The Indian startup ecosystem has experienced significant growth, driven by a surge in entrepreneurial activities, increased access to venture capital, and a burgeoning culture of innovation. One of the factors contributing to this evolution is the emergence of television shows like Shark Tank India, an Indian adaptation of the popular American reality TV show Shark Tank which has become a prominent platform for entrepreneurs to showcase their innovative ideas, seek investments, and gain exposure to a wide audience.
From Boardrooms to Drawing Rooms
Change of Mindset
Media Visibility
Secure Investments
‘Amrit Kaal’ or Golden Period for Young Entrepreneurs
Democratize Funding
Startup Culture in India
New Contacts and Networks
Credibility of Shark Tank India
Reasons for Rejection by Sharks
Future Aspects
From Boardrooms to Drawing Rooms
Words like startups, stake dilution, seed funding, and ROIs have become common topics of day-to-day drawing room discussions after the Shark Tank India Season 1 was broadcasted in 2021. Commoners and the Indian middle class have become more interested in discussing the pros and cons of running a startup, coming up with new ideas, ownership, and entrepreneurship has become a dream come true.
Change of Mindset
Gone are the days when kids or collegians used to hesitate to discuss their minds about opening their enterprise. I can talk of myself, my 4-year-old son aims to sell (wholesale) ration like dal, rice, and millets after being in touch with a few uncles who have started their venture of selling fully organic grocery, food grains, pulses, and millets. I will not say that it is directly because of Shark Tank India, I would say it is a ripple effect. His uncles have taken inspiration from the varied episodes of the reality show running on prime time at 9 pm on Sony Liv.
The mindset of middle-class income groups has slowly evolved and they are open to the idea of owning an enterprise or business of their own. Thanks to television, OTT platforms, rapidly evolving social media, and brand publicity of a platform called ‘SHARK TANK INDIA’ that has made its space in every drawing room.
Media Visibility
The show that invites applications from the whole country has helped people feel the media and its power. Shark Tank India episodes have significantly boosted the visibility of startups by showcasing their products, services, commodities, and supplies to a more than 140 crore audience within India. This exposure has immensely helped firms, SMEs, potential investors, customers, and partners.
The show has not only opened a gateway for increased visibility, it has opened a vast arena for investments, mutual cooperation, and development for the entire business community throughout the world. One can get orders, deals, and new credit lines after an entrepreneur’s story has been aired on a national TV channel. Thanks to the National Democratic Alliance-led Indian government which has shown the dream of ‘Startup India’ to the whole world. The Narendra Modi-led government has helped streamline policies, rules, and regulations to invite more and more investments in the small-scale sector.
Indian government held hands with entrepreneurs in the way of Startup India, Digital India, Make in India, and many more such programs. Today, India has 3rd largest startup ecosystem in the world, and it is expected to witness year-on-year (YoY) growth of 12-15% consistent annual growth.
Secure Investments
The show promotes secure investments from successful and experienced investors so-called Sharks, who have dealt with the know-how of beginning a venture, taking required approvals, complying with the norms, and facing all the obstacles during their entrepreneurial journey.
Their insights, experiences, advice, and unbiased feedback can be very valuable in shaping the direction of upcoming enterprises.
‘Amrit Kaal’ or Golden Period for Young Entrepreneurs
The stories of Sharks rather successful investors or businessmen/businesswomen cite a wonderful example for the decades to come and the upcoming generation who will be witnessing the ‘Amrit Kaal’ an auspicious period of 25 years between India’s 75th and 100th independence anniversaries. Finance Minister Nirmala Sitharaman has also signified the same and gave enough emphasis on funding for startups by announcing a corpus fund of Rs 1 lakh crore for the country’s tech-savvy youth in her Budget Speech on February 1.
Democratize Funding
The injection of funds is crucial for a startup’s growth and development and would become a huge deterrent if the demands of the business are not met. The show has given enough room for commoners to unhesitatingly pitch for funding on a social platform irrespective of the repercussions involved. The show has given the power to a hard-working entrepreneur to dream big, aim high, and be persistent in their effort to boost the company’s operations and focus on profitability regardless of enough funding at home.
Damini Bhandary
Startup Culture in India
There have been 320 pitches across two seasons of the show. The show’s third season has just aired on January 22. Sharks have invested Rs 128 crore in 176 of 320 startups, of which one-third went to food and beverage companies and personal care products. The categories featured on the show tend to reflect emerging trends in the Indian space, such as eCommerce, food and beverage, health and wellness, and education.
