Sabri’s Shark Tank roundup: Wuli Grooming can dominate a high-demand but underserved segment
This week on Shark Tank Australia, curly haircare brand Wuli Grooming wins Shark Sabri Suby over hook, line, and sinker.
Join Shark Tank Australia shark Sabri Suby for a weekly roundup of each week’s king or queen of the tank and the pitches that were eaten alive. This week, curly haircare brand Wuli Grooming wins Sabri over hook, line, and sinker.
Investment is all about managing risk, and each week in the tank, we have to work hard to unpack exactly how much risk is at stake. We’re constantly circling the pitch, hunting for red flags like over-valuations, bad profit margins, lack of attention to detail, and over-complex business models.
Then, every so often, there’s a risk we’re willing to take. Read on to find out which businesses reeled me in this week.
Mimi and Co
First in the tank was Amy, the brains behind Mimi and Co, a brand specialising in reusable cloth nappies. She entered the tank seeking $100,000 for a 10% stake in her business. Amy’s pitch emphasised the common problem parents face: cloth nappies that leak. Her solution included innovative materials like bamboo and hemp cotton and even a ‘poonami’ protector.
Amy had seen rocket-fuelled growth, with $550,000 in revenue for 2023, and a large portion of that coming from organic traffic. The problem? She had an extensive range of product variations, with over 90 different SKUs.
More SKUs translate to more inventory management and significant cash flow hurdles. As you scale, a high number of SKUs become extremely cash intensive, hence why Amy was pushing for a 50,000 line of credit. Even with the investment she eventually scored, she would still need to constantly come back to the piggy bank to get more cash to fund the inventory. For that reason, I was out.
Holiday Celebration Trees
Up next was Katie, showcasing her stackable Christmas tree displays. She came to the tank seeking $300,000 for a 15% equity share in her business. These trees, crafted from recycled plastic, boasted a retail price of $680 and a production cost of $240, delivering a healthy profit margin.
Katy had seen killer sales figures, tallying up to $1.2 million this year, with a projected forecast of $2.7 million. However, concerns loomed due to the seasonality of her product. I decided to pass on this one, but Davie saw potential and offered to join up with Robert for $300,000 for 30% equity. I’m rallying from the sidelines.
Mearth Scooters
Ming from Mearth Scooters took the stage, seeking $250,000 for a 1.8% equity slice. His electric scooters featured a unique battery technology, although the lack of a patent raised some eyebrows. With a valuation pegged at $12.5 million, Mearth Scooters had seen huge growth, boasting sales of $5.5 million this year and a profit margin of 40-45%.
As a big scooter fan myself, the product seemed solid — but the competitor landscape, lack of patents, and eye-watering valuation were all huge red flags for me. The challenge of convincing consumers of the product’s value when it closely resembled existing options was too much of a risk, and I ultimately decided to pass on this one.
Wuli Grooming
Last but not least, Amadou presented Wuli Grooming, his line of curly haircare products. Amadou had been in business for 16 months and had healthy profit margins. The standout was his Crown of Curls bundle, with a killer 71% margin.
Amadou was an absolute weapon during his pitch, and his product had mass-market appeal, targeting folks with curly hair — an underserved niche. This pitch struck a chord with me, and I made an offer of $150,000 for 45% of the business and a $2 royalty until the investment was recouped. Amadou countered with 30%, and I came back with 40% equity, sealing the deal.
Why did I decide to invest? Wuli aligns perfectly with my investment ethos: ‘Don’t bet on the horse but on the jockey’. Amadou is a superstar jockey: he’s articulate, not afraid of hard work, and dedicated to achieving product-market fit.
Wuli Grooming is a perfect fit for Facebook and YouTube ads, where visually showing the product being applied and before-and-after results is always a winning formula. His product can dominate the market, with an estimated 45% of people having curly hair — a high-demand but often overlooked market segment.
Read more about Shark Tank Australia here.
