"Shark Tank India Misses Target with Investment Commitments"
Investors in Indian Shark Tank Fulfill Less Than Half of Promised Investments, New Analysis Reveals
chandni
Over a year since the inaugural season of Shark Tank India, an analysis conducted by market intelligence firm PrivateCircle has revealed that the esteemed panel of seven investors fulfilled less than half of their investment commitments. The "sharks" invested in only 27 out of the 65 startups to which they pledged investments on the TV show. Despite committing $4.87 million to these startups, the actual investment made by the investors amounted to approximately $2 million as of last week. It's worth noting that this analysis excluded debt investments.
The situation appears concerning for the recently concluded second season of Shark Tank India, where the panel promised 115 deals, but only one investment has been officially disclosed to the local ministry.
While there may be ongoing due diligence processes for some deals and potential technical issues with the ministry's website causing disclosure delays, these factors do not fully account for the discrepancy in investment pledges.
Sony Network India, the broadcaster of Shark Tank in India, declined to comment on the matter.
Lead Financial Analyst at PrivateCircle, Sumanjan Kumar, clarified that some deals may have fallen through due to concerns found during company due diligence, while other startups may have chosen to seek funding from other investors at higher valuations, bypassing their Shark Tank deals.
The Indian version of Shark Tank has faced growing criticism in recent months, with some startups accusing investors of ghosting them after promising deals on the show. However, Anupam Mittal, an investor on Shark Tank India and founder of Shaadi.com, defended the show in a LinkedIn post, claiming that 66% of deals presented during the inaugural season were successfully executed, surpassing the success rate of the U.S. counterpart. Mittal explained that most deals typically take three to six months to materialize.
Aman Gupta, co-founder of Boat, a consumer electronics brand and also an investor on Shark Tank India, further defended the show, stating that many entrepreneurs prefer to negotiate the investment deal or decline it altogether after the telecast.
PrivateCircle's analysis supports this claim, identifying at least six startups that declined their Shark Tank deals and sought funding from different investors at higher valuations.
