Mr. Amit Ratanpal is an alumnus of Harvard Business School with over 20 years of experience across private equity, capital markets, asset management, and investment banking with large organizations like Birla Sun Life and ICICI Group. He has also set up various domestic and global funds, through which he invested and managed ~INR 300 Cr with multiple successful exits. Leveraging his experience and strengths, he co-founded BLinC with his partner RK Rangan, to support entrepreneurs and invest in EdTech and FinTech sectors in India.
Here is an excerpt of the interview withMr. Amit Ratanpal, Founder & MD, BLinC Invest on Indian Startup Ecosystem.
How was the year 2021 for you as an investor/VC?
It was definitely a high-momentum period as private investments touched new peaks and multiple unicorns emerged throughout the year from all sectors. 2021 was a milestone year for BLinC – we had successful exits, launched our INR 100 Cr BLinC Fund II, and also made our first investment from the Fund in an InsurTech company named Vital.
How often do you bet on the entrepreneurs and not on the ideas? And when/if you do that, what quality of the entrepreneur usually makes you do that?
As an investor, I always strive to find the perfect balance between the quality of the promoter and the scalability of the business idea. We at BLinC work very closely with the promoters of our portfolio company, and hence, alignment with the promoters plays a key role in our investment decisions. It is always great to work with experienced and honest entrepreneurs who are good at business execution, organization development, and fundraising.
What is a warning sign for you when investing in a startup?
I prefer investing in startups whose key management team is execution-focused and takes a hands-on approach to the business. Another red flag is when promoters do not have a clear understanding of what problem they are trying to solve for their customers and how significant it is.
What are some common biases you find in the Indian Startup ecosystem?
One of the most common biases in the Indian startup ecosystem is “growth over profitability”. Businesses today adopt a high-burn-high-growth strategy without focusing on profitability. However, high growth does not necessarily lead to profitable unit economics. On the other hand, there is a general bias towards funding entrepreneurs coming from top-tier educational institutions.
What are your views on the SharkTankIndia Episodes until now?
I believe the show will surely motivate all the aspiring entrepreneurs, which will further amplify the existing entrepreneurship wave in the country.
We are seeing many startups exiting with IPO, what’s your opinion on that? How is it going to change the ecosystem?
Exits, especially through IPOs, are a great sign of success for both entrepreneurs and investors. IPO exits also generate a good amount of liquidity for the investors, who can further invest in other startups in the ecosystem, thereby, improving the liquidity in the market. I believe this phenomenon is only going more prominent over the coming years. On the other hand, the increasing number of IPOs also serves to indicate the maturity of the investors in the market, especially with regards to the acceptance of new-age business models that are yet to turn profitable.
More than 42 unicorns in 2021. What do you think caused this wave? Is the valuation justified according to you?
It is the changing consumer mindset that has enabled these Unicorns to grow. Today’s consumer prefers convenience, is very open to try new products, and is less risk-averse than the consumer of the previous decade. Most of the unicorns have tapped into this changing consumer mindset to identify and solve unique problems for their customers. For example, Licious has completely changed the way consumers order meat. I believe the valuations are steep, and there is a bubble. However, like everything, good businesses always come at a higher price.
How can we support/enable entrepreneurs in tier2 and tier 3 cities?
Entrepreneurs in Tier 2 and Tier 3 cities suffer from lack of access to quality resources. One of the most effective ways to fill this gap is to set up incubation centers in these regions in partnership with colleges, to provide access to top quality mentorship and industry experts.
What do you look forward to as an investor in the year 2022?
Budget 2022 has focused significantly on leveraging technology to penetrate deeper into the Tier-2 and lower cities in India. I expect technology-led businesses to gain significant market traction and attention from the investor community, giving rise to new unicorns in 2022. At BLinC, we are looking forward to deploying our Fund across various whitespaces identified through our internal research.
What are a few sectors you think would be hot in the upcoming year?
Education and Financial Services sectors have been very resilient through the pandemic. Companies in these sectors have a large potential to leverage technology to drive deeper penetration, and I expect these sectors to continue growing at an accelerated rate in the upcoming year.
One learning that you would like to share with founders who are looking to raise funds?
It is all about execution, prioritization, and defining the short-term and the long-term focus. Early-stage startups should have a detailed understanding of their target market, competitive landscape, and the target customers. It is critical to think from the customer’s perspective and solve at least one real pain point of the customers. It is important to consistently prioritize and make efforts to achieve the product development milestones and the targets of the business plan. While pitching to the investors, it is important to give comfort to the investors around your market understanding and your execution capabilities.
Ghazal Alagh is a charming and successful businesswoman who co-founded and built the beauty, child and skincare brand named ‘MamaEarth’. She was also one of the seven sharks from the Shark Tank India show. Though her presence in the show was limited, Ghazal made several investments and encouraged the upcoming entrepreneurs.
In an unsuccessful search for a skincare solution for her kid, Ghazal ended up founding her own baby and skincare brand. Her love and passion for business and branding strategy made Ghazal an inspiring businesswoman. Now she’s passing hands to lift other budding entrepreneurs to develop their startups. Let’s know a little more about Ghazal Alagh and her investments in startups.
Ghazal Alagh was born in Gurgaon, Haryana, on the 2nd of September 1988. She is a BCA (Information Technology) graduate from Punjab University, where Ghazal Alagh also completed her Post Graduation.
Her love for arts made her attend several intensive courses on figurative painting and modern arts at the New York Academy of Arts. She worked as a corporate trainer at NIIT before founding MamaEarth.
Ghazal Alagh with Varun Alagh
Ghazal got married to Varun Alagh in 2011. After the birth of their first child, the couple realized that there were no toxin-free baby care products available on the market. This compelled Varun and Ghazal to start their own company.
They began with toxin-free baby products and later expanded to beauty, body, hair, and skincare solutions for all age groups. The company ‘MamaEarth’ has received multiple recognitions for its quality and growth over the years.
Here is the list of all startups funded by Ghazal Alagh:
Uvi Health
Uvi Health Logo
Uvi Health is a healthcare solution platform that offers medical and other wellness assistance to women. The company offers personalized support from experts. Uvi aids women in taking care of their mental wellbeing, PCOS-related issues, and physical fitness. They organize doctor and health coach consultations for comprehensive expertise solutions.
Ghazal Alagh made an investment in Uvi Health in July 2021. It was a Pre Seed Round led by Titan Capital. A sum of ₹2.47 crores was invested in the company by Ghazal along with five other investors.
The Sass Bar
The Sass Bar Logo
The Sass Bar is a startup that is involved in the manufacturing of creative soaps. The company produces soaps that look and smell like desserts. The products are made up of completely natural ingredients.
Other than desserts The Sass Bar manufactures soaps in the form of seascape, retro, cafe, festive and celestial collections. There is also a bulk gifting option along with curated gift cards.
The Sass Bar’s innovative and creative idea fascinated Ghazal Alagh. She invested ₹25 lakhs for 17.5% equity in the company.
Sunfox Technologies
Sunfox Technologies Logo
Sunfox Technologies or Spandan is a company that creates compact and portable devices that help people to track their ECG, Sugar, and BP levels. This startup aims at providing easy-to-use healthcare monitors at affordable costs.
Sunfox Technology’s goal is to reduce the death rate caused by undiagnosed health failures. Constant monitoring of our health reduces this and Spandan’s compact devices help in achieving this.
Ghazal Alagh made an investment of ₹20 lakhs in return for 1.2% equity in Sunfox Technologies.
The 19-year old Nihaal Singh Adarsh, the founder of Watt Technovations, appeared in Shark Tank India. He got the attention of all Sharks through his passion for innovation and the investment he demanded from them.
Adarsh pitched his idea of creating ventilated PPE kits but the sharks turned down his idea. Instead, they encouraged him to keep innovating by providing him with their support and the asked investment. Watt Technovations demanded a fund of ₹101 for 2% equity.
Ghazal Alagh contributed her share of ₹25 for 1% equity in the startup.
