The Honest Home Company: Mayank Sisodia’s Mission to Make Sustainability Effortless, as Featured on Shark Tank India

At a Glance:

Shark Tank India Season 3 Episode 1
Startup Name: The Honest Home Company
Founder: Mayank Pratap Sisodia
Startup’s Location: Haryana
Industry/ Business Segment: Home Cleaning and Daily Use Products
Original Ask: ₹1 Crore for 2% equity
Original Valuation Sought: ₹50 Crores
Funding Received: ₹1 Crore for 3% equity + 1% royalty until ₹1.5 Crores is Recouped.
Valuation Received: ₹33.33 Crores
Sharks Who Invested: Amit Jain

Overview

The founder, Mayank Sisodia, of The Honest Home Company, always believed in giving back to the Earth what we take from it. The escalating issue of plastic waste accumulation and the rapid growth of massive dump sites signal the urgent need to cut down on plastic use. Using biodegradable materials is the need of the hour.

You get Plastic for FREE when you purchase anything. It is being mass-produced rapidly, replacing various aspects of our daily lives, including furniture, automobiles, home utilities, toys, equipment, and more, at a more affordable rate. The consumption rate is on the rise, fueled by the easy accessibility of plastic products.

The Honest Home Company offers a distinctive advantage, by minimising waste from commonly used home utilities. Its goal is to empower consumers to make informed decisions, resulting in less recyclable waste.

While other brands in India focus on biodegradable packaging, they are primarily centred around utensils (e.g., eco-ware). However, none of these companies specifically cater to sustainable packaging for everyday home products.

The Honest Home Company emphasises biomass packaging and specialises in a wide range of table service, food service, and janitorial supplies.

Biomass packaging refers to eco-friendly packaging materials made from natural, renewable resources such as plants, farm waste, and other organic materials. These materials are increasingly being used in place of traditional plastic and paper packaging to reduce waste and promote sustainability. Biomass packaging options include products such as biodegradable plastics, cellulose-based materials, and natural fibre composites. These materials are designed to be compostable or recyclable, reducing the environmental impact of packaging waste.  

About The Founder - Mayank Sisodia

Mayank Pratap Sisodia, the founder of The Honest Home Company, is an entrepreneur with a decade of sales experience and a passion for making a difference. Hailing from the small city of Dhampur in Uttar Pradesh, Mayank was raised in an interconnected ecosystem of village life, where reverence for the earth and love for the soil was instilled in him from an early age. This reverence is reflected in the earthy colours of The Honest Home Company.

An MBA graduate, Mayank has gained on-site sales experience with major companies such as Parle Private Limited and Hindustan Unilever Private Limited. His tenure with an Ayurvedic startup inspired him to create everyday products that use minimal plastic, are free of toxic chemicals, are manufactured with organic raw materials, and are delivered in recycled packaging.

Despite being turned down by over 80 venture capitalists for business investment, Mayank has built a solid foundation of customer understanding from his extensive sales experience. His commitment to honesty led to the creation of The Honest Home Company. In his Shark Tank pitch, he emphasises that they do not deceive people in the name of eco-friendliness and are committed to providing sustainable products.

Raised in a culture that believes real wealth lies in the respect gained over a lifetime of making a difference in the world, Mayank views honesty as the cornerstone of his belief system. He is driven by the idea of giving back to the earth as much as it gives to us.

The Honest Home Company embodies these ideals. The products are created to give back to the planet and are developed to the highest standards of honesty and integrity.

During a pitch, it was shared that a company called The Honest Company, owned by an actress named Jessica Alba, already exists in the United States and Mayank wasn’t aware of the same. This created a dispute later on, but eventually, Mayank was allowed to keep using his Brand name for The Honest Home Company.

About The Honest Home Company

The Honest Home Company is a collective of innovators, committed to developing solutions that facilitate a seamless transition to sustainable and eco-friendly lifestyles. In a world where climate change is an undeniable reality, the urgency to enact significant changes is more critical than ever. The legacy we leave for future generations depends on our actions today.

However, effecting widespread change requires more than just awareness. For many, eco-friendly choices can be inaccessible, impractical, or costly. The Honest Home Company’s primary objective is to make sustainable choices effortless, readily available, and budget-friendly.

Every day, 9,400 tonnes of plastic end up in Indian landfills and seas. Despite India’s relatively low individual plastic consumption, the potential for change is immense. Together, we can not only prevent this number from rising but also reverse the tide.

The Honest Home Company has developed everyday products that minimise plastic use, eliminate toxic chemicals, and utilise organic raw materials. Delivered in recycled packaging, these products offer a healthier alternative for both your home and the planet. They cater to those who care about nature, aspire to reduce waste, lessen their ecological footprint, and contribute to the preservation of our world.

The Honest Home Company is dedicated to creating a waste-free future. The technology required to make this vision a reality already exists - it just requires a company with the right mindset to implement it. Join us in our mission to save the planet, one everyday choice at a time. Click to get The Honest Home Company products here.

