The latest episode of Shark Tank India Season 5, which aired recently, delivered high drama and a stark lesson in startup valuation. Travel venture Capture a Trip, founded by Nitin Khanna and Anurag Singhal, entered the tank seeking Rs 75 lakh for a 1.5% equity stake, implying a bold valuation of Rs 50 crore. They exited with a deal, but at a fraction of that worth, after a sharp critique from the sharks.
The Pitch and the Immediate Red Flags
Nitin Khanna presented Capture a Trip, a company he started as a travel agency in 2016, which now specializes in organizing group trips for solo travelers to destinations like Tosh and Kutla. While his humble and humorous demeanor initially charmed the panel, it quickly raised doubts. Kunal Bahl, pointing to a literal green flag on stage, told Nitin, "Aap green flag toh nahi lag rahe (You don't look like a green flag)," signaling concerns about the entrepreneur's risk profile.
The sharks' apprehension grew as the financial and cap table details unfolded. Nitin revealed he had already raised Rs 1.5 crore from Akash Anand of Wolfpack Labs in exchange for a significant 41% equity stake early on. Although this would reduce to 25% upon achieving a monthly business of Rs 3 crore, the existing structure was a major deterrent for several investors.
Sharks Back Out Citing Scale and Safety Concerns
Namita Thapar was the first to opt out, questioning the business's scalability. Aman Gupta followed, listing three critical reasons for his exit. He issued a stern warning about the travel industry's perils, stating, "Ek bhi kaand hua na, aapki agency band ho jayegi (Your agency will shut down if there is a scandal)." He highlighted safety liabilities, regulatory hurdles, and his disapproval of the current capital allocation as deal-breakers.
Anupam Mittal also declined, suggesting the business's survival depended solely on exceptional service and low-cost operations, a model he wasn't inclined to back.
The Final Offer: A Drastic Valuation Cut
Despite the skepticism, Kunal Bahl saw potential, noting the trend of young consumers prioritizing experiences over possessions. However, he and Mohit Yadav made a tough-love offer. They proposed Rs 75 lakh for 7.5% of the company, brutally slashing the valuation to just Rs 10 crore—a mere one-fifth of the founders' ask.
After a discussion with their existing investor, the founders negotiated a final deal. Kunal Bahl and Mohit Yadav secured 5% equity in Capture a Trip for their Rs 75 lakh investment, placing the company's revised valuation at Rs 15 crore. This marked a dramatic 70% reduction from the original Rs 50 crore valuation pitched at the start.
The episode underscored the harsh realities of startup fundraising, where early missteps in equity distribution can severely impact future valuation, and even promising ideas must pass rigorous tests of scalability, risk management, and financial prudence to win shark confidence.