Humpy A2
Humpy A2 Logo
Humpy A2 is an organic dairy product startup. The company offers nutritious, pure, and fresh dairy products. In addition to it, Humpy A2 sells a few groceries like dals, rice, millets, honey, oil, etc., All their products are USDA, FSSAI and A2 certified.
Humpy A2 not only aims at feeding people healthy but is also determined for safe and green earth. The company is trying every means to reduce plastic usage and go environment friendly.
The founders managed to convince Ghazal Alagh and secured a sum of ₹33.33 lakhs for 5% equity in the company.
Gold Safe Solutions Industries
Safe Solutions Industries manufactures anti-suicidal ceiling fan rods that prevent suicides by hanging. The man behind this invention is Sharad Ashani and he pitched his idea in Shark Tank India.
The founder claims to have installed over 50,000 anti suicidal rods in hotels, hospitals, jails, hostels, etc., His noble mission to reduce hanging deaths by his Gold Life Venture received a good reception from the sharks as well as the public.
Gold Safe Solutions Ind. received a sum of ₹16.67 lakhs from Ghazal Alagh for 10% equity in the company.
Wakao Foods
Wakao Foods Logo
Wakao Foods is a Jackfruit based food manufacturing startup from Goa. The company sells ready-to-cook and ready-to-eat foods with no added preservatives. Wakao Foods also produces vegan food varieties made from Jackfruit. The founder’s long-term goals and vision towards his business were so clear. Ghazal Alagh offered to invest ₹25 lakhs for 7% equity in Wakao Foods.
Nomad Food Project
Nomad Foods Logo
Nomad Food Project is another food manufacturing startup that sells bacon-related jams and relishes. Bacon is the core food item used in making all other dishes made by this startup. The varieties and flavours Nomad Foods bring in their products and the marketing technique they used to sell them are excellent.
The founders convinced Ghazal Alagh and bagged an investment of ₹10 lakhs for 5% of the company’s equity.
Though MamaEarth stationed itself firmly in the market, Ghazal Alagh became well-known only after she appeared as a Shark in the Shark Tank India. She was the youngest shark in the show. Ghazal’s journey as an investor has just begun. She has made most of her investments in Shark Tank India. Ghazal’s enthusiasm for budding startups and entrepreneurs proves that she will invest more in the future.
FAQs
Who is Ghazal Alagh?
Ghazal Alagh is a charming and successful businesswoman who co-founded and built the beauty, child, and skincare brand named ‘MamaEarth’.
When and where was Ghazal Alagh born?
Ghazal Alagh was born in Gurgaon, Haryana, on 2nd September 1988.
How much has Ghazal Alagh invested in startups?
Investments in startups are estimated to be around ₹1.2 crores in Shark Tank India and an undisclosed amount in Uvi Health.
What is the net worth of Ghazal Alagh?
Her net worth is estimated to be around $20 million.
Shark Tank is one of the most famous reality shows. Originating in the west, it has become such a sensation that people are adopting the idea. Many are adopting the idea and making their own country versions of the show. Recently the show came to India in a never seen before avatar.
Last December, SonyLiv launched ‘Shark Tank India’ and what happened next was awe-striking. Viewers all over the country were glued to their screens to finish every episode of the first season ever. The show amassed amazing views and it was so vital that everyone seemed to be talking about Shark Tank India. A great achievement for the show and all the participating parties in the venture.
The show format is simple and easy. There are judges, who are all entrepreneurs in different fields. Who has disrupted one market or the other? Then there are participants or volunteers who are Indian and aspiring entrepreneurs. They pitch their ideas to sharks with the hope that they will like the idea and invest in the idea.
The persuasion of equity and capital makes up a whole episode. The show’s contestants made their pitches and many benefitted from the investments from sharks but what did sharks get? In this article, we will find out the possible benefits that were presented to sharks from Shark Tank India. Let us read on.
Shark Tank is one of the most famous shows among startup enthusiasts. Not just people who are into entrepreneurship, but others too love watching pitchers pitch their ideas to big sharks (Established entrepreneurs).
The show took the popular path in America and was a very liked show. The show was made into a series of episodes. Each episode had some candidates who pitch their ideas to investors for raising capital. It initially premiered in August 2009 and since then has managed to amass a lot of views and attention.
The American counterpart was an adaptation of a Japanese show called, the Dragon’s Den. Originally called the Money Tigers in 2001. The show format involved entrepreneurs presenting their ideas to a panel of judges called sharks. Who then decides, communicates and persuades them to invest in those ideas.
Everything About Shark Tank India
Starting in December 2021, Shark Tank India was a first of its kind experiment in Indian television. The show format was almost the same as the original shark tank America. Aspiring optimistic entrepreneurs from India pitch their business models and present their workings to established entrepreneurs and investors. The panel of investors then decides after a lot of discussion about business, to invest money or reject their idea.
Shark Tank India
Each pitch begins with the participants asking for some amount of capital in return for a percentage of ownership in their business. The task that they make, sets up the valuation of their venture. The sharks try to negotiate the valuation to be in context with real numbers. Those metrics include numbers like revenue, previous deals, consumer rates and all sorts of expenses.
Valuation is one key concept that sets the belief that the judges or investors need to know whether the business or startup has the ability to stay afloat. The sharks need organisations that can be scaled and have an appeal to a large number of purchasers.
The judges try to figure out which businesses will be a good investment. They do that from negotiations and questions that they ask the participant entrepreneur. Judges are very particular about capital and numbers. This makes the show even more interesting. People love to watch them negotiate and persuade the participant for a good deal.
The judges of the first season were as follows,
Aman Gupta, The co-founder and Chief Marketing Officer (CMO) at boAt. BoAt is an earwear, audio products company.
Ashneer Grover, Former Co-founder and Managing director at BharatPe, the unified payments interface company.
Anupam Mittal, Founder, and Chief Executive Officer of Shaadi.com and People group. Shaadi.com is a popular matrimonial website.
Ghazal Alagh, Co-founder and Chief Executive Officer of MamaEarth, a wellness products company.
Namita Thapar, who is Executive director of Emcure Pharmaceuticals. She has expertise in the Pharma industry.
Peyush Bansal, Co-founder, and Chief Executive Officer of Lenskart, which is an eyeglasses company.
Vineeta Singh, Co-founder and Chief Executive Officer at Sugar Cosmetics. This popular company deals in cosmetics.
All of these companies are startups that were small at one point in time. These founders have acted as great leaders which helped these startups to get to the place where they stand. There are revenues flowing like water and valuations that reach the sky.
Shark Tank India aimed to collect these established entrepreneurs in one place. These experienced judges then judge the participants in the show for valuations, equities, and capital. This was something that was never seen before in the Indian television industry. Shark Tank India changed that forever, as it was able to garner great reviews. It created a fan following of its own.
The series, Shark Tank India, was immensely popular among the youth. As we all know that India is a youthful nation and youth is known to be creative. This show showcased the same, we saw amazing, creative business ideas.
Deserving participants got the paychecks and we all got the kick that we want from a reality TV show. But what did the sharks get? This is the question that we are trying to tackle. Let us see what opportunities the sharks got.
The Shark Tank India has made quite a buzz around the whole country. SonyLiv has managed to make a multi-bagger series out of this show. Everyone was watching it and appreciating the participants and their will to change something in society.
Visibility
If I ask you how many of you knew Ashneer Grover even before he became a judge at Shark Tank? Or Aman? Or Vineeta? Chances are that you would not know their name and faces. Only a few people who are deep into startups would know their names.
After coming to this platform of shark tank, all the sharks got immense visibility or popularity that is hard to get in this short span of time. It’s not that this is good for their character and personality and the work that they do but visibility helps in people recognising them at an instant.
With a leveraged position that all the sharks stand at. The visibility they gained gave them more power in their respective fields. More people know about them now. With this visibility, these sharks will be able to get recognised by a lot of future prospects and probabilities of profits. These benefits are not quite quick but will offer them a leveraged position in the future.
Investing Opportunity
Now, this was probably the best benefit to the sharks, no cap. This was as good a benefit to sharks, as it was a benefit to participants, if not more. All the sharks made investments in multiple startups with great potential.
