Guardian Gears
Initial Ask – Rs. 30 lacs for 5% equity at a valuation of Rs. 6 Cr.
About the Company
Having found no perfect bike gears, this company was launched, which manufactures and sells riding gears of the best quality. Having a range of products, like tank bags, tail bags and saddle bags, they have acquired around 30,000+ customers till now. They serve their customers in the online format through Amazon and in the offline format through their 70+ stores.
Having sales of around 25000-30000 bags every year, they don’t only target the niche audience with Royale Enfield and David Harleyson. Their bags are fit for any kind of 2 wheelers, thus capable of capturing a large market. However, this company is seeking a push towards digital marketing, so that they can become a global brand and can even make exports of their products possible.
Past performance of the Company
In the year 2020, they made sales worth Rs. 1.5 Cr. This year till October, they recorded around 1.25 Cr. revenue, and are projecting to end the financial year at a revenue of Rs. 2.5 Cr. This year’s sales can be broken down in the following manner: June – Rs. 18 lacs, July – Rs. 21 lacs, September – Rs. 30 lacs and October – Rs. 21 lacs. They enjoy a gross margin of about 50%, landing at a final profit margin of 12-15%.
Industry Overview
The riding gear industry in India is expected to grow at a CAGR of 6-7% till 2025. This growth rate has been projected on account of continually increased sales of bikes and the growing passion for bikes among Indian Youth. This is not it, the pandemic saw a huge decline in the said segment because of the lockdowns. But, this has provoked other potentials for this sector, because people’s inclination towards own and safe transport has increased, acting as a positive.
As this company focuses on mainly bags, they face a competition from brands like Decathalon. However, the quality and pricing of this company’s bags surpasses the others, thus establishing a good position in the field.
Offers made, and the one accepted:
Peyush Bansal, Anupam Mittal and Vineeta Singh came together to offer Rs. 30 lacs, as per their ask, but for 30% equity of the company. This was countered by asking for the same amount of money for an equity of 15% of the company. This was denied by the sharks.