Written By: Resham Daswani

Gaining funding from Shark Tank India or another similar platform is generally a major accomplishment in the ever-changing world of Indian entrepreneurship. But numerous businesses yet shows that even after rejection from the show doesn't mean you cannot achieve great things. One way they did it was by using franchising, which helped them expand all over India. This article explores the backgrounds of these businesses, shedding insight on how they overcame early challenges by utilising franchising to establish successful enterprises.

Top 4 Brands Which Were Rejected By The Sharks - Yet Successfully Expanded Via Franchising in India

#1. Theka Coffee's Brewing Success Story

To shake up the Indian coffee industry, Bhupinder Madaan came up with the idea for Theka Coffee, which offers freshly prepared 100% Arabica coffee. in beer bottles. Unfortunately for Theka Coffee, their unique pitch was not enough to land them an opportunity on Shark Tank India.' 

Concerns regarding 

• logistics, 
• product shelf life, 
• and scalability 

Theka Coffee received a lot of attention after the program, which resulted in a big investment of ₹2.5 crore from Zenith Multi Trading, a company based in Dubai, which boosted the company's valuation to ₹100 crore. 

The brand achieved an astounding yearly revenue run rate of ₹60 crore by expanding to over 800 outlets in over 45 cities through the implementation of a sophisticated franchising plan. This trend highlights how franchising can help businesses overcome operational obstacles and achieve fast expansion.

#2. Ethik: The Vegan Footwear Franchise of Tomorrow

Ethik, started by Bengaluru native Pankaj Khabiya, has entered the specialised market for cruelty-free footwear and accessories for men. 'Shark Tank India' judges were impressed with the brand's products and its designs, but they passed on investing because they were worried about the immaturity of the Indian market. Nevertheless, Khabiya saw this as a chance to improve Ethik's commercial strategy rather than a failure.

Ethik targeted franchising as a means of capitalising on the show's visibility. The brand was able to expand its retail presence using this strategy, which avoided the high startup costs often associated with company-owned outlets. 

Ethik successfully expanded into new markets by teaming up with franchisees who believed in the same things the company did, which led to a surge in both awareness and revenue. Reflecting its consistent growth and the feasibility of its franchising concept, the company is presently seeking funding at a valuation of ₹10 crore.

#3. Changing the Game for Last-Mile Delivery with Zypp Electric and Franchise Partnerships

The Gurugram-based company Zypp Electric is trying to change the game for last-mile deliveries with its EV fleet services. Sharks on "Shark Tank India" were unconvinced by the company's pitch because of its disappointing EBITDA, high valuation, and the cutthroat logistics industry. Still, Zypp Electric's goal of electrifying last-mile deliveries in South Asia has not wavered.

Zypp Electric expands its electric vehicle fleet after receiving a sizable $10 million loan from Northern Arc, even though the request had been rejected. Using 1.5 lakh electric scooters, the business aims to cover all of India by 2025. Zypp Electric expands its reach and influence in the green transportation sector through partnering with local companies to handle fleet operations, following a franchising model.

#4. Moonshine Meadery: Fostering Growing Business Opportunities Through Strategic Alliances

In their pursuit of a specialisation in alcoholic beverages, Rohan Rehani and Nitin Vishwas established Moonshine Meadery, which brought mead, a fermented honey drink, to India. They persisted in their fearless pursuit of increasing their market share via distribution agreements and strategic alliances.

Moonshine Meadery reached new heights in several areas through partnerships with distributors and a quasi-franchise model. By taking this route, they were able to bring mead to more people, which helped spread awareness and create a dedicated following. Their achievements demonstrate the significance of strategic alliances in expanding operations and reaching new markets.

Key Takeaways: Franchising's Influence on Overcoming Rejection

Several important lessons for entrepreneurs are available from the stories of these brands:

1. The ability to bounce back quickly from obstacles: Early failures, such as investors' rejection, do not determine the future of a business. Being persistent and adaptable are two of the most important traits for entrepreneurs to have.
2. Franchising in a Strategic Sense: Franchising provides a scalable approach for growth by letting brands make use of local knowledge and resources without sacrificing brand integrity.​
3. Alternative Channels for Market Validation: Shows like Shark Tank India can boost a company's profile and bring in like-minded investors and business associates.​
4. It is critical to tackle logistical and scalability issues directly in order to concentrate on operational excellence. Consistent expansion and happy franchisees are the results of well-designed systems and processes.​
5. Constructing a Group Around the Brand: Interacting with consumers and franchisees creates a feeling of belonging and devotion, which in turn increases brand advocacy and sales.

Is 2025 the right time to buy a franchise in India?

2025 may be an advantageous period for purchasing a franchise in India; however, this is contingent upon your personal and business objectives, economic conditions, and industry trends. Discover the fantastic chances that this year has to offer and the things you need to think about before making an investment.

• Increased disposable incomes and urbanisation will drive franchise company demand in food, retail, healthcare, and education as India's economy grows 6%+ in 2025.
• Growing Demand for Branded & Franchised Experiences: Brand experiences are trusted over unorganised enterprises, making franchise models successful in tier 2 and 3 cities.
• Real estate and mall boom are flourishing: Opportunities for franchise growth abound in the newly developed shopping centres, main thoroughfares, and other business nodes in cities like as Surat, Indore, Lucknow, and Pune.

To make this right, here are some pro tips:

• Companies in fast-growing industries (such as food and beverage, electric vehicles, and healthcare) are a good bet.
• Research the brand's profitability, reputation, and franchisee support to choose the right brand.
• Make sure there is a lot of interest or foot traffic in the area before putting money into it.
• Learn the ins and outs of the franchise agreement and how to negotiate the finest terms for your profit margins.
• Take into account regional opportunities - cities in Tier 2 or 3 provide cheaper rent, less competitors, and increasing demand.

To sum up, 

Although Shark Tank India is a great venue for entrepreneurs, entrepreneurs can still be successful even if they don't get a contract. Brands may turn early rejection into a driver for innovation and expansion in the Indian market by embracing franchising and strategic alliances, which can lead to spectacular growth.

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.