BollyX is a company from Boston, MA, that is bringing the dancing and joy of Bollywood to the fitness industry through a new set of high intensity workouts based on Bollywood dance moves.
The BollyX classes are currently held over five hundred times a week at three hundred and fifty locations. They are taught by independent instructors who have been trained and are licensed to use the BollyX program for $20 a month. Currently, BollyX has 1,100 licensed instructors and the company brings in $20,000 a month through these fees on which the entrepreneur claims an 86% margin.
In addition, BollyX has launched its own online platform where people can subscribe to watch BollyX content including workout videos and other types of instruction. The company currently has 300 paying subscribers for this platform paying $9 a month.
The company was founded five years ago and has $1,000,000 in revenue over the course of its lifetime though the entrepreneur states that most of that has come in the previous three years.
Unfortunately, while the company earned $315,000 in revenue in the previous year, it lost $600,000 as the entrepreneur used previously raised investment money to build out the BollyX platform and create content for it. This investment money was raised in a friends and family round for $1,700,000. Because of this fundraising, the entrepreneur only has a 25% stake in the business.
When questioned about the financial health of this business, the entrepreneur stated that of the initial investment amount, only $75,000 remains in the bank.
Though all the sharks enjoyed the workouts and testified positively as to their intensity, they were not so impressed by the financial health of the business. In particular Mark called out the prior year's loss when building the online platform stating that online video platforms are the kind of thing a business can buy or license as a turnkey solution and wouldn't need to build themselves. Even Rohan, who appeared as a guest shark in the episode and was initially enthusiastic about supporting an entrepreneur of Indian heritage bowed out because of the state of the company and the past decisions.
Unfortunately, the entrepreneur left the tank without an investment.