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Shark Tank India: Throwback to when pitcher asked for Rs 5 investment from Sharks in his company for 5% equity
Shark Tank India celebrates the entrepreneurial spirit and allows several pitchers to explain their startup ideas to the Sharks. But do you know a company sought an investment of only Rs 5?
Shark Tank India is a business reality show aiming to support the nation's aspiring entrepreneurs in building their businesses. Many people appear on the show seeking an investment from successful businesspeople by pitching their ideas to them. Be it a startup from the fashion industry or the tech field, The show has witnessed several business ideas being pitched before the Sharks. Every picture has a different investment demand on Shark Tank India, depending upon their business plan and company sales.
But there was an instance in the first season when a company appeared before the Sharks demanding an investment of Rs. 5. Upon hearing the original ask of the pitchers, every Shark was surprised and confused. Let us find out what really happened.
Cocofit offers 5% equity in exchange for Rs 5
in the first season of Shark Tank India, a company named Cocofit, which claimed to be setting up standards in the coconut business industry, made an appearance. The pitchers, Pavan Kumar Seepana, Sasi Kanth Visinigiri, and Sunil Kumar Tentu, explain that they aim to transform the coconut industry into a corporate sector. The founder and CEO of Cocofit surprised everyone by asking the Sharks for an investment of Rs 5 in exchange for 5% equity in their company.
Further explaining the venture, the pitcher mentioned that they started Cocofit in August 2019 and managed to have 31 outlets in 7 different states. Ashneer Grover commented, "Are you willing to give 5% of your company to the Sharks if each one of us invests Re 1?" Meanwhile, Anupam Mittal quipped, "10% for Rs 10." Then, Aman Gupta stated, "100 rupaye mein company (Company in Rs 100)."
The next moment, the pitcher expressed that they had been receiving requests to establish their franchise in other countries. Sasi Kanth Visinigiri stated that they lag in operations and, hence, wanted someone who could support them and knew the business better than they could. To this, Anupam Mittal said, "Good thinking. You have got maturity."
Ashneer Grover goes out of the deal
After Peyush Bansal asked them about their business, the pitchers presented them with a few bottles of coconut juice, which every Shark liked. Later, giving insights into their company's sales, the founder of Cocofit claimed that he did the sale amounting to Rs 3.1 crore. Additionally, he mentioned having a gross profit of Rs 2.4 crore and a net profit of Rs 2.1 crore.
Namita Thapar was confused about how they managed to have such a huge margin in sales for their net and gross profit. In reply to Sharks' queries, Cocofit's founder mentioned that they operated on the concept of the master franchise. Peyush asked them, "Toh aap products sell hi nahi karte, bas franchise sell kar dete ho (You don't sell the products, you all just sell the franchise?)." After the pitchers explained that they make huge profits by selling franchises, Anupam Mittal commented that they did not have a product but a franchise business.
Hearing the entire pitch and the concept of the Cocofit company, Ashneer Grover declined to make a deal with the pitchers. Peyush Bansal did not show interest in the deal either and said, "I don't want it. You all give equity to others. I want peace, not money. Many people over here want only money." Anupam Mittal replied, "What do you mean by many people? You talk about yourself."
Later, Aman Gupta showed interest in investing in the business, followed by Anupam Mittal and Namita Thapar. The three collectively decided to give Rs 5 to the pitcher in exchange for 5% equity. Lastly, the deal is secured by the Cocofit team at their original ask.
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