Earthful: Natural Supplements for Menopausal Women

Earthful, a natural supplements brand created by two sisters from Hyderabad, showcased their innovative product on the recent episode of Shark Tank India. Their primary offering is a supplement pill designed specifically for menopausal women. The sisters aimed for a significant valuation of Rs 75 crore and requested Rs 75 lakh for a 1% stake, demonstrating impressive growth from their initial earnings.

Concerns Raised by Investors

Although there was initial interest from the panel, multiple red flags emerged during the pitch.

Product-Market Fit Issues

Kunal Bahl, the founder of Titan Capital, raised concerns regarding the product’s market fit. He pointed out the concerningly low rates of repeat purchases and noted that even with a compelling product — a pill aimed at menopausal women — the founders needed to invest in marketing to gain returning customers. As a result, he opted out of the deal.

Concerns About Efficacy and Shelf Life

Vineeta Singh, co-founder and CEO of SUGAR Cosmetics, expressed alarm when the sisters mentioned that the pills should ideally be consumed within two months for optimal results, despite having a shelf life of 12 months. The sisters explained that their recommendation for users to complete a bottle within a two-month timeframe stemmed from a desire for quick inventory turnover, leading Singh to comment that this situation was alarming.

Product Messaging and Clinical Trials

Namita Thapar, executive director at Emcure Pharmaceuticals, voiced her worries about the language used to describe the product. She questioned why anyone would want to use a product after it had lost effectiveness. Thapar further noted that the terminology could easily be misinterpreted as suggesting it had expired.

Both Thapar and Anupam Mittal, founder of Shaadi.com, expressed scepticism regarding the absence of clinical trials in support of the product claims. Anupam pointed out that the founders were making significant assertions without any trial verification. Additionally, he critiqued the tagline, “Nutrition that feels like comfort food,” stating that he couldn’t fathom how pills could be classified as comfort food. As a result, Singh also decided to withdraw her offer, citing concerns over financial and logistical aspects.

Challenges Beyond Product-Market Fit

Vineeta Singh clarified that while she did not attribute the problems to product-market fit alone, there were larger issues at play. Despite the founders’ report of financial losses, Singh noted that the losses were reducing. She remarked that the primary issue was the pill’s 12-month shelf life, which could complicate the delivery timeline, allowing for up to four months just for shipments. She warned that not accounting for inventory that might expire could present significant dangers for a business already operating at a loss. Additionally, she pointed out that only 35% of customers were returning within a year, a figure she deemed insufficient.

A Deal Accepted

Notwithstanding these concerns, Ritesh Agarwal stepped in with a conditional offer, suggesting Rs 75 lakh for a 2.5% equity stake, which could be negotiated down to 2% based on achieving projected revenue goals. The sisters accepted this compromise deal.