In 2012, Amrita Saigal give up her dream job.
After working as an engineer at Procter & Gamble for 2 years, the MIT and Harvard graduate did not perceive why the corporate made sanitary napkins and diapers with harsh chemical substances.
So she give up her job and moved to India, the place she constructed an organization referred to as Saathi round sanitary pads comprised of banana peel fibers, which she invented at MIT. Six years later, she returns to the States suspecting she will be able to make higher diapers, too.
In 2021, she launched Los Angeles-based Kudos, which makes disposable diapers from cotton and different sustainable supplies—and on Friday’s episode of ABC’s “Shark Tank,” she scored a $250,000 funding in Kudos from Mark Cuban and visitor Shark. Gwyneth Paltrow.
Each Cuban and Paltrow stated they’re within the product’s sustainability, its chemical-free nature, and maybe particularly, its gross sales. Within the present, Saigal stated Majd made $850,000 in income in its first full 12 months.
Traders additionally favored Segal’s entrepreneurial observe document, and her willingness to take dangers to sacrifice job safety with the intention to chase an thought.
“I’ve seen firsthand how a lot plastic we put in sanitary napkins and nappies,” defined Saigal. “I made a decision to give up my secure job and transfer to India to begin my first firm.”
Previous to showing on the present, Kudos had collected $3.3 million at a valuation of $12.5 million. Saigal used this determine to ask the Sharks for $250,000, in trade for five% of the corporate.
Kevin O’Leary wasn’t satisfied Kudos’ product would make it in a tricky business. “It is a very mature market,” O’Leary stated. “Do you actually assume after you get, say, 4 or 5% of the market, they don’t seem to be going to get up and say, ‘We want eco-friendly diapers?'”
Segal replied that Majd represented a spot within the business. As well as, even 0.01% of the business exceeds $8 million, she added.
Final 12 months, the diaper market was value $82.59 billion in the USA alone. As reported by Grand View Analysis. The report notes that Procter & Gamble is without doubt one of the most dominant corporations out there.
Procter & Gamble didn’t instantly reply to CNBC Make It is request for remark.
Saigal additionally introduced plans to launch new merchandise, together with swim shorts for trainers and well being merchandise for adults.
“We have to work out how one can make this product a family identify,” she stated. “We have to increase to different on-line retailers. We all know Goop’s viewers may be very suitable [and] He has widespread values.”
Nonetheless, Cuban was intrigued. Paltrow requested if she could be all for partnering collectively.
Negotiations went shortly: the couple provided Saigal $250,000 for 12%. Segal requested if they might be prepared to separate 8%, and Cuban stated they might go right down to 10%, with some fairness within the advisors’ inventory.
Saigal proposed a 7% stake with a 3% stake within the advisors, and Cuban and Paltrow accepted. Saygal stated she was ecstatic that Kodos merchandise aligned with Paltrow’s Goop life-style model.
Traders are additionally optimistic. Cuban instructed Paltrow that he believes Seagal is a “star” with a “dynamic pedigree”.
Paltrow replied, “You’d need to guess on a knight like that.” “She clearly has a enterprise thoughts and an engineer’s thoughts. I believe she’s doing one thing actually necessary and actually wanted out there.”
Disclosure: CNBC owns the unique off-network cable rights to “Shark Tank.”
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