“If You Don’t Stand for Something…” – Vineeta on ArtBuzz’s Identity: ArtBuzz on Shark Tank India

artbuzz on shark tank india

Three points you will get to know in this article:

  1. ArtBuzz offers budget-friendly accommodations, cafes, and co-working spaces.
  2. The sharks questioned its profitability and market differentiation.
  3. No investment was secured, leaving the founders with strategic challenges.

About ArtBuzz

ArtBuzz Logo

ArtBuzz is a New Delhi-based hospitality startup designed for budget-conscious travelers, backpackers, and remote workers. The company provides hostels, private rooms, dorms, cafes, and co-working spaces, creating social hubs for youth.

With a presence in eight cities across India, the brand aims to blend affordability with an artistic, community-driven atmosphere.

The founders, Shashank Negi and Anubha Gupta, believe that ArtBuzz offers something more than just accommodation—it’s a lifestyle experience for digital nomads and travelers.

 

Click here to visit their website: ArtBuzz

The Founders of ArtBuzz

Shashank Negi and Anubha Gupta started ArtBuzz with a vision to redefine budget stays in India.

Shashank, a hospitality enthusiast, brings industry experience, while Anubha, with a background in business strategy, focuses on operations.

Their goal is to scale ArtBuzz across India, opening new properties in Dehradun and beyond.

However, during their pitch on Shark Tank India, the sharks challenged their business strategy and financial decisions.

ArtBuzz’s Business Model and Fiancanial Highlights

ArtBuzz operates across three key revenue streams:

ArtBuzz’s Sales Split

  • Hotels & Hostels: 75%
  • Cafes: 13%
  • Co-Working Spaces: 12%
  • Hotels & Hostels
  • Cafes
  • Co-Working Spaces

The company generates most of its revenue from affordable accommodations, while its cafes and workspaces enhance the overall guest experience.

Despite steady revenue growth, the company struggles with profitability, which became a key concern for the sharks.

 

ArtBuzz’s Annual Sales Growth

  • FY22-23: ₹60 lakh
  • FY23-24: ₹2.1 crore
  • FY24-25: ₹3.78 crore
  • Projected FY24-25: ₹6.5 crore
  • FY22-23
  • FY23-24
  • FY24-25 (Projected)
  • FY24-25: ₹3.78 crore

While the numbers show strong year-over-year growth, profitability remains a challenge.

ArtBuzz’s EBITDA (Profitability) Trends

  • FY22-23: -50%
  • FY23-24: -30%
  • FY24-25: -10%
  • Projected FY24-25: 0% (Break-even)

 

The company aims to break even within the next financial year, but its cost structure raises concerns.

 

ArtBuzz’s Unit Economics Breakdown (-10% EBITDA)

  • Rent: 34%
  • Maintenance & Utilities: 16%
  • Salaries: 22%
  • Cafe Food Costs: 6%
  • Marketing & Commissions: 12%
  • Corporate Costs: 20%
  • Rent
  • Maintenance & Utilities
  • Salaries
  • Cafe Food Costs
  • Marketing & Commissions
  • Corporate Costs

Rent and salaries consume a major portion of revenue, making it difficult to achieve sustainable profits.

ArtBuzz on Shark Tank India

The founders asked for ₹1 crore in exchange for 30% equity, valuing the company at ₹3.33 crore.

They hoped to use the funds for:

  1. Expanding into new locations
  2. Marketing to attract more travelers
  3. Improving financial stability

 

While the sharks appreciated their vision, concerns arose about profitability, differentiation, and operational challenges.

Shark Ritesh Agarwal, the founder of OYO, immediately pointed out similarities between ArtBuzz and existing hospitality businesses. “How will you compete against big players like Zostel and OYO? What makes ArtBuzz unique?”

The founders emphasized their artistic appeal and traveler-friendly approach, but Ritesh wasn’t convinced and backed out.

Shark Vineeta Singh questioned whether ArtBuzz had a clear brand direction. “If you don’t stand for something, you fall for everything.” She felt that ArtBuzz lacked a distinct competitive advantage and decided not to invest.

Shark Azhar Iqubal and Aman focused on financial sustainability, questioning, why has the company not reached profitability yet and how do they plan to reduce operational costs?

The founders admitted that profitability is still a work in progress, leading Aman and Azhar to step away.

Shark Kunal Bahl appreciated the idea of affordable travel stays, but he raised concerns about, room pricing and occupancy rates and scalability without heavy discounts

Without a clear revenue optimization plan, he also chose to opt out.

What’s Next for ArtBuzz?

After the episode, the founders expressed their commitment to improving ArtBuzz’s financial health.

They plan to:

  1. Expand into more cities with controlled operational costs.
  2. Refine pricing strategies to maximize occupancy and profitability.
  3. Strengthen their brand to position ArtBuzz as India’s top hostel chain.

 

With the right strategy and financial discipline, ArtBuzz still has the potential to become a leading name in affordable hospitality.

Learnings from ArtBuzz’s Shark Tank India Pitch

  1. Clear differentiation is essential – Competing with big hospitality brands requires a unique approach.
  2. Revenue growth alone isn’t enough – Investors look for profitability and sustainable cost structures.
  3. Brand positioning matters – A strong identity helps in customer loyalty and long-term success.

 

ArtBuzz entered Shark Tank India with a bold vision but faced tough scrutiny from the sharks.

The business has strong potential, but profitability remains a major hurdle.

With the right adjustments, smarter cost management, and strategic marketing, ArtBuzz could still build a successful nationwide hostel brand.

The question remains—can the founders turn ArtBuzz into a profitable hospitality empire, or will it remain a niche travel concept? Time will tell.

Start typing and press Enter to search

Shopping Cart