Toying with Change: Green Pinata Toys
Sometimes all it takes is an idea to change your life.For Shiva Kashalkar, that idea took shape shortly after she gave birth to her daugh...
High quality, educational, eco-friendly toy rental subscription service with recurring monthly revenue
Powerful recommendation engine individually tailors and optimizes toys to engage and develop each child
60% monthly growth; over 2000 boxes shipped to date to over 600 unique customers
Sharing economy is expected to grow to $335 billion in 8 years
Uniquely positioned to earn promotional revenues from organic, eco-friendly baby brands
Kids get bored of toys too fast
Wasted Family budget, time and space
Sharing economy is booming: Estimated to be at $335 billion by 2025
Millennial consumers are re-thinking the value of ownership. They value:
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The kids enjoy the toys for as long as they like, and parents can buy the ones their kids can’t part with. When done, they pack up the green piñata box, pop on the prepaid label and hand it to the mail man.
We have sanitized and shipped more than 8000 toys and our sanitization process has made sure the toys are 100% germ-free.
Green Piñata is in a high growth phase. With parents clamoring to subscribe, grandparents relieved to have gift options and partners seeking visibility to our subscribers, we are gaining the investment of individuals and accredited angel investors who want to be part of our success.
Green Piñata Toys have 3 sources of revenue.
In 2017, we have growing revenues from Rental Subscription
Starting 2018, we expect to earn revenues from business partner promotions and and gifts for newborns and special occasions.
Crushed competition and now the leading toy rental for ages <5
Our toy recommendation engine individually tailors and optimizes toys to engage and develop each child. This is a unique differentiator in the industry
When my daughter was 8 months old, my husband and I were very excited about shopping for toys for her. At the time I had no idea that 85% of our brains develop by the time we are age 5! We were paying several hundred dollars on toys that she only played with for a few days. The clutter from unused toys drove me crazy and we were always running out of storage space. I soon realized I was not alone and bam Green Pinata Toys was born. Play time should be more about having fun together and less about stressing over wastage and clutter.
My team and I are very proud and passionate about building Green Piñata because of two main reasons. 1. We are solving real problem for parents - we help save money, reduce clutter from unused toys, we nurture early learning in children and we offer convenience. 2. we are doing something good for the earth - we help reduce landfill - most plastic toys are not recyclable. The Green Piñata toys are eco friendly, sustainably sourced and we teach the young generation to share and reuse. Most importantly, my team that brings passion and all the right skills necessary to make this business successful and they keep me going!
Fostering learning through play
We built our service on a strong foundation of insights from early education and child development specialists to deliver age-appropriate toys geared for learning at every stage.
We care for our earth
We strive to be as environmentally conscious as possible in order to give our children the best future possible. We have partnered with eco-conscious manufacturers, all of whom use sustainably-sourced wood or recycled plastic to make their products.Together, we help families go green and reduce their addition to the landfill.
We donate toys to children in need
Once our toys have been loved by our customers, we donate them to children in need.
Green Piñata is WAY ahead of others that are seeking to get an early lead on building a customer base of millennial parents with massive intelligence. We own the ‘play to learn’ market and our power is in the analytics and being able to be the trusted source. Wish you had discovered RentTheRunway? Here is your chance. Come, join us! Thank you for your support!
The smallest investment amount that Green Piñata is accepting.
Green Piñata needs to reach their minimum funding goal before
the deadline. If they don’t, all investments will be refunded.
The Crowd SAFE is an agreement for future equity in the startup,
meaning that it can convert to equity in the future.
The Crowd SAFE is an agreement for future equity in the startup, meaning that it can convert to equity in the future.
$25,000 – $1,070,000
Green Piñata needs to raise
before the deadline. The maximum amount Green Piñata is willing
to raise is $1.07M.
It's a truly great idea! I thought vaguely about this a few years ago while wining about how many things we buy, hardly use, and just throw in the trash, and asked why so many little or even highly used items can't just be traded or reused by others!
Cognitive development is crucial in all stages of life; especially as a baby. I love every aspect about this company. Their vision inspires me!
The importance of children stimulating their prefrontal cortex throughout their childhood is important. Toys are a big part of a developing brain.
