Shark Tank India Season 3 has got a good start with new budding entrepreneurs coming up with their creative pitches. Interestingly, many participants have even said that what they are doing now has been inspired by Shark Tank India. But many wonder what happens after the deal is struck between the investors and the pitchers.
People who have not been to Shark India but are desirous to know what exactly happens after the deals are made on the show now have an answer from none other than Anupam Mittal, the founder of Shaadi.com who has been one of the sharks on the show since season one.
Things that happen after an entrepreneur strikes a deal
PrivateCircle Research data released in July 2023 revealed that on average around 40% of deals that were made on the Shark Tank India Season 1 closed after a year from when the show was telecast. In the first season 7 judges invested in 28 deals of 40 crore but in the end invested only 17 crores although this figure is sans the numbers related to debt offered. Notably, a few Sharks on the show have also not approved of these figures.
Bro learnt from Youtube and pitched on Shark tank India — Shiva Rapolu (@shivarapolu01) January 30, 2024
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Shedding light on the discrepancies between the things that were shown on Shark Tank India and the actual deals, Anupam Mital said that the exact execution process can take a time of anywhere from a month to even a year. The time frame is decided by how ready the company is for funding. Mittal has reportedly invested around 12 crores during the first two seasons of Shark Tank India.
Explaining the process of funding in detail, Mittal said, “Our teams get in touch with the founders and then typically we create a WhatsApp group. We start the diligence process and paperwork in parallel 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."
The Ola investor added, “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 or three instances where the claims were not correct or the requisite conditions were not met."