All these sharks got more exposure for new startups from all over the country than probably any other investor in the country. This was the biggest benefit to the sharks. Here we will discuss how much each of the sharks invested during the show.
How the Sharks Benefited from Shark Tank India?
Viewers from all over the country got to know different startups but what about the sharks? What did they get?
Let us see what were the benefits to sharks of the Shark Tank.
Ashneer Grover
Ashneer Grover
Starting off with the most rational and straightforward judge, Ashneer Grover. He was the co-founder of BharatPe, which is a digital payments platform. He has been in the headlines since the inception of the show, Shark Tank India mainly due to all the controversies involving him, the Board of BharatPe and Kotak Bank. All of it finally ended with his resignation, which came in on February 28, 2022.
Apart from the headlines, he has been the investor for companies like the Whole Truth, IndiaGold, OTO Capital, and the Front Row. In the first season of Shark Tank India, the shark has invested a sum total of 5.3 Crore Rupees. The investment that he made was a result of a total of 21 deals, which is a good number for an experienced investor like Ashneer.
Anupam Mittal
Anupam Mittal
Anupam is another most loved judge of the show. He is the founder and the chief executive officer of a leading matrimonial website called Shaadi.com. Everyone liked the simple and straightforward attitude towards every pitch. He was not just the person behind Shaadi.com but he has built several successful ventures.
He has different interests and he has also produced two Bollywood movies. In the first season of the show, Shark Tank India, Anupam Mittal invested a sum total of 5.4 Crores to various startups which he found worthy. The investments that he made was a result of 24 deals that he negotiated on the premises of the show, Shark Tank India. He mentioned that he has always wanted to create opportunities for all the young entrepreneurs, as they will lay the first brick to the new India.
Namita Thapar
Namita Thapar
Another famous name from the show. Namita Thapar is one of the most successful women entrepreneurs in our country. She is the chief executive officer of Emcure Pharmaceuticals and recently became a judge at Shark Tank India. She is passionate about women in entrepreneurship, and she was also associated with different companies in the United States of America in various marketing and finance roles.
In the first season of Shark Tank India, this shark got an amazing opportunity to invest in various stage startups. She found potential in many startups and invested her capital in 25 deals. The sum total of the amount that she invested in startups was 10 crores. This is a good amount, even better than Ashneer and Anupam. She is an amazing investor with clear thoughts about her investment decisions.
Peyush Bansal
Peyush Bansal
Peyush was another judge with a huge fan following. He is humble and keeps a simple attitude, but is sharp in intellect. His hard work and determination have led him to realise his dream of Lenskart and create value for society. The stage at which he is now is a remarkable achievement in itself and he is worthy of it too.
Now he helps other entrepreneurs realise their dreams. In the show, Shark Tank India, he got this chance of investing his money and helping other startups to go ahead in their journey.
He utilised the opportunity and invested his 8.2 crores in various startup deals that he found potential in. Among all the pitches and negotiations, the amount that he invested was a result of 27 deals which he found to be a good investing opportunity.
Vineeta Singh
Vineeta Singh
Vineeta Singh, the co-founder and chief executive officer of SUGAR Cosmetics. She was one of the sharks in season 1 of Shark Tank India and had a blast of a season. After graduating from IIT Madras and IIM Ahmedabad, she got a decent offer for herself but declined the offer in order to go in the entrepreneurship direction.
As per the latest survey, Sugar cosmetics has been successful in creating a community of 5 million people. Her net worth stands at a whopping 300 crores. In the first season of Shark Tank India, this shark got the investment opportunity and she didn’t leave it.
She invested around 3 crores in various startups that had potential. A total of 15 deals were signed by this entrepreneur during the course of the first season of Shark Tank India. A true commemoration of statistics.
Aman Gupta
Aman Gupta
The meme guy of the Shark Tank India. This person is super chill and is equally sharp in his words. He is fun and does not shy away from saying what he thinks. Aman Gupta, The co-founder and Chief Marketing Officer (CMO) at boAt.
BoAt is an earwear, audio products company. He is the co-founder of boAt, which is the top earwear brand in India. on Shark Tank India, this shark got the opportunity of investing out his hard-earned money. Which will help the budding entrepreneurs with the fuel that they will be needing in their future.
This shark invested a total sum of seven and a half crores (7.5 crores). That amount of capital he invested was a result of 25 different deals on the show. He clearly knows the game.
Ghazal Alagh
Ghazal Alagh
She is not the most famous entrepreneur but the brand she has built really speaks for itself. Ghazal Alagh, the co-founder and chief executive officer of ‘Mama earth’. She is the mind behind this famous wellness brand. She got immense visibility because of the show and all of that she truly deserves.
In the first-ever season, she got the chance to be a shark in Shark Tank India and made deals in startups. Her estimated net worth stands at 148 crores in Indian Rupees. During the course of the show’s season One, the entrepreneur invested a sum total of 1.2 crores in various startups.
She made these investments in a total of 7 deals. She is sharp and simple as an entrepreneur. Her calculations and experience made her invest in good startups during the show.
There were obviously immense ripple effects after the show. Every young Indian household consumed the content that SonyLiv created and got to learn something. In an immensely big country like ours, it is imperative that people know how to create wealth in the longer term.
This show, Shark Tank India, in a sense created hype for the same. This is India wants to create things in real life. This is India which wants to create value for society.
Words like Margin, Valuation and Equities made their way to a middle-class household with the help of the show. The show garnered enough attention which will definitely help the next wave of new-age entrepreneurs. The show clearly entails all the learnings and a guide of valuations which the judges beautifully explained. The judges made a lot of efforts to pack their knowledge into nuggets of wisdom that can be easily consumed.
The judges showed the importance of good ideas and the need for innovation. They showed us that the country and the society of every place need some innovative ideas that have some value to them. Ideas that solve some real problems of the world.
We were entertained and enlightened by the industry expertise of all the judges on the show. Which showed every entrepreneur a correct way of doing things. All of that information in a fun and real sense with that of the world.
The show format was fun too, sharks have to figure out new ways to find out which company was worth the investment. They have to negotiate the actual valuation and also, choose the investment amount.
Interestingly, the Sharks have invested a total of over Rs 32.5 crore on Shark Tank India in season one. This money of investors will be the capital for new-age entrepreneurs. This will help them as fuel in their journey to the whole world. India has always innovated its way ahead in the world and will continue to do that if it is provided with opportunities. Platforms like these support the mission and investors like sharks, always fuel the passions which drive the new age of India.
Conclusion
The entrance of the shark tank in India was an immense and huge achievement. The business world of the country benefited a lot as much as the middle class of the society. The show made many technical jargons related to the business world easy for normal households. Shark Tank India in a complete sense made the youth knowledgeable in the aptitude of the capital world.
In this sense, the show proved a lot beneficial to everyone watching it and everyone participating in it. The wisdom that the judges shared on stage, really went on to guide new entrepreneurs in their future crucial decisions. All this help for free? Not entirely!
The sharks aka the established entrepreneurs and trailblazers made their share of benefit on the show. They got the deserved visibility in the entire country and got some really cool investment opportunities to invest their money in. The capital that they gave out to the budding entrepreneurs, will help them realise their dream of creating value for society.
The sharks will be rewarded in terms of capital appreciation and the credit of supporting development in the country. Which is a win-win situation for everyone. These sorts of opportunities are rare and are known as Positive sum games, which are positive for either side. These judges stopped many losses and misfortunes just by guiding the pitchers on the platform of Shark Tank India. In the long term, they helped all the startups, even those startups which didn’t get funding.
FAQs
Which shark invested the most in Shark Tank India?
Aman Gupta has invested the most in Shark Tank India, which was estimated at Rs 9.35 crore in over 28 deals.
How much are the Sharks paid on Shark Tank India?
Each shark is paid differently, the payment ranged from Rs 5 lakh to Rs 10 lakh.
What is the concept of Shark Tank India?
The entrepreneurs pitch their ideas to the sharks and then sharks decide to invest in their startups or not.
