[Shark Tank Season 6 Episode 5] 2 Million USD Deal First Appeared, Sharks Offered Numerous Contrasting Viewpoints
06 Dec, 2023 (GMT+7)Export To PDF
Episode 5 recorded the appearance of 3 Startups with one thing in common: they all apply technology to their business models. Among them, the serviced apartment rental platform Aplus Home has successfully raised capital of 2 million USD - This is also the largest deal of Shark Tank season 6 to date.
Aplus Home - Valuation of 6 million USD, revenue of 35 billion
Aplus Home is a platform connecting homeowners and individual investors to take advantage of idle resources in society with the purpose of bringing serviced apartment solutions to young people. Aplus was founded by Mr. Dao Quy Phi and his colleagues in 2021. Coming to Shark Tank Vietnam season 6, Mr. Dao Quy Phi called for 2 million USD for 11.8% of shares.
Aplus Home helps solve many homeowners obsessions with stable cash flow. Entering the market, Aplus Home realized that the actual demand of this market is very large, for that reason, Aplus Home has chosen the strength of chain development, including furniture supply, design, operating management, creating room suppliers in many different forms.
According to Startup's share, Aplus's room occupancy rate is always above 95%. Sharing more about the financial picture, Mr. Phi said that in 2021, because it was newly founded and entered the market, with additional difficulties from the Covid epidemic, Aplus Home only focuses on technology development and optimization so in revenue, Aplus Home only reached a few hundred million. However, by 2022, the "new normal" period for the country, Aplus will have revenue of up to 7 billion. In the first 6 months of 2023, this number has reached 12 billion and according to the plan, it is expected to reach 35 billion this year. This startup also estimates the profit per building to be up to 35-40%.
Based on the sharing from the Startup, Shark Hung Anh believed that this number is unreasonable: "The first time you earn money, you pay it to the landlord. Second, for renovation, third, you pay for the investors. What you have left is very low”. Co-Founder Aplus Home calmly replied to Shark Hung Anh: "That means Aplus rents houses, whatever the market price is, they still rent like that and the room price they sell is the same as the market. APlus has a profit in the middle which is the occupancy rate. Aplus's direct payback period for buildings is usually from 15 to 18 months". However, Shark Hung Anh still believed that the profit of this form of business is very low and decided not to invest.
After consideration, Shark Hung proposed to invest 2 million USD in Aplus Home, of which 500 thousand USD in exchange for 4% of the shares, 1.5 million USD is the investment with the condition that Aplus Home must pay back the capital within 24 months, and if eligible, the amount of 1.5 million USD will be converted into shares with the highest business valuation of 20 million USD. Finally, Startup Dao Quy Phi accepted Shark Hung's offer, closing the deal with the highest amount ever in Shark Tank Vietnam history.
The Sharks listened attentively to Aplus Home's business model
Inmergers - Startup applying technology to the field of M&A
Inmergers is a Startup in the field of applying technology to M&A (business mergers and acquisitions) that came to Shark Tank Vietnam season 6 to call for an investment of 200 thousand USD for a 4% stake. Inmergers planned to offer its initial public offering in 2028. After 8 months of establishment, this platform has developed a network of 300 brokers and 7 Country Partners. Despite a revenue of 400 million, this Startup returned empty-handed.
Shark Hung Anh shared his opinion
SaleMall - The platform providing sales management and marketing products
Established in 2018, SaleMall provides sales and marketing management services to users, including sourcing systems, multi-channel sales management systems, automated marketing with AI technology, chatbots , call bot, payment system,... After 5 years of formation and development, this platform has 300 thousand users and expanded its business in a number of countries in Southeast Asia.
Duc Nguyen - Founder of SaleMall - said that this business has broken even since 2021, and in 2022, the revenue of this business has reached 600 thousand USD. Shark Hung Anh recognized the problem immediately from this number. With about 100 employees, 600 thousand USD is not enough to pay staff salaries. Therefore, all Sharks rejected this deal.
Startup SaleMall - The platform providing sales management and marketing products
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