Even after having a 40-year legacy in jaggery production and daily shipments of around 30k-40k kilos of jaggery per day, the Shinde family was not using jaggery themselves because it requires a lot of effort in crushing large pieces into consumable sizes.
As we all know, not every generation is as available to put in the effort as our grandparents and people before them were. 🤷♀️! In the words of Preeti Shinde, “Jaggery was difficult to use. Using it meant spending hours breaking huge blocks into smaller pieces or manually powdering it.”
Then what, generation by generation, its value eventually is degrading.
We all know that feeling, but when cousins Sayali Babasahib Shinde and Preeti Prabhakar Shinde decided to transform people’s sweetener consumption, they started from THEIR home.
With the idea of their startup since December 2019, Gudworld was finally launched in April 2021.
Mission: To elevate jaggery as a natural, healthier alternative to refined sugar.
Founded by cousins Sayali Shinde and Preeti Shinde, Gudworld aims to provide consumers with a healthier alternative to refined sugar through convenient and flavored jaggery cubes.
WHY?
Little do we know that, unlike processed sugars, jaggery is rich in nutrients and is packed with minerals. This makes it an ideal choice for health-minded consumers.
What makes them different?
Well, their bite-sized jaggery cubes make them stand out. These cubes are available in 12 infused flavors like coffee, turmeric, and ginger.
Steady Nah! Rapid Growth!
Gudworld’s financial growth is enough to showcase its growth in the retail market.
In FY23-24: Revenue generated Rs 1.48 crore annually.
Monthly Revenues:
- August 2024 – Rs 37 lakhs
- September 2024 – Rs 48 lakhs
- October 2024 – Rs 69 lakhs
By far, in September, the company already crossed Rs 2.2 crore in revenue for FY24-25.
Next target: Rs 6-7 crore the year-end revenue.
Secret to Success: Competitive Price & Retail Strategy
Price Strategy
Gudworld’s bestselling product—the 5 grams jaggery cube—is priced at just Rs 89. The company keeps a gross margin of 75%, and the key expenses include:
- Raw materials: 15%
- Logistics and packaging: 5%
- Employee benefits: 18%
- Shipping: 6%
- Marketing: 4.8%
This way, the company achieved an Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin of 14.2%. 💥
Retail Strategy
Effectively, the company combines both online and offline channels to maximize accessibility and reach. It uses various platforms like e-commerce, general trading, and modern trading, along with taking up other export opportunities.
Moreover, Gudworld has a USA FDA-certified manufacturing facility specializing in stainless steel, thus guaranteeing top-quality products.
Gudworld’s revenue from offline sales accounts for 45% because its products are widely available in 2,800 stores across 7 Indian states. The brand collaborates with retail stores, providing credit to store owners as an incentive to stock its products.
The E-commerce market makes up around 15% of Gudworld’s revenue. The company uses its website and platforms to attract health-conscious consumers.
From exports, the company generates 20% of its revenue, meeting global demands for organic and natural sweeteners.
Kuch Meeta ho jae Sharks 🦈
In Shark Tank India Season 4, Sayali and Preeti presented Gudworld seeking an investment of Rs 50 lakhs in exchange for a 2% equity stake, valuing the company at Rs 25 crores.
With their pitch they highlighted the increasing demand for healthier sweeteners and showcased Gudworld’s innovative approach to packaging and marketing jaggery.
Impressed, Aman Gupta (co-founder of boAt), recognized the potential and invested Rs 50 lakhs for 5% equity.
After Shark Tank’s appearance, Gudworld is aiming to expand its footprint. With its target of achieving 1 crore customers within the next 5 years by increasing product availability across more retail outlets and improving its online presence. Moreover, to launch jaggery-based products in commercial kitchens, the company is entering into partnerships with hotels, restaurants, and cafes.
Stack up your batch of gud @Gudworld
Follow their journey @Gudworld
