Will Shark Hung Anh and Tue Lam's partnership with the Indian buyer lead to a big success?

Seeking an investment of $500,000 for an 8% stake in the company.

Indian founder Rajnish Sharma and Product Director Le Tho appeared to pitch for funding for their logistics platform. With 13 years of experience in logistics for local businesses, Rajnish Sharma observed that companies often have distribution centers in the North and South, resulting in higher distribution costs and longer delivery times.

Indian founder Rajnish Sharma and Product Director Le Tho came to pitch for funding for their logistics platform.

To mitigate those losses and bring transparency and flexibility, Rajnish has launched the Wareflex Vietnam logistics service platform.

Wareflex does not own any warehouses or truck fleets. Instead, the platform acts as an intermediary connecting businesses with warehousing and transportation service providers tailored to their specific needs.

In August 2023, the Wareflex platform launched to serve enterprise customers with warehousing and logistics needs. After more than two months, the platform had over 3,000 registered business accounts and 70 service requests.

Appearing on Shark Tank Vietnam, this startup sought the support of the Sharks, requesting an investment of $500,000 for 8% of the company's shares.

Initially, Wareflex focused on developing its partner network and now collaborates with over 150 service providers, totaling nearly 400 warehouses and almost 4,000 trucks.

Providing a more detailed overview of the business model and revenue outlook, Rajnish stated that the project was launched in December 2021. Initially, Wareflex focused on developing its partner network and currently collaborates with over 150 service providers, totaling nearly 400 warehouses and almost 4,000 trucks.

To enhance its business model's competitive advantage, Wareflex conducts prior verification and research of suppliers, then categorizes them according to 103 characteristics to make it easier for customers to find the most suitable service.

According to the founder, the startup's primary customer base consists of commodity companies. The journey of using Wareflex's services begins with arranging an initial meeting, signing an NDA (non-disclosure agreement), providing details of requirements, a trial period, and only then officially collaborating.

Spending approximately $40,000 per month, generating $1 million in revenue per month, and breaking even in 2025.

With this approach, by the time of fundraising, Wareflex had secured contracts worth over $500,000 and is expected to finalize another logistics contract worth $3 million in December 2023. Wareflex will receive a fee of 5-10% depending on the contract size, warehouse type, and services. Revenue recorded is $50,000.

The founder of Wareflex also revealed the goal of achieving an ARR (annual recurring revenue) of $1 million per month by October 2024. With a spending rate of approximately $40,000 per month, the startup estimates it will reach the break-even point by August 2025.

Two Sharks shook hands with startup Wareflex.

Regarding Wareflex's shareholder structure, Rajnish Sharma currently holds 60% of the shares; Product Director Le Tho and another co-founder each hold 3%; nearly 25% of the shares are held by two venture capital funds, and 10% is reserved for ESOP.

Having experience investing in independent logistics service providers, warehousing companies, management software companies, etc., Shark Tuệ Lâm showed interest in a company that provides all services on a single platform like Wareflex. She stated that she could bring partners in South Korea and the US to Wareflex and offered to invest $500,000 in exchange for 11% of the startup's shares.

Meanwhile, with the same investment of $500,000, Shark Hung Anh offered to exchange it for 15% of the company's shares.

There were two offers, but the business valuation didn't meet expectations, so Rajnish negotiated an investment of $500,000 in exchange for 10% of the shares and hoped to have both Sharks participate.

After careful consideration, Shark Hung Anh and Shark Tue Lam agreed to finalize a deal for Wareflex at $500,000 in exchange for 10% of its shares.

Shark Hung Anh and Shark Tue Lam agreed to jointly invest $500,000 USD in Wareflex in exchange for 10% of the shares.

As for the remaining Sharks, Shark Binh did not invest because he operates in the same field, Shark Minh Beta declined the deal due to insufficient data to assess the startup's chances of success. Shark Louis, who prefers investing in large-scale businesses, also decided not to invest.

Representing the startup Ong But on Shark Tank to seek funding is Do Chi Cuong – co-founder of the company. According to Chi Cuong's introduction, Ong But was founded by a group of founders including a technology company director and national award-winning teachers, with a total investment cost of approximately $1.5 million.

On Shark Tank Vietnam, Do Chi Cuong sought an investment of $1 million USD in exchange for 10% of his company's shares, to be disbursed within 3-6 months, with a commitment to recoup the investment within 3 years. However, the startup's fundraising was unsuccessful.

Source: https://www.baogiaothong.vn/cu-bat-tay-cua-shark-hung-anh-va-tue-lam-voi-thuong-vu-nguoi-an-do-co-lam-nen-chuyen-lon-192231205173244498.htm