Will the handshake between Shark Hung Anh and Tue Lam with the Indian deal make a big deal?

Calling for investment of 500 thousand USD for 8% of company shares

The appearance of an Indian founder Rajnish Sharma and Product Director Le Tho to raise capital for the logistics platform. Having 13 years of experience in the logistics field at local businesses, Rajnish Sharma realized that businesses often have distribution centers in the North and the South, making distribution costs higher and taking more time.

Indian Founder Rajnish Sharma and Product Director Le Tho come to raise capital for the logistics platform.

To limit those losses, bring transparency and flexibility, Rajnish launched the Wareflex Vietnam logistics service platform.

Wareflex does not own any warehouses or any fleet of trucks. Instead, the platform acts as an intermediary connecting businesses with warehouse and transportation service providers that suit their needs.

By August 2023, the Wareflex platform was launched to serve business customers with logistics needs. After more than 2 months, the platform had more than 3,000 registered business accounts and 70 service requests.

Coming to Shark Tank Vietnam, this startup called for the Sharks' support with an investment of 500 thousand USD for 8% of the company's shares.

Initially, Wareflex developed a network of partners and is currently cooperating with more than 150 service providers with a total of nearly 400 warehouses and nearly 4,000 trucks.

Introducing more about the business model and revenue picture, Rajnish said that this project was launched in December 2021. Initially, Wareflex developed a network of partners and is currently cooperating with more than 150 service providers with a total of nearly 400 warehouses and nearly 4,000 trucks.

To increase the advantage of the business model, Wareflex conducts verification and research on the supply in advance, then classifies it according to 103 characteristics so that customers can easily find the most suitable service.

According to the founder, the startup’s main customer base is commodity companies. The journey of using Wareflex’s services will start from arranging the first meeting, signing an NDA (non-disclosure agreement), providing desired details, trialing the contract, and then officially cooperating.

"Burning" about 40 thousand USD per month, revenue of 1 million USD/month and break even in 2025

With this approach, by the time of the fundraising, Wareflex had secured a contract worth more than 500 thousand USD and is expected to close another logistics contract worth 3 million USD in December 2023. Wareflex will receive a fee of 5-10% depending on the size of the contract, type of warehouse and service. Recorded revenue is 50 thousand USD.

Wareflex's founder also revealed the goal of reaching ARR (annual recurring revenue) of 1 million USD/month by October 2024. With a "burn" rate of about 40 thousand USD/month, the startup estimates that it will reach break-even point by August 2025.

The handshake of 2 Sharks with Startup Wareflex.

Regarding Wareflex's shareholder structure, Rajnish Sharma currently holds 60% of shares; Product Director Le Tho and another co-founder each hold 3%; nearly 25% of shares are held by 2 venture capital funds and 10% is reserved for ESOP.

Having experience investing in companies that independently provide logistics services, warehouses, management software, etc., Shark Tue Lam expressed interest in a company that provides all services on the same platform like Wareflex. She said she could bring partners in Korea and the US to Wareflex and offered to invest 500 thousand USD in exchange for 11% of the startup's shares.

Meanwhile, with the same investment of 500 thousand USD, Shark Hung Anh offered to exchange for 15% of shares.

There were two offers but the business valuation did not meet expectations, so Rajnish negotiated an investment of 500 thousand USD in exchange for 10% of shares and wanted to have both Sharks on board.

After consideration, Shark Hung Anh and Shark Tue Lam agreed to close the deal of 500 thousand USD for Wareflex in exchange for 10% of shares.

Shark Hung Anh and Shark Tue Lam agreed to jointly invest 500 thousand USD in Wareflex in exchange for 10% of shares.

As for the remaining Sharks, Shark Binh did not invest because he was operating in the same field, Shark Minh Beta refused the deal because he did not have enough data to evaluate the startup's chances of success. Shark Louis, who had an appetite for investing in large-scale businesses, also decided not to invest.

Representing Startup Ông Bụt to Shark Tank to raise capital is Do Chi Cuong – the company’s co-founder. According to Chi Cuong, Ông Bụt was founded by a founding group of technology company directors and national award-winning teachers with a total investment of about 1.5 million USD.

Coming to Shark Tank Vietnam, Do Chi Cuong called on the Sharks to invest 1 million USD in exchange for 10% of shares, disbursed within 3-6 months and committed to return the capital within 3 years. However, the startup failed to raise capital.

Source: https://www.baogiaothong.vn/cu-bat-tay-cua-shark-hung-anh-va-tue-lam-voi-thuong-vu-nguoi-an-do-co-lam-nen-chuyen-lon-192231205173244498.htm