Fold and Go: Hornback's Electric Folding Bicycle

Hornback is a promising startup co-founded by Rajkumar Kewat and Nishit Parikh, both of whom are from Hyderabad and were classmates at IIT Bombay. They have a master's degree in Designer and Industrial engineering, and their passion for innovation has led them to develop a unique product that addresses a growing need in the market.

Hornback is an automobile startup that specializes in the manufacturing of the world's first full-sized, diamond-frame electric folding bicycle. This innovative product is designed to cater to the needs of people who use bicycles for local communities, roaming inside cities, and traveling short distances. The biggest advantage of Hornback's electric folding bicycle is its patented mechanism, which enables easy folding and unfolding without requiring the rider to lift the bike.

AIM OF THE STARTUP

The aim of Hornback, the innovative automobile startup co-founded by Rajkumar Kewat and Nishit Parikh, is to provide a solution for the growing need for an efficient, foldable, and electric bicycle that can be easily transported.

Their product, the world's first full-sized, diamond-frame electric folding bicycle, is designed to cater to people who use bicycles for local communities, roaming inside cities, and traveling short distances. The aim is to make commuting and traveling easier and more efficient, by providing a high-quality, sturdy, and easy-to-use electric folding bicycle that can be taken anywhere, even in the boot of a car.

TARGET MARKET AND BUSINESS MODEL

Hornback has a unique product that caters to a specific target market. Their product, the world's first full-sized, diamond-frame electric folding bicycle, is designed to cater to people who use bicycles for local communities, roaming inside cities, and traveling short distances.

The target market for Hornback's electric folding bicycle includes urban commuters, college students, and anyone who is looking for an efficient and cost-effective way to travel short distances. These consumers are looking for a reliable, sturdy, and comfortable mode of transportation that is easy to use and transport. With its unique patented folding mechanism, Hornback's electric folding bicycle provides a perfect solution to this target market.

Hornback's business model is focused on providing high-quality, innovative, and affordable electric folding bicycles. They have already received 80 pre-orders for their products, and with a price point of 44,999, Hornback's electric folding bicycle is priced competitively compared to other electric bicycles available in the market.

SALES AND REVENUE

The startup company Hornback is still in the prototype stage and has not yet begun making any sales or generating revenue. This could be a common situation for early-stage startups, as they need to develop and refine their product or service offerings before they can bring them to market.

During the prototype stage, the focus is typically on product development, testing, and refinement, as well as building a team, securing funding, and establishing a marketing strategy. While Hornback may not be generating revenue at this time, it is likely that they are actively working on these aspects of their business to prepare for future growth and success.

It is worth noting that startups often operate with a longer-term outlook, meaning that they may not expect to generate significant revenue or profits in the early stages of their development. Instead, their focus is on building a strong foundation for the business and positioning themselves for growth and success in the future.

As Hornback progresses through the prototype stage and begins to bring their product or service to market, they will likely begin generating sales and revenue. This will be a critical milestone for the company, as it will help to validate their business model, demonstrate the value of their offerings, and provide the resources needed to support further growth and development.

FUNDING IN SHARK TANKS INDIA

Hornback appeared on Shark Tanks India seeking funding to scale up its operations. The owners asked for 50 lakhs rupees in exchange for 1% equity in the company. The Sharks were intrigued by the proposal and were willing to invest in the business.

One of the Sharks, Amit, offered to invest 30 lakhs rupees for 2% equity in the company and an additional 20 lakhs rupees in debt at a 12% interest rate. However, the owners of Hornback counteroffered with a request for 50 lakhs rupees in exchange for 1.5% equity.

Amit then countered with a proposal of 50 lakhs rupees for 3% equity in the company. However, the Hornback owners did not agree to this offer, and Amit counteroffered again, this time with a proposal of 50 lakhs rupees for 2.5% equity.

Finally, a deal was reached between the two parties, and Hornback agreed to take 50 lakhs rupees in exchange for 2.5% equity in the company. This deal would help Hornback scale up its operations and take advantage of new growth opportunities. It was a win-win situation for both parties, and it demonstrated the power of negotiation and compromise in the world of startup funding.