What is equity in Shark Tank India?
The equity in Shark Tank India is referred to as the equity shares on which depend the percentage of the company owned by the founder or investor.
What was the Shark Tank India Season 1 Episode 15?
The Shark Tank India Season 1 Episode 15 was titled as “It’s Time To Change”.
How many pitches were heard in Shark Tank India Season 1?
There were 198 pitches heard in total in Shark Tank India Season 1.
Who are all sharks in Shark Tank India?
The judges are known as sharks in the business reality show, Shark Tank India. They are all CEOs, founders, and key executives of different businesses in India across domains. Peyush Bansal (Founder and CEO of Lenskart), Namita Thapar (CEO of Emcure Pharmaceuticals), Ashneer Grover (Founder and MD of BharatPe), Vineeta Singh (Co-founder and CEO of Sugar), Aman Gupta (Co-founder and CMO of Boat), Anupam Mittal (Founder of People Group), Ghazal Alagh (Co-founder of MamaEarth).
Ashneer Grover has turned out to be quite a famous name in the startup ecosystem and beyond it. Though Grover has been recognized popularly as the Co-founder and MD of Bharatpe, who has left the organization recently, the popularity of Grover is also due to the fact that he is a judging investor on the reality TV show “Shark Tank India”. The show is the Indian adaptation of Shark Tank, which was famous worldwide, originating from the west. The show offers a clear view of the natural attitudes of venture capitalists in the business world. Here, Ashneer is probably the most famous shark in the Indian adaptation of Shark Tank.
Ashneer is a straight face investor who just speaks when he can add value, but when he speaks, he is brutally honest and mostly rash with words. He is the human adaptation of the idiom, “When it rains, it pours”. Shark tank is one of the hottest shows right now.
Ashneer has also made a series of news and headlines for some other things at his organisation. The BharatPe founder has been in the headlines for multiple reasons. The board of directors and other key people are also in the limelight for some questioning. This article talks about the series of events that happened and the consequences which the events took.
A Little Brief about the Ashneer Grover Controversy
The headlines have been covering Ashneer and the company a lot recently. The news is that the Co-founder and MD of BharatPe, who has reportedly resigned from the organization that he founded, Ashneer Grover, had previously written to the board of directors to remove Suhail Sameer from the board. Suhail is a co-founder too and he is also the current Chief Executive Officer of the Fintech startup BharatPe. There has been a lot of ruckus around the company.
When Ashneer Grover went on a voluntary leave in January, Suhail was made in charge of operations at the headquarters located in New Delhi. Suhail was also promoted to the post of Chief Executive Officer in August last year. All of this ruckus started when Ashneer engaged in a controversial audio clip with a Kotak Mahindra bank employee where he abused him in an alleged call over the financing for the Nykaa IPO. His voice circulated all over social media and he was also criticized severely. Ashneer was eventually asked to take a voluntary leave of absence till the end of March along with his wife and some other Bharatpe employees, which eventually turned into a mandatory leave of absence. Besides, the news was also ripe that the board of directors is in an attempt to scrutinize the financial frauds that Ashneer, his wife, and some other employees, who are allegedly involved with the same and this might also see Ashneer and his wife out of the company along with the others.
He responded strongly to the matter. He was also individually and independently examined for his governance in the company.
According to Ashneer, he is being arm-twisted into venturing out from the startup he built along with Suhail. He also mentioned that he was the one who chose Suhail to be the key person in the company and now Suhail is siding with the board to expel him.
Ashneer also replied that if the company wants to expel him, he wants his worth out of the company. At a valuation of 6 billion dollars, the 9.5% of shares that Ashneer has stands at ₹4000 crores. If the company wants to buy him out, it needs to put his ₹4000 crores on the table, he explained.
The financial frauds updates dated February 23, 2022, that entangled Mr. and Mrs. Grover along with some other BharatPe employees states that Madhuri Jain Grover, the wife of Ashneer Grover, was fired by the Board of BharatPe due to alleged irregularities and has also cancelled the ESOPs vested with her. Though an official statement from the company is still pending, Madhuri’s termination has been confirmed by a spokesperson close to the matter. Fast forward to February 28, 2022, Ashneer Grover resigned from BharatPe with immediate effect following the termination of his wife. With his resignation, Grover also steps down from the positions of Co-founder and Managing Director. Ashneer was recently rejected an emergency arbitration plea, which he filed with the Singapore International Arbitration Centre (SIAC), who tossed out all the 5 pleas that Grover made and left him without a single relief.
“I write this with a heavy heart as today I am being forced to bid adieu to a company of which I am a founder. I say with my head held high that today this company stands as a leader in the fintech world,” writes Ashneer Grover.
Grover’s letter said time and again that he and his family had suffered continuous vilification, for which he had to finally resign. Meanwhile, BharatPe has claimed that the resignation letter of Ashneer Grover was dropped minutes after he received the agenda for a board meeting, which would also include a report submitted by PWC regarding the conduct of Grover, and considering actions on it, as per the reports dated March 1, 2022. However, Grover also claimed that though he is resigning he will still stand as “single largest individual shareholder of the company.”
Ashneer Grover Vs The Board of BharatPe
Ashneer was in the news with a lot of headlines. One of the headlines was the board of a company trying to remove him from the startup. In the initial stage, the board realised that the company funds are being mishandled or tampered with. This is why they decided to put Ashneer and Madhuri Grover and some other employees on a mandatory leave of absence. On further investigation and when other controversies surrounded the founders and a list of its other employees, the Board then wished to remove Ashneer and Madhuri from the company along with some other BharatPe executives. To this, Ashneer replied that he has done nothing wrong and the allegations that the board and the media posted were all wrong. “The allegations had no rhyme and no reason”, he reported.
He admitted that the culprit in the issue is not himself and he further admitted that Suhail was the person who had to be expelled from the company. He said that Suhail was choosing the side of the board of directors to remove Grover as a key person in the company. Suhail deserves to be expelled from BharatPe. It was also brought to notice that Ashneer was the person who believed and entrusted Suhail in managing the company.
According to Ashneer, he is being arm-twisted into leaving the company. Even then, he has no problem or issues in leaving the company but he wants the company to first payout his share.
He said that if the company wants me to step out, then he wants his share of 4000 crores on the table. He thinks that his time is too important to be stuck somewhere in internal politics. He wants to focus on building more and he is not in the retirement stage. This finally led to Ashneer Grover resigning BharatPe on February 28, 2022.
One might think that the issue is around Ashneer Grover and the company. In some sense, one might think that the whole topic is Ashneer Grover Vs. the Board of BharatPe. It is not wrong but it is also not completely true. As the fight of words started between the company and Grover, a string of issues were ignited. The fire also ignited other issues surrounding the whole company, BharatPe.
There were financial authorities asking for credibility in sources of revenue and accounting norms from the company. The company was being screened for corporate governance issues if any.
The flight of issues was such that the RBI had to be involved. The Reserve Bank of India is examining the company to check any discrepancies. RBI is checking if any Corporate Governance rules were violated. If they discover anything fishy about some rules being violated, the company can get a big shock. Along with the awaked goodwill, the RBI can stop future mergers of BharatPe with any other entity.
It was alleged that there existed some financial irregularities at the FinTech startup. The issues and allegations got unearthed very recently during the investigations by risk management authorities and other financial regulatory bodies. One of the most notable authorities in investigations is Alvarez and Marsal, a management and risk advisory firm. The firm had already declared that there were inconsistencies in billing in dealings with the vendors. Besides, Alvarez and Marsal also found that there were payments from the company to vendors whose identities are faked.
As per the latest update dated February 23, 2022, from the sources close to the matter, Ashneer Grover’s wife Madhuri Jain Grover, who headed the Controls of Bharatpe, has been fired on the grounds of financial misappropriation. The probe that was ongoing on behalf of the BharatPe Board stated that Madhuri had used the company funds to fund her personal travels, on skincare products, and to buy expensive electronics goods. Furthermore, the report also includes her alleged expenditure of the company money worth Rs 1 crore for her holiday travels.
