“The consumer is not king…”: Aquapeya founders reveal unique success formula on Shark Tank India

Tushar and Ravi Mundada, founders of Aquapeya, recently revealed their unique business strategy while pitching their business idea on Shark Tank Season 4.

The duo, which has entered the FMCG sector since 2007, has built its strategy around an unusual but straightforward philosophy: “The consumer is not the king. The channel partner is the king.”

The two focused on their relationships with vendors and marketers instead of consumer preferences by ensuring that the people who moved their product were motivated, engaged and profitable.

“Shark Tank India was not just about funding. It was an entrepreneurial education that provided insights that went beyond financial support,” said Tushar while talking about brand visibility on national television.

With the platform’s support, Aquapeya is now poised to expand its production capacity by 50% in its existing facility by 2025. The aim is to scale operations and reach a revenue target of Rs 20 crore.

“We are cracking the market on trends,” he said, defending his strategy amid investor debate. With products covering 75% water, 13% jeera soda, 7% mango juice, and only 2% carbonated beverages, Tushar’s clear focus on consumer preferences fueled profitability from day one. The company closed FY2024 at Rs 9 crore, and with an EBITDA of 16%, the brand is targeting Rs 12 crore by FY 2025.

The founders told the judges that the bottles are sold at Rs 20 and the distributor price is Rs 6.5, leaving a 20% margin and Rs 1.25 operating profit per unit. However, the brand’s approach has sparked intense debate.

Piyush criticized the launchers saying “You are a copycat brand”, arguing that the business could not scale profitably.

“The company’s expertise in distribution should be copied and pasted pan-India,” said Namita Thapar, emphasizing the strength of Aquapeya’s model. Thapar also highlighted that the packaging of his products is very similar to the products already existing in the markets. “Aapka toh pura ka pura copy kiya hai, itna kyu copy kiya?”

One of the founders explained that they don’t see themselves that way. “We follow customer trends,” he said, elaborating on color-coding strategies.

The company started with a modest Rs 30 lakh in monthly revenue and a network of 25 dealers. Today, it generates Rs 1 crore in monthly revenue, supported by 90 dealers and around 10,000 outlets. Despite setbacks such as the COVID-19 pandemic, which cost the company significant sales during the summer seasons, Aquapeya said it maintains an annual growth rate of 20-25% in terms of volume.

Tushar attributes his success to his focus on building long-term relationships with channel partners. “Our growth is the direct result of the trust we have built with our partners. In the hard times, they have been with us, and we have focused on ensuring that our growth is sustainable,” he said.