Shark Tank India Insights | What Happens After a Shark Tank India Deal is Sealed

Touted as the premier entrepreneurial platform, "Shark Tank India" premiered on December 20, 2021. It is modeled after the American series in which the judges are the successful entrepreneurs-global or Indian-in the end judging the business idea pitches put forward by people wanting to acquire funds for their business. The first season ended on February 11, 2022. It introduced 198 firms, of which 67 secured deals worth almost INR 42 crores in investment. It also brought financial backing along with mentoring, thus proving critical to India's nurturing startup ecosystem, and empowering entrepreneurs with the resources and guidance of industry experts. 

Over the seasons, it had showcased those from technology, healthcare, or consumer goods that this country could have considered an entrepreneurial space with the ever-living changing dynamic of the spirit. Indeed it has brought in new investors with new ideas in business to spark innovation beyond just growing the dialogue about startups. Its growth therefore would reflect the kind of commitment that sustaining India as an entrepreneurial nation brings-a conference not just for business development, but innovation as well across the entire economic landscape of the nation. Shark Tank benefits both investors (the “sharks”) and entrepreneurs.

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Benefits for Investors (Sharks)

• Immersed in Diversified Investment Opportunities: Such access to a greater, wider array of business ideas and sectors creates investment opportunities that the investor might not have experienced before. This would therefore result in profitable investments.
• Further Brand Visibility: Being an investor on the show will add greatly to one's public profile and personal brand. Resulting in more visibility, speaking, and networking opportunities. To understand the relevance of a shark on the show, many did not come to know who Anupam Mittal (Shaadi.com), Aman Gupta (Boat), and Ashneer Grover were (BharatPe) before Shark Tank India. But now these successful businessmen are all over the talk shows and podcasts and, through Youtube shorts or Instagram reels, all liberalized in stretching out of the carpets.
• Innovative Ideas at Exposure: Innovators producing something new or fresh ideas attract the eye of such investors who often find it interesting to invest in those fresh ideas, rather than procuring it directly into their present industry lines to excel. Many times, one shark offers to invest even when all other sharks call it off.
• Expertise and Mentorship: By investing in entrepreneurs, sharks can offer their expertise and guidance, helping these businesses grow and succeed. This mentorship role can be personally fulfilling and financially rewarding.

Benefits for Entrepreneurs

• Access to Capital: The enterprising section requires monetary investments from patronizers as startup costs for their ventures. “Shark Tank” extends the option of getting investment capital from the sharks.
• Visibility and Marketing: The show serves as a platform for exposing small entrepreneurs to a wide audience which could result in more sales, recognition of their brands, and marketing opportunities.
• Expertise and Mentorship: Besides the investment, it can help entrepreneurs with business acumen and industry knowledge of the sharks. The mentorship can guide these entrepreneurs to make better decisions and navigate challenges, which would be the reason pitch contestants would sometimes settle for a lower valuation of a shark because it is not just dealing with an investment but also through shark expertise.
• Validation: Gaining funding from one or several of the sharks becomes proof of a business idea worth developing for the entrepreneur, as it draws other interests from potential future investors or partners.
• Negotiation Practice: Negotiating on the program would seem to be an honest learning experience for entrepreneurs who have so much to gain in their future business deals from sharpening the ability of their negotiation skills.

Shark Tank Season 1

During the first season of Shark Tank India (20 December 2021 - 11 February 2022), as many as 198 business pitches were made. Of these, 67 were able to get investors out of 198 different startups; out of which, 28 deals were finalized, showing a closure rate of 41.5%. The amount of equity pooled through finalized deals hovers around INR 42 crores.

The best investor was Namita Thapar, with claims to about INR 7 crores. Ashneer Grover weighed in next to him, with about INR 2.95 crore across 11 completed deals. "Show reality set in," for several entrepreneurs, he added. The due diligence typically lasts from three to nine months: No wonder, many startups back out to get higher-value valuations, and many dissatisfactions appear to make some deals invalid. According to reports, six startups have secured better funding during the period elsewhere at higher valuations.

