Toymail Plush Toy and Message App For Kids
DEAL
EPISODE SUMMARY
🕓 Air Date: February 17, 2017
Asking For:
$250,000 for 2,50%
Investor:
Chris Sacca, Lori Greiner (50/50)
Deal:
$600,000 for 5%
PRODUCT SUMMARY
Toymail introduces the Talkies, a unique way for kids as young as 3 to send voice messages without the need for a phone. The messages are sent through a toy, connecting children with their parent-approved contacts.
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Background Story
Toymail, founded by Gauri Nanda, is a New York City-based company that emerged from a unique intersection of personal experience, entrepreneurial spirit, and a desire to foster meaningful connections within families. Gauri’s journey traces back to her immigrant parents, who, after arriving in the United States from India with minimal resources, built a successful newspaper business, showcasing resilience and the entrepreneurial spirit.Gauri, an MIT graduate, initially gained recognition for her inventive prowess when she created Clocky, an alarm clock that gained widespread popularity for its amusing functionality.
Building on her entrepreneurial success, Gauri envisioned a product that could transcend mere entertainment and serve a deeper purpose. The idea for Toymail was born out of a desire to bridge the gap between parents and children, especially when physically apart. The Toymail Talkies, the company’s flagship product, revolutionizes the way families communicate, allowing children as young as 3 to send voice messages without the need for a phone. This innovation was inspired by Gauri’s own experiences and the challenges faced by modern families in staying connected amidst busy lives.
The toy’s concept centers around simplicity and fostering genuine connections, reflecting Gauri’s dedication to creating products that go beyond mere utility. The Toymail team, led by Gauri, is committed to shaping an entirely new market, emphasizing the importance of family bonds. Located in the dynamic entrepreneurial landscape of New York City, Toymail represents a blend of technological innovation, creative thinking, and a heartfelt commitment to enhancing family communication in the digital age.
The Product
Toymail’s flagship product, the Talkies, is a groundbreaking communication device designed to strengthen the bond between parents and children. Simple yet innovative, the Talkies allow children aged 3 and above to send voice messages to parent-approved contacts without the need for a phone.
The process is user-friendly: children push a button on the back of their toy, and the voice message is instantly sent through the Toymail app. Parents can listen to these messages directly on the app and respond, creating a seamless and engaging communication channel. The Talkies’ hardware is interchangeable, enabling parents to switch it into new animal skins as their child’s interests evolve.
Beyond its core functionality, the Talkies respond to physical play, adding an interactive element to the communication experience. Parents can unlock additional features, educational content, games, stories, songs, and more, making the Talkies both entertaining and enriching.
Priced at a reasonable $50 MSRP, with a manufacturing cost of $20, the Talkies offer attractive margins for e-commerce retail. Toymail’s product is available for purchase online, providing a convenient and accessible avenue for parents to enhance family communication in a digital age. The thoughtful design, educational components, and ease of use position the Talkies as a valuable addition to modern family dynamics.
How It Went
The company’s position before Shark Tank
Toymail has demonstrated robust performance and strategic positioning in the marketplace, reflecting its innovative approach to family communication. The company’s financial health is buoyed by successful fundraising efforts and strategic partnerships. Having raised a total of $1.6 million at a $10 million valuation, Toymail secured investments from notable entities such as Verizon and Amazon, indicating strong confidence in the company’s vision and potential.
Strategically, Verizon, one of Toymail’s investors, not only provided financial backing but also presented an opportunity for the company to tap into an untapped market segment—children under 10—where they currently lack dedicated devices. Moreover, Amazon expressed interest in collaborating with Toymail to integrate their Echo voice-control technology into the toys, potentially expanding Toymail’s reach. Toymail has wisely targeted e-commerce retail, offering the Talkies at a competitive $50 MSRP with a manufacturing cost of $20, ensuring healthy profit margins.
The company recognizes the importance of scalability, with plans to bring down the cost of goods further as they scale, enhancing profitability in the long term. Currently structured as a private corporation, Toymail is led by Gauri Nanda, the co-founder and driving force behind the company. The company’s commitment to fostering family connections aligns with its customer base—families seeking innovative, child-friendly communication solutions. Toymail’s position in major retail chains and partnerships with wholesalers contribute to its widespread availability, further strengthening its market presence.
The Negotiations:
The negotiations for Toymail on Shark Tank unfolded as a strategic dance, showcasing Gauri Nanda’s adeptness in securing a favorable deal for her innovative product, the Talkies. Gauri entered the Tank seeking $250,000 for 2.5% equity, valuing the company at $10 million. The first offer came from Chris Sacca, who proposed a substantial investment of $600,000 for a 5% equity stake. While expressing admiration for Gauri and the potential of Toymail, Sacca was hesitant about the initial valuation, considering it relatively high for a company at this stage.
Mark Cuban, recognizing the impressive background and potential of Toymail, countered Sacca’s offer with $500,000 for 5%, expressing his reservations about the initial valuation as well. This triggered a strategic move from Gauri, who skillfully invited both Sharks to participate in the deal, essentially leveraging their unique strengths. In an unexpected turn, Lori Greiner expressed interest but sought to negotiate the terms, emphasizing the need for real estate in the deal. Gauri navigated the negotiations strategically, eventually accepting Chris Sacca’s offer of $600,000 for 5%.
However, Lori Greiner, recognizing the value in Gauri’s product and the potential for collaboration, decided to join the deal with $300,000 for 2.5%, This negotiation showcased Gauri’s shrewd decision-making, leveraging multiple Sharks to enhance the overall value of the deal. The collaboration with both Chris Sacca and Lori Greiner provides Toymail not only with financial support but also with diverse expertise and valuable connections, positioning the company for accelerated growth and success in the family communication market.
