TDotPerformance.ca

Charith Perera & Mubin Vaid
Toronto, ON

The pitch

Charith Perera & Mubin Vaid from Toronto, ON, pitched TDotPerformance.ca in Season 10, Episode 8, asking the Dragons for $1M for 25% of the company.

Asked for$1M for 25%
Valuation$4Mimplied by the ask
OutcomeDealwith Michele Romanow
Final deal$1M for 27%valued at $3.7M

Offers in the Den

Dragon	Offer	Result
Manjit Minhas	Went out, felt the ask was too large for the company's needs	Out
Michael Wekerle	Went out, felt the valuation was too high	Out
Michele Romanow	$1 million for 30%, later revised to $1 million for 27% for herself alone	Accepted
Joe Mimran	Proposed joining Michele's offer with a forced dividend structure in years two through four	Declined
Jim Treliving	$1 million for 25%, with input on how the money is spent	Declined

Charith Perera and Mubin Vaid, co-founders of TdotPerformance.ca in Toronto, asked for $1 million for 25 per cent of their company, which sells performance auto parts and accessories online, avoiding cross-border duties and fees. Founded in 2008, the business grew from LED strip sales to an online auto parts retailer with over 200,000 products and drop-ship delivery from distributors across Canada, carrying no inventory and no debt. Sales grew from $1.5 million in 2012 to $3.5 million in 2013, a projected $6.5 million in 2014, and a projected $10.5 million in 2015, with 23 per cent gross margin and 5 per cent net margin; average customer spend was $300 with a $10 cost per acquisition.

Manjit Minhas went out, saying the ask was too large for what the business needed. Michael Wekerle went out, saying the valuation was too high. Joe Mimran proposed joining an offer with Michele Romanow that included a forced dividend in years two through four, and Jim Treliving offered $1 million for 25 per cent with input on spending; both were declined in favour of Michele Romanow's offer. Michele Romanow ultimately secured the deal alone at $1 million for 27 per cent.

Pitch details from CBC’s Dragons’ Den pitch page.