Gauri Nanda is a young entrepreneur from New York who created a product called Toymail which helps keep communication open between parents and children under 10. With a proposal of $250,000 for 2.5% equity, will the sharks take on this highly valued company?
Gauri Nanda is a New York City native whose parents came from India with just $10 in their pocket and a dream in mind. After trying their best to bring several businesses to success, they eventually took over a failing newspaper, brought it back to success and ended up selling it for a profit.
While attending grad school at MIT back in 2007, Nanda created a product for a class project which became a huge success! Nanda eventually decided to start a new company, Toymail, whose products will be featured on “Shark Tank” for the very first time.
Toymail is all about bringing families closer together by opening up new channels of communication. Instead of relying on phones, Toymail uses talkies, so kids as young as three can for the first time in their lives send a voice message to their parents. All they need to do is push a button on the back of their toy and that message is immediately sent to a loved one. The message then goes to parent-approved contacts, so parents can listen to that message directly with the Toymail app. On top of that, parents can also use the app to respond to their kids.
The Toymail hardware is completely interchangeable, meaning you can remove it and put it into a new animal skin. The toy also responds to physical play and are completely expandable, so that parents can unlock new features such as educational games, stories, or even songs. The Toymail is Wi-Fi base, so you don’t have to have a phone or a laptop nearby to use it. Another big plus of this toy is security-related since parents don’t want to put their kids in front of another screen.
As the presentation went on, Nanda also referred that Verizon is actually one of their investors and they don’t have a device to sell kids under 10, so this is a perfect product for that market. Also, Amazon is a big investor in the company and was very interested in working with Toymail in order to bring their echo voice control technology to their toys.
So far Nanda has raised $1.6 million dollars, and the company was evaluated at $10 million. The retail price is set to be $50, and the manufacturing cost is $20, although Nanda referred the cost of manufacturing should go down to $10 next year.
After discussion with Amazon and Verizon sales projections, Nanda predicts that next year the company will make over $2.5 million in sales just in the first year. When asked by Mark Cuban if she believes the company will ever make $100 million in revenue, Nanda seemed pretty confident that one day her company would reach that goal
Robert was the first shark to drop out, claiming that although he loves the product, the equity proposed is too low for him.
Kevin was the second shark to not take the bait, using the same logic as Robert did.
Guest shark Chris Sacca praised the product and Nanda’s skills as a businesswoman and entrepreneur, although he did not agree with the evaluation, and therefore he decided to offer $400,000 for 5% stake in the company.
After Chris seemed quite confident about his offer, it was Cuban’s time to make his offer: $500,000 for 5%, but he also asked for some real estate. Although he doesn’t need at the moment, at some point over the next couple years, since Mark owns over a billion dollars in content assets.
Lori was the last shark to get in on the action. She asked Nanda to make her an offer since the young entrepreneur seemed quite knowledgeable about each shark.
Nanda starts to question if it would be possible for Lori and Mark to go into this business together, and at this point, Chris comes back and offers $600,000 for 5% of the company as well as the option to put up to an additional million dollars in the next round. He also mentioned Lori would be invited to join the deal. After they discuss the percentages, Chris and Lori decide to go together, offering $300,000 for 2.5% each.
Nanda quickly accepted the offer, leaving Cuban quite bitter.
Although it’s still quite early to know what happened to Toymail, the toy has become an overnight success! You can find out more about the company on their website toymail.co or buy the Toymail directly online.
Original Air Date: February 17, 2017
Entrepreneurs: Gauri Nanda
Proposal: $250,000 for 2.5% equity
Investor: Chris Sacca and Lori Greiner
Final Deal: $600,000 for 5% of the company
Toymail Talkies create a 2-way voice chat for your kids with your friends and family, without putting them in front of a computer or mobile screen. It is extremely easy to use. By pushing a button, the voice messages are immediately sent to the child’s parents’ pre-approved contacts. Parents and grownups just need to install the free Toymail app to send messages to Talkies. Kids between 3-10 years old can use this toy to send messages their friends Talkie-to-Talkie as well! Right now they have a few versions available: Talkie, Teensie, and Weensie.See all products available here!
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