Indulge Guilt-Free: Inside Priyasha Saluja's Plant-Based Delights at The Cinnamon Kitchen on the Shark Tank India

At a Glance:

Shark Tank India Season 3 Episode 2
Startup Name: The Cinnamon Kitchen
Founder: Priyasha Saluja
Startup’s Location: New Delhi
Industry/ Business Segment: Healthy Snacks and Baked Goods
Original Ask: ₹60 lakh for 2% equity
Original Valuation Sought: ₹30 Crores
Funding Received: ₹60 lakh for 5% equity
Valuation Received: ₹12 Crores
Sharks Who Invested: Aman Gupta

Overview

The Cinnamon Kitchen, founded by Priyasha Saluja, appears to have successfully carved a niche in the health-conscious snacks market, and its growth from a small home business to a more substantial enterprise reflects positive market acceptance.

Priyasha Saluja's emphasis on plant-based, organic, and gluten-free treats positions The Cinnamon Kitchen well in the current market, where there is a noticeable shift towards healthier eating habits. The fact that the business has expanded from a small home operation to a proper business with a diverse product range is a testament to its growth and potential.

The diverse range of over 40 products, including spreads, snacks, cookies, cakes, and bread, offers a broad appeal to various customer preferences. The segment of fresh cakes made to order is an additional revenue stream and could provide a personalised touch, catering to special occasions.

The star product, the Fudge made with vegan dark chocolate dates, seems to have a strong market presence. Moreover, the utilisation of high-quality ingredients and minimal processing not only contributes to the health aspect but also speaks to the commitment to delivering a premium product.

About The Founder - Priyasha Saluja

Priyasha Saluja, founder of The Cinnamon Kitchen, has a diverse background and education that has contributed to her multifaceted role as an entrepreneur and Hormonal Health Coach.

Priyasha holds a Bachelor's degree (hons.) in Management Studies (BMS) from Keshav Mahavidyalaya, Delhi. This academic background likely provides her with a foundational understanding of business and management principles. Priyasha has also completed a certification course in short-term Financial Modelling and Advanced Excel from Edupristine, certified by BSE. This indicates proficiency in financial analysis and modelling.

Priyasha has acquired certifications in Digital Marketing, including a certification in Digital Marketing Channel Strategy from Upgrade and a course on Digital Marketing Strategy from the Delhi School of Internet Marketing. She has also completed a short-term certification course on Bargaining and Negotiation from The London School of Economics and Political Science (LSE).

Priyasha has partnered with PwC, a global professional services firm, Zodiac Clothing and has also worked as a social media specialist at Dentsu Aegis Network as part of her previous professional endeavours.

These varied educational and professional experiences position Priyasha as a dynamic entrepreneur with a well-rounded skill set, which can be valuable in navigating the challenges and opportunities in the food and wellness industry with The Cinnamon Kitchen.

About The Cinnamon Kitchen

The journey of The Cinnamon Kitchen is impressive, and it reflects a strong commitment to offering health-conscious and tasty products. The fact that The Cinnamon Kitchen began as an Instagram page in 2018 demonstrates an understanding of the power of digital platforms in building brand awareness and engaging with a community. This initial digital presence likely played a significant role in attracting the brand's early followers and customers.

The decision to move from a digital platform to a small home kitchen in 2019 suggests a response to increasing customer demand. This transition signifies the brand's agility and ability to adapt to market needs. The phased growth from a small home kitchen to a 1000 sq ft facility and subsequently to a full-scale commercial facility with over 25 employees in just a few years is a testament to the brand's scalability.

The organic growth of a celebrity following on social media is a notable achievement. It indicates that the brand's message and products have reached a wider audience, including influencers and public figures, which can significantly impact brand visibility and credibility.

Collaborations with well-known retailers like Blinkit, LeMarche, and Amazon signify the brand's ability to secure prominent placements and expand its reach to a broader customer base. The decision to start delivering throughout the country further widens the market reach, making the products accessible to a national audience. Click to get The Cinnamon Kitchen products here.

The Cinnamon Kitchen’s Products

The Cinnamon Kitchen offers a range of health-conscious products, including keto and diabetic-friendly products, granola, cookies, chips and savouries, and spreads (Click here to buy The Cinnamon Kitchen products on Amazon). Here's a more detailed breakdown of potential products within each category:

Winter Menu: They offer vegan products that are dairy-free and include seasonal fruits. Some such products include Vegan Cheeze-its, Strawberry, Banana and Cacao crunch Granola and Cardamom Biscotti.

Cookies: The star product under the cookies category was Fudge, along with other types of cookies such as Flourless Almond Butter Cookies, BEST Cookies, Lavender Lemon Butter Cookies, Giant Flourless Brookie, Levain Style fat cookies, Pack of Assorted cookies and Ginger cookies.

Healthy Bites: The healthy bites category also offers some keto-friendly dark chocolate, and vegan dark chocolate items along with the star product that is Fudge.

