What Exactly Is Toygaroo?
Toygaroo is a company that rents out toys. The toys were available for hire on the internet and may be rented by parents. The “Netflix of toys,” Toygaroo has been called. As a consequence, parents can offer their children the most popular and expensive toys for a fraction of the cost while simultaneously conserving room.
Parents may choose a subscription plan that includes the number of toys they want, and their children can exchange their toys for new ones when they get bored with them. Furthermore, if the children admire a certain item, they may purchase it.
Quick Details on Product:
|Online Toy Rental Service – Netflix For Toys
|$100,000 For a 10% Stake in Toygaroo
|$200,000 For a 35% Stake in Toygaroo
|Kevin O’Leary and Mark Cuban
|Season 2 and Episode 2
|Out of Business
Who Is the Toygaroo Founder?
Nikki Pope, Hratch Hutch, and Rony Mirzaians founded Toygaroo in 2010. However, because she was the only person to participate in Shark Tank, Nikki Pope acted as the brand’s face.
Toygaroo Before Shark Tank:
In season 2, Nikki Pope debuted on Shark Tank with a cost-cutting plan to help parents entertain their children. Nikki Pope is the owner of Toygaroo, a company based in Los Angeles, California. Nikki Popo explains that she has a large family, with thirteen nieces and nephews in all, and that they like playing with toys just like any other youngster.
She refers to her nieces and nephews as “playtime experts,” but the problem is that the items they own quickly become outdated. This, according to Nikki Pope, inspired her and her husband to launch Toygaroo. Toygaroo is a cost-effective approach for parents to keep their homes clean and their children entertained by providing them with new toys on a regular basis.
Nikki Pope maintains that she and her spouse have yet to start a family, but that they would like to. With the Sharks’ support of the Toygaroo concept, Nikki Pope and her husband will be able to start a family of their own. Toygaroo, in her vision, will be utilized by every household with children who like playing with toys. She sincerely hopes the Sharks will grant her dream.
Toygaroo’s Shark Tank Pitch:
In episode 202 of Shark Tank, Nikki Popes makes her debut. She was looking for $100,000 in exchange for a 10% stake in the company. ‘Netflix for toys,’ she named the enterprise. She showed how using this service would be more convenient and cost-effective than buying the toys directly. The proposition was met with mistrust by the sharks.
They interrogated Nikki on a variety of things, including how much money she planned to put in inventory and how much money the family would spend on a yearly basis. Pope makes a $100,000 offer to the Sharks in return for a 10% interest in the ToyGaroo firm. Her business idea goes like this: parents sign up on the internet and pay a monthly fee ranging from $35 to $89.
The family makes a wish list of toys that will be supplied to them on a regular basis. When a child is displeased with or outgrows a toy, it is returned in the pre-paid package that was provided. Before being wrapped for cleanliness and handed to the next family, each toy is sterilized and sanitized again.
The Sharks are naturally skeptical, but Pope points out that her service costs around $500 per year, vs the average family’s yearly toy, spend of $1,200-1,400. Her company not only assists families in reducing toy clutter but also saves them money. Pope needs money to build her company. She has a waiting list of over 1,000 families interested in joining the program thanks to word of mouth.
With an investment, Pope will be able to turn his firm into a flourishing operation. Her original debut attracted more than 500 families. Will the Sharks, on the other hand, take a bite out of her company idea or will they throw this fish away?
Kevin O’Leary feels Pope’s figures exaggerate the company’s worth. Despite this, he agrees to work with her on the figures until he learns that Pope controls just 10% of the company, with her husband and other partners owning the rest. This is a deal-breaker for Daymond John. He has left the building.
O’Leary makes a suggestion. In exchange for 35 percent, he is prepared to offer $100,000. Before she can accept, Robert Herjavec steps in. Mark Cuban is invited to join him. They make an offer of $200,000 for 40% of the business. In light of the new offer, Barbara Corcoran claims she will donate significantly less and has withdrawn. “Those toys are my pals,” explains O’Leary. “I’m just a toy.”
