Funky Mello Shark Tank Update – Net Worth 2024

A husband-and-wife couple enters Shark Tank to pitch for their marshmallow business. Zach and Delisa were determined to make the nostalgic marshmallows healthier and tastier. They had developed marshmallow creams in various flavors. Funky Mello had started the retail business in the previous year and had a great sales record in every store. 

Funky Mello impressed every Shark with its solid financial details. The co-founders asked for $50,000 for a 15% stake in the company. Despite the impressive sales performance, the company made a net loss that bothered the Sharks a bit. Did Funky Mello get a deal done on the Shark Tank Season 15, Episode 16? Find it out in the Funky Mello Shark Tank Update.

Funky Mello Net Worth

Zach and Delisa asked for a $50k investment in exchange for 15% equity in their company. This meant they valued their company at $333k. They made a deal with Daymond for $50k in exchange for 15% of their company, which kept the valuation at $333k. After the show aired, Funky Mello saw a big increase in website traffic, sales, and social media exposure. With an estimated 10% yearly growth rate (typical business growth), the current net worth of Funky Mello is about $443k.

Funky Mello Shark Tank Update

What Happened To Funky Mello After Shark Tank?

Nothing much happened since Funky Mello got a deal on Shark Tank. The company had an extraordinary record in retail that it has continued. Daymond’s experience will help them in the future, but it is too early to say something as of now. The website had the same products and did not have Shark Tank’s mention on any webpage.

Did Funky Mello Get A Deal On Shark Tank?

Funky Mello did get a deal on Shark Tank. The founders asked the Sharks for $50,000 for a 15% stake in the equity. The sales performance and margins of the brand were impressive. Daniel Lubetzky showed his interest in the business as he continued to confirm the sales numbers to ensure everything was transparent. 

Daymond John stole the show in the end. After knowing the required details, Daymond offered the couple what they asked for. Delisa and Zach were about to make the most common mistake of expecting more offers. However, other sharks recommended they accept Daymond’s offer because he matched the initial ask. The couple accepted the offer of $50,000 for a 15% stake in the company. 

Shark(s) Name	Offer	Demand	Counteroffer	Accepted?
Daymond John	$50,000	15% equity in the company	N/A	Yes
Daniel Lubetzky	N/A	N/A	N/A	N/A
Lori Greiner	N/A	N/A	N/A	N/A
Mark Cuban	N/A	N/A	N/A	N/A
Kevin O’Leary	N/A	N/A	N/A	N/A

Delisa and Zach’s Backstory

Delisa and Zach are a husband-wife duo from Austin, Texas. Deelisa had a background in marketing and technology. Zach worked as a sales personnel in the pharma sector. The duo did not know that they had dietary restrictions until Zach got severely ill. His guts got damaged due to an allergic reaction caused by soy and gluten. 

The couple instantly wanted to create something healthier, cooler, tastier, and nostalgic. They did everything from scratch. The product development phase started when they launched crispy treats for kids. However, they diverted their focus to marshmallow cream due to its popularity. After realigning its focus, the company spread its network to over 20 stores. 

Initial Pitch

Zach and Delissa, a husband-wife duo from Austin, Texas, arrived at Shark Tank to raise funds for their developing marshmallow business. The duo started their pitch by mentioning the roasted and melted marshmallows. They also mentioned gelatin, the unhealthy ingredient used to make marshmallows. Gelatin was made of skin, tendons, and ligaments derived from cows and pigs. 

Funky Mello sold a marshmallow cream that was plant-based, gluten-free, and delicious. It had several use cases including being a fruit dip, a flavorful topping for coffee, and an ingredient for sundaes. The company offered creams in three flavors. Zach and Delisa presented Sharks with their core flavors. 

