Stitching Success of Raja Rani Coaching Couple on the Stage of Shark Tank India
In the vibrant tapestry of India's fashion landscape, there are few stories as inspiring as that of Mohit Kalubhai Gadhiya and Priya Gadhiya, the dynamic duo behind the famous Raja Rani Couture and coaching centre. Their journey from small beginnings to pioneering entrepreneurs is a testament to their determination and relentless pursuit of excellence.
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Education and Entrepreneurial kick
The genesis of their venture traces back to a simple yet profound invitation from Mohit's sister-in-law to join her in the rental clothing business which was started in 2014. This innocuous offer set the stage for a remarkable transformation. After completing school, Mohit was running a boutique with his sister-in-law. But Mohit had very little knowledge about the intricacies of clothing, so his sister-in-law suggested him to learn about the clothing industry. He decided to go on a journey of discovery about clothing and fashion. He enrolled in a tailoring institute where he was the only male among 70 female classmates.
It was here that fate intervened, and he met Priya during classes which changed their lives forever. Their shared passion for design and clothing led them to pursue further education at the International Institute of Fashion Design Surat. They also got married to each other. However, during their course, they experienced a stark contrast between larger institutions focusing solely on illustration and smaller ones lacking in methodology. It was this realization that planted the seed for their ambitious vision - to create an institute that seamlessly blended the best of both worlds.
Despite facing numerous obstacles along the way, including societal stereotypes and financial constraints, Mohit and Priya remained undeterred. They were armed with the desire to bridge the gap in the tailoring industry, so they set out to establish the Raja Rani Couture and Coaching Centre in the year 2021. Their goal was not just to impart technical skills but to nurture creativity and innovation, empowering individuals from all walks of life to pursue their passion for fashion.
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The journey was fraught with challenges. Yet, with unwavering perseverance and a relentless pursuit of excellence, they turned their vision into reality. Today, Raja Rani stands as a beacon of hope for aspiring designers and tailors across India. The mantra of their success is their unwavering commitment to quality and innovation. They offer a diverse range of courses. They have revolutionized vocational training in the tailoring industry, attracting a diverse clientele that includes boutique owners, tailors, high school graduates, and fashion design enthusiasts.
They offer their 4-month course at Rs. 37,500. They also have their most selling trial blouse class, for Rs. 4000. Their hybrid approach, combining offline centres in Surat with online training, has further expanded their reach, enabling them to impact lives beyond geographical boundaries. They have a great social media image with 16 lakh followers on Instagram, 3.3 lakh on YouTube and 42k on Facebook. Moreover, their recent foray into rental clothing services has added another dimension to their business, catering to the evolving needs of their clientele.
Future Plans
The couple has also planned to launch a new course on Boutique management course, Faion photography and illusions courses. In a recent conversation in the Shark India episode, they shared their future ideas and plans. Beyond their professional achievements, Mohit and Priya's journey is a testament to the transformative power of passion and perseerance as they navigate the highs and lows of entrepreneurship. Amid their entrepreneurial journey, the couple welcomed a new one to their family - a baby boy.
After recognizing the financial barriers that often hinder some students from pursuing their dreams, Priya & Mohit also established a scholarship-free coaching program for underprivileged individuals. This helped countless students with underprivileged lives. Their move has empowered individuals from economically disadvantaged backgrounds to acquire valuable skills and secure better job opportunities. Many talents have received the training and support they need to kick-start their career.
Financials and Unit Economics
In the fiscal year 2022-2023, they generated revenue of Rs. 78 lakhs, and in the subsequent fiscal year (2023-2024), their sales surged to Rs. 2 crores. They are projecting sales of Rs. 6 crores for the upcoming project with over 70,000 students, projected profit is 44%.
Understanding unit economics
Their Gross Merchandise Value amounts to Rs. 118, out of which Rs. 18 are deducted as GST, resulting in a net revenue of Rs. 100. With a Cost of Goods Sold (COGS) of Rs. 25, the gross profit stands at Rs. 75. After considering the Customer Acquisition Cost (CAC) of Rs. 7 and other associated costs of Rs. 1, the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is Rs. 67. After accounting for depreciation of Rs. 1, the final EBITDA is Rs. 66.
Deal with Sharks
After the initial pitch, the founders of Raja Rani asked for INR 1.3 Crores for 5% equity at a valuation of INR 26 crores. All the sharks were impressed with the revenue and business model. Amit proposed 1.3 crores as debt with 10% royalty until 2.6 crores recouped while Anupam offered 50 lakhs for 10% equity plus 80 lakhs debt at 15% interest. The founders countered with a deal comprising 50 lakhs in exchange for 6% equity, coupled with 80 lakhs provided as debt at 15% interest rate. However, this was not accepted by either of the sharks.
In conclusion, the story of Raja Rani's founders serves as an inspiration to all aspiring entrepreneurs, reminding us that with courage, resilience, and unwavering determination, any dream is within reach. They continue to weave their legacy into the fabric of India's fashion industry. They are changing the dynamics of learning which is more focused on skill learning rather than focusing on only bookish knowledge.
Sources
https://www.rajaranicoaching.com/
https://youtu.be/9HXfP_Kfw7Y?si=51iegWEmjQUuiEKM
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