Shark Tank India rejection set Recode on the path to viral success, brand is now valued at Rs 240 crore

Despite inspiring all the sharks with their unique marketing strategies, the two founders of Recode walked away empty handed on the second season of Shark Tank India. But the rejection only helped them in the long run.

While several entrepreneurs have turned their fortunes around after a trip to Shark Tank India, others have walked away empty handed. One such company, the cosmetics brand Recode, which got so much publicity on the show that its valuation rose to immense heights. Co-founders Rahul and Dheeraj appeared on the show’s second season, where they asked for Rs 1 crore in funding, in exchange of 1% equity, valuing the company at a whopping Rs 100 crore.

The sharks were taken aback by the ask, and even more surprised by the revenue that they were generating. The founders said that they’d hit Rs 15 crore in revenue in the previous financial year, which made the sharks gasp. More surprises were in store when the founders told the sharks that as a part of their marketing strategy, they were offering college girls free lessons on how to groom themselves, along with free lunch.

Also read – After being ‘rejected’ on Shark Tank India, Theka Coffee founder opens up about going from Rs 5 crore valuation to Rs 120 crore

Aman Gupta was very critical of the product packaging, and backed out of the deal citing his friendship with Vineeta Singh, who runs a cosmetics company. Namita Thapar backed out for the same reason. Peyush Bansal backed out because he felt that the branding could be improved, and Anupam Mittal said that he was ‘shocked’ to see the kind of reach that the founders had organically accumulated through their marketing strategies. But he backed out as well, leaving the founders with lots of goodwill but no deal.

The company’s Brand Development Head, Ishani Trehan, spoke about the impact of Shark Tank on the business, and told India Today, “As seen on the show itself, there was not much interest shown by the ‘sharks’ to get into the numbers. As a whole, the conversation was quite vague, and it felt like a fun discussion but not a business conversation. The reasons for rejection got so viral which ultimately ended up giving the brand huge publicity.”

According to India Today, Recode is now valued at a whopping Rs 240 crore, which is Rs 140 crore more than the valuation established on Shark Tank. The show is currently airing its third season.

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