"How you going to get your money back?"—When Shark Tank's Daymond John questioned Ade + Ayo's profits

Co-founders Temidayo and Abisola Adedokun appeared on Shark Tank in season 13 episode 15, which aired on March 11, 2022. They pitched their African print clothing brand, Ade + Ayo. The company was geared towards celebrating African heritage by offering affordable clothing for children.

Since they were aiming for an affordable clothing range, they only had a $13 profit margin per unit.

Shark Daymond John was surprised by the company's high valuation. He noted that since the co-founders were asking for 175,000 for 10% if they distributed $100,000 a year and he made 10% off that, then he'd only get $10,000 a year. He added that at this rate, it would take him 17 years to get his money back.

"I'm already giving them three to four times more today. I'm asking an honest question. I mean, Mark [Cuban], how are going to get your money back?" he wondered.

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Ade + Ayo on Shark Tank: Temidayo and Abisola Adedokun secure a deal with Barbara Corcoran after intense negotiations

What is Ade + Ayo?

Temidayo and Abisola Adedokun appeared on Shark Tank season 13 episode 5 to pitch Ade + Ayo and sought a $175,000 investment in return for 10% equity in their company.

"As Nigerian immigrants, we value keeping strong ties with our heritage. So it's no wonder when we were having our baby boy, we wanted to make sure he grew up enriched by Nigerian culture as well. But when we went out to look for clothing, books and toys... the options were very limited. That's why we created Ade + Ayo," they pitched.

The Shark Tank contestants explained that they aimed to "bring the joy and vibrancy of African cultures" to children through their products that were beautiful, thoughtful, and cost-effective at the same time.

They further said that it was the first company to bring African prints to organic cotton fabric that was "soft, machine washable and perfect for everyday play". All these qualities were accompanied by distinct patterns and colors that were inspired by African textiles.

"Sharks representation matters. What kids see in their lives every day helps them to understand what the world looks like and shapes their views about the future. Yes, so that's where we want you sharks to join us in filling homes across the world with awe-inspiring African artistry," they concluded.

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Sales and growth over 11 months

Temidayo explained that the company was focused on its direct-to-customer channel through its website.

At the time of filming the episode, the entrepreneurs highlighted that their business had been operating for over 11 months, generating $160,000 in sales. Each unit cost $6 to produce, and they were sold at a retail price of $19.00.

They wanted to make their clothing range accessible so that an average person could be able to purchase these clothes. The Shark Tank contestants shared that they quit their jobs and were devoting all of their time to the company.

Mark Cuban pointed out that the business was generating only $15,000 in sales per month, noting that not all of it was profit. He questioned how the Shark Tank contestants managed to sustain themselves. In response, Abisola explained that they had saved some money and reinvested those funds into the company.

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Deal with Barbara Corcoran

The co-founders sought 175,000 for 10% equity in their company. They needed the investment to primarily expand their inventory and team. Abisola shared that they wanted to grow their team to be able to market and get the message out to people in creative ways.

"I think we need implementers, so we have really wonderful strategies and ideas especially on the marketing side. And it's really a matter of like...we are two people and so there's only so many hours of the day to get that work actually done, Temidayo added.

Mark Cuban, Lori Greiner, Daymond John, and Kevin O'Leary felt that the company valuation was too high and the profits were low, so they took their exit from the deal.

However, Barbara Corcoran recognized the potential in the business and struck a deal with the Shark Tank contestants, offering $200,000 for 33.3% equity, along with a $500,000 line of credit.

As of December 2024, Ade + Ayo is still in business as their website (adeandayo.com) features their diverse clothing collection. The brand also has an active social media presence on Facebook and Instagram, where the founders promote the latest offers and apparels.

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Shark Tank season 16 episodes air every Friday on ABC.