Daily Dump is an award-winning design-led brand that designs and develops composters. They manufactured India’s first composter, which is called Khamba. Daily Dump has a wide range of composters and a patented product called Terrabite.
More About Daily Dump
Poonam started Daily Dump in 2006 when people were not too aware of composters. She built the demand for the product. By the time Poonam appeared on Shark Tank India, more than 80,000 families were using Daily Dump to create compost. Her vision is to place a composter in every house in the country, just like fridges, washing machines, and televisions.
You can put your waste from the kitchen (also including wet waste) in their composter. Add some magic powder to it and do it for 30 days. After 30 days, It becomes compost.
Poonam got her training from the National Institute of Design. She started a craft company with her friend called Industry Craft Foundation in 1991.
The company is still in business, but Poonam left it. After that, she set up another venture Srishti Institute of Art, Design, and Technology, in 1996. During her time there, she got many ideas that she wanted to implement. And that’s how Daily Dump was born.
Poonam’s co-founder Arjun is from a tech background and used to manage delivery for a large cybersecurity company. He holds an MBA from IIM Bangalore and finished his graduation in engineering from NITK Surathkal.
Poonam owned 95% of the equity, and 5% was distributed to her ex-employees. They were discussing the paperwork to offer Arjun 30% equity, and Poonam would hold 65% after the arrangement.
Aman Gupta (co-founder of Boat) raised a question that most Daily Dump customers ask, i.e., if the waste in the composter stink. Poonam replied boldly to this. She told Aman that she could compost fish waste without any smell. Namita Thapar (Executive Director of Emcure Pharmaceuticals Ltd) supported Aman’s question and asked how they educate people.
Poonam said they make films and do a lot of work with kids, and then she proceeded to show the educational books to sharks. Poonam knew since the beginning that people wouldn’t pay for composters just like that. So, she decided to start by creating a symbol for composting.
She even joked with Aman by saying they did not go to people like Aman initially because they wouldn’t understand. Hence, she decided to talk with people who cared about Earth and were open-minded. That’s why she designed her composters, so they don’t look like dustbins.
Poonam explained that waste gets reduced during composting. Therefore, one of her products can carry the 30-day waste of a family. They can remove it and start the cycle of composting again. Hence, one composter can serve one family for a lifetime.
Poonam also started another brand with Daily Dump called Harmless Home. Their motive is to offer natural alternatives to chemical products. She also roasted Vineeta Singh (Co-Founder and Chief Executive Officer of Sugar Cosmetics).
Poonam said Vineeta would understand toxic chemicals better because she deals in them. However, it was all in a healthy spirit. Peyush and Aman joked that they were in a classroom and Poonam was definitely a teacher.
Daily Dump Shark Tank Pitch and Updates
Poonam and Arjun appeared on Shark Tank India Season 2 Episode 11 and demanded INR 80 lakhs for 4% equity at a valuation of INR 20 crore.
Poonam’s pitch impressed the sharks, and they claimed it to be one of the best Shark Tank India pitches. They fundamentally have two products –
- Community composter, sold in housing societies via offline channels
- Home composter, sold to individual houses via their own website, Amazon, BigBasket, etc.
The Magic powder/remix powder are the accessories that come with composters.
For FY 2021-22, their sales were INR 3.75 crore. Their gross margin is 45%. They were just breaking even with those sales numbers. However, their annual sales were INR 4.3 crore in 2019-2020. But their sales were cut down during Covid. Their sales the month before arriving on Shark Tank India were INR 26 lakhs.
Their patented product Terrabite costs INR 20,000. In comparison, the Khamba costs INR 3,500. And the recurring costs of magic powder and remix powder come to around INR 200-500.
Peyush advised them to lower the price of composters and increase the prices of powders.
Their 30% of sales come from community and home composters. Terrabit contributes 50% of their sales, and remix powder to 15%. They also have some miscellaneous products that contribute to the remaining 5%.
Anupam Mittal (CEO and Founder of Shaadi.com) applauded their vision but was the first to get out due to the huge prices of their products. He believed it’s hard to scale this product with such prices in India. Peyush Bansal (Co-founder and CEO of Lenskart) liked the idea and product but was the second to get out of the deal.
He believed they needed a team of innovators; otherwise, their competitors could leave them behind. Vineeta believed there would be challenges in scaling the product. Hence, she also quit the deal. Aman also loved the pitch but decided not to move forward.
Namita made an offer to them. She understood there are competitors and issues with margins, pricing, and revenue. However, she wanted to show that the venture was investible. She gave two big reasons.
- Environment is important.
- It’s enough with awards, and let’s invest some money in the social impact sector too.
She offered them INR 30 lakhs for 5% equity at a valuation of INR 6 crore and INR 50 lakhs in debt at an interest rate of 10%. Arjun felt the valuation got very low. He asked to invest INR 50 lakhs for 5% equity at a valuation of INR 10 crore and INR 30 lakhs as debt.
Namita wanted to keep the same amount for equity and debt but was willing to compromise on the valuation. The counteroffer became INR 30 lakh for 3% equity and INR 50 lakhs as debt.
Namita raised her offer to INR 30 lakh for 4% equity at a valuation of INR 7.5 crore and INR 50 lakhs as debt at 10% interest.
|Poonam Bir Kasturi and Arjun Dev
|Business is breaking even.
|Shark Tank Episode
|Season 2 – Episode 11
|INR 80 lakh for a 4% equity
|INR 30 lakhs for 4% equity at a valuation of INR 7.5 crore & INR 50 lakhs as debt @ 10% interest
|INR 7.5 crore
Daily Dump got a deal on Shark Tank India of INR 30 lakhs for 4% equity at a valuation of INR 7.5 crore & INR 50 lakhs as debt @ 10% interest.
Frequently Asked Questions About Daily Dump
After their appearance on Shark Tank India Season 2, people were trying to find more information about Daily Dump. Here are some of the frequently asked questions about them.
1. Who Are The Founders of Daily Dump?
Poonam Bir Kasturi and Arjun Dev are the founders of Daily Dump.
2. Is Daily Dump profitable?
Daily Dump is currently breaking even.
3. Why other Sharks did not invest in Daily Dump?
Peyush, Vinita, and Anupam did not invest in the venture because they felt the average order value was a little high, considering the Indian market. And they believed it was hard to scale the business. Aman Gupta did not give any clear reason to get out of the deal.
4. What happened to Daily Dump after Shark Tank?
Daily Dump secured INR 80 lakhs in the Shark Tank India episode, where INR 30 lakh was given for 4% equity and the rest INR 50 lakhs as debt at an interest rate of 10%. After the episode was aired, Daily Dump ran a sale of 10% on their official website.
With their appearance on Shark Tank India, it is evident that Daily Dump has raised awareness around the issue of personal waste. And we hope to hear more good news from them coming soon.