Bohana – Popped Water Lily Seeds
DEAL
EPISODE SUMMARY
🕓 Air Date: March 20, 2020
Asking For:
$200,000 for 10%
Investor:
Kevin O'Leary
Deal:
$200,000 for 8%
PRODUCT SUMMARY
Bohana offers a unique and nutritious snack made from popped water lily seeds, native to the north of India, providing a healthier alternative to traditional popcorn.
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Background Story
Nadine Habayeb, based in Boston, co-founded Bohana with Priyal, who grew up in India where water lily seeds have been a traditional snack for centuries. Introduced to these seeds, Nadine bid farewell to popcorn and embraced the idea of creating a healthier snack option.
The giant water lily variety native to North India produces seeds that, when roasted, pop similarly to popcorn but boast 50% more protein, fewer calories, and less fat. Priyal, unfortunately, absent from the pitch due to an impending birth, played a crucial role in bringing the traditional Indian snack to the U.S. market.
The Product
Bohana’s snack is made from popped water lily seeds, offering a unique and flavorful alternative to popcorn. The product comes in various flavors, including Himalayan pink salt, white cheddar, and Soulful Spice. Popped water lily seeds are known for their natural smokiness, containing all nine essential amino acids, a rarity among plant-based foods.
With 50% more protein and fewer calories and fat compared to popcorn, Bohana positions itself as a healthier snack option. The snack’s airy and crunchy texture, along with its similarity to popcorn, makes it appealing to a broad audience. While priced higher than traditional popcorn, Bohana positions itself in the better-for-you, alternative-ingredient snacks category.
How It Went
The company’s position before Shark Tank
Bohana, launched in April 2018, sought $200,000 for 10%, implying a $2 million valuation. In its first full year, the company generated $123,000 in revenue over 16 months, with nine months in retail. The initial phase involved market testing online through Amazon and the company’s website. Nadine, with a background in marketing and experience working for Yves Saint Laurent in Dubai, highlighted the challenge of pioneering water lily seeds in the U.S. snack market.
Despite the unique taste requiring an educational process for consumers, in-store demos consistently resulted in sold-out inventory. Bohana positioned itself alongside better-for-you snacks rather than traditional processed snacks. Barbara offered $200,000 for 30%, citing a $2 million valuation. Kevin, recognizing the company’s need for capital, offered $200,000 as a loan for 8% equity, a more favorable deal. The negotiation involved Kevin and Barbara competing for the deal, with Kevin ultimately securing it at a lower equity stake.
The Negotiations:
The negotiations unfolded with Barbara making the first offer of $200,000 for 30%, which Kevin deemed greedy. Barbara stood firm on her offer, prompting Kevin to counter with a loan offer of $200,000 for 8% equity. Barbara criticized the loan aspect, emphasizing the value of partnership over a loan. Marking a departure from traditional negotiations, Kevin’s loan offer included a lower equity stake and a three-year term with a 9% interest rate.
Despite Barbara’s attempt to sway the entrepreneur against Kevin, Nadine chose Kevin’s offer, citing the importance of valuing equity and the need for capital. The negotiations showcased the Sharks’ contrasting approaches, with Kevin securing the deal by providing a more favorable financial arrangement.
