Sustainability is something that people are becoming more aware of every day. Plastic waste is polluting the land and the waters equally. Hence steps need to be taken to usage of plastics in every field of life, especially medicine. The medical field makes use of the most one-time-use plastic bottles.
That is what Achal Patel and Russel Gong had in mind when they started the company Cabinet Health. They replaced the one-time plastic bottles with reusable glass bottles and offered compostable refills that moved the consumers towards sustainability.
They came to the shark tank asking for $500,000 for 2.5% equity in the company. Their sales were already very high, and they had a large consumer base. The product was amazing and truly geared toward improving the environmental crisis. Did the entrepreneur get a deal on Shark Tank? Check out our Cabinet Health update to find out!
Cabinet Health Net Worth Shark Tank Update 2025
Achal Patel and Russel Gong asked for a $500,000 investment in exchange for 2.5% equity in their company. This meant they valued their company at $20 million. They made a deal with Tony and Kevin for $1 million in exchange for 7% of their company, plus a 2% royalty on top-line revenue until the Sharks get their investment back. This new deal valued their company at approximately $14.3 million. After the show aired, Cabinet Health saw a big increase in offers from medical experts, environmental specialists, and school groups. They reached over $20 million in sales last year and are projected to make $45 million this year. With an estimated yearly growth rate (typical business growth), the current net worth of Cabinet Health is $50 million.
Cabinet Health received a lot of offers from various medical experts, environmental specialists, and school groups after the airing of the episode. This was perfectly in line with their mission and it worked out perfectly for them as they wanted to gain that traction from not only the people but such organizations that will help them further their goals.
Tony and Kevin were also excited to work with them and spoke about the company on their socials. There is no information available on whether or not the deal went through, but we will keep an eye out on that. They also were able to reach $20+ million in sales in 2023 and were hopeful to make $45 million in 2024.
Yes, Cabinet Health was able to get a deal with Tony and Kevin. Kevin had initially made the offer of $500,000 for 12% equity and then Tony jumped in and offered $500,000 for 10% equity. The duo wanted to work with both of them hence they offered them to come up with a creative deal structure through which they could earn their money back.
They countered with $500,000 for 3.5% each, and they get a royalty of 2% top-line revenue until they earn their investment back. To which Kevin countered and said that they would both pay $500,000, making it $1 million for 7% equity and royalty of 2% top-line revenue until $1 million is paid back. And that’s how they walked away with a deal with both Kevin and Tony combined. Keep reading our Cabinet Health update to see what happens next!
| Shark(s) name | Offer & Demand | Counteroffer | Accepted? |
| Tony and Kevin | $500,000 for 7% and 2% top-line revenue royalty until $1 million is paid back | N/A | Yes |
| Tony Xu | $500,000 for 10% | N/A | N/A |
| Lori Greiner | Out | N/A | N/A |
| Kevin O’Leary | $500,000 for 12% | N/A | N/A |
| Barbara Corcoran | Out | N/A | N/A |
| Mark Cuban | Out | N/A | N/A |
Cabinet Health Shark Tank pitch
Achal is a third-generation medical entrepreneur. His grandfather opened up the first acetaminophen factory, 60 years back. He enjoyed spending time in the factory and learning all about the business. He then moved on to starting a career in healthcare strategy, and supply chain consulting. He was made for this business in his own words.
His deep personal background in the healthcare industry, coupled with Russel’s background in environmental sustainability work, made the perfect duo. Russel is a sustainable product specialist and a US Army officer. He started his career by working in State and Federal legislatures for Environmental Policies and then moved to the private sector.
At Deloitte Consulting, Russel met Achal. He also led and started a program that helped social businesses.
Cabinet Health came into the Shark Tank with a great pitch, explaining the number of plastic products produced by the medical industry and the amount of microplastics ingested by everyone. Their product, Cabinet Health, is a sustainable healthcare company that has created the world’s first-ever compostable and refillable system.
They produce and sell over-the-counter high-quality medicine and supplements. Their mission is to eliminate single-use plastic bottles one cabinet at a time. They asked for $500,000 for 2.5% equity in Cabinet Health.