Currently we are growing at a rate of 60% month over month
Green Piñata attracts customers from all over the US. However about 70% of the customers are from major cities including New York City, San Fracisco, Boston, Chicago, Dallas, Austin, Seattle etc
The funds will go towards fueling growth - acquire new customers and supporting operational costs
Shiva K: I'm nervous. Given that tried and true subscription is a relatively new concept, I want to make sure that I get the entire pitch across in the prescribed time.
I've been waiting for months to meet Jesse Draper, especially to pitch at her Halogen VC fund. But now, here is the opportunity, I have all the three Drapers, and I want to make sure I don't screw up.
Good afternoon, I'm Shiva Kashalkar, and I'm the founder and CEO of Green Piñata toys. When our daughter [Annika 00:12:54] turned one, we were very excited about shopping for toys as a first-time parent, but also overwhelmed as to which ones are educational, age appropriate, and most importantly, kept her attention span longer. When I saw her chewing on a plastic toy, I also started to worry as to what toxins she could be ingesting. Wooden toys, especially expensive wooden toys, seemed like the perfect answer for my quest for quality toys. But also, here is the other problem. Annika, just like millions of other young kids out there, got bored of these toys too fast.
An average American parent spends about 500 dollars on toys a year. Up to half to them spend up to 1,000 dollars on toys a year. Don't forget, they have to figure out storage space for all the unused toys. To solve these challenges, we give you Green Piñata toys. A subscription service for parents that prefer high quality toys. Our service brings down their spend on toys by more than 50 percent a year. And also while reducing clutter and ending boredom.
For a monthly fee, parents receive up to four toys. They are very high quality toys their kids play with for as long as they want. Buy the ones their kids can't part with and return the rest.
We launched a number of tested scalable marketing programs last month, and we have already surpassed our growth, just the half of this month. We expect to ship 5,000 boxes the rest of the year, and we are seeking 480,000 dollars to support this growth. So, are you with us in helping us bring stress-free playtime to more families?
Tim Draper: Terrific.
Jesse Draper: That's great.
Tim Draper: Well why don't you come pull up a chair and join us.
So this is terrific.
Jesse Draper: So you send the toys.
Shiva K: Right.
Jesse Draper: Did I interrupt you? Oh, that's new.
Tim Draper: Oh, would that be a first?
Jesse Draper: I mean, typically I think you're interrupting everyone.
Tim Draper: Okay. Well I will continue to. [crosstalk 00:15:00]
So you ship these toys, and they're age-appropriate, so you get the age of the child when they're maybe two, and then ship 'em something when they're two, and then three, and then four, and you move this up the age spectrum.
Shiva K: Yeah, six months to five years. And every month we send them.
Tim Draper: Every month they get a new toy.
Shiva K: New box, yes.
Anjula Acharia: And to declutter, do you take the old toys back and give those to a charity or something, or what do you do?
Shiva K: Yes. So these toys, because they're super well made, they look almost like new for ten rentals. And then after that, they start wearing off in terms of their paint. And then yes, we give to charity.
Let's see a box of toys, all brand new, let's say. And it comes back to us. Then we make sure we clean it. We salt clean it, then we clean it with vinegar. Everything non-toxic, it's all about organic. These are reusable cloth bags that we put in the laundry. These are beautiful cloth bags I can show you. So we make sure they are clean. And we have also tested in the lab, where it's 99.95 percent germ free. And we do a quality check to see, okay, this is again rentable. Do they look new? Almost-new? Because people should be ready to buy the toys once they like it. So they wouldn't buy a toy that's chipped off, or they look older or used. So they look almost-new.
Jesse Draper: So can they keep the toys if they like them?
Shiva K: They can.
Jesse Draper: Okay.
Shiva K: So they can buy them. We sell it at an Amazon price. Also, we keep depreciating them, age the toys. If they have to be lower than the Amazon price, we will do that. But yes, they can buy the toys if they really like. Or, if they want to just keep it as long as they want, more than one, they can do that.
Jesse Draper: And how many customers do you have?
