Tohands: Transforming Retail Transactions with a Smart Calculator
Founded in 2018 by Praveen Mishra and Shanmuga Vadivel, Tohands emerged from a simple observation: the need for a smarter way for small businesses to manage their finances. This Bengaluru-based company developed a revolutionary "Smart Calculator" specifically designed to address the challenges faced by shopkeepers in India. Their appearance on Shark Tank India Season 3 not only secured funding but also catapulted Tohands into the national spotlight.
Simplifying Shopkeeping with Smart Technology
Tohands operates within the B2B space, catering specifically to the Retail market segment. Their core product is a physical, Android-compatible smart calculator equipped with innovative features. These features go beyond basic calculations, enabling shopkeepers to record transactions, track inventory, manage cash flow, and streamline record-keeping. In essence, Tohands bridges the gap between traditional calculators and expensive billing machines, offering a cost-effective and user-friendly solution for small businesses.
A Bold Pitch and Shark Negotiations
Entering the Shark Tank, Praveen and Shanmuga presented their vision with confidence. They requested ₹55 Lakhs (approximately $7,000 USD) for a mere 1% equity stake in their company, implying a valuation of a staggering ₹55 Crore (approximately $700,000 USD). While the Sharks acknowledged the potential of Tohands' technology, concerns arose regarding the high valuation considering the company's early stage (founded in 2018) and modest revenue figures (₹1.78 Lakh or approximately $2,390 USD as of March 31, 2022). However, the founders effectively demonstrated how Tohands addressed a critical need for millions of small businesses in India.
A Strategic Investment for Growth
After a series of negotiations, a deal emerged. Radhika Gupta, Managing Director of Edelweiss Wealth Management, and Varun Dua, Founder of Acko General Insurance, joined forces to invest ₹60 Lakhs (approximately $7,500 USD) for a 2% equity stake in Tohands. This revised valuation reflected a more realistic assessment while providing Tohands with crucial capital for growth.
Beyond the Tank: Expanding Reach and Building User Base
Since their appearance on Shark Tank India, Tohands has witnessed significant progress. Their mobile app has seen increased downloads, suggesting a growing user base. Social media engagement has also surged, indicating a strategic focus on online marketing. Furthermore, Tohands secured an additional $72,400 in Angel funding in March 2024, led by Radhika Gupta and Varun Dua, demonstrating continued investor confidence in their vision.
Shaping the Future: User Experience and Partnerships
To solidify their position in the market, Tohands can focus on enhancing user experience and strategic partnerships. Developing additional features and integrating with popular accounting software can further increase the value proposition for shopkeepers. Additionally, partnerships with retail associations and distributors can broaden their reach and facilitate widespread adoption across India.
A Valuation Lesson: Striking a Balance
Tohands' journey on Shark Tank India highlights the importance of a balanced approach to valuation. While a confident presentation is essential, understanding investor expectations and presenting a valuation commensurate with revenue figures strengthens the pitch. Securing funding from well-respected investors like Radhika Gupta and Varun Dua validates Tohands' potential to revolutionize the way small businesses manage their finances.
Empowering Small Businesses
Tohands' appearance on Shark Tank India underscores the growing demand for tech-driven solutions tailored to the needs of small businesses. Their ability to secure funding and gain national exposure highlights the transformative potential of affordable financial technology. By focusing on user experience, strategic partnerships, and continuous development, Tohands is poised to empower millions of shopkeepers in India, simplifying their daily operations and propelling them towards financial success.
Key Takeaways:
· Founded in 2018 by Praveen Mishra and Shanmuga Vadivel, Tohands offers a smart calculator designed for in-store businesses.
· Secured an investment of ₹60 Lakhs from Radhika Gupta and Varun Dua on Shark Tank India for a 2% equity stake.
· Ranked 174th among competitors in the in-store retail tech space, Tohands can solidify its position through strategic partnerships, product development, and a focus on user experience.
Tohands' journey on Shark Tank India showcases the potential for innovative technology solutions to address the specific needs of small businesses. Their ability to secure funding and gain exposure highlights the growing demand for tools that can streamline operations and improve efficiency. By focusing on user-centric features, partnerships with relevant stakeholders, and a continuous drive for innovation, Tohands can empower small businesses across India, contributing to their growth and success.