They have a line of refillable, stackable, and space-effective bottles, along with that are the compostable refillable pouches. These pouches are FDA-approved, and these pouches are made out of backyard compostable materials.
The bottles are child-locked and require you to press a button to open the bottle. Cabinet provides its products for less than the brand in the market and more pills. Along with that the customers continuously save by being sustainable and using the refillable bottles.
The way the business works is that the customer buys a starter set for $10 to $20, the glass bottles are the forever bottles and they make about 60% to 80% margin on that sale. Kevin was curious to know what was the appeal of the product was it just sustainability or more, so the duo explained to them, that sustainability is one part of it and they had 700,000 customers when they appeared on the shark tank.
Russel explained to the sharks that customers buy from them because they get great value and they can continuously save through sustainable packaging.
Kevin continued the line of questions asking when the savings begin, and then the duo told them that the products are priced less than the brand’s names. They have been able to reduce the cost by managing the supply chains. This way the customers also save on the first purchase.
Kevin was waiting patiently to bring up the $20 million evaluation, which prompted the duo to share the sales. Achal told them that they were going to have $14 million in sales, in the year of appearance on Shark Tank. Kevin asked about the profitability and Achal told them that they were profitable on a unit basis. They were investing heavily in Research and Development, to be able to bring additional sustainable products to the market.
Kevin further asked about the cash flows, which were $8 million in bank cash, Achal told them. Tony asked $8 million for their net profit and Achal told them that their net was going to be negative 20%. They were going to be profitable in Q3 of the year 2023, said Achal.
Lori asked why it was negative, and Achal told them that they were investing $2.5 million in research and development, which became Mark’s breaking point and he jumped in to confront them. Mark stated that they aren’t making new medicine that needs to go through FDA approval. Achal responded to this by telling him that the products have to go through rigorous stability testing by drug molecule because they are completely changing the packaging.
Russel further told them that they have to get rigorous testing done to ensure that the packaging that they have made is safe and sustainable. They also need to get FDA approval for every new packaging, and pill.
Tony asked about the projections for the next 12 months. The duo told them that they were expecting to make $25 million which will bring in a negative 10% net income. However, they were going to break even in October of 2023, said Achal.
Tony further asked about the fundraising history, Achal told them that they had raised $13 million, from investors who believe in removing single-use plastics. Kevin asked what was the latest evaluation, to which Achal said, $81 million post money.
Barbara wasn’t compelled to invest because she didn’t think that there was going to be much return on investment. Mark applauded them for their effort towards sustainability but he couldn’t wrap his head around the numbers and the evaluation, hence he was not interested in investing. Kevin said that he knew the power of sustainability aspect can pull in a lot of consumers and he himself has experienced it.
Tony said that the packaging was great and they were in the space with high recurring business activity, and he is also a big believer in sustainability. Lori thought that their product from the sustainability aspect was amazing and they could actually get rid of a lot of plastic bottles. However, she didn’t agree with the evaluation.
Product Availability
The products can be bought from the official website that is, Cabinet Health. It is also available online at Target, The Market Place, Grove, Amazon, and others. They are now available in more than 1000 CVS locations across the US and have expanded their offering to include allergy medication and other prescription services.
This has helped them gain more traction from consumers as well as Over-the-Counter CVS locations and the online market.
Conclusion
Achal and Russel came into the shark tank with the noble cause of removing as much plastic waste as they could by removing one-time-use bottles from the medical healthcare industry. Their ambitions and sales were strong however they were not yet profitable when they appeared on the shark tank. Mostly because the products they were manufacturing had to go through rigorous testing and FDA approvals.
They however were able to entice Tony and Kevin, who both are keen on sustainability and improving the environmentally damaging plastics. Thanks to their interest Cabinet Health was able to get a deal with both of them united.
I’m Mehreen Shahid a content creator and marketing extraordinaire with a masters degree in marketing and 5 years of experience in agency. To unwind and gain more insight into the entrepreneur’s mind I watch Shark Tank. Love the advice that the sharks give and hope the negotiations takes place. I live drawing sketching and carpeting life with my camera. Read more About me.
