WYLD: A Shark Tank Pitch Analysis

WYLD, a brand founded by Yash Sakhlecha, Rij Eappen, and Dishant Sanghvi, recently featured on Shark Tank India Season 3, aiming to secure investment for their world's first social currency powered payments card VISA payments bank. This analysis delves into the details of WYLD, encompassing its establishment, ownership structure, business model, products, and the Sharks' decisions regarding their pitch.

Company Details

WYLD, a brand registered with the company name as Qwerty Marketing Solutions Private Limited with the incorporation date on March 29, 2019. This company is registered in Mumbai, Maharashtra, India. They currently have more than 200 partner brands with a total reach of more than 40lac.

Ownership

WYLD is owned by Yash Sakhlecha, Rij Eappen, and Dishant Sanghvi. Yash serves as the COO, Rij as CMO, and Dishant as CEO. The business was started in July 2023. All the three founders are from Mumbai.

Business Model

WYLD is the world's first social currency powered payments card VISA payments bank. It provides earning opportunities to Instagram users with 1k+ followers. Users can apply for a WYLD Card on the website, get approved, and then shop or dine at partner brands or restaurants. After making a purchase, users need to post a picture or upload a story on Instagram, tag the partner brand and WYLD, and receive cashback ranging from 30% to 100% on the card. Cashback can be used for any purchase or payment. WYLD provides personalized cards that function like virtual cards on the app with prepaid investment. These cards work like debit cards but are not linked with bank accounts. The business has three revenue streams: charging 10% of sales value as an affiliate fee from partner brands, 1% of the transaction amount as Merchandise Discount Rate (MDR) from partner brands, and ₹599 as a one-time fee for physical cards. The vision is to provide social media users and influencers with a better and upgraded lifestyle with benefits.

Products and Services

WYLD provides earning opportunities for influencers with more than 1k+ followers. Users can apply for a WYLD card on their website: https://www.getwyld.in/.

Shark Tank Pitch and Decisions

WYLD presented their pitch in Shark Tank India seeking an investment of ₹50lacs for 0.5% equity (Valuation ₹100Cr).

1. Azhar Iqbal: Azhar liked the pitch and the product, appreciating the positioning strategy where customers are made market players. He found the cashback numbers amazing but felt the valuation was high for a business started only two months prior. He offered ₹75lac for 1.5% equity (Valuation ₹50Cr) along with Namita and Peyush, but the offer was rejected.
2. Amit Jain: Amit noted some risk angles from social media networks but appreciated the concept and teamwork. He initially offered ₹11lac for 0.2% equity (Valuation ₹55Cr) plus ₹39lac debt at 12% interest spread over three years. Later, he revised the offer to ₹50lac for 1% equity (Valuation ₹50Cr) but wanted a solo deal.
3. Namita Thapar: Namita was impressed by the business model and believed in its future growth. She initially offered ₹50lac for 5% equity (Valuation ₹10Cr) with Azhar, later revising it to ₹50lac for 2.5% equity (Valuation ₹20Cr). When other Sharks offered their investment deals, the offer was revised again, ultimately offering ₹75lac for 1.5% equity (Valuation ₹50Cr), but it was not accepted by the founders.
4. Peyush Bansal: Peyush found the business space interesting but noted some regulations and risks. He was impressed with the team combination and offered ₹50lac for 2.5% equity (Valuation ₹20Cr). The offer was later revised along with Azhar and Namita to ₹75lac for 1.5% equity (Valuation ₹50Cr), but it was rejected.
5. Anupam Mittal: Anupam was skeptical about the customer take rate but accepted the risk of dependency on social media networks. He offered various deals, with the final offer being ₹75lac for 1.5% equity (Valuation ₹50Cr), which was accepted by the founders.

Analysis of Shark's Decisions

The Sharks' decisions reflect several key considerations for WYLD:

• Overvaluation: The business was started recently, leading to concerns about its valuation being too high.
• Amazing model: Despite valuation concerns, the unique business model and strong fundamentals showed positive prospects for future growth.
• Strong fundamentals: The core concept and cashback numbers offered by the brand were appealing, along with the brand's own revenue streams.
• Dependency risk: The brand's reliance on current social media platforms, such as Meta and Instagram, was seen as a potential risk.

Some key strengths and weaknesses of WYLD:

Strengths:

• Future prospects: The business, with strong fundamentals and proper channels, has future growth prospects.
• Cost cutting for client companies: Client companies can reduce about 80% of the cost of digital marketing through WYLD Card, serving as a great marketing tool for both the brand and prospective brands.
• Positioning strategy: WYLD Card's positioning strategy, where customers are made market players, is effective.

Weaknesses:

• Dependency on other platforms: WYLD Card is dependent on the operations of social media platforms such as Meta and Instagram.

Future of WYLD

While companies are increasingly looking to social media platforms for advertisements and digital marketing, WYLD Card shows potential for future growth. Additionally, companies can save up to 80% of their marketing costs using WYLD Card, making it an attractive proposition for prospective client companies.

Conclusion

WYLD Card's appearance on Shark Tank India Season 3 showcased how a business can leverage social media platforms to provide a steady source of income to influencers with even a modest following. The business model's ability to provide an 80% reduction in marketing costs for client companies is a strong selling point. Overall, WYLD Card has positive growth prospects for the future.

Quick Summary: