SoaPen Hand Washing Soap For Kids
DEAL
EPISODE SUMMARY
đź•“ Air Date: October 29, 2021
Asking For:
$100,000 for 10%
Investor:
Nirav Tolia
Deal:
$100,000 for 10% + $1/unit royalty until $200,000 is paid
PRODUCT SUMMARY
SoaPen is a colorful, soap-filled pen that kids can use for drawing, making handwashing fun and encouraging proper hygiene.
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Background Story
Amanat Anand and Shubham Issar, the dynamic co-founders of SoaPen, embarked on their entrepreneurial journey after making a life-changing move from India to study industrial design in the bustling city of New York. Their paths converged at the Parsons School of Design, where they honed their creative skills and nurtured a shared passion for innovation. The pivotal moment came when they stumbled upon the UNICEF Wearables for Good Challenge, a global competition that shed light on the critical role of handwashing with soap in preventing life-threatening diseases, particularly among children.
The challenge resonated deeply with Amanat and Shubham, sparking their desire to make a meaningful impact through their design expertise. Their innovative minds went to work, and they conceptualized SoaPen—a colorful, soap-filled pen designed to transform the mundane act of handwashing into a fun and engaging experience for children. By allowing kids to draw on their hands with SoaPen, they harnessed the power of play to encourage proper hygiene practices.
The journey of SoaPen took flight when they emerged as the winners of the UNICEF challenge, securing valuable prize money that kickstarted their research and development efforts. The real breakthrough came when Real Simple magazine featured their product, leading to the rapid sale of 5,000 units. This unexpected success validated the demand for SoaPen and bolstered their confidence. To propel their vision further, Amanat and Shubham successfully secured $225,000 in funding at a $1 million valuation. This injection of capital marked a significant milestone, allowing them to expand and refine their product, laying the foundation for a brighter, healthier future for children worldwide.
The Product
SoaPen, a groundbreaking hygiene product, has redefined the way children approach handwashing. At its core, SoaPen is a soap-filled pen, ingeniously crafted to make the essential act of handwashing a fun and interactive experience for kids.
The heart of SoaPen lies in its soap formula—gentle, stain-free, and entirely safe for children’s delicate skin. Crafted with meticulous care, it incorporates food-grade colorants, infusing a burst of vibrant hues into the handwashing routine.
SoaPen leverages the innate creativity of children, allowing them to become artists of hygiene. With SoaPen in hand, kids can freely draw whimsical designs and patterns on their skin, much like they would with traditional markers or crayons.
Once their creative endeavors are complete, they proceed to the crucial step: rubbing their hands together and rinsing off the soap. This engaging process serves as a gentle reminder to wash their hands for the recommended duration of 20 to 40 seconds.
This innovative product is readily available for purchase on Amazon, providing parents and caregivers with a convenient and effective tool to instill good handwashing habits in the young ones and promote a lifetime of health and well-being.
How It Went
The company’s position before Shark Tank
SoaPen’s journey in the hygiene industry has been marked by both challenges and significant achievements. Since its initial launch in 2019, the company has managed to generate $85,000 in sales, demonstrating a promising start for their innovative product. The early days of SoaPen were characterized by hurdles, including a lack of funding and a limited marketing budget. However, their fortunes changed dramatically when they received a valuable boost in recognition after being featured in Real Simple magazine.
This exposure led to an impressive outcome—the complete sell-out of their entire inventory within just three weeks. This unexpected success served as compelling validation of the product’s demand and spurred the co-founders, Amanat Anand and Shubham Issar, to pursue further growth opportunities. In their pursuit of growth, SoaPen secured $225,000 in funding at a $1 million valuation, enabling them to expand and refine their product offering. Currently, the company is actively promoting its product through Amazon advertising campaigns.
While they are in the early stages of determining the return on ad spend, they maintain a healthy blended profit margin of 40% across all sales channels. Looking forward, SoaPen aims to enhance its marketing strategies and reduce customer acquisition costs, leveraging their innovative product and the growing awareness of the importance of hand hygiene, particularly among children. The company’s commitment to improvement and their promising start position SoaPen as a player to watch in the realm of innovative hygiene solutions.
The Negotiations:
The negotiation phase in the “Shark Tank” episode of SoaPen was a pivotal moment for the co-founders, Amanat Anand and Shubham Issar, as they navigated offers and advice from the Sharks. Lori Greiner, Kevin O’Leary, Robert Herjavec, and Mark Cuban all expressed interest in the product but ultimately declined to invest for various reasons. Lori Greiner and Kevin O’Leary both recognized the potential of SoaPen but had concerns about the company’s marketing and sales strategies. They emphasized the importance of understanding the return on ad spend and customer acquisition costs, which were still being determined at that early stage.
Robert Herjavec appreciated the idea behind SoaPen but felt it was too early for an investment. He believed that the co-founders needed to refine their sales process and reduce customer acquisition costs to succeed. Mark Cuban, while not making an offer, provided valuable advice on the importance of generating free customer acquisition through social media and content marketing. He highlighted the need for relentless marketing efforts to reach a wider audience.
Ultimately, the negotiation concluded with an offer from Nirav Tolia, who believed in the potential of SoaPen and the co-founders. He offered $100,000 for 10% equity in the company, along with a unique $1 royalty per unit sold until $200,000 was reached, at which point the royalty would expire. The co-founders accepted Tolia’s offer, recognizing the value of his industry expertise and willingness to support their mission to promote hand hygiene among children.
