the local market. The team is optimistic
that these margins will improve as they continue to grow and refine their
operations.
Sharks’ Feedback and Interest
As the pitch continued, the sharks provided their feedback,
acknowledging the potential of the online marketplace. However, one of the key
concerns raised was the replicability of the business model. The sharks
recognized that while Loom has a unique offering, the marketplace concept is
not entirely novel, which makes it easier for competitors to copy the idea.
Despite this, there was still interest from some of the sharks, who believed
that with the right support and strategic guidance, Loom could achieve great
success.
Story of Loom company- Shark Tank Bangladesh- Entrepreneur/marketplace for designers/age/net worth/investor/startup/shark tank bangladesh/Loom
The Investment Offers Begin
The sharks began discussing potential investment offers for
the founders of Loom. One of the sharks, intrigued by the concept, offered to
invest 10 lakh Bangladeshi Taka in exchange for 10% equity in the business.
While this was a substantial offer, the founders continued to listen to other
proposals from different sharks, eager to explore all possibilities and
determine which investor would bring the most value to their company.
Another Proposal with Added Value
Another shark, with a background in technology, offered a
more comprehensive deal. In addition to the 10 lakh Taka investment, the shark
proposed another 10 lakh Taka worth of development services for Loom’s
platform. This included support for the technical aspects of the business, such
as enhancing the website and streamlining the backend operations. The shark
also offered marketing services and photography support to further promote the
brand. In exchange for these resources, the shark requested 20% equity in the
company, believing that the additional services would add tremendous value to
Loom.
The Offer of a Collaborative Partnership
At this point, two sharks expressed interest in collaborating on the investment deal. They proposed splitting the investment equally, with each shark contributing 10 lakh Taka, which would give them both a 10% stake in Loom. The founders were presented with a compelling partnership opportunity, where they would receive not only the financial backing but also the expertise and networks of two experienced investors. This collaborative offer seemed like a win-win for both parties, and the founders considered the possibility of moving forward with it.
Counteroffer and Negotiations
The founders of Loom, however, were not ready to commit to
any deal without careful consideration. They proposed a counteroffer, seeking
15% equity in exchange for the investment. Their logic was based on their
belief in the potential of the business and the value they would provide to the
sharks. The negotiations heated up, with the sharks discussing the terms and
trying to reach a mutually agreeable solution. The founders were careful not to
rush into any decisions, understanding that the right partnership could be
pivotal to their long-term success.
Final Agreement and Conclusion
After some back and forth, the sharks finally reached an
agreement with the founders of Loom. The deal was struck for a 15% equity stake
in exchange for a 30 lakh Taka investment, split between two sharks. The
founders were happy with the deal, feeling that it offered the right balance of
financial support and strategic guidance. As they wrapped up the pitch, the
excitement was palpable. Loom had secured a deal that would provide them with
the resources and mentorship needed to take their business to the next level.
Timeline for Loom's Journey:
Oct 2023 - Loom is founded, aiming to provide a marketplace
for designers.
Oct 2023 (13 days after launch) - First milestone: Sold 18
products via Facebook page.
Dec 2023 - Loom launches a website to scale its marketplace
operations.
Dec 2023 - The platform achieves an average order value of
12,000 BDT, with a gross profit margin of 27-30%.
Jan 2024 - Founders pitch Loom on Shark Tank Bangladesh.
Jan 2024 - Sharks express interest but raise concerns about
the replicability of the business model.
Jan 2024 - Shark offers 10 lakh BDT for 10% equity.
Jan 2024 - Another shark offers 10 lakh BDT investment + 10
lakh BDT in development and marketing services for 20% equity.
Jan 2024 - Two sharks propose a collaborative investment
deal, offering 10 lakh BDT each for 10% equity.
Jan 2024 - Founders propose a counteroffer of 15% equity for
30 lakh BDT investment.
Jan 2024 - Deal finalization: Founders secure 30 lakh BDT
for 15% equity, with strategic guidance from two sharks.
