Controversy Surrounds Palmonas on Shark Tank India
In a recent episode of Shark Tank India, the demi-fine jewellery brand Palmonas found itself at the center of a heated debate. The brand, co-owned by Bollywood actress Shraddha Kapoor, faced scrutiny over its warranty claims. Founders Pallavi and Amol pitched their business, seeking Rs 1.26 crore for a 1% equity stake, which would value their company at Rs 126 crore. However, the discussion quickly shifted from their business model to the integrity of their warranty policy, leading to a tense exchange with investor Vineeta Singh.
Shraddha Kapoor’s Stake and Absence from the Show
During the pitch, the sharks were eager to learn about Shraddha Kapoor’s role in Palmonas. The founders revealed that she holds a 21% stake in the company. Interestingly, Shraddha discovered Palmonas organically through social media. Pallavi shared that the actress purchased several items before they approached her for a collaboration. Despite her significant stake, Shraddha’s absence from the show raised questions. Pallavi explained that pitching was not within the actress’s comfort zone, which led to her decision to stay away from the spotlight during the episode. This absence did not go unnoticed, as the sharks expressed curiosity about her influence on the brand and how her celebrity status might affect its marketability.
The Valuation Debate and Namita Thapar’s Offer
Palmonas projected a revenue of Rs 35 crore for the current year and had already secured Rs 6 crore in angel funding at the same Rs 126 crore valuation they presented on the show. However, the sharks had differing opinions on this valuation. Aman Gupta expressed skepticism, offering only Rs 20 crore, significantly lower than what the founders sought. In contrast, Namita Thapar matched the founders’ valuation but included a 1% royalty clause in her offer. This proposal sparked immediate rejection from Pallavi, who felt the royalty was unnecessary. Namita defended her position, arguing that her expertise and network could provide substantial value to the brand. The negotiation highlighted the challenges startups face in securing funding while maintaining their desired valuation.
Vineeta Singh Calls Out ‘Lifetime Warranty’ Claim
The most intense moment of the episode came when Kunal Bahl scrutinized Palmonas’ ‘lifetime warranty’ policy. He discovered that the warranty was not as comprehensive as it appeared. Instead of offering full replacements or refunds, the company provided a percentage of the order cost as store credit after a specific period. This revelation shocked Vineeta Singh, who called out the misleading nature of the warranty. She stated, “This isn’t a lifetime warranty. Jab customers ko pata chalega ke lifetime warranty ke naam pe unhe thugga gaya hai, toh brand pe impact hoga?” Her concerns centered around the fact that customers receiving Rs 400 in store credit for a Rs 3,000 product would feel cheated. This exchange raised important questions about transparency and customer trust in the jewellery industry.
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