Three founders from Maharashtra entered the Shark Tank India arena to introduce Ezo, their company designed to help small merchants track their sales. The panel of sharks, including Anupam Mittal, Namita Thapar, Ritesh Agarwal, Kunal Bahl and Aman Gupta, listened intently as the founders said their aim was to reduce skimming in small businesses. However, the debate quickly came to light, revealing deeper issues.
The founders explained that their revenue model was to sell billing machines to merchants and make money through subscriptions. When asked if they had tested renewals, they admitted that they hadn’t been in business long enough. Despite this, they projected a revenue of ₹30 crore, leaving the sharks perplexed. Further analysis of their finances revealed their use of questionable accounting practices.
Namita Thapar explained the difference between cash and accrual accounting for the group, emphasizing that the latter provides a clearer picture of a company’s performance. She bluntly stated: “Accrual accounting gives a more accurate picture of a business and is still the preferred method. »
Anupam Mittal, visibly unimpressed, remarked, “Puri daal hi kaali hai boss. » He rejected the founders’ claims that their accounting choices were unintentional, saying: “You’re a pro; Don’t act like you don’t know what you’re doing. Namita agreed, calling it a matter of integrity rather than just a matter of accounting.
Ritesh Agarwal and Namita Thapar withdrew from the deal, citing a lack of confidence in the company and advising the founders to correct their accounting practices. Aman Gupta, while acknowledging their business acumen, said, “You want to break the subscription model in a country where even Amazon and Netflix are struggling? Don’t make money through shady practices.