Shiva K: Out of the 1,000 boxes we have shipped, it's 300 unique customers. So they are repeating every month. So customers have joined us when their child was six months, and now two years. And we had someone join us one year, and now he's going to preschool. And they're like, "Okay. We're graduated. Now we don't need toys every month." So we [inaudible 00:17:03].
Anjula Acharia: How are you acquiring customers?
Shiva K: Yeah, so multiple channels. The first thing, until today, we are not spending a lot on marketing. So we have started partnering with other organic baby brands.
Anjula Acharia: Okay.
Shiva K: We are all united in our mission. So we blog for them, they blog for us, they promote us, we promote them. So that partnership has been taking off really well. And also we have influencers in different areas. Like influencers that talk about minimalism, green living. Because this is all about minimalism, too. And eco-friendliness. And less landfill at the end of the day. And just beautiful toys. Like interior designers, because these toys look beautiful in their home. So if you just want to have beautiful home. We have influencers in four different areas. They love the business, they don't charge us. Because bloggers usually charge 500 to 2,000 dollars for every single blog. But these influencers, because it's a unique service, they love it and they promote. So that's another channel. And of course, social media.
So we have tested it as to we know what our acquisition cost on social media will be. We're gonna start spending on it, because today, we were growing 20 to 30 percent every month. But when we invest on social media, it will be pretty fast.
Tim Draper: Now you talked about minimalists. But I joined that Trunk Club, and the thing shows up, and you forget to send it back, and then you're billed. And then the thing shows up again. And then it shows up again. And then I'm like, "No more! Stop this thing!" And I'm concerned that this starts to happen with a very busy mother and father who are trying to keep the place clean. And then, "Oh God, here comes another gift for the kids. What do we do?"
Shiva K: This one is, unless you return your older box, you don't get the older box. So the fee's almost like a renting fee.
Tim Draper: Oh.
Jesse Draper: That's also the case with Trunk Club, by the way.
Tim Draper: Yeah, it was very complicated for me.
Jesse Draper: I don't think you used it correctly.
Tim Draper: Yeah, it was very difficult.
Jesse Draper: Just remember to put the thing in the mail. It's so easy.
Bill Draper: Look if I had a kid that was seven years old, and he got a toy every month, and somehow he didn't like any of the [trunk 00:19:24]. But I was in this thing from 12 months. How much would it cost me?
Shiva K: Yeah, so it's a monthly fee of 24 dollars and 99 cents. So for a year, you're spending 300 dollars, but toys worth more than 1200. So, that's the money spent.
Tim Draper: The toys are worth more than 1200-
Bill Draper: Well if they like them.
Tim Draper: But you're shipping them back. But if you don't ship any of them back, then how much is it?
Shiva K: You're stuck with 100 dollars worth of toys for 300.
Tim Draper: How much would I have paid?
Shiva K: But it's not for people who wouldn't-
Tim Draper: I would only pay 300 hundred at the end of the year?
Shiva K: You would. Because every month, the credit card charges you. It's not a service for families that are not disciplined about sending it. People join us and then find it's a great service. And let's say, both are investment bankers who simply don't have the time. And your babysitter doesn't care which is Green Piñata toy versus something else. People have done that. And they subscribe, and for three or four months, they simply forget. And then they're like, "Shiva, it's not a service for us."
Bill Draper: So you've tested this and it works?
Shiva K: Oh yes. Yes. So we know it's not for everybody. In fact, we have done so much analysis. It's first-time parents living in the urban area. Moms are usually part-time working, or they have, say, an au pair or someone. It's also a service for families that earn 100,000 thousand dollars or more annually. So that's the kind of analysis we have done, and we know this is the kind of target.
Anjula Acharia: So how big is that market? In all the research you've done, what's the addressable market?
Shiva K: So the addressable market in the next five years, that is by 2022, it is 450 million dollars in the US, just for us.
Tim Draper: What if they pay for the whole thing, but then they ship them all back?
Shiva K: It's only the monthly fee of 24 dollars and 99 cents, the rental subscription fee, that's what they are charged. Whether they buy any of the toys or don't buy any of the toys, they are charged the subscription fee for use of the-
Tim Draper: No no, if they ship them all back, they're still paying 300 dollars for the year.
