Shark Tank India 4: Cograd Secures Investment Despite Facing Tough Questions:

The entrepreneurship reality show Shark Tank India Season 4 last episode featured a firm called Cograd, which is a social venture aimed at providing quality education to students and teacher’s training in villages at a subsidized rate. Cograd was started in 2021 by IIT and NIT graduates Himanshu Chaurasia and Saurabh Yadav. Cograd’s business model involves renting out closed schools, which are then converted into modern centers of learning. Their pitch sought Rs 1 crore for 2% equity.

In addition, the company has five operational schools that cater to students between Class 1 to Class 8. To Anupam Mittal’s amusement, he said "Humne picturein kuch zyada he dekh li, maine kuch aur he visual kiya, pedh ke neeche bacche baithe hue hain. Mera khud ka ab school jaane ka mann ho raha hai,” as he was shown the images of the school buildings located in the village.

These students are also active participants of different competitions and conclaves from reputed Indian Universities. “Mere rongte khade ho gaye aapki baatein sun kar,” a famous Indian politician Ritesh Agarwal said as he recounts their success stories.

Ritesh inquired whether the schools are posting deficits in operating profits or losses. From the look of it, other businesses seem to be capturing their attention. The founders agreed that they are doing other businesses, but maintained that they intend to scale up. However, Kunal Bahl mocked them by saying “Isiliye toh nahi ke ghar aayi Lakshmi ko mana nahi kar paa rahe?”

Anupam noted that having a plan to set up a thousand schools entails far more aggressive scaling than they appear to be doing. Kunal challenged them that if they were focusing school expansion, how many new schools have been started this year, and they confessed to not a single school. The Sharks then argued, and thought perhaps they were unclear about the problem they were trying to solve.

Kunal was giving them advices about one of the famous entrepreneurial pitfalls which is starting with a vision and getting distracted with funding opportunities. He and Anupam finally decided to step out, having no plans to achieve.

But, Vineeta Singh could not restrain herself after looking at the effort put in and narrating her childhood story of her father, who struggled in his early years, but was an acclaimed scientist in AIIMS Delhi, inspiring many children.

She accentuated the fact that education remains the only and the most powerful weapon to change the world for the better. Motivated by the cause, she proposed a funding plan of 50 lakh for 10% stake in the company plus an additional 50 lakh loan at 10% simple interest over three years, on the condition that they will only operate schools.

They entered with a rival deal which was an offer of Rs 50 lakh for 5% equity and 50 lakh in a repayable loan with an interest of 9%, also with the guidance to focus on the school expansion as well. This was the offer from Ritesh and Namita Thapar.

Their new offer was Rs 50 lakh with 2.5% equity and 50 lakh in debt, which was later adjusted into Rs 50 lakh for 6% equity with the debt of $50 million, but without any interest. Saurabh and Himanshu offered 50 lakhs, along with interest set at 9% for the case of 50 lakh being used as debt. The deal came to an end when Ritesh Vineeta and Namita agreed to support Cograd’s mission.

While they were scrutinized, the funds were still acquired by Cograd. But questions regarding the actual intent to increase rural education still linger.