Ashneer Grover and Kotak Bank Controversy
The ex-co-founder and managing director of BharatPe, Ashneer Grover stepped down from the daily operations in the company in January. This was followed by a voluntary turned mandatory leave of absence from the company until the end of March, which finally concluded in the resignation of Grover and a termination of his wife.
This was the time when he sparked a lot of controversies. One of the controversies was even a legal spat between Grover and Uday Kotak (Kotak founder).
The first time Grover started a controversy was the time when an audio file was leaked. Ashneer Grover was allegedly abusing a Kotak employee in the leaked audio file. That was the first instance when the cofounder at BhartPe sparked controversy and was quickly spotted on the headlines. Nothing has been proved yet but the news is out there reporting some blowing facts and figures. Grover however explained that all of that was fake.
The audio call headlines got more air when a legal notice surfaced on the news. The notice was from Grovers to Kotak and was dated November 30. This event further made the issue visible to the general public.
Both were seeking compensation claiming that Grovers decided to invest Rs 500 crores in Nykaa IPO through the bank’s IPO financing services. Grover claimed that the bank failed him in financing for the Nykaa IPO. Even then, he had no problem or issues in leaving the company but he first wanted the Board or somebody from the company to buy him out his share. The company at the present time stands at a valuation of $6 billion, as per Grover’s estimates. Ashneer says that he is happy to leave once he is paid his share of Rs 4000 crores. The board of directors is yet to reply to this statement. Moreover, Grover has hired three legal firms to be legally protected in these times. The cloud of allegations, which was hovering during the past couple of months was finally dissolved in the form of the resignation of Ashneer Grover, days after the termination of his wife by BharatPe Board.
Grovers and the Allegations Against Them
Investors at the FinTech firm BharatPe are not liking it with Grover and they are even mostly ready to give his payout to leave the company. As the issue moved further, Ashneer came to the sidelines and the company was in the front of headlines.
There was a preliminary investigation that was done by some external experts in the matter and they highlighted not just one but two big issues associated with the finance technological company.
The two allegedly fraudulent persons who are associated with the company are the Grovers – Ashneer Grover and Madhuri Grover (his wife) who made the cloud of allegations more strong. Madhuri, however, is linked in both the fraudulent issues found by investigators.
The report was helmed by Alvarez and Marsal, a management and risk advisory firm. The report was dated 24 January 2022, and was submitted to the BharatPe board. The Mint reported on 30th January, that the board had arrived at a decision to end the services of Grover based on the preliminary report submitted by Alvarez and Marsal, even as it had commissioned a comprehensive report.
Those two allegations that the company has pushed to Grovers were of financial wrongdoings. The two major grounds on which they were troubled were irregularities in retirement and other allegations were about non-existing vendors on the platform.
An examination of just two of the vendors pegged the amount paid by BharatPe for undelivered services at close to ₹4 crores. Grovers still maintains silence over all the allegations that point to them. The Grovers and BharatPe have not responded yet to the mentioned allegations.
Among all the headlines, Ashneer says that he is being arm-twisted into stepping down and he has done nothing wrong to the company and the society. He says that he is still the finest person to run the company. However, it is taken into notice that Ashneer has hired three legal firms to support him in a fight with the board of the company. He has hired Karanjawala, Ritin Rai and Meraki law to make himself legally prepared for any future proceedings.
A&M’s report found out that there were about Rs 51 crores that were paid to 30 vendors who were really non-existent. These payments and transactions were caught by the directorate general of GDT Intelligence or DGGU. The company on top of that also did not contest the demand for service tax, instead, they paid about Rs 11 crores in dues.
The primary investigation also found some irregularities in the workings of the company and the issue of non-existent vendors.
They found that this entailed an overall expense related to the 30 vendors of approximately Rs 53.25 crores (under validation). The company reversed the claimed input credit of 9.54 crore rupees and paid a penalty of 1.54 crores rupees. A&M has also recommended to the board that these issues require a much deeper investigation and analysis as to why the company was dealing with ‘non-existent vendors’ in the first place.
The top allegations that Ashneer Grover faced in the wake of 2022 are:
He was accused of using expletives against a Kotak Mahindra bank representative.
Grover allegedly was involved in turning the working culture of BharatPe toxic.
Both Grover and his wife, Madhuri Jain Grover, who was also the Head of Controls of BharatPe, participated in financial irregularities involving the funds of Bharatpe.
Ashneer Grover Lost an Arbitration He Filed Against the Probe
As soon as the Board of BharatPe started its investigation against Ashneer Grover, the Co-founder and MD of BharatPe, decided to rage against the same along with cementing his profits if an exit happens by wielding his stakes in the company. After Grover went on a two-month leave of absence, as decided by the Board, he quickly planned to file an arbitration plea with the Singapore International Arbitration Centre (SIAC), where he claimed here that the investigation of BharatPe against him was illegal. However, after the procession of the events, all pretty much against him, Grover lost his arbitration plea, as per the reports dated February 27, 2022, where sources close to the matter stated that the emergency arbitrator (EA) commented that in no ground the governance review at the fintech firm can be stopped.
According to the anonymous sources thorough with the matter, the emergency arbitrator (EA) has reportedly rejected all the five grounds via which Grover placed his appeal, thereby denying a single relief.
Grover had first pleaded about the preliminary investigation being invalid before the arbitrator. This is because, according to him, it violated the shareholder agreement and the articles of association, which is why he pleaded that the company can conduct any such investigation in no authority.
He was also of the opinion that all of the appointments for the independent audit of the internal processes and systems of the company were pleaded to be bad in law. Grover had further alleged that the members of the committee who will be reviewing the governance processes, including the CEO of BharatPe, Suhail Sameer, and the general counsel of the company, Sumeet Singh, are all biased Ashneer Grover also pleaded that the appointment of Suhail Sameer as a director should be suspended and that he should be “restrained from discharging any functions as director of the company”, in the plea, thereby seeking that no action should be taken against him. Grover further added in his plea that the company kept on with the review and assessment in spite of several representations/objections and this was not a transparent process that gave him any chance to present his case. However, all of these claims and his entire plea have been rejected recently by the EA because all the five grounds of relief that Grover gave, seemed to be unreliable. The emergency arbitrator reportedly mentioned that Bharatpe has acted according to the law and governance norms against Ashneer. Mr. Grover can now further challenge the order of the arbitrator before the Delhi High Court, as per sources.
The Resignation of Ashneer Grover
Ashneer Grover resigned from BharatPe and has also relinquished the posts of Co-founder and Managing Director of BharatPe on February 28, 2022, after he was recently notified of the rejection of his emergency plea by the Singapore International Arbitration Centre (SIAC) on all 5 grounds.
Here is a timeline of events to help you have a glimpse of the whole controversy involving Ashneer Grover, BharatPe and Kotak Bank:
Timeline
Events
January 5, 2022
Ashneer Grover’s audio clip with Kotak employee surfaced where he used profanities.
January 6, 2022
Grover declared that the audio clip is fake.
January 8, 2022
The audio clip was taken off from Twitter and SoundCloud and Ashneer Grover eventually deleted his tweet.
January 9, 2022
Reports came to limelight where Ashneer and Madhuri allegedly sent legal notice to Kotak. The bank further decided to press charges on him and Madhuri.
January 17, 2022
The emails exchanged between Ashneer Grover and Harshit Sehji, the MD of Sequoia Capital came into the limelight that dated back to August 2020. This purported that Grover is wanting to partially sell the shares in a secondary transaction
January 19, 2022
Ashneer Grover goes on a voluntary leave of absence
January 29, 2022
BharatPe board decided to onboard independent auditors to run a probe on the company’s practice under Ashneer Grover’s administration
January 30, 2022
Grover hoped to see an amicable resolution but he still hired a law firm to protect him and his stakes in the company.
February 4, 2022
The investigation conducted against the BharatPe co-founder, his wife and some other employees, linked Ashneer and Madhuri Grover with financial frauds. Ashneer Grover’s letter dated February 2, 2022, surfaced, which talked about the removal of Suhail Sameer from the Board.
