Biography of Gaurav and Rishikesh: Founders of EZO Billing Machine -Entrepreneur
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EZO Billing Machine: A Bold Idea That Stumbled on Shark Tank India
EZO, a Maharashtra-based startup, set out to revolutionize
billing for small and medium businesses in non-metro cities. Founded by Gaurav,
Makrand Kate, and Rishikesh, the company introduced an affordable billing
machine priced at ₹6001, aimed at simplifying shop transactions. Their goal was
to help shopkeepers transition from manual billing to a digital-first approach,
making accounting and record-keeping seamless.
The Vision Behind EZO
The idea for EZO was born from conversations between school
friends Gaurav and Rishikesh, who had long aspired to build a business
together. After their first venture failed during the COVID-19 pandemic, they
regrouped and teamed up with Gaurav’s brother, Makrand, to create a solution
that would make digital billing accessible to even the smallest shops.
Bridging the Digital Gap for Shopkeepers
Understanding the struggles of traditional shopkeepers, the
founders designed EZO’s billing machine to be easy to use and cost-effective.
With just two clicks, shopkeepers could generate bills and track their daily
transactions on mobile devices. The system supports 12 Indian languages,
ensuring accessibility for a wide range of users. Additionally, EZO provided
manuals and training to help shopkeepers adapt quickly.
The Business Model
EZO’s revenue model combined hardware sales with an annual
subscription. Each machine came with a one-year subscription, and renewals cost
₹3000 annually. This approach ensured recurring revenue and positioned EZO as
an affordable alternative to costly billing systems. The company claimed to
have digitized over 35,000 shops across 600 cities, particularly in underserved
areas.
Biography of Gaurav and Rishikesh: Founders of EZO Billing Machine -Entrepreneur #startup#age#net worth#investor#shark tank india#EZO Billing Machine
A High-Stakes Pitch on Shark Tank India
EZO’s founders entered Shark Tank India with high hopes,
seeking ₹50 lakhs for 0.33% equity, valuing the company at an ambitious ₹150
crore. They emphasized their product’s simplicity, strong demand, and
impressive reach. However, as the discussion progressed, the sharks began to
uncover inconsistencies in the company’s financial claims.
The Accounting Controversy
As the sharks probed into EZO’s revenue model, they found
discrepancies in its financial reporting. Namita Thapar pointed out that the
company used cash accounting rather than accrual accounting. This method
recorded revenue when cash was received rather than when it was earned, making
the company’s financials appear stronger than they actually were.
Integrity Under Scrutiny
Anupam Mittal was particularly vocal about his concerns,
bluntly stating, “Puri daal hi kaali hai boss.” He accused the founders of
intentionally inflating their numbers to appear more successful than they were.
Namita Thapar reinforced this concern, saying that it was not just an
accounting issue but a question of business ethics and integrity.
Sharks Walk Away Without a Deal
Despite their initial interest in EZO’s product, the sharks
ultimately decided against investing. Anupam Mittal rejected the pitch outright
due to trust issues, while Namita Thapar and Kunal Shah criticized the lack of
financial transparency. The founders attempted to justify their accounting
practices, but their explanations failed to convince the panel.
Challenges Beyond the Pitch
Beyond the accounting controversy, EZO also faced
operational challenges. The company projected ₹30 crore in revenue for the year
but had not yet tested whether customers would renew their subscriptions.
Additionally, EZO was losing over ₹1 crore annually, raising doubts about its
long-term sustainability.
A Lesson in Financial Transparency
The EZO pitch highlighted the importance of accurate
financial reporting for startups seeking investment. As Namita Thapar
explained, accrual accounting provides a more realistic picture of a company’s
financial health and is the preferred method in business. The sharks' reaction
to EZO’s accounting practices served as a cautionary tale for entrepreneurs
about the significance of trust and transparency.
The Road Ahead for EZO
Despite leaving Shark Tank India without funding, EZO
remains operational, continuing to serve small businesses across India.
However, the company must address its financial and ethical concerns to regain
investor confidence. If the founders can improve their business practices and
build trust, they may still find success in the growing digital billing market.
A Tough But Valuable Experience
While EZO’s founders faced tough criticism on Shark Tank
India, their journey is far from over. The experience provided them with
crucial insights into the expectations of investors and the importance of
financial integrity. If they take these lessons to heart, they may still have
the opportunity to transform their startup into a sustainable business.
Timeline for story
2020 – Gaurav and Rishikesh's first venture fails during
COVID-19.
2021 – They regroup with Makrand to launch EZO.
2022 – EZO introduces its ₹6001 billing machine.
2023 – EZO claims to have digitized 35,000+ shops across 600
cities.
2024 – EZO pitches on Shark Tank India, but faces financial
scrutiny and leaves without a deal.
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