Aurangzeb, the founder of Porter Pakistan, who appeared in Shark Tank Pakistan secured Rs10 million for 25 per cent equity after he pitched for the same amount for 10 per cent equity.
Two investors — Rabeel Warraich and Romanna Dada — from the panel were amazed by the business model and offered their number, which was negotiated to the final deal.
Porter Pakistan pitch
Founder of Porter Pakistan, an online platform offering solutions for travel enthusiasts looking to book travel services, initially explained the company’s business structure and added that the projected revenue of the company for this year stands at Rs40.8 million.
Aurangzeb further explained that the net profits, which come after paying the hotel booking, count at 12 per cent. Breaking down the business revenue, the Porter Pakistan founder added that as per 12% profit, the margin stands at 5.8 million.
Furthermore, the cost of sales counts at around Rs 0.4 million and he suggested the EBITDA (earnings before interest, taxes, depreciation, and amortization) at Rs2.7 million.
For the entrepreneur’s demand of Rs10 million for 10 per cent equity, three investors Faisal Aftab, Junaid Iqbal, and Aleena Nadeem rescued themselves from investing in the business and extended best wishes for future endeavors.
Romanna Dada, a venture capitalist, offered Rs10 million for 25 per cent equity and 4 per cent royalty, whereas Rabeel Warraich proposed an investment of Rs10 million for 25 per cent equity and 5 per cent royalty.
However, the Porter Pakistan founder negotiated for an investment excluding royalty. In the exchange offer, Romanna proposed Rs10 million for 30 per cent, which was initially rejected by Aurangzeb.
Following the competitive bidding process, both sides agreed on Rs10 million for 25 per cent equity.
Pitch overview
- Pitcher: Aurangzeb
- Ask: Rs10 million for 10 per cent equity
- Business: Porter Pakistan
- Result: Founder and venture capitalists agreed on Rs10 million for 25 per cent equity.