February 10, 2022
Madhuri Jain Grover questions the leak the initial findings that name her in the Alvarez and Marsal report, with a letter to A&M.
February 11, 2022
CEO Suhail Sameer assures the BharatPe employees to trust the Board for the future proceedings.
February 22, 2022
Ashneer Grover attacks Rajnish Kumar, the Chairman of the BharatPe board, seeking protection against any future actions as part of the settlement process.
February 23, 2022
Ashneer Grover’s wife and the Head of Controls of BharatPe, Madhuri Jain Grover, was fired by the BharatPe Board due to misappropriation of funds, as per the independent audit led by Alvarez and Marsal.
February 27, 2022
Ashneer Grover’s emergency arbitration plea against the governance probe was rejected by SIAC.
February end
According to the reports, the key investors of BharatPe had turned down the Ashneer Grover offer of selling his stakes in the company for over Rs 4,000 crore.
February 28, 2022
Ashneer Grover resigned.
Conclusion
All these leaks here and there point to more and more issues in the bricks of this behemoth organisation. Further investigations are being carried out to get a more clear picture of the whole issue and the resulting consequences. Right now most reports have no rhythm and reason and investigations are continuing.
FAQs
Is Ashneer out of Shark Tank?
Ashneer has confirmed that his deals are not affected by the controversies.
Who is BharatPe CEO?
Suhail Sameer is the current CEO of BharatPe.
Is Ashneer Grover out of BharatPe?
No, the fintech startup has denied any rumours regarding the termination of the company’s co-founder, Ashneer Grover.
Shark Tank is a business reality show owned by ABC and is the no. 1 business reality show in the world. The concept of the game show involves ambitious entrepreneurs presenting their breakthrough business concepts to ruthless investors or “Sharks” to convince them to invest in the concept.
The most important part of Shark Tank is the panel, aka the ‘sharks’ who decide whether or not to invest in the ideas of the entrepreneurs. In the Indian version, Shark Tank India, we have the following sharks (Judges) in the panel:
Vineeta Singh – CEO & Co-founder of SUGAR Cosmetics
Ashneer Grover, Founder and MD of BharatPe
Peeyush Bansal – Founder & CEO of Lenskart.com
Namita Thapar – ED of Emcure Pharmaceuticals
Anupam Mittal – Founder and CEO of Shaadi.com
Ghazal Alagh – Co-founder and Cheif Mama of Mamaearth
Aman Gupta – Co-founder and CMO of BoAt
Some aspects that come to mind when someone says Shark Tank: grilling someone on the industry size, the market opportunity, the size of the niche market they want to target (if they are targeting a niche market), competitors, financial data on their competitors, how they got that data / how they arrive at the assumptions about their competitors etc.
On top of this, Sharks also want to get to know the entrepreneurs. There are a few episodes in the original Shark tank where the Sharks have walked away from a pitch not because the product was bad, but because they didn’t want to work with the investor.
On the flip side, there were also times when Sharks made offers not because they loved the product but because they believed in the entrepreneurs. We get a glimpse into some of the characteristics of these entrepreneurs but I’m sure they go more in-depth.
The first episode of Shark Tank India was aired on 20th Dec 2021 on Sony Liv. The panel for the first episode included Vineeta Singh, Ashneer Grover, Namita Thapar, Anupam Mittal, and Aman Gupta.
BharatPe MD and Co-founder Ashneer Grover, who is still one of the judges of the Indian version of Shark Tank, has been recently engaged in a financial fraud of BharatPe and is asked to be on a mandatory leave of absence. He and his wife Madhuri Jain Grover, who is also associated with this financial misconduct, has been on a leave of absence along with five others. BharatPe Co-founder and MD can also be fired from the company by the Board, as far as the reports dated January 29, 2022.
Products Featured in the First Episode of Shark Tank India
First Product: Blue Pine Foods Pvt. Ltd.
Blue Pine Foods
The Entrepreneurs:
Aditi Madan aka Momo Mami and the Co-Founders- Rohan Singh and Naveen Pawar.
The Ask:
₹50L for 5% equity
The Pitch:
Blue Pine Foods is a frozen momo company that makes 100% natural, preservative-free handcrafted momos using traditional Himalayan ingredients. The shelf life of the momos is over 4 months.
The Profits:
Made and sold over 80 Lakh momos through both B2B and QSR. Sales of ₹3.6 cr over the period of 5 years.
The Negotiation:
Ashneer did not wait too long before making the first offer of ₹50L for 7% equity with a warning that it was an exploding offer. Anupam pulled out saying he cannot make an offer that’s lower than Ashneer’s. Namita Thapar was the next one to pull out as she “cannot relate with the industry”. Vineeta offered ₹50L for 20%.
Together, Aman and Ashneer offered ₹50L for 12%, to which Aditi gave two counteroffers of ₹50L for 10% and ₹75L for 12%. Ashneer, Aman and Vineeta came together and made a tempting offer of ₹75L for 16% equity, which was happily accepted by Aditi.
The Deal:
₹75L for 16% Equity
Second Product: Booz Scooters
Booz Scooters
The Entrepreneur:
Rutvij Dasadia
The Ask:
₹40L for 15% equity
The Pitch:
Booz is South Asia’s first App-based electric scooter operator that serves at business parks, Commercial parks, residential areas, industrial areas, educational campuses, tourist spots, clubs, resorts and other such confined premises by offering electric kick scooters on rental.
Charging stations, installations, daily maintenance, charging plugins and plug outs are offered at monthly subscription. The vision of Booz is to eliminate fuel vehicles at these places and make premises more pollution-free and add leisure experience to recreational spots.
The Profits:
Last Year the business got revenue of 4 Lakhs.
The Negotiation:
Anupam pulled out immediately after giving a brutal statement that he doesn’t see any value in it. Namita, once again, pulled out as she doesn’t “relate to the product” and because the product did not excite her on a personal level. Vineetha and Ashneer came together and made an aggressive offer of ₹40L for 50% Equity. Rutvij countered the offer with an offer of 40L for 33% Equity but Ashneer stood his ground till the founder finally caved.
The Deal:
₹40L for 50% Equity
Third Product: Heart up my sleeves
Heart up my Sleeves
The Entrepreneur:
Riya Khatter
The Ask:
₹25L for 10% equity
The Pitch:
It’s a unique brand that makes detachable statement sleeves. The sleeves are reusable, sustainable and you can style them in different ways.
The Profits:
Sales of ₹11.6L in 9 months. Last month’s sales were ₹1.96l.
The Negotiation:
Aman and Namita did not think twice before pulling out as they did not see potential in the product. Anupam and Vineeta swooped in to grab the opportunity, and an offer of ₹25L for 40% equity was placed on the table. The 23-year-old entrepreneur countered it with an offer of ₹25L for 30% equity which the sharks couldn’t say no to because of her beautiful pitch.
The Deal:
₹25L for 30%
Review of the First Episode of Shark Tank India
The investors faced a lot of backlashes after the show was aired. But there were a lot of people that found nothing wrong with the actions of the investors. The controversy can be summed up with the help of the post and the comment below:
Shashikant Chaudhary, an angel investor posted the following on LinkedIn:
“I was really very excited to watch the first season of Shark Tank India – both as a viewer and as an angel investor. This show promises a platform for entrepreneurs from tier 2 and tier 3 cities to take their business to the next level. Crucially, this show is also going to double as educational for millions of people as it reveals things about business and funding.
It is in this context that I found the way sharks were making an offer to entrepreneurs by asking for a 40-50% stake in the company for 25-50 lacs uncomfortable to watch.
As an angel investor myself and instructor of an entrepreneurship course, I feel, If an entrepreneur is giving up 30-50% of the company in a single round, by the end of the third or fourth round of investment, the founding team will be at less than 15-20% stake. There would be very little incentive for founders to work for such a low equity stake. In the end, he/she would leave the company.
I know it can be argued that the sharks are doing their best by getting the best deal for them personally but I also feel that this is a tricky message for the startup community (especially those not well-versed with technicalities of the impact of giving away too much stake in a single round). I wish people watching the show somehow also know that this is the kind of offer that is detrimental to the founder in the long run.”
