“My childhood memories are filled with beatings, robberies, and even close encounters with abuse. There were indeed countless dangers for street children like us,” shared Nguyễn Văn Phúc, Founder & CEO of Bệnh Viện Đồ Da, as he began his pitch on the second episode of Shark Tank Vietnam’s seventh season.
Phúc was born into a farming family; his father was a war invalid who passed away when he was 11 years old. His four sisters had to drop out of school, and Phúc himself took up shoe shining to earn money for his school fees. This job supported him through high school and helped him get into university. However, even during his studies and later employment, he continued to shine shoes.
In 2018, Phúc noticed the untapped potential of the leather care market in Vietnam and learned about the processes followed in other countries. Together with another shoe shiner named Chiến, they borrowed 100 million VND and established Bệnh Viện Đồ Da. They then welcomed socially vulnerable individuals and street laborers to work with them.
“People are taught techniques to restore leather, luxury goods, and sofa upholstery… After more than five years, the enterprise has helped nearly 50 individuals escape their dark pasts, including victims of child marriage and human trafficking… They now have stable jobs with monthly salaries ranging from 9 to 15 million VND,” shared Phúc.
Phúc approached Shark Tank seeking 500 million VND in investment for an 8% stake in the company. He planned to use this investment to open a new branch of Bệnh Viện Đồ Da in Ho Chi Minh City, enabling them to help more disadvantaged individuals, especially in the Central Highlands, an area vulnerable to youth exploitation.
The CEO of Bệnh Viện Đồ Da explained that employees undergo training for 6-9 months to master the required skills. After committing to the enterprise, these individuals can receive further support in terms of capital and techniques to venture out on their own. They are expected to continue supporting other vulnerable people, creating a community.
“Vietnam’s climate causes leather to crack and split easily. We can fully restore these items to their original state without replacement, and we plan to produce leather care products ‘Made in Vietnam,’ matching the quality of English, French, and German products. This will help us become more autonomous and reduce costs,” Phúc presented to the Sharks.
According to Phúc’s plan, the Ho Chi Minh City branch of Bệnh Viện Đồ Da required a total investment of 700 million VND. This included 200 m2 for production, costing around 30-40 million VND, plus accommodation for the staff, requiring an additional 15-20 million VND. Machinery and technical equipment would account for over 200 to nearly 300 million VND. He anticipated that this branch would break even within two years.
Nguyễn Văn Phúc, Founder & CEO of Bệnh Viện Đồ Da.
Shark Phạm Thanh Hưng, Chairman of the Investment Board at Columbus Startup Venture Capital Partners, shared that his fund always allocates a certain percentage for investing in startups that bring social and community value. Therefore, this “shark” agreed to Phúc’s proposal without further negotiation or dividend claims. However, he requested control over the investment’s effectiveness.
Shark Nguyễn Phi Vân also agreed to the proposed terms and offered to guide two models suitable for Bệnh Viện Đồ Da: micro-franchising for social organizations and job franchising for employees. Her condition was that Bệnh Viện Đồ Da should be a social enterprise rather than a commercial one, and she would not take any profits.
Shark Nguyễn Văn Thái made a similar investment offer, hoping for a three-year payback period.
Shark Nguyễn Hòa Bình was the only one to refuse, stating that he would invest in later rounds when the enterprise has discovered its sweet spot and needs more capital to scale the model.
Shark Bùi Quang Minh accepted the terms proposed by the CEO of Bệnh Viện Đồ Da and offered an additional 500 million VND through a golden ticket, matching the investment amount requested. The owner of Bệnh Viện Đồ Da accepted the golden ticket and agreed to partner with Shark Minh.
However, Shark Hưng believed that “kindness should not be monopolized” and suggested that all four Sharks invest together.
In the end, Nguyễn Văn Phúc agreed to accept the investment from all four Sharks, receiving 500 million VND for an 8% stake in the company, as per his initial proposal.
