- Entrepreneurs: V Sai Meher Krishna & Gunda Nikhil
- Business: Electric Bicycles and Tricycles
- Ask: ₹ 75 Lakhs for 2% Equity
- Valuation: ₹37.5 Cr
- Result: ₹ 1 Crore for 6.67% Equity
- Sharks: Aman Gupta and Peyush Bansal
Shark Tank Pitch:
In the high-pressure environment of Shark Tank India, Gear Head Motors stepped into the limelight with a pitch that turned heads. Their mission was simple yet ambitious: to make electric bicycles and tricycles affordable and accessible to the masses, starting at a wallet-friendly price point of 24,000 INR. What truly caught the attention of the sharks was the impressive 60 km charge range on these electric vehicles.
The brainchild of two visionary founders, Gear Head Motors aimed to cater to the market segment with budgets ranging from 40,000 to 50,000 INR. What set their products apart were the innovative detachable lithium-ion batteries, encased in aluminum for efficient cooling. These batteries could be fully charged in just 2 hours, with larger variants requiring only 3 hours for a full charge. Importantly, every one of their electric bikes was proudly manufactured in India, a testament to the company’s commitment to promoting local manufacturing and reducing reliance on foreign imports.
Shark Tank Negotiations:
While the pitch sounded promising, the Shark Tank negotiations took an unexpected turn. Anupam, one of the investors, raised eyebrows when he questioned the accuracy of the market size figures presented by Gear Head Motors. He voiced skepticism about the projected global and Indian market sizes, which were estimated at a staggering 60 billion INR and 30 billion INR, respectively.
This skepticism was not limited to Anupam alone. Namita and Vineeta, too, harbored doubts and ultimately opted out of the deal, citing trust issues. The entrepreneurs’ credibility was called into question, and it seemed like the promising pitch might go up in smoke.
However, just when it appeared that all hope was lost, a glimmer of optimism emerged. Aman, another one of the sharks, recognized the potential in Gear Head Motors. Alongside Peyush, they made a combined offer of 1 crore INR for a 7.5% equity stake in the company. This offer, though enticing, came with two crucial conditions.
Firstly, previous investors would be evaluated at the same valuation as Aman and Peyush. Secondly, and perhaps most significantly, Gear Head Motors and GHM Labs, a separate entity associated with the company, would merge into a single entity. The merger of these two entities signified a strategic move to streamline operations and strengthen the company’s position in the market.
Recognizing the immense opportunity that lay before them, Nikhil, the founder of Gear Head Motors, agreed to these conditions. The deal was sealed at a valuation of 15 crore INR, with Aman and Peyush acquiring a 6.67% equity share in the company.
What happened to Gear Head Motors after Shark Tank?
Surprisingly, the deal between Gear Head Motors and the Sharks on Shark Tank India did not come to fruition, despite initial agreement during the show. The specific reasons for this fallout remained undisclosed. However, what’s noteworthy is that Gear Head Motors has not let this setback deter its rapid growth.
Since their appearance on Shark Tank India, Gear Head Motors has embarked on a journey of remarkable expansion, firmly establishing themselves as a promising contender in the electric vehicle industry. They wasted no time in diversifying their product line by introducing electric tricycles tailored for cargo and passenger transportation, showcasing their commitment to meeting a wider range of consumer needs within the electric mobility sector.
Furthermore, the company strategically expanded its distribution network through partnerships with prominent online platforms and retail giants such as Flipkart, Amazon, Big Basket, and Reliance Fresh. These alliances allowed Gear Head Motors to access a broader customer base and extend their reach through multiple channels. Additionally, their dedication to innovation shone through as they harnessed IoT and AI technologies to enhance the performance and efficiency of their electric vehicles, positioning themselves at the forefront of technological advancements in the industry. Despite the unexpected turn of events in the Shark Tank, Gear Head Motors remains resolute in their pursuit of growth and success within the competitive landscape of sustainable transportation solutions.
Image Source: Gear Head Motors Instagram
Here are other companies from Shark Tank India Season 2 Episode 4!
1 thought on “How is Gear Head Motors doing after Shark Tank India?”