In a recent episode of Shark Tank India 3, an ex-Army officer presented his business idea to the sharks, seeking Rs 80 lakh for a 2% equity stake. He disclosed his current focus on selling military tactical gear such as combat shirts, cargo pants, and T-shirts to Army officers, with plans to expand into the B2C market, sparking interest from Aman Gupta and Anupam Mittal.
The ex-officer candidly acknowledged his intention to utilize the Shark Tank India platform for both publicity and fundraising. Clearly impressed, Aman remarked, “What you’ve said just now, so many people come here and lie about. That’s the Army honesty in you.”
The Army officer disclosed that he expects to close the year with Rs 8.5 crore in sales, prompting Aman to question why he sought a valuation of Rs 40 crore. Namita then opted out of the deal, saying, “Your business isn’t investable, and I’ll tell you why. It’ll be difficult for an investor to join you because you can’t scale this up, and we will not get an exit. And this camouflage print is a very commonly available product. They’re widely available on Amazon and Flipkart. But huge respect for who you are and what you’ve done.”
Despite Aman voicing his concerns, he still extended an offer, albeit valuing the business at only Rs 2 crore, significantly lower than the requested Rs 40 crore.
The pitcher seemed offended by this and responded, “The sort of valuation you’ve offered me, if we were not on this platform, I wouldn’t have even entertained. I don’t want to sound rude, because it’s difficult to understand the nitty-gritties of a business in such a short time. But right now, I’m getting an order for Rs 8 crore, which I’ll execute in three months.”
Aman adjusted his offer, proposing a valuation of Rs 15 crore, expressing, “I believe there’s considerable potential for virality in this relatively new space, which is the risk I’m willing to take.”
In response, the founder chuckled at Aman’s rationale, remarking, “At Rs 15 crore, there’s hardly any risk involved, I can assure you of that”. He then added, “Perhaps I’ve taken this personally. Maybe I’m interpreting this as the value you’re assigning to me.”
Vineeta attempted to clarify, stating, “No, sir. We’re solely focused on maximizing our returns. This valuation doesn’t reflect on you personally.” Aman then turned to Amit Jain, inquiring if he would join the offer, and together they proposed Rs 40 lakh for 2% equity, along with an additional Rs 40 lakh in debt at 12% interest for two years.