Pope is at a fork in the road. The larger offer and two partners, or O’Leary’s competence with toys. O’Leary is torn between two ideas. He is adamant about not accepting larger cash in return for a bigger percentage. Mark Cuban and Robert Herjavec brag about their internet expertise. O’Leary proposes to work with Cuban on the $200,000 for 40% deal, thereby eliminating Herjavec. The Pope agrees.
Following a chat, Mark Cuban and Kevin O’Leary made an offer. They teamed together and offered Nikki $200,000 in return for a 35% stake in the company. She consented to the terms of the agreement. As a result, instead of $100,000, Nikki received a $200,000 investment and two investors.
Toygaroo’s Business Model:
Toygaroo has a number of subscription options. The Joey Package, their entry-level package, costs $24.99 and contains four toys.
They also provided several package options, such as six toy bundles and eight toy bundles, with prices ranging from $32.99 to $42.99. According to Nikki, the average family spends between $1200 and $1500 on toys each year.
After Shark Tank, What Happened to Toygaroo?
Nikki Pope came to Shark Tank hoping to raise money from one of the Sharks to grow her “toy-renting service.” She launched a preliminary launch before appearing on Shark Tank to see whether there was a market for this sort of service. She wanted to grow her business because the test came back positive. Kevin O’Leary piqued her interest owing to his expertise in the toy industry.
Following a brief bidding war with Robert Herjavec/Mark Cuban, Kevin O’Leary decided to increase his offer and partner with Mark Cuban. Robert Herjavec was left behind when Mark Cuban accepted. Nikki Pope accepted a $250,000 joint offer in return for a 35% stake in Toygaroo.
Despite the fact that Mark Cuban and Kevin O’Leary invested in Nikki Pope, the firm appears to have shut down. Toygaroo appeared to be on the verge of bankruptcy a few years ago, especially when they displayed a banner on their website stating that they couldn’t accept any new members owing to their “explosive expansion.”
In addition, after doing some investigation, I learned that the domain name and brand name for the Toygaroo website had been sold, suggesting that the firm had discontinued operations. It’s a pity that firms keep failing, even when they have investment from the Sharks.
Several concerns were still unsettled. The manufacturer, for example, offered free delivery, but each toy is different in terms of size and weight. As a result, prices will fluctuate over time. This resulted in a cash flow problem. Another difficulty was that as the company grew, more inventory would be required.
Following Shark Tank, Tygaroo was featured on a variety of local stations and television shows. Nikki has been on ABC News, CNSC, Good Morning America, The Nate Berkus Show, and Saturday Night Live, among other programs. Tygaroo rapidly went out of business due to a lack of good planning, despite Mark and Kevin’s investment and Nikki’s recognition as a result of her appearances on several television shows.
Why Did Toygaroo Fail?
Toygaroo’s developers received a $250,000 investment from Shark Tank, however, after a few months, they were unable to keep the firm afloat. The main reason behind this was that inventory and logistics expenses were unreasonably high.
As a result, the business needs to spend on inventory and logistics. Shortly after that, the firm entered bankruptcy. In 2012, the firm filed for Chapter 7 bankruptcy protection. Chapter 7 of Title 11 is the portion of the Code that governs bankruptcy liquidation in the United States. Since 2012, the company’s website has been unavailable, and it was legally closed in 2016.
On Shark Tank, Did Toygaroo Get a Deal?
Nikki’s show also features Mark Cuban, Barbara Corcoran, Daymond John, Kevin O’Leary, and Robert Herjavec. Kevin O’Leary immediately offers her $100,000 for a 35 percent stake in the firm. Barbara Corcoran inquires if Nikki has the authority to sell the firm, to which she responds that she is free to do so. Barbara is displeased with the agreement and decides to leave.
Daymond John leaves because he has a bad track of interacting with those who aren’t in charge of the firm. The transaction was co-created by Mark Cuban and Robert Herjavec, and Robert Herjavec loves it. The CEO of the firm advises that the transaction be finalized, offering her $200,000 for 40% of the company.
Nikki responds by asking Mark and Robert whether they are willing to accept a $200,000 for a 35% deal. Kevin’s offer to finalize the transaction at that price is accepted by Nikki. Mark proposes splitting the contract with Kevin, but not with Robert. Kevin looks across to Mark. Mark concurs.
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