Two young entrepreneurs stepped onto the Shark Tank India stage with a bold vision. They introduced CoGrad, an initiative aimed at reviving defunct schools in remote villages and transforming them into quality educational institutions. Their model involved renting these abandoned facilities, rebranding them, and offering students a state-of-the-art curriculum at an affordable fee of just Rs 500 per month. Their ultimate goal was to impact 4 lakh students over the next ten years. Coming from small villages in Uttar Pradesh themselves, they deeply understood the importance of quality education.
Their mission resonated with the panel of investors. Ritesh Agarwal was particularly moved when the founders shared that 60% of their students were young girls. They also shared the story of a mother with three daughters who faced societal criticism for not having a son but remained determined to provide her daughters with the best education. Ritesh felt chills hearing this and was even more intrigued when the founders compared their model to his own company. “We call it the OYO of schools,” they said, drawing a smile from him.
However, the discussion took an unexpected turn when they revealed a surprising revenue model. Instead of relying solely on student fees, the bulk of their income came from training programs for teachers and students, which accounted for 80% of their earnings. Their expected revenue for the year stood at Rs 10 crore. This revelation concerned Kunal Bahl, who felt they were veering away from their core mission. He decided to step back from the deal, explaining that they seemed too focused on financial gains rather than their educational vision. Anupam Mittal agreed and advised them to narrow their focus. The founders defended their strategy, explaining that these training programs allowed them to reinvest in their schools, which remained their top priority.
Ritesh, now convinced, stepped forward with an offer. He proposed a partnership with Namita Thapar, recognizing her expertise as a valuable addition. However, he did not initially include Vineeta Singh, who had shown interest in investing. She remained silent as the negotiations progressed, exchanging glances with Ritesh and Namita. The founders, sensing an opportunity, urged all three sharks to collaborate. After some deliberation, Vineeta was brought into the deal. Together, they offered Rs 50 lakh for 6% equity and an additional Rs 50 lakh as a three-year debt investment.
The young entrepreneurs were thrilled. They agreed to the condition set by the investors, promising to shift their focus entirely to CoGrad within a year. With the backing of three influential sharks, they left the stage ready to take their venture to greater heights.