Anupam Mittal’s Misstep: Chefling Founder Chooses Sharks Over Solo Deal!

Anupam Mittal’s Misstep: Chefling Founder Chooses Sharks Over Solo Deal!

In the most recent Shark Tank episode All five sharks expressed interest in working with a young entrepreneur in India, but Anupam Mittal chose to do it alone, therefore there was no all-shark agreement. The businessman presented his homemade meal kit company, Cheflin, and requested Rs 40 lakh in exchange for 10% ownership, translating the company’s valuation to Rs 4 crore.

Before giving his presentation and telling the sharks about himself, the entrepreneur gave each of them the DIY sushi kit. He claimed that his father’s textile factory was destroyed, that he was duped out of Rs. 8 crore, and that his family went through many other problems. He ultimately had to file for bankruptcy. The sharks, however, were grateful that the businessman continued to pursue his own goals in spite of the losses.

Initially, a joint offer of Rs 40 lakh was made by Azhar Iqubal and Namita Thapar in exchange for 20% stock. Although Peyush Bansal appeared uneasy about the DIY meal kit market, he was fascinated by the businessman who had founded the company on his own with just Rs 1.5 lakh in family funding. They also noticed that he owns all of the company’s equity. Amit Jain also showed interest in investing, and he joined them after being encouraged to do so by Namita and Azhar, as the entrepreneur needs all the support he can get. Peyush declared, “We’ll put in Rs 10 lakh each and take 5% each.”

However, Anupam was so taken aback by the business’s potential that he decided to present his ideas to the entrepreneur. “Investing in this business at this point is challenging. However, I believe you have the creativity and life lessons necessary to take it to the next level. You require dedicated leadership. You’ve seen how I go above and beyond to promote the things I’ve invested in on Instagram. I wear their jewelry and eyewear, and I dress for them. I will thus make you an offer of Rs 40 lakh for 15%. I’m not avaricious. I want to be fair, I want you to succeed, but I also want to be wealthy.

After considering for a bit, the business owner came back with a counterproposal. Anupam intervened and lowered his request to 12% when he asked if the four sharks could lower their equity request to 15%. However, the entrepreneur sealed the deal when the quartet of sharks lowered their offer to sixteen percent.

Read This Also: 800 Resume, 3 Years Unemployed: Shark Tank’s Anupam Mittal on His Struggles

Anupam’s Solo Gamble: Missed Opportunity or Strategic Move?

While the entrepreneur ultimately secured funding, Anupam’s solo offer sparked debate. Here’s a deeper dive into its implications:

Mittal’s Miscalculation:

• Ignoring the Group Dynamic: By breaking away from the collaborative offer, Anupam disrupted the flow and potentially undermined the entrepreneur’s trust in a united front.
• Misjudging the Need: The entrepreneur valued the support and expertise of multiple investors, which Mittal’s solo offer didn’t provide.
• Overconfidence: Believing his offer was superior might have blinded him to the entrepreneur’s perspective and the value of a united pitch.

Alternative Perspectives:

• Strategic Negotiation: Some argue Mittal intended to pressure the entrepreneur into a better deal, though it backfired.
• Focus on Control: Perhaps Mittal wanted exclusive control and mentorship, which a solo offer offered.

Impact on the Entrepreneur:

• Increased Leverage: The negotiation, triggered by Mittal’s offer, allowed the entrepreneur to secure a better deal (16% instead of 20%).
• Mixed Feelings: While gaining funding, the entrepreneur might feel slighted by Mittal’s initial approach.

Lessons Learned:

• Collaboration is Key: In group settings, understanding the entrepreneur’s needs and respecting the collaborative spirit often leads to success.
• Tailored Approach: Individual offers can be effective but require careful consideration of the entrepreneur’s perspective and the existing dynamics.
• Mutual Respect: Maintaining respect throughout negotiations fosters trust and increases the chances of a successful outcome.

Conclusion:

Anupam’s solo offer might not have secured the deal he desired, but it sparked conversations about negotiation strategies and the importance of understanding the entrepreneur’s perspective. While the entrepreneur benefitted from the increased leverage, the episode highlighted the potential pitfalls of individual offers within a collaborative environment. As Shark Tank India continues to evolve, this incident serves as a valuable reminder for investors to adapt their strategies and prioritize a win-win approach.

Watch the episode on YouTube here: https://www.youtube.com/watch?v=vlY5psegGY4