Baby diapers are a staple for every parent. With so many different options available in the market, it becomes confusing for parents to settle on one. Founder Amrita Saigal, who founded Kudos Diaper had some unique propositions to share with the Sharks.
The main USP of Kudos Diapers is the fact that their diapers are designed with a cotton-based alternative instead of relying on plastic. During the pitch, Amrita asked for $250,000 for 5% equity, which is a pretty justifiable ask.
If you are wondering where Kudos Diapers is currently and how well they are fairing in the market, we have all the insights listed in this article.
Shark Tank Kudos Diapers Update
- Entrepreneur – Amrita Saigal
- Business – Cotton-based disposable premium quality diapers
- Ask – $250,000 for 5%
- Result – $250,000 for 12%
- Sharks – Gwyneth Paltrow and Mark Cuban
When Amrita brought Kudos Diapers to Shark Tank, the company had been in business for about a year at that point. However, the catch was in their revenue. In about a year, the company managed to make $850,000 in revenue by selling the diapers directly to consumers via their website.
Following that, Amrita also clarified that her company is backed by investors and she has managed to raise around $12 million in investment through multiple rounds. To ensure stability in the market, Amrita lost close to $1.5 million in revenue. However, she confirmed with the Sharks that her calculations suggest that the company would become profitable by 2023 or 2024.
Besides selling premium quality diapers in the retail form, Amrita also clarified that their company has a subscription-based model, wherein the customers pay a recurring amount of around $80 per month for a 30-day supply of diapers.
For customers who wish to buy a monthly supply of diapers one time, the retail cost for the entire month is around $88, which is a decent price for quality and premium diapers.
When discussing the company’s manufacturing cost, Amrita clarified that a box of diapers costs them $39 maximum to manufacture. This raised a lot of concern in the minds of the sharks regarding the profit margins. She also allocated around $23 for customer acquisition, which Amrita believes is a lot less compared to the other competitor brands in the market.
With all the details laid out, the next thing that was left was for the Sharks to place their offer. While the other Sharks didn’t seem to be too interested in making an offer, guest Shark Gwyneth Paltrow teamed up with Mark Cuban to offer $250,000 for 12% equity.
Since Amrita didn’t have any other offers on the table, she accepted it readily and according to reports, the deal was finalized after the episode aired.
Coming to what Kudos Diapers is up to right now, it looks like the brand has established itself as a front-runner in the market. We don’t have a lot of updates regarding the brand’s revenue and valuation at this point but with the steady sales, they are doing well for themselves.