And the top comment by Paresh Masade, Founder of Vaave (Coherendz India Private Limited) read:
“Isn’t the very notion of “Shark” in a tank wrong, they are supposed to be “Angel” investors. You have been a mentor, guide, advisor and well-wisher, not even close to being a shark.
My views on the shark tank differ a bit, it is designed to be a TV show and to entertain the audience. They resemble more of the WWF matches, very glamourous and sexy, nothing real. I may be wrong here, but many of the seasoned angel investors I have seen, understand very well that it’s the entrepreneur who is in the driver’s seat!”
The original shark tank created a huge fan base for itself across the globe over the past 13 years. The Indian show definitely shows a lot of potential for creating a massive loyal fanbase as well. It is amazing to see the spirit of the young entrepreneurs and supportive seniors on Indian television. Hopefully, the show will bring a new wave of ideas and entrepreneurs to the country.
You can watch the episodes of Shark Tank India live on SonyLIV or Sony TV. With new episodes coming out from Monday to Friday at 9 PM on the designated platform.
FAQ
Who are the judges in Shark Tank India?
Vineeta Singh, Ashneer Grover, Namita Thapar, Anupam Mittal and Aman Gupta, Ghazal Alagh, and Peeyush Bansal are the judges in Shark Tank India.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Hair Originals.
Shark Tank has been making some noise in the country and in the business industry since it was announced in the year 2021. Originally released in December 2021, the Indian version of Shark Tank America has quickly grown to be one of the favorites of Indian startups, businesses, entrepreneurs, and other working professionals and individuals. Yes, we now get the opportunity to witness the Indian version of the most anticipated business reality show in the world. Naturally, when it started telecasting on Sony Television Channel, it created hype amongst the youth, and especially the young entrepreneurs.
For those who are not aware of what Shark Tank is, it is a business reality show where entrepreneurs get funds from the investors, who are judging the business models presented by them if they like their business models. These investors are some of the biggest and most successful business people out there.
If you are wondering why we are suddenly discussing Shark Tank India, then it is to introduce Hair Originals, a Gurugram-based premium natural hair extension products, and services company. The company has recently been famous as a brand recognized by Shark Tank India, where it also received funding.
Here’s more about HairOriginals, its Funding and Investors, Founders and Team, Growth, Future Plans, and more.
January 25, 2022 – Hair Originals raises $30 mn in the pre-Seed funding round, where the company received funds from angel investments that came from marquee investors. After its success with the global B2B model, the company has now launched its D2C online platform.
About Hair Originals
Before Shark Tank, Hair Originals have already spread their word across the world. With intricate customer market research and manufacturing excellence, Hair Originals Founder and CEO, Jitendra Sharma achieved something exceptional. They created a range of premium hair extensions and participated in the prestigious World Hair Congress in France. Famous hairstylist, Eric Maurice appreciated their work and fell in love with it. He decided to become the brand ambassador of Hair Originals in no time.
The popularity of their hair extensions has now leapt all bounds. The products are now exported to luxury salons in 22 countries. The company reigned in the B2B sector by partnering with top luxury salons. There was a need for a customer-centric solution and a considerable demand for top-quality natural hair extensions. HairOriginals launched a Direct-To-Consumer platform that sells high-quality hair extensions at affordable rates. Mr. Jitendra Sharma set fair pricing and made HairOriginals, one of India’s top hair extensions brands.
What makes HairOriginals Different from Other Brands?
Starting from the luxurious market of Paris, HairOriginals became a popular hair extensions brand. Apart from the loyal customers, the company ties up with salon partners across the world. These salon partners provide free hair extension installation for the customers. HairOriginals is the official partner of prestigious hair training academies like Schwarzkopf and L’oreal. It is an official partner of Helder Marucci Master Class, a famous Brazilian stylist. There’s no doubt that 100% Remi Indian hair is amongst the most premium hair. By keeping this in mind, HairOriginals procures top-quality human hair from some south Indian temples. It ensures the best quality. They do not use any chemicals to process the hair.
Along with quality, price plays a crucial role. It decides whether the hair extensions are worth buying or not. Existing brands were producing substandard hair extensions. As there was no competition back then, Mr. Sharma saw the market monopoly. The brands charge 2 to 3 times more from the customers. Their hair extensions were also of substandard quality. HairOriginals make their hair extensions with natural virgin Remi Indian hair known for its rich texture. It offers the best flexibility and freedom to color, style, and maintain.
Hair Originals In Shark Tank
India has always been one step ahead when it comes to taking natural ayurvedic care of hair. Indian hair is most sought-after by the cosmetic industry worldwide. It has a rich texture that is necessary for the best hair extensions. It won’t look like a big deal for a layman but Jitendra Sharma found a goldmine sitting there right in the open. HairOriginals & Shark Tank -two names are now lingering on the tongues of the masses. Mr. Jitendra Sharma jumped right into the battle of procuring natural hair strands. He soon emerged as a forerunner in the industry. And now he and his venture HairOriginal got featured in the latest edition of Shark Tank India.
Hair Originals – Founder and Team
HairOriginals Founder – Mr. Jitendra Sharma
Jitendra Sharma
Mr. Jitendra Sharma is the founder and CEO of HairOriginals. His recent feature in Shark Tank has got all the people and media outlets talking about him and his venture. It raised the eyebrows of the sharks and got them intrigued with the sheer vision. As a 2008 IIT Delhi Alumni, Sharma has always pursued excellence. Jitendra Sharma has a dual degree in Chemical Engineering from IIT Delhi and has worked 11 years as a Precom Leader at TotalEnergies before founding Hairoriginals in September 2019. His 11 years of experience in the oil industry and exposure to global cultures helped him. He discovered India’s unorganized hair extension market and saw infinite opportunities.
The company had another founder, Ashish Tiwari, who split up with Jitendra Sharma and stepped down from the Co-founder position, thereby leaving the company in December 2021. Tiwari left the company to co-found HairForever.
HairOriginals nurtures a well-knit team of experienced in-house stylists that stand out with their industry-leading craftsmanship. Therefore, both the hair products and services of Hair Originals are of superior quality.
Hair Originals – Startup Story and its Journey to Shark Tank
Shark Tank shows have been a great success in their many overseas counterparts. This craze has now come to India and has become the talk of the town. The show consists of entrepreneurs who present their ventures to a group of investors called sharks. These sharks are some of India’s most celebrated entrepreneurs and industry leaders. They have been there and done that. Most of the sharks have built their own ventures from scratch and know what it takes to be a successful entrepreneur. Mr. Sharma got an offer to present their venture HairOriginals on the Shark Tank India show. He elaborated on how his company can revolutionize the fashion industry. No wonder he got attractive investment offers from all the sharks. They closed a pre-seed round which they will use for more intricate market research and faster growth. They also have an eye on pre-series A rounds. It will give a push to their partner salon programs and Direct-To-Consumer platform.
Hair Originals – Funding and Investors
HairOriginals has raised funding worth Rs 3 crore in its pre-Seed funding round via angel investments from marquee investors on January 25, 2022. This is the second funding that the company received after it was initially funded in the popular business reality show, Shark Tank India. The funding that the startup received is presently being channeled towards AR technologies. This will benefit real-time product experience before purchase, workforce expansion, and other back-end developments.
Hair Originals – Growth
The Hair Originals line of products is made from ethically acquired human hair. This has empowered and is empowering the women from various cities of India working in this particular segment. The products of Hairoriginals have been exhibited in multiple international events and exported across 22 countries including the top luxury salons of the US, Europe, and Africa.
The Hair Original products were also positioned in the luxury segment, where it received numerous positive remarks from fashion critics at the World Hair Congress in France. Eric Maurice, a renowned celebrity stylist from France has come onboard to be the brand ambassador of Hair Originals.
Hair Original boasts of being the global leader in processing and delivering 100% Natural Hair Extensions, which is made from virgin Indian remy (scalp sourced) hair with a huge number of consumers across the globe. Besides, numerous internationally renowned celebrity hair-stylists like Latil Pascal and Laurent Voicinet use Hair Original products for their shows.
