Shark Tank India: Gud Gum, a vegan alternative to chewing gum secures 80 lakhs Investment

While the act of others spitting out chewing gum irritates us to the core, one can hardly fathom its disastrous effects on marine life. Made from harmful plastic substances, chewing gum poses risks to both our health and the environment. In an era when other brands continue to offer such products, Gud Gum has entered the market as a revolutionary alternative, claiming to produce plastic-free and 100% natural chewing gum. Recently, it received funding in the third season of Shark Tank India.

Based in Bengaluru, Gud Gum is the brainchild of Mayank B Nagori and Bhuvan Nagori, with backgrounds in the food industry and plastic awareness, respectively. "I wanted to create a 'clean' label, better for humans, while my brother always aimed to build something sustainable," says Mayank Nagori about starting Gud Gum in 2022. With a background in sales in the food and beverages industry, Mayank noticed fierce competition in that sector, but the chewing gum industry remained untouched. "I thought chewing gum would be a great space for our venture because we anticipated that the products would automatically be placed at the billing counter and sell well," he adds.

The Gud Gum brand utilizes natural ingredients like tree sap and natural sweeteners, in contrast to the harmful additives found in traditional gums. Currently, the gums offered by the brand are 100% natural, sugar-free, plastic-free, and biodegradable, available in flavors like charcoal, strawberry, raspberry, and lemon. Along with Mayank, the brand also aligns with the ethos of his brother Bhuvan to create a sustainable enterprise. "It matched both of our ideals," says Mayank.

Success at and after Shark Tank 

Highlighting how other brands in the chewing gum industry pose risks to humans and the environment, the founders of Gud Gum talked about the attributes of their brand, which impressed the sharks during their pitch. Following this, the founders made their initial ask: Rs 50 lakhs for 5% equity at a valuation of Rs 10 crores.

The pitch and the brand's idea garnered investments from all sharks except Namrata Thapar, who found the gum "extra sweet" and backed off, citing concerns about the size of the market and the high prices of the brand's products. Initially, Aman Gupta offered Rs 50 lakhs for 5% equity with 5% royalty, but since other sharks also expressed interest, the founders proposed that Vineeta Singh, Anupam Mittal, Aman, and Ritesh Agarwal come together to make an offer. "Because we were bootstrapped, we were asked to give them a larger equity share, so we went for 10% instead of 5% equity," says Mayank.

Ultimately, the deal was closed for Rs 80 lakhs for 10% equity with a 4% royalty until Rs 80 lakhs are recouped.

Reflecting on their experience on Shark Tank India, Mayank says they were "always on their toes." "There were a lot of last-minute things that happened; we got a call about the audition supposed to happen the week later. We also got informed about the shoot, for which two weeks were given," he says. However, appearing on the show has helped the founders receive appreciation from various friends and distant acquaintances whom they had not spoken to for years. "We received calls from friends, teachers, saying they were proud of us," he says, adding that he is grateful "to have a supportive community around."

Furthermore, the brand has observed growth in orders and sales after the episode aired. "Sales increased by 25 to 30 times overnight," Mayank says. Within 12 hours of airing the episode, the founders received 1,000 orders across all marketplaces. "I recommend every startup and entrepreneur to go on Shark Tank," Mayank says.