The latest episode of Shark Tank Vietnam season 7 featured a tech startup pitch that left the tech-savvy Sharks confused. The founder, who previously attempted to sell his product to CEN Group without success, has an intriguing story to tell.
Phạm Vũ Luyến, the founder of IMK, aims to provide a comprehensive digitization solution for online businesses, offering a streamlined, efficient, and synchronized web platform.
The IMK platform integrates six automated systems: a website system, a mini social network, a chat system, a marketing system, a sales system, and a combination of CRM and ERP. They also offer additional services such as comprehensive marketing, domain names, hosting, servers, email, infrastructure rental for advertising, and training in technology and online and offline marketing.
Shark Minh Beta questioned the founder: “I searched for keywords related to your industry, but your name didn’t come up.”
Luyến responded, “IMK officially launched in May 2024. We’ve been developing the company for 14 years in two ways: building the personal brand ‘Hoàng Luyến chuyên về đào tạo’ (Hoàng Luyến, the training expert), and researching and developing a marketing automation technology platform.”
It took Luyến and his team of four five years to develop the IMK solution.
In June 2024, following its launch, IMK generated a revenue of 317 million VND from seven clients, with a profit of 201 million VND, representing a 63% profit margin. Luyến further shared that IMK’s revenue target for 2024 is 9 billion VND with a minimum profit margin of 60%.
The total addressable market for digitization and comprehensive automation in Vietnam is estimated at 3-4 billion USD. IMK ambitiously aims to capture 30-35% of this market within the next five years.
The startup attributes its market dominance aspirations to the “Hoàng Luyến” brand, leaving Shark Bình perplexed: “I’m a tech shark, but I still don’t understand what you’re selling.”
When the Sharks questioned the basis for IMK’s market dominance aspirations, Luyến highlighted three key points.
Firstly, data synchronization is currently only available to large enterprises, excluding small and medium-sized businesses.
Additionally, businesses have faced numerous challenges and are in dire need of technological leverage.
Thirdly, Luyến believes that the infrastructure built over the past 14 years, combined with the data of 2,000 customers and the power of the Hoàng Luyến personal brand, can quickly capture a significant market share.
Shark Minh pressed further: “In your report, why is the 2023 revenue only 81 million VND?“
Luyến explained, “Over the past five years, I’ve mostly focused on service renewals for existing clients. That 81 million VND in revenue came from those long-term customers.”
Shark Hưng expressed skepticism: “You’re projecting a revenue of 9 billion VND for 2024? How will you achieve that?“
“We’re not running any ads at the moment. The projected revenue is based on our existing customer data. We have about 2,000 loyal customers who love the Hoàng Luyến and IMK brands…,” the founder replied.
According to our research, Hoàng Luyến’s personal page has 1,800 likes. Prior to IMK, Hoàng Luyến frequently posted about “BKASoft.” On an insurance website designed by IMK using Web Automation, Luyến introduces himself as a Prudential insurance agent.
An image and caption from an insurance website designed by IMK using Web Automation.
After thoroughly examining IMK, Shark Hưng concluded that the business model is not innovative, and the startup’s approach to offering a comprehensive automated marketing solution on the internet is rather “naive.”
“You may attribute CEN Group’s rejection to the Covid pandemic. However, in my assessment, they declined because your solution doesn’t address any pressing issues. It’s not because of Covid or a downturn in the real estate market.”
“Investing 1 billion VND in technology over five years, generating a few hundred million VND in revenue, and valuing the company at around 70 billion VND—these claims are even more far-fetched,” Shark Hưng added, ultimately declining to invest.
Shark Bình echoed similar sentiments: “I’m a tech shark, yet I still don’t understand what you’re offering me. I can’t invest in a product that I don’t fully grasp.”
Despite a rambling pitch, interruptions, a lack of tech expertise, and ongoing marketing studies, Shark Thái proposed a merger between IMK and his tech company, with each side investing an additional 10 billion VND. Phạm Vũ Luyến would hold 51% of the shares, while Shark Thái would own 49%. Surprisingly, Luyến declined this offer, concluding the funding round.
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