Growth from 40 - 46%/year, revenue 157 billion VND
Shark Hung Anh shakes hands with Nguyen Thi Van Anh - Founder and CEO of Tri Viet Phat Company.
Appearing in Shark Tank Vietnam season 6 episode 2, Nguyen Thi Van Anh - Founder and CEO of Tri Viet Phat Company called on the Sharks to invest 22 billion in exchange for 5% of the company's shares.
Graduated from the University of Science and Technology, Faculty of Chemistry - Food and with 11 years of experience working at multinational companies as a food technology engineer and sales engineer, Van Anh realized that Vietnam had to import many food products, including raw materials and finished products. Therefore, she and her husband founded Tri Viet Phat in 2012 to produce spices from Vietnamese raw materials to supply to B2B (Business to Business) customers in the domestic market.
After nearly 10 years, the company has owned a 6,000m2 FSSC 22000 standard factory and 3 brands: Tri Viet Phat - specializing in wholesale spices; Gungon - retail spice brand; convenient drink line is Wil.
Besides, Tri Viet Phat's products have also been exported to the US and Japanese markets.
According to the female founder, despite the difficult economic situation in recent years, Tri Viet Phat Company has still grown by 40 - 46% per year. Most recently, revenue in 2022 reached 157 billion, net profit was 10%. The target for 2023 is that Tri Viet Phat's revenue will reach 187 billion.
This information made Shark Hung wonder: "Why are you calling for 22 billion? Because the financial picture looks very healthy."
Van Anh shared her ambition to become a global company worth 1,000 billion in the next 4 years. “A global company is one that first has an IPO. Next, its products can be sold in many places and, even better, has a factory in another country,” the female founder explained.
In addition, she is also confident that Tri Viet Phat has no competitors because it is not easy to achieve FSSC 22000 standards.
Chasing % among the "sharks", Shark Hung Anh swung a million USD deal
Assessing that the startup had a complete product, good financial picture and profit, Shark Hung Anh was the first "Shark" to close the deal with an offer of 22 billion for 20% of shares.
Interested in the spice sector and having invested in a similar manufacturing company in Thailand, Shark Hung offered to invest 22 billion in exchange for 15.1%, with a business valuation of 1.5 times the book value of equity, which is 123 billion.
Shark Binh is the next investor to join the deal with an offer of 22 billion in exchange for 15% of shares with the condition that the startup must pay dividends of at least 15% of the investment.
Nguyen Thi Van Anh confidently said that this year will reach 187 billion in revenue and next year will reach 260 billion because she has invested in technology but has not used it yet. Therefore, she made another call for 22 billion for 11% of shares.
Nguyen Thi Van Anh calls for investment in Shark Tank Vietnam season 6.
Faced with the female startup's confidence, Shark Hung Anh decided to change his ownership ratio to 15%, equal to Shark Binh's. Immediately, Shark Binh said his ownership would be 14%.
“I’ll close the deal with you now. If the numbers you gave are correct, 24 billion for 15% of the shares,” Shark Hung Anh said. “Then I’ll change the deal to 22 billion for 13%,” Shark Binh continued.
Keeping the original offer of 22 billion for 15.1%, Shark Hung said he has important values. “In business, one must look at market potential. Who can take care of your output? Who can take care of your market?”, Chairman of the Columbus Partners Investment Council persuaded.
Before the three Sharks' "chase" of each number, Van Anh discussed with her husband and decided to accept Shark Hung Anh's investment offer of 24 billion for 15% of shares.
Thus, Tri Viet Phat is the next female startup to successfully call for million USD capital on Shark Tank Vietnam season 6 and is also Shark Hung Anh's second million USD deal in Shark Tank this season.
Shark Binh spends 500,000 USD to get 15%
Banh Mi Xin Chao went on Shark Tank Vietnam to raise capital, committing to develop 50 stores in two years. Although in 7 years of operation, the brand has only had a total of 15 stores and branches in Japan.
Banh mi Xin Chao is a Vietnamese bread brand in Japan founded by Bui Thanh Tam and his brother Bui Thanh Duy. This is a chain of stores including franchise stores specializing in serving Vietnamese bread and dishes in Japan.
Bui Thanh Tam called on the Sharks to invest 500,000 USD.
Bui Thanh Duy and Bui Thanh Tam were born into a farming family in Dai Loc district, Quang Nam province. The two brothers are former international students in Japan and have lived and worked in this country for 10 years.
With the support of his brother, a small shop serving traditional Vietnamese-flavored sandwiches called Banh Mi Xin Chao was born in October 2016 on Waseda Dori - a bustling culinary street in Tokyo. After 7 years, Banh Mi Xin Chao now has a total of 15 stores and branches in Japan.
Bui Thanh Tam called on the Sharks to invest 500,000 USD for 9% of shares. He said the reason for coming to Shark Tank Vietnam to raise capital was to build a Vietnamese F&B brand, classy and prestigious, not only in Japan but also reaching out to the world.
Thanh Tam said that Banh Mi Xin Chao has grown continuously by 170% for five consecutive years. In the past three years, revenue in 2020 including both managed and franchised goods was 550,000 USD, in 2021 it was 950,000 USD and in 2022 it was 1.45 million USD. Pre-tax profit in 2022 was 11%.
In the system of 15 stores, there are 5 stores owned by Thanh Duy and Thanh Tam brothers and the remaining 10 stores are franchises. Partners need to pay about 20,000 USD to franchise the Banh Mi Xin Chao brand for 5 years, 40,000 USD for setup and other costs related to premises and deposits.
Thus, to have a franchise store will cost about 70,000 - 80,000 USD, some stores need over 100,000 USD but the revenue achieved will be about 45,000 USD.
Franchisees will receive the main ingredients from Banh Mi Xin Chao's central kitchen and make their own simple vegetables such as onions, cilantro, and pickles. To ensure quality, all ingredients after processing will be frozen at minus 23 degrees Celsius and stored at the same temperature at the franchise store. Depending on the number of customers, they will be defrosted each day to serve.
Currently, Banh Mi Xin Chao manages inventory by transferring all products in order to stores before starting to make new products and has not yet applied any technology to manage this issue.
However, the deal was successful when Shark Binh invested 500,000 USD for 15% of shares.
Shark Tue Lam and Shark Erik also turned down the deal for similar reasons. Only Shark Binh and Shark Hung Anh were interested. Shark Binh said he would invest $500,000 for a 15% stake on the condition that the startup would develop 50 stores within 2 years, including a main store and a food truck. The deal was successful.
Calling for 8 billion VND in capital for 30% of shares, Tran Quang Huy - Founder of Kiz company shared that it will be used to design products and accessories revolving around the main products such as: hats, sportswear, sports shoes... and for promotional purposes, as well as community building.
Kiz's business model includes retailing children's balance bikes; organizing balance bike races; organizing balance bike racing events for kindergartens; organizing living models, training motor skills, and balance bike riding skills for children. However, this deal ended empty-handed.
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