Conscious Chemist wow the investors on Shark Tank India with their ‘Chemicals Achhe Hai’ Approach

At a Glance:

Shark Tank India Season 3 Episode 1
Startup Name: Conscious Chemist
Founders: Robin Gupta & Prakher Mathur
Startup’s Location: Delhi
Industry/ Business Segment: Skincare
Original Ask: ₹60 Lakhs for 2% equity
Original Valuation Sought: ₹30 Crores
Funding Received: No
Valuation Received: NA
Sharks Who Invested: NA

Overview

Constantly we are caught in the middle of a battle - chemicals vs naturals. While natural is what people are leaning towards more and more these days and it is deemed to be safe, Conscious Chemist questions ‘Is organic effective? Are all chemicals bad?’ 

The brand Conscious Chemist is out to address the fear the word “CHEMICAL” invokes by creating science-backed innovative skincare products for issues that 80% of Indians face today.

Intending to create a strong product, co-founders Robin Gupta and Prakher Mathur put their soul and sweat into formulating every product from the ground up. So far, they have helped three lakh plus Indian consumers (including Robin Gupta) solve their skin ailments. Having heard of the company during the formative years, it already created an intrigue among the sharks. This new-age age skin-care and repair company came on strong and ambitious and left with sound advice from the established leaders. 

About The Founders - Robin Gupta and Prakher Mathur

Robin Gupta the CEO of the brand has a background in chemical engineering and cosmetic formulation. He has worked as a research associate at IIT Delhi and also as a product development manager at Forest Essentials.

Robin himself has been the target audience of Conscious Chemist having suffered from a skin condition called Keratosis Pilaris for which he was unable to get an OTC (over-the-counter) solution. With the determination to help himself and others like him overcome various skin issues, Robin and Prakher started Conscious Chemist.

At Conscious Chemist Robin works on the product, and handles investor relations and Prakher Mathur is the COO of the brand and is responsible for D2C, marketplaces and marketing of the brand. Prakher has gained his expertise in content marketing and sales from his prior roles at PropTiger and Schindler.

About Conscious Chemist

Founded in 2019, Conscious Chemist started with just three products and has expanded to 29 products tackling a variety of skincare and skin problems like scars, keratosis pilaris, acne, ageing, hyperpigmentation, etc.

Conscious Chemist is based out of Delhi and operates through its website and other online platforms such as Amazon, Nykaa and Flipkart. The brand has a loyal customer base and a strong online presence, with over 50,000 followers on Instagram and over 4,000 reviews on Amazon. The brand aims to become a leading player in the clean beauty segment and create a positive impact on the environment and society.

Conscious Chemist’s Products

Each product of Conscious Chemist undergoes 40-50 iterations to achieve the desired result, wherein it starts from making the composition from scratch to working with manufacturers and independent R&D experts. Their portfolio right now stands tall at 29 products. Here is a sneak peek into their five top-selling products as per our research:

• Indulge Facial Cream: This is a moisturising cream that contains bakuchiol - a natural alternative to retinol, and hyaluronic acid - a hydrating agent. This product is meant to improve skin texture, reduce fine lines and wrinkles, and brighten the complexion.

• Ritual Face Cleanser: This gentle face wash contains matcha - a powerful antioxidant, and hemp seed oil - a nourishing ingredient. It claims to cleanse the skin without stripping its natural oils, maintain the skin’s pH balance, and protect the skin from environmental damage.

• Clarify Eye Serum: This is an eye serum that contains caffeine a de-puffing agent, and niacinamide - a brightening ingredient. It helps reduce dark circles, eye bags, and fine lines around the eyes.

• Radiance Face Oil: This is a facial oil that contains rosehip oil - a healing ingredient, and squalane - a moisturising ingredient. It claims to hydrate, nourish, and repair the skin.

