Flatheads is a shoe brand from Bengaluru that manufactures lightweight and comfortable shoes.
In the words of Flathead founder, Ganesh Balakrishnan, they create “t-shirts for your feet”. These shoes are built with natural materials, like linen, bamboo fiber, and banana fiber.
More About Flatheads
Ganesh Balakrishnan, the founder of Flatheads shoes, is a mechanical engineer from IIT Bombay. Before Flatheads, Ganesh co-founded 3 different startups. Ganesh co-founded Momoe which was acquired by Shopclues. After completing the lock-in period there, Ganesh started thinking about another venture that became Flatheads.
Ganesh wanted to pursue this idea due to 2 main issues most people face →
- Sweating issues
- Fitting problems
Ganesh was struggling with his business when he appeared on Shark Tank India Season 2. His co-founder left. He had already burned INR 10 crores of funds from angel investors, and his business was at a loss.
Flatheads Shark Tank Pitch and Updates
Ganesh appeared on Shark Tank India Season 2 Episode 5, asking INR 75 lakhs for a 3% equity at a valuation of 25 crores.
All sharks were impressed by the comfort Flatheads provided. However, Aman had some concerns about the style. Ganesh countered it by saying that his shoes are designed to provide comfort at an affordable range to everyone.
He’s also working on getting some high-priced products out in the market. It’s one of the reasons he’s seeking capital in the Shark Tank India. Another reason is that his co-founder transitioned to a different venture, and Ganesh is looking to buy back his 30% equity.
In FY2021-2022, Flatheads generated a revenue of INR 3.4 crore. The gross margin on the cost of goods is 60%. However, they registered a loss of 20% overall. Another thing that concerned judges was that Ganesh raised INR 5.4 crore in his last round of funding. And then, he was seeking INR 75 lakh at the same valuation.
Ganesh got emotional while answering this question. He mentioned that his runway was almost over. A month ago, the sales were INR 15 lakh, and the cash burned was INR 5.5 lakhs.
The pitch did not go as expected by Ganesh. Peyush raised concerns that investors backed out from the venture already. Aman said that in Ganesh’s business, the basics of the 4 Ps (Product, Price, Promotion, Place) were missing.
However, Namita applauded Ganesh’s honesty. But she was the first one to get out of the deal. Vineeta felt that there was no product-market fit yet and their money would burn away just like the INR 10 crore raised before. Peyush offered Ganesh INR 75 lakh at 33.3% equity. Vineeta joined Peyush in this offer.
|Profitability||The brand is not profitable|
|Shark Tank Episode||Season 2 – Episode 5|
|Asked For||INR 75 Lakh for 3% equity|
Ganesh did not accept the offer as he felt he had to reevaluate his priorities in life. He said he would try working with a DTC brand to understand and learn how to do this and will come back.
Frequently Asked Questions About Flatheads
After their appearance on Shark Tank India Season 2, people were trying to find more information about Flatheads. Here are some of the frequently asked questions about them.
1. Who Is The Founder of Flatheads Shark Tank?
Ganesh Balakrishnan is the founder of Flatheads.
2. Is Flatheads profitable?
Flatheads made INR 3.4 crore, with a loss of 20% in FY 2021-2022.
3. Why did sharks not invest in Flatheads?
Namita felt that her funds would burn in the next 3-4 months, and the business would shut down. Anupam offered Ganesh a job and promised he’ll invest once he was ready again to build a DTC brand. Aman said he’ll bet on Ganesh but can’t bet on his company as basics are missing and got out. Ganesh did not accept the offer
4. What happened to Flatheads after Shark Tank?
Even though Ganesh did not accept the shark’s offer, it seems Flatheads is doing better now. Ganesh claimed that after the Shark Tank season 2 episode 5, their inventories were sold out in India. He urges people to ask their friends in US and UAE to try Flatheads.