Three founders from Maharashtra stepped into the Shark Tank India arena to pitch Ezo, their company designed to help small shopkeepers track sales. The panel of sharks, including Anupam Mittal, Namita Thapar, Ritesh Agarwal, Kunal Bahl, and Aman Gupta, listened intently as the founders claimed their objective was to reduce skimming in small businesses. However, the pitch quickly unraveled, revealing deeper issues.
The founders explained that their revenue model involved selling billing machines to shopkeepers and earning through subscriptions. When asked if they’d tested renewals, they admitted they hadn’t been in business long enough. Despite this, they projected a revenue of ₹30 crore, leaving the sharks puzzled. A deeper dive into their financials uncovered their use of questionable accounting practices.
Namita Thapar broke down the difference between cash and accrual accounting for the group, emphasizing that the latter offers a clearer picture of a business’s performance. She bluntly stated, “Accrual accounting paints a more accurate picture of a business and is always the preferred method.”
Anupam Mittal, visibly unimpressed, remarked, “Puri daal hi kaali hai boss.” He dismissed the founders’ claims that their accounting choices were unintentional, stating, “You’re a pro; don’t pretend like you didn’t know what you were doing.” Namita agreed, calling it an integrity issue rather than just an accounting one.
Ritesh Agarwal and Namita Thapar withdrew from the deal, citing a lack of confidence in the business and advising the founders to fix their accounting practices. Aman Gupta, while acknowledging their business acumen, said, “You want to crack the subscription model in a country where even Amazon and Netflix are struggling? Don’t make money through shady practices.”