Schickwheel on Shark Tank India: Can Custom Food Trucks Become a Scalable Business?

The food truck industry in India has grown significantly, offering entrepreneurs a way to start a restaurant business with lower investment than traditional brick-and-mortar outlets. Schickwheel, a Delhi-based manufacturer of custom food trucks, kiosks, and kitchen equipment, is tapping into this demand by offering mobile kitchens designed for different business needs.

Founders Rishabh Sachdeva and Parth Sachdeva entered Shark Tank India hoping to secure funding for expansion. However, the sharks weren’t convinced their pricing strategy and valuation justified the investment they were asking for.

Click here to visit their official website : Schickwheel

Related: Namita Thapar refuses to invest in business that counts Nithin Kamath as a backer, tells Shark Tank India pitchers it’s ‘not investable’

Schickwheel specializes in custom mobile food solutions, providing businesses with:

• Food Trucks & Trailers – Fully equipped mobile kitchens for street food businesses
• Kiosks – Compact setups for high-footfall areas like malls and metro stations
• Kitchen Equipment – Industrial-grade cooking appliances for restaurants and food trucks
• Carts – Portable food stalls for small-scale vendors.

The company designs, manufactures, and sells these solutions to aspiring food entrepreneurs, helping them launch their businesses without the overhead costs of renting a permanent space.

• Food Trucks & Trailers: 35%
• Kiosks: 35%
• Kitchen Equipment: 22%
• Carts: 8%

• Food Trucks & Trailers: ₹8.5 lakh
• Kiosks: ₹7.5 lakh
• Kitchen Equipment: ₹4 lakh
• Carts: ₹2.5 lakh

The company has built a strong presence in the industry, but as the sharks pointed out, there were questions about how Schickwheel differentiates itself from competitors offering similar products at lower prices.

Schickwheel has seen consistent revenue growth since its launch, but profitability remains a challenge.

• FY16-17: ₹98
• FY17-18: ₹1.3
• FY18-19: ₹2.5
• FY19-20: ₹3.2
• FY20-21: ₹3.4
• FY21-22: ₹3.2
• FY22-23: ₹5.5
• FY23-24: ₹6.8
• FY24-25 (till October): ₹6.5 crore
• Projected Revenue for FY24-25: ₹15 crore

While these numbers show strong sales, the sharks were concerned about high costs eating into profits.

• Cost of Goods Sold (COGS): 78%
• Salaries: 8%
• Marketing: 5%
• Rent: 2%
• Miscellaneous: 2%
• EBITDA (Profitability): 5%

With COGS at 78%, the company has thin profit margins, making it difficult to scale efficiently.

The Sachdeva brothers entered Shark Tank India seeking ₹75 lakh for 1% equity, valuing Schickwheel at ₹75 crore.

The sharks weren’t convinced about the valuation. Anupam Mittal pointed out that competitors were offering similar food trucks at half the price, raising concerns about how Schickwheel could stay competitive.

Peyush Bansal advised them to simplify their product range to make the business more scalable.

Despite these concerns, the founders remained confident, leading to a round of negotiations.

Shark Vineeta Singh was the first to make an offer,  ₹75 lakh for 10% equity.

This was far higher than the 1% equity the founders were asking for, drastically lowering the company’s valuation.

Shark Aman Gupta, co-founder of boAt, shared a personal story about how he and his wife used to enjoy chowmein from a food truck. This nostalgic connection inspired him to invest, but at a different valuation, ₹75 lakh for 5% equity.

This was still much higher than what the founders wanted, but less aggressive than Vineeta’s offer.

The founders weren’t satisfied with the offers and attempted to negotiate with shark Kunal Bahl. However, Kunal felt that their reluctance to compromise could become a barrier to securing investment.

As discussions continued, it became clear that Schickwheel wasn’t willing to lower its valuation significantly.

No deal was finalized. While the pitch demonstrated Schickwheel’s strong sales history, the sharks felt the company needed a more competitive pricing strategy and a clear path to higher profitability.

Schickwheel’s time on Shark Tank India offered valuable insights into what investors look for in a business.

1. Valuation Must Be Justifiable: If a company values itself too high without clear justification, it risks turning off investors.

2. Scalability is Key: Peyush Bansal’s suggestion to simplify the product lineup highlights the importance of making a business model scalable.

3. Flexibility in Negotiations Matters: Kunal Bahl’s decision not to invest stemmed from the founders’ reluctance to adjust their valuation. Entrepreneurs must balance confidence with adaptability to secure funding.

Schickwheel may not have secured a deal, but their appearance on Shark Tank India gave them a platform to showcase their brand to potential customers and investors.

With a ₹15 crore sales target for FY24-25, the company still has significant growth potential. However, for long-term success, Schickwheel may need to:

• Reevaluate pricing to stay competitive
• Improve profit margins
• Focus on scalability

As the food truck industry continues to grow, Schickwheel’s ability to adapt to market demands will determine its future success.

Would you invest in custom food trucks, or do you think the business needs a new direction?