Revolutionizing the Beauty Industry with Yes Madam: An On-Demand Home Salon Experience

Table of Contents

• Introduction to Yes Madam
• The Yes Madam Business Model
• Services Offered by Yes Madam
• Pricing and Transparency in Yes Madam
• The Success Story of Yes Madam
• Future Plans and Vision for Yes Madam
• Conclusion

Introduction to Yes Madam - India's Most Trusted and Transparent Home Salon

In today's hectic lifestyle, finding time to visit a salon has become nearly impossible. Additionally, dealing with untrained service professionals who use duplicate products that can damage your skin, or visiting expensive salons that make you feel like they are cutting your hair with golden scissors, can be frustrating experiences. Our startup, Yes Madam, solves all these problems.

Yes Madam is a tech-enabled platform where users can book all beauty and spa services, such as waxing, manicure, pedicure, facials, and spa treatments, at their convenience, date, and time. All our professionals are trained and verified, and all the products and disposables used in the services come in single-use packaging to ensure the utmost attention to our customers' skin and hygiene.

The Founders and Their Backgrounds

We are Arpit, Akanksha, Mayank, and Aditya, the dynamic founders of Yes Madam, and we have come here from the heart of Delhi to pitch our business to you. Mayank, from Amroha, UP, shares his journey. After serving in the merchant navy for 9 years, he started his business in plastic manufacturing in Africa. However, an armed robbery attack and the Ebola outbreak forced him to shut down his businesses, leaving him with substantial losses and loans. That's when he reached out to his younger brother, Aditya, for support. Aditya, also from Amroha, shares that he was inspired by his father's business ventures from a young age. When his wife faced skin rashes after a home beauty service using refilled or duplicate products, they realized the need to start a service that prioritizes skin care and hygiene. That's when they launched Yes Madam in 2017. Akanksha, from Muradabad, pursued her law degree in Noida. She met Mayank and Aditya through family connections and was drawn to their vision. Arpit, an IIT Kharagpur graduate and Aditya's school senior, completes the founders' quartet, taking care of product and technology aspects.

The Problem Addressed by Yes Madam

The beauty salon industry in India is worth Rs. 1,00,000 crore, but even major players like Urban Company have barely scratched the surface. Yes Madam aims to solve pricing and product quality problems that the industry faces. While Urban Company focused on convenience, Yes Madam solves a different problem by ensuring pricing transparency and high-quality products.

The Yes Madam Business Model

Yes Madam operates on a unique business model that focuses on empowering its network of over 2,500 female partners. Previously earning between Rs. 10,000 to Rs. 12,000 per month, these partners can now earn between Rs. 40,000 to Rs. 50,000 by associating with Yes Madam.

The company has a policy of not deactivating or blocking partners but instead focuses on motivating and training them to grow their businesses. The top 500 rated partners are designated as 'Gold Partners,' enjoying lower commission rates, medical insurance facilities, family lunches, and awards.

Services Offered by Yes Madam

Yes Madam offers a wide range of beauty and spa services, including waxing, manicure, pedicure, facials, and spa treatments. The company operates in 45 cities, catering to over 70,000 bookings per month.

One of the unique selling points of Yes Madam's platform is the transparency in pricing. For example, if a customer wants to get waxing done, which is their highest-selling service, the cost would be Rs. 799. This is further divided into a service charge of Rs. 390 and a product cost of Rs. 409. Customers can choose from three product options, ranging from providing their own products, in which case they only pay the service charge of Rs. 390, to selecting from Yes Madam's range of proprietary white-labeled products.

Pricing and Transparency in Yes Madam

Yes Madam takes a commission of 20% from regular partners and 15% from Gold Partners on their earnings. The company focuses on providing the best possible experience to its partners, understanding that these small gestures matter a lot to them.

While Urban Company has raised over Rs. 1,000 crore in funding and can afford to invest heavily in branding, Yes Madam has limited resources for marketing. However, the company's focus is on creating a brand awareness and establishing Yes Madam as a household name in the industry.

The Success Story of Yes Madam

Yes Madam has achieved impressive growth and profitability in a short span of time. In the financial year 2021, the company recorded a revenue of Rs. 12-13 crore, which grew to Rs. 26 crore in 2022 and Rs. 32 crore in the last financial year (2023). The current financial year is expected to close at Rs. 50 crore in revenue.

The company's EBITDA for the last month was Rs. 95 lakh, and the EBITDA for the last six months stands at Rs. 1 crore. The revenue for the last month was Rs. 4 crore, with a repeat customer rate of 80%.

Future Plans and Vision for Yes Madam

The founders have ambitious plans for Yes Madam's growth and expansion. Within the next five years, they aim to achieve a revenue run rate of Rs. 500 crore by expanding to 20 cities. The company also plans to push its white-labeled product range into the market and cater to additional services, such as hair-related problems, to address more pain points in the salon industry.

The vision is to make Yes Madam the biggest salon tech company in India, with both an at-home and offline presence, to solve all the industry's problems and improve the lives of millions of working professionals in the sector.

Conclusion

Despite the challenges and risks, the founders of Yes Madam are committed to building a legacy and taking the company to new heights. They have turned down acquisition offers and strategic investments due to unfavorable valuations, believing that the right valuation will come their way.

With their strong belief in the business, impressive growth numbers, and a clear vision for the future, Yes Madam is poised to become a game-changer in the Indian beauty and salon industry.

FAQ

Q: What inspired the founders to start Yes Madam?
A: The founders were motivated by their experiences with poor service quality, duplicate products, and lack of transparency in the beauty industry.

Q: What is the unique selling proposition of Yes Madam?
A: Yes Madam offers a transparent, tech-enabled platform for on-demand beauty and spa services at home, using verified professionals and disposable, single-use products.

Q: How does Yes Madam ensure service quality?
A: Yes Madam trains and verifies all its professionals and uses single-use, disposable products to ensure customer safety and hygiene.

Q: What is the pricing model of Yes Madam?
A: Yes Madam separates the product cost and service charge for transparency. Customers have the option to provide their own products and pay only the service charge.

Q: How does Yes Madam empower its professionals?
A: Yes Madam offers incentives, training, medical insurance, and family perks to its top-performing professionals, enabling them to earn significantly higher incomes.

Q: What is the revenue scale of Yes Madam?
A: Yes Madam has achieved a revenue run rate of Rs. 50 crores, with a y-o-y growth of 33% in the last financial year.

Q: How does Yes Madam plan to scale its business?
A: Yes Madam plans to expand its services, push its white-labeled product range, and address other problems in the salon industry to achieve a revenue run rate of Rs. 500 crores in 5 years.

Q: What is the current funding status of Yes Madam?
A: Yes Madam has not raised any funding yet and has rejected a term sheet offering a valuation of Rs. 150 crores.

Q: What is the valuation expectation of Yes Madam from investors?
A: Yes Madam is seeking an investment of Rs. 15 crores for 2% equity and 2% royalty on net revenue until the investment is returned.

Q: What is the long-term vision for Yes Madam?
A: The founders aim to create a legacy by building Yes Madam into India's largest salon-tech company, addressing both at-home and offline needs in the industry.