Imdad Hussain
In today’s fast-paced consumption culture, an incredible number of perfectly good things end up as waste. Gofig’s research in India suggests that nearly-expired and surplus FMCG products worth ₹5,000 crores to ₹50,000 crores are tossed annually. Amidst this massive waste, Gofig emerges as a forward-thinking firm committed to turning this difficulty into an opportunity—both for environmental benefit and economic gain.
Gofig, founded in 2023 by the dynamic entrepreneurial duo Gaurav Shah and Disha Shah, has a clear mission- to build India’s first impact-focused platform that rescues surplus and near-expiry products, reducing waste and providing amazing value to customers. With a combination of worldwide competence, strict quality standards, and an innovative business strategy, the founders are laying the groundwork for a long-term revolution in the FMCG industry.
The Genesis: Founder’s Story and the Spark of an Idea
The tale of Gofig is as much about its pioneering aim as it is about its founder’s extraordinary adventures. Disha Shah, hailing from Gujarat, provides a diverse set of academic and professional experiences. She earned her bachelor’s degree in Gujarat before pursuing a master’s degree in Electronics and Telecommunications at the Illinois Institute of Technology in the United States.
Her career led her to Philips Healthcare in California, and she quickly entered the European digital sector by working for a tiny startup in Germany. Her leadership and strategic skills were sharpened during a decade-long stint as project head for the German government. Disha most recently worked as the Senior Vice President of Business at Bobble AI, a software firm, where she gained personal knowledge of the complexities of business growth before making a bold shift in 2023 to co-found Gofig.
Gaurav Shah, a Pune native, has carved out a niche for himself through a successful academic and professional career. He received his bachelor’s degree from the University of Maryland, then a master’s degree from Carnegie Mellon University, and, later, an MBA from INSEAD in France. Gaurav’s job brought him to Germany for five years, and when he returned to India, he became the CEO of his family’s engineering company for eight years. He later expanded his international experience by consulting in Hong Kong. Disha and Gaurav bring a unique blend of technological expertise, strategic insight, and operational expertise qualities that form the backbone of Gofig.
The Inspiration Behind the Idea
During a trip to Hong Kong, Disha came across a store called Green Price that offered deep discounts on everyday products while also displaying expiry dates. This revolutionary concept inspired Disha to create a similar model in India.
The Gofig: Model
Gofig’s business concept is based on a stunning statistic: each year in India, between ₹5,000 crores to a whopping ₹50,000 crores worth of near-expiry and surplus FMCG products are abandoned as waste. This is not only a massive financial loss, but also an ecological disaster. Gofig intends to regain this value by buying surplus products directly from brands and selling them to a varied consumer base at unbelievable costs. They establish a win-win situation by recovering costs on unsold goods, providing large discounts to consumers, and benefiting the environment by reducing waste.
Core Offerings
Gofig’s creative services are numerous:
1. Surplus and Near-Expiry FMCG Inventory:
The platform collects surplus and near-expiry products from top brands and offers them to discerning buyers.
2. Transport Information on Expiry Dates:
To promote openness and confidence, each product listing includes complete expiry information.
3. Green Discounts:
Beyond monetary savings, Gofig promotes environmentally beneficial practices by promoting the purchase of things that would otherwise be discarded.
Ensure Quality Through a Rigorous Process
Quality is everything in the FMCG industry, and Gofig goes to great lengths to ensure that every product featured meets the highest standards. The company uses a 5-step Quality Check Process for each FMCG batch:
- Label Verification: Ensures all labels are correct and legible.
- Expiry Date Verification: Ensures that products are within safe consumption restrictions.
- Smell Assessment: Identifying any unpleasant scents that may suggest decomposition.
- Texture Consistency: Look for any unusual variations in product consistency.
- Taste Testing: Conducting controlled tastings to guarantee flavor consistency.
This comprehensive approach not only protects consumer health, but also strengthens the trust between Gofig, its brand partners, and its customers.
Channels and Partnerships
Gofig’s products are provided via a multichannel approach:
- Own Website: The digital shop serves as the primary interaction between the platform and its users.
- Pop-Up Kiosks: Strategically located on corporate and university campuses, these kiosks provide a physical touchpoint for the tech-savvy and environmentally sensitive clientele.
