The latest episode of Shark Tank India featured a tense pitch from the founders of Ezo, a Maharashtra-based company, who left without securing a deal. The panel of ‘sharks,’ including Anupam Mittal, Namita Thapar, Aman Gupta, Ritesh Agarwal, and Kunal Bahl, raised concerns about the ethical and financial practices of the business, ultimately deciding against investing.
Ezo, presented as a solution to reduce skimming in small businesses, was revealed to be a basic POS (Point of Sale) system designed to help shopkeepers track sales. This misrepresentation drew criticism from Anupam Mittal, who expressed his shock at their lack of transparency.
The business model, which relies on selling billing machines and generating revenue through a subscription model, also raised red flags. The founders admitted they had not yet tested subscription renewals, despite projecting a revenue of Rs 30 crore for the year. Upon further probing, the sharks uncovered unethical accounting practices. Namita Thapar explained the difference between cash accounting and accrual accounting, emphasizing that the latter offers a clearer picture of business performance.
“This is not just an accounting issue; it’s an integrity issue,” Namita remarked, backing out of the deal. Anupam Mittal, unimpressed by the founders’ defense, commented, “Puri daal hi kaali hai boss,” and criticized their inflated projections. Aman Gupta advised the founders to refine their approach, pointing out the challenges of cracking a subscription model in India, where even giants like Amazon and Netflix struggle to gain traction.
Despite their entrepreneurial skills, the Ezo founders failed to win over the sharks, leaving empty-handed. Their pitch marked the second no-deal of the episode, highlighting the importance of transparency and ethical practices in securing investments.
