Gear Head Motors is a brand that manufactures affordable electrical bicycles and tricycles. Their fully-charged cycles can cover 60 km. Hence, they are best for short-distance traveling.
More About Gear Head Motors From Shark Tank India
Their vision is to make their e-vehicles a household name, just like smartphones. Nikhil has an engineering background. During his engineering days, he started a coffee shop. He then sold the coffee shop for INR 75,000 to a guy from his college.
He also created an app called Amigo (QR scanner) to take pre-orders for the coffee shop. And after it was shut down, he started using that app in restaurants and became the founder of a new company. Within 6 months, they were covering more than 300 restaurants. Later, they sold the Amigo to a local POS company for INR 2 crore.
After that time, Nikhil met Meher. Meher was Nikhil’s senior in college. Both of them set up Gear Head Motors. It started as a bicycle company. But after being approached by a specially-abled person, they also started designing tricycles.
This idea originated when electric scooties from branded companies were sold at INR 1-1.5 lakh in the market. Nikhil noticed that the market of vehicles, sold at 40,000 and 50,000, was in decline. They started targeting that market.
First, they created an electric car by replacing the engine with an electric engine and placing batteries. The cost was coming around INR 1.5 lakh. To save this cost, they decided to manufacture electric cycles.
Their electric bicycles have different models, namely L, I, F, and E. Their EV has a detachable lithium-ion battery that comes with an aluminum casing to cool it down constantly. The small battery takes 2 hours, and the bigger one takes 3 hours to fully charge.
Gear Head Motors Shark Tank Pitch and Updates
Nikhil and Meher appeared on Shark Tank India Season 2 Episode 4 and demanded INR 75 lakhs for 2% equity at a valuation of INR 37.5 crore.
Nikhil holds 60% shares of the company, while Meher has 40% equity.
Their sales in FY 2021-22 were INR 3 crore. They sold 1500 EV tricycles to the government in FY 2021-22. By the time they appeared on Shark Tank India, their sales were INR 1.5 crore for FY 2022-23.
Their July sales were INR 50 lakhs. They made INR 8 lakhs profit out of those sales. They also have a contract with a government agency of INR 20 crore for EV tricycles.
Nikhil and Meher have registered 2 separate entities to raise funds. The second entity, GHM Labs Pvt Ltd, raised INR 3 crore at a valuation of INR 15.60 crore. Peyush and Aman said Gear Head would only get a deal on Shark Tank if they merged both entities.
Meher and Nikhil changed the offer to INR 1 crore for 3% equity with both companies merged.
Vineeta was the first to say no to Gear Head Motor’s offer because she believed it was a confusing and risky proportion. Anupam also dropped the deal for two issues.
First, Nikhil and Meher couldn’t explain the marketing size properly and gave incorrect numbers. And second, he felt Nikhil was slippery and kept changing his statements. Namita was out because of the trust deficit.
Peyush and Aman offered a combined deal of INR 1 crore at 7.5% equity at a valuation of INR 13.33 crore. He gave two conditions – the valuation must be the same as the previous investors, and both entities must be merged.
Nikhil said they wanted to keep the previous evaluation of INR 15 crores. Aman and Peyush accepted it.
|Company Name||Gear Head Motors Electronics Pvt Ltd|
|Founders||Gunda Nikhil and V Sai Meher Krishna|
|Business||Electric bicycles and tricycles|
|Profitability||Business is profitable|
|Shark Tank Episode||Season 2 – Episode 4|
|Asked For||INR 75 Lakhs for 2% equity|
|Deal||INR 1 crore for 6.67% equity|
|Sharks Invested||Aman Gupta and Peyush Bansal|
|Valuation Given||INR 10 crore|
Gear Head Motors got a deal of INR 1 crore from Aman Gupta and Peyush Bansal for 6.67% equity at a valuation of INR 15 crore.
Frequently Asked Questions About Gear Head Motors
After their appearance on Shark Tank India Season 2, people were trying to find more information about Gear Head Motors. Here are some of the frequently asked questions about them.
1. Who Are The Founders of Gear Head Motors?
Gunda Nikhil and V Sai Meher Krishna are the founders of Gear Head Motors.
2. Is Gear Head Motors profitable?
Gear Head Motors is profitable. Their net profit was 16% in July 2022.
3. Why Other Sharks did not invest in Gear Head Motors?
Vineeta felt it was a risky proposition. Namita had trust issues. Anupam had two issues – first, the founders couldn’t explain the market numbers, and Nikhil kept changing statements.
4. What happened to Gear Head Motors after Shark Tank?
Gear Head Motors got funding of INR 1 crore from Peyush and Aman. In December 2022, they raised INR 1 crore funds in a pre-seed round. They will utilize these funds to expand Gear Head’s operations.
They also plan to launch their EVs in tier 2 and tier 3 cities of India in 2023. As per reports, the EV startup has delivered 8000 tricycles and more than 5000 bicycles across India so far.