Shark Tank India: Amit Jain says ‘fair toh nahi lag raha’ after learning chess Grandmaster was given only 0.15% equity share in ed-tech company

On a recent episode of Shark Tank India, a trio of founders including a chess Grandmaster pitched their ed-tech company to the sharks. But Amit Jain was concerned about the equity split.

By: Entertainment Desk

New Delhi | Updated: March 22, 2024 01:14 PM IST

3 min read

Amit Jain in a still from Shark Tank India.

The latest episode of Shark Tank India saw an unusual pitch for an ed-tech company specialising in chess. The primary founder of the company, Kaabil Kids, said that it is aimed at children between the ages of 5 and 15, and the goal is to create as many chess Grandmasters from India as possible. The founder was joined by his business partner, and an actual chess Grandmaster, Tejas Bakre, who is collaborating with the company on its curriculum.

The founder asked for Rs 70 lakh in exchange of 2% equity, which valued their company at Rs 35 crore. He said that he also aspired for greatness in the world of chess, but because of a lack of proper training, had to abandon his dreams as a child. He regained his love for the sport through his son, and began teaching children in the basement of his apartment complex. The founder said that out of the 2000-plus Grandmasters in the world right now, 83 are from India. And with the success of champions such as R Praggnanandhaa, the field is only going to expand in the coming years.

Also read – Shark Tank India: Retired Army officer takes offence at Aman Gupta’s low valuation, says, ‘Maybe I’ve taken it personally’

Anupam Mittal wanted to know why they haven’t fully computerised the coaching, because artificial intelligence is more than capable of competing with and beating the world’s best chess players. The founders said that AI coaching lacks the human touch, and this is very important for children of an impressionable age. They also told Anupam that while AI can ‘beat’ children easily, they want to focus on coaching them first. Anupam bowed out of the deal because he couldn’t figure out how to scale an ed-tech company that isn’t actively relying on AI.

Amit Jain was curious to know the equity split between the three founders. The primary founder said that he has 57% stake, while his co-founder has an 11% stake, and Grandmaster Tejas has a 0.15% share, but is paid Rs 6 lakh per year as a consultancy fee. Amit was a little surprised. “Why have you given him such a small equity? You’re using him for marketing, you’ve brought him along with you here. It doesn’t seem fair to me.” The main founder said that they’ve prioritised a cash component for GM Tejas for now.

Amit backed out of the deal for similar reasons as Anupam. “It’s easier to scale a tech product, this is a push product, and for that reason I’m out.” Vineeta Singh also declined to make an offer, but Namita Thapar and Aman Gupta felt it was worth a shot. They made a combined offer of Rs 50 lakh for 5% equity, and the remaining Rs 20 lakh as debt at 12% interest for two years. The founders gladly accepted the offer.

From the homepage