Shark Tank India 4: Pitchers hide real profit to evade tax; Aman Gupta, Anupam Mittal and Namita Thapar react

In the latest episode of Shark Tank India 4, pitchers admitted to hiding real profit to evade tax. Read on to know how they secured a deal despite tax concerns.

By Shaibalina Choudhury

Updated on Jan 30, 2025 | 09:49 AM IST | 18.8K

(PC: Sony LIV)

The latest episode of Shark Tank India Season 4 took an unexpected turn when the founders of RBD Machine Tools, an agricultural machinery startup, admitted to not fully declaring their profits. Brothers Devendra Kumar Tailor and Bhupendra Kumar Tailor, who hail from a small village in Rajasthan, pitched their business to the Sharks, emphasizing their mission to provide safe and affordable farming equipment.

The duo impressed the panel with their social media-driven sales strategy and strong revenue numbers. However, things took a dramatic shift when Namita Thapar asked about their annual profits. One of the brothers responded, “We declare a different amount, but we make more than that.” This admission immediately raised concerns among the Sharks.

Anupam Mittal was quick to point out that tax evasion could hurt their chances of securing bank loans and government benefits. Kunal Bahl agreed, saying, “If you keep hiding your profits, sure, your company will grow, but it won’t develop an enterprise value.” Due to this issue, he chose to step back from the deal, despite praising their business acumen. “I can’t trust your numbers. If this issue didn’t exist, I would’ve invested,” he added.

The brothers defended their approach, explaining that they follow the advice of their chartered accountant and reinvest most of their earnings back into the business. “If we hire an expert, we trust their recommendations,” said Bhupendra.

Aman Gupta also weighed in, advising them to clear any outstanding tax liabilities to ensure long-term business growth. Despite the concerns, the judges acknowledged the impressive impact of their direct-to-customer sales model, which is handled entirely through call centers.

The company’s financial performance was also noteworthy, with Rs 9.34 crore in sales until September for FY 24-25, Rs 14.37 crore in FY 23-24, and a projected Rs 22-25 crore for the current financial year.

Namita Thapar applauded their entrepreneurial spirit, telling them, “Aap ne MBA nahi kiya, par aap bade bade MBA waalon ki chutti kar doge” (You didn’t study MBA, but you’ll leave top MBA graduates behind).

While Anupam, Kunal, and Aman backed out due to trust issues, Ritesh Agarwal and Namita Thapar made an offer—with a condition. They agreed to invest Rs 50 lakh for 1% equity and provide an additional Rs 50 lakh as a loan at 9% interest, payable after five years, on the condition that the brothers settle their tax dues.

After some discussion, the founders accepted the deal on Shark Tank India 4, walking away happily.