Image: Facebook Covo
Ha Phuoc Thanh, Co-founder & CEO of Hoa Loc Thanh Company, the enterprise behind the flood-prevention tarp brand Covo, appeared on Shark Tank Vietnam’s fourth season in 2021. He stated that automobiles in Vietnam are a valuable asset for every family. When floods or high tides occur, even with insurance coverage for the aftermath, the vehicles often operate inconsistently.
” A car that has suffered water ingress will lose one-third to two-thirds of its original value. In the future, we aim to introduce this product to the international market, especially countries severely affected by flooding ,” said Phuoc Thanh.
Recently, this deal was reshared by the Shark Tank Vietnam fanpage, amidst the aftermath of Storm No. 3, which left the Northern provinces, including Hanoi, submerged. Numerous car owners are awaiting insurance companies’ approval for compensation. Dealerships in the North are overwhelmed with cars in need of repair. Some insurance companies have disclosed payouts of thousands of billions of VND in property and automobile insurance.
Phuoc Thanh’s idea was conceived during his time living in the United States. This Vietnamese-American co-founder has friends who own supercars. However, when floods struck, they had nothing to safeguard their precious possessions. With the Covo tarp, when wrapped around a car, the vehicle’s frame combines with the tarp to form a boat. The bag floats as the water rises, ensuring that the car is never submerged beyond the halfway point.
Ha Phuoc Thanh, Co-founder & CEO of Hoa Loc Thanh Company, the enterprise behind the Covo brand.
The product comes in three sizes: size S priced at VND 4.2 million, size M at VND 4.5 million, and size L at VND 5.3 million. These three sizes ensure a fit for all vehicle types on the market. In terms of load-bearing capacity, the tarp can even float a Mitsubishi Triton – a pickup truck weighing up to 1,800 kg.
Phuoc Thanh assures that the material used is the “lightest and most durable on the market,” with a unique product not previously available in Vietnam, and they are in the process of registering for a patent. However, at the time of their Shark Tank appearance, only nine Covo tarps had been sold. This was because the product was only finalized in November 2020, marking the end of the flood season, so the company halted advertising and focused on optimizing the product.
In front of the Sharks, Phuoc Thanh sought VND 1 billion in exchange for a 10% stake in the company. Shark Do Lien, an investor with a background in insurance, made the first offer of VND 1 billion for a 45% stake.
Shark Nguyen Xuan Phu quickly joined the competition for Covo, offering VND 1 billion for a 25% stake, acknowledging the product’s value and the company’s reasonable valuation.
Shark Nguyen Thanh Viet appreciated Phuoc Thanh’s idea but realized he lacked the strengths to assist Covo and thus withdrew. Nonetheless, he commented, “I admire your creativity in coming up with ideas that even the Sharks here might not think of. In 5-10 years, you could very well be sitting in a Shark’s seat here.”
Shark Pham Thanh Hung then proposed VND 1 billion for a 10% stake, with an additional condition of a royalty fee of VND 500,000 per product for the first 10,000 products.
Shark Nguyen Hoa Binh made a bold offer of VND 1 billion for 0% stake, but with a royalty fee of VND 500,000 per product until the investment is recouped and a profit of VND 5 billion is achieved. Afterward, a royalty fee of VND 250,000 per product would be applied. He even pledged to be Covo’s lifelong capital partner and offered to swipe his card to deposit 10% of the capital for the startup immediately.
After intense negotiations among the Sharks, Phuoc Thanh decided to accept Shark Hung’s deal. Subsequently, Shark Hung invited Shark Lien to join forces to support Covo’s future development.
To date, there has been no update on the actual investment in Ha Phuoc Thanh’s startup. However, on Covo’s Facebook fanpage in October 2022, the startup announced that they had officially established dealerships in Japan and Australia.
On September 12, a post on Covo’s page revealed that they are currently overwhelmed with orders. The startup expressed its desire to contribute and assist people amidst the devastating natural disasters.
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