Imdad Hussain
Indulge, a premium concierge service situated in Goa, India, made waves in the entrepreneurial world after participating in the first episode of Shark Tank India Season 4. Indulge, founded by Karan Bhangay and Advita Bihani, caters to ultra-high-net-worth individuals (UHNWIs), providing tailored services such as private dinner reservations and once-in-a-lifetime travel experiences. This distinct business strategy, paired with a strong entrepreneurial vision, captivated audiences and sparked questions about its scalability and future possibilities.
The Genesis of Indulge
Indulge was inspired by Karan Bhangay’s significant experience in the luxury category. Karan, a college dropout, spent several years editing a luxury magazine and organizing over 50 exhibitions for premium goods. His thorough awareness of the premium lifestyle and its demands prompted him to launch Indulge in 2020. In 2022, Advita Bihani joined the organization, adding operational expertise to compliment Karan’s creative abilities. They collaborated to create a concierge service unlike any other in India, focusing on the special needs of high-net-worth individuals. One of their remarkable services included sending a can of diet Coke for ₹4,000 to a remote Himalayan region, demonstrating their unwavering commitment to addressing client needs.
Indulge’s business approach is subscription-based, with two plans available: ₹4 lakh annually and ₹40,000 monthly. In addition to the subscription, they receive a 5% commission on transactions enabled through relationships with luxury businesses. Their clientele includes 183 HNWIs, with orders fulfilled in more than 180 countries. Their service offerings are divided into five different areas:
1. Travel
Comprehensive planning and preparations, ranging from luxury hotel reservations to personalized itineraries.
2. Retail
Sourcing unique products and organizing customized shopping experiences.
3. Dining
Making reservations at high-end restaurants and arranging exclusive dining experiences.
4. Experiences
Organizing one-of-a-kind, memorable events like helicopter flights or celebrity meet-ups.
5. Special Requests
Handling unique and occasionally bizarre requests, such as moving precious items or organizing surprise proposals. Despite its seeming niche appeal, the brand processed 25,000+ requests in two years, proving its operational capabilities.
Shark Tank India Pitch
Karan and Advita pitched to Shark Tank India for ₹50 lakh for 1% equity, with a corporate valuation of ₹50 crore. Their approach emphasized numerous strong financial metrics: –
Revenue:
- ₹2.1 crore over the last seven months.
- Net profit of ₹60 lakh in the same period.
Projected profit:
₹6 crore by FY 2024-25.
The entrepreneurs (Karan Bhangay and Advita Bihani) emphasized their goal of increasing the consumer base to 10,000 users globally over the next two years, with a concentration on places such as Dubai, Singapore, and London.
However, the sharks were skeptical of the business’s scalability. Anupam Mittal expressed concerns about openness, citing disparities in the financials disclosed. He said, “Your numbers do not match the picture you are painting. Transparency is essential while seeking investment.”
Vineeta Singh called the company a “random max,” questioning whether the service was truly necessary or only a luxury whim.
Similarly, Aman Gupta believed that the firm was too esoteric and unrelatable to the typical investor. As a result, the entrepreneurs exited the tank without completing a transaction.
Earlier Namita Thapar thought that this business model was great but after that, she didn’t feel like investing as she said “Naam bade aur darshan chote”.
Piyush was about to make a deal but then they said about equity distribution:
- Karan- 65%
- Advita- 5%
- ESOP- 5%
- CTO- 1%
- Angels- 6%
- Another Company – 18%
After hearing about this 18% of equity given by another company, Piyush has not made a deal.
What distinguishes Indulge?
Indulge’s fundamental strength is its hyper-personalized offerings. Unlike competitors, the organization pledges an unrivaled commitment to meeting client needs. Whether it’s making last-minute dining reservations at a Michelin-starred restaurant or acquiring limited-edition luxury items, the business touts itself as the go-to option for the elite. Their use of WhatsApp as the principal communication channel ensures accessibility and ease for their customers. The company’s expenditure of ₹53 lakh app development aims to improve service efficiency.
Their decision to use WhatsApp as the major communication channel ensures accessibility and ease for their clientele. The company plans to invest ₹53 lakh in app development to improve service efficiency.
Challenges Highlighted on Shark Tank
1. Scalability
The sharks suggested that the company concept may fail to expand without losing its personalized appeal. Maintaining exclusivity while adding new clientele is a tough balance.
2. Transparency
Investors reported inconsistencies in financial estimates. Karan and Advita must solve this issue in order to create trust with possible backers.
3. Target Market
While the UHNIs are profitable, it is a small and extremely particular market niche. It is difficult to expand outside this demographic while maintaining brand value.
Post-Shark Tank Development
Despite not getting finance, Indulge benefited greatly from the show’s prominence. The national exposure drew countless inquiries and boosted its image as India’s best premium concierge service. The company aims to reach 10,000 clients globally. – Improve technology infrastructure with app-based services. – Expand your offers to include mid-tier luxury experiences, thereby appealing to a wider audience.
The Future of the Luxury Concierge Market in India
India’s luxury concierge sector is in its early stages, but it has enormous growth potential due to an increasing number of HNWIs. As affluent people prioritize experiences over material goods, demand for personalized services is projected to rise. Indulge, with its dedication to providing personalized experiences, is well-positioned to capitalize on this.
Indulge, with its focus on providing personalized experiences, is well-positioned to capitalize on this trend. However, achieving scalability while keeping its unique exclusivity would necessitate a cautious plan.
Conclusion
Indulge shows the entrepreneurial ethos of recognizing and targeting specialized niches. Despite criticism of Shark Tank India Karan and Advita’s idea aligns with the changing desires of the affluent class. Their story also teaches companies about the significance of transparency and scalability when seeking external funding. Indulge’s future rests on how well it handles the problems mentioned during its Shark Tank pitch. By using the show’s exposure, developing its business plan, and incorporating innovative technology, the company has the ability to expand both domestically and worldwide.
In a world where exclusivity and personalization are valued, Indulge’s emphasis on making the impossible a reality demonstrates its potential. With tenacity and adaptability, it has the potential to become a global leader in the premium concierge industry.