Queries About The Product

Every Shark loved the prominent taste of the marshmallow cream. Lori Greiner admired the basic flavoring. Zach claimed that the materials used to create the cream were aquafaba (chickpea liquid) and sugar. Aquafaba was a vegan and gluten-free ingredient to ensure consumers do not develop allergic reactions while eating the marshmallow cream. Each tablespoon had six grams of sugar, which roughly equaled 30 calories. 

Mark Cuban asked about the calories ordinary marshmallows contained. Zach confirmed that the traditional marshmallows had 60 to 70 calories per tablespoon. Daymond John complimented Funky Mello for its unique and flavorful products. 

Kevin O’Leary was concerned that parents would not feed marshmallows to their kids, so he demanded a usage case from the founders. Zach explained that people loved mixing Funky Mello creams with coffee. The creams dissolved with the coffee and formed a froth on the top. It even complemented hot chocolate. 

Mark asked the duo about the sales. Zach informed the sharks that the Funky Mello sold goods worth $100,000 in the previous year, incurring $7,000 in loss. Delissa confirmed that the previous year was their first in the retail market, which resulted in the loss. Zach estimated that the company would close the current year at $200,000 in sales. Upon Mark’s inquiry, Zach said that Funky Mello had $50,000 at the bank. 

Delisa disclosed that the funds were extended to them by the family and friends. She had invested $30,000 in the business. Mark asked the duo about the profit margins. Zach explained that each unit cost $2 to prepare. The wholesale price was $4, while the retail or market selling price was $6.99.

Lori questioned if the company was planning to develop other edibles. Delissa said that they could not make physical marshmallows. They tried the crispy treats, but the cream segment worked for them. They wanted to introduce new creams to stay relevant for consumers. 

Daniel admired Funky Mello for its sales record. According to his calculations, the company had four items in each of the 20 stores. The company sold cream worth $150 per store per item. It was an incredible feat for a new business. Zach confirmed that they gave demos to enhance their sales. 

Daymond asked how Funky Mello was performing in the stores where no demo was given. Delissa claimed that each store had an inventory movement of nine units per store per week. 

Shark’s Response And Final Deal

Daymond John was very excited by the business idea and did not want to let the founders select other sharks over him. He interrupted Daniel Lubetzky amidst his query and offered the couple $50,000 for 15% of the equity stake in the company. 

Zach and Delisa were shocked by the Shark’s immediate offer, so they were about to ask other investors about what they had in their minds. However, other Sharks recommended they take Daymond’s deal. The couple accepted Daymond’s offer. 

Funky Mello Availability

Funky Mello is a marshmallow cream-producing brand that took the unhealthy gelatine out of the equation. The cream was plant-based, soy-free, and gluten-free to ensure consumers do not develop allergies. The main ingredients were sugar and aquafaba. A tablespoon of cream has around 6 grams of sugar in it. 

A normal consumer can store the Funky Mello cream inside the fridge for later use. The use case is versatile because the cream can be consumed as a fruit dip, coffee topping, or ice cream sundae ingredient. It was available in three flavors, including vanilla, strawberry, and cookie. 

The Funky Mello cream is available online on Walmart and the official website. The retail price of a single cream box is around $6.99 (might vary from time to time). The margins are great. The unique and distinct taste makes the cream difficult to replicate for the competitors. 

Funky Mello must work on developing other similar products to sustain the competition because the food industry is saturated with substitutes. Moreover, retail businesses need constant innovation and repackaging to remain relevant. The product is also sold in bulk and packages on the official website, so you can have a detailed look.

Conclusion

Funky Mello struck one of the fastest deals on Shark Tank Season 15, Episode 16. The business model and the product idea were straightforward. It solved a common problem that most marshmallow consumers used to face. Zach and Delisa asked the Sharks for $50,000 for a 15% stake in the equity. 

The company got exactly what they asked for. Daymond offered them $50,000 at a $333,000 valuation. The retail model that Funky Mello is operating requires an experienced executive to implement successfully. The marshmallow creams developed by Funky Mello are healthier than most substitutes. I would definitely order it to make my coffee tastier and thicker.