Plus Gold Update | Shark Tank India Season 03
Founder of Plus Gold fintech startup Veer Mishra and Raj Parakh pitched in Shark Tank India (Season 03), seeking ₹60 lakh for 1% equity.
In the pitch, the founders said that Indian women possess 25,000 tons of gold, which is even higher than the US gold reserve. Most sharks were confused with this business model, and they thought it was a high-risk business.
However, Varun Dua found this business investible and offered ₹60 lakh for 1.5% equity. The founders accepted Varun’s offer and happily left the show. But was this deal actually closed off the camera? Find out everything in the Plus Gold update!
| Company Name | Plus Gold |
|---|---|
| Founders | Virendra Mishra, Raj Parakh, Vaishali Sinha |
| Founded | 2024 |
| Product | Gold FinTech service |
| Ask | ₹60 lakh for 1% equity |
| Deal | ₹60 lakh for 1.5% equity |
| Sharks | Varun Dua |
Plus Gold Shark Tank Update
Veer Mishra and Raj Parakh pitched in Shark Tank India to raise ₹60 lakh at a company valuation of ₹60 crores. ACKO founder Varun Dua found this an investment opportunity and offered ₹60 lakh for a 1.5% stake in the company.
Plus Gold got a deal in Shark Tank India from Varun Dua. We checked Varun Dua’s investment portfolio, and there’s no information about Plus Gold. It seems like the agreement hasn’t been finalized yet.
However, our team follow-up entrepreneurs and businesses appeared in Shark Tank. It’s too early for an update! Let the dust settle first, and we’ll come up with a fresh Plus Gold update very soon.
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About Plus Gold
Veer Mishra & Raj Parakh founded Plus Gold FinTech startup in 2024. It is an easy-to-use gold and jewelry savings app. Its users can save a customized amount each month, which is then invested in RBI-regulated assets.
Unlike the traditional plans where there is no option to change a jeweler. Here, users can purchase jewelry from any of the partner jewelers at a discounted price.
Plus, it also gives a 10% internal return on Investment, which the users can withdraw without penalty. They already claim to have acquired 20,000 customers.
The founder’s vision is to acquire as much as of the total jewelry savings market in the next 5 years.
Plus Shark Tank India Pitch Recap
To accomplish their vision, the founders made an ask of ₹60 lakhs at 1% equity at a valuation of ₹60 crores.
The founders gave a complete demo of their app. The Plus app has two types of savings. There is an option for monthly savings, which gives 10% IRR, and One-Time savings, which gives 10% fixed returns.
Plus, the app has a digital passbook that provides users convenient access to their savings and enables them to utilize other platform features.
The founder explained that they have also partnered with 300+ jewelers. Users can also book appointments directly through the app.
Aman: Your app doesn’t make sense to me. It is just a savings app where you also recommend jewelers. That’s it.
Founder: We have focused on jewelry because there is a huge need for innovation in this market.
Anupam: Look, you are giving general answers. What you are trying to do has nothing to do with jewelry.
Varun slightly disagreed with Anupam’s statements and said that the Plus guys are basically trying to package the complete perceived value here.
Anupam: So, what I understand is that you guys are working as an affiliate and keeping commissions. But who is giving you that?
The founder answered that they get an Interest Rate Return of about 12% from an NBFC, which is an RBI-recognised body. They return 10% of it to the customers and keep the rest at 2%.
Radhika: What is the underlying risk to this NBFC to whom you are giving this money?
Founder: NBFC only lends to people whose credit score is higher than 750, and they only allow credible platforms.
Vineeta: So, it is similar to how other apps like CRED are making money. This is a very high-risk business.
Anupam: This feels like you are asking people to invest in someone who claims that they are the best investor. The whole world thinks like that. You should call your app risk-free. It is not true.
The founder agreed that there is a risk factor involved for the user. That’s why they also integrate fixed deposits and other safer asset classes.
Varun: Then, you won’t be able to give 10% returns.
Founder: Yes, we will disclose everything and be transparent, and it will be the users’ choice.
The discussion then went towards sales. The founder revealed they have already saved ₹45 lakhs on their app.
Anupam: I think the jewelry market is very exciting. But your business is not a jeweler business. You are a savings and wealth management app. And you guys still don’t have any clarity. So, I am out.
Vineeta: I think that your lack of judgment when investing in a risky asset is highly questionable. If I were a user, I wouldn’t want to invest in an app that takes such steps. I am also out.
Radhika: I don’t find your use case appealing. Also, your understanding of regulations is extremely weak. You guys are standing in a grey area. I am out because of this.
Aman gave an example of how Indian moms trust people like their local jewelers because they are risk-free. So they will never trust your app. He also went out of the deal.
Varun: If your IRR is decreased to 4-5%, then will your business model work?
Founder: Yes, it will work. The jewelers are giving huge discounts so we will manage.
Varun then decided to take a bet on them and offered ₹60 lakhs at 1.5% equity. The founders quickly agreed, and the deal was finalized.
Final Words
Investing Apps are always standing at the border of being risky vs risk-free. Any slight shock can send them to a grey zone where their users won’t like standing with their investments. This is why trust is so essential when it comes to running such businesses. Only time will tell if the Plus app gains that or if it fizzles away just like many others.
