Aretto: A Shark Tank Pitch Analysis

Aretto, a brand founded by Satyajit Mittal, was recently featured on Shark Tank India Season 3, aiming to secure investment for his organically growing shoes, specially made for kids. This analysis delves into the details of Aretto, encompassing its establishment, ownership structure, business model, products, and the Sharks' decisions regarding their pitch.

Company Details

Aretto has the company name Sanosyzo Private Limited with a company incorporation date on February 26, 2020. This company is registered in Pune, Maharashtra, India. The brand has sold more than 20,000 shoes and is available on its website and other marketplaces.

Ownership of Aretto Startup Ideas

Satyajit Mittal is the founder and CEO of Aretto. The company has authorized capital amounting to ₹15 lac, with a paid-up capital of ₹1 lac. Satyajit is from Pune and has always had a profound interest in problem-solving. His father was in the sales army, and his favorite class in school was clay modeling. Satyajit has also won awards such as the IF Product Design Award and the Good Design Award of Japan.

Business Model of Aretto Startup Ideas

Aretto is the world's first brand of shoes where shoes grow organically up to 3 sizes. Aretto makes shoes for kids to avoid repeat purchases after 3-4 months because of the growing foot size of children. The shoe grows organically without human intervention and is made from foam to avoid any harshness in the foot. They have patented technology which has 3 elements in it. The first is Super Grooves Technology which is nature-inspired to grow and adjust according to the size of the foot. Second is InfiKnit fabric which is stretchable and durable. The third is the Squishy Foam which takes the shape of the foot and provides support. All these elements together make the shoe flexible. The product was designed after two years of Research & Development. Aretto also has an EBO (Exclusive Brand Outlet) in Pune which was opened 4 months ago.

Products and Services of Aretto Startup Ideas

Aretto offers shoes for kids and toddlers. A look at the shoes and their prices can be found at: https://wearetto.com/.

Shark Tank Pitch and Decisions of Aretto Startup Ideas

Aretto presented the pitch in Shark Tank India Season 3 seeking an investment of ₹80lac for 1% equity stake (business valuation ₹80Cr).

• Vineeta Singh: Vineeta appreciated the designs and the logo of the product but considering the price, price doesn't serve the utility of the product for a growing foot. Overpricing the product doesn't make sense. And ultimately business might boil down. The appearance and fashionability make the making cost which may be a long-term challenge in the future. The EBO model might work out. But due to these reasons, Vineeta didn't make any investment.
• Aman Gupta: Aman didn't like the founder much because of the gimmicked behavior. The founder was not giving straight answers but was beating around the bush and changed his answers repetitively on the same question. Aman couldn’t relate with the founder and hence, he didn’t invest.
• Peyush Bansal: Peyush's son has already been using the shoes of Aretto but the committed quality didn't turn up. There was no authenticity in the investment deal also because of the Founder's future investment deal with some Ultra HNIs (High Net Worth Individuals). Hence, he didn’t invest.
• Namita Thapar: Namita states that longevity and durability is nowhere concerned in the minds of small kids. The decision-making has shifted from parents to children over the years. Kids are not concerned about comfort rather they are attracted more towards cartoon characters. Namita couldn't make out the scalability from the point of view of the consumer's mindset and hence, she didn’t invest.
• Anupam Mittal: Anupam said that the word of the year is something which shows authenticity and the founder lacked that authenticity and trustability. That's why he didn't invest.

Analysis of Shark's Decisions of Aretto Startup Ideas

The Sharks' decisions reflect several key considerations for Aretto:

• Logo Design: The logo picture of the brand was designed in a good manner which may be helpful to catch the eyesight of the consumers.
• Overpriced: The shoes were highly priced in terms of affordability in the Indian market.
• Less Utility: The prices of the shoes were not high enough to serve its use.
• Less Authentic: The quality committed by the brand is not up to the mark and promises (This is evident from the example of Peyush's son using those shoes).
• Scaling Issues: The Indian consumer mindset is not ready to spend a high amount of money on the purchase of shoes for a growing kid due to which there may be some difficulties while scaling the brand.

Some Key Strengths and Weaknesses of Aretto Startup Ideas:

Strengths:

• Attractive Designs: Aretto manufactures attractive designs that can attract kids to purchase the shoes.
• Comfortable Shoes: Aretto's technology of 3 elements combined together offers shoes which are comfortable, flexible, and durable. These facilities can add longevity to the shoes.
• Different Technology: The patented technology of Aretto has not been used by any other brand before, which offers a competitive advantage as well.

Weaknesses:

• Highly-Priced: The shoes are overpriced from the consumers' point of view.
• Scalability Problems: The Indian consumer mindset doesn't accept spending high money on shoes made for kids, which might hinder the business's scalability.
• Not Much Utilizable: The price at which 1 pair of shoes is sold is tripled the price of normal shoes. As a result, the utility served doesn't equate with the price.

Future of Aretto Startup Ideas

The future of Aretto cannot be predicted at this stage because of various problems and hurdles on the way. Moreover, the biggest mistake was that the founder didn't stick to his own words. As a result, there is a loss of brand and founder's trust. Aretto may grow in future if it is optimally priced and maybe the EBO outlet works for Aretto.

Conclusion

The appearance of Aretto in Shark Tank India Season 3 highlights the flaws in the brand in many ways such as pricing, promise of comfort, and many more. But more importantly, what is crucial is the founder's promise and commitment in the words that Satyajit lacked. Aretto might become a big brand in the future but certain modifications have to be made to the product and more specifically in the price.

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