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Shark Tank India: What happens after an entrepreneur ‘strikes’ a deal on air? Anupam Mittal explains it in detail
A lot of entrepreneurs who manage to seal the deal on live TV are saying that they still haven't received the funds from Shark Tank India. Anupam Mittal was recently spotted defending the process.
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What happens after an entrepreneur ‘strikes’ a deal on air?
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When Mittal addresses Shark Tank India’s evaluation process
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What Shark Tank India 3 commits
There has been a lot of debate surrounding the legitimacy of Shark Tank India. Some entrepreneurs are saying that even though they made deals on the show, they haven't actually received any funds. The judges on Shark Tank India have promised over ₹120 crore to investors in the past two seasons. However, Anupam Mittal, the founder and CEO of Shaadi.com, has come forward to explain the paperwork process before the funds are released.
What happens after an entrepreneur ‘strikes’ a deal on air?
Shark Tank India provides a platform for Indian startups and entrepreneurs to present their ideas and secure investments for their business ventures. Recently, the reality show has faced criticism for not delivering the promised investment amounts to the businesses featured on air. However, according to the data, 40% of the deals from Season 1 were successfully closed within a year, with an initial commitment of ₹40 crore resulting in ₹17 crore of investments (excluding debt). Anupam Mittal justifies the process by explaining that the execution timeline can vary from one month to over a year, depending on the readiness of the company.
Further addressing entrepreneurs above concern Mittal added, “Those guys didn't even have a company formed. And the ROC website was down for three months. My team was helping them and trying to find other ways…going directly to the registrar company…but for three months it was impossible to register a new company.”
When Mittal addresses Shark Tank India’s evaluation process
In an exclusive interview with Mint, Anupam Mittal explains the evaluation process in detail. He said, “Our teams get in touch with the founders and then typically we create a WhatsApp group. We start the diligence process and paperwork parallelly and connect with them to flag issues – if they've not met the conditions or if the claims are wrong. And then we wait for them to complete the process. Some of them do, some of them never come back to us.”
Mittal’s statement holds the entrepreneurs responsible for their last moment back out from the deal.
“90% of the time…if a deal does not happen after the initial commitment…it's because the founder backed out because they think they got a better valuation outside. Let's say we commit to 20 deals and 10 go through. Out of the 10 that did not go through at least seven or eight will be cases where the founder has backed out. And you'll have two three instances where the claims were not correct or the requisite conditions were not met," says Anupam.
What Shark Tank India 3 commits
Shark Tank India season 3 is all about showcasing the best of the best. Mittal emphasizes the importance of "real authenticity" and highlights the incredible founders and investments featured this season. Therefore he says, “As always, you know how much ever there is funding winter out there, it's always summer on the tank, you will see a lot of good, wholesome investments.”
Shark Tank India Season 3 features an extended investor panel of 12 judges including Mittal, Aman Gupta, Amit Jain, Namita Thapar, Peyush Bansal, and Vineeta Singh.
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