What is Toygaroo?
Toygaroo is a toy renting service. The toys were offered online and could be rented by parents. Toygaroo has been dubbed the “Netflix of toys.”
The result is that parents can give their children the trendiest and most expensive toys at a much lower price while also saving some space.
Parents can select a subscription plan that includes the number of toys they desire, and when their children grow bored with their toys, they can exchange them for new ones. Additionally, if youngsters adore a certain toy, they might purchase it.
|Company Name||Online Toy Rental Service – Netflix For Toys|
|Investment Seeking||$100,000 For a 10% Stake in Toygaroo|
|Final Deal||$200,000 For a 40% Stake in Toygaroo|
|Shark||Kevin O’Leary and Mark Cuban|
|Episode||Season 2 and Episode 2|
|Status||Out of Business|
Who is the Founder of Toygaroo?
Toygaroo was started in 2010 by Nikki Pope, Hratch Hutch, and Rony Mirzaians. However, Nikki Pope served as the brand’s face, as she was the only person to appear on Shark Tank.
Toygaroo Before Shark Tank
Nikki Pope made her Shark Tank debut in season 2 with a cost-cutting proposal to assist parents in entertaining their children.
Nikki Pope resides in Los Angeles, California, and runs the business Toygaroo. Nikki Popo reveals that she has a huge family, thirteen nieces, and neph, and they adore playing with toys like any other choys.
She refers to her nieces and nephews as “playtime pros,” but the issue is that the children rapidly become bored with their toys.
Nikki Pope said that this led her and her husband to start Toygaroo.
Toygaroo is an affordable solution for parents to tidy their homes and keep their children entertained by always having new toys available.
Nikki Pope claims that she and her husband do not yet have children, but they would want to. The Sharks embracing the Toygaroo concept will provide Nikki Pope and her husband with financial security for a family of their own.
Her vision for her business is for Toygaroo to be used by every family with children who like playing with toys. She is truly hoping that the Sharks will fulfill her wish.
Shark Tank Pitch of Toygaroo
Nikki Popes appeared on Shark Tank requesting an investment of $100,000 in exchange for 10% stake in Toygaroo. She dubbed her Toygaroo venture as ‘Netflix for toys.’
She demonstrated how this service would be easier and more cost-effective than acquiring the toys directly. The sharks expressed skepticism over the offer.
They grilled Nikki on various topics, including how much money she intends to invest in inventories and how much the family will spend annually.
Nikki Popes left the Shark Tank stage with a deal from Sharks of $200,000 for a 40% stake in Toygaroo.
Final Deal: Kevin O’Leary agreed to invest $200,000 for a 40% stake in Toygaroo.
Who are the Investors of Toygaroo?
Mark Cuban and Kevin O’Leary offered the founders $250,000 in exchange for 35% ownership of the business following Nikki’s Shark Tank proposal. The business would partner with Mark and Kevin, sharing their equity at 40 percent.
However, the study found that individuals can purchase toys at a lower price in local stores due to high shipping costs, high inventory costs, and subsequent studies.
The factors listed above caused the company to close its doors. This prevented Mark and Kevin from investing in the business.
How Does Toygaroo Make Money?
Toygaroo offers a variety of subscription levels. Their entry-level plan, dubbed the Joey Package, is $24.99 and includes four toys.
Additionally, they offered additional package varieties, such as six toy bundles and eight toy packages, ranging in price from $32.99 to $42.99.
Nikki stated that the average household spends between $1200 and $1500 per year on toys.
This treatment will bring the price down to $500. Additionally, this service would assist in managing the storage and space in houses typically occupied by toys. If someone liked a particular toy and desired to retain it, they also had to purchase it.
Toygaroo intended to offer free shipping to all consumers, and they acquired the first 500 consumers using word-of-mouth promotion at roughly $40 per toy.
What Happened To Toygaroo After Shark Tank?
Nikki Pope came on Shark Tank hoping to obtain funding from one of the Sharks to expand her “toy-renting service.”
Before her appearance on Shark Tank, she conducted a soft launch to determine whether there was a market for this service.
The test was positive, which is why she desired to expand her business. She was particularly interested in Kevin O’Leary due to his knowledge of the toy sector.
Kevin O’Leary chose to boost his offer and work with Mark Cuban following a brief bidding battle with Robert Herjavec/Mark Cuban.
Mark Cuban accepted, leaving Robert Herjavec behind. Nikki Pope accepted a joint offer of $200,000 in exchange for a 40% interest in Toygaroo.
Even though Mark Cuban and Kevin O’Leary invested in Nikki Pope, it appears that the company has ceased operations.
There were indicators of Toygaroo going bankrupt a few years ago, particularly after they posted a banner on their website declaring they couldn’t take on any new members due to their “explosive expansion.”
Additionally, after researching, I discovered that the Toygaroo website domain name and brand name had been sold, indicating that the company had ceased operations. It’s terrible that businesses continue to fail, even when they secure funding from the Sharks.
Numerous issues remained unresolved. For instance, the company advertised free shipping, but each toy is unique in size and weight.
As a result, costs will vary from time to time. This also produced a cash flow issue. Another issue was that growing the business would require additional inventory.
Tygaroo was featured on various local stations and television shows following Shark Tank.
Nikki has made appearances on ABC News, CNSC, Good Morning America, The Nate Berkus Show, and Saturday Night Live.
Although Mark and Kevin invested in Toygaroo and Nikki acquired notoriety through her appearances on numerous television shows, Tygaroo quickly fell out of business owing to a lack of effective planning.
Why Did Toygaroo Fail?
Toygaroo’s creators got a $200,000 investment through Shark Tank but failed to keep the company alive after a few months.
The primary reason behind this was that inventory and logistical costs were prohibitively expensive.
For this reason, the company needs to invest in inventory and logistics. The company declared bankruptcy shortly after that.
The company filed for Chapter 7 bankruptcy protection in 2012. Chapter 7 of Title 11 is a Code section that regulates liquidation under the United States bankruptcy rules.
ToyGaroo’s website has been offline since 2012 and was formally shuttered in 2016.
Did Toygaroo Get a Deal on Shark Tank?
Mark Cuban, Barbara Corcoran, Daymond John, Kevin O’Leary, and Robert Herjavec appear in Nikki’s show. Kevin O’Leary instantly makes her a $200,000 offer for 35% of the company.
Barbara Corcoran asks Nikki if she has the right to sell the company, to which she replies that she can do whatever she wants with it. Barbara is dissatisfied with the deal and leaves.
Daymond John has a poor track record of dealing with people who are not in control of the company and exits.
Mark Cuban has partnered with Robert Herjavec on the deal, but Robert Herjavec likes it. The company’s CEO recommends completing the sale, offering her $200,000 for 40% of the business.
Nikki reacts by asking Mark and Robert whether they will agree to a bargain of $200,000 for 40%. Nikki accepts Kevin’s offer to complete the purchase at that price. Mark offers to divide the contract with Kevin, excluding Robert. Kevin turns to Mark. Mark agrees.
What Is the Net Worth of ToyGaroo?
The valuation of ToyGaroo was $1 million when it appeared on Shark Tank. The net worth of ToyGaroo is unknown as of 2022 since the company went out of business.