Spreads: They offer Vegan and Keto Nutella items along with peanut butter variants such as Vegan Butter, Natural Almond Butter, Chocolate Crunchy Peanut Butter, Chocolate Almond Butter, Keto Nutella etc.

Granola: This category offers keto, almond fruity granolas such as Strawberry, Banana and Cacao crunch granola, Fig and Almond granola and Keto Almond granola.

Chips and Savouries: The category offers vegan and gluten-free crackers and chips such as Methi Millet Crackers, Spicy Vegan Cheddar chips, Nut and Seed Crackers, and Gluten-free Aata to name a few.

Keto and Diabetic Friendly: This category clearly offers Keto and Vegan dark chocolates, almond butter, keto flourless cakes, keto Nutella etc.

Fresh Bakes: Fresh bakes usually include crumble cakes, almond flour cakes, banana bread, marbled cheesecake etc.

The Cinnamon Kitchen’s Business Statistics

Financial Highlights:

• Initial Investment: ₹ 50,000 

• Equity Share: Priyasha’s share – 99%, Priyasha’s mother’s share – 1%

• Monthly Profit: 30%

The Cinnamon Kitchen’s Equity Structure

• Founder - Priyasha Saluja: 99%

• Priyasha’s Mother: 1%

Founder Priyasha Saluja holds 99% equity, and her mother holds 1% equity of The Cinnamon Kitchen.

Sales Split

The sales split (FY 22-23) of The Cinnamon Kitchen is:

• Packaged Items – 75%

• Fresh Cakes and Bakery – 25%

In the last six months, 75% of sales came from packaged items, and 25% from fresh cakes and bakery items. They sell through their website and well-known platforms like Blinkit, LeMarche, and Amazon. 

Year-wise Sales

The Cinnamon Kitchen’s year-wise sales are as follows:

• FY 2023 -2024 – ₹6 Crore (Projected Sales) (₹1.3 crore is estimated till September ‘23)

• FY 2022 – 2023 -₹82 Lakh

• FY 2021 – 2022 – ₹25 lakh

• FY 2020 – 2021 – ₹12.5 lakh

• FY 2019 – 2020 – ₹1.4 lakh

The monthly profit of The Cinnamon Kitchen is 30%.

These statistics provide a clear picture of The Cinnamon Kitchen’s financial performance and business model. The company’s success is a testament to its effective strategies and commitment to its customers.

Feedback from the Sharks for The Cinnamon Kitchen

This episode of Sony Television's 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 Deepinder Goyal (founder and CEO of Zomato).

Namita led the charge, expressing reservations early on due to concerns about the small size of the healthy snacks market and the intense competition.

Vineeta made a bold move with the first offer valuing The Cinnamon Kitchen at ₹6 Crores. Her investment was framed as a calculated bet on Priyasha and the distinctive offerings of her health-conscious snacks. Anupam sought to join Vineeta's offer. However, a new twist emerged when Aman introduced a distinctive proposition, that superseded the other sharks.

Deepinder Goyal, assuming an advisory role, nudged Priyasha to secure more funds for greater equity. Vineeta gracefully bowed out, sensing Priyasha's inclination towards Aman. The final pact was forged with an equity stake, showcasing Priyasha's negotiation prowess and strategic decision-making capabilities. 

Funding received on Shark Tank

Priyasha's confident presentation and the appeal of The Cinnamon Kitchen's health-conscious snacks resonated with the investors on the show. Namita Thapar had an early exit, citing concerns over the niche size of the healthy snacks market and its fierce competition.

Vineeta made the plunge with the first offer—₹60 lakhs for a 10% stake, valuing the business at ₹6 Crores. Anupam, expressing personal interest, sought to join Vineeta's offer. The duo jointly proposed ₹60 Lakhs for 10%, maintaining the initial valuation. Aman introduced a unique proposition—₹10 Lakhs for 2% equity and the remainder as debt at 12% interest over 2 years. Priyasha, aiming for a straightforward equity deal, countered all Sharks at ₹60 Lakhs for 4%.

However, Deepinder Goyal cited a conflict of interest, abstaining from investments in restaurants, bakeries, and D2C brands due to affiliations with Zomato and Blinkit.

Aman, staying in the game, sealed the deal at ₹60 Lakhs for a 5% stake after a brief negotiation. Deepinder Goyal, playing the role of an advisor, nudged Priyasha to raise more funds for greater equity. In response, she opted for a strategic move, pitching ₹1.2 Crores for a 10% stake, valuing The Cinnamon Kitchen at ₹12 Crores.

As negotiations unfolded, Priyasha inclined more towards Aman’s offer, which led to Vineeta bowing out of her offer. The deal was ultimately struck at ₹60 Lakhs for a 5% equity stake.

Competitor Analysis for The Cinnamon Kitchen in India

In the Healthy Snacks and Bakery Goods industry, The Cinnamon Kitchen faces competition from several established brands. Here’s a look at five such competitors:

1. Bakingo

   • USP: Known for its wide variety of cakes and pastries, with a focus on occasion-based offerings.

