Pranav Sharma, the founder of Awsum, appeared on the latest episode of Shark Tank India Season 5 with a plan to change the Rs 11,000 crore packaged cake market. He pointed out that while Indian consumers want better options, “these players still think that India’s thinking is restricted to vanilla tutti-frutti cakes.” Pranav believes “India’s thinking is limitless,” but people currently have no choice but to eat cakes made of flour, sugar, and palm oil.
He presented his “Better Bakes” line, which has flavors like Lemon Blueberry and Orange Pistachio. These cakes don’t use eggs, refined flour, or white sugar. Instead, they are made with wheat flour, jaggery, and honey. The Sharks were especially interested in the functional side of the products. When asked how a brownie could help with immunity and focus, Pranav explained it was “because of Brahmi, Ginseng… and Ashwagandha.” He noted that the 250mg of Brahmi included is a “good single dose” for a consumer.
A strategy built on past failure
Pranav previously ran a healthy snack brand called Poshtik, which struggled during the pandemic. He used what he learned there to build Awsum differently. For example, he set up his own manufacturing plant in Noida instead of hiring another company. He explained, “If we go for third-party manufacturing on day one, we have to commit some MOQs. And if we commit MOQs, we don’t have time to check the product market fit.”
This approach seems to be working. Awsum is sold on quick commerce apps and in retail stores, bringing in 2.10 crore every month. The business is now slightly profitable. Since the cakes only stay fresh for three months, Pranav uses a “just-in-time” system. He said, “We don’t keep goods at all… We go into production only after we get POs,” which keeps the inventory fresh.
The bidding war
The pitch turned into a heated debate over money. Pranav asked for 1 crore for a 1% stake, which valued the company at 100 crore. The Sharks liked the taste and the fact that each cake comes with a spoon for easy eating, but they balked at the evaluation.Aman Gupta teased Pranav about his branding, saying, “Let’s turn you from Awful to Awsum,” while Anupam Mittal challenged the ask: “I think you have come to reduce the valuation, not to solve your business problem.”
Anupam Mittal and Aman Gupta initially offered a deal at a Rs 40 crore valuation, while Ritesh Agarwal and Namita Thapar also expressed strong interest. Pranav held his ground, pushing for a middle ground of Rs 75 crore. He told the Sharks that his high monthly sales and the “generational shift” of people moving toward mindful Western desserts justified a better price.
The final selection
In the end, two identical offers were on the table: Rs 1 crore for 1.33% equity (a Rs 75 crore valuation). One offer came from the duo of Aman and Anupam, and the other from Ritesh Agarwal and Namita Thapar.
Despite Aman’s pitch to fix the brand’s packaging, Pranav made a strategic choice – He opted for Ritesh and Namita. He explained his choice by saying there is a “gut health queen and a hotel king” on that team and that they showed their interest in his product immediately. He walked away with the deal, confident that Ritesh’s hospitality network and Namita’s health expertise were the right fits for his functional superfood cakes.
