In one of the most memorable pitches on Shark Tank India, the founders of the demi-fine jewellery brand Palmonas, Pallavi and Amol, took center stage. Unlike many entrepreneurs, they weren’t just selling a product but telling an engaging story that led them to this point. Their brand, Palmonas, bridges the gap between artificial and fine jewellery, offering pieces that are more affordable than fine jewellery but have the luxury of being plated with a thicker layer of gold compared to lower-end artificial alternatives.
How Shraddha Kapoor Became Part of Palmonas
What makes Palmonas even more unique is that Bollywood actress Shraddha Kapoor is one of its co-founders, holding a 21% stake in the company. Pallavi and Amol shared an intriguing story about how Shraddha became involved with the brand. Pallavi recalled scrolling through Instagram when she discovered that Shraddha Kapoor had worn one of their pieces. A fan had commented on her post about the necklace, and Shraddha had replied, saying she had purchased five more pieces because she loved it so much. Upon further investigation, Pallavi found that a customer with the name “S Kapoor” had been buying from them without the brand realizing it was the actress herself.
Determined to connect, Pallavi posted a Reel on Instagram with the caption “Shraddha wears Palmonas,” hoping the message would reach her. And it did. A few weeks later, while eight and a half months pregnant, Pallavi flew to Mumbai to meet Shraddha, and the partnership was born.
The Pitch: A Bold Ask with Big Expectations
The duo was on Shark Tank seeking Rs 1.26 crore in exchange for a 1% equity stake, valuing Palmonas at Rs 126 crore. This hefty valuation naturally caught the attention of the sharks, who were keen to learn more about the brand’s growth and future potential. While Shraddha’s absence raised questions, Pallavi explained that the actress, who had been more involved in the early stages, felt pitching might not be her forte. Thus, Pallavi and Amol confidently took on the challenge themselves.
During the pitch, Pallavi revealed that Palmonas was projecting Rs 35 crore in revenue for the current year, and they had already raised Rs 6 crore in an angel investment round at the same Rs 126 crore valuation. The valuation, however, was a sticking point for some of the sharks.
The Sharks’ Reactions and Offers
Aman Gupta, co-founder of boAt, immediately questioned the valuation, stating that he couldn’t justify matching the Rs 126 crore valuation, but he still expressed interest in the brand. He offered Rs 1.26 crore for a 6% equity stake, effectively valuing Palmonas at Rs 20 crore. This offer was quickly shot down by Namita Thapar, who felt the valuation was too low.
Namita, on the other hand, decided to offer them the Rs 1.26 crore for 1% equity at the valuation they had requested, but with one condition: she demanded 1% in royalties. Pallavi firmly rejected this request, explaining that Palmonas wasn’t willing to compromise on royalties. Namita tried to convince the founders by presenting her vast expertise and the value she could bring in return for the small royalty payment, but Pallavi and Amol remained steadfast.
Meanwhile, Kunal Bahl raised a red flag when he asked about the company’s “lifetime warranty” claim. Pallavi, after some clarification, admitted that the company didn’t provide a full lifetime warranty. Instead, the brand offers a partial refund or store credit after a certain number of years, depending on the product’s condition. For instance, Palmonas offers a 15% store credit for jewellery after five years of use, but customers must return the items for a percentage of their original purchase value. This revelation caused Vineeta Singh to express her disbelief, as she felt that such a misrepresentation could have a significant negative impact on the brand’s reputation. She questioned how customers would react once they discovered the truth about the “lifetime warranty.”
The Deal: Namita and Ritesh Offer a Final Proposal
After several tense moments and differing opinions, Ritesh Agarwal, Founder of OYO Rooms, joined forces with Namita, making a combined offer. They proposed the original Rs 1.26 crore for 1% equity at the desired valuation, but with the inclusion of 1% royalties. Pallavi and Amol, however, needed more time to deliberate on the offer.
As the founders took a brief break, Kunal Bahl advised Namita to reconsider her stance on royalties. He noted that, even without the royalties, she could easily earn back her investment multiple times over due to the brand’s potential. Namita, however, remained confident that Pallavi would come around, asserting, “She’ll agree, you wait and watch.”
When Pallavi and Amol returned, they once again reiterated their refusal to accept royalties. Namita, undeterred, reaffirmed that her expertise, network, and experience would offer much more value than the Rs 50 lakh they were asking for in royalties. This time, much to everyone’s surprise, Pallavi agreed to the deal.
Aman Gupta, visibly impressed by Namita’s persistence and strategy, looked at her and folded his hands, admitting, “You’re the real shark.”
What’s Next for Palmonas?
This episode of Shark Tank India was one of the most exciting and dramatic moments of the season. The combination of celebrity backing, an impressive pitch, and the heated negotiation between the sharks showed the intense world of entrepreneurship. Palmonas has already made a name for itself in the demi-fine jewellery space, and with the guidance and support from Namita and Ritesh, the brand is poised for even greater success.
As the beauty and jewellery industry continues to evolve, Palmonas could very well emerge as a major player in the market. With its unique blend of affordable luxury, high-quality products, and a growing customer base, the brand is definitely one to watch in the coming years.
