Danish Ghaffar and Safiullah, the CEO and co-founder of DigiLawyer, who appeared in Shark Tank Pakistan secured Rs140 million in funding for 20 per cent equity after they initially pitched for Rs50 million for 7.5 per cent equity, valuing the company at Rs670 million.
The investor, Faisal Aftab, from the panel amazed by the business model and offered his numbers, which was negotiated to the final deal.
DigiLawyer pitch
Founder of DigiLawyer, an AI-based legal co-pilot for lawyers that helps them in legal research, drafting, and document management, initially explained the company’s charging model and major clients of the firm. The company founder explained that they charge clients in three tiers, classifying the amount as $25, $75, and $150 per user per month.
Danish Ghaffar further said “We initially launched the company but due to accuracy issues, the operation halted. Later, we re-launched it last week and received a huge response from the clients as eight law firms bought our services, which led to around Rs0.5 million in revenue.”
Explaining the use of funds, the company’s CEO explained that 40 per cent of the amount will be used for Product Development, 30 per cent for growth and sales, and the remaining 30 per cent will be used for expansion.
For the entrepreneur’s demand of Rs50 million for 7.5 per cent equity, all sharks except Faisal Aftab rescued themselves from investing in the business and extended best wishes for future endeavors.
Faisal, a venture capitalist, offered Rs140 million for 20 per cent equity. Elaborating on his deal, Faisal offered to give Rs70 million with 10 per cent equity immediately, while the remaining, he said, would be given in the next phase.
Following the competitive negotiations, both sides agreed on Rs140 million for 20 per cent equity.
Pitch overview
- Pitcher:Danish Ghaffar and Safiullah
- Ask: Rs50 million for 7.5 per cent equity
- Business: DigiLawyer
- Result: Both sides agreed on Rs140 million for 20 per cent equity
