In a recent episode of Shark Tank India Season 3, the founders of Kolkata-based multi-brand cloud kitchen EatVerse presented their pitch to the judges, seeking ₹1 crore in exchange for one percent of their company’s equity. However, the response from the judges shed light on the challenges faced by startups in the competitive food delivery industry, particularly in the shadow of giants like Swiggy and Zomato.
Navigating the Dominance of Swiggy and Zomato
Anupam Mittal, one of the judges on the panel, expressed skepticism about EatVerse’s ability to compete in an industry dominated by Swiggy and Zomato. He highlighted the significant challenges inherent in the food delivery and cloud kitchen space, emphasizing that margins are heavily influenced by the actions of these industry giants.
Mittal’s concerns underscored the reality that startups like EatVerse must contend with the formidable market presence and influence of Swiggy and Zomato, which effectively serve as gatekeepers in the industry. Without a clear strategy to overcome these challenges, startups may struggle to achieve meaningful growth and profitability.
Assessing the Risks and Growth Potential
Ritesh Agarwal, CEO of OYO Rooms and another judge on Shark Tank India, echoed Mittal’s sentiments by questioning EatVerse’s plan for expansion. Agarwal raised valid concerns about the risks associated with scaling the business, particularly given the competitive landscape and the uncertainties of venturing into new geographies.
The discussion highlighted the delicate balance that startups must strike between ambition and pragmatism. While scaling operations and expanding into new markets hold the promise of growth, it also entails inherent risks and challenges that must be carefully evaluated and mitigated.
Lessons Learned and Moving Forward
Ultimately, the founders of EatVerse left the Shark Tank without securing a deal, underscoring the importance of understanding market dynamics, assessing risks, and articulating a clear growth strategy when seeking investment.
The episode serves as a valuable learning opportunity for aspiring entrepreneurs, offering insights into the complexities and realities of navigating competitive industries and securing funding in a challenging economic landscape.
As startups like EatVerse continue to innovate and evolve, they must remain resilient, adaptable, and strategic in their approach to growth and expansion. By leveraging lessons learned and embracing a spirit of innovation and perseverance, they can overcome obstacles and chart a path towards sustainable success in the dynamic world of entrepreneurship.
