Shark Tank India Funds Startup Bringing MSMEs to Metaverse
Startup secured funds to bring MSMEs into the metaverse on Shark Tank India
10 February 2023
Cloudworx, an AI company founded in 2020, allows clients to build 3D models without coding knowledge, according to its founder on Shark Tank India.
Employees can access the company store's digital twin by simply scanning a code, eliminating the need for a web browser.
Namita Thapar and Anupam Mittal made a deal for 40 lakhs with 3.2% equity at a valuation of ₹12.18 crore.
Cloudworx, an Indian AI startup that allows users to build 3D models without prior coding knowledge, received ₹40 lakh investment on Shark Tank India season 2. Their innovation has already been patented in 2019. The startup eliminates the need for coding knowledge to make 3D models work.
Gartner's survey showed that 75% of businesses want to adopt digital twins (3D models), but only 13% have implemented it. The other 62% plan to, but face challenges or lack the necessary skills, according to Cloudworx.
“Without going to your own factory, you can monitor which machine of your factory is utilising more energy. This is through a technology called heat mapping, i.e monitoring the temperature of the object. Even employees can be monitored through their body temperature stamps and the boss can know which area has the most amount of employees huddled together,” said Yuvraj Tomar, Cloudworx founder, who also featured in inaugural Forbes Asia 30 under 30 list in 2016.
There is no need for a web browser as any employee can scan a code and access the digital 3D model of the company store,” Tomar added.
On Shark Tank India, the founder claimed their app connects devices, network, software, people, and processes, imports 3D models for customization, and enables 3D workflows without coding. The company, founded in 2020, aims to make the metaverse accessible and user-friendly. It reported ₹1.5 crore in annual sales since 2020 but no profit. On why the company's sales were low, Cloudworx founder said, “Sales were low because we made the mistake of only concentrating on the India market initially where usage is still picking up. When we expanded to other countries, we started gaining clients. European clients are especially easily convertible,” Tomar claimed.
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Namita sees a potential use for the service
Shark Namita Thapar, who oversees 14 Emcure Pharmaceuticals factories, was intrigued by the startup after the founder demonstrated how it would benefit her through a demo.
“You manage 14 factories and often would need to be physically present for monitoring their output. With the use of this technology, you won’t need to be dependent on charts, dashboards, graphs to make decisions. You can monitor your factories from anywhere. One click from the software can physically switch on or shut down any functions in the factory,” he claimed.
In response to Thapar's call to "shake the world of MSMEs", a final deal was reached with Emcure's executive director and Anupam Mittal for ₹40 lakhs and 3.2% equity, valued at ₹12.18 crore. The startup, which raised ₹71 lakhs in a seed round at a ₹8 crore valuation in May 2020, sealed the deal.
Rest of the sharks opt out
Anupam Mittal of Shaadi.com wondered how the founder would compete with tech giants and establish a global presence. The founder, Tomar, stated that he's not targeting Fortune 500 companies, but rather SMEs and MSMEs who can't afford tech giants like Microsoft and Nvidia. He believes that his platform, offering the same features at a fraction of the cost, will attract clients. However, Amit Jain of CarDekho and Vineeta Singh, CEO of Sugar Cosmetics, declined the deal, citing lack of innovation and similar products already available in the market.
Aman Gupta, co-founder of boAt, denied funding to the startup and suggested focusing more on the vast opportunities of the consumer metaverse.