Story of Shashank Negi and Anubha Gupta: Founder of ArtBuzz -Entrepreneur
ArtBuzz’s Vision for Affordable Travel
ArtBuzz, a hospitality startup based in New Delhi, was
founded by Shashank Negi and Anubha Gupta to cater to budget-conscious
travelers, backpackers, and remote workers. Their goal was to provide
affordable yet artistic and community-driven accommodations, including hostels,
private rooms, dormitories, cafes, and co-working spaces. With a presence in
eight cities across India, ArtBuzz aims to offer more than just a place to
stay—it aspires to be a lifestyle experience for digital nomads and young
travelers.
The Founders Behind the Idea
Shashank Negi, an expert in the hospitality industry, and
Anubha Gupta, a business strategist, combined their skills to create ArtBuzz.
Their vision was to redefine budget-friendly stays by blending affordability
with creativity. They planned to expand the brand further across India, with
new properties in Dehradun and beyond, making it a go-to destination for young
travelers seeking vibrant and comfortable accommodations.
Diverse Revenue Streams
ArtBuzz generates revenue through three main channels:
accommodations, cafes, and co-working spaces. Hotels and hostels contribute 75%
of total sales, cafes account for 13%, and co-working spaces bring in 12%.
While accommodations remain the primary revenue source, the additional services
enhance the overall guest experience and create a social hub for travelers.
Rapid Growth but Profitability Challenges
Over the years, ArtBuzz has experienced impressive revenue
growth. In FY22-23, the company earned ₹60 lakh, which increased to ₹2.1 crore
in FY23-24 and is projected to reach ₹6.5 crore in FY24-25. However, despite
strong sales, profitability remains a major concern. The company has been
operating at a loss, though efforts are being made to reach break-even by the
next financial year.
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Understanding ArtBuzz’s Financial Struggles
One of the major challenges for ArtBuzz is high operational
costs. Their expenses include rent (34%), maintenance and utilities (16%),
salaries (22%), cafe food costs (6%), marketing and commissions (12%), and
corporate costs (20%). With an EBITDA of -10%, the company must find ways to
optimize expenses while maintaining service quality.
ArtBuzz’s Pitch on Shark Tank India
Shashank and Anubha appeared on Shark Tank India seeking ₹1
crore in exchange for 30% equity, valuing their company at ₹3.33 crore. They
intended to use the funds for expansion, marketing, and financial stability.
However, the sharks raised several concerns regarding their business model,
profitability, and ability to compete with bigger players in the industry.
Ritesh Agarwal’s Tough Questions
Ritesh Agarwal, the founder of OYO, was the first to
challenge ArtBuzz’s strategy. He questioned how they planned to differentiate
themselves from existing brands like Zostel and OYO. While the founders
emphasized their artistic and community-driven approach, Ritesh was unconvinced
and decided not to invest.
Vineeta Singh’s Branding Concerns
Vineeta Singh highlighted another issue—ArtBuzz’s lack of a
clear brand identity. She believed that without a distinct positioning, the
business might struggle to attract loyal customers. Her remark, “If you don’t
stand for something, you fall for everything,” emphasized the need for a
strong, unique selling point.
Financial Concerns from Aman and Azhar
Sharks Aman Gupta and Azhar Iqubal focused on ArtBuzz’s
financial sustainability. They questioned why the company had not yet achieved
profitability despite growing revenue. The founders admitted that managing
costs remained a challenge, which led both sharks to step away from the deal.
Kunal Bahl’s Pricing and Scalability Worries
Kunal Bahl appreciated the idea of affordable travel stays
but raised concerns about pricing, occupancy rates, and scalability. He feared
that ArtBuzz might struggle to grow without heavy discounts, making it
difficult to sustain long-term operations. This concern further weakened the
startup’s chances of securing an investment.
A Heated Moment Between the Sharks
During the discussion, Kunal Bahl was interrupted by Aman
Gupta while explaining his perspective. Frustrated, Kunal firmly responded,
“Let me finish first,” creating a tense moment on the show. This unexpected
exchange added to the drama and intensity of the pitch.
No Deal, But Valuable Lessons
Despite a passionate pitch, ArtBuzz failed to secure an
investment. The sharks remained skeptical about the company’s long-term
viability and operational sustainability. However, the experience provided
valuable insights that the founders could use to refine their business
strategy.
Future Plans for ArtBuzz
Determined to succeed, Shashank and Anubha plan to improve
ArtBuzz’s financial health by optimizing costs, refining their pricing
strategy, and increasing occupancy rates. They aim to position ArtBuzz as
India’s leading hostel chain for budget travelers by strengthening their brand
identity and ensuring profitability.
Key Takeaways from ArtBuzz’s Shark Tank Journey
ArtBuzz’s journey on Shark Tank India highlighted crucial
business lessons. Differentiation is key in a competitive market, revenue
growth must be backed by profitability, and strong branding is essential for
long-term success. While the sharks were not convinced this time, ArtBuzz still
has the potential to become a major player in the budget travel industry with
the right strategies in place.
Timeline for story
2020 – ArtBuzz founded by Shashank Negi and Anubha Gupta.
2022-23 – Revenue reached ₹60 lakh.
2023-24 – Revenue grew to ₹2.1 crore.
2024 – Expanded to eight cities across India.
2024-25 – Projected revenue of ₹6.5 crore.
2024 – Appeared on Shark Tank India, seeking ₹1 crore for
30% equity.
2024 – No investment secured, but received critical
feedback.
2024 – Plans to optimize costs and improve profitability.
