The founders of a startup called Paradyes pitched their business on the TV show Shark Tank. They asked for an investment of ₹65 lakh in exchange for 1% equity, valuing the company at ₹65 crore. The sharks, or investors, on the show were impressed by Paradyes’ strong supply chain and marketing. Peyush Bansal, the co-founder of Lenskart, called it a ‘category-creating business’ and started a bidding war by offering ₹65 lakh for 5% equity, valuing the company at ₹13 crore. The founders received multiple good offers, but they chose to accept an offer from Vineeta Singh and Aman Gupta. They asked for ₹65 lakh for 3% equity, which valued the company at around ₹32.5 crore.
Aman Gupta told the founders that he could offer more than just money. He said that boAt has been able to beat foreign brands in the Indian market, and he knows how to “fight them”. He asked the founders to choose value over just a higher valuation. Even though Bansal’s offer valued the company higher at ₹13 crore, the founders decided to go with Gupta and Singh’s lower offer of ₹32.5 crore. Bansal said he didn’t think it was the right choice, and another shark, Mittal, doubted the founders’ integrity and backed out. However, Namita Thapar supported the founders’ decision, saying they had the right to choose the offer they felt was best for their business. Bansal maintained that Vineeta Singh’s brand Sugar Cosmetics would compete with Paradyes.