A lot of ridiculous products have made it to Shark Tank over the years, and Potato Parcel falls into that category. The company allows you to mail potatoes with a custom message to anyone. Founders Alex Craig and Riad Bekhit have a deal with Kevin O’Leary. In 2024, Potato Parcel is valued at $2 million.
Founder
Alex Craig is a Plano, Texas native. He graduated from the University of North Texas and worked in app development in his early years. However, Alex is considered the “brains” behind this strange business idea.
His business partner, Riad Bekhit, is from San Francisco and studied policy, planning and development at the University of Southern California. Bekhit also holds a bachelor’s degree in corporate finance from San Francisco State University.
Bekhit has worked in the business development team at Gigya, helping big brands connect with their clients’ online audiences, and also served as the Digital Marketing Manager for Helen’s Jewels.
The original potato plot
One day, while casually browsing on Reddit, Alex came across a post about potatoes with stamps on them. While many people thought it was just a funny meme, the young entrepreneur thought it would be great as a real-life product.
Alex created an online platform where people could mail potatoes with personalized messages on them. He promoted it on Reddit and several other social media sites, and it quickly went viral.
The company was founded in 2015, but there was a time when he needed money to buy a house. Alex sold the company to Philz for $42,000, but Alex received a royalty of $1 per potato in the first 60 days after the Shark Tank aired. In the first year, the company made $215,000.
Shark Tank Appearance
Craig tried to get on Shark Tank several times but was finally accepted on Potato Wrap. Approximately 40,000 businesses apply each season, but only 100 make it to the air. Alex and Riad appeared on the show in full-body potato costumes, and it didn’t take long for them to explain their business.
The young entrepreneurs were looking to raise $50,000 for a 10% stake. The sharks had fun with their pitches and didn’t take them seriously until they revealed sales. Potato Parcel made $215,000 in 13 months and continually reinvested profits into the business.
Kevin O’Leary and Robert Herjavec were the most interested, and they competed fiercely for the deal. I mean, who wouldn’t want to have a potato company in their portfolio? The entrepreneurs ultimately chose Kevin’s offer of $50,000 for a 10% stake.
After Shark Tank
Since the show, Potato Parcel has been a huge success. Mr. Wonderful called Potato Parcel one of his best investments on Shark Tank! Riad Bekhit revealed in 2018 that the company has sold over 70,000 potatoes since appearing on the show.
Business is booming, and the company still mails thousands of potatoes every year. They have expanded their offerings and now sell special packages and novelty gifts, such as boxes filled with glitter, socks and cupcake toppers.
This unlikely Shark Tank product is now worth $2 million. The founders successfully built a long-term business out of a meme. They now sell sets for occasions like graduations and Mother’s Day.
Riad Bekhit, who describes himself on LinkedIn as the “Chief Potato Officer,” has two other full-time employees who handle orders. Alex Craig left the company in 2015 to become the founder of viral marketing company TriplePlay.
Categories: Shark Tank
Source: dut.edu.vn
