Tattoos can last forever, but some tattoos lose their freshness. Mad Rabbit sells tattoo aftercare products that prevent discoloration and keep tattoos fresh. Founders Selom Agbitor and Oliver Zak pitched the product on Shark Tank and signed a deal with Mark Cuban. As of 2024, Mad Rabbit is valued at $12 million.
Zach and Agbito
Oliver Zak grew up in Cleveland, Ohio, and Selom Agbitor was born in Accra, Ghana. The two met while attending Miami University as members of the Delta Sigma Phi fraternity.
Oliver and Selom are ambitious entrepreneurs who started a store selling women’s swimwear directly to the public. The two worked hard to start their own business and later sold the swimwear brand before becoming senior citizens.
Founding of Rabbit
Shortly after selling the company, Oliver had the idea to launch a line of tattoo aftercare products. He had several tattoos on his body but didn’t know how to prevent discoloration. Oliver brought it to his business partner, but Sellom was initially hesitant.
When they researched the niche, they found that there wasn’t a lot of competition. They rolled up their sleeves again and got to work. In 2019, the two invested $300 and created their first tattoo moisturizer.
In its first year, Mad Rabbit made $400,000 selling Tattoo Balm alone. The company added new products like lotions and gels, and sales hit $2.8 million in 2020. In addition to direct sales, they also offer a subscription service.
Shark Tank Appearance
By 2021, Selom and Oliver had already achieved impressive results, but they wanted Mad Rabbit to become the face of the tattoo aftercare industry. They appeared on Season 12 of Shark Tank, seeking $500,000 for a 5% stake.
The $10 million valuation blew the sharks away, but luckily it didn’t hold them back. Thankfully, they had the sales to back it up. At the time of the pitch, the company was doing $300,000 a month in revenue, a 20% profit margin. Plus, impressively, they were doing this business part-time.
Kevin O’Leary was the first to express interest, offering to loan $500,000 at 9.75% in exchange for 5% equity. Cuban, on the other hand, offered the same amount but for 12%. The founders had time to think about it and clearly wanted Lori to come on board, but they took Mark’s deal.
After Shark Tank
After appearing on Shark Tank, Sellom and Oliver quit their jobs to focus full-time on the business. The deal with Mark Cuban has been completed, and the billionaire is now the company’s largest investor. The founders revealed that the show brought them a huge financial boost, and they have been contacted by people offering to help.
The company has added tattoo sunscreen and a new face cream to their product line. These products are available through MadRabbit.com, Urban Outfitters, and Amazon. On their website, they proudly show how they have helped protect 3,299,055 tattoos!
In January 2022, they signed an exclusive 3-year digital media deal with Inked Magazine. This means that Mad Rabbit is the only tattoo aftercare product available in Inked’s online store and flagship store in New York. In addition, they will reach Inked’s 60 million followers on social media.
As of May 2021, the company had $4 million in year-to-date sales and expected full-year revenue to reach $12 million. To fund further growth, Mad Rabbit raised another $4 million, with Cuban participating.
Mad Rabbit has an estimated annual revenue of $10 million and a valuation of $12 million. Due to its heavy advertising spending, Mad Rabbit has sacrificed profits for growth. Given the tough economic situation, they may have to cut back on advertising spending in the future.
Categories: Shark Tank
Source: dut.edu.vn
