'Shark Tank 4' witnessed another interesting pitch where Shark, Vineeta Singh accused a pitcher of not respecting her husband's money. Here's what happened.
Shark Tank India 4 has kept the audiences hooked with the interesting brand pitches on the show. At same time, the intense conversations between the pitchers and the sharks have frequently hit the headlines in this new season. In a recent episode, we got another example of such interesting interaction when the sharks were left surprised after Prasanna Vasanadu, founder of kids' healthcare brand, Tikitoro, revealed the figures of investment and losses in her business where Sugar co-founder, Vineeta Singh's reaction now made headlines.
In the Shark Tank India 4's recent episode, Prasanna Vasanadu came to the show seeking a significant ask of Rs. 25 lakh for 0.5% of her brand's equity, valuing Tikitoro at Rs. 50 crore. The high amount left sharks curious, and she explained that her brand focuses on making dermatologically tested healthcare products for children between the ages of 4 and 16. During her pitch, she mentioned that her business has grown since its launch in December 2021.
However, Prasanna added that her business had been struggling with financial issues and had a -49% EBITDA in FY 2023-24. She noted that she hasn't raised any external funding yet as she and her husband have invested all their savings of Rs. 14 crore in the business and are willing to put Rs. 5 crore more. A key point in her pitch was that she spent a massive Rs. 6.5 crore on stocking up her inventory after a shipping crisis threatened the brand. It left everyone in shock, and Vineeta Singh criticised the poor mismanagement of money, saying:
"Keeping 12 months worth of inventory in a business like this is suicide. All of that is cash that is blocked. This means there's a lack of respect for cash."
Lenskart's Peyush Bansal also called out Prasanna for spending Rs. 20 lakh monthly to seek services from freelance consultants. He suggested her to build a strong in-house team rather than spending more on external experts. However, Peyush felt that Prasanna was making these mistakes because no one was checking her decisions or expenditures. The Lenskart's co-founder said:
"You have a cash pipe that you're utilizing, but you need somebody to make you accountable. I don't think your husband is making you accountable today."
After sharing their concerns, it was time to make a deal, and shark Namita Thapar saw it as a good opportunity to invest in Tikitoro. So, she made an offer to get 1% equity at Rs. 25 lakh and 0.5% royalty until she earns back her investment. Prasanna happily accepted the offer, and Namita promised that she would help Tikitoro meet their goal of earning Rs. 17 crore in 2025.
What do you think about Vineeta Singh's reaction on Prasanna's business strategy?
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