A ton of ridiculous products have made their way into the Shark Tank over the years, and potato wraps fall into that category. The company allows you to mail potatoes with a custom message to anyone. Founders Alex Craig and Riad Bekhit struck a deal with Kevin O'Leary. Therefore, the value of the potato parcels was estimated at $2 million.
Founder
Alex Craig is a native of Plano, Texas. He is a graduate of the University of North Texas and spent his early career as an application developer. However, Alex is considered the “brains” behind this bizarre business idea.
His business partner, Riad Bekhit, is from San Francisco and studied policy, planning and development at USC. Bekhit also holds a bachelor's degree in corporate finance from San Francisco State University.
Bekhit works on Gigya's business development team, helping big brands connect with clients' online audiences, and as Digital Marketing Manager for Helen's Jewels.
Create potato parcels
One day, Alex was casually browsing Reddit and came across a post about potatoes with a stamp. While many thought it was just a funny meme, the young entrepreneur thought it would work well as a real-life product.
Alex has built an online platform where people can mail potatoes with personalized messages. He promoted the site on Reddit and several other social media sites, where it became a viral sensation.
The company was founded in 2015, but at one point he needed money to buy a house. Alex sold the company to Philz for $42,000, but Alex received a $1 per potato royalty for the first 60 days after “Shark Tank.” In the first year, the company made $215,000.
Shark Tank Appearance
Craig tried several times to join Shark Tank, but was eventually accepted into the Potato Parcel. About 40,000 companies apply each quarter, but only 100 get on air. Alex and Riad came in wearing full-body potato costumes and didn't take long to explain their business.
The young entrepreneurs are looking to raise $50,000 to purchase a 10% stake. The Sharks were having fun on the field and didn't take them seriously until they revealed the sales. Potato Parcel made $215,000 in 13 months and continues to reinvest profits into the business.
Kevin O'Leary and Robert Herjavec were the most interested and fiercely competed for the deal. I mean, who doesn't want a potato company in their portfolio? The entrepreneurs ultimately chose Kevin's deal of $50,000 in exchange for 10% of the shares.
After Shark Tank
After the show ended, “Potato Parcel” went on to become a huge success story. Mr. Wonderful calls potato packages one of his best investments on Shark Tank! Riad Bekhit revealed in 2018 that the company had sold more than 70,000 potatoes since appearing on the show.
The company is thriving and still mails thousands of potatoes every year. They have expanded their product range and now sell special bundles and novelty gifts such as filled glitter boxes, socks and cupcake toppers.
This seemingly impossible Shark Tank product is now worth $2 million. Founders have done a great job of using memes to build long-term businesses. They now sell bundles for occasions like graduations and Mother's Day.
Riad Bekhit calls himself “Chief Potato Officer” on Linkedin and has two other full-time employees helping process orders. Alex Craig left the company in 2015 to become the founder of viral marketing company TriplePlay.
Categories: Shark Tank
Source: svlsf.edu.vn