SEPAL ₹50 Lakhs for 2% Equity Win on Shark Tank India

SEPAL, a new company, has recently unveiled SEPAL in Shark Tank, an innovative cover designed to protect motorcycle riders from all kinds of weather, such as sun, rain, strong winds, and extreme temperatures. Made from tough fibre-reinforced plastic that can handle speeds up to 120KmpH, this invention provides thorough protection for riders. They boast of being the first of its kind globally. SEPAL is in use in 25 States in India and has also been sent to various parts of the world.

Click here to visit official website: SEPAL

SEPAL not only acts as a shield on a bike but also transforms it into a smart bike, allowing users to manage the phone screen with buttons. It provides support for navigation, phone calls, and more. SEPAL is easy to set up and can be installed by anyone. The company initially priced SEPAL at ₹10,000, but the founders believe that with larger production volumes, they can sell it for ₹5000. Within seven months of their launch, they have sold 1000 units, with 160 units sold last month. In the three months leading up to the pitch in September 2022, their sales figures were ₹10 lakh, ₹12 lakh, and ₹13 lakh in June, July, and August, respectively. The company’s gross margin stands at 37%, and they anticipate a net margin of 17%.

SEPAL has obtained a design patent for their product. The founders disclosed that they had previously secured an investment of ₹2.2 Crores at a valuation of $3 million, approximately equal to ₹22.5 Crores, in the year 2022. Their future aim is to transition towards an IoT platform within a few years since they recognized that this technology will become more standardized.

Related: Shark Tank 2.0 has raised INR 75 lakhs for London Bubble Co.

Kashyap Addepally and Vidhey Addepally are the brilliant minds behind SEPAL. Vidhey, who graduated in civil engineering from IIT Bombay, came up with the idea for this venture while preparing to attend Stanford University. However, he chose to follow his business dream instead of pursuing further studies at Stanford. On the other hand, Kashyap, a design student with education from the United Kingdom, partnered with Vidhey in this innovative business endeavor.

Amit, Namita, and Anupam decided to leave the negotiations for different reasons – primarily because they had concerns about the pricing, not understanding the problem the product was solving, and issues with the style and potential for imitation at lower prices, respectively.

Aman did not like the style aspect of the product and worried about it being copied at a lower price. Peyush, on the other hand, believed that it was too early for the business but still offered ₹50 lakh in exchange for a 2% stake in the company. Despite attempts from the founders to negotiate, Peyush stood firm in his offer. In the end, SEPAL accepted Peyush’s offer of ₹50 lakh for 2% equity, and they sealed the deal with a handshake. However, there were some negative comments made by others about Peyush’s decision, suggesting that they thought it was a poor investment choice.

In our investigation of the company, we found out that SEPAL their deal with Peyush from Shark Tank India after the TV show ended. They stuck to their goal of launching an IoT module that customers could buy directly from their website. Additionally, they managed to lower the price of their flagship product to ₹6,899. This price reduction played a key role in why some of the Sharks did not invest in the company.

Shark Tank India showcases a dynamic platform where aspiring business owners pitch their concepts to influential investors, hoping to gain the support and resources needed to scale their enterprises.