The study revealed that most startups featured on Shark Tank India secured deals with external investors at 6X greater value and within a span of 1.5 years.
The show features entrepreneurs presenting their business ideas to a panel of investors, known as “The Sharks,” who decide whether to invest in their companies or not.
“Most startups that appeared on the show secured deals six times greater in value from outside investors within a span of 1.5 years. Their current valuation is also 2.5X greater than what they were valued on Shark Tank season 1” said Kanishka Mohan, partner at Redseer.
Following up on companies that either secured a deal or were rejected on Shark Tank season 1, Redseer found that 27 startups successfully secured funds from external investors regardless of whether they scored a deal, dropped out, or got rejected on the show. In all, most startups that appeared on the show fared well afterward, securing better deals and increasing valuations.
Out of the 19 deals, 10 came from the healthcare and manufacturing sectors.
The investments in both seasons totaled Rs 1.06 billion. Food and Beverages sector received the biggest share of the pie in both seasons.
In season one, a total of 32 startups participated, out of which six successfully secured funding from external investors, resulting in a combined deal value of Rs 19 The million. Ccompanies that secured deals outside of the show included On2Cook, Theka Coffee, Good Good Piggy Bank, SweeDesi, Sabjikothi, and Nuskha.
In season two, out of 65 startups that appeared on the reality TV show, 16 were able to secure funding from external investors, amounting to a total deal value of Rs 707 million. Startups including Insurance Samadhan, Tagz Foods, Hair Originals, Humpy A2, Ariro, AyuRythm, Grow fitter, Proxgy, Beyond Snack, Let’s Try, Bummer, The Yarn Bazaar, BluePine Industries, Altor, Raising Superstars, and Get a Whey secured deals outside the show.
In season three, 20 startups participated, and five were successful in securing funding from external investors, resulting in a total deal value of Rs 28.3 crore. The companies that secured deals outside of the show included Moonshine Meads, Qzense Labs, Ketolndia, ExperentialEtc, and Aliste Technologies.