Shark Tank India Season 5: Entrepreneur's Rs 150 Crore Valuation Sparks Shark Fury
The latest episode of Shark Tank India Season 5 delivered high drama as an entrepreneur from Delhi faced intense scrutiny over his company's valuation, ultimately walking away without a deal despite having a product that impressed all the sharks.
The Pitch That Started With Promise
Angad Soni entered the tank with Sepoy and Co, a company specializing in premium mixers. Presenting before sharks Kunal Bahl, Anupam Mittal, Aman Gupta, Mohit Yadav, and Namita Thapar, he sought an investment of Rs 3 crore for a 2 percent equity stake, valuing his company at a staggering Rs 150 crore.
Initially, the sharks responded positively. They praised the product's quality, branding, packaging, and bottle design. Angad revealed his background in a family business that manufactures components for tractors and construction machines—a listed company valued at approximately Rs 2,000 crore. Despite this impressive lineage, his own venture's numbers quickly became the focal point of contention.
Valuation Questions Lead to Shark Skepticism
As the sharks delved deeper, Angad disclosed that Sepoy and Co made its first sale in 2018 and is projected to achieve around Rs 20 crore in business this year. He also confirmed that he had not raised any external funding prior to the pitch.
Complications arose when discussing the bottling plant. Angad admitted he oversees this operation separately, though it wasn't part of the business he was pitching. Anupam Mittal immediately raised concerns, stating that investing in Sepoy and Co without a stake in the bottling plant would cause him "sleepless nights" due to the close operational ties between the two entities.
Kunal Bahl inquired if Angad would consider merging the companies. While Angad expressed openness to the idea, he wasn't prepared to negotiate such a merger on the spot, further heightening the sharks' apprehensions.
The Breaking Point: Clash Over Future Projections
The situation escalated when Anupam asked about Angad's five-year plan. Angad stated his goal to grow Sepoy and Co into a Rs 100-150 crore company within that timeframe. This revelation baffled Anupam, who pointed out the inconsistency: if the company's worth in five years is projected to be Rs 150 crore, how could it justify the same valuation today?
"If you are going to be worth 100-150 crore 5 years later, how is that your valuation today?" Anupam questioned, highlighting the fundamental flaw in Angad's reasoning.
Aman Gupta's Blunt Critique
Following Anupam's exit, Namita Thapar, Mohit Yadav, and Kunal Bahl also withdrew from negotiations. Aman Gupta, however, delivered the most scathing assessment. While reiterating his admiration for the product, he lambasted Angad's approach as "illogical thinking."
"What are you doing? Why are you doing this? The structure of the company is illogical... Illogical thinking in what you do," Aman asserted. He emphasized that merely generating good profits does not automatically translate into a sustainably profitable business model, especially with such a lofty valuation.
No Deal, But Lessons Learned
Ultimately, Sepoy and Co left the tank without securing any investment. The episode underscored a critical lesson for entrepreneurs: even with a stellar product and strong family business credentials, unrealistic valuations can deter even the most interested investors.
The sharks' unanimous rejection serves as a reminder that in the high-stakes world of startup investing, sound financial logic and transparent business structures are just as crucial as innovation and brand appeal.
