Why Mark Cuban rejected ‘Shark Tank’ engagement ring company Do Amore
Do Amore, Krish Himmatramka’s engagement ring firm, is a dream come true for investors. Their diamond products are carefully sourced and meticulously made, making them a great investment.
After eight years of being launched in 2013, the company made $11.5million in 2021 revenue. On Friday’s ABC “Shark Tank” episode, Mark Cuban rejected Do-Amore because he foresaw competition and believed Himmatramka could not stand against it.
He said, “You are deserving of a lot” as he was a billionaire investor and entrepreneur. It’s difficult to maintain, as anyone else could walk into the doors and attempt to do the exact same thing. You don’t have to be competitive, so it is easy to invest.
Himmatramka started Do Amore, which he said was profitable, after going shopping for an engagement ring himself — and being put off by the moral price tag on some of the diamonds he found. It is not easy to sustain diamond mining, and many of the workers involved in it are underpaid.
Himmatramka’s childhood memories were rekindled by the experience. Himmatramka witnessed a child dying from water poisoning in India when he was a young boy. Seeing firsthand how a lack of clean water could impact communities stuck with him as he built an engineering career, learning that clean water was often available to those communities — they just needed resources to be able to drill for it.
Himmatramka began to set up a business that would address both problems simultaneously. Do Amore was founded by Himmatramka, who used $18,000 of his savings to purchase natural and lab-created diamonds. He strives to find ethical sources with sustainable practices. The company had also donated 20.5% to nine different countries as part of this episode’s production.
The company had sold $26million in jewelry over the lifetime of the company at the time that the taping took place. Himmatramka stated that he needed more financial support to grow the company’s distribution. He asked for $600,000. In exchange, he received 6% Do Amore.
Cuban was one of the first Sharks to reject the deal, explaining that while he was impressed by Do Amore’s revenue and philanthropy, he thought any engagement ring company could simply start donating a percentage of sales to charity — negating Do Amore’s competitive advantage.
“I think that anyone can contribute to the world. [charity]Himmatramka responded, “Stop what they are doing!”
A few Sharks agreed with Himmatramka at most. Kevin O’Leary initially offered $600,000. This was for 6% Do Amore. He also received a $100 royalty on every sale up to three times his initial investment. Lori Greiner advised Himmatramka that he accept O’Leary’s offer, citing O’Leary’s previous experience in wedding industry.
Himmatramka, however, was reluctant to give up and offered $600,000.00 for 10%, with no royalty attached. “What are you going to do with my other companies?” O’Leary asked. I reduce customer acquisition costs. That is the essence of ‘Shark Tank. This space is my backyard.”
Next, Shark Daniel Lubetzky (founder of Kind snack company Kind), jumped in and offered $600,000. For 15% of Do Amore, it was $600,000. Himmatramka replied with 12%. Lubetzky said he wasn’t willing to budge, but would donate the difference between their offers — 3% — toward Do Amore’s social mission.
CNBC Make It asked Lubetzky and Do Amore for clarification on the donation.
Himmatramka accepted Lubetsky’s invitation. Himmatramka stated that Daniel understood the goals of what we were trying to accomplish. “Daniel has spent his entire life working for social change… We are going to give so many people clean drinking water and so many rings.”