How is GUD GUM doing after Shark Tank India?

Founders: Bhuvan B Nagori and Mayank B Nagori
Business: Gum
Ask: ₹50 Lakhs for 5% equity
Valuation/ Networth: ₹10 Crores
Funding: ₹80 lakhs for 10% Equity + 4% royalty until 80 lakhs is recouped
Sharks: Anupam Mittal, Vineeta Singh, Aman Gupta and Ritesh Aggarwal
Episode: Season 3 Episode 11

Gud Gum Shark Tank India Pitch:

Gud Gum is India’s first plastic-free and 100% natural chewing gum. These are made from essential oils, fruit extracts, and natural sweeteners, making them kid-friendly and diabetic-friendly. Most importantly, they are biodegradable, unlike other gums. They are available in 9 different flavors and are targeted towards the 22-45 age group. Gud Gum has served more than 17,000 customers and successfully prevented 850 kg of plastics from entering the environment. Gud Gums are available on their own website, Amazon, and in over 120 retail stores across 14 cities. Interestingly, each gum packet also contains a free sticker and a small piece of paper for spitting out.

Gud Gum Financial during Shark Tank:

The India chewing gum market size is 1000 Crores, out of which the organized gum market size is 300 Crores. One packet of Gud Gum is priced at 99, from which a discount of 10.9 is given and 17.8 goes towards GST. Additionally, 23 is allocated for COGS (Cost of Goods Sold), 7 for salaries, 3 for administrative costs, 7 for shipping, and 7 for advertising and marketing spend. Rent and electricity costs amount to 3, with a profit before tax of 20.3.

In FY22-23, they achieved 29.7 lakhs in sales, and in FY23-24 (till November), they reached 53 lakhs in sales, anticipating to close this year with 1 Crore. They have a 50% split between online and offline sales.

Who are founder of Gud Gum?

Gud Gum was founded by Bhuvan B Nagori and Mayank B Nagori. The Gud Gum venture is bootstrapped, with the only loan taken being from their father, which they have already paid back. Bhuvan holds a 50% stake, Mayank holds a 30% stake, and the remaining 20% is held by Mayank’s wife.

Gud Gum Shark Tank India Negotiations & Funding:

Namita believes the product retail price is very high for the small market, and it’s too sweet for her. For these reasons, she chooses to opt out of negotiations. Aman offers 50 lakhs for 5% equity + 5% royalty until 50 lakhs is recouped. Anupam collaborates with Aman and offers 50 lakhs for 10% equity + 5% royalty until 50 lakhs is recouped. Ritesh also offers with Aman and Anupam with the same deal. Vineeta also offers 50 lakhs for 5% equity plus 5% royalty until 50 lakhs is recouped.

Mayank asks Anupam what he thinks of royalty, if it’s good? Anupam says times have changed and he doesn’t think it’s bad, as it keeps the entrepreneur disciplined, which helps them to be profitable. Mayank requests Vineeta to come along. Anupam revises the offer on behalf of the four sharks to 80 lakhs for 10% equity + 5% royalty until 80 lakhs is recouped. Mayank counters with 80 lakhs for 8% equity + 3% royalty until 80 lakhs is recouped. Anupam gives them a last offer of 80 lakhs for 10% equity + 4% royalty until 80 lakhs is recouped. The deal is finalized.