EZO on Shark Tank India, Shark Anupam said, “Puri daal hi kaali hai boss”, from Bold Claims to Controversy

EZO on Shark Tank India

Three points you will get to know in this article:

  • EZO aimed to simplify shop billing with a ₹6001 machine.
  • Sharks questioned inflated sales and accounting practices during the pitch.
  • EZO’s pitch ended without funding due to trust and integrity concerns.

What is EZO?

EZO

EZO is a Maharashtra-based startup offering a billing solution and machine aimed at digitizing small and medium shops across non-metro cities. Founded by Gaurav and Makrand Kate, along with Rishikesh, the startup focuses on providing shopkeepers with a simple, fast, and affordable way to handle billing.

Click here to visit here to their official website : EZO

With two clicks, shopkeepers can create bills, and the system allows them to view their daily transactions on their mobile devices. EZO claims to have digitized over 35,000 shops in more than 600 cities, particularly targeting underserved regions.

The Founding Journey of EZO

The idea for EZO stemmed from discussions between school friends Gaurav and Rishikesh, who often talked about starting a business. After their first venture failed during the COVID-19 pandemic, they teamed up with Gaurav’s brother, Makrand, to create EZO.

Identifying the Market Gap

The founders saw an opportunity to help shopkeepers transition from manual billing to a digital-first approach. EZO positioned itself as a cost-effective alternative to traditional systems, with its billing machine priced at ₹6001, including a one-year subscription. Renewals cost ₹3000 annually, ensuring recurring revenue for the company.

How EZO Works?

EZO’s billing system is designed to be user-friendly and accessible, with features like:

  • 12 Language Support: Enabling shopkeepers across India to use the system in their preferred language.
  • Comprehensive Training: EZO provides manuals and software updates to users.
  • Affordable Hardware: A printing machine bundled with an annual subscription.

EZO’s model allows shopkeepers to seamlessly adopt digital billing without significant investment, making it a popular choice in non-metro regions.

EZO’s Financial Highlights

EZO has seen significant growth since its inception:

  • 2022-23: ₹4 Crores in sales
  • 2023-24: ₹12 Crores in sales
  • 2024-25 (Projected): ₹30 Crores
  • Already ₹10.5 Crores achieved in the first six months

While these figures initially impressed the sharks, closer scrutiny revealed inconsistencies in how the company calculated revenue.

EZO’s Profitability

Despite growing revenue, EZO faces challenges with profitability. The company is currently losing over ₹1 Crore annually.

EZO’s Shark Tank India Pitch

The founders entered Shark Tank India seeking ₹50 Lakhs for 0.33% equity, valuing the startup at a staggering ₹150 Crores. They highlighted their innovative billing machine and ambitious growth targets.

Sharks Question Accounting Practices of EZO

While the pitch began on a promising note, the sharks soon discovered discrepancies in EZO’s financial reporting.
Shark Namita Thapar explained that EZO used cash accounting, which records revenue when cash is received rather than when it is earned. She noted that this method inflates numbers and doesn’t reflect the company’s actual financial health.
Shark Anupam Mittal openly questioned the founders’ integrity, stating, “Puri daal hi kaali hai boss.” He accused them of knowingly inflating their numbers and dismissed their defense as unconvincing.
Shark Namita added, “It’s an integrity issue, not just an accounting issue,” emphasising the importance of transparency in business.
The pitch ended without a deal, as none of the sharks trusted the founders or their financial projections.

  • Shark Anupam Mittal: Rejected the pitch outright, citing a lack of trust.
  • Shark Namita Thapar: Criticised the accounting practices and questioned the company’s ethics.
  • Shark Kunal Shah: Highlighted the importance of accurate reporting but didn’t make an offer.

Despite their efforts to justify the numbers, the founders left the tank without funding.

Challenges Facing EZO

These are some challenges that sharks raised

1. Lack of Trust

The accounting controversy during the pitch significantly damaged the founders’ credibility, making it difficult for them to secure funding.

2. Profitability Issues

EZO’s recurring losses, combined with its reliance on untested subscription renewals, raise questions about its sustainability.

3. Competitive Market

The billing solutions space is crowded, and EZO needs to differentiate itself to survive.

Opportunities for EZO

Despite the setbacks, EZO has opportunities to recover and grow:

1. Build Transparency

Adopting accrual accounting and being upfront about finances can restore trust with potential investors.

2. Expand Customer Base

Focusing on underserved regions and improving customer retention can drive growth.

3. Strengthen Subscription Model

Proving the viability of their subscription renewals will reassure investors and solidify recurring revenue streams.

Lessons from EZO’s Shark Tank Experience

  • The sharks’ reactions underscore the importance of transparency in business dealings. Inflated numbers may attract initial attention but will ultimately backfire.
  • Entrepreneurs must understand and implement proper accounting practices to present an accurate picture of their business.
  • When seeking funding, founders should anticipate tough questions and ensure they have honest answers.

EZO’s appearance on Shark Tank India highlighted the potential of its billing solution but also exposed significant flaws in its financial practices. While the founders faced criticism, their ambition to digitize 35,000+ shops demonstrates the impact such a solution can have in India’s retail sector.

Manvendra Hada

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