Shark Tank India has sparked widespread enthusiasm and interest in entrepreneurship across generations. Its impact on the entrepreneurial ecosystem in India is unparalleled, offering viewers a chance to become venture capitalists from their living rooms. The show has introduced a strategic shift for businesses, especially in Tier-2 and Tier-3 cities, towards external funding sources like venture capital (VC), moving beyond the traditional reliance on business loans prevalent in Indian family businesses.
At Dezerv, our passion for data and performance led us to analyse each of the 157 pitches from this season, mining insights to shed light on this national phenomenon. Here are a few standout insights from our analysis:
| Metric | Value |
| Total Pitches | 157 |
| Founders | 298 |
| Sharks | 11 |
| Pitches with Offers | 58.6% |
| Average Valuation for Royalty Deals | INR 59 crore |
| Average Valuation for Non-Royalty Deals | INR 28 crore |
| Average Equity Offered | 2.7% |
| Average Equity Taken | 4.6% |
| Average Sacrifice in Valuation | ~40% |
| Founder Gender Split | 70% Male, 30% Female |
| Founders’ Relationship | 32% Friends/Colleagues, 31% Solo Founders, 16% Husband-Wife |
| Top States for Pitches | Maharashtra (37), NCR (22), Karnataka (21) |
Key Insights
- Deal Structure and Preferences:
- High Deal Acceptance: 58.6% of pitches received an offer, showcasing a favourable environment for budding entrepreneurs.
- Preferred Deal Types: The most common deal structure was pure equity, accounting for 54.3% of deals, followed by equity plus debt (22%) and equity plus royalty (18%).
- Shark Participation:
- Multiple Sharks Involved: Unlike its US counterpart, 57% of successful deals involved multiple sharks, indicating a preference for risk-sharing among investors. Solo shark deals comprised 43% of the total.
- Top Sharks: Aman Gupta (36 deals) and Ritesh Agarwal (26 deals) were the most active investors, focusing on sectors like Tech & AI, Health and Wellness, and F&B.
- Valuation and Equity:
- Valuation Trends: The average valuation for royalty deals was INR 59 crore, while non-royalty deals had a much higher average valuation of INR 228 crore. For valuations exceeding INR 100 crore, royalty-based structures were common, reflecting a risk-managed approach by the sharks.
- Equity Dynamics: On average, companies had to sacrifice about 40% of their valuation to secure a deal. The average equity offered was 2.7%, while the average equity taken was 4.6%.
- Founder Demographics:
- Gender Split: Only 30% of founders were women, highlighting a significant gender gap. However, it’s notable that out of all unsuccessful pitches, only one was from a single-woman founder compared to 13 unsuccessful pitches with male founders.
- Geographical Diversity: Founders represented nearly 23 states, showcasing the show’s role in promoting diversity and inclusivity in entrepreneurship across India.
- Emerging Sectors:
- Tech & AI: There was a notable increase in pitches from the Tech & AI sector, rising from 14 in Season 2 to 26 in Season 3, making up 17% of the pitches.
- Environment & Sustainability: This season also saw 8% of pitches from the Environment and Sustainability sector, reflecting a growing focus on eco-friendly businesses. An entire episode was dedicated to ecopreneurs.
Detailed Insights
- Number of Deals Made by Top Sharks and Their Preferred Industries:
- Aman Gupta: 36 deals, focusing on Tech & AI, Health and Wellness.
- Ritesh Agarwal: 26 deals, focusing on Tech & AI, F&B.
- Vineeta Singh: 25 deals focusing on fashion and F&B.
- Namita Thapar: 23 deals, focusing on Health and Wellness, Pharmaceuticals.
- Anupam Mittal: 23 deals, focusing on Health and Wellness, F&B.
- Deal Dynamics:
- Solo vs. Multiple Sharks: 43% were solo shark deals, while 57% involved multiple sharks, indicating a collaborative investment approach.
- Valuation Adjustments: On average, companies had to sacrifice about 40% of their valuation to secure deals, with the average equity taken being 4.6%.
- Gender and Relationships:
- Gender Split: 70% of the founders were male, and 30% were female. Among unsuccessful pitches, there was a notable gender disparity, with only one single-woman founder being unsuccessful compared to 13 single-male founders.
- Founders’ Relationships: 32% of founders were friends or colleagues, 31% were solo founders, and 16% were husband-wife teams. Interestingly, 28% of founders were related to each other, challenging the notion that business and family should not mix.
- Geographical Spread:
- State Representation: Founders came from almost 23 states, with more than half of the pitches originating from Maharashtra (37), NCR (22), and Karnataka (21).
- Emerging Sectors:
- Technology & AI: 17% of pitches were from the Tech sector, an increase from 14 pitches in Season 2 to 26 in Season 3.
- Environment & Sustainability: 8% of pitches focused on eco-friendly businesses, reflecting a growing trend towards sustainability
Reflecting on Season 3
Shark Tank India Season 3 was a remarkable showcase of entrepreneurial talent and innovation. The show provided funding opportunities and highlighted the strategic value of external investments. Shark Tank India has significantly contributed to the entrepreneurial landscape by bringing diverse founders and innovative ideas to the forefront.
Dezerv’s Involvement
Our fascination with the show led us to launch our first TV commercial during its airing, underscoring its immense reach and impact. It’s incredible to witness a reality show rivalling the popularity of major sporting events, emphasising the power of great content and a passionate audience. As we eagerly anticipate Season 4, we look forward to more groundbreaking pitches and inspiring entrepreneurial journeys.
Conclusion
Shark Tank India Season 3 has set a high bar, and its impact on the entrepreneurial ecosystem is undeniable. From promoting diverse startups to encouraging strategic funding, the show has transformed how Indians view and engage with entrepreneurship. At Dezerv, we celebrate this spirit of innovation and look forward to supporting more entrepreneurs in their journey to success.
Happy devouring, and here’s to more inspiring seasons of Shark Tank India! 🦈
Disclaimer:
The information contained herein is for informational purposes and should not be interpreted as soliciting, advertising, or providing any advice.