Basic Business Information
Business Name
AyuRythm
Owner’s Name
Abhilesh Gupta, Ramanath Padmanabhan, Sandeep Acharya
Location
Bangalore, Karnataka
Industry
Health And Ayurveda Technology
Ayurythm App uses phone camera to take images of finger/blood flow and processes it to produce ayurvedic diagnosis and treatment protocols.
Initial Ask
Amount Asked
Rs 75 Lakh
Equity %
2%
Valuation
Rs 37.5 Crore
Past Investment Round #1
Total Investment
Rs 70 Lakh
Equity %
5%
Valuation
Rs 14.2 Crore
Past Investment Round #2
Total Investment
Rs 2.25 Crore
Equity %
9%
Valuation
Rs 25 Crore
Offer #1
Shark
Aman Gupta
Offer Amount
Rs 75 Lakh
Equity %
5%
Valuation
Rs 15 Crore
Final Deal
Shark
Aman Gupta
Offer Amount
Rs 75 Lakh
Equity %
2.68%
Valuation
Rs 27.9 Crore
Below is our review of the deal. The business scores are our ratings from 0-10 for vital business aspects. Based on the available information about this deal, we provide our verdict on the deal. A deal may be either Sharky, Shaky or Win-Win deal. A no deal scenario may be either Missed Opportunity or Good Pass deal. Below are our definitions of the above mentioned deal types.
Sharky Deal is an investment deal where a business with high prospects closes a deal at a valuation lower than what the business could have probably achieved elsewhere.
Shaky Deal is an investment deal where a business with risky prospects closes a deal at a valuation higher than what the business could have probably achieved elsewhere.
Win-Win Deal is an investment deal where both the Shark and the business close a deal equally sweet for Shark and business.
Missed Opportunity is when Sharks miss investing in a good deal.
Good Pass is when Sharks avoid investing in a bad deal.
Business Scores
Technology Validation Score
5
Market Validation Score
5
IP Monopoly Score
3
Operational Sustainability Score
5
Cash Flow Sustainability Score
5
Scalability Score
8
Deal Verdict – Shaky Deal
Below are the reasons we believe this is a Shaky Deal.
- No revenue even after 2 rounds of investment of almost Rs 3 crore and 1.25 lakh app downloads.
- No existing patents and lack of potential patentability.
- Technology validation not achieved.
- Low customer retention and no customer monetization.
- Compliance requirements and clinical trials are remaining and expensive.
- PPG technology for measuring Oxygen levels is the underlying technology which is already used by oxymeters, smartwatches, etc.
- Core revenue model vision based on peripherals instead of core value proposal.
- Valuation based primarily on previous funding round valuation and lacks strong business fundamentals.
Win-Win Deal Scenario
Below are details on a deal that would have been equally sweet for both the Shark and the business.
Sensible Valuation
Rs 5.9 Crore
Win-Win Deal Amount
Rs 75 Lakh
Win-Win Deal Shareholding
12.3%
Win-Win Deal Shark
Any