'They Are Dolphins Not Sharks,' Ashneer Grover Claims Shark Tank India Judges Don't Have Money

At a time when the popular show is gearing up for a third season, former Shark Tank India judge Ashneer Grover has hit out at the show’s sharks. Amid various reports of many contestants not getting the funds despite cracking a deal on the show, Grover has slammed the judges.

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“Dene Ke Liye Paisa Hona Bhi Chahiye”

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“Sharks are called sharks because they’re expected to take decisions and act quickly so that the ‘fish’ (the pitcher) has no time to react. If they say ‘no, it takes time,’ then they shouldn’t be called sharks — they should be called dolphins, instead.” 

“Solution is simple – ask Sharks to put money in escrow before shoot starts ! Dene ke liye paisa hona bhi chahiye 😉 “, Grover tweeted.  

Grover’s Outburst After Participants Share Ordeal

Ashneer Grover‘s outburst comes amid emerging differences between sharks (judges) on the show and the founders who have bagged deals, over issues surrounding delays in deal closure, changing terms, and renegotiation of valuation.

For instance, Rahul, a founder on season two, secured a deal from Anupam Mittal. But even many months later, Rahul said that there have been fundamental disagreements over what was earlier agreed upon (with Mittal), and he’s even been told that his business is not viable.

This isn’t Rahul’s story alone. Many participants have said that the sharks reassess the deal (based on the online traffic the episode draws, audience response, etc.) after offering it, and have even gone on to ditch the founders subsequently, as per a Money Control report.

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Also Read: “BharatPe CEO Enjoying Life With Money I Raised” Says Ashneer 

12 Participants Haven’t Received Funds

Most deals are still in process, and 12 founders claim that none of them have received their funds yet. Reacting to this, Grover said that it’s stupid to take a year to close a deal one has promised on the show. No founder, even the sharks, would ever wait for a year to close a deal. It is unfair to the business.

Another founder, Kunal, was successful in setting up a meeting with the shark that had offered him money but was delaying the final close. “When we asked why there was a delay and how the deal could be taken ahead, we were told that a one-hour meeting — referring to the Shark Tank pitch — cannot tell a shark enough about the business,” Kunal says.

Ashneer Grover says an hour is enough, and in fact, the money that was committed should have been with the founders before the show aired. “The entire point is that when the show is broadcast, pitchers should have funds at their disposal so that they can capitalise on the spike in demand,” he said.

Grover also reportedly said he had closed 55-60 percent of the deals he had committed to during the first season and that all deals, from a season, should be closed before shooting for the next season begins.

Grover Suggests Investment In Escrow Account

Reacting to many participants not getting funds, Grover said “Sharks should be asked to put the money they plan to invest in an escrow account. That way there is accountability and a budget, which ensures that none of them over-commit and later cancel.” 

For the unversed, an escrow account is an account which holds funds and releases the same subject to the fulfilment of certain conditions.

Other Participants Share Ordeal

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The very situation that Grover speaks of played out for Mohit, a founder whose startup saw significant interest after the show aired. Usage spiked, leading to revenue doubling in days. The spike in demand that Grover speaks of typically lasts for 30 days.

“The sharks are big-time bullies, big-time snobs. They respond only when they want to. I went to the show with such high hopes and today we are at a point where we may have to shut down the company, despite securing a deal,” he said.

Mohit said he was finally called for a follow-up meeting with his shark six months after the deal was offered. At the shark’s office, he saw other founders visibly upset about the shark re-negotiating deals for a lower valuation. He thought there might have been an issue with the other deals, but he too received similar treatment. “When I entered the room, the shark and seven people from his team started renegotiating the valuation,” he said.

He said he was not in a position to lower the valuation as the company was already in talks to raise another round based on the valuation agreed upon on Shark Tank. “We did not budge and it wasn’t possible for us to do so too just for the shark. And that’s the last we heard from them. They have been AWOL (absent without leave) since,” Mohit said. He added he has left no stone unturned to revive talks but to no avail.

Reactions To Ashneer’s Tweet

Also Read: ‘There Is No BharatPe Without Me,’ Says Ashneer Grover

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