BootayBag Womens Underwear Subscription
DEAL
EPISODE SUMMARY
🕓 Air Date:
Asking For:
$500,000 for 5%
Investor:
Kendra Scott
Deal:
$500,000 for 10%
WATCH HERE
DEAL
EPISODE SUMMARY
🕓 Air Date: October 16, 2020
Asking For:
$500,000 for 10%
Investor:
Kendra Scott
Deal:
$500,000 for 10%
PRODUCT SUMMARY
BootayBag is an affordable monthly subscription service that delivers comfortable and stylish underwear to women’s doorsteps.
WATCH HERE
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Background Story
Elly, the founder of BootayBag, hails from San Francisco and grew up in an entrepreneurial environment with her parents being business owners. Despite initially considering taking over her mother’s hair salon, Elly stumbled upon the idea of starting BootayBag. Frustrated by the hassle of shopping for underwear in stores, she saw an opportunity to provide women with affordable and convenient access to quality underwear.
Elly’s journey began with just $300 and a basic website, and she gradually scaled up her business. Her inspiration came from the desire to create a brand that focused on providing a seamless shopping experience for women while fostering a sense of community.
The Product
BootayBag offers a subscription service that allows customers to receive comfortable and stylish underwear each month.
Customers can choose from various subscription options. They select their size and style preferences, and BootayBag delivers the chosen underwear directly to their doorstep.
The company’s mission goes beyond convenience and affordability; it also focuses on creating a community that empowers and supports women. With user-generated content and an inclusive approach, BootayBag aims to represent women of all backgrounds and sizes. Additionally, for every pair purchased, the company donates to women in need.
Price: Undie club program offers either 2 pairs/month for $25/month or 1 pair per month for $15/month. Matching Set Clubs offers either 1 lingerie set per month for $44/month or 1 essential set per month for $36/month.
How It Went
The company’s position before Shark Tank
Since its inception, BootayBag has achieved remarkable success. With a starting investment of $300, Elly transformed the business into a thriving venture with cumulative lifetime sales of $15 million.
The company’s customer base primarily comes from its strong social media presence and user-generated content. BootayBag operates as a subscription service, eliminating the need for retail stores and minimizing overhead costs.
While the company enjoys substantial revenue, there are challenges related to manufacturing and lead times. Currently, BootayBag partners with a manufacturer for production, which has resulted in longer lead times of about eight to nine months due to the company’s scale.
The Negotiations:
Kendra Scott was the first to make an offer of $500,000 for 10% equity, driven by her own experience as a female founder and entrepreneur. Other Sharks, including Barbara Corcoran and Kevin O’Leary, also expressed interest. Barbara offered $500,000 for 20%, highlighting her experience in the fashion industry and the potential synergies with her other businesses. She then joined with Kendra to offer $500,000 for 20%. Kevin O’Leary proposed $500,000 for 15%.
Recognizing the challenges Elly faced with manufacturing and lead times, the Sharks vied for the opportunity to partner with BootayBag. Kendra abandoned Barbara and went back to her original offer of $500,000 for 10%.
Ultimately, Kendra Scott’s understanding of the challenges, her vision for the brand’s growth, and her offer of $500,000 for 10% equity resonated with Elly. She accepted Kendra’s offer, excited to have a partner who could contribute to overcoming the manufacturing hurdles and taking BootayBag to the next level.
