Shark Tank India Fails to Meet Investment Pledges: New Analysis Reveals
The Indian edition of Shark Tank, which premiered over a year ago, is facing criticism as a recent analysis indicates that the renowned investors on the show fell short on their investment commitments, raising concerns among entrepreneurs.
According to market intelligence firm PrivateCircle, the "sharks" only followed through on 27 out of 65 investment pledges featured on the TV show. While they had committed $4.87 million to various startups, as of last week, they had actually invested only around $2 million. The analysis, based on a review of corporate filings, didn't include debt investments.
The situation appears even more worrisome for the show's second season, which concluded in March of this year. Despite the panel of sharks promising 115 deals during the season, only one investment has been officially disclosed to the local ministry.
To be fair, certain factors need to be taken into account. Some of the investments may still be undergoing due diligence, and technical glitches on the ministry's website might explain the limited disclosure figures.
Sony Network India, the broadcaster of Shark Tank in India, declined to comment on the matter.
Sumanjan Kumar, Lead Financial Analyst at PrivateCircle, stated, "Our findings show that some deals committed on the show may have fallen through due to concerns in company due diligence. Additionally, some startups seem to have declined the Shark Tank deal to raise funding at higher valuations from other investors."
The show has faced ongoing criticism, despite Sony estimating that it has reached over 250 million viewers. Recently, some startups that appeared on Shark Tank India have expressed dissatisfaction, claiming that investors ghosted them after promising deals on television.
Anupam Mittal, an investor on Shark Tank India and the founder of Shaadi.com, defended the show in a LinkedIn post. He asserted that 66% of the deals presented during the show's inaugural season were successfully executed, surpassing the figures of its U.S. counterpart. He also mentioned that most deals take three to six months to materialize.
Another investor on the show, Aman Gupta, co-founder of the consumer electronics brand Boat, also stood up for the show. Gupta stated that many entrepreneurs prefer to negotiate investment deals or decline them entirely after the telecast.
PrivateCircle's analysis corroborated this claim, noting that at least six startups declined their Shark Tank deals and opted to seek funding from a different set of investors at higher valuations.
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