Shark Tank Vietnam season 6 episode 6 welcomes Vietnamese handbag brand Chautfifth to raise 5.5 billion for 5% of shares. This brand went viral after Thuy Tien took a photo together and most recently, the beauties of Miss Grand International 2023 also competed to "show off their figure".
Identifying the target customers as the late Millennials and GenZ group with purchasing behavior of finding novelty, every month Chautfifth launches a new product.
Shark Binh and Hoang Chau - Founder, Director and Creative Director successfully closed a 10 billion VND deal with 20% of shares.
The product is made from PU leather, tested by Hoang Chau - Founder, Director and Creative Director for continuous use for 7 months without cracking or peeling before mass production.
Estimated revenue in 2023 is 60 billion
Currently, this brand has 11 handbag collections with unique designs such as flower-shaped bags, boat-shaped bags, butterfly-shaped bags... To market products to target customers, they run Facebook and Instagram ads and livestream (live broadcast) sales via TikTok. The lowest retail price is 895 thousand VND and the highest is 1 million 395 thousand VND.
Calling on the Sharks to invest 5.5 billion in exchange for 5% of shares, equivalent to a company valuation of up to 104 billion, Hoang Chau explained that although the brand has only been officially in business for 17 months, it has sold nearly 30,000 bags.
In the first 9 months of 2023 alone, Chautfifth's revenue was 19.2 billion and is expected to reach 30 billion by the end of the year with pre-tax profit of 27%.
Chautfifth's 2024 revenue is expected to double to $60 billion.
After listening to the startup share, Shark Binh spoke up: "The dragon vein of Chautfifth lies in you, the human factor, not the product or marketing method."
In response, Hoang Chau said that she has a business background so she has a firm grasp of numbers. In addition, she is also building a design team so that this startup does not depend on herself alone.
“Design is what makes Chautfifth stand out in the market. However, business operations are the core for Chautfifth to reach the 50 billion mark this year,” Hoang Chau affirmed.
A bag costs 1 million, after 5 years the business wants to reach 20 million USD
With a goal of reaching 20 million USD in 5 years and expanding to the region, Hoang Chau said this year's profit and the capital of 5.5 billion VND mobilized from investors will be used to expand into the shoe and homeware (decoration) industries.
In addition, part of the budget will be used by the startup to cooperate with major KOLs in Thailand to expand the market in this country.
Seeing that the startup was doing very well, Shark Tue Lam refused to invest. Similarly, Shark Minh Beta also praised the brand's product development, communication, and marketing. However, because he did not see the brand's long-term success potential and realized that it did not bring much value to the startup's business model, the Chairman of the Board of Directors of Beta Group also left the deal.
Although he appreciated what the startup was doing, Shark Louis also refused to invest because the startup was operating in a very competitive segment.
The Sharks all left the deal, but Shark Binh and Shark Hung Anh continued to "strike".
With the advantage of investing in an online men's fashion brand, having the technology to manage when scaling up and having a retail warehouse system available throughout Southeast Asia, Shark Binh believes that these values are essential for startups. Therefore, he proposed to invest 10 billion in exchange for 30% of the shares.
Competing with Shark Binh, Shark Hung Anh also offered to invest 10 billion in exchange for 25% of shares.
Negotiating with the two Sharks, Hoang Chau said the share level she could share was 17.5%.
Shark Hung Anh immediately spoke up: "Then now I have 20%".
“Me too 20%,” Shark Binh continued.
Confused by two identical investment offers, but after some consideration, because he was using mPOS, NextTech's mobile payment device, Hoang Chau finally decided to accept Shark Binh's investment offer of 10 billion in exchange for 20% of shares and support from the group's ecosystem.
The 4th runner-up of Miss Grand International 2023 and the contestants also took photos with this low-cost brand.
Miss Peru Luciana Fuster of the Miss Grand International 2023 contest holds a bag of 1 million VND for a photo shoot.
Thuy Tien once took a photo with the Vietnamese handbag brand Chautfifth, which only costs 1 million VND.
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