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Beef with Aman Gupta to his investment strategy, Shark Tank India 3’s Amit Jain answers it all in AMA session
In an Ask Me Anything session on Reddit, Shark Tank India 3 Shark Amit Jain addressed some important questions of users about entrepreneurship, investments, and fellow Sharks.
Amit Jain, the co-founder and CEO of CarDekho, made his debut on Shark Tank India in the second season, replacing Ashneer Grover. He quickly carved his own fan following and became a favorite for his positive attitude. He recently engaged in a Reddit AMA (Ask Me Anything) session with netizens to answer their questions.
While he was there to spill the tea on all things entrepreneurship, the entrepreneur readily answered some interesting questions about the show and his fellow Sharks. Here are a few interesting questions that the Shark addressed.
Amit Jain's philosophy - Pehle Banda, Pir Dhanda
A Redditor asked the Shark if a brand with a defect in the logo could put him off from investment. The question was, "Amit, do you care if the logo has a slight error and will that be a reason for you to not invest?" To this, Amit Jain replied, "Like I always say, Pehle Banda, Fir Dhanda. The nitty-gritty can always be worked out!"
For the uninitiated, a few days back, a brand pitched its idea on Shark Tank India 3, and Shark Deepinder Goyal called out the brand for its design. "The design language of your company is 2/10," said Goyal after noticing the brand design and logo.
Unit economics of CarDekho
No deal on Shark Tank India 3 goes through without the Sharks asking about the companies' unit economics. Now, taking the opportunity, one clever Redditor decided to turn the tables and ask Amit Jain the same question about his company. What's impressive is that the entrepreneur gave a long reply, mentioning every detail.
The user asked, "The question India wants to know: CarDekho ki unit economics kya hai?"
Amit Jain replied, "This is a question that deserves a very long write-up. Will tell you briefly, our DNA is to build profitable businesses with clear line of sight to achieve the same, get into markets with large TAM so a sustained profitable growth can be seen in the trajectory."
Furthermore, he mentioned the other businesses, "We have many businesses in different stages of evolution and investment, for larger audience here we are into Classifieds through CarDekho/BikeDekho/Zigwheels(New Car and Bike Leads and Used Car Leads), InsuranceDekho, Rupyy(financial services market place), Revv(Car Rental/Subscription service), CarDekho SEA(financial services and classified business in south east asia primarily Indonesia, Phillipines), CollegeDekho, Crack-ed. For CarDekho which was the first business we started its a 80% gross margin business with 35% EBIDTA."
He continued, "Similarly all businesses are in different stage of inception and different profitability profiles. Rupyy is EBIDTA profitable too(around 8%) where in we are doing around 13000 cr annualized loan processing(primarily used cars). CollegeDekho, Crack-ed are nearly break even. InsuranceDekho(processing around 3600 cr annualized premiums) and CarDekho SEA are in investment mode and we do burn there but its all constructive and at per transaction basis both are profitable."
He concluded by saying, "Long term aim of our group is to create many such adjacent businesses which are profitable, scalable and market leaders in the verticals we operate in," and added that since he asked this question to too many people, he deserved to answer this too.
Amit Jain's answer on his favorite car and change in the automobile industry
One user asked him the following questions:
- What car do you use for daily travel?
- What's your favorite car?
- Do you like SUVs or sedans? And how do you feel about the vanishing market of sedans in India?
- What is the biggest change you want to see in the automobile segment other than the EV transition?
Amit Jain replied:
- E-Class Cabriolet / 5-Series - whichever I see first
- Tesla Model X
- SUV, I feel Indians want more space, more value for money and yes more ground clearance. Hence there is a demand for more SUVs
- Emergence of Mobility as a service
Amit Jain on his beef with Aman Gupta
It is no secret that the two sharks, Amit Jain and Aman Gupta, do not always see eye to eye. Even on the show, they have had fallouts several times. One user asked Jain, "Amit sir, you still have any beefs with Aman Gupta ? There was some noticable tension between you two on this season of the show?"
However, Jain gave a witty reply and wrote, "No beef, I am a vegetarian as everybody knows!"
Amit Jain's investment
One user asked him if he keeps his money in an Indian or Foreign bank and if he still invests in mutual funds and stocks, in addition to companies. His reply was, "India all the way! I like to keep a diverse portfolio - as they say, never keep all your eggs in one basket!"
Amit Jain on secret behind his insights
When asked, "what's the secret behind your insights? i mean experience cannot be the only factor, look at Namita for example," Amit Jain replied that he reads a lot of reports. "I read reports on a lot of industries and also learn from businesses i have invested in. My own experiences while building out plays a vital role behind the insights. Having run bootstrapped business for 7 years has immensely helped in having ground insights," wrote the Shark.
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