“The consumer is not king…”: Aquapeya founders reveal unique success formula on Shark Tank India

Tusshar and Ravi Mundada, founders of Aquapeya, recently revealed their unique strategy for doing business while pitching their business idea on the fourth season of Shark Tank.

The duo, which has been in the fast-moving consumer goods sector since 2007, has built their strategy around an unusual but clear philosophy: “The consumer is not the king. The channel partner is the king.”

The two doubled down on their relationships with dealers and retailers rather than consumer preferences, ensuring that the people moving their products were motivated, engaged and profitable.

“Shark Tank India was not just about funding. It was an education in entrepreneurship that provided insights beyond financial backing,” Tusshar said while talking about the brand’s exposure on national television.

With the support of the platform, Aquapeya is now gearing up to expand its production capacity by 50% at its existing facility by 2025. The aim is to scale up operations and reach the revenue target of Rs 20 lakh crore.

“We penetrate the market based on trends,” he declared, defending his strategy amid discussions among investors. With products comprising 75% water, 13% jeera soda, 7% mango juice, and only 2% soft drinks, Tushar’s clear focus on consumer preferences has increased profitability from day one. The company closed FY2024 at Rs 9 lakh crore, and with EBITDA of 16%, the brand is targeting Rs 12 lakh crore for FY2025.

The founders told the judges that bottles are sold at Rs 20 and the dealer price is Rs 6.5, leaving a margin of 20% and an operating profit of Rs 1.25 per unit. However, the brand’s approach sparked intense discussions.

“You are a copy of the brand,” Piyush criticized shooters, arguing that the company cannot expand profitably.

“The company’s distribution experience needs to be copied and pasted pan-India,” said Namita Thapar, emphasizing the strength of Aquapia’s model. Thapar also highlighted that the packaging of their products is very similar to pre-existing products in the market. “Aapka toh pura ka pura versi kya hai, itna que versi kya?”

One of the founders explained that they don’t see themselves that way. “We follow customer trends,” he said, explaining color-coding strategies.

The company started with a modest monthly revenue of Rs 30 lakh and a network of 25 agents. Today, it generates a monthly revenue of Rs 1 crore, supported by 90 merchants and around 10,000 outlets. Despite setbacks such as the Covid-19 pandemic, which cost the company significant sales during the summer seasons, Aquapeya has reportedly maintained an annual growth rate of 20-25% in terms of volume.

Tushar attributes their success to their focus on building long-term relationships with channel partners. “Our growth is a direct result of the trust we have built with our partners. They have stood by us through difficult times, and we have focused on making sure our growth is sustainable,” he said.