‘Consumer is not king…’: Aquapea founders reveal unique success formula on Shark Tank India

Tushar and Ravi Mundada, co-founders of Aquapeia, recently unveiled their business venture, pitching their business idea to Season 4 of Shark Tank.

Entering the FMCG sector since 2007, the duo has built their strategy on an unconventional but straightforward philosophy: “The consumer is not king. The channel partner is the king.

Instead of making sure the people driving their product are motivated, engaged and profitable, the two have doubled down on their relationship with merchants and retailers over consumer choice.

“Shark Tank India was not just about funding. Apart from the financial support, it was a lesson in entrepreneurship that gave insights,” said Tushar while talking about the brand visibility on national television.

With support from the platform, Aquapea is set to expand its production capacity by 50% by 2025 at its current facility. The aim is to increase operations and reach a revenue target of Rs 20 crore.

“We are cracking the market on trends,” he said, defending the strategy in an investor debate. With products covering 75% water, 13% Irea soda, 7% mango juice and 2% carbonated beverages, Tushar’s clear focus on consumer preferences has fueled profitability since day one. 9 crore in FY2024, and with EBITDA at 16%, the brand has targeted Rs 12 crore for 2025.

The founders told the jury that the bottles cost Rs 20 and the distributor price is Rs 6.5, leaving a margin of 20% per unit and an operating profit of Rs 1.25. However, the presentation of the brand has sparked a lot of discussion.

“You are a copycat brand,” Piyush said, criticizing the ends for not being able to grow the business profitably.

Emphasizing the strength of Aquapea’s model, Namitha Thapar argues that “the company’s distribution know-how needs to be copied and pasted pan-India.” Thapar highlighted that the packaging of their products is very similar to the products that were already available in the markets. “Apka toh pura ka pura kopi kia hai, etna kyu kopi kia?”

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

The company started with a monthly income of 30 thousand birr and a network of 25 dealers. Today, it supports 90 merchants and approximately 10,000 distributors and generates an income of Rs 1 million per month. Despite setbacks such as the Covid-19 pandemic, which cost the company huge sales over the summer, Aquapea reportedly achieved 20-25% year-over-year growth in volume.

Tushar credited 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. We stand by our side in difficult times. Our focus is to make our growth sustainable,” he said.