Dandera Technologies Pvt. Ltd.
Initial Ask – Rs. 1 Cr. for 1% equity at a valuation of Rs. 100 Cr.
About the Company
This is a tech backed auto manufacturing company, which brought up Otua- which is the 1st prototype of 3 wheeler electric train drive. This has an anti-tilt technology, which makes it the best in the 3 wheeler segment. Being best in road visibility, this can perform multiple tasks for logistics, passenger carrying, food truck, etc.
They want to break the legacy chain by delivering this product in the market, through which auto drivers will be able to earn 70% more from the very 1st day. This is the reason they’ve made the product from scratch, making it difficult to get copied and adopted by other legacy companies.
Past performance of the Company
Being at the prototyping stage, this company doesn’t have any previous revenue from the product mentioned above.
Industry Overview
The company, with its new generation electric models is in direct competition with the legacy companies like Bajaj in India. It is believed that these companies can crush the small brands like Otua through their reach, scalability and their operations so far. However, there is another group of people who believe that brands like Bajaj can’t come out of their traditional businesses so easily, and this way they can’t disrupt the EV sector.
The electric vehicles industry is at a nascent stage in India: it is less than 1% of the total vehicle sales. This is the reason that EV has a big space available for showing its potential and gaining traction. Several initiatives taken by the Government has helped it out, it even received a mention in the Union Budget 2022-23. With these, the Indian EV sector is expected to grow at a CAGR of 23% by 2026.
Previous Equity Split/Investments
Previously, the two founders did a self-investment of Rs. 70 lacs in the business. 10 days before appearing on shark tank, they came into a contract with a Gurgaon-based company, Exponents, where the company is offering Rs. 30 crores for an equity of 49%. Another 49% of the company’s equity is with the founders, and remaining 2% of the company is with Incubators (middleman).
Offers made, and the one accepted:
Ashneer Grover offered to invest Rs. 1 Cr. but for 5% of equity of the company, and asked the foiunders to cut the deal with Exponents. This was countered by asking Rs. 1 Cr. as line of credit, and take 1% equity for 0 investment. To this, Ashneer offered to give Rs. 1 lac for 1% equity, along with Rs. 99 lacs as debt @ 12 years on an ammortising basis. The deal was closed at this.