On a recent episode of Shark Tank India, two founders were offered double the amount they initially requested. Anupam Mittal believed they needed more funds to compete effectively against industry giants like Reliance.
In a recent episode of Shark Tank India, all five panel sharks — Anupam Mittal, Aman Gupta, Azhar Iqubal, Namita Thapar, and Radhika Gupta — were involved in a lucrative deal. Two co-founders representing their biomaterial science company Canvaloop pitched their innovative product aimed at reducing the environmental impact of cotton and synthetic fibers. They sought Rs 1 crore in exchange for 1.33% equity, valuing the company at Rs 75 crore.
The founders highlighted that their alternative fibers, produced through their ‘zero-waste proprietary technology,’ significantly reduce energy, carbon emissions, and water usage compared to traditional manufacturing methods. Their claims were independently verified, leading to partnerships with global brands like Levi’s.
Impressed by the founders’ vision, Namita sought assurance that their business would benefit Indian farmers. The founders affirmed their commitment, aiming to grow their business to a Rs 2000 crore valuation by leveraging agricultural waste. They disclosed securing a Rs 18 crore contract for the upcoming year, signaling promising revenue growth.
The sharks were intrigued and eager to invest. Radhika, Aman, and Namita collaborated on an offer, while Azhar made a solo offer. Anupam expressed concerns about manufacturing capacity and potential competition from larger players. He emphasized the need for substantial capital to maintain a competitive edge, offering Rs 1 crore for 1.5% equity.
Anupam cautioned against undervaluing the company, prompting a revision of offers from other sharks. Eventually, Anupam proposed Rs 2 crore for 4% equity, valuing the company at Rs 50 crore. He advised the founders to prioritize value over valuation, leading to an agreement where all five sharks joined hands in a mutually beneficial deal.