Vineeta Singh Backs 'Gunda of the Industry': AdilQadri Perfumes Gets Rs. 1 Crore Deal on Shark Tank India

At a Glance:

Shark Tank India Season 3 Episode 1
Startup Name: AdilQadri Perfumes
Founder: Mohamadadil Asif Malkani, a.k.a. Adil Qadri
Startup’s Location: Haryana
Industry/ Business Segment: Perfumes & Fragrances
Original Ask: ₹1 crore for 0.5% equity
Original Valuation Sought: ₹200 Crores
Funding Received: ₹1 Crore for 1% equity + 1% royalty until ₹1 Crores is Recouped.
Valuation Received: ₹100 Crores
Sharks Who Invested: Vineeta Singh

Overview

AdilQadri Premium Fragrances came to life with one clear intent - conquering the attar market before anyone ever decides to step foot in it. The brand’s founder, Adil Qadri (after whom the brand is named as well) entered the market after realising that perfumery is in his bones considering his father used to work in a small attar and perfume shop. Since then Adil has elevated the product and made sure the requirements for a large scale demand are met.

AdilQadri perfumes assure long-lasting fragrance, intending to become a premium brand and stand tall amongst the biggest names within the world market. By capturing the online market the brand receives more than 3000 orders daily. It has managed to leave a fragrant trail in its wake and has become a best seller on Flipkart as well as Amazon, with a mere 3.8 rating when the episode was recorded.

This aromatic brand is not just present online but offline too and has 3 walk-in stores set up in Gujarat, Mumbai and Dubai. With a hefty experience backing him till day, Adil Qadri appears confidently at Shark Tank India to gain an investment and pump up some running capital into his company.

About The Founder - Mohamadadil Asif Malkani, aka Adil Qadri

Mohamadadil Asif Malkani, aka Adil Qadri, the founder of AdilQadri Perfumes, had a difficult childhood due to his illness that even led to him giving up schooling. However at heart, Adil knew that he wanted to do something, so this student of life learnt various things through different courses including becoming an SEO expert. However, despite these efforts, progress remained elusive.

But giving up is not in Adil’s nature. Drawing inspiration from his father’s 25 years of experience in the art of crafting Attars, Adil, saw an opportunity to enhance the products’ quality and introduce enduring fragrances. This marked the genesis of AdilQadri Perfumes, where tradition meets innovation.

About AdilQadri Perfumes

AdilQadri Perfumes is a brand that has been making waves in the fragrance industry since its inception in 2018. The brand has managed to establish itself as a highly successful online perfume store, with a 3.8 rating on Amazon and being the best-selling perfume brand on both Amazon and Flipkart. The brand offers a wide range of products, from attars and perfumes to body perfumes and even incense sticks.

The brand’s purpose is to consistently provide high-quality and long-lasting perfumes to its customers. It also ensures that the varying preferences and needs of its customers are met. Their brand’s commitment to quality and customer satisfaction has contributed to its success in the competitive online market for perfumes.

While being the best seller online, Adil Qadri Perfumes has also connected with customers on a more personal level by giving them a unique shopping experience at their three walk-in stores present in Gujarat, Mumbai and Dubai. Their vision is to be the name that is listed in the same league as international perfume giants.

AdilQadri Perfumes’ Products

AdilQadri Perfumes has a wide range of products that cater to the varying preferences and needs of its customers. Here are the details of 5 of their highly popular products:

• Shanaya Luxury Attar Perfume: A fusion of Arabic and French elegance, Shanaya is a rich blend of amber and oudh, delicately balanced with caramel notes. It is the most popular product in their inventory.

• Safwan Luxury Attar Perfume: A unique blend of musk and floral notes, Safwan is a long-lasting fragrance that is perfect for everyday wear.

• Taabish Luxury Attar Perfume: A refreshing blend of citrus and floral notes, Taabish is exclusively made for those who prefer a lighter scent.

• Lavish Musk Premium Attar Perfume: A rich and luxurious fragrance, Lavish Musk blends musk and floral notes together that makes it a perfect perfume for special occasions.

• Assorted Luxury Attar Perfume Gift Set: This is a gift set that includes 6 different attars, each with a unique fragrance. The set includes Shanaya, Safwan, Taabish, Al Faiz, White Diamond, and Dubai Gold.

AdilQadri Perfumes’ Business Statistics

Financial Highlights:

• Initial investment: NA

• Annual revenue: ₹20.7 crores on 1% EBITDA

• Average order value (AOV): ₹800

• Profitability: NA

• Equity structure: NA

Unit Economics of AdilQadri Perfumes

The unit economics of the company are as follows:

• Sales: 100%

• Making cost: - 30%

• Gross margin: 70%

• Advertisement cost: -40%

• Shipping cost: -14%

• Operational cost: -20%

• EBITDA: -4%

Sales Split

For the year FY22-23, the sales split was as follows:

• Offline 5%

• Online 95%

Calling himself the ‘Gunda of Attar Industry’, Adil wants to take over the whole market with his perfumes. With over 10 Lakhs + orders since 2018, the brand has already made its mark on Amazon and Flipkart.

Year-wise Sales

• Till August 2023: ₹6 crores

• FY 2022 – 2023: ₹20.7 crores with 1% EBITDA

• FY 2021 – 2022: ₹10 crores with 1.5% EBITDA

• FY 2020 – 2021: ₹5.3 crores with 3.5% EBITDA

Although the sales seem to go up his EBITDA numbers seem to be dwindling down and causing him to burn money to keep his company running.

