12 billion for 25% stake!
Opening Shark Tank Vietnam season 5 with a risky swing, the founder of Jungle Boss – Le Luu Dung came to call for VND 12 billion for 10% of the company’s shares.
Selling adventure rope swing tour for 35 million VND, exclusively in Quang Binh
According to the introduction, Jungle Boss is an adventure tourism business, exploring caves in Phong Nha – Ke Bang (Quang Binh). Currently, the company is exploiting 8 products with different levels of difficulty and adventure such as exploring the Ma Da valley, exploring the national park, camping, … with prices ranging from 800,000 to tens of millions copper.
Especially, Kong sinkhole discovery tour with 100m vertical rope swing experience is the first and only product in Vietnam, priced at 35 million VND for 5 days and 4 nights. This tour is also contributing the most revenue for Jungle Boss.
According to the founder, the tours that Jungle Boss deployed have been exclusively allowed by Quang Binh province to exploit.
Kong sinkhole discovery tour is the most popular tour of Jungle Boss
From 2016 to now, this unit has welcomed more than 40,000 guests. In 2018, Jungle Boss recorded a revenue of VND 18 billion, a profit of VND 4 billion. 2019 was the peak period before the epidemic when it attracted 12,500 visitors, with revenue and profit reaching VND 23 billion and VND 5 billion, respectively. In the first 4 months of 2022, only the swing tour to discover the Kong sinkhole, Jungle Boss has attracted 500 guests.
In response to Shark Binh’s question about the ability to grow in scale, founder Le Luu Dung said that in the past, he often deployed simple tourism products with low prices of less than 10 million VND.
However, since launching the rope swing adventure tour product, the company has attracted a lot of tourists despite the higher price. Founder estimates that although the number of visitors does not increase much, the revenue will skyrocket to 60 billion next year and soon reach 100 billion.
Shark Hung also continue to question financial indicators. Founder Le Luu Dung said the business has a charter capital of 12 billion VND, holding 80% of the shares himself.
Founder of Jungle Boss – Le Luu Dung
As usual, Shark Lien cares about environmental protection issues. However, coming from a nature conservationist, it is not difficult for the founder to answer smoothly about conservation and sustainable development options such as: All visitors leave nothing but footprints, do not bring anything. According to nothing but photos, compost is treated with microorganisms, …
Meanwhile, as a person who is always meticulous about financial numbers, Shark Phu wondered: “Sales of 23 billion, profit of 5 billion is enough to reinvest. Your profit level is very good, so why need to call for capital? I want to see what the company’s vision is like as well as its potential. growth potential in the long run, is proportional to the amount of capital required”.
“My model can be replicated to other localities. I intend to do that. I want to settle down in Quang Binh first.” Jungle Boss founder shared.
Startup got 400 million right away even though the deal hasn’t been closed yet
Shark Phu pioneered to “close the deal” first: “He closed it like this. I feel like you answered that your interest is leaving the company. With such profitability, I don’t see any reason why you need more capital. And this field is also very different from my ecosystem, so I don’t invest.”
Shark Lien also shook his head to refuse but offered to become an insurance partner with an attractive fee.
However, the “door” has not closed for founder Le Luu Dung when there are 3 sharks offering him an offer.
Shark Hung Anh offers 20 billion for 45% shares, disbursed in 1-2 years. In other words, the valuation of Jungle Boss at that time was VND 24 billion.
Before making suggestions, Shark Hung asked questions: “You are important to keep the percentage of shares or important to raise a lot of capital.”
After the founder confirmed that he wanted to keep the percentage of shares, Shark Hung offer: “So I won’t increase the amount like Shark Hung Anh, you probably don’t need 20 billion. If you call 12 billion, I believe you only need 12 billion. I will invest for you 12 billion with a pre-money valuation of 30 billion, which means I own somewhere 28.5% of the shares“.
Shark Hung also did not forget to express his love for adventure tourism and said that he has a very deep relationship with foreign tourists, to connect for Jungle Boss.
Meanwhile, Shark Binh offered a company valuation of 36 billion. NextTech boss wants to invest 12 billion for 25% shares.
At this point, “shark” Hung Anh suddenly made a new offer: 20 billion for 30% shares. He emphasized his experience in the tourism industry as well as marketing and advertising. The valuation of Jungle Boss in this proposal is 46 billion VND.
However, the startup competition only really became intense when Shark Hung suddenly chose to launch the Golden Ticket with the first price of 100 million VND. Not inferior, right after that, Shark Hung Anh also launched the Golden Ticket move.
Golden Ticket is a tool for Sharks to gain priority in negotiating with startups. When drawn once, the minimum value of Golden Ticket is 100 million VND. Whether the deal is closed successfully or not, the startup still receives the amount recorded on this Golden Ticket. Which Shark option is preferred also belongs to the startup.
From here, Shark Hung and Shark Hung Anh had a thrilling auction when they continuously offered higher prices than the other, from 160 million VND to 210, 250 million VND. Shark Hung Anh even “threatened” if this deal was risky, he would withdraw and create a startup like them all, becoming a rival to Jungle Boss.
The scramble only ended when Shark Hung gave the number 400 million VND for Golden Ticket, causing Shark Hung Anh to accept “lose”, stopping at 310 million VND.
This means that Jungle Boss is immediately handed over 400 million VND from Shark Hung whether or not he receives the investment. After that, founder Le Luu Dung also won the right to negotiate for Shark Hung. He wants to have the “shark” invest 12 billion for 30% of the shares, along with a commitment to bring back customers.
However, Shark Hung still keeps the same ratio 25% for 12 billion VND.
At this point, founder Le Luu Dung nodded in agreement, thereby creating the first successful deal on Shark Tank Vietnam season 5, episode 1.
at Blogtuan.info – Source: Soha.vn – Read the original article here
