From $1M to $209M: How Scrub Daddy has become the greatest selling product to emerge from 'Shark Tank'
Over the past three years, Scrub Daddy has raked in a total of $75M in revenue
If you pass by your local supermarket and see sponges with smilies on them don't be alarmed. Scrub Daddy manufactures smiley face shaped sponges of the same name. The sponges are unique as its texture changes according to the temperature due to a polymer used in production. They become soft in hot water and hard in cold water. In 2007, founder of the company and detailer Aaron Krause damaged a car while washing it which led to him to designing his own line of polishing and buffing pads.
Krause said that he realized his idea would become a multi-million dollar idea in the future. He had two patents on his sponge design. In 2012, he founded Scrub Daddy Inc using grassroots funding. He decided to pitch for funding on the reality TV show 'Shark Tank'. In an episode aired in October 2012, viewers saw Kraus deliver a pitch that impressed the Sharks, especially Lori Greiner. The businesswoman made a deal with the entrepreneur to own a 20 per cent equity stake in the business for $200,000.
Where is Scrub Daddy now and how is the company faring today?
In January 2017, Scrub Daddy's total revenues surpassed $100M and was the highest of any 'Shark Tank' product. By February 2020, the company moved 10 million units for total sales worth more than $50M since the pitch. Based on the company's business statistics, it is valued at $209M as of October 2019 from $1M when it started. Over the past three years, Scrub Daddy has raked in a total revenue of $75M, according to Greiner.
In future, the company plans to manufacture and launch more products including screen cleaners. They are also working towards presenting their products in every major US retailer and even going global. They expanded their headquarters by purchasing the adjacent building, which in turn doubled their footprint to 80,000sqft from 5,000sqft. Scrub Daddy has become a giant in the cleaning industry in America and is still extending its services in many parts of the world.