   • MOAT: Strong online presence and efficient delivery system.

   • Pricing Strategy: Competitive pricing with occasional discounts and offers.

   • Distribution Channels: Primarily online through their website and app.

   • After Sales: Offers customer support through email and phone.

2. WarmOven

   • USP: Freshly baked goods delivered warm to your doorstep.

   • MOAT: Unique selling proposition of delivering warm baked goods.

   • Pricing Strategy: Premium pricing for the unique experience they offer.

   • Distribution Channels: Online through their website and app.

   • After Sales: Customer support available through email, phone, and social media.

3. Karachi Bakery

   • USP: Renowned for its fruit biscuits and wide range of bakery products.

   • MOAT: Brand recognition and reputation for quality.

   • Pricing Strategy: Competitive pricing.

   • Distribution Channels: Physical stores and online sales.

   • After Sales: Customer support available through their stores and online platforms.

4. Theobroma

   • USP: A popular chain known for its brownies and other decadent baked goods.

   • MOAT: Brand recognition and reputation for quality.

   • Pricing Strategy: Mid-range to premium pricing.

   • Distribution Channels: Physical stores, online sales, and tie-ups with food delivery apps.

   • After Sales: Customer support available through their stores and online platforms.

5. The Bombaykery

   • USP: Offers a mix of classic and innovative baked goods.

   • MOAT: Known for their creative twists on traditional baked goods.

   • Pricing Strategy: Competitive to premium pricing.

   • Distribution Channels: Online sales and physical stores.

   • After Sales: Customer support through email, phone, and social media.

The Cinnamon Kitchen focuses on providing excellent customer service, addressing queries promptly, and ensuring the satisfaction of customers with their products.

Key Takeaways of The Cinnamon Kitchen

What We Like: 

The Cinnamon Kitchen has several appealing aspects:

• It offers vegan and gluten-free cookies and dark chocolates, which are healthy and perfect for dessert lovers who can snack without guilt.

• The fresh bakes are also impressive as they offer healthier options such as almond flour cakes and banana bread as well.

• It is good to see the founder turning a disease/weakness such as PCOS into a viable and profitable business.

What We Did Not Like: 

However, there are a few areas where The Cinnamon Kitchen could improve:

• Some of the products are still only available in Delhi-NCR, efforts could be made to expand to cater to different cities.

• The price of products could be made competitive or a bit less to make them more affordable.

Reading Materials/ Case Study/ References

• India Gluten-Free Products Market Analysis

• India's Resounding Vote for Veganism unveiled.

• How is vegan food disrupting the Indian market? 

More from Shark Tank India’s - Latest Season

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

Watch The Cinnamon Kitchen’s Episode on YouTube

Beyond the Tank - Interview with Priyasha Saluja, the founder of The Cinnamon Kitchen

Coming Soon…

The Cinnamon Kitchen Promo code

Here is an exclusive The Cinnamon Kitchen 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 The Cinnamon Kitchen

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

2. What does The Cinnamon Kitchen menu offer?

   A: The Cinnamon Kitchen menu features a fusion of contemporary Indian and global cuisines, showcasing a diverse array of dishes inspired by traditional Indian flavours.

3. Is there a branch of The Cinnamon Kitchen in Bangalore?

   A: Yes, The Cinnamon Kitchen has a presence in Bangalore, offering its unique culinary experience to the residents of the city.

4. Are The Cinnamon Kitchen cookies available on the menu?

   A: Yes, The Cinnamon Kitchen menu may include delightful cookies, presenting a sweet and flavourful addition to their culinary offerings.

5. Does The Cinnamon Kitchen collaborate with Blinkit for delivery services?

   A: The Cinnamon Kitchen may partner with Blinkit to provide convenient delivery services, ensuring customers can enjoy their favourite dishes in the comfort of their homes.

6. Is there a branch of The Cinnamon Kitchen in Gurgaon?

   A: Yes, The Cinnamon Kitchen has a presence in Gurgaon, offering its culinary delights to the residents of this vibrant city.

7. Can I find The Cinnamon Kitchen in Delhi?

   A: Absolutely, The Cinnamon Kitchen has a presence in Delhi, allowing patrons to indulge in their unique and flavourful dishes.

8. What products does Cinnamon Kitchen offer?

   A: The Cinnamon Kitchen presents a range of products, including culinary delights that fuse traditional Indian flavours with global influences. This diverse offering may include cookies, snacks, and more.

9. Does The Cinnamon Kitchen operate in multiple locations in India?

   A: Yes, The Cinnamon Kitchen operates in various locations across India, providing a consistent and exceptional culinary experience to its patrons.

10. Are The Cinnamon Kitchen products available throughout India?

    A: The Cinnamon Kitchen products may be available for purchase and delivery throughout India. It's advisable to check with the specific location or visit the official website for more details.