Shark Tank India 3, the popular reality show where entrepreneurs pitch their ideas to investors, witnessed a shocking revelation in its latest episode. A Mumbai-based startup that makes health and wellness products from cannabis extracts, hid the fact that they also own a contract manufacturing company from the sharks. This led to a heated exchange and a controversial offer from the investors.
The pitch: Cannabis products for health and wellness
The pitchers were Kartik Sharma, Sukrit Goel, and Arzoo Puri, the co-founders of a startup that makes health and wellness products from the extracts of cannabis leaves. They claimed that their products were based on scientific research and personal experiences, and that they had two categories of products: prescribed and over-the-counter.
They asked for Rs 1.5 crore for 5% equity, valuing their startup at Rs 30 crore. They also shared their sales figures, unit economics, and equity split, and said that they had a patent pending for their extraction process.
The sharks were intrigued by the pitch, and asked them about their background, their products, their claims, and their competitors. They also asked them about the legal and regulatory aspects of their business, and how they sourced their raw materials.
The twist: A hidden contract manufacturing company
However, the pitch took a surprising turn when the pitchers revealed that they also owned a contract manufacturing company, apart from their cannabis startup. They said that they had started the manufacturing company as a backup plan, and that they had not disclosed it to the sharks earlier, as they wanted to focus on their cannabis products.
The sharks were stunned by this revelation, and questioned the pitchers’ intentions and credibility. They asked them why they had hidden such a crucial information from them, and whether they were trying to mislead them or use them.
The pitchers tried to justify their decision, and said that they were not hiding anything, and that they were passionate about their cannabis products. They said that they had invested their own money in both the companies, and that they were open to merging them, if the sharks wanted.
The offer: A conditional and controversial deal
The sharks were not convinced by the pitchers’ explanation, and said that they had lost their trust and interest in them. They said that they felt that the pitchers were not serious about their cannabis startup, and that they were only looking for a quick exit.
However, two of the sharks, Peyush Bansal and Vineeta Singh, decided to give them a benefit of the doubt, and made them an offer. They offered them Rs 50 lakh as equity for 10% stake, and Rs 1 crore as debt for 12% interest for two years. They also made the offer conditional, and said that they would only invest if the pitchers could prove their claims and show the right papers.
The pitchers were disappointed by the offer, and said that it was too low and too harsh. They said that they had expected a better deal from the sharks, and that they had not come to Shark Tank India for a loan. They said that they would rather walk away than accept the offer.
The sharks were not surprised by the pitchers’ response, and said that they had expected them to reject the offer. They said that they had made the offer only to test them, and to see if they were genuine or not. They said that they had no interest in investing in them, and that they had wasted their time and opportunity.
The segment ended with the pitchers leaving the stage, and the sharks expressing their disappointment and frustration with them.
