Shark Tank India Season 1 startups' valuation soars 6x with external investors: Redseer

Sony Television's popular business show, Shark Tank, has seen a remarkable influx of investments, totaling over Rs 100 crore across Seasons 1 and 2. In a recent report by Redseer Strategy, it was revealed that 27 startups managed to secure funding from external investors, resulting in a current valuation 2.5 times higher than that of Shark Tank Season 1.

Kanishka Mohan, a partner at Redseer, commented on this trend, stating, "Most startups that appeared on the show secured deals 6 times greater in value from outside investors within a span of 1.5 years. Their current valuation is also 2.5 times greater than what they were valued on Shark Tank Season 1."

The report emphasized that out of the businesses featured on Shark Tank, 90% centered around consumer-facing concepts, while the remaining focused on B2B ventures. Kanishka Mohan further elaborated on the high conversion rate of B2B deals, mentioning, "Out of the 19 deals, 10 came from the healthcare and manufacturing sectors. Namita and Peyush, who specialize in healthcare and manufacturing respectively, were responsible for the majority of B2B deals."

From the perspective of the investors, the sharks were skillful negotiators, securing much better deals with significantly higher equity than what was initially pitched on the show. Aman Gupta emerged as the most active shark, finalizing 70 deals with a total investment of INR 246 Mn. Close behind were Peyush Bansal and Namita Thapar, securing 67 and 62 deals respectively, with total investments of INR 215.5 Mn and INR 206.6 Mn. Among the eight sharks on the show, six preferred investing in the Food & Beverages industry, while the remaining two favored the healthcare sector.

Looking deeper into the investments made during both seasons, the total amount reached approximately INR 1.06 Bn, with the Food & Beverages sector receiving the largest share. Although most deals on the show involved a single shark, there was never a case where all the sharks invested in a single business.

Providing further insights into the entrepreneurs and startups, Redseer reported that most pitchers hailed from metropolitan cities and had attended prestigious institutions such as the IITs and Premier B schools. The majority of the businesses had their headquarters in metros, while the rest were located in Tier 1 and Tier 2 cities or smaller towns. Redseer also noted that most of the pitched startups had been in operation for more than 2 years.