Gear Head Motors Shark Tank India Update (Season 2)

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Gear Head Motors is an affordable electric bicycle and tricycle startup based in Hyderabad. Founded in 2018 by Nikhil Gunda and Meher Sai, the company aims to offer electric bicycles at competitive prices.

The Hero Electronic Bicycle Lectro C3 (26) Knight Black is priced at ₹26,000, while Gear Head Motors’ model L bicycle costs ₹24,749. These models provide greater range, speed, and shorter charge times compared to other electric bicycles in the Indian market.

Nikhil Gunda, during his time at Anurag University, developed a coffee pre-order app to address issues faced by students and coffee shops. He co-founded DigiDine Coffee with Arya Revanth in April 2016.

Driven by his interest in electric vehicles, Nikhil launched Gear Head Motors with his college senior, Meher Sai. The company initially sold 100 units of electric bicycles, generating an estimated revenue of ₹70 lakhs. Gear Head Motors now has over 200 distribution centers across India.

Nikhil and Meher appeared on Shark Tank India Season 2, Episode 4, seeking ₹75 lakhs for 2% equity, valuing the company at ₹37.5 crores. They emphasize their mission to provide affordable bicycles for everyone.

In 2020, Gear Head Motors launched its first e-bike, the ABLE 350, in collaboration with a Cycle Manufacturers Company from Ludhiana. They delivered over 1,000 ABLE 350s in partnership with the Telangana government.

The company currently offers four bicycle models: MFE MODEL -L at ₹24,749, MFE MODEL -I at ₹28,799, MFE MODEL -F at ₹35,999, and MFE MODEL -E at ₹40,499. Each bike features an LED display, and the company has also introduced the Dash App for the EV community.

 Another Shark Tank India Pitch

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Gear Head Motors was co-founded by Meher Sai and Nikhil Gunda, both of whom completed their studies at Anurag Group of Institutions.

How Was The Shark Tank India Pitch Of Gear Head Motors?

Gear Head Motors co-founders Nikhil Gunda and Meher Sai entered Shark Tank India seeking ₹75 lakhs for 2% equity, valuing the company at ₹37.5 crores. At just 19, Nikhil had previously sold his coffee business to an American company for ₹2 crores. Nikhil owns 60% of Gear Head Motors, while Meher owns 40%.

For the financial year 2021-22, the company reported a revenue of ₹3 crores. In the first four months of the financial year 2022-23, they earned ₹1.5 crores. They project a revenue of ₹20 crores by the end of 2023.

Last month, their sales were ₹50 lakhs, with a profit of ₹8 lakhs. This month’s estimated profit is ₹9 lakhs. The small battery charges in 2 hours, while the big battery takes 3 hours. So far, Gear Head Motors has raised ₹3 crores at a valuation of ₹15.60 crores.

Aman Gupta and Anupam Mittal expressed that they would only proceed if Gear Head Motors merged with another company.

The founders countered with an offer of ₹1 crore for 3% equity, valuing the merged entity at ₹33.3 crores. They cited a global e-bike market size of $60 billion, with $30 billion in India, and an estimated $2 million market size for e-bikes in India.

Vineeta Singh declined due to perceived risk, Anupam Mittal criticized Nikhil’s market knowledge and withdrew, and Namita Thapar exited over trust issues. Aman Gupta and Peyush Bansal offered ₹1 crore for 7.5% equity at a ₹13.33 crores valuation, contingent on merging the companies.

The founders countered with a minimum valuation of ₹15 crores. Aman and Peyush ultimately agreed to a deal of ₹1 crore for 6.67% equity at a ₹15 crores valuation.

Finalize: Aman Gupta & Peyush Bansal invested ₹1 Crore in “Gear Head Motors” for 6.67% equity.

Gear Head Motors Shark Tank India Update

Gear Head Motors secured a deal on Shark Tank India, contingent upon merging with another company. The founders initially sought ₹75 lakhs for 2% equity, valuing the company at ₹37.5 crores. They put a combined valuation of the two companies at ₹33.3 crores for 3% equity.

In 2023, Gear Head Motors plans to launch an efficient electric vehicle in Tier 2 and Tier 3 cities in India. This development is currently underway.

The company has raised ₹6 crores in a pre-seed round, led by Hemin Shah, director of Collabera USA, among others. By January 2023, Gear Head Motors had delivered 8,000 tricycles and over 5,000 e-bikes in India. They aim to achieve a revenue of ₹20 crores by the end of 2023, up from ₹3 crores by August 2022.

Peyush Bansal and Aman Gupta are investing in Gear Head Motors, which currently focuses on bicycles and tricycles. Following the Shark Tank India episode, it is anticipated that 1% to 5% of people will purchase their bikes.

We will continue to follow Nikhil Gunda and Meher Sai for further updates on their progress.

Gear Head Motors Funding List

Here is the investment list of Gear Head Motors.

This company has raised an estimated investment of 10 crores by January 2023.

What Is Gear Head Motors Net Worth?

Gear Head Motors is currently valued at ₹15 crores. To expand in India and globally, the company will require significant funding. Both co-founders, Nikhil Gunda and Meher Sai, are dedicated to scaling their business.

Globally, the e-bike market is valued at approximately $50 billion. In India, the e-bike industry is estimated to be around $2 million, though the exact figure is not yet confirmed.

Founded in 2018 and based in Hyderabad, Gear Head Motors has been featured in various media outlets, including The Better India, Entrepreneur, Business Insider India, Mint, and Business Today.

Yes, Gear Head Motors is still in business as of August 2024.