• Hybrid Lightweight Gel Sunscreen: This is a sunscreen that contains zinc oxide - a mineral filter, and aloe vera - a calming ingredient. It claims to provide broad-spectrum SPF 50 PA++++ protection, moisturise the skin, and prevent white cast. Namita Thappar, CEO of Emcure Pharmaceuticals especially loved the lack of chemical odour which is usually present in SPF 50 sunscreens.

Conscious Chemist’s Business Statistics

Financial Highlights:

• Initial investment: ₹3 crores

• Annual revenue: ₹4.5 crores with -65 lakhs EBITDA

• Average order value (AOV): NA

• Profitability: NA

Conscious Chemist’s Equity Structure

Founders and Investors

• Robin Gupta: 51%

• Prakher Mathur: 17%

• Lotus Herbals & Inflection Point Ventures: 32%

They raised an investment of 3 crores in the first round in September 2021 and 76 lakhs in the second round in July 2023.

Sales Split

At the moment, Conscious Chemist is an online-driven company and their products are available on e-commerce sites like Amazon, Nykaa, Flipkart and their own website. 

Year-wise Sales

Conscious Chemist’s year-wise sales are as follows:

• August 2023: Gross revenue ₹85 lakhs and Net revenue  ₹65 lakhs

• FY 23-24 (till Sept) - ₹3.6 crores (with a projection of 9 crores for the rest of the financial year)

• FY 22-23: ₹4.5 crores with an EBITDA of -65 lakhs

Feedback from the Sharks for Conscious Chemist

In the dynamic realm of Shark Tank, the exchange of ideas and feedback has proven to be a transformative force for the featured entrepreneurs. Each pitched venture becomes a focal point of intense scrutiny, as the path chosen by the entrepreneur enters the spotlight. Every success and stumble, every strategic decision and misstep is meticulously examined with precision and speculative anticipation. Shark Tank not only serves as a platform for business propositions but also as a crucible where the journey of each entrepreneur unfolds, inviting insightful commentary and strategic reflections from the seasoned sharks.

Aman Gupta (CFO of boAt) and Anupam Mittal (founder of People Group): The entrepreneurs pitched their plans to expand into new categories and establish offline partnerships. But Aman and Anupam were not convinced. They saw no clear path to success with the current financial projections. Despite having a large distributor as an investor, the entrepreneurs failed to present any innovative ideas that would give them an edge in the highly competitive market. The sharks felt that their strategy lacked creativity and did not provide them with a competitive advantage. In short, the investors were not impressed with their pitch and felt that they needed to come up with a more compelling strategy to succeed.

Namita Thapar (executive director of Emcure Pharmaceuticals): Having plans to expand and digress into different categories, Namita felt this was just the recipe for disaster for such a small revenue model. They will need to work on their revenue structures to make their company open to future prospects

Vineeta Singh (co-founder and CEO of Sugar Cosmetics): With the rising market size of skin products and how focused it is on the online market, she felt they need to focus on marketplaces and e-commerce websites. Just sticking by the efficacy of the product isn’t going to translate to sales.

Amit Jain (co-founder and CEO of CarDekho Group): According to him, the brand was missing the kind of attachment and drive that would convince him in investing into the brand. Their sales were not strong enough to promote the brand nor were they able to show how much their consumers love the products.

Funding received on Shark Tank

While Conscious Chemist wowed the judges with their product and packaging, they failed to create an impression with their big dreams and non-streamlined pathways to grow. None of the sharks found their vision promising enough to invest in. 

Competitor Analysis for Conscious Chemist

1. Brand Name - Holistic Health Hub:

   • USP: Emphasis on organic and ethically sourced ingredients for holistic well-being.

   • Business MOAT: Comprehensive product range catering to diverse wellness needs.

   • Pricing Strategy: Premium pricing aligned with the quality of ingredients.

   • Distribution Strategy: Primarily online with strategic partnerships in high-end wellness stores.

   • After Sales: Personalised wellness consultations for customers.

2. Brand Name - EcoVitae Solutions:

   • USP: Sustainable packaging and eco-friendly practices in product manufacturing.