Shark Tank India may be a strong catalyst in terms of visibility, initial capital commitment, and mentorship by investors, but it will hinge heavily on the fine print of due diligence and shifting market conditions before any real closing occurs; it will underscore the complexity of fulfilling those commitments into fruitful investments.

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Shark Tank Season 2

The completion ratio is phenomenal at 96% between January 2, 2023, to March 13, 2023, with 103 commitments for deals and 99 deals getting finalized on Shark Tank India, Season 2. After signing on the show, a process is structured to solicit funding followed by a due-diligence phase where the claims by the entrepreneur are verified against such exhaustive business records, financial, legal, and operational. This phase is one of internal scrutiny and usually lasts between three and nine months, but breaks may occur within that time depending upon how the circumstances grow and change. Everything will be included from changes in stock ownership or royalties required to possibly adding it into a purely equity-financed deal.

Thereafter formal contracts are executed which state the rights as well as obligations of both Parties. Generally advises an entrepreneur to consult an expert for scaling his business in place of closing the deal, but this is not general. The closure ratio was extremely high as Season 2 managed to record a closing ratio of 96% as against the measly 41.5% of the first season. Such impact is a global reality, not only to entrepreneurs and sharks but rather to the post-deal progression in making this credible investment-type reality show.

Shark Tank Season 3

The Indian TV hub had a lot of drama from January 22, 2024, to March 31, 2024, spread over 52 episodes, thus making it an incredible third season for Shark Tank India with some amazing sharks - 12 in number. This was primarily reliant on the deal-making and post-deal process hence creating the investment outcomes. Typically, right after the handshake on-air by an entrepreneur and investor, thorough due diligence was done, verifying claims made during the pitch presentation while also ensuring that the business was viable. This period lasts anywhere between a month to well above a year, depending on the readiness of the startup to raise funds for their business, according to Anupam Mittal. For most investors, WhatsApp group chats are made and then paths are smoothed to feel comfortable with entrepreneurs.

Not all deals go ahead, but they are all very hard to make up the commitments. At this point of closing the deal most of the time either one or the other founder pops out of the picture and makes all the up-and-down moves just to source better options," Investor's content on the line. "Almost 50 percent of the deals land failing because of these reasons," explains Anupam Mittal, further development to Investment Structures and other varieties would be showcased during Season 3 of which pure equity accounted for 54.3 percent out of total investments, while the rest included some kind of an equity-debt or royalty component. Many deals are still going strong in negotiation; however, much was clear this season about the factors compounding the complexities of post-show investments because of both parties' transparency and readiness required for that.

Conclusion

Shark Tank India has continued to complicate and augment the post-deal process for the last three seasons. While the first season prepared viewers for an understanding of investment relationships from start to finish of the season, the next seasons would sophisticate the same bringing in alcohol elimination and clear-cut understanding of investors and entrepreneurs. Closure and post-deal operations may improve, but the post-deal limbo for entrepreneurs still exists as they are deterred from turning to outside offers and busyness baselines. In a nutshell, Shark Tank India will continue to be an important platform for the promotion of entrepreneurship vis-à-vis realities in the race for investments.

FAQs

What is Shark Tank India?

Shark Tank India is an Indian business reality television series based on the popular global format Shark Tank. It has budding entrepreneurs pitching their business ideas to a panel of potential investors called 'Sharks' to secure investment deals.

Who are the sharks in Shark Tank India?

Vineeta Singh, Peeyush Bansal, Namita Thapar, Anupam Mittal, Amit Jain, Deepinder Goyal, Varun Dua, Radhika Gupta, Ronnie Screwvala, Azhar Iquabal, Ritesh Agarwal, and Aman Gupta are the sharks in Shark Tank India. Season four of the show will feature two new sharks, Kunal Bahl and Viraj Bahl.

How Shark Tank India works?

Shark Tank India features entrepreneurs pitching their business ideas to a panel of investors (sharks) who decide whether to invest in exchange for equity.