Image: Indian Express
Nytarra's pitch on Shark Tank India Season 5 faced tough criticism from Anupam Mittal and other sharks for inflated claims and lack of profitability.
GlipzoIn a recent episode of Shark Tank India Season 5, the founders of Nytarra, a home fragrance brand, faced harsh criticism from investor Anupam Mittal for their poor performance and inaccurate market analysis. The pitch, which took place during the show’s airing on October 2, 2023, highlighted the challenges faced by startups in the competitive quick commerce space, leaving the entrepreneurs without the funding they sought.
Nytarra, co-founded by Adheer Awasthi and Tara Malhotra, aimed to secure an investment of ₹75 lakhs in exchange for 2% equity, valuing the company at ₹37.5 crores. With a product line that includes room fresheners, closet fresheners, bathroom fresheners, car fresheners, and smart diffusers, the brand had high hopes for investor interest but left with no deal.
Tara Malhotra, who has a background in the media industry, previously worked with notable organizations such as BBC Worldwide and NDTV. Adheer Awasthi brought 18 years of experience in capital markets, having served as a vice president at Kotak Mahindra Bank. Despite their impressive resumes, their numbers failed to impress the sharks.
During the pitch, the founders reported revenue figures that raised eyebrows: - 2021-22: ₹25 lakhs - 2022-23: ₹54 lakhs (2% EBITDA) - 2023-24: ₹2.15 crores (2% EBITDA) - 2024-25: ₹3.8 crores (20% loss)
Year-to-date figures indicated that while they projected ₹7.2 crores in sales, the company had already incurred a 14% loss. This lack of profitability and growth further fueled the sharks' skepticism.
Anupam Mittal didn't hold back his thoughts, stating, “You have your numbers all wrong. You are saying one company has 50% of the market; that’s impossible. Let’s agree to disagree.” His disappointment stemmed from the founders presenting inflated statistics about their competitors, which he deemed unprofessional.
In addition to the financial discrepancies, Mittal emphasized the importance of a solid brand strategy, noting that despite the unbranded nature of the Indian market, Nytarra had yet to carve out a distinct identity. He remarked, “I cannot understand your distribution; you are losing money. Unless you make an aspirational product, I don’t think you can make money at all, so I am out.”
The feedback from the sharks was overwhelmingly negative. Namita Thapar expressed her reservations about the brand's scalability, stating, “You guys are operating in a third category. It seems difficult to create a scalable brand where the investor can get an exit.”
Kunal Bahl, another shark, highlighted the need for a focused strategy, saying, “You need to figure out that one thing you can double down on, which brings the brand fame. I cannot see that, so I am out.”
Mohit Yadav pointed out the lack of storytelling in their branding, critical for attracting consumers in the fragrance market. He said, “Today, everyone is selling an experience... Your brand is all over the place, so I am out.”
Aman Gupta was particularly direct in his assessment, advising the founders to act swiftly. He exclaimed, “It’s a crazy category... Your numbers are also solid; it is no joke to make ₹7 crores worth of business.” However, he expressed concerns about their content strategy and speed of execution, emphasizing that they had yet to explore quick commerce effectively. “Isme dimaag kya lagana hai, phod jaake, jaao bhaago, tez bh,” he urged, highlighting the urgency for innovation and action in their approach.
The experience of Nytarra on Shark Tank India serves as a reminder of the fierce scrutiny startups face when seeking investment. Founders must not only present solid financials but also demonstrate a clear brand strategy and market understanding. As the episode concluded without any investments for Nytarra, it highlighted the critical need for entrepreneurs to adapt quickly and effectively in competitive markets.
In summary, the Shark Tank India episode underscored the importance of accurate data, effective branding, and the ability to pivot in the fast-paced world of quick commerce. The feedback given by the sharks provides valuable lessons for aspiring entrepreneurs aiming to secure funding and achieve success in the startup ecosystem.
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