Shiva K: That's right.
Tim Draper: Oh oh, I didn't understand that. So it's 300 hundred dollars-
Shiva K: Yeah.
Tim Draper: Plus whatever they pay for the toys.
Shiva K: Exactly.
Tim Draper: So on average, they keep one out of three of the toys.
Shiva K: Yeah.
Tim Draper: And how much more is that? Is that another hundred or two hundred? How much are they paying you?
Shiva K: Right. Yeah. So let's say 30 dollars a month. They purchase one toy out of four, then it's 30 dollars. So 120 dollars additional we are making. So we are making, on an average, 420 dollars a year from a customer.
Jesse Draper: And are you a mom?
Shiva K: I am, yes. I'm that, the first picture you saw.
Jesse Draper: Oh yeah.
Shiva K: That's my daughter.
Jesse Draper: Oh great.
Bill Draper: You know those toys you just showed us, they don't look like they cost 30 dollars.
Shiva K: Oh, they do.
Bill Draper: They look like they're-
Jesse Draper: They do cost 30 dollars. Believe me, I buy these things.
Bill Draper: Is that right?
Tim Draper: What's your margin? If somebody, a family spends 420 dollars a year, how much does that cost you to ship them all the products, to receive back the products, to repurpose them, all that?
Shiva K: So for every box, we make 7 dollars. So considering our acquisition cost, we make 115 dollars for every customer that stay with us.
Tim Draper: 115 dollars for the ones who stay with you for a year.
So your margins are still pretty lean, pretty thin.
Shiva K: Yeah, it's about 25 percent, but then, right now we are charging 24 dollars and 99 cents. From what we have studied, the market, it could totally be 29 dollars 99, like 30 dollars a box. And also, we have identified a few ways to increase our lifetime value, in the sense, our box today, you will see there's always space for one more toy. But we want to enable the technology where we'll say, "Okay, in your piñata, you're having four toys this month. Add one more toy, like fifth toy, for additional two dollars. Or three dollars, four dollars." Whatever it is, it's pure margin for us. We're not gonna spend anything extra on the shipping. So that's one big thing for us that we can immediately start and bring our margin up from 25 percent to thirty-five percent.
So we are doing 480,000 or half a million. We wanted a convertible note, given this is the very first round.
Tim Draper: At what valuation?
Shiva K: So-
Tim Draper: [inaudible 00:23:51]
Shiva K: Yeah, we'd want to do the pre-money, which would be, if we did a Series A, would be at three-and-a-half to four million. So we want to cap at that if we have to do a cap.
Tim Draper: So that's up to you. Thanks so much for showing us Green Piñata. If you're a viewer, you have an opportunity to vote. Up or down. And you also have an opportunity to fund this girl.
Jesse Draper: You can fund her!
Tim Draper: Good luck.
Shiva K: Thank you.
It went great. It went much better than I expected. Answered every single question really well. I think the investors were really interested in knowing more about the business, which is great. The Drapers were really good, very kind. And it was a very supportive environment, so I was able to really get through everything that I wanted.
We have pitched in front of so many investors, so I knew this stuff cold. And yeah, it was great.
What we are here to do is bring stress-free playtime to families.
Jesse Draper: We'll be right back after a quick break.
Welcome back to Meet the Drapers.
Okay, so what do we think? Anjula, what'd you think?
Anjula Acharia: Uh, I wasn't convinced. She seems great, she seems really smart. But I don't know, I don't know if the economics make sense for me. I think the margins are very thin. So I don't know. I'm kind of, you know, there. I'm not ready to commit.
Jesse Draper: Yeah. I think I feel the same way. I'm not ready to commit. I was nervous 'cause it wasn't a billion dollar market.
Anjula Acharia: Right.
Jesse Draper: We look for billion dollar markets. But she is fantastic, and I do think there's something here. And if you look at the millennial generation and the millennial moms, they're looking to be minimalist and spend less. And you know, they'd rather live in a crappy apartment and be able to travel and save money on toys so that they can give their kids some incredible experience.
Bill Draper: It's gonna take a lot of salesmanship and marketing to make it work.
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