Swimming with Sharks

Cabinet Shrestha of Agni Group and investor-slash-mentor was listening to a pitch recently from a bead shop owner from Chitwan on Himalaya TV’s new hit reality show Shark Tank Nepal.

Shrestha liked what he heard, and offered Sandhya Gaire Poudel of Sandhya Pote House Rs2 million for 35% equity plus profit with an exit after three years.

She had taught herself to make traditional Nepali glass bead necklaces, starting with just Rs5,000 and selling them straight to married women through TikTok. She has trained 5,000 women in necklace making, and with the Rs 2 million investment can expand to take bigger orders all over Nepal.

“So after three years, I give you back 20 lakh?” asked Paudel. Cabinet Shrestha laughed and replied: “20 lakh plus profit, म त ब्यापारी हो नि.”

Cabinet Shreshta handles the Mahindra dealership and has his hand in many other businesses. Paudel gleefully accepted the Rs2 million offer, and there was applause from the studio audience.

Shark Tank Nepal, a franchise reality show, was first launched in Japan in 2001 as ‘Tigers of Money’ and has since been adapted in 54 countries under various names. Entrepreneurs pitch their businesses to a panel of investors, who grill them about the details of their venture before deciding whether or not to extend deals for stakes in the company.

This is the first season with 20 episodes of the show in Nepal, each an hour-and-a-half long on Wednesdays and Thursdays on Himalaya TV, and will soon also be streamed on its YouTube Channel.

Besides Shrestha, the four other sharks are: Hem Raj Dhakal of IME Group, Ritu Singh Vaidya of VOITH Group, Anand Bagaria of Nimbus, and Saurabh Jyoti of the Padma Jyoti Group of Companies. It is gripping television because the audience does not know which pitch will be successful. It is also educational because it shows what entrepreneurship is all about — all one needs is an idea that flies.

But there is a larger message that Shark Tank Nepal is broadcasting: that not everyone is hell bent on leaving the country.

“Its a step in the right direction, and a breath of fresh air,” says Ashutosh Tiwari, an entrepreneurship consultant himself. “The businesses are all different: their age, caste, gender, ethnicity, where they were born or raised in Nepal, what they studied (or didn’t study), and what work they’ve done.”

He continues, “It also shows on national tv the important skill of having to persuade absolute strangers to invest in you. Business plans and advising events is great, but the real help for entrepreneurs comes from the exchange of other people’s cold hard cash that they are accountable for.”

Social media is also a major player in the show. Not only as a medium to promote Shark Tank, with behind-the-scenes and meet-the-shark type content but also as a place where a lot of the businesses being pitched sell their goods.

Most of the business ideas are related to tech, food and beverage, or clothing and skincare, and many of the entrepreneurs are women. Some of the more interesting pitches include a dehydrated carrot cake, a completely organic and bio-degradable skincare brand, and a couple who turned interior design careers into a booming furniture business.

One of the biggest deals accepted was Hem Raj Dhakal’s decision to invest Rs60 million in the tech company Veda which started off as a simple notification app facilitating communication between schools and parents, and grew into an international company that provides complete employee resources for schools including payroll and analytics for student performance data.

“I feel that the sharks have learned as much from the pitchers that they have gotten from us,” says Shrestha. “We’ve learned a lot about markets that we have no expertise in. They have gotten us back in touch about how the younger generation is thinking.”

Shrestha notes that Nepalis seem to be naturally gifted at tech, and he likes to see how the pitchers have ‘localised’ or put their own twists on business ideas. The show has received a lot of positive feedback, especially from young Nepalis studying abroad, some of whom may now be thinking of moving back.

Despite its popularity, Shark Tank Nepal took a long time to get sponsors and entrepreneurs. Director Simosh Sunuwar, known for his adventure-based reality show Himalayan Roadies, says: “It was hard to get participants who were afraid that their business ideas would get stolen with Nepal’s weak trademark laws. Of the applications we did receive, many did not meet all the criteria. Some were missing balance sheets…”

Sunuwar says given how busy the Sharks are, it was difficult to find a stretch of time in which they were all free. “Even when we have them, their phones are going off non-stop,” he says.

The solution was a fifteen-day stretch that worked for all Sharks, with multiple sets of clothes for continuity. By the end, the Sharks were shooting up to 15 hours a day, hearing up to 13 pitches a day. While all the shooting is done early, post-production editing for clarity and length is still ongoing as the episodes air.

Like all of reality TV, how much of Shark Tank Nepal is scripted? Tiwari thinks that the show feels “slick, a little over scripted at times”.

Sunuwar reveals that it is a mix: “As director, I do have to coach the pitchers and the Sharks on how to say certain things, but at the end of the day the Sharks are who they are and they are all very nice and genuine people. My job is to make them comfortable being themselves. They get nervous too.”

The Sharks are quick to sniff out iffy businesses, like a skincare brand that was only packaged in Nepal and claimed competitors were misrepresenting ingredients.

The Nepali version of Shark Tank may lack the drama of the US version, and the Sharks do not live up to the ruthless reputation of the sea predator. This means it is a feel-good show that Nepali audiences prefer. When bowing out of deals, the Sharks are exceedingly graceful, often offering other sorts of help such as networking or contacts to soften the ‘no’.

OLD MONEY

Two or more Sharks often go in together on joint deals, maybe because there are only so many ‘shark-level’ entrepreneurs in Nepal. The funniest parts of the show are when Sharks talk ‘candidly’ in between pitches. But more shark-like Sharks would give the show a more dramatic feel.

In one case, the Sharks agree to fund a business that repackages sanitary pads for ‘CSR’ purposes, which betrays the premise of the show. Some of the criticism online about the choice of Sharks is that besides Hem Raj Dhakal, they all come from old money families, and had considerable head starts in life and business.

“But you can’t fault this right now,” says Tiwari, “there are very few self-made successful entrepreneurs in Nepal, and trading is a legitimate business that has made multimillionaires in the alcohol business in the US, for example.”

The friendlier Sharks do make for more deals, though. In the first season, investment from the Sharks totaled Rs400 million, in contrast to Rs420 million in the Indian version of the show and Rs170 million for the Bangladesh version.

While the show is pioneering, Tiwari notes that it is more glamorous, and glosses over the gritty parts of business in Nepal. “The reality is that there is a government, and a registrar that you have to visit every year. There are rental taxes, penalties, and fines. Businesses don’t get immediate payments, and are often only profitable on paper, which makes it very difficult for them to operate. The investment that they get from the Sharks will give them some working capital, some oxygen.”

Director Sunuwar is grateful for the reception: “It’s great that viewers have welcomed Shark Tank, and I hope it will encourage young entrepreneurs. We’re already getting applications for the next season, and I am excited to make it better, perhaps with different sharks.”