Shark Tank India: Meaning of business terms used in the show

Shark Tank India has quickly become one of India’s most popular shows. Except for a few Shark Tank terms, everything is praised by the Indian audience, from the concept to the entertaining judges. Valuation, D2C, Equity, and other similar terms are frequently used, which perplexes every new viewer. Let’s look at the meanings of some of the business words mentioned by the judges on the show.

Also Read| Gold, silver and other metal prices on Monday, January 31, 2022

D2C

D2C refers to Direct-To-Consumer where the consumers do not deal with a middle party. The businesses provide the service and product directly to the consumers. D2C are usually brands that are sold online.

Valuation

Valuation is the total value of a company after a round of fundraising is closed based on the amount raised against the equity shares. Mathematically, If a company sells its 10% equity for 1 Lakhs then its 100% would be marked 10 Lakhs, which will mean that company’s total valuation after this fundraising will be 10 Lakhs.

Also Read| US Stock Market: DJIA, S&P500, Nasdaq and Russell ended in green on Friday

Revenue run rate

Revenue run rate, which is also known as sales run rate or annual run rate, is a method that helps in predicting or estimating the revenue of the company in the coming year based on the previous year’s earned revenue.

Supply Chain

A supply chain is a network between a company and its suppliers to produce and distribute a specific product or service. The entities in the supply chain include producers, vendors, warehouses, transportation companies, distribution centres, and retailers.

Also Read| Stocks that should be on your watchlist on Monday, January 31, 2022

Royalty

A royalty is a legally binding payment made to an individual or company for the ongoing use of their assets, including copyrighted works, franchises, and natural resources.

Equity 

Equity is the amount of capital invested or owned by the owner of a company. The equity is evaluated by the difference between liabilities and assets recorded on the balance sheet of a company.

Also Read| Trending Stocks: Britannia, Saregama, NTPC, IndusInd and others in news today

Turnover 

Turnover is the total sales made by a business in a certain period. It’s sometimes referred to as ‘gross revenue’ or ‘income’. This is different to profit, which is a measure of earnings.

Quick service restaurant (QSR) 

QSR is a restaurant that offers certain food items that require minimal preparation time and are delivered through quick services.

Also Read| Trade Setup: Top 15 things to know before market opens on January 31, 2022

Pre-revenue

Pre-revenue means that a business hasn’t started selling or hasn’t monetized its business yet. 

Patent

A patent is the granting of a property right by a sovereign authority to an inventor. This grant provides the inventor exclusive rights to the patented process, design, or invention for a designated period in exchange for a comprehensive disclosure of the invention.

Also Read| Fuel prices: Petrol priced at Rs 95.41, diesel Rs 86.67 in Delhi on January 31, 2022

The Indian show is based on the original American show of the same name, which aired for 13 seasons beginning in 2009. Shark Tank provides a platform for budding entrepreneurs to present their business ideas and models to a panel of judges known as Sharks in order to persuade them to invest money in their venture.