“Rags to Raches” is a homemade kids’ clothing line created by a mother who first sold her designs on social media, becoming a hit with parents. She modified different pieces of clothing to create a line of “Rompers”.
Her USPs are rompers since they are trendy, chic, and comfy too, with a higher quality fabric and elastic necklines.
|Company name||Rags to Raches|
|Rags To Raches Net Worth||$4 million (Last Updated 2022)|
Rags To Raches Net Worth
When it appeared on Shark Tank, the company’s value was $1.3 Million, but now it is one of the leading brands in kid’s fashion. The company’s founder envisions the brand as the “Amazon of Kids Fashion”.
At present, their revenue exceeds $4 million per year.
Rachel Nilsson from Alpine, Utah is the founder and creator of Rags to Raches. The couple was in financial trouble when her husband lost his job and their only source of income was taken away, so she started an online clothing business to make ends meet.
Initially, she used various social media platforms to sell her children’s old clothes in order to make some money. Interestingly, her own handmade products had the best sales.
Consequently, she designed a variety of kid’s fashions, including rompers, which became very popular. It was a delight for parents to find such stylish, comfortable, and well-fitting pieces for their children. It is quite easy to put these rompers on and take them off because of their neck design.
Rags to Raches Shark Tank Deal
Rags to Raches appeared on Shark Tank Season 7 and Episode 19, as an apparel brand for children. Her request was for a $200,000 investment with a 10% equity stake.
Sharks were interested in her sales matrix, since her sales exceeded $792,000 in one year, with $280,000 saved in profits.
Each Shark expressed their thoughts, opinions, and interests. Three sharks made offers, and Rachel dropped Robert’s offer from 20% equity to 15% using her business acumen.
In the end, Rachel and Robert Herjavec struck a deal for a $200,000 investment for 15% of the business.
What Happened to Rags to Raches after Shark Tank Deal?
She experienced a massive increase in sales after appearing on ABC’s popular reality show Shark Tank. A month after the show, she was able to sell five times more clothes than she did last year and orders skyrocketed.
Even though Robert’s deal never came to fruition, Rags to Raches became one of the most recognized brands of kid’s clothing in the U.S. In addition to selling her products through over 100 retail stores and Amazon, Rags to Raches established its own manufacturing operation that employed large numbers of workers.
In 2018, she attracted $1.5 million in investment and partnered with Mickey Mouse, launching a Mickey Mouse clothing line that was well received by children.