Do Amore Jewelry
DEAL
EPISODE SUMMARY
🕓 Air Date: March 18, 2022
Asking For:
$600,000 for 6%
Investor:
Daniel Lubetzky
Deal:
$600,000 for 15%
PRODUCT SUMMARY
Do Amore creates sustainable engagement and wedding rings that contribute to providing clean water in developing countries, allowing customers to directly impact communities in need through their purchase.
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Background Story
Krish Himmatramka, the founder of Do Amore, originates from Houston, Texas. His journey to founding Do Amore was deeply influenced by formative experiences that shaped his vision and passion for social impact. Krish’s childhood in India exposed him to the harsh realities of water scarcity, leaving a lasting impression on him. This profound encounter, witnessing the tragic consequences of contaminated water on a young boy and his family, instilled in Krish a desire to address this pressing global issue.
Subsequently, as an engineer working in the oil industry, Krish further grasped the paradox of the availability of water resources just below the surface in many areas. This realization fueled his determination to create a solution that would not only offer ethically sourced and sustainable jewelry but also directly contribute to alleviating the global water crisis.
In 2013, with a savings of $18,000, Krish took a bold step and committed himself fully to realizing his vision. His personal journey and his dedication to addressing the ethical concerns prevalent in the jewelry industry led him to establish Do Amore. Do Amore embodies Krish’s commitment to ensuring that the precious symbols of love, engagement and wedding rings, do not only carry sentimental value but also actively contribute to transforming the lives of those in need by providing access to clean water in developing communities around the world.
The Product
Do Amore offers a diverse range of engagement and wedding rings, embodying both elegance and ethical responsibility. The company’s core philosophy revolves around sustainability and social impact. Their product line includes an array of meticulously crafted rings, featuring ethically sourced diamonds, lab-created diamonds, and recycled precious metals like gold and platinum.
Customers can explore and customize their desired ring designs through Do Amore’s user-friendly website. With an emphasis on transparency, the company allows customers to trace the specific impact of their purchase by providing access to information about the exact water well their contribution has helped build. Each ring purchase contributes towards providing clean water access to communities in developing countries, fostering a sense of shared global responsibility.
The engagement rings, known for their competitive pricing and high quality, encompass a variety of designs and settings, including solitaires and other classic and contemporary styles. Do Amore’s commitment to sustainability is reflected in its use of recycled materials and lab-created diamonds, appealing to environmentally conscious consumers. The average order value stands at $3,900, offering customers an opportunity to invest in a symbol of love while actively participating in the noble cause of providing clean water to those in need. With a focus on both elegance and ethical responsibility, Do Amore’s product line represents a harmonious fusion of style and purpose.
How It Went
The company’s position before Shark Tank
Do Amore has demonstrated impressive growth and a strong commitment to its social mission, positioning itself as a leading player in the sustainable jewelry industry. The company’s robust sales performance, with $8.3 million in sales last year and a projected $11.5 million for the current year, reflects a substantial increase in consumer trust and engagement with their ethical product offerings. With a gross margin of 41%, Do Amore’s financial performance has remained solid, showcasing a healthy balance between profitability and social impact initiatives.
While the founder, Krish Himmatramka, has been the driving force behind the company’s growth, Do Amore has also garnered support from strategic partners who share their vision for sustainable and ethical business practices. These partnerships have not only contributed to the company’s expansion but have also reinforced its commitment to transparent and responsible sourcing practices. Their collaborations with reputable organizations and ethical suppliers have further enhanced their credibility and brand reputation within the industry.
In terms of funding, Do Amore has primarily relied on internal resources, with the founder’s initial investment of $18,000 serving as the company’s primary capital base. The company’s sustainable business model has allowed them to achieve substantial growth without the need for additional external funding. This self-sufficiency reflects their sound financial management and effective utilization of resources, highlighting their resilience and independence within the industry.
The Negotiations:
During the “Shark Tank” negotiations, Krish Himmatramka presented Do Amore’s compelling mission and impressive financial performance, garnering interest from several Sharks. Initially seeking $600,000 for 6% equity, Krish received an offer from Kevin O’Leary, who proposed a $600,000 investment with a royalty of $100 per transaction until he earned three times his investment. However, this offer didn’t fully align with Krish’s vision for the company’s growth and impact.
Later, Daniel Lubetzky recognized the company’s potential for social impact and offered $700,000 for 15% equity, including a generous gesture of donating the additional 3% equity back to Do Amore’s cause. Despite the compelling offer, Barbara Corcoran and Lori Greiner opted out, acknowledging the company’s unique mission but feeling it wasn’t their area of expertise. Kevin, while appreciative of the mission, found the valuation challenging and withdrew his offer.
Daniel’s thorough understanding of the company’s purpose and industry dynamics ultimately resonated with Krish, leading him to accept the deal. Daniel’s commitment to social impact and his network’s potential to amplify Do Amore’s message made him the ideal partner. Krish’s decision to partner with Daniel exemplifies his dedication to not only growing the business but also furthering the company’s mission of providing clean water access to communities in need. The negotiations highlighted the significance of finding an investor who shares the company’s values and is equipped to support its continued growth and impact.
