Minimum Amount: INR 5,00,000

Startup Deal
For Investment HEM ANGELS
INVESTOR NETWORK Deal Closing: 15th March 2021

ABOUT START UP
COMPANY INTRODUCTION

01 Kerala Banana Chips is a plant-based savory snack company that

makes “better for you” category banana chips for the millennials.
04 Kerala banana chips is the no 1 selling banana chips brand on
Flipkart and stands at no 2 positions on Amazon. The company
has 22.14% of repeated orders and has an average product
02 The company uses ‘The Nendran’ variety of bananas and provides
consistent taste and texture. The process of manufacturing these
rating in E-Commerce at 4.5.

bananas chips is fully automated therefore has zero hand touch

and has a shelf life of up to 6 months.
05 The highest consumption of Kerala Banana Chips was from
non-south Indian states which were at 70% and amongst them;
Maharashtra was leading with 20% consumption.

03 The company offers its banana chips in 3 exotic flavors

a. Original 06 99% of the players in this market are unorganized and unbranded

b. Peri Peri which leaves a huge scope for the company to become the

c. Sour cream onion & parsley highest-selling ethnic snack.

ABOUT THE FOUNDER

Manas Madhu (Founder) – MBA graduate from Symbiosis Institute of Business Management. Exprience
Director – Sales at Kappo Foods for 2 years. Business consultant at IBS Software services. Senior onsultant
at Capgemini for 2 years. Team comprises of 4 core members which has already started working on
bringing other snacks to organized market and working on the formulation of more flavours that appeal to
continental and regional tastes.

KEY REFERENCES

• Incorporated in 2018 and • Headquarter – Kerala • Product – offers banana • Average product rating • Sold 120K packets,
the product was launched chips in 3 exotic variants – on e-commerce – 4.5 sales/month of INR
in Jan 2020 original, Peri Peri, Sour 17lac, and has 161 slices
cream onion & parsley. MRP in a packet
of Rs. 60 to Rs.80 per 85 gm &
100 gm packet respectively.

• Plain salted chips have • Repeated orders – 22.14% • No. 1 selling Banana • No. 2 selling Banana
33% sales whereas chips in Flipkart chips in Amazon.
Combo of Mix flavors
recorded 43% sales
 REVENUE MODEL
• Asset-light model.
• Located closer to raw material which reduces the transportation cost (3% currently)
• Gross profit margin of around 47% in offline business and 57% in online business.

• Plans to target 2050 outlets in Mumbai by April 2021 out of which 450 (stand-alone modern trade), 400 (A- category shops), 1200
(service counters) as the company follows the B2C business model.

REASONS TO CHOOSE US
First of its kind standardized branded Superior quality product and a strong
Banana chips: foothold in online platform:
First time bringing Banana Chips in a standardized branded format and We brought in standardization in each level of manufacturing with no
building the first national brand in Banana chips. What Lays did for human contact. Starting from Raw Material, Cooking process,
potato chips we are doing the same thing for Banana chips. 99% of the Temperature, Time for cooking, each and every step in it is changed to
players in the market are unbranded and unorganized and hence it is bring in this consistent taste and texture in banana chips. These are the
difficult to find a great quality banana chip in the market. Kerala tastiest banana chips in the world. Jan 2020 was the product launch as a
Banana Chips bring consistent taste and texture in banana chips in 3 B2C brand, within 6 months, the brand become No.1 on Flipkart and No.2
flavors, The original, Peri Peri, Sour Cream Onion Parsley. The brand on Amazon, The product has a repeated purchase rate of 22.14%. The
also planning to come with more flavors in the near future. Similar to average product rating across all the platforms is 4.5. MoM, we were
Potato, Banana chips have 2 major advantages, Familiarity (People growing at an average rate of 50%.
know banana Chips) and Likeability (People like banana chips). But like
potato, there was no standardization happened for banana chips and Potential to become no. 1 selling ethnic
hence banana chips were stuck where it was fifty years ago.
snack category and national brand
Studies show that branded products report a 25% increase in the last 5
Scalable & Viable Growth Model years. While the market as a whole is shifting from unorganized to
It plans to target 2050 outlets in Mumbai by April 2021 out of which 450
organized, for a well-accepted product such as banana, there are no
(stand-alone modern trade), 400 (A- category shops), 1200 (service
branded players that exist. Scalability-wise, banana chips are a category
counters). It will undertake faster penetration through the existing
that can be scaled up to the same level as a potato chips market. While
distributors in the market. Also, Company representatives will oversee
there is a 1.9Bn market opportunity, Kerala Banana chips open an
the supply and incentivize high throughput outlets.
opportunity to become the no. 1 selling ethnic snack category and
become a national brand.

Financials – Traction

Current Traction -
Current MRR – INR 17lac and Profitable. Started expanding in Maharashtra through offline channel and expected to close FY21 at INR
20cr.

Unit Economics in Absolute Value Financials & Projections:

Offline Online Sales  INR Cr FY20(A) FY21P FY22E FY23E FY24E
MRP 60 (85 gms) MRP 80 (100gms)
Revenue 0.36 20 113 340 510
MRP (A) 60 80 EBITDA 0.35 8.6 45.2 143 219
Trade Margins (B) 27.0 33.6 PAT 0.12 1.8 8.5 32 56
(Including Retail, distributors, tax)

Net Realisation of company (C) = (A-B) 46.4 Plans to sell 1.2cr packets, reaching 8000 outlets with 45% repeat orders in next
33.0
12 months.
COGS (D) 17.5 20 Current Fund Requirement & Usage
Gross Profit (C-D) 15.5 26.4 Total Fund Requirement: 3.65Cr Committed Finance secured:
1.25 Cr
Balance Fund Requirement: 2.4Cr
Gross Profit (%) on Realization (C-D)/C 47% 57%
Funds Usage: Expansion &
Previous Investor: Working capital - 54%, Manpower –
100x.vc 27.4% Marketing and Promotions – 17.8%

Hem Securities Ltd. 022 49060066

www.hemsecurities.com [email protected]