Desi Toys is an innovative brand that manufactures toys for kids of today’s era that helps in building their natural skills and reviving classic toys. Swapna Soham Wagh is an MBA graduate specializing in Marketing from Mumbai and also retail specialization from IIM Calcutta.
Desi Toys is an Indian toy brand that brings back the timeless collection of toys and gives it an Indian touch.
More About Desi Toys
The business has been in operation since 2017 and is making great sales and garnering good profits when they appeared on shark tank.
The company employs Indian artisans to make the toys, and at the same time, they ensure they offer the highest quality products to the consumers. All the products they sell have a beautiful Indianness to them, be it in the form of designs, names of products, etc.
The unique features of Desi Toys include the-
- All their toys are 100% made in India
- All their products are lab-tested, which ensures the quality of the products
- There is no plastic in their products
Desi Toys Shark Tank Pitch and Updates
The founder of Desi Toys appeared on Shark Tank India and demanded INR 50 lakhs for a 3% equity at a valuation of INR 16.67 crores.
After the initial pitch, all the sharks were extremely interested in the products, and they started enjoying themselves for a while.
Aman then asked Swapna about her sales. She replied that their sales in FY 17-18 were INR 40 lakhs, followed by INR 60 lakhs and INR 75 lakhs in FY 18-19 and 19-20, respectively. After a brief break of 3 months due to Covid, they were able to garner INR 61 lakhs in FY 20-21, and finally, in FY 21-22, they made INR 1.15 crores.
Swapna further went on to explain her revenue model and concluded by saying that the gross margin for the entire business is approximately 50%. However, from D2C and marketplaces, they are making around 65-70% gross margin.
After learning about the whole revenue model, Namita was curious about the price point of the products, which she believed was a bit expensive for the Indian market.
Namita finally concluded by saying that she feels it is quite a cluttered market and that scaling the brand can be a bit difficult. Hence she was the first shark to move out of the deal.
Anupam was the next one to share his opinions. According to him, the items are quite easily copyable, and the market size is also quite small. For these reasons, he was also unable to take the deal forward. Followed by Anupam, Vineeta, and Aman were also out, citing the same scaling reason as the issue.
However, Amit was convinced that Swapna was amazing as a founder. Even though he did not believe that she would be able to scale this business significantly, he wanted to partner with her to develop more such brands in the future.
So he offered INR 30 lakhs in debt and INR 20 lakhs in equity for 20% of the company at a valuation of INR 1 crore.
After hearing the offer, Swapna countered with an offer of INR 20 lakhs in equity for 5%. Unfortunately, Amit was not ready to accept the counteroffer, and Swapna was unable to close the deal.
|Company Name||Desi Toys|
|Founders||Swapna Soham Wagh|
|Shark Tank Episode||Season 2 – Episode 28|
|Asked For||INR 50 lakhs for 3% equity|
Even though Amit was the only shark to give an offer, Swapna was not ready to give up 20% at that point and hence the deal could not be closed.
Frequently Asked Questions About Desi Toys
After their appearance on Shark Tank India Season 2, people were trying to find more information about Desi Toys. Here are some of the frequently asked questions about them.
1. Who Is The Founder of Desi Toys?
The founder of the company is Swapna Soham Wagh. She did her MBA in Marketing from Mumbai and then specialized in retail from IIM Calcutta.
2. Is Desi Toys profitable?
Yes, Desi Toys is a profitable company and they are showing amazing growth year by year.
3. Why did the Sharks not invest in Desi Toys?
For all four sharks except Amit Jain, the primary issue was with scaling. They believed Desi Toys would not be able to grow significantly after a certain stage. Even though Amit gave an offer, Swapna was not ready to give up 20% equity and hence the deal could not be closed.
4. What happened to Desi Toys after the Shark tank?
Desi Toys was Unable to secure a deal on Shark Tank. However, we are following up with them and shall share any updates as soon as we receive them.