01.30.23
Kudos, the eco-friendly, cotton-based diaper brand is teaming up with the “Sharks.”
Founder Amrita Saigal appeared on Shark Tank last month where she secured $250,000 in funding in exchange for a 10% stake in the company from host Mark Cuban and guest host Gwyneth Paltrow, the actress and founder of lifestyle brand Goop. The duo agreed to invest in the diaper brand after hearing Saigal’s background as an MIT-trained engineer, a Harvard Business School graduate and a part of Procter & Gamble’s research team as well as the story behind developing the award-winning diaper brand featuring 100% cotton touching baby’s skin.
Launched in 2021, Kudos’ annual sales are currently about $850,000, according to Saigal, but that number is expected to reach $4.5 million in the next year when the company should also reach profitability. Late last year, Kudos launched cotton-based baby wipes, and the brand is planning to extend into swim diapers and training pants in the near term and adult diapers in the longer term.
Currently, a month’s supply of Kudos costs $88, or $78 with a subscription, putting them on the higher end of the baby diaper market but in line with other eco-friendly options. All sales are direct to market and Saigal estimates Kudos has spent less than $100,000 on marketing efforts since its launch.
“Word of mouth has been huge for us,” she said.
Confident of the efficacy of the product and the consumers’ appetite for more sustainable and eco-friendly diapers, Saigal said she came to Shark Tank seeking help spreading brand awareness.
“We need help to figure out how to make this product a household name. We know we have a better product and we know parents love it,” Saigal, who is also a new mom, said. “We need to expand into other online retailers. The Goop audience is very aligned (with us) and has shared values.”
Goop, a wellness-centered lifestyle brand founded by Paltrow in 2008, is currently valued at $250 million. Its target audience tends to be high income individuals, mostly women, with an interest in personal well-being, the type of consumer that would be more likely to pay a premium price for a high quality, efficient diaper made from more cleaner, greener raw materials.
Kudos uses a 100% cotton topsheet, meaning that the baby’s bottom touches only cotton, not polypropylene, which is found in most other diapers. Cotton is the number one pediatrician-recommended material to combat and prevent skin conditions like diaper rashes and eczema. Other features include a double-layer of absorbent material to protect against leaks, extreme softness and thinness.
“I do see a really big white space in the market,” said Paltrow. “I was using eco diapers when I had babies and had mustard explosions. If it’s true that they function the way you say they function I think you have a huge opportunity here.”
Paltrow is well known for her ability to spot lifestyle and wellness trends early.
“Gwyneth is a superstar,” Cuban said after suggesting to Paltrow they share the investment. “We have products in every retail organization. We can get you there.”
Cuban became an investor in another nonwovens-related company, Dude Wipes, in 2015. Since then the manufacturer of male-oriented flushable wipes has grown its sales to a reported $67 million and is on track to become the second leading brand of moist toilet tissue in the U.S.
Saigal originally sought $250,000 for a 5% stake in the company but after negotiations agreed to give up a 7% equity stake and 3% advisory stake. She expects having Paltrow on board to be a major coup for the brand.
“No one knows our audience better than Gwyneth Paltrow,” Saigal says. “With her on board, we’ll have Kudos on every babies’ butt as soon as possible.”
Founder Amrita Saigal appeared on Shark Tank last month where she secured $250,000 in funding in exchange for a 10% stake in the company from host Mark Cuban and guest host Gwyneth Paltrow, the actress and founder of lifestyle brand Goop. The duo agreed to invest in the diaper brand after hearing Saigal’s background as an MIT-trained engineer, a Harvard Business School graduate and a part of Procter & Gamble’s research team as well as the story behind developing the award-winning diaper brand featuring 100% cotton touching baby’s skin.
Launched in 2021, Kudos’ annual sales are currently about $850,000, according to Saigal, but that number is expected to reach $4.5 million in the next year when the company should also reach profitability. Late last year, Kudos launched cotton-based baby wipes, and the brand is planning to extend into swim diapers and training pants in the near term and adult diapers in the longer term.
Currently, a month’s supply of Kudos costs $88, or $78 with a subscription, putting them on the higher end of the baby diaper market but in line with other eco-friendly options. All sales are direct to market and Saigal estimates Kudos has spent less than $100,000 on marketing efforts since its launch.
“Word of mouth has been huge for us,” she said.
Confident of the efficacy of the product and the consumers’ appetite for more sustainable and eco-friendly diapers, Saigal said she came to Shark Tank seeking help spreading brand awareness.
“We need help to figure out how to make this product a household name. We know we have a better product and we know parents love it,” Saigal, who is also a new mom, said. “We need to expand into other online retailers. The Goop audience is very aligned (with us) and has shared values.”
Goop, a wellness-centered lifestyle brand founded by Paltrow in 2008, is currently valued at $250 million. Its target audience tends to be high income individuals, mostly women, with an interest in personal well-being, the type of consumer that would be more likely to pay a premium price for a high quality, efficient diaper made from more cleaner, greener raw materials.
Kudos uses a 100% cotton topsheet, meaning that the baby’s bottom touches only cotton, not polypropylene, which is found in most other diapers. Cotton is the number one pediatrician-recommended material to combat and prevent skin conditions like diaper rashes and eczema. Other features include a double-layer of absorbent material to protect against leaks, extreme softness and thinness.
“I do see a really big white space in the market,” said Paltrow. “I was using eco diapers when I had babies and had mustard explosions. If it’s true that they function the way you say they function I think you have a huge opportunity here.”
Paltrow is well known for her ability to spot lifestyle and wellness trends early.
“Gwyneth is a superstar,” Cuban said after suggesting to Paltrow they share the investment. “We have products in every retail organization. We can get you there.”
Cuban became an investor in another nonwovens-related company, Dude Wipes, in 2015. Since then the manufacturer of male-oriented flushable wipes has grown its sales to a reported $67 million and is on track to become the second leading brand of moist toilet tissue in the U.S.
Saigal originally sought $250,000 for a 5% stake in the company but after negotiations agreed to give up a 7% equity stake and 3% advisory stake. She expects having Paltrow on board to be a major coup for the brand.
“No one knows our audience better than Gwyneth Paltrow,” Saigal says. “With her on board, we’ll have Kudos on every babies’ butt as soon as possible.”
