Story of Pulsetech -Shark Tank Bangladesh -Entrepreneur
Story of Pulsetech
Kazi Ashik and AR Rafi Ahmed, co-founders of Palte Limited,
shared their vision of revolutionizing the pharmaceutical business. With over
12 years of experience in both the pharmaceutical and tech industries, they aim
to bring clarity to the chaotic nature of the pharmaceutical supply chain. They
introduced Palte's core solution: a comprehensive pharmacy management system
designed to help pharmacists efficiently track inventory, prevent the sale of
expired or counterfeit medicines, and ensure the authenticity of their
products.
The Need for Change in the Pharmacy Industry
In Bangladesh, there are over 230,000 pharmacies, but less
than 2% of them use any form of software to manage their inventory. Pharmacists
often struggle with managing their sales, inventory, and ensuring they aren't
selling expired products. The reliance on secondary markets for profit
sometimes leads to the distribution of counterfeit medicines. This is the
problem Ashik and Rafi identified and decided to address through their software
platform.
Introducing Palte’s Solution: Meda and Medbox
To solve the issues faced by pharmacies, Ashik and Rafi
developed two key products: Meda, a pharmacy management software, and Medbox, a
wholesale e-commerce platform. Meda allows pharmacists to manage their
inventory, sales, and even track expired products. Medbox, on the other hand,
enables pharmacies to source all their products from a single platform,
ensuring that the medicines are 100% authentic, with last-mile delivery and
embedded credit services included.
Impressive Growth and Future Plans
In just 1.5 years, Palte onboarded over 4,000 pharmacies and
generated more than 13 crore revenue, experiencing a 300% year-over-year
growth. The company plans to scale further, aiming for a 30 crore revenue by
adding 6,000 more pharmacies to its platform in the upcoming year. Their
ability to offer both software solutions and product sourcing has proven to be
a major draw for pharmacies, and they are now looking for the investment to
fuel this growth.
How Palte's Software Works for Pharmacies
The Meda software allows pharmacists to monitor and manage
their daily transactions, inventory, and sales. This is essential in a market
where mismanagement can lead to the sale of expired or counterfeit medicines.
The system’s ability to track product authenticity and expiry dates helps
ensure pharmacies maintain compliance with regulations. By offering this
service, Palte is solving a major headache for pharmacy owners who previously
relied on outdated or manual processes.
Story of Pulsetech -Shark Tank Bangladesh -Entrepreneur/age/net worth/startup/Story of Pulsetech/Shark Tank Bangladesh/
Building Trust and Addressing Challenges
Despite the benefits, the pharmacy sector in Bangladesh
still faces challenges in terms of technology adoption. While Ashik and Rafi
claim that 98% of pharmacies are open to using their solution, they are also
aware of the resistance some may have due to a lack of trust in new technology.
However, the pair is confident in their model and believes that once they gain
the trust of more pharmacies, they can establish a more standardized approach
to inventory and sales management across the country.
Investment Request and The Sharks' Response
Ashik and Rafi were seeking a 30 lakh Taka investment in
exchange for 1% of the company. They believe their business model is solid and
that they have the potential for tremendous growth, but they need the financial
backing to scale up. While some of the sharks were initially skeptical about
their valuation, the entrepreneurs explained that the goal was to make Palte a
$100 million revenue company in the next five years, demonstrating their
long-term vision.
A Detailed Demonstration and Discussions
During their pitch, Ashik and Rafi provided a detailed
demonstration of how their platform works. They shared information about their
pricing model, margins, and product sourcing process, specifically discussing
their 20% margin on pharmaceutical products. They also revealed how their
platform could fulfill orders within 24 hours, ensuring quick and reliable
delivery for pharmacies. The sharks were impressed by the operational
efficiency of the platform but questioned the sustainability of their valuation.
Negotiation and Offers
After the pitch, the sharks made their offers. One of the
sharks offered to invest the full amount but at a 5% equity stake, with the
possibility of reducing it to 3% if the investment was paid back within 12
months. The founders countered with their own offer, proposing a 4% equity
share and 2% advisory for the same amount. The negotiation was intense, with
both sides weighing the value they could bring to the table. After some
back-and-forth, they reached a middle ground, agreeing to 3% equity and 2% advisory,
with the provision to lower it to 2% if the money was repaid in 12 months.
The Final Deal and Future Prospects
The final deal was reached, and Ashik and Rafi were
satisfied with the outcome. The investment would help them cover working
capital needs and expand their reach to more pharmacies across the country.
Both parties were excited about the potential of the business and the value the
sharks could bring, including their expertise in supply chain management and
business growth. Ashik and Rafi left Shark Tank with the support they needed to
take their business to the next level and bring clarity to the pharmaceutical
industry.
A timeline summarizing the story of Palte Limited:
12+ Years Ago: Kazi Ashik and AR Rafi Ahmed gain experience
in pharmaceutical and tech industries.
2020-2021: Identify the need for improved pharmacy
management in Bangladesh, leading to the creation of Palte.
2022: Develop Meda (pharmacy management software) and Medbox
(wholesale e-commerce platform) to address inventory and authenticity issues.
2023: Onboard 4,000 pharmacies, generate 13 crore revenue,
and experience 300% year-over-year growth.
2024: Present to Sharks on Shark Tank, seeking 30 lakh
investment for 1% equity.
Post-Presentation: The Sharks question the valuation but
show interest in the business.
Negotiation: The Sharks offer 5% equity; founders counter
with 4% equity and 2% advisory, ultimately agreeing on 3% equity and 2%
advisory with a possibility of reducing to 2% after 12 months.
Final Deal: Palte secures investment to expand operations,
with the Sharks providing expertise in supply chain and business growth.
