A married couple from Rajasthan made a remarkable pitch on Shark Tank India Season 4 with their biofuel company, Ecoil. Their innovative startup focuses on collecting waste oil from restaurants and converting it into sustainable biofuel. While discussing their business, they mentioned that biofuel can also be derived from palm oil and meat tallow, but their method is far more environmentally friendly.
The founders revealed their ambition to cater to the growing demand for biofuel in the airline industry, as many governments worldwide are enforcing mandates for greener aviation fuel. Seeking an investment of ₹1 crore for 1.25% equity, they valued their company at ₹80 crore. They further impressed the sharks by sharing their financials, projecting a revenue of ₹26 crore for the year. Notably, Shell India already holds a 4% equity stake in Ecoil, adding credibility to their business.
All five sharks, including new panelist Chirag Nakrani, were intrigued by the pitch. However, investor Aman Gupta raised concerns, stating that once larger companies enter this market, they could simply outprice smaller players. Namita Thapar also backed out, arguing that airlines might prefer carbon offsetting instead of switching to biofuel, making the market unpredictable. Anupam Mittal viewed Ecoil as more of a supply chain business rather than a fuel manufacturer and believed they would always face pricing pressure from bigger players. Ultimately, he decided not to invest.
On the other hand, Ritesh Agarwal saw potential and teamed up with Chirag Nakrani to make an offer. The founders, however, refused to drop their valuation below ₹50 crore, citing concerns that it could create issues with previous investors. To resolve this, Ritesh proposed structuring a part of the equity as advisory shares, which would maintain stability in their cap table. The founders agreed, successfully securing a deal.
Despite tough scrutiny from the sharks, Ecoil managed to prove its worth, securing not only investment but also valuable mentorship from experienced entrepreneurs. Their journey highlights the potential of sustainable energy solutions in India’s growing biofuel industry.
