An analysis by market intelligence firm PrivateCircle has revealed that the investors, known as “sharks,” on the Indian edition of Shark Tank fulfilled less than half of their investment commitments made during the show’s inaugural season. Out of the 65 investment pledges showcased on the TV program, the sharks ultimately invested in only 27 startups. As of last week, corporate filings indicated that the total investment committed amounted to $4.87 million, but the investors had only invested around $2 million.
Shark Tank Second Season Outlook and Disclosure Issues
The situation appears even more uncertain for the second season of Shark Tank India, which concluded in March of this year. The panel of sharks promised 115 deals during the season, but the local ministry has officially disclosed only one investment.
However, some clarifications are needed. It is possible that several investments are still undergoing due diligence processes. Additionally, technical glitches on the ministry’s website could be contributing to the limited disclosure figures.
Insights from PrivateCircle’s Analysis
PrivateCircle’s Lead Financial Analyst, Sumanjan Kumar, explained that some deals may have fallen through due to concerns in company due diligence. Additionally, some startups may have opted to decline the Shark Tank deal and raise funding from other investors at higher valuations. These factors could account for the discrepancies between investment pledges and actual investments.
Shark Tank Reception and Criticisms
Shark Tank India, aired by Sony Network India, is estimated to have reached over 250 million viewers. However, the show has faced criticism from startups that appeared on the program, with some claiming that investors ghosted them after promising deals on TV.
Anupam Mittal, an investor on Shark Tank India and the founder of Shaadi.com, defended the show in a recent LinkedIn post. He emphasized that the show’s inaugural season successfully executed 66% of the deals, surpassing the U.S. counterpart. He also noted that most deals typically take three to six months to materialize.
Investors’ Perspectives and Entrepreneurs’ Choices
Another investor on Shark Tank India, Aman Gupta, co-founder of the consumer electronics brand Boat, supported the show and stated that many entrepreneurs prefer to negotiate investment deals or decline them altogether after the telecast.
PrivateCircle’s analysis supported this perspective, identifying at least six startups that opted not to pursue their Shark Tank deals and instead secured funding from different investors at higher valuations. This showcases that the decision-making process for entrepreneurs extends beyond the TV show, allowing them to make strategic choices based on their specific business needs and opportunities.
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