Elitty : Makeup Startup ideas

Elitty is a makeup brand built for teenagers.Elitty offers a variety of products including eyeliners, lip gloss, nail polish and customizable makeup kits. Their products are made from skin-friendly ingredients that suit the sensitive and acne prone skin of teenagers.The products are manufactured just for teenagers that matches their vibe for every occasion.

Company Details

The company name of Elitty is Alluvium Beauty And Skincare Private Limited .It is a Private incorporated on 25 May 2021. It is classified as a Non-government company and is registered at Registrar of Companies, ROC Delhi. Its authorized share capital is ₹11 Lakh and its paid up capital is ₹ 3.94 Lakh.It is involved in the manufacturing of teenage makeup products.

Ownership of Elitty Startup Ideas

The company was founded by Vailina Tulsani and Pranali Janbandhu in May 2021. The equity split of the company is as follows:
Vailina Tulsani - 40%
Pranali Janbandhu - 25%
Investors - 35%

Business Model of Elitty Startup Ideas

Elitty Beauty sells makeup products to teenagers. Their target market is Gen Z and Gen Alphas. The products are available on the Elitty Beauty website and other online marketplaces such as Nykaa, Myntra, etc. The company uses social media platforms like Instagram to promote their products and they do influencer marketing. They have kept their price lower than adult beauty brands to attract more teenagers.

Products and Services of Elitty Startup Ideas

Elitty offers a diverse range of cosmetics and makeup products specifically designed for teenagers. Their product line includes a variety of vibrant eyeliners, available in 22 different colors and finishes, such as matte and metallic. These can be used for making graphic eye looks as shown in the pitch. Additionally, they offer lip gloss and teenage-friendly nail polish. Elitty also provides customizable makeup kits that make this brand a creative one. The company's focus on inclusivity, sustainability, and affordability has made it a popular choice among young people. The products are made of ingredients that suit teenagers' sensitive and acne-prone skin.

Business Valuation of Elitty Startup Ideas

Elitty presented their pitch in Shark Tank India Episode 11 seeking an investment of ₹1 Cr for 4% equity.

• Aman Gupta: He shows his concern regarding the profitability and growth of the company and the limited funds available. He was impressed by the understanding of the target market that the founders had. He found the investment in this business to be risky thus did not invest.
• Vineeta Singh: She suggested the founders to lower the price by 30-40% to cater to more teenagers as young people seek "value for money".
• Namita Thapar: Namita liked the product and its packaging, especially the colored eyeliners.
• Anupam Mittal: He wanted to help the founders in shaping the business. He gave an offer of ₹1 Cr for 15% equity. However, the founders did not accept this offer due to low valuation.
• Ritesh Agarwal: He says the founders needed to figure out how to be profitable as the current situation was undesirable, the company was running in losses and was short of funds.

Bizfoc Analysis of Shark Decisions of Elitty Startup Ideas

Elitty didn't secure a deal on the show but the exposure likely helped brand awareness. Only Anupam was willing to invest but wanted 15% equity that was much higher than 4% that the founders were willing to dilute. The business had a burn rate of ₹10 Lakh per month that is high that's why the sharks did not find the business investible.

Some Key Strengths and Weaknesses of Elitty Startup Ideas:

Strengths:

• Unique Target Market: Elitty focuses on teenagers, a demographic often overlooked in the cosmetics industry.
• Inclusive Product Range: Offers a diverse range of products suitable for various skin types and tones.
• Customizable Options: Elitty allows customers to personalize their makeup kits, enhancing the brand's appeal.
• Affordable Pricing: Elitty's products are priced competitively, which makes it easy to scale.
• Strong Online Presence: There is effective use of social media platforms for marketing and engagement.

Weaknesses:

• Limited Product Line: Currently, Elitty only offers a limited range of products.
• Dependence on Online Sales: Elitty depends largely on online sale channels. It is required to explore offline channels as well.
• Competition from Established Brands: Elitty faces competition from established cosmetics companies such as Sugar, Lakme that may expand into the teenage market.

Future of Elitty Startup Ideas

The future of Elitty is uncertain. It depends on a large number of factors. The business was incurring huge losses (₹10 Lakh per month). They are required to overcome this situation if they wish to succeed. They have cracked the product but efficiency in operations is required. Elitty needs to expand their product range in order to sustain in the market. Appearing on Shark Tank has brought this brand into the spotlight potentially leading to more sales and brand recognition.

Conclusion

The Sharks were impressed with their passion and the large Indian teenage market. Their sales figures (around 11 lakh rupees) were relatively low and the negative contribution margin raised concerns about profitability. Due to these reasons the valuation was considered too high by the sharks. Hence, none of the sharks found this business investible. The makeup market is crowded, so Elitty needed to show a clear competitive edge.

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