Ade + Ayo Children’s Clothing
DEAL
EPISODE SUMMARY
đź•“ Air Date: March 11, 2022
Asking For:
$175,000 for 10%
Investor:
Barbara Corcoran
Deal:
$200,000 for 33.3% + $500,000 line of credit
PRODUCT SUMMARY
Ade + Ayo is a children’s clothing brand that brings the vibrancy of African culture to everyday wear through organic cotton fabric with distinct patterns inspired by African textiles.
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Background Story
Temidayo and Abisola, Nigerian immigrants settled in Oakland, California, are the creative minds behind Ade + Ayo, a children’s clothing brand that celebrates African heritage. Temidayo’s upbringing was marked by his family’s resilient journey from Nigeria to Montreal, Canada, where they started from scratch and gradually built their own businesses. Witnessing this inspirational ascent instilled in Temidayo a profound belief in the transformative power of determination and vision.
Abisola, a former attorney, discovered her entrepreneurial inclinations while practicing law, feeling drawn to ideas beyond the legal realm. The couple’s shared passion for their Nigerian roots and their desire to imbue their son’s life with a deep appreciation for his heritage led them to create Ade + Ayo. Living in a diverse community in Oakland, they recognized the scarcity of options for clothing, books, and toys that authentically represented African culture for their child.
Their fusion of Temidayo’s admiration for his parents’ journey and Abisola’s yearning for creative expression birthed the concept of Ade + Ayo. Through the brand, they sought to introduce the vibrancy of African textiles and patterns into the everyday lives of children, bridging the gap between cultural identity and modern fashion. Their journey from professional careers to becoming dedicated entrepreneurs showcases their commitment to nurturing their son’s cultural awareness while also fostering a sense of pride and belonging for other children of African descent.
The Product
Ade + Ayo offers a captivating range of children’s clothing, carefully crafted with 100% organic cotton fabric, incorporating striking African-inspired patterns and designs. These garments are designed to be both aesthetically appealing and comfortable for everyday wear, allowing children to express their cultural identity while experiencing the utmost ease and softness.
With a keen focus on affordability, the clothing line is priced at $19 retail, making it accessible to a broad audience. The product line includes a variety of sizes and styles, ranging from playful everyday wear to more formal attire, all infused with the richness and vibrancy of African textiles. The use of organic cotton ensures a gentle touch on the skin, facilitating unrestricted movement and play for children.
Ade + Ayo’s products can primarily be purchased through their direct-to-consumer channel, which operates via their official website. This streamlined approach enables them to maintain healthy profit margins while directly connecting with their customer base.
Through their user-friendly online platform, customers can explore the diverse product offerings, place orders effortlessly, and access information about the brand’s commitment to cultural representation and organic materials. By blending style, comfort, and cultural significance, Ade + Ayo provides a unique avenue for children to embrace and celebrate African heritage through their everyday clothing.
How It Went
The company’s position before Shark Tank
Ade + Ayo has demonstrated robust performance since its inception, solidifying its position as a promising player in the children’s clothing market. With a direct-to-consumer business model, the company has managed to achieve notable milestones within a short span of 11 months, accumulating impressive sales of $160,000. This achievement reflects the positive reception of their products in the market, affirming the demand for culturally inspired children’s clothing at an accessible price point.
Ade + Ayo’s customer base predominantly comprises parents and caregivers seeking culturally enriching clothing options for their children, with a specific focus on those interested in celebrating and embracing African heritage. Their user-friendly online platform has facilitated a seamless shopping experience for their customers, contributing to a growing base of satisfied and loyal clientele. While the company operates primarily through its direct-to-consumer channel, it is strategically positioned to explore potential partnerships and collaborations within the retail sector. As the company continues to expand, it may consider forging alliances with established retail chains or exploring distribution agreements with relevant stakeholders in the children’s clothing industry.
With the recent injection of capital and the introduction of new strategic initiatives, Ade + Ayo is poised for further growth and market penetration. The founders’ commitment to nurturing a dedicated team to drive marketing efforts underscores their vision for sustained expansion and brand recognition. The company’s organizational structure is anchored by the founders’ leadership, with a focus on leveraging their combined expertise in entrepreneurship, cultural appreciation, and product development to propel Ade + Ayo towards continued success and recognition in the children’s clothing market.
The Negotiations:
During the negotiation phase on “Shark Tank,” Temidayo and Abisola initially sought $175,000 for a 10% stake in Ade + Ayo. However, the Sharks expressed concerns about the high valuation and the allocation of funds, prompting a thorough discussion on the company’s financials and growth potential. Barbara, recognizing the brand’s unique appeal and market potential, made a compelling offer of $175,000 for a significant 33.33% stake in the company, along with a generous $500,000 credit line.
Although the founders initially hesitated at the high equity demand, they ultimately agreed to increase the investment amount to $200,000 and settle for a 30% stake, aligning with Barbara’s vision and recognizing the value she brought to the table. While some Sharks, including Mark and Daymond, opted out due to differing expertise and concerns about the valuation, Lori and Kevin suggested alternative approaches to managing the company’s growth and expenses. However, their suggestions did not fully resonate with the founders’ long-term strategy and vision for Ade + Ayo.
The negotiation process highlighted the balance between equity distribution and the infusion of critical capital necessary for the company’s expansion. Barbara’s extensive experience and understanding of the market dynamics, coupled with her aggressive yet supportive offer, solidified her as the ideal partner for Ade + Ayo’s future growth trajectory. The negotiation concluded with the founders expressing enthusiasm and gratitude for the opportunity to work alongside Barbara in scaling their brand to new heights.
