India is a country full of entrepreneurs, and recently a show that helps in pushing these entrepreneurs to the next level has gained a ton of popularity in the country. By now you may have very well guessed about the show that we are talking about. Yes, we are speaking of the famous television show Shark Tank. Recently two entrepreneurs stepped into the stage of Shark Tank where they pitched their last-mile delivery electric three-wheeler that goes by the name of OTUA. The owners of the electric mobility startup Dandera Ventures asked for Rs 1 crore in exchange for 1 percent equity in their company.
The owners of the company entered in front of the Sharks (investors) and started their pitch explaining the company, their electric three-wheeler OTUA and their equity structure. Kshitij Bajaj and Kanav Manchanda started by saying they are a technology-backed automotive manufacturing company that aims to disrupt the last-mile delivery industry with their new three-wheeler.
They brought their prototype to the Shark Tank stage and explained that it has an electric drive train, anti-tilt technology, better ergonomics, 165km range and a load carrying capacity of one ton which is way more than any of its competition. The entrepreneurs added that the OTUA features their proprietary battery that can be operated in any part of the country regardless of the temperatures. Furthermore they added that their three-wheeler is based on a modular chassis which can be converted into passenger carrying vehicle or delivery vehicle depending upon the customer needs.
Following the introduction of their company and product they reveal that they are there to look for an exchange of 1 percent equity in their company for Rs 1 crore and upon hearing this the sharks gave a shocked reaction. The sharks then proceed to ask them about the name of their product. One of the sharks guessed that the name was derived from the Bhojpuri word “OTUUAA” to which Bajaj replied that the it was a factor in the naming but in general it was a word play. Another shark guessed that the word OTUA is auto spelled backwards.
Then the sharks question the entrepreneurs about their experience and background and how the two partners met each other. Bajaj then replied that he is an automotive designer working for 16 years in this field and Manchanda replied that he is businessman who has worked at his family business. Later the sharks then asked about the equity structure of their company to which they replied that till now they have invested around Rs 70 lakh in the company and before coming to the shark tank they have already signed a deal for 49 percent stake of their company with a Gurugram based company and an additional 2 percent equity with the incubator of the deal.
The co-founders further revealed that the new company will infuse Rs 30 crore in their brand to help them in manufacturing of their electric three wheeler. Following this the entrepreneurs and sharks go back and forth a multiple times asking various questions and finally four of the five sharks declare that for their specific reasons they cannot go ahead with the deal. At the end the Bharatpe founder Ashneer Grover strikes a deal with the company owners for 1 percent equity for Rs 1 lakh and Rs 99 lakh as a debt at 12 percent interest rate for over 5 years.