Feedback from the Sharks for AdilQadri Perfumes

This episode of Shark Tank India Season 3 features prominent sharks like Aman Gupta (CFO of boAt), Anupam Mittal (founder of People Group), Namita Thapar (executive director of Emcure Pharmaceuticals), Vineeta Singh (co-founder and CEO of Sugar Cosmetics), and Amit Jain (co-founder and CEO of CarDekho Group).

The sharks in Shark Tank India don’t just offer investments to entrepreneurs but also guide them on how they should go about doing certain things with their businesses. And Adil Qadri was not exempt from this. Here is what the prominent business owners and leaders had to say about his business:

Aman Gupta expressed his concerns with not just Adil’s business margin but also the possibility of oudh market riding and then AdilQadri perfumes having crazy competitions which could lead to significant challenges.

Namita Thapar, an ardent aromaphilic, found the fragrances to be too strong and she couldn’t enjoy the product and therefore couldn’t invest in his business.

Amit Jain strongly believed that AdilQadri’s success is owed to their performance marketing efforts and thus lacks brand understanding. Every business should strive to grow organically eventually so that a loyal customer base can be built.

Anupam Mittal felt that long-term planning was missing and he should focus on ruling the industry instead of dominating it. Growth and stability over experimentation.

Vineeta Singh advised Adil Qadri to halt the excessive spending, especially on performance marketing and decelerate the growth rate to alleviate the burden of debt.

Funding received on Shark Tank

With all the promising figures and the amount of sales he’s done, Adil still needs running capital to scale his product. His previous investments have always been in the form of debts from non-banking financial companies (NBFCs). And his plan ahead is to take more money from other NBFCs or Government banks which may not be possible. Commercial Banking Institutions.

Co-founder and CEO of Sugar Cosmetics Vineeta Singh was really impressed by his struggle-to-success story. Saw a lot of potential in him and believed that she could help him by not only supporting his business but also guiding him out of the debt trap.

Vineeta offered him INR 1 Crore with 1% equity +1% royalty until the 1 Crore is recouped.

Realising that it was time to bring in expertise and stop experiments, Adil Qadri accepted the offer!

Competitor Analysis for AdilQadri Perfumes in India

In the perfume segment, AdilQadri Perfumes faces competition from several established brands. Here’s a look at three such competitors:

1. Villain

   Villain's main ability is to captivate customers with bold, story-driven scents crafted from high-quality ingredients, all while staying true to their unique brand identity and Ahmedabadi roots. This combination creates a differentiated experience that keeps them ahead of the competition and attracts a loyal following.
   

2. Project perfumery

   The company aims to provide nice and designer perfumes. They also have a sense of community with online forums, fragrance workshops, and events, fostering a love for all things perfume.
   

3. Isak Perfumes: Unravelling the Lucknow Essence

   Isak Perfumes, hailing from the heart of Lucknow, India, offers a distinct fragrance experience, blending traditional Indian attars with contemporary sensibilities.

Key Takeaways of AdilQadri Perfumes

What We Like: 

Adil Qadri is a very determined person, something we believe every business owner should be. If you are not hungry enough to make your business successful, no one else will be. We loved that not only does he want to create a big name for his brand in the perfumery industry, but he wants to do it sustainably and so is ready to learn and do this the right way and not make all his efforts go in vain.

What We Did Not Like: 

His reliance on performance marketing to scale his business. Performance marketing should be treated as a boost to your business and not a necessity. As Amit Jain pointed out, AdilQadri Perfumes should aim to eventually become a brand that people automatically come to and it grows organically. Building a loyal customer base is more important as burning money can only take you so far.

Rest remains the same. 

Reading Materials/ Case Study/ References

• How To Start Making Your Own Fragrances

• How India's Perfumers Recreate The Smell Of Rain On Earth

More from Shark Tank India’s - Latest Season

Read more about the startups featured on the Shark Tank India’s latest season:

Watch AdilQadri Perfumes’ Episode on YouTube

Beyond the Tank - Interview with Adil Qadri, the founder of AdilQadri Perfumes

Coming Soon…

AdilQadri Perfumes Promo code

Here is an exclusive AdilQadri Perfumes coupon code for Beyond the Tank Community members:

Coming Soon…

About Shark Tank India

Shark Tank India, a reality show, offers aspiring entrepreneurs the chance to present their business ideas to potential investors, known as "sharks." Launched in 2009 in the United States, it has since been adapted globally, including in India. Contestants on Shark Tank India pitch their ideas to multiple sharks in a dynamic, high-stakes setting. If a shark expresses interest, they can make an offer and potentially become an investor in the showcased business.

FAQs for AdilQadri Perfumes

1. Where can I find more information about AdilQadri's products?
   A: You can find detailed information about AdilQadri's products on their official website (here).
   

2. What is AdilQadri Perfume? 

   A: AdilQadri Perfume is a premium range of fragrances crafted by Adil Qadri. The perfumes are known for their long-lasting scent and unique blends.
   

3. Where can I find an AdilQadri shop near me? 

   A: AdilQadri has both online and physical stores. You can visit the official website for store locations or purchase directly online.
   

4. What is AdilQadri Attar? 

   A: AdilQadri Attar is a collection of premium and alcohol-free fragrances. They are concentrated, providing a long-lasting scent experience.

5. Q: What is included in the AdilQadri Attar Combo Pack? 

   A: The AdilQadri Attar Combo Pack includes a selection of their best-selling attars. The specific attars in the combo can vary.

6. Q: What is AdilQadri Shanaya? 

   A: AdilQadri Shanaya is one of the popular fragrances offered by Adil Qadri. It is known for its unique and captivating scent.

7. Q: What is the price of Adil Qadri perfume? A: The price of Adil Qadri perfume varies depending on the specific fragrance and size. Please visit the official AdilQadri website for the most accurate pricing.