   • Business MOAT: Strong focus on environmentally conscious consumers.

   • Pricing Strategy: Competitive pricing to attract a wider consumer base.

   • Distribution Strategy: Extensive network in both online platforms and select health stores.

   • After Sales: Regular eco-awareness campaigns for customer engagement.

3. Brand Name - BioBalance Innovations

   • USP: Cutting-edge biotechnology for advanced wellness solutions.

   • Business MOAT: Patented formulations giving a technological edge.

   • Pricing Strategy: Premium pricing due to advanced research and development.

   • Distribution Strategy: Collaboration with health professionals and online sales.

   • After Sales: Regular webinars and informational sessions for customers.

4. Brand Name - Herbal Harmony Hub:

   • USP: Herbal and Ayurvedic blends for natural health benefits.

   • Business MOAT: Time-tested formulations with a strong herbal lineage.

   • Pricing Strategy: Competitive pricing to attract a wider audience.

   • Distribution Strategy: Extensive retail presence in herbal and wellness stores.

   • After Sales: Free online consultations for personalised health recommendations.

5. Brand Name - Mindful Medicinals Ltd:

   • USP: Mindfulness and mental well-being through natural supplements.

   • Business MOAT: Focus on mental health gives a unique positioning.

   • Pricing Strategy: Mid-range pricing to target a broad consumer base.

   • Distribution Strategy: Strong online presence and collaborations with mental health professionals.

   • After Sales: Meditation and mindfulness webinars for customers' mental well-being.

Key Takeaways from the Pitch Made by Conscious Chemist

What We Like: 

Their resolve to make chemicals human-friendly, led to the creation of products that have undergone several trials before hitting production. In the most competitive market in today’s day and age, Conscious Chemist have made an impact with their products as they have managed to solve skin problems for more than three lakh customers. When your business is product-oriented, perfection must be achieved to build a trusting community of consumers.

What We Did Not Like: 

Every business person has big dreams for their venture however to achieve anything a positive working capital is required. Robin and Prakher are the proud co-founders of a great product company however their thinking is still product-driven and not sales-driven. With the capital that’s left from their previous investments, they want to venture into two major avenues which are extremely cost consuming and unpromising of the results. This left sharks as well as us with a lot of unanswered questions.

Reading Materials/ Case Study/ References

• The Flaws and Human Harms of Animal Experimentation - Case Study

• Indian Skincare Market - Overview and Growth

• Understanding Chemicals in Skincare Products

More from Shark Tank India’s - Latest Season

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

Watch Conscious Chemist’s Episode on YouTube

Beyond the Tank - Interview with Robin Gupta and Prakher Mathur, the founders of Conscious Chemist

Coming Soon…

Conscious Chemist Promo code

Here is an exclusive Conscious Chemist 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 Conscious Chemist

1. Who owns Conscious Chemist?
   A: The majority shareholder of Conscious Chemist is Robin Gupta who has a background in chemical engineering and cosmetic formulation. He has worked as a research associate at IIT Delhi and also as a product development manager at Forest Essentials. Know more about Conscious Chemist here.
   

2. Is Conscious Chemist a vegan brand? 
   A: Yes, all their products are vegan.
   

3. Does vegan mean chemical-free?

   A: Vegan products don't always have clean, green or all-natural ingredients. For instance, some vegan cosmetics companies add synthetic chemicals to their products. It's similar to vegan food. While it has healthy connotations, a lot of vegan food is highly processed and very difficult for the body to break down.
   

4. What is the legal name of Conscious chemist?

   A: The legal name of Conscious Chemist is Era Botanics Private Limited.

5. How do I cancel my Conscious Chemist order?

   A: You cannot cancel the order and demand a refund once the order is successfully placed and processed by the payment gateway. Refunds are also conditional. Refund requests will only be considered in cases if the buyer does not get the delivery of the ordered products within 30 days of placing the order