Shark Tank India Season 3: What did Sharks say on ’Daak Room’ startup once praised by PM Modi

Shark Tank India 3: The startup, Daak Room, which was once praised by Prime Minister Narendra Modi landed on a recent episode of Shark Tank India Season 3. During the episode, Daak Room founders Shivani Mehta and Harnehmat Kaur presented their startup and said that they promote physical writing among people through school programs, campaigns, events and products. The sharks were impressed by the pitch as they received written letters from their loved ones. The founders asked for ₹36 lakh for 4 percent equity.

What did Sharks say on Daak Room?

boAt founder called writing as an old time practise and choose to opt out as he did share the same passion for writing as they did. He said, “This was common in ancient times where people use to write. I agree that kids are writing. It’s not a business." "I am opting out because I do not share the same passion for writing as you do, so I won’t be able to contribute further value,” he said.

Edelweiss CEO Radhika Gupta felt Mehta and Kaur were confused on whether Dark Room is their passion-project or business. She added, “I feel you guys are confused whether it's a passion project or business. I won't be able to consider it for an investment right now. I will surely attend your carnival and since I'm so passionate about this subject, so if I can advise or be of some support, inclusing with CSR, I'll be more than happy."

Also Read: Shark Tank India: What happens once a deal is struck on screen? Anupam Mittal says…

Lenskart founder Peyush Bansal also failed to relate with the pitch and said, “I did not understand what service do you exactly offer and what is the revenue mode.”

They explained, “We have three verticles First is for education sector, second for marketing campaigns and events and third is our flagship event which is the letter writing carnival.”

Also Read: Shark Tank India: Here's what Oyo founder Ritesh Agarwal says about his journey so far in the show

Speaking on the revenue collection for FY23-24, Mehta said they collected a total revenue of ₹90 lakh and has projected to do ₹1.46 crore this. Out of the ₹90 lakh revenue, Mehta added that from school programs they collected 41 percent revenue, 55 percent from marketing campaigns and 4 percent from carnival.

Opting out from the deal, Bansal however, advised the founders to rebrand it as a stationary brand. He said, “The path that you are on, I think, you need to decide if it's the right thing to seek investment for this business. Because, three years later, you must make Daak Room into a big stationary brand and sell commerce products. They profits that you earn from it, can be used for your carnival.”

Daak Room's deal with Ritesh Agarwal

Eventually, Daak Room struck a deal for ₹36 lakh in exchange for 6% equity with OYO CEO Ritesh Agarwal. He further stated that he will lower his ownership to 5% should their business meet its revenue targets.