Shark Tank-famed ice popsicle startup Skippi is grappling with a sharp slowdown after rapid expansion, with its FY25 financials and audit notes pointing to deeper operational and regulatory stress.

Employees have faced salary delays, PF dues have not been deposited for nearly two years, and distributors say they are stuck with unsold inventory.

As a result, Skippi’s operating revenue plunged 59% to INR 8.2 Cr in FY25 from INR 20 Cr in the previous fiscal year.

Founded in 2021 by Ravi and Anuja Kabra, the Hyderabad-based startup positioned itself as India’s first exclusive ice popsicle brand offering preservative-free ‘chuskis’.

After its appearance on Shark Tank India Season 1 in December 2021, Skippi’s revenue jumped to INR 15.4 Cr in FY23 from around INR 2.5 Cr in FY22, driven by a surge in brand recall and distributor interest.

The startup, which also sells cream rolls and corn sticks, rapidly expanded its offline presence to over 14,000 outlets nationwide from about 1,200 outlets, while also selling on quick commerce and ecommerce platforms like Zepto, Blinkit, Swiggy Instamart, Amazon and Flipkart.

According to media reports, it was also eyeing an SME IPO and INR 300 Cr revenue in the next few years. However, sources said the post-Shark Tank demand surge was short-lived.

Expansion Backfires, Distributors Stuck

“After the Shark Tank episode, there was a huge demand for Skippi’s products nationwide. This pushed it to expand its distributor network extensively in a short span of time,” one of the sources said.

As the initial hype faded, sales slowed, leaving distributors with excess inventory.

“I’ve been trying to contact the........

© Inc42