Sometimes the company presented on Shark Tank folds before their episode airs. Zuvaa is one of those companies. According to their website, they grew to fast and did not have the infrastructure to support their platform.
Zuvaa decided to shut down, and Kelechi sounds as though she is tough on herself. She is taking responsibility for the company failure, more so than she probably should. At the same time, she is reaching out to anyone who is offering ideas and suggestions. She still has the dream, but will the desire be enough?
Zuvaa likely did not get a deal
I think it is safe to say that Zuvaa did not get a deal on Shark Tank. Otherwise, Kelechi's company would likely move forward right now.
Season: 9 Episode 919
First Run: 2018/1/21
Shark: Mark Cuban, Sara Blakely, Kevin O'Leary, Lori Greiner, Daymond John
Entrepreneurs: Kelechi Anyadiegwu
Ask: $460k for 10% equity
Deal: No Deal
Zuvaa launched in 2014 when Kelechi was twenty-six years old. Her company sells African-inspired clothing to customers globally. Her sales were just $500 and ramped up to two million dollars in 2016. She even landed on Forbes Magazine's 30 Under 30 list.
Kelechi continues to post on her Facebook fan page and has over 270,000 likes. She does have a substantial audience. Maybe, her current vision won't work, but she can leverage the massive traffic she managed to develop to her Facebook fan page.
Entrepreneurship is challenging, and it sucks to fail. But sometimes those failures turn us into better entrepreneurs. Hopefully, Kelechi will see past the failure and capitalize on the opportunities that are in front of her.
Right now, Kelechi has an opportunity to leverage affiliate marketing with the existing traffic she has coming to her website. The question is, will she leverage the assets she currently has to create new revenue opportunities?
Doing 50k in commissions a month on her site as of the show.
She owns 92% of the company right now. She wants to expand what is coming out of Africa and needs to expand her online platform.
What do the Sharks say about Zuvaa
Mark – If I am a designer what is the relationship. Charge $50 monthly. Mark thinks what she has accomplished is amazing but cannot get to where she is at on the evaluation. He is out.
Daymond – what happens if you have a return? They send them back to the designer in Africa quarterly. Daymond is a target for potential class action law suits, and he is out but he would want to be in it with her.
Sara – How do you find these women? Sara is also struggling with her evaluation and she would need 50% of her company at that amount. She is out.
Lori – How did you come up with the idea? People asked her where did she get her clothes. Lori thinks she is doing amazing on her own and she doesn’t want to take a chunk of her company.
Kevin – Looks nice. Kevin offers to give her debt at 12% interest plus 10% of her company. She declines Kevin’s dea because it is too much.
What do you think about Zuvaa and the current situation?