Ganesh Balakrishnan‘s pitch for his company, Flatheads Shoes, was featured in the most emotional episode of Shark Tank India S2 that aired last Friday. The company’s all-day casual shoes range from $1,000 to $5,000 a pair for the urban workforce. Additionally, it sells the first sneakers made of linen in India and banana fiber.
Balakrishnan’s company was about to shut down when the episode was filmed. But, in the last two months, he claimed on the program, he contributed 35 lakh rupees to keep the business viable. The shoes’ co-designer and fellow creator Utkarsh Biradar contributed the same. Biradar left the startup in 2022, but she still owns 30% of the company.
Balakrishnan turned down the single offer he was presented with on the show despite his rising problems. Sharks Peyush Bansal and Vineeta Singh offered 75 lakhs for 33.3% of the company’s equity. Bansal is a co-founder of Lenskart. The company is valued at 2.25 crore in the deal.
Balakrishnan requested a valuation of 25 crores because its business generated 3.4 crores in sales in FY22. At a pre-money valuation of 28 crores, the company received 5.2 crores from angel investors in April 2021. Pre-money valuation, or simply the value of a startup before it gets money, refers to the startup’s worth without considering external finance.
Balkrishnan’s Statement
According to Business Insider, he rejected the offer, Balakrishnan acknowledged that before entering the D2C sector, he needed to adjust his perspective, reassess his priorities, and gain more experience.
“I need to evaluate my priorities in life right now. I will go out there and work with a D2C brand and understand how to do this before I come back and try again. I need a couple of years. But that perspective needs to be built. And the best way to build it is to work with somebody who’s done this before,” Balakrishnan stated on the show.
Shark Tank India advised Balakrishnan to close the business
When Balakrishnan pitched on the show, most Sharks advised him to shut down the company and instead attempt to make a living through a conventional job, utilizing his credentials and experience. However, Mittal also extended an employment offer to boAt’s founder Gupta as he described his own experience traveling the same path.
However, soon after the episode aired, Flatheads Shoes became popular on social media and, as a result, received so many orders that it nearly ran out of stock in India.