We all love toys and especially as kids we not only play with them but also love making something of our own? I am sure you would have tried paper planes, boats.
But after a certain time, we get out of ideas and naturally move towards getting entertained by watching video games, screen time increases, and lose creativity. What if we had a proposal by which every month your kid gets a curious gift package that enhances their creativity, that’s Surprise Ride.
Every month there is a surprise from – Surprise Ride as they send a package with a group of activities which are themed in a manner child learns about the world around them. Some of the previous themes include Know your Bees Kit, Birdhouse Activity Kit, Magic Tricks Activity Kit, Volcano Science Kit, etc.
Surprise Ride at a glance:
| BUSINESS | Creativity enhancing and Educational Subscription Box For Kids |
| ENTREPRENEUR | Donna Khalife And Rosy Khalife |
| ASKED FOR | $110,000 For 10% |
| ACCEPTED OFFER | No Deal |
| SHARK | No Shark |
| BUSINESS STATUS | Acquired |
Index:
Who is the owner of Surprise Ride?
Surprise Ride was founded by sisters Donna and Rosy Khalife. Donna is a Harvard MBA and former wall street expert who then decided to start a business that would “make a positive impact on the world”. Her sister Rosy was associated with the world of digital marketing and advertising and joined Donna in this ride together.
Both grew in the creative home environment were fortunate to have an artist father and facilitated DIY activities for them. Due to hardship in childhood, they had to entertain themselves through hands-on projects. For kids today the easiest option is to stay on video games or screens and get entertained rather than creating of their own. That’s how the sisters came up with the idea of Surprise Ride to create an impact by allowing parents to give their kids offline hands-on activities.
While they found themselves struggling to find gifts for their nephews the business idea came into shape on three principles: kids are curious and brilliant and every kid loves getting surprises in the mail.
Did Surprise Ride get a deal on Shark Tank?
Donna and Rosy Khalife pitched in Shark Tank seeking an investment of $110,000 in return for 10% equity. The duo explained the concept of monthly subscriptions and how they have experts in the background to curate their best rides through interesting topics every month.
The best surprise was each kid has a personalized Surprise Ride kit delivered to them based on their personal interests. Sharks were truly impressed and Lori states it’s a very well-constructed surprise box.
Donna and Rosy have sold 800 boxes within 4 months with 220 active members already. Kevin comes to the point by questioning every company that pitches in Shark Tank for an internet subscription model on two aspects: The cost of customer acquisition and the value of the customer once they are acquired. Girls were ready and quick to share the acquisition cost of $5.30 and the profit margin per customer as $130 over 12 months.
The duo sisters with their fulfillment center in Florida to scale their business. Sharks are impressed with their readiness and business understanding of how it can be scaled.
Mark questions the valuation is low when Kevin responds by bringing up the valuation. Once Daymond hears this and is out and Kevin also joins him. Robert Herjavec even though felt the estimate was low but still makes an offer of $110,000 for a 25% stake. Donna and Rosy enquire if other sharks would like to make offers. Mark believes they are not yet ready, he is out. Lori also steps out.
The duo was unable to decide on a proposal, as Kevin states that you girls are going to become legend considering you had a deal but did not close it. Sadly, the ride comes to a halt, without a deal.
WHAT HAPPENED to Surprise Ride after Shark Tank?
The Khalife girls have lost the deal but the strive to succeed was still on. Their well-curated packages did get a good response post the famous shark tank episode. The business soared high as 3,500 new customers were included in the first year and the sisters met the goals.
Post the episode the pair enjoyed huge brand recognition and sales of their business. They followed Lori’s advice and learned to scale and run their business successfully.
Surprise Ride follows a subscription model for their packages to be delivered. The company offers three subscription packages which are monthly, semi-annually and annual options.
Donna and Rosy were on their own business ride for over 3 years now post the shark tank episode when they got a surprise Kevin O’Leary visit at their Head Quarters. Kevin made an offer to invest $50,000 for 2.5% and would earn a profit of 6% royalty on each product sold until they reached $150,000, after which royalty would be gone. The sisters gave a thought but then happily accepted it.
Kevin stated that he now owns a piece of the company and loves what they have done till now and going to pour gasoline on the fire to take them to the $10 million sales mark.
With their phenomenal success now Surprise Ride is been acquired by Fat Brain Toys in 2018 for an undisclosed amount. Surprise Ride is still flourishing under the new business banner and can be viewed on their website.
What’s the net worth of Surprise Ride?
At the time of the shark tank appearance, Surprise Ride was valued at around $1.1 million. It was later acquired by Fat Brain Toys in 2018 for an undisclosed amount.
Surprise Ride Product Analysis:
Surprise Ride comes with a surprise package for kids (6-11 years) every month on curated themes that are personalized for the kids based on their interest areas.
The surprise package includes the supplies for the main project/activity, a booklet on the theme of the month, games, gadgets, books, snacks. One can subscribe for a monthly, semi-annually, or annual subscription.
Is Surprise Ride profitable?
Yes, as the company has started making millions of dollars post their initial stint. The first time in seven seasons one of the sharks – Kevin returned to invest in a company that missed the deal during their show.
Earlier Surprise Ride reached only $500,000 of annual revenues in 2014 but later surpassed $1 million. The company is profitable and Khalife’s are reinvesting the profits to grow their team.
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What is Surprise Ride?
Surprise Ride as they send a package with a group of activities that are themed in a manner child learns about the world around them.
Who founded Surprise Ride?
Surprise Ride was founded by sisters Donna and Rosy Khalife. Donna is a Harvard MBA and former wall street expert who then decided to start a business that would “make a positive impact on the world”.