‘We’re 30% Cheaper’: This Startup Lets You Design and Print Your Own T-Shirts, with Same-Day Delivery that Had Shark Binh and Shark Minh Fighting to Invest

In the 5th episode of Shark Tank Vietnam’s 7th season, Phan Huy Hung, Co-founder of Ranus, introduces their startup’s website, Ranus.vn. Ranus allows users to design with any image and place orders, with the promise of same-day production and delivery.

To convince the Sharks to invest 2 billion VND for a 2% stake, Huy Hung highlights Ranus’ unique selling points compared to its competitors.

The first advantage lies in its technology. Ranus has the capability to write firmware and apply it to machinery for automated production, enabling unlimited scale-up potential. Additionally, their quick delivery service, with orders delivered on the same day they are placed, sets them apart.

The co-founder shares that the startup has spent 4 years developing their technology, addressing website, sales, and order management, as well as production processes.

“I aim to develop this platform for B2C sales. This means that users can directly design and purchase products. I’ve created this feature so that even those with no design knowledge can easily create products that reflect their unique style,” says Huy Hung.

Over the 4-year development period, the Ranus team invested a total of 12 billion VND in cash. Starting in June this year, they opened for business and had already achieved a revenue of 200 million VND by the time they appeared on Shark Tank.

For the last six months of 2024, they project a total revenue of 3 billion VND and a profit of approximately 400 million VND. The expected gross profit margin is 35%, with a net profit margin of about 12-15%. Huy Hung adds that with a monthly revenue of around 500 million VND, Ranus can break even and turn a positive cash flow in the next two months. Furthermore, they anticipate a revenue of 9 billion VND for 2025, tripling their 2024 performance.

By 2025, Ranus plans to expand its website to target the US market. The startup intends to continue production in Vietnam and ship to the US within 5 days. However, Shark Binh evaluates that this model might be more competitive in the Vietnamese market and may lack a strong localization advantage abroad.

Addressing queries about product pricing, the co-founder explains, “Since we position ourselves as a production workshop, we will sell at lower prices. Our strategy is to be 30% cheaper than the cheapest option in the market,” and assures that they are not engaging in dumping, as they are still making a profit.

After the pitch, Shark Thai, Shark Nga, and Shark Hung opt out of investing.

Based on the startup’s financial performance, Shark Binh offers to invest 6 billion VND for a 20% stake, valuing the company at 24 billion VND pre-money and 30 billion VND post-money.

Shark Minh, recognizing the synergy between Ranus’ target audience and Beta Cinemas’ young customer base, proposes an in-kind investment. He offers to exchange various benefits, such as free rental space and access to Beta Group’s marketing tools, valued at 6 billion VND, for a 20% stake.

During the negotiation, Huy Hung expresses that the pre-money valuation of 24 billion VND is lower than the startup’s expectations. He also shares that their funding goal for this round is to give away no more than 5% of the company.

Holding the belief that one should be friends before investing a large sum, the co-founder hopes for a post-money valuation of 40 billion VND. Accordingly, he proposes that the Sharks invest 2 billion VND for a 5% stake.

Shark Minh Beta agrees to invest 2 billion VND in-kind for a 5% stake, offering support in the form of rental space, personnel, and marketing. Shark Binh also expresses his willingness to invest, offering 1 billion VND in cash for a 5% stake, with the remaining investment in in-kind contributions.

With the goal of giving away only 5% in this funding round, Huy Hung realizes that Ranus can only close the deal with one investor. Ultimately, he accepts Shark Minh’s offer of 2 billion VND in-kind investment for a 5% stake.