Shark Minh Beta spent 39 billion VND with what request?

The brand is attached to the apartment but is valued at 300 billion?

LaGaia is a one-stop shop model, providing essential health care, relaxation and beauty services at one destination, targeting the main target group of women but also not forgetting the essential needs of men, the elderly and children.

The difference of this model is that “taking advantage of the vertical economy boom”, LaGaia “sticks to the apartment buildings, right at the foot of the building, where customers just need to press the elevator to use the service”. LaGaia's model is developed based on three factors: low investment cost, low operating cost and low service price.

Shark Tank tập 8: Shark Minh Beta chi 39 tỉ đồng với yêu cầu gì - Ảnh 1. — Co-Founders Ngoc Nguyen (left cover) and Dinh Huyen Trang (right cover) want to raise 39 billion VND for 10% of LaGaia shares - a chain of essential beauty and health care products for the whole family according to Korean standards.

LaGaia's first business location was only opened in March 2023 and after 5 months of operation, the company has opened 7 new business locations in all 3 regions of North - Central - South.

Revealing the profit margin, Ngoc Nguyen shared that in 2023, the system's revenue is expected to reach 24 billion and ebitda (earnings before tax, interest and depreciation) could reach 50%.

Faced with this figure, Shark Hung Anh expressed his curiosity: "I don't understand, I still can't figure out why she made a profit of 50%". As a former math major at Amsterdam School, Shark Minh Beta mentally calculated: If the sales are down, a store like you are calculating will make about 10 million a day, about 300 million a month, minus expenses such as rent, raw materials, marketing costs, and other expenses,... totaling about 50%, Shark Minh has clarified that the profit index of the model can be up to 50% as Co-Founder Ngoc Nguyen shared before.

However, Shark Binh thinks that this percentage is only relative and unrealistic: "It is only realistic when the point of sale has reached full capacity. It must run for at least 2 years."

Shark Tank tập 8: Shark Minh Beta chi 39 tỉ đồng với yêu cầu gì - Ảnh 2. — Co-Founder Ngoc Nguyen

With this comment from Shark Binh, the founders and operators of LaGaia also shared that they have carefully researched the market demand and potential customers. "In each district, we will focus on about 10 - 20 people to be able to bring customers to us in the first 2 months" - Ngoc Nguyen shared. In addition, the Co-Founder also affirmed that LaGaia does not follow the traditional spa model but only provides essential services for the whole family to use regularly every week.

Shark Tue Lam wondered: “I am asking for 39 billion for 10%. So let's say I have 39 billion now, why don't I open a chain myself, I own 100% of it, instead of investing in a chain where I only have 10%?”

With a brand that is still very new to the market, Shark Binh expressed his disagreement with this valuation method: "You just invested 10 billion here and are in a hurry to value the business 35 times higher than the amount of money you invested."

Shark Hung Anh and Shark Tue Lam decided not to invest because they thought: "If the profit is this huge, I will do it myself, there is no way I will spend 39 billion to own 10% of the shares". Shark Binh and Shark Erik also did not participate in the deal.

Spending 39 billion to close the deal, what does Shark Minh Beta demand?

Meanwhile, Shark Minh Beta continued to ask for more experience from the founding team. Accordingly, it is known that besides Ngoc Nguyen with 13 years of experience in the beauty industry, Huyen Trang has been in the fashion business for 15 years, the founding team of LaGaia also includes Mr. Tran Duc Minh with many years of experience in the F&B industry, who has been successful with many brands and food chains with more than 100 points of sale, and Korean friend Hye Jin in charge of R&D (research and product development).

Shark Minh commented that LaGaia has similarities with the model of Beta Cinemas - a low-cost cinema complex in his Artistic Urban Lifestyle style: "Actually, I think this model also has potential. My family also does a little spa business and recovers capital very quickly. In particular, I see certain similarities with the model of Beta Cinemas, following the low-cost direction and the price is also suitable."

Shark Minh Beta offered 39 billion for 25% of shares, which will be disbursed in stages with conditions on opening points and participation of Korean investors.

Beta Shark frankly made the deal: “9 billion disbursed in early 2024 to get 15%, and 30 billion disbursed in early 2025 to get another 15% with the condition that enough 20 points can be opened in early 2024 and enough 45 points in early 2025, reaching the 7-month payback index. And Korean investors must join in.”

After discussing with the operators, Co-Founder Huyen Trang still asked to keep the 39 billion for 10% of shares along with commitments to expand the business locations in each phase. Shark Minh continuously shook his head and said that he could not accept this investment level.

After many negotiations, Co-Founder Ngoc Nguyen emotionally shared: “Actually, standing here today, what I want most to convey to those who have started and are starting a business in the beauty industry is: we will create professional and systematic brands. My industry is considered to be uneducated businessmen. I want to convey that if I am standing here today, you will also create Vietnamese brands that can spread internationally or affirm yourself as truly knowledgeable businessmen - aiming for businessmen. And also aiming for this beauty industry to become more and more beautiful and civilized.”

Commenting that “it is not easy to open a chain like this on your own”, and impressed and impressed by the efforts of the Founders, Shark Minh Beta offered 39 billion for 25% of the shares, which will be disbursed in stages with conditions on opening points and the participation of Korean investors.