The global positive feedback that Hairoriginals receive from its customers across the globe and the support that it gets from its investors is the driving force in the expansion of its business.
Hair Originals – Future Plans
Before knowing what the future of hair extensions is, a little peek in history will amaze you. Hair extensions were used by women for thousands of years. There are some historic mentions that Egyptian queen Cleopatra who ruled the Ptolemaic Kingdom of Egypt from 51 to 30 BC, used to wear hair extensions.
It wouldn’t be exaggerating to say that under the leadership of Mr. Jitendra Sharma, HairOriginals will reach the heights of success. The latest Shark Tank investment round will fuel their growth. It will also help them to put themselves on a global map. The company intends to expand its horizons by partnering with more high-end salons across the top countries. It will catapult its customer-facing platform to pull more customers. There’s no doubt that HairOriginals will change how people use hair extensions. Founder Jitendra Sharma knows that his company will revolutionize the global fashion industry. He has great confidence in the wide range of hair textures, colors, and lengths their hair extensions provide.
With the launch of the D2C platform of Hair Originals, the goal of the company now is to make its premium products affordable for everyone. This the company aims to make feasible by cutting the cost of the middlemen. The founder and CEO, Jitendra Sharma said, “in the upcoming 2 to 2.5 years, our aim is to achieve a target of 100 Cr ARR.”
Conclusion
The rapidly growing fashion industry shows great potential for hair extensions. Fashion models, as well as top celebrities, use hair extensions. They are used by top hair stylists for music videos, fashion shows, movies, and whatnot. With such great exposure and need, it would be safe to say that hair extension are here to stay. They provide different installation types that only maximize their versatility. The Shark Tank investment round will give them the needed boost and global exposure. It will ease their growth and help them connect to a massive network of investors. It will play a crucial role in their growth.
Ankit Kedia is the Founder of Capital A, a new-age venture capital firm for early-stage startups in India. He launched the fund formally in 2021 after having spent the last 14 years as a second-generation entrepreneur in his family business – Manjushree Technopack Limited. Ankit has been angel investing since 2017 and Capital A is the formalization of this passion and his USP as an angel investor turned VC. He comes with a rich operating experience across the B2B space including in verticals like manufacturing, supply chain, healthcare, MedTech, fintech, and others.
At Capital A, the team is on a mission to back meaningful startups and founders looking for smart capital instead of just going after the valuation frenzy. They have also backed consumer startups with a solid product-market fit and impact. Their focus is on highly promising Indian startups across different industries and it has made 20+ investments over the last six months of its existence.
The following is an excerpt of the interview with Mr. Ankit Kedia, Founder & Lead Investor, Capital-A.
1. How was the year 2021 for you as an investor/VC?
The year 2021 was a solid one for investors. We saw an incredible amount of VC Capital being deployed across a highly diversified group of sectors. As far as Capital A is concerned, this was our maiden year and we have invested in over 20 early-stage startups across different sectors and have more in the pipeline for 2022.
2. How often do you bet on the entrepreneurs and not on the ideas? And when/if you do that, what quality of the entrepreneur usually makes you do that?
Given that we are an early-stage focused VC fund, we always end up in a dichotomy of choice between the founder and their idea. There is no binary answer for this. We have made bets on founders who are fresh out of college but come with great execution capability and zero experience. We have also backed seasoned professionals beginning their start-up journey after 10+ years of industrial experience.
Typically, we look for founders who have absolute clarity in their ideas and basic commercial acumen. If both these qualities exist in them, it is easier to assess the business. This is because we are assured that the founder knows their territory well. While an educational qualification from top business schools and engineering institutes is good, we have never used this as a prerequisite for evaluating investment opportunities.
3. What is a warning sign for you when investing in a startup?
If the founder keeps wavering on his/her product idea and wants to pivot even before having secured seed funding, it usually is a red flag. Another aspect that we carefully evaluate is the future-proofing of the business model in terms of technology and scalability. If either of these isn’t likely to exist in the next 5 years, we tend to hold off any further discussions.
4. What are some common biases you find in the Indian Startup ecosystem?
While investing, many VC founders are most likely to pursue the crème de la crème from IITs and IIMs who they feel are capable of executing and scaling up to large businesses. In my view, we need to look beyond this bias and consider those from the non-premier institutes as well to democratize the startup ecosystem. Another bias which many early-stage investors have is that they tend to back founders and startups with other bluechip angels or VCs as their investors. While this is a good background, it displays the lack of understanding and belief of the incoming investors. It also displays a piggyback approach towards investing. Although we also consider such startups, only a small percentage of our fund is reserved for Series-B investment.
5. What are your views on the Shark Tank India Episodes until now?
The Shark Tank show on Sony TV is an incredible start and will be a great way to get more and more entrepreneurs into the startup ecosystem. I love the section in which the sharks explain various VC jargon to viewers. From an investor’s point of view, I would like the producers to tighten the quality of startups pitching to the sharks and not just select those who are vying for publicity on national TV.
6. We are seeing many startups exiting with IPO, what’s your opinion on that? How is it going to change the ecosystem?
India’s startup sector has seen a record number of IPOs in 2021. The reason is quite simple. There is a lot of pent-up appetite for investment amongst global investors. Many companies are also looking at leveraging the stock markets that are bullish about a strong recovery from the pandemic to fund their expansion plans and achieve financial security. The ecosystem will see an enormous amount of global capital being poured into the startup space in India. The pandemic-induced lockdown led to a record high adoption of digital technology, thereby helping startups fuel their growth. There is a renewed confidence amongst the investors and IPOs will become a realistic exit option for investors.
7. More than 42 unicorns in 2021. What do you think caused this wave? Is the valuation justified according to you?
India stands among the top 3 countries (behind US and China) witnessing a surge of unicorns. This surge can be explained by the massive interest from global investors aspiring to secure their territories within the Indian startup ecosystem. Some innovative startups amongst the unicorns including Zetwerk and Apna which made it to the list due to their offerings. There are a few unicorns that commanded ridiculous valuations. In my opinion, they were just fortunate to be in the right place at the right time.
8. How can we support/ enable entrepreneurs in tier2 and tier 3 cities?
Tier-2 and Tier-3 cities have very innovative founders and business ideas. However, they sometimes lack the right connect, platforms, incubators, or accelerator programs to bring them to the forefront. In fact, many founders focus on solving problems specific to Tier 2 and 3 towns which could be a very big gap in the market. In my opinion, VCs should identify the right venture partners to find out these hidden gems and also actively partner with academic institutions to develop student interest in the startup ecosystem.
9. What do you look forward to as an investor in the year 2022?
The year 2022 will be similar to 2021 or even better as startups continue to attract capital from both private and public markets. The year 2021 saw one of the highest investments both from PE as well as VCs with many startups also going to the capital markets. The IPO frenzy has injected a lot of confidence among investors and startups will continue to benefit from the pent-up demand from 2020.
10. What are a few sectors you think would be hot in the upcoming year?
Sectors like EV, e-Commerce, logistics, and even fintech will continue to be the flavor of the seasons amongst the VCs.
11. One learning that you would like to share with founders who are looking to raise funds?
One of the most common challenges that we face with founders looking for capital today is that they underplay their equity without understanding how valuations and captable work. The founders end up giving a lot of equity to investors who barely bring value to the table other than wanting to spray and pray. Any founder looking for early-stage smart capital must be equally selective about their investors as much as the latter cherry-picks investment opportunities.
Another challenge many founders are facing today is around individual investors on the captable who become extremely specific about their exits. In some cases, we have also seen their rigidity to sign on SHAs as they are entitled to the same rights as major investors. My advice to founders is that while your friends and family are one of the earliest believers in your ideas, it is very important to anticipate future rounds and draft agreements in the interest of your organization, and not the investors. Sometimes, the fundraising process can become very overwhelming, and hence, it is important to create a healthy mix of advisors, investment bankers and leverage early investors as your mascots for the same.
Damini Bhandary