The Honest Home Company’s Products

The Honest Home Company, an eco-friendly and sustainable enterprise, offers a wide range of everyday cleaning and paper products (Click to buy on Amazon). Their products are designed to reduce plastic waste, toxic chemicals, and carbon footprint. They offer free shipping on orders over ₹499 and an additional 15% discount on purchases above ₹1000.

The Honest Home Company sells products in four main categories: personal hygiene, food wrapping, kitchen hygiene, and household cleaners. Some of their products are:

• Personal hygiene: They offer tissue paper products made from 100% virgin pulp, which are soft, strong, and biodegradable. They have facial tissues, napkins, and toilet paper rolls in different sizes and packs.

• Food wrapping: They offer aluminium foil, butter paper, baking paper, and food wrapping paper made from natural and organic materials. They are suitable for baking, cooking, wrapping, and storing food. They are also recyclable and compostable.

• Kitchen hygiene: They offer kitchen towel rolls and garbage bags made from recycled and eco-friendly materials. They are durable, absorbent, and leak-proof. They also have poop bags for pet owners, which are biodegradable and odourless.

• Household cleaners: They offer natural and plant-based cleaners for various surfaces and purposes. They have floor cleaner, toilet cleaner, glass cleaner, and dishwashing powder-to-liquid. They are free of harmful chemicals, artificial colours, and fragrances. They are also cruelty-free and vegan.

Their dedication to sustainability and affordability sets them apart in the market.

The Honest Home Company’s Business Statistics

Financial Highlights:

• Initial investment: ₹2.25 crore

• Annual revenue: ₹14 crore (with a 4.35% net margin in FY 22-23)

• Average order value (AOV): ₹200

• Profitability: ₹60 lakhs (FY 22-23)

The Honest Home Company has made a significant impact in its market. With an initial investment of ₹2.25 crores, the company has achieved an impressive annual revenue of ₹14 crores. The average order value for The Honest Home stands at ₹200.

The Honest Home Company’s Equity Structure

• Founder Mayank Sisodia: 80% (₹1.25 crore initial investment)

• 3 friends: 20% (₹1 crore investment)

Founder Mayank Sisodia holds 80% equity, with an initial investment of ₹1.25 crore, and three friends hold 20% equity for a total ₹1 crore investment.

Unit Economics of The Honest Home Company

The unit economics of the company are as follows:

• Offline Unit Economics:

  • Price to Retailer: ₹110

  • Contribution Margin: 24%

  • Retailer Margin: 8%

  • Branding: 15%

  • Other Expenses: 45%

  • Profit: 8%

When it comes to online sales, The Honest Home operates with a different set of unit economics:

• Online Unit Economics:

  • Selling Price: ₹200

  • Making Cost: 28%

  • Gross Margin: 72%

  • Contribution Margin: 17%

  • Amazon Commission: 18%

  • Miscellaneous and Delivery Expenses: 37%

Sales Split

The sales split (FY 22-23) of The Honest Home Company  is:

• Offline: 55%

• Online: 45%

In the last six months, 40% of sales came from offline channels, 24% from marketplaces, 30% from Quick Commerce, and 6% from other small direct consumers. 

During the pandemic, the founder, Mayank Sisodia, found out that offline marketing is not going to be possible. He confided in his friends to come up with ways to increase his reach in Pan India. For example, registering GST across various states, understanding when FMCG products move the most during a month, and offering a discounted rate on select products from the 25th to the 5th of the month. This way, he got visibility and in turn, repeated customers. He claims The Honest Home Company has a 33% customer repeat rate on Amazon and 16% on Blinkit, which is significantly higher than the average customer repeat rate.

Year-wise Sales

The Honest Home’s year-wise sales are as follows:

• Till September 2023: ₹1.42 crores

• FY 2022 – 2023: ₹13.8 crores with a net profit of ₹60 Lakhs and a net margin of 4.35%

• FY 2021 – 2022: ₹4.9 crores

• FY 2020 – 2021: ₹2.89 crores

• FY 2019 – 2020: ₹1.82 crores

These statistics provide a clear picture of The Honest Home’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 Honest Home Company

Following the success of its previous seasons, Sony Television's Shark Tank is set to captivate audiences with an exciting new season in India. 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 provided their expert feedback to Mayank during his Shark Tank India pitch. Each Shark offered unique insights and advice based on their observations and experience.

Namita Thapar was surprised to find that despite the packaging being biodegradable, the products were not free from chemicals. This raised questions about the overall sustainability and environmental impact of the products. Namita highlighted the low-profit margins and potential investor exit challenges.

Anupam Mittal voiced his concerns about the fading honesty and sustainability in today's business landscape. He also noted that The Honest Home Company's founder, Mayank Sisodia, had faced 80 rejections from VC funds before coming to Shark Tank India. This demonstrated resilience and determination. Anupam expressed his concerns about the company's expansion plans, given the small profit margins. He found it perplexing how the company planned to scale with such constraints.

Amit Jain observed that the company was operating in a highly commoditised category. This could present challenges in terms of differentiation and competition.

