What Happened To Zuvaa After Shark Tank?

Zuvaa is an online store where you can buy cheap African clothes and accessories from 85 international designers. 

The Zuvaa clothing line (named after a word in the Zimbabwean Shona language that means “sunshine”) is for fashion-forward men and women aged 18 to 35 who enjoy Africa’s vibrant patterns and fabrics. 

Zuvaa is the brainchild of Atlanta, Georgia entrepreneur Kelechi Anyadiegwa. Kelechi discloses on The Tank that she is seeking a $460,000 investment for a 10% stake. Retail guru Daymond John raises an eyebrow in astonishment.

What is Zuvaa?

Zuvaa was a global online market and community for African-inspired clothing and accessories that linked buyers and producers. It also provided context for both the culture and the designer’s experience.

Company NameZuvaa
FounderKelechi Anyadiegwu
ProductAfrica’s Online Fashion Marketplace
Investment Seeking$460,000 For 10% equity in Zuvaa
Final DealNo Deal
SharkNo Shark
Business StatusOut Of Business
WebsiteVisit Website

Who is the Founder of Zuvaa?

Kelechi Anyadiegwu founded and previously served as CEO of Zuvaa. She received her Master’s degree in Human-Computer Interaction from Carnegie Mellon University in 2014. 

A few months later, she began working as a Web Design Consultant with MEMS Industry Group.

She served as a board member and social media and community manager for the Young Men & Women’s African Heritage Association from 2013 to 2014. Kelechi is currently working as a brand specialist for UjuuMedia and the founder and CEO.

Zuvaa Before Shark Tank

Four women dressed in dazzling African garb enter the Shark Tank. They carry the concept of connecting African designers to a global marketplace with them. 

Kelechi Anyadiegwa is a native of Atlanta, Georgia. She founded and led Zuvaa. She is now demanding $460,000 in exchange for 10% stock in her business — a hefty $4.6 million valuation. Daymond seems overwhelmed by this enormous figure.

Kelechi was always drawn to distinctive designs and textiles as a child in Nigeria. She was often taken aback by the colors and vibrancy, and she was aware that there were brilliant designers on the African continent with an eye for making stunning products. 

A lack of tools and resources hinders designers from capturing a worldwide market for their work. She invented Zuvaa as a result.

Zuvaa Shark Tank Update

Zuvaa is the world’s fastest-growing online design marketplace. They connect exceptionally brilliant designers with global consumers on the lookout for one-of-a-kind finds. 

Kelechi describes how it works: buyers browse the online marketplace, which features over 85 vetted and curated designers. 

After they are purchased, the items are mailed directly from the designer or the fulfillment center in Atlanta, Georgia.

Madison, for instance, is dressed in Titi’s Closet and is also Nigerian. The jumpsuit features peplum detailing on the sides and top. 

Michelle is dressed by a Zambian designer who likes to combine wax designs and chiffons in her fabrics. 

For instance, the final designer makes an all-chiffon jumpsuit that is completely beachy. Kelechi can demonstrate the beauty of Africa via design with the assistance of the Sharks.

How Was The Shark Tank Pitch of Zuvaa?

Kelechi distributes samples to each Shark, with Daymond being the most enthused due to his ties to the fashion world. Each Shark is given a piece, which they trade. 

Daymond is wearing ashore, a woven material. Another garment originates in Benin and is made of Ankara, wax print, and suede. 

Kevin stands, puts it up to himself, and inquires whether he may wear it to the pool — he does, wear wraps.

Shark Guests Sara Baker inquires as to how Kelechi locates these women. They primarily source designers through word of mouth, and they also have an extremely severe vetting method, which requires any designers interested in selling through Zuvaa to submit samples. 

They are capable of performing quality control checks and comprehending the designer’s fulfillment and customer service processes.

Lori inquires as to how Kelechi came up with the concept. She is a first-generation Nigerian, and this is her entire culture — she grew up wearing these outfits. 

She founded Zuvaa while a graduate student at Carnegie-Mellon; around that period, she began freelance work in social media marketing and was constantly asked where she acquired her outfits.

Daymond nods in agreement. She recognized how African patterns and textiles were inaccessible to consumers in Western marketplaces. 

She began with a roughly $500 investment and grew it to more than $2 million. 

This has all occurred in less than two and a half years, to which the Sharks respond with applause. 

Mark requests that certain points be clarified; for instance, if he is a designer and wishes to be included on the website, what is the payment arrangement? 

Zuvaa charges a fixed commission of 17% to be listed on the marketplace, in addition to a $50 monthly fee.

The website has approximately 120,000 monthly visitors, which the Sharks consider to be a reasonably high figure. 

Kevin inquired about Zuvaa’s revenue last month — monthly, the company generates approximately $220,000 in revenue through sales. 

This equates to approximately $50,000 in revenue. The business earns $50,000 every month, which is essentially all commission. 

Kelechi is virtually completely risk-free, which is wonderful. However, Daymond notes a risk — when women shop online, there is a greater return rate, frequently due to women ordering two sizes. Kelechi affirms that this does occur.

What happens, then, if there is a return? That gown must be returned to inventory, or it will be returned to Africa. 

Every quarter, Zuvaa returns designer items to the designers; sales proceeds are returned to Zuvaa, and the expenses are minimized. 

Buyers receive a return slip, return their items to Atlanta, and return them to the designers. 

