Plastic Free
Chewing Gum
Season 3 Episode 11
| Brand | Gud Gum |
| Company Name | Gud Gum |
| Founders | Bhuvan B Nagori, Mayank B Nagori |
| Original Ask | 50 lakhs for 5% equity at the valuation of Rs. 10 crores |
| Deal | 80 lakhs for 10% equity at the valuation of Rs. 8 crores and 4% royalty until 80 lakhs is recouped |
About the Product
Their line of plastic-free, biodegradable chewing gums encompasses a delightful array of flavours including Charcoal Mint, Strawberry, Lemon, and Raspberry. These vegan gums are meticulously crafted, devoid of plastic, sugar, and artificial colors or Flavors. Each pack contains 15 pieces, promising a guilt-free chewing indulgence. Their dedication to sustainability is evident in their plastic-free and biodegradable composition, alongside their commitment to vegan ingredients. With a sugar-free formula and reliance on all-natural ingredients, these gums cater to health-conscious consumers while also being gluten and allergen-free certified. Their gums provide a refreshing and eco-conscious chewing experience.
Founders & their story
- Bhuvan B Nagori
- Mayank B Nagori
Gud Gum, a Bangalore-based company, is revolutionizing the chewing gum industry with its 100% natural and plastic-free products. Founded by passionate individuals, the brand is committed to promoting environmental sustainability and health consciousness. Boasting a considerable online presence with 4.4k Instagram followers, Gud Gum targets a demographic aged 22-45 years. The product is not only appealing to health-conscious individuals but also caters to specific segments such as athletes, parents, kids, diabetics, and smokers.
The company, initially bootstrapped with a 6 lakh loan from the founder’s father, has shown promising growth. With 17,000+ satisfied customers, Gud Gum is available for purchase on its official website, Amazon, and in over 120 retail stores across 14 cities in India. The chewing gum, infused with essential oils, fruit extracts, and natural sweeteners, is not only kid-friendly but also suitable for diabetics. Gud Gum’s commitment to a healthier lifestyle is reflected in its future plans, which include expanding its product line to include confectionery items like lollipops, candies, and cough drops.
In a market valued at 1000 crores in India, Gud Gum competes with 3-4 major players. With a total of 9 SKUs, the company aims to further establish its presence and make a positive impact on both the chewing gum industry and the environment.
About the company
Regular chewing gums, often overlooked in terms of their composition, are essentially plastic products containing ingredients comparable to those used in tires and adhesive materials. This plastic nature renders them non-recyclable once disposed of, contributing significantly to the staggering 100,000,000 kg of plastic waste generated annually. To put it into perspective, this amount is equivalent to 250 Olympic-sized swimming pools filled with plastic waste. These conventional gums are also packed with artificial colors, sweeteners, softeners, and essences, posing potential health risks over time.
Moreover, their disposal exacerbates environmental concerns, as they release microplastics into the water table, posing threats to marine life and subsequently to human health. In stark contrast, Gud Gum was established with the mission to produce sustainable chewing gums, transforming the conventional gum into a lifestyle product. Gud Gum offers a sustainable alternative, derived from natural tree sap—a practice dating back centuries, as observed among the Mayan people. Opting for Gud Gum not only promotes individual and environmental well-being but also contributes to supporting the livelihoods of tribal farmers engaged in the sustainable harvesting of tree sap.
Revenue
Gud Gum operates on a robust unit economics model, offering its natural and plastic-free chewing gum at an affordable price point of Rs 99 per pack. With a profit margin before tax standing at Rs 20.3 per pack, the company demonstrates a sound and sustainable business model. In the financial year 2022-2023, Gud Gum aims for a projected revenue of 1 crore. The distribution strategy is well-balanced, with a 50-50 split between offline and online sales channels. This approach ensures a broad market reach and caters to diverse customer preferences.
As of November in the financial year 2023-2024, Gud Gum has already achieved a commendable revenue of 53 lakhs. This signifies a strong performance, reflecting the brand’s growing popularity and consumer trust. With its affordable pricing, solid unit economics, and a proactive presence both online and offline, Gud Gum is well-positioned for sustained growth in the competitive chewing gum market. The company’s financial outlook is promising, paving the way for continued success in the coming years.
Founders’ Ask
50 lakhs for 5% equity at the valuation of Rs. 10 crores.
Offers:
Aman: 50 lakhs for 5% equity at the valuation of Rs. 10 crores and 5% royalty until 50 lakhs is recouped.
Aman and Anupam: 50 lakhs for 10% equity at the valuation of Rs. 5 crores and 5% royalty until 50 lakhs is recouped.
Aman, Anupam and Ritesh: 50 lakhs for 10% equity at the valuation of Rs. 5 crores and 5% royalty until 50 lakhs is recouped.
Vineeta: 50 lakhs for 5% equity at the valuation of Rs. 10 crores and 5% royalty until 50 lakhs is recouped.
Aman, Anupam, Ritesh and Vineeta: 80 lakhs for 10% equity at the valuation of Rs. 8 crores and 5% royalty until 80 lakhs is recouped.
Aman, Anupam, Ritesh and Vineeta’s revised offer: 80 lakhs for 10% equity at the valuation of Rs. 8 crores and 4% royalty until 80 lakhs is recouped.
Founders’ Counteroffer:
80 lakhs for 8% equity at the valuation of Rs. 10 crores and 3% royalty until 80 lakhs is recouped.
Final Deal
Aman, Anupam, Ritesh and Vineeta: 80 lakhs for 10% equity at the valuation of Rs. 8 crores and 4% royalty until 80 lakhs is recouped.