Vineeta Singh, having faced 100 VC rejections herself, showed interest in founders who have experienced rejection. 

Funding received on Shark Tank

Mayank Sisodia, the founder of The Honest Home Company, sought both financial investment and strategic guidance to expand his business on e-commerce channels. He had asked for an investment of ₹1 crore in exchange for 2% equity in his company, valuing it at ₹50 crores.

After receiving different offers from the Sharks, Mayank decided to accept the deal proposed by Amit Jain. The deal consisted of an investment of ₹1 crore for a 3% equity stake in the company, along with a 1% royalty until Amit recouped ₹1.5 crores.

This means that Amit will receive 1% of the sales directly until he has recouped ₹1.5 crores. The final deal with Amit Jain valued The Honest Home Company at ₹33.33 crores. This investment represents a significant milestone for The Honest Home Company as it continues to grow and make its mark in the industry.

Competitor Analysis for The Honest Home Company in India

In the eco-friendly home products industry, The Honest Home Company faces competition from several established brands. Here’s a look at five such competitors:

1. Brand Name: Eco365

   • USP: Eco365 focuses on water conservation products, offering a unique range of solutions to save water.

   • MOAT: Their main business strength lies in their innovative product range and focus on water conservation.

   • Price Difference: Prices are competitive, with some products priced lower than The Honest Home Company.

   • After Sales: They offer excellent customer service with easy returns and refunds.

2. Brand Name: Barenaturals

   • USP: Barenaturals offers a wide range of organic and natural home products.

   • MOAT: Their competitive advantage is their commitment to sustainability and the use of all-natural ingredients.

   • Price Difference: Their prices are slightly higher due to the premium nature of their products.

   • After Sales: They provide efficient customer service and support.

3. Brand Name: Rusabl

   • USP: Rusabl offers eco-friendly alternatives to everyday products, with a focus on reducing plastic waste.

   • MOAT: Their strength lies in their wide range of products and commitment to sustainability.

   • Price Difference: Prices are similar to The Honest Home Company.

   • After Sales: They have a dedicated customer service team for after-sales support.

4. Brand Name: Almitra Sustainables

   • USP: Almitra Sustainables offers eco-friendly lifestyle products that promote zero-waste living.

   • MOAT: Their main business strength is their focus on sustainable and ethical practices.

   • Price Difference: Their prices are slightly higher due to the premium nature of their products.

   • After Sales: They offer excellent customer service with a focus on customer satisfaction.

5. Brand Name: Brown Living

   • USP: Brown Living is a marketplace for sustainable and vegan products.

   • MOAT: Their strength lies in their curated selection of eco-friendly products from various brands.

   • Price Difference: Prices vary as they stock products from various brands.

   • After Sales: They offer a hassle-free return policy and responsive customer service.

Key Takeaways of The Honest Home Company

What We Like: 

The Honest Home Company has several appealing aspects:

• It focuses on reducing plastic waste, which is a significant environmental concern.

• It manages to bring down the price point of certain household utilities, making them more accessible.

• It’s an honest startup with a commendable growth pattern, demonstrating the potential for further expansion.

What We Did Not Like: 

However, there are a few areas where The Honest Home Company could improve:

• Despite the packaging being biodegradable, the product itself isn’t chemical-free. This could be a concern for consumers seeking completely eco-friendly products.

• The company’s focus is still primarily on tier 1 and tier 2 cities. Expanding their reach to include other areas could open up new markets.

Reading Materials/ Case Study/ References

• Bioplastic - Wikipedia

• Biodegradable plastic - Wikipedia

• Sustainable packaging - Wikipedia 

More from Shark Tank India’s - Latest Season

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

Watch The Honest Home Company’s Episode on YouTube

Beyond the Tank - Interview with Mayank Sisodia, the founder of The Honest Home Company

Coming Soon…

The Honest Home Company Promo code

Here is an exclusive The Honest Home Company 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 Honest Home Company

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

2. Did The Honest Home Company appear on Shark Tank?
   A: Yes, The Honest Home Company appeared on Shark Tank India. The founder, Mayank Sisodia, pitched the business to the Sharks and secured an investment from Amit Jain.
   

3. Are there any reviews available for The Honest Home Company?

   A: You can find reviews for The Honest Home Company on their official website and other e-commerce platforms.
   

4. What products does The Honest Home Company offer? 

   A: The Honest Home Company offers a range of eco-friendly home products, including biodegradable garbage bags, aluminium foil, and food wrapping paper.

5. Who is the owner of The Honest Home Company? 

   A: The Honest Home Company was founded by Mayank Sisodia, who continues to lead the company.

6. Does The Honest Home Company offer garbage bags? 

   A: Yes, The Honest Home Company offers biodegradable garbage bags as part of their product range.

7. Does The Honest Home Company offer aluminium foil? 

   A: Yes, The Honest Home Company offers eco-friendly aluminium foil.

8. Does The Honest Home Company offer food wrapping paper? 

   A: Yes, The Honest Home Company offers food wrapping paper as part of their eco-friendly product range.