The reality show, inspired by its US counterpart, has helped budding businessmen to start a new narrative of being prudent, and gutsy enough to present their business ideas and seeking investment from a panel of seasoned investors or ‘sharks.’
This may contribute to a more vibrant economy, startup ecosystem, and healthy work culture in India. If most of the young minds think for their venture wherever necessary, just imagine what would happen.
With too much supply of ‘startups’, the competition would rise.
Every household will have one entrepreneur just like India has one engineer in every household.
Winning in the startup ecosystem would become tougher and tougher with time.
And, people will start dropping off once the market finds an equilibrium.
At the same time, it may be dangerous to have so many business houses, what would the private sector do? I am sure that everyone will have their niche, uniqueness, and brand supremacy that will help them thrive and sustain in the ever-evolving, technologically-equipped market. The presence of an innovator or an upcoming CEO in the show can serve as a market validation. Maybe just by being in the show, or securing investments on the Shark Tank platform, one can gain enough traction, confidence of customers, flashy deals, and attractive offerings, which the entrepreneur might have not even thought of.
New Contacts and Networks
The entrepreneurs featured or participants on Shark Tank India will gain access to media, different networks, and websites where they can generously promote their products and supplies. A network of successful entrepreneurs, investors, and mentors would be keen to join hands with the budding entrepreneurs. This network would not only provide ongoing support, guidance, and connections but also threads that will be tied beyond the show as well.
Shark Tank India Season 4 has been launched on 6th January 2025.
Credibility of Shark Tank India
The success rate of any startup funding would depend on how true and reliable are the people (sharks) who are emerging as judges on the show. One may be very sweet and welcoming on television but may be very different in actual behavior and vice versa. What is shown on the screen may not be the entire truth of Shark Tank India. The stories, experiences, and personal behaviors matter a lot when it comes to running a successful show. A lot of participants have not talked about behind-the-scenes stories of Shark Tank India. It won’t be a surprise if tomorrow someone comes up and says that he/she was not paid a penny, which was promised on air. There have been stories in the media where participants have complained of not receiving the promised share from many sharks.
In the latest Season of Shark Tank India, the sharks are exploring extra safeguards for their equity stakes by considering royalties based on sales.
In the last two seasons of the reality show, where startups seek investments from experienced entrepreneurs, two kinds of deals were on the table—equity-based and debt-based. The latest add-on –royalty––is the fresh ingredient incorporated to enhance the overall flavor of the deal, making the culinary experience even more appetizing.
One can say that these are prosperous times for sharks but challenging times for entrepreneurs. In the previous two seasons, no shark invested more than 10% of their net worth. One in five deals involved debt to keep the money secure. To avoid risks, the sharks largely remain restricted to their domain expertise.
Reasons for Rejection by Sharks
While the initial pitch on the show may create excitement and interest, the due diligence process that occurred afterward often revealed more about the companies, sometimes the sharks pulled back from their initial offers.
There may be a case that sharks who are posing as judges, and their firms, may not be doing very well in terms of finances. Their own companies may be making losses, have overvaluation, or have not been earning enough profits. Still, their identity as a shark is undeterred, their business acumen, innovative ideas, intelligence, and vision can’t be questioned.
Future Aspects
It’s essential to note that the impact of Shark Tank India on the startup ecosystem will depend on various factors, including the success stories that emerge from the show, the strategies employed by the entrepreneurs post-investment by sharks, market policies, and the overall economic and business climate within the country.
Ria Sahni
FAQs
What is Shark Tank India analysis?
Shark Tank India is a business reality show where entrepreneurs pitch ideas to investors for funding. It boosts startup growth and inspires innovation but faces criticism for focusing on drama and high valuations. Despite this, many startups, have grown after the show.
What is the role of Shark Tank in promoting startups?
Shark Tank India helps startups by providing funding, mentorship, and visibility. It inspires innovation, connects entrepreneurs with investors, and boosts business growth through media exposure. Many startups have scaled quickly after appearing on the show.
What is the impact of Shark Tank India?
Shark Tank India has supported startups by offering funding, guidance, and exposure. It has sparked innovation, promoted business ideas, and motivated aspiring entrepreneurs. Several startups have expanded rapidly after featuring on the show, establishing it as an important platform for growth in India.
