Turms Shak Tank India Episode Review : Bridging Fashion and Technology

Episode Date: 25/Jan/2023 – Season 3

Turms Shak Tank India Founder: Surender Singh Raj Purohit

Business Overview:

• Turms, where fashion meets technology, offers intelligent apparel featuring Hydrophobic technology.
• Products include Anti-Stain, Anti-Bacterial, Anti-Fungal, and Anti-Odor clothing.
• Notable items: 30 Days No Wash Jeans, AC Cool Tech T-Shirts, and 7 Days No Smell Socks.

Turms Shak Tank India Ask and Acquisition:

• Asked for ₹1.2 Cr for 2% equity at a ₹60 Cr valuation.
• Founder acquired the Turms brand in 2022, selling over 4 lakh units of intelligent apparel.
• Clarification on the acquisition: Founder bought the brand, not the company, for a ₹15 Cr valuation and cleared the liabilities through a deal with a debt company for ₹1.5 Cr at 12.5% equity.

Turms Shak Tank India Financial Performance:

• Started operations in October 2022, closing the financial year at ₹57 lakhs.
• August 2023 recorded ₹86 lakhs in sales with a profit of ₹9.72 lakhs.
• Anticipates a year-end profit of ₹70 to ₹80 lakhs with revenue over ₹10 Cr.
• 90% of business sales through their website, 10% Refund or RTO.

Turms Shak Tank India Operational Optimization:

• Fabric remains 100% effective for 20 washes.
• Post-acquisition, conducted extensive operational analysis.
• Focused on aggregation of marginal gains, reducing warehouses, optimizing shipping, and minimizing packaging costs.
• Lean team of 9 people, down from 60 in the past.

Turms Clothing Shark Responses:

• Aman’s Offer: ₹1.2 Cr at 4% equity plus a 5% royalty till ₹1.2 Cr is recouped, at a ₹30 Cr valuation.
• Peeyush’s Decision: No, citing doubts about the claim of 20 washes and a low Amazon rating of 3.5.
• Anupam’s Offer: ₹1.2 Cr at 4% equity and a 1% royalty.
• Ajhar Iqbal’s Offer: ₹1.2 Cr at 4% equity without royalty.
• Vineeta’s Decision: Out, suggesting a lower valuation of ₹20 Cr.

Turms Shak Tank India Episode Deal Closure:

• Founder agreed with Iqbal’s offer and closed the deal at ₹1.2 Cr for 4% equity with a ₹30 Cr valuation.

Turms Shak Tank India Website Presence:

• Turms Website
• Built on Shopify, attracting around 10,000 monthly visitors through approximately 2.5k search keywords. Dominates in top ranks on branded keywords, showcasing an effective marketing strategy with a budget of ₹40 lakhs.

Turms, through strategic optimization and innovative products, successfully navigated challenges and secured a deal with Iqbal for further growth and market penetration.

Turms: Where Fashion Meets Technology – A Shark Tank India Review

In a captivating episode of Shark Tank India Season 3, Surender Singh Raj Purohit, the founder of Turms, showcased the intersection of fashion and technology with their innovative intelligent apparel.

Turms’ Intelligent Hydrophobic Technology: Turms, a brand that stands at the crossroads of fashion and technology, offers intelligent apparel featuring Hydrophobic technology. Their clothing line includes garments with features like anti-stain, antibacterial, antifungal, and anti-odor properties. Noteworthy products include 30-day no-wash jeans, AC Cool Tech T-shirts, and 7-day no-smell socks.

Acquisition and Growth: Acquiring the Turms brand in 2022, Surender revealed that the brand had sold over 4 lakh units of intelligent apparel. However, it was clarified that the acquisition was of the brand, not the entire company, at a 15 crore valuation.

Financial Performance: Post-acquisition, Turms underwent significant operational analysis, achieving a leaner structure and improved profitability. Operations commenced in October 2022, recording 3 lakh in sales, concluding the financial year at 57 lakhs. By August 2023, monthly revenues surged to 86 lakhs with a profit of 9.72 lakhs.

Business Optimization: Turms optimized operations by reducing warehouses, enhancing shipping efficiency, and minimizing packaging costs. A lean team of 9 replaced the previous team of 60, contributing to increased profitability. The brand boasts a 90% direct sales rate through their website, with a 10% return or RTO rate.

Shark Tank Offers: Aman acknowledged Turms as an excellent example of execution trumping ideas, offering 1.2 crores at 4% equity with a 5% royalty until 1.2 crores are recouped at a 30 crore valuation. Peeyush, citing concerns about the claim of 20 washes and a low Amazon rating, declined to invest.

Anupam proposed a similar deal to Aman’s, while Ajhar Iqbal made a royalty-free offer. Vineeta exited, expressing concerns about the valuation being too high at 30 crores.

After a series of negotiations, Turms accepted Ajhar Iqbal’s offer of 1.2 crores for 4% equity at a 30 crore valuation.

