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.