In a recent episode of Shark Tank India’s third season, the entrepreneurs behind EatVerse, a multi-brand cloud kitchen situated in Kolkata, surprised the panel by proposing Rs 1 crore for a mere one percent share of their company.
Although they have established a solid presence in Kolkata, the founders revealed their ambition to expand across India. Anupam Mittal, one of the judges, questioned the feasibility of their aspirations, describing the food industry they operate in as vast and challenging to scale beyond a certain threshold.
Anupam Mittal said, “The industry you are talking about, food delivery, cloud kitchen, this is a sub-industry. On top of it are two giants- Swiggy and Zomato. They are the gatekeepers. Your margin will be built by two things, either they let you make, but they are not doing charity. Or else, customers are jumping to come and eat your food unless there is proof of this. You won’t grow beyond 5-6 percent”.
Mittal further expressed his worries about the strong presence of industry giants such as Swiggy and Zomato, as well as the absence of solid customer validation for their food. Mittal characterized their plan for nationwide expansion as excessively risky and opted not to extend an offer.
He added, “You are a little lost. I think you can scale your business up to Rs 30-40 crore, but beyond that going into a new geography is a huge risk. You have not gone there yet and to go now with Rs 1 crore, it’s suicide. And that’s the reason I am out”. With this, the pitchers returned without any deal.
About Shark Tank Season 3
Shark Tank India Season 3 premiered on January 22, 2024, with familiar sharks Namita Thapar, Aman Gupta, Peyush Bansal, Anupam Mittal, and Vineeta Singh returning alongside new panelists Amit Jain, Ritesh Agarwal, Azhar Iqubal, and Radhika Gupta. Film producer Ronnie Screwvala also joined the show.
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