[Shark Tank season 5 episode 5] Startup raises $100k invested triple by Shark Hung Anh for thriving technology tourism
06 Jul, 2022 (GMT+7)Export To PDF
Featured in Shark Tank Vietnam season 5 episode 5 is start-up HANZ Technology Joint Stock Company with two founders Tran Ba Hoang Minh and Tan Tran calling for 100.000 USD. Surprisingly, HANZ was invested 3 times by Shark Hung Anh (Mr. Jimmy Lee) to jointly develop technology tourism. In addition, in the BIN Corporation Group ecosystem of this “Shark'', owns and operates Travelner booking app, it can effectively support HANZ.
Start-up Tran Ba Hoang Minh and Tan Tran presented about HANZ project
“You call for capital today, but how can you set a price for 5 years later”
HANZ specializes in providing branding solutions and maximizing revenue for hotels. This startup focuses on hotel renovation, room upgrade in the direction of comfort, cleanliness and helps to increase the number of guests by putting hotels on global sales system. Coming to Shark Tank Vietnam, HANZ wants to call for an investment of USD 100.000 for a 1.5% share rate.
Mr Hoang Minh analyzed the hotel market in 2 segments. The first segment with 4 stars or more is exploited by leading management companies in the world: UK, France, USA... and another segment with 3 stars or less is exploited by units of Indonesia, India and Singapore. According to him, HANZ is investing to compete with OYO (an Indian chain of rental and franchise hotels) and aims for this second segment.
HANZ approaches hotels in three ways: increasing revenue by 20% through dynamic price adjustments of the ASE system (Automated Sales Engine), cutting marketing and human resources cost by 18%. ineffective, improve the quality of the hotel in the direction of comfort and cleanliness.
Regarding services, HANZ has an ASE system to dynamically adjust prices, automate marketing channels, synchronize prices on OTA distribution channels, GDS (Global Distribution System) and standardize 3 stars service.
In 2021, GMV (Gross Merchandise Volume - total transaction value) of HANZ reached about 25 billion, net revenue was 2.5 billion, profit was 1.2 billion. In Vietnamese market, startup has expanded to 22 cities and has more than 200 hotel partners using the system. The goal is to expand quickly in 18 months to reach 86 cities in Vietnam and expand to 4 Southeast Asian countries with about 3000 hotels.
Startup said that currently, they only charge 25% of hotels with a revenue of 2.5 billion, if 100% of hotels charge fees, they will get 10 billion, profit is about 4 billion. Multiplying 5 times, about 5 years later, HANZ will reach 25 billion. If multiplied by 5 times, it will reach 110 - 120 billion.
When Shark Hung Anh asked: "You call for capital today, but how can you set a price for 5 years later", Hoang Minh explained, the tourism market is being heavily affected by COVID-19 so the current capacity is only about 25%. When the market returns, the hotel group will explode and his start-up is still expanding, the next 5 years goal is to reach about 2500 - 3000 hotels.
Shark Hung Anh discussed with Shark Binh about startup’s project
Shark Hung Anh decided to invest 3x times for startup
After listening to two start-ups present, Shark Lien decided not to invest because it was not in her business. Shark Binh evaluated the startup's model using a lot of capital, Hoang Minh said that his startup spent 2 billion and has expanded to 22 cities, with more than 200 hotels.
Shark Phu offered to invest 100,000 USD for 15% shares. Shark Hung Anh said that in the ecosystem BIN Corporation Group owns Travelner booking app, making it an OTA system that can effectively support HANZ. He wants to go along with startup, so he offers to invest $300.000 to own 35% of shares. If the performance is as the start-up says, he will invest another 200.000 USD, the total investment will be 500.000 USD and own 30% of the shares so as not to lose the motivation of the founding team.
Mr Hoang Minh suggested that if within 24 months, the profit exceeds the amount invested by Shark, startup will buy back 10% of the shares from Shark at the current valuation and pay 15% interest. Shark Hung Anh agreed, closing a successful deal on Shark Tank Vietnam season 5 episode 5.
Shark Hung Anh's handshake to close the HANZ deal with Startup Tran Ba Hoang Minh and Tan Tran
The law of duel first appeared in Shark Tank episode 5 season 5
The duel rule stipulates that startups have 2 minutes to present their products and business models. After that, the Sharks will ask & answer questions for further clarification and consultation to decide which start-up will enter the negotiation round, the remaining start-ups will enter the Shark Tank season 6 recording round by default.
Beekids - a platform to connect learning and develop thinking for children from 3 - 12 years old and Bunny Boo - educational toys which follow Montessori style, a pioneer in Vietnam participated with duel rules.
Bunny Boo calls for 1.5 billion for 20% stake. After the negotiation, Shark Hung and Shark Lien split to invest 1.5 billion to take 36% of shares.
Also in this episode 5, Shark Phu and start-up Velasboost, represented by founder Le Hai Vu - a technology accessory brand from Vietnam, specializes in manufacturing products for the ecosystem of Vietnam. Smartphone and computer closed the deal successfully with a commitment to invest 6 billion for 50% of shares.
Cao Tien Thanh, founder and operator of fashion brand Melya and co-founder Nguyen Tien Hoang, was invested by Shark Binh with 500.000 USD for 10% of shares and an additional 500.000 USD as a convertible loan with an interest rate will be negotiated later.
Follow Shark Le Hung Anh at: https://www.facebook.com/SharkLeHungAnh