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Shark Tank India 3: Pitcher negotiates with Aman Gupta strongly after latter calculated low valuation for his company
In the latest episode of Shark Tank India 3, pitcher seemed offended after Aman Gupta calculated a low valuation of his military tactical gear brand company. Read to know.
Shark Tank India 3 has witnessed several interesting pitches so far. The latest episode of the business reality show welcomed a retired army officer who stood before the Sharks to pitch his idea of military tactical gear brand Spec-Ops. His high valuation made him negotiate with the Sharks strongly. Let us dive into his pitch and find out more about his offer.
Pitcher asks Rs 80 lakhs for 2% equity
Representing his military tactical gear brand Spec-Ops to the Sharks Anupam Mittal, Namita Thapar, Vineeta Singh, Aman Gupta, and Amit Jain, retired army officer Major Anil Kumar Malik arrived on Shark Tank India 3. Describing his idea and the inspiration behind building Spec Ops, he mentioned being inspired by noticing the technical gears being used by the US Army officers. Anil told the Sharks that he wanted to do the same for Indian soldiers and hence started Spec Ops.
The brand manufactures apparel and tactical gear designed for the toughest military operations. Anil Kumar Malik claimed that his company was the first to use Lycra in cargo pants designed for soldiers to ensure stretchability and comfort. After explaining his basic idea and products, the pitcher demanded Rs 80 lakhs from the Sharks in exchange for 2% equity in his company. 
Namita Thapar is skeptical about the Spec Ops business model
Impressed by the pitcher's entry on Shak Tank India 3, Namita Thapar welcomed Anil Kumar Malik. Curious about his business model, she inquired further as she couldn't quite grasp it. Anil elaborated on every detail of his company and vision, expressing his aspiration to eventually transition his brand into a B2C (business to consumer) business.
Later, the Sharks expressed their appreciation for the pitcher's honesty and attitude. Talking about the financial aspect of Spec Ops, the pitcher stated that his sales in 2023 stood at Rs 6.2 crore and that he is projecting Rs 8.5 crore in sales this year. However, he was unable to provide some other insights that Shark Anupam Mittal asked him to highlight. Major Anil admitted to having limited financial knowledge.
Aman Gupta reacts to Pitcher's valuation
After the pitcher could not provide many financial details, Aman Gupta raised an objection to the asked valuation. Aman was curious to know the factors that led the pitcher to seek a valuation of Rs 40 Crores. Meanwhile, Namita Thapar was the first shark to bow out of the deal. Giving a reason for her decision, she said that the business was not investible. She commented that the pitcher might not scale the company, and hence, the investor might not get an exit.
Later, Aman Gupta made an offer valuing the company at Rs 2 crore. Listening to his offer, the founder of Spec Ops seemed offended and explained that if he had not been on Shark Tank India, he would not have entertained all this, given the valuation Aman offered him. Anil added that he had been receiving orders worth Rs 8 crore. Revising his offer after acknowledging the latter information, Aman Gupta increased it to Rs 15 crore.
Lastly, Aman Gupta and Amit Jain made a joint offer to the founder of Spec Ops. They offered Anil Kumar Malik Rs 40 lakh for 2% equity plus Rs 40 lakh in debt at 12% interest for two years. Lastly, the deal was secured, and the company finally got a better valuation.
Shark Tank India 3 can be watched on SONY LIV. This year’s Sharks include Namita Thapar, Aman Gupta, Amit Jain, Peyush Bansal, Vineeta Singh, Anupam Mittal, Deepinder Goyal, Azhar Iqubal, Ritesh Agarwal, Radhika Gupta, Varun Dua and Ronnie Screwvala.
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