Viraj Bahl, the founder of Veeba and a new addition to the judge panel of 'Shark Tank India Season 4', recently opened up about his experiences and insights from the popular reality show. Known for his candid approach, Bahl has emphasized the importance of honesty and integrity when assessing startup pitches and making investment decisions.
During his interview with the Indian Express, Bahl expressed his commitment to portraying himself as the 'most honest shark' among the panel of investors. "I have been the most honest shark. I have corrected the founders if they said something wrong. Being a shark is also a responsibility because you cannot mislead a founder. So, I stick to being as honest as I can," said Bahl. This commitment seems to resonate with viewers who are eager for transparency during the investment process.
This season of 'Shark Tank India' has showcased several noteworthy pitches, featuring entrepreneurs with ambitious projects. Bahl noted, "This year I saw company sizes have become bigger. Multiple companies had annual revenue between Rs 20-50 crores." He has observed promising trends among entrepreneurs, highlighting their newfound focus on profitability rather than sheer growth. "Eighty percent of the founders this year have spoken about profitability over growth, which is encouraging to see," he added.
While Bahl finds the entrepreneurial spirit inspiring, he also shed light on the reality behind the deals presented on the show. He explained how many deals often fizzle out once the cameras stop rolling. "Usually, when an investor invests... it takes between six to 12 weeks, but we have just one hour," he said, emphasizing the challenge of making informed decisions under tight time constraints. The quick turnaround often leads to discrepancies between what entrepreneurs present and the actual viability of their businesses.
The time-limited pitches result in reliance on the numbers provided on-stage. Bahl noted, "Sometimes the decisions we make are based on the numbers provided in the tank, but later if the numbers are inaccurate, the deal cannot be followed through." Such discrepancies can drastically impact negotiations post-show, as entrepreneurs may inflate their business performance following the exposure they receive from being on television.
Bahl articulated the typical lifecycle of deals initiated during the show, which tend to be heavily influenced by the attention garnered from their episodes airing. "The numbers can go high because of the marketing they get from the show. They can go as high as 100 percent. Maybe at [that] time, a founder says their business has scaled, and valuation needs to be increased, which the sharks don’t agree to," Bahl explained.
Interestingly, many viewers may not realize the nature of the cheques presented during the show. "We don’t give them a real cheque. It’s a serious letter of intent, which states the deal will be done subject to the numbers being accurate," Bahl clarified. This structural dynamic is pivotal to understand for aspiring entrepreneurs who aim to utilize 'Shark Tank India' as a platform for funding.
Veeba, the company Bahl founded, began as a supplier to notable global fast-food chains, including KFC, Pizza Hut, and Domino’s. Over the years, it has grown tremendously, transitioning to retail with consumer-facing products, such as sauces and dressings, which have proven popular among Indian consumers. Bahl added, "I am now joining Shark Tank veterans like Anupam Mittal, Aman Gupta, Vineeta Singh, Ritesh Agarwal, Peyush Bansal, Namita Thapar, and Kunal Bahl on the latest season."
His extensive background provides him with the experience needed to guide startups focused on food and fast-moving consumer goods (FMCG), offering mentorship to help them thrive beyond their pitches.
Bahl's unique perspectives from 'Shark Tank India Season 4' highlight the complexity and challenges faced by entrepreneurs on the show. By fostering honest dialogue and genuine mentorship, he aims to bridge the gap between the pitch and successful business operations, ensuring upcoming food startups have the best chance to succeed. His insights are invaluable not only for the contestants but for viewers interested in the real mechanics behind startup investments.