"You are good to the core" - When Shark Tank's Lori Greiner gave a "pained" rejection to The Mad Optimist

Three friends with a vegan and Halal soap company appeared on Shark Tank season 11 finale, seeking investment. Mohammed M. Mahdi, Mohammed A. Mahdi, and Anthony Duncan pitched The Mad Optimist, requesting $60,000 for 10% equity.

After the entrepreneurs explained their model and revealed modest sales of $97,000 year-to-date with just $21,000 from custom products, Kevin O'Leary and Robert immediately stepped out. Shark Tank guest investor Shark Daniel Lubetzky also declined to invest. When it came to Lori Greiner, she also followed suit.

"I couldn't love the three of you more you are fun you have purpose and you are good to the core but this isn't the business I would be so in because of you but because the business isn't going to get you there I truly am pained to say I'm out," she said.

Mark Cuban ultimately offered $60,000 for 20% equity, which the team accepted.

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Lori Greiner praised The Mad Optimist team while rejecting their Shark Tank soap pitch

The Mad Optimist’s Shark Tank presentation highlighted complete customization and a sliding price scale, allowing customers to decide what to pay between $6 and $16 per product.

The trio demonstrated their proprietary one-day curing process, a significant improvement over the traditional 30-day process used by most soap makers. When questioned about pricing, Anthony Duncan revealed their production cost was $4.50 per soap, with an average selling price of $8.50, creating approximately 50% profit margins.

The Mad Optimist started in 2017 at The Brandery, a Cincinnati business accelerator, originally under the name The Soapy Soap Company. The business received substantial early support, including a $100,000 grant and free office space from The Brandery.

Their product line expanded beyond soaps to include customizable balms, sprays, and bath soaks. All products maintained strict adherence to vegan-friendly, cruelty-free, non-GMO, and gluten-free standards. The customization process allowed customers to select scents, add-ins, and packaging preferences through their website.

When asked about sales figures, the Shark Tank entrepreneurs reported $97,000 year-to-date at the time of filming, with only $21,000 coming from custom products. They also mentioned lifetime sales of $800,000 across previous iterations of their business.

Kevin O'Leary called their business model "the third level of hell." He questioned the viability of individualizing each product rather than manufacturing in large batches.

Robert Herjavec also declined, saying that he disliked their business model due to inefficiencies in production. Guest Shark Daniel Lubetzky went out next and wished them luck with their mission-driven approach. Lori Greiner gave a “pained” rejection as described earlier.

Mark Cuban stood alone in expressing interest in their transparency and potential for repeat customers. He made an offer of $60,000 for 25%, and the entrepreneurs countered with an 18% equity offer. Cuban responded with a 20% counteroffer, which they accepted.

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Post Shark Tank journey

According to reports from Shark Tank Blog, the deal with Mark Cuban never officially closed after filming. The Mad Optimist donated $80,192.39 in sales proceeds from the episode's air date, which coincided with the Shia Muslim Day of Ashura. Despite the deal status, the company continued growing.

As of July 2024, The Mad Optimist has reached approximately $1 million in annual revenue, an increase from the $97,000 in sales they reported during their Shark Tank appearance.

The Mad Optimist has expanded its product offerings beyond individual customizable items to include curated gift boxes. Their products remain available through two main sales channels; customers can purchase directly through The Mad Optimist website, where full customization options exist, or through Amazon, which carries their popular pre-made products.

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Fans can watch new episodes of Shark Tank on ABC network.