- Permanent Kiosks: To provide extensive accessibility, Gofig intends to install permanent kiosks in key urban areas.
To date, Gofig has successfully signed 40 brands as partners. These brands are paid directly based on product sales, guaranteeing a seamless and performance-driven connection.
Financial Analysis: Revenue, Unit Economics, and Capital Structure
Despite its recent inception in 2023, Gofig has already shown significant sales growth, indicating early market traction. The monthly revenue figures are as follows:
- June 2024: ₹90,000
- July 2024: ₹1.67 lakhs
- August 2024: ₹3.27 lakhs
- September 2024 (Projected): ₹3 lakhs.
These data, albeit small, show a promising rising trend as Gofig improves its operations and grows its market presence.
Unit Economics and Gross Margin
One of the most appealing characteristics of Gofig’s model is its unit economics. With a gross margin of 35%. The firm has established a financially stable framework from the start. Gofig’s key drivers are direct brand partnerships, which remove middleman costs.
Efficient Logistics and Delivery:
The company handles all product deliveries in-house, ensuring timely delivery and cost management.
Performance-Based Payments:
Brand partners are compensated exclusively for product sales, lowering the risk of unsold inventory and aligning incentives.
These elements combine to provide a strong unit economy, placing Gofig for long-term success.
Capital, Equity, and the Shark Tank India Experience
In a bid to accelerate growth and broaden its reach, Gofig made a high-stakes appearance on Shark Tank India. During the pitch, the founders sought an investment of ₹50 lakhs in exchange for 2% equity, effectively valuing the company at ₹25 crores. This ambitious valuation underscored their confidence in the scalability and impact of their business model.
However, the pitch met with mixed reactions from the panel of Sharks. One investor, Aman, humorously remarked, “Mujhe laga kuch khane ki chiz hai, kuch khane ko milega,” expressing disappointment that the platform had yet to launch an offline store—a critical component in his eyes for consumer food products. Despite the general consensus among the Sharks that Gofig possessed one of the most promising models, the absence of a physical storefront was seen as a significant gap in the strategy.
Capital, Equity, and the Shark Tank India Experience
Ultimately, Peyush emerged as the sole interested investor, proposing ₹1 crore for 33.33% equity, which implied a much lower valuation of ₹3 crores. Peyush’s offer came with a firm suggestion to open an offline store to bolster credibility and consumer trust. In response, the founders countered with an offer of ₹1 crore for 5% equity, reflecting their belief in the company’s true value and growth potential. The counteroffer, however, did not meet with acceptance, and the deal fell through. Notwithstanding this setback, Gofig is planning to raise an additional ₹2.5 crores to fuel its expansion plans.
The pitch, however, elicited mixed comments from the Shark panel. One investor, Aman, noted amusingly, “mujhe laga kuch khane ki chiz hai, kuch khane ko milega,” indicating regret that the platform has yet to build an offline store, a vital component in his opinion for consumer food products. Despite the Sharks’ opinion that Gofig had one of the most promising models, the lack of a physical storefront was viewed as a significant weakness in the plan.
Peyush was the lone interested investor, proposing ₹1 crore for 33.33% equity, resulting in a significantly lower valuation of ₹3 crores. Peyush’s offer included a solid proposal to create an actual store to increase reputation and consumer trust. The founders responded with an offer of ₹1 crore for 5% equity, demonstrating their confidence in the company’s underlying value and development potential. However, the counter-offer was not accepted, and the transaction failed. Despite this setback, Gofig intends to fund an extra ₹2.5 crores to support its expansion objectives.
Conclusion
In an era where waste is both a financial and environmental responsibility, Gofig stands out as a shining example of innovation, transforming surplus into sustainability and a daunting task into a viable, beneficial business. The path ahead is difficult, but with a clear goal, committed leadership, and a model based on trust, openness, and technology, Gofig is poised to change the way India addresses FMCG waste, one surplus product at a time. With each step ahead, Gofig reinforces its dedication to waste reduction, resource conservation, and beneficial environmental effect. It’s a journey that began with a simple yet powerful notion in a modest Hong Kong store and is now on track to transform an entire industry in one of the world’s most lively markets.