$500M+ Exit Indian Entrepreneur Says ‘Stop Trading Equity for Validation’

Siddharth Shankar's journey reveals why treating equity as 'fundraising currency' destroys long-term value NEW DELHI, SEPTEMBER 19, 2025 - Siddharth Shankar, who recently sold his consumer brand company Tails Group for over $500 million, is challenging Indian entrepreneurs to rethink their relationship with equity funding, arguing that too many founders are trading away ownership for investor validation rather than building sustainable businesses.

The Seven-Year Bootstrap Journey Starting his entrepreneurial journey at 18 during engineering college days, Shankar built Tails Group entirely through bootstrapping, growing it to over 200 owned brands serving 150,000 customers globally with $8 billion turnover before his 2024 exit - all without external VC funding.

"Your equity is a part of you - it's your baby. Why would you sell it for external validation?" Shankar explains in a recent appearance on ‘Beyond the Noise’ podcast.

The Equity Trap Destroying Indian Startups Now, through his work with global distributor Komerz, Shankar witnesses daily what he calls "the equity tragedy" playing out across Indian startups. Entrepreneurs who could build sustainable businesses are instead trading away their life's work for what he terms "expensive business cards." "I see founders who've built amazing products, have real customers, generate actual revenue - and they're giving away 20-30% of their company just to say 'We're backed by so and so,'" Shankar explains. "They're not raising money because they need it. They're raising it because everyone else is, because it feels like success." The mathematics are stark: "By the time they want to expand globally or make major decisions, they own 40-45% of something they created. Every strategic decision needs board approval from people who've never spoken to their customers." The Consumer Cost of Cheap Equity For consumers, this equity dilution translates into compromised products and experiences. Shankar points to a fundamental disconnect: "When you're reporting to investors instead of customers, everything changes. Product decisions get made in boardrooms, not by understanding customer needs." Through Komerz's work with international brands like Unilever and Diageo, he observes how Indian startups struggle with global expansion precisely because of their funding structures. "Investors want quick returns from D2C platforms. But real consumer brands are built through relationships, offline presence, and long-term thinking that funded companies can't afford." The Bootstrap Alternative That Consumers Love Shankar's approach was radically different.

"Every decision was made by looking at customer behaviour, not investor presentations. When we expanded to new markets, it was because customers were asking for it, not because the board wanted growth metrics." This customer-first approach, enabled by complete equity control, allowed Tails Group to build authentic relationships across 150,000 customers globally.

"Your customers don't care about your funding round. They care about whether your product solves their problem better than alternatives." A Wake-Up Call for India's Next Generation As India's startup ecosystem matures, Shankar's message resonates with entrepreneurs watching peers trade equity for validation.

"Your equity represents every sleepless night, every customer conversation, every product iteration you've made. Why would you sell that for external validation?" His advice to consumer-focused founders is uncompromising: "Stay focused, understand your brand, and live and breathe it. Nobody can represent your brand better than you. But first things first - treat your equity like your life's work, because that's exactly what it is." For entrepreneurs ready to challenge conventional funding wisdom, Shankar's full methodology and insights are available on the Beyond the Noise podcast.

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