Insights and Marketing: The brand’s website (https://urturms.com/), built on Shopify, experiences robust traffic of around 10,000 visitors. Turms strategically allocates a marketing budget of 40 lakhs, creating an upward trend and establishing a formidable brand presence.

In the world of Turms, technology seamlessly weaves itself into fashion, creating garments that defy convention. The Shark Tank deal further propels Turms on its trajectory to redefine the boundaries of intelligent apparel.

Note from Turms Founder

Celebrating TURMS – Intelligent Apparel’s Milestone! 🚀

“Embarking on ‘TURMS – Intelligent Apparel’ after a corporate career has been an exhilarating journey into the D2C space. Our direct-to-consumer approach through the web store gives us unparalleled brand control and direct insights into consumer behavior.”

Key Metrics in Focus:

1. Customer Acquisition Cost (CAC): A measure of the cost to acquire a new customer, encompassing marketing expenses.
2. Customer Lifetime Value (CLV): The total revenue expected from a customer over their entire relationship.
3. Conversion Rate: The percentage of website visitors completing a desired action, such as making a purchase.
4. Average Order Value (AOV): The average spending per customer in a single transaction.
5. Churn Rate: The percentage of customers discontinuing business with the company.
6. Gross Margin: The percentage of revenue after deducting the cost of goods sold.
7. Return on Ad Spend (ROAS): Measures revenue generated for every rupee spent on advertising.
8. Net Promoter Score (NPS): An indicator of customer satisfaction and loyalty.
9. Customer Retention Rate: The percentage of customers maintaining relations with the company.
10. Inventory Turnover: Indicates how quickly a company sells and replaces its inventory.

Top Priorities:

1. Gross Margin (6): Focused on optimizing revenue after considering the cost of goods sold.
2. Return on Ad Spend (ROAS) (7): Evaluating the effectiveness of advertising investments.
3. Customer Retention Rate (9): Prioritizing the percentage of customers retained over time.

Which metrics do you prioritize in your D2C business?

Feel free to comment, share, or repost. Your insights can be invaluable for new founders and aspiring entrepreneurs looking to streamline their focus.

#IntelligentApparel #D2CIndia #ApparelIndustry #MadeInIndia #URturms #KolkataThunderbolts #FashionIndustry

Turms: Fusion of Fashion and Technology

1. Brand Identity: Turms

• Innovation Intersection: A brand positioned at the convergence of fashion and technology.
• Signature Technology: Known for intelligent apparel integrating Hydrophobic technology.

2. Product Line: Intelligent Apparel

• Hydrophobic Technology: Garments with water-resistant properties for enhanced durability.
• Advanced Features:
  • Anti-Stain: Shields against stains for a lasting pristine appearance.
  • Antibacterial: Promotes hygiene by resisting bacterial growth.
  • Antifungal: Protects against fungal development for garment longevity.
  • Anti-Odor: Ensures garments stay fresh even after prolonged use.

3. Innovative Offerings:

• 30-Day No-Wash Jeans: A groundbreaking product challenging traditional laundry norms.
• AC Cool Tech T-Shirts: Incorporating cooling technology for comfort in varied climates.
• 7-Day No-Smell Socks: Combating odor for a week without compromising freshness.

4. Technological Integration:

• Hydrophobic Tech: Repelling liquids and stains, ensuring longevity and easy maintenance.
• Intelligent Fabrics: Utilizing cutting-edge materials for enhanced performance.
• Smart Textiles: Enhancing the functionality of apparel through technological integration.

5. Market Positioning:

• Premium Segment: Positioned as a premium brand offering technologically advanced apparel.
• Fashion and Function: Balancing aesthetics with practical, innovative features.

6. Sustainability Focus:

• Longevity: Products designed for extended use, reducing frequent replacements.
• Reduced Washing Frequency: Promoting sustainable practices with no-wash and no-smell products.

7. Customer Experience:

• Comfort: Prioritizing wearer comfort through smart textile choices.
• Innovation Appreciation: Catering to consumers seeking cutting-edge, functional fashion.

8. Challenges and Mitigation:

• Consumer Awareness: Conducting robust marketing campaigns to educate consumers.
• Market Acceptance: Offering trial programs to encourage adoption and build trust.
• Competitive Landscape: Continuous innovation to stay ahead in a dynamic market.

9. Future Expansion:

• Diversification: Expanding product lines with more intelligent and sustainable offerings.
• Global Presence: Venturing into international markets to reach a broader audience.
• Collaborations: Exploring collaborations for synergies in technology and fashion.

10. Brand Recognition:

• Innovator Image: Becoming synonymous with innovation in the fashion-tech space.
• Consumer Loyalty: Building a loyal customer base through consistent quality and innovation.

Turms, as a pioneer in the fusion of fashion and technology, continues to redefine apparel standards. Their commitment to innovation, sustainability, and comfort positions them as a brand that not only meets but anticipates the evolving needs of the modern consumer.