Kevin inquires as to the cost of operating Zuvaa and whether she employs anyone. Each month, they break even with a burn (cost) of approximately $50,000.

Kevin then inquires as to the big vision behind Zuvaa’s estimated $4.6 million valuations. 

Kelechi states that the appraisal is predicated on a 2X multiple of last year’s GMV, but Kevin inquires whether anyone has invested in repairing that value. 

Kelechi says that she bootstrapped Zuvaa, which means she owns 92 percent of the company – the remaining 8% is divided among her other advisers. Kevin surmises that she is quite adaptable in terms of appraisal.

Lori claims Kelechi is doing well, so why does she require a Shark? 

In addition to expanding the brand’s global reach, Kelechi hopes to guide people worldwide to understand the value of African design beyond fashion. 

Africa produces home textiles, art, and a plethora of other things of beauty. Zuvaa needs financing to develop a scalable internet platform. 

They do not yet meet the needs of suppliers or customers. Zuvaa needs financing to develop a scalable internet platform.

Lori inquires about the ensembles’ price points. The dresses range in price from $50 to $250, depending on their complexity. Kevin believes that this is a fair price for the finished product. 

He believes, however, that Kelechi’s deal contains a significant error. While $460,000 is a large sum of money, Mark reminds out that she must scale. 

Kevin is struggling with $4.6 million, but Mark inquires how many designers Kelechi wishes to grow.

Zuvaa Shark Tank Update

Many designers are available on the continent at the present who may create various kinds of works. She wants to reach this level. 

On the other hand, Mark believes that what she has accomplished is remarkable, but he remains stuck on the evaluation. 

$460,000 is a large sum to stomach for a tenth of a percent, and Mark is the first Shark to walk away from the agreement. To be honest, this is unsurprising given his technology and sports background.

Sara then talks — she is proud of Kelechi and of all she has accomplished. She is an Atlanta native and is credited with founding Spanx. 

It’s a fantastic place to start, but she’s also dealing with the $4.6 million appraisals. It is simply too high. 

However, Zuvaa is developing at a breakneck pace, and if they do receive funding from one of the Sharks, they will be able to accelerate their growth even further. 

Sara believes Kelechi has accomplished so much on her own that she can go even higher without giving up a significant portion of equity.

Kelechi inquires about what equity proportion Sara is interested in, and after some deliberation, she decides on 50%. 

In such a young stage of her business, Kelechi was unable to give up even 50%. Sara does not believe she should – the more ownership Kelechi retains, the more control she has over Zuvaa. 

Therefore, Sara is no longer a part of the arrangement, leaving Lori, Kevin, and Daymond.

Lori believes that Zuvaa is making a significant difference in the lives of African women. She does not wish to acquire a portion of Kelechi’s business and thus gracefully departs the transaction. 

Following that, Daymond speaks. He had the distinct privilege of accompanying President Obama to Kenya in 2014-2015. 

Africans love Shark Tank, and that’s no secret. Kelechi is a lightning rod for entrepreneurship, as women have practically carried the continent’s economy on their heads and backs. Daymond is viewed as a target, which is the primary problem.

Anyone can file a class-action lawsuit against a company selling a product in a public market in California. 

A vetting process that involves 30 or 100 or even 300 designers involves a considerable amount of work. 

At that point, Daymond almost becomes a burden for Zuvaa and Kelechi. This is because you can be sued by anyone — Lori summarizes that you may be a legal target if you have deep pockets. 

Daymond is desperate to enter, but he will become a target. Regrettably, he is not included in the agreement.

Kevin is the final Shark standing. For him, stock valuation is ineffective. Finally, none of the Sharks made them an offer of money. 

To be honest, Kevin does not believe the firm is worth $460,000 at the moment, and the only way for the deal to happen is for him to loan the money to her. 

In exchange for a 10% stake in Kelechi’s business, Kevin proposes that Kelechi engages in a loan contract. A loan of $460,000 is designed to have a 12-percent interest rate.

After declining Kevin’s offer, Kelechi is more determined than ever to expand Zuvaa.

What Happened To Zuvaa After Shark Tank?

Zuvaa has stayed strong and is one of Africa’s most active (online) marketplaces for apparel and textiles. 

There is too much going on on the landing page, and the website is initially too stimulating. 

Zuvaa, on the other hand, has evolved significantly since its Shark Tank appearance and now showcases a far bigger selection of African designers.

Zuvaa also includes a sales area, which currently features items priced between $45 and $140 on the high end. 

The incredible feature of Zuvaa is its affordable price. Outside of the discount section, prices range from $59 to $300 for more glorious, room-stealing gowns and garbs. 

Naturally, they sell apparel and accessories such as headwraps, jewelry, purses, and even shoes. 

Jewelry prices can skyrocket if the piece is made from precious stones or is extremely labor-intensive to craft.

Zuvaa became less responsive and consumed more RAM when I continuously used it. 

I could not utilize the sort and filter tools, which appear to have been disregarded despite their vital role in generating sales.

Is Zuvaa Still In Business?

Zuvaa’s closure was announced by Anyadiegwu in a letter published in 2019. This letter states that the company grew too quickly and didn’t have the infrastructure necessary to handle increased demand.

Zuva was originally slated for reopening in 2020 under new management, but it seems the restaurant will remain closed indefinitely.

However, with the launch of Anyadiegwu’s new company UjuuMedia, there is little doubt she has grown as an entrepreneur